Financial Results Explanation Material for the Third Quarter of Fiscal Year Ending June 2026

Performance Overview

In the third quarter of fiscal year ending June 2026, consolidated revenue reached 33,893 million yen (up 11.8% YoY), operating profit was 3,603 million yen (up 43.9%), ordinary income was 3,806 million yen (up 42.9%), and net income attributable to owners of the parent was 2,560 million yen (up 39.0%). The continued solid performance of the care business, driven by growth in existing care facilities, newly opened facilities, and acquired facilities through M&A, contributed to these results. The operating income margin improved from 8.8% to 11.2%, indicating high profitability.

Segment Performance and Occupancy Trends

Revenue from the care business was 32,349 million yen (up 12.5% YoY), with segment profit of 4,532 million yen (up 33.8%). The average occupancy rate was 89.3%, an increase of 2.5 points compared to the same period last year. Occupancy rates for existing care facilities, newly opened facilities, and second-year facilities were 94.5%, 52.1%, and 75.6%, respectively, showing steady improvement. Newly opened facilities are experiencing favorable occupancy rates, and the occupancy rate of acquired facilities through M&A has also significantly improved. Over the past five years, 13 facilities have been acquired through M&A, and all have experienced occupancy rate improvements.