Financial Summary [Japanese GAAP] (Consolidated) Second Quarter (Interim)

Summary of Results

Consolidated results for the second quarter (interim) recorded net sales of 14,192 million yen, a 6.0% increase year-over-year. Operating income was 52 million yen, and ordinary income fell into negative territory at -5 million yen; however, net income attributable to owners of parent returned to profit at 77 million yen. By segment, the childcare and nursing care businesses made major contributions, while cram school and language-related businesses posted slight revenue gains with fluctuating profits. The effects of prior closures of unprofitable locations continued, and impairment losses decreased significantly. The full-year forecast remains unchanged at net sales 28,505 million yen, operating income 785 million yen, and net income 200 million yen.

Impact on Shareholders and Outlook

The return to profitability this term reflects the effects of structural reforms and cost containment, maintaining stable growth across the cram school, childcare, and nursing care segments. Through supplementary materials and the briefing, the company indicated plans to continue improving profitability and maintaining financial soundness. Although the full-year forecast is unchanged, whether new initiatives will continue to produce effects in the second half will be a key point to monitor.