Financial Presentation Material for the Second Quarter of the Fiscal Year Ending June 2026

Overview of Business Performance

Consolidated net sales for the second quarter of the fiscal year ending June 2026 increased by 11.4% year-over-year to 22,327 million yen, and operating income significantly increased by 38.3% to 2,425 million yen. Growth in the nursing care business was the main driver, with productivity improvements at existing nursing care homes, contributions from newly opened homes, and growth of homes acquired through M&A in the previous fiscal year all contributing to revenue growth. Ordinary income was 2,456 million yen (up 30.8% YoY), and net income attributable to owners of parent was 1,646 million yen (up 29.5%), continuing the trend of profit growth.

Segment Performance and Financial Condition

Net sales in the nursing care business were 21,336 million yen (up 12.6% YoY), with segment profit steadily increasing to 3,019 million yen (up 26.9%). Improved occupancy rates at existing nursing care homes and promotion of occupancy at newly established homes contributed to margin improvements. Although net sales in other businesses decreased to 1,315 million yen (down 6.7% YoY), segment profit turned positive to 23 million yen. The equity ratio rose to 40.1%, while the interest-bearing debt ratio declined to 60.8%.