Financial Summary for the Third Quarter of Fiscal Year Ending March 2026 [U.S. GAAP] (Consolidated)

Overview of Financial Performance

During the cumulative consolidated period for the third quarter of the fiscal year ending March 2026, operating revenue reached JPY 2,408,910 million (12% YoY increase), operating income was JPY 366,284 million (26% increase), pre-tax quarterly net income was JPY 567,719 million (48% increase), and net income attributable to owners of parent was JPY 389,675 million (43% increase). The primary factors driving revenue growth included the recognition of a gain on the transfer of shares in Greenko Energy Holdings amounting to JPY 11,840 million, as well as increases in life insurance premium income, investment income, and service revenues. Operating expenses increased by 10% YoY due to higher life insurance costs and selling, general and administrative expenses. Equity-method investment income surged 81% YoY to JPY 87,720 million, while gains on sales of subsidiaries and equity-method investments increased 157% to JPY 113,715 million.

Segment Trends and Financial Position

Segment profit increased 40% YoY to JPY 596,444 million, with the environmental energy segment showing a substantial rise of 828% to JPY 122,217 million. Several segments, including corporate sales and maintenance lease, business investment and concession, insurance, and transportation equipment, recorded profit growth. Conversely, real estate and banking & credit segments experienced profit declines. Total assets increased 7% YoY to JPY 18,125,609 million, total liabilities rose 6% to JPY 13,401,785 million, and shareholders' equity grew 12% to JPY 4,584,992 million, resulting in an equity ratio of 25.3%. Although the number of treasury shares increased, the number of issued shares remained unchanged. The dividend at the end of the second quarter was JPY 93.76, up from the prior year, with a full-year forecast of JPY 120.01.