Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Results

For the third quarter of the fiscal year ending March 2026, consolidated results were net sales of 168,819 million yen (14.6% decrease year-over-year), operating income of 19,862 million yen (23.0% decrease YoY), ordinary income of 19,768 million yen (23.7% decrease YoY), and net income attributable to owners of parent of 13,544 million yen (25.1% decrease YoY). The decrease in revenue and profit is primarily due to the absence of upfront accounting of revenue from newly opened hotels recorded in the same period last year. However, on an operational performance basis including sales of memberships for unopened hotels, operating income increased by 26.0% year-over-year, maintaining growth. By segment, the membership business posted revenue and profit declines due to deferred revenue despite increased contract volume; the hotel & restaurant business saw increases in both revenue and profit driven by greater operations of newly opened hotels and price revisions; and the medical business also achieved higher revenue and profit thanks to increased membership.

Financial Position and Future Outlook

As of the end of the third quarter of the fiscal year ending March 2026, total assets amounted to 545,288 million yen (up 10.6% from the previous fiscal year-end), net assets were 157,093 million yen (up 4.2%), and the equity ratio was 27.6%. Liabilities increased due to increased membership sales for unopened hotels. The full-year performance forecast anticipates net sales of 260,000 million yen (4.3% increase YoY), operating income of 29,000 million yen (10.0% increase YoY), and net income attributable to owners of parent of 20,300 million yen (0.8% increase YoY), expecting record-high sales and profits. The dividend forecast is 34 yen per share (post-split), reflecting an increase from the previous year.