Financial Summary for the Second Quarter of Fiscal Year Ending August 2026 (Interim Period) [Japanese GAAP] (Consolidated)

Overview of Business Results

In the second quarter of the fiscal year ending August 2026, net sales reached JPY 61,116 million (an 81.1% increase YoY), operating income was JPY 8,065 million (a 67.8% increase YoY), ordinary income was JPY 7,435 million (a 79.0% increase YoY), and net income attributable to owners of parent was JPY 4,951 million (a 101.8% increase YoY), achieving substantial revenue and profit growth. The core real estate market performed strongly, supported by robust domestic and international investment demand, while the hotel, logistics, healthcare, and overseas businesses also expanded steadily. In particular, the hotel business progressed with new openings and acquisition of development sites; the logistics business strengthened development of refrigerated and frozen warehouses; and the healthcare business focused on developing hospice housing.

Financial Position and Cash Flow Status

Total assets amounted to JPY 163,413 million (an increase of JPY 41,724 million from the end of the previous fiscal year), net assets were JPY 75,531 million (an increase of JPY 37,337 million), and the equity ratio improved to 45.7%. The increase in current assets was mainly due to an increase in cash and deposits. Cash flow from operating activities yielded an inflow of JPY 1,577 million; investing activities resulted in outflows of JPY 17,043 million; and financing activities resulted in inflows of JPY 34,241 million. Fundraising through stock issuance was the primary factor for cash inflow in financing activities. There is no change to the full-year earnings forecast, and steady performance momentum is expected to continue.