Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Overview of Business Performance

During the consolidated cumulative period of the third quarter of the fiscal year ending March 2026, net sales amounted to 31,197 million yen (7.4% YoY increase), operating income was 4,712 million yen (8.2% YoY increase), ordinary income was 4,765 million yen (8.8% YoY increase), and net income attributable to owners of parent for the quarter was 3,087 million yen (1.4% YoY increase), all setting new record highs. The increase in net sales was driven by strengthened operations of distinctive childcare facilities such as bilingual nursery schools, expansion of early childhood learning programs, acceptance of new facilities, and maximization of subsidies. The operating income growth was due to improved profitability from increased number of children and higher subsidies.

Financial Position and Future Outlook

Total assets were 35,859 million yen (a decrease of 1,762 million yen from the previous fiscal year-end), net assets were 21,693 million yen (an increase of 2,185 million yen), and the equity ratio improved to 60.5%. Total liabilities decreased to 14,165 million yen. The full-year earnings forecast for the fiscal year ending March 2026 projects net sales of 42,226 million yen (2.6% increase YoY), operating income of 5,998 million yen (3.3% increase YoY), and net income attributable to owners of parent of 3,921 million yen (no change YoY), expecting growth in both sales and profits. Dividend forecast has been revised upward to 12.50 yen. Looking ahead to achieving the medium-term management plan, the company aims for sustainable growth through new business development and promotion of M&A activities.