Regarding the Impact on Our Company’s Performance Due to Reports on Adjustment of Housing Equipment Supply Conditions and Suspension of Orders

Current Situation Regarding Procurement of Housing Equipment

From April 10, 2026, housing equipment manufacturers such as LIXIL and TOTO have announced adjustments in supply conditions due to escalating tensions in the Middle East. Our Group expects delivery delays for some building materials and equipment. We recognize this as a common issue spreading throughout the housing industry and are closely monitoring government measures such as use of government stockpiled crude oil and manufacturers’ consideration of alternative solutions.

Impact on Our Group’s Product Supply and Performance

At this point, we judge the impact on our Group’s performance to be limited. The Renovation Condominium Business has structural strengths, including possession of leased properties, securing adequate sales inventory, and the ability to control construction and sales timing, which is expected to stabilize the number of units sold. During previous supply delays caused by COVID-19, stable supply was maintained through meticulous operational adjustments. We will continue efforts to maintain high-quality supply in collaboration with suppliers for the current situation.