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

Overview of Performance

For the fiscal year ending March 2026, consolidated operating revenue reached 422.414 billion yen (3.6% increase YoY) driven by strong passenger transportation income. Operating expenses increased to 332.826 billion yen (3.7% increase YoY) due to higher expenses and personnel costs, resulting in operating income of 89.588 billion yen (3.0% increase YoY) and ordinary income of 79.234 billion yen (2.9% increase YoY). Net income attributable to owners of parent was 59.015 billion yen (9.8% increase YoY) due to the recording of gains from retirement benefit plan revisions.

Performance by Segment

The transportation segment achieved operating revenue of 386.618 billion yen (3.8% increase YoY) and operating income of 76.189 billion yen (2.7% increase YoY) due to higher passenger transportation income. The real estate business posted operating revenue of 14.694 billion yen (0.2% increase YoY) and operating income of 4.399 billion yen (4.7% increase YoY), despite a decline in rental income from property sales, supported by increased rental income from Shibuya Mark City and others. The life and business services segment recorded operating revenue of 26.388 billion yen (2.5% increase YoY) and operating income of 8.527 billion yen (3.2% increase YoY) driven by increased rental income from existing and newly opened stores and expanded advertising services.

Financial Position and Cash Flow Status

As of the end of the fiscal year ending March 2026, total assets increased to 2.047168 trillion yen compared to the previous year, and net assets rose by 734.751 billion yen, resulting in an equity ratio of 35.9%. Cash flows from operating activities increased by 133.764 billion yen, cash flows from investing activities decreased by 87.4 billion yen, and cash flows from financing activities decreased by 51.846 billion yen. Cash and cash equivalents at the end of the period were 68.28 billion yen.

Dividend Status

The annual dividend for fiscal year ending March 2026 was 21 yen (interim dividend 21 yen, year-end dividend 0 yen), a decrease from 40 yen in the previous fiscal year. The forecast for fiscal year ending March 2027 is a dividend of 22 yen (interim dividend 22 yen, year-end dividend 0 yen), expecting an annual total of 44 yen. The dividend payout ratio is projected at 51.1%.

Consolidated Earnings Forecast for Fiscal Year Ending March 2027

For the fiscal year ending March 2027, operating revenue is expected to increase to 437.2 billion yen (3.5% increase YoY) due to increased commuter demand and favorable socio-economic activities along the railway lines. However, operating expenses are forecast to rise, resulting in operating income of 81.4 billion yen (9.1% decrease YoY), ordinary income of 69.0 billion yen (12.9% decrease YoY), and net income attributable to owners of parent of 50.0 billion yen (15.3% decrease YoY). The impact of Middle Eastern geopolitical developments is not yet factored into these projections.