Announcement of Decision to Commence Consideration of External Capital Introduction into Urban Development and Tourism Business

Current Status and Growth of Urban Development and Tourism Business

Our group’s urban development and tourism business operates leasing and sales of offices, residences, logistics facilities, hotels, and hotel leisure businesses. Sales for the fiscal year ending March 2025 reached 140.9 billion yen and operating income was 24.4 billion yen, representing approximately 3.5 times sales growth and 4.5 times operating income growth compared to the fiscal year ended March 2013. Major constituent companies include Sankei Building Co., Ltd. and Granvista Hotels & Resorts Co., Ltd.

Consideration of External Capital Introduction and Future Policy

We have commenced consideration of introducing external capital into the urban development and tourism business to improve capital efficiency and achieve sustainable growth. Given the difficulty in expanding profits while restraining asset size and the competition for funds with growth investments in media and contents businesses, off-balance sheet treatment through external capital introduction is also under consideration. The scale and timing of the introduction are undecided and will be disclosed promptly once decided. The financial flexibility created will be allocated to shareholder returns through dividends and share buybacks as well as growth investment in the media and contents business.