Advan Group Co., Ltd. Financial Summary for the Second Quarter of the Fiscal Year Ending March 2027 (Interim) [Japanese GAAP] (Consolidated)

Summary of Performance

Revenue for the second quarter was 8,929 million yen, up 7.8% year-over-year, and operating income increased significantly to 1,946 million yen. Conversely, ordinary income declined sharply to 773 million yen year-over-year due to a reduction in valuation gains on foreign exchange contracts and the impact of non-operating expenses, and net income attributable to owners of parent fell to 893 million yen. Total assets stood at 8,327.5 million yen and the equity ratio remained solid at 70.9%. Regarding the full-year forecast, figures are withheld due to sensitivity to foreign exchange gains/losses and valuation impacts. Dividends are expected at 20 yen at the interim and 20 yen at year-end, totaling 40 yen.

Segment and Financial Structure

The company operates three segments: Building Materials-related Business, Real Estate Leasing Business, and Other, and revenue and profit for each segment are reported according to accounting standards. Interim net income attributable to owners of parent decreased substantially from 2,009,264 thousand yen (same period last year: 2,009,264 thousand yen) to 893,096 thousand yen, although segment profits remained steady. Movements in valuation gains and losses related to foreign exchange contracts have had a major impact on operating results, making future exchange rate trends a key factor for performance.