Fiscal Year Ending March 2026 Financial Results Presentation Materials

Overview of Performance

For the fiscal year ending March 2026, operating revenue reached 307.5 billion yen (YoY +5.3%), operating income was 38.8 billion yen (YoY +2.7%), and net income attributable to owners of parent was 24.8 billion yen (YoY +10.9%). Despite a decline in gross profit margin and increased expenses in the residential real estate subdivision business, revenue and profits increased due to strong hotel accommodation demand and increased customer spending and new store contributions in the retail business.

Performance by Segment

The transportation segment posted operating revenue of 45.06 billion yen (YoY +3.5%) and operating income of 5.73 billion yen (YoY +16.6%), achieving both revenue and profit growth. The retail segment recorded operating revenue of 97.25 billion yen (YoY +2.5%) and operating income of 886 million yen, turning to profitability with revenue increase. The real estate segment saw operating revenue of 73.24 billion yen (YoY +2.8%) but operating income decreased to 13.96 billion yen (YoY -26.7%). The hotel segment achieved significant profit growth with operating revenue of 75.47 billion yen (YoY +12.8%) and operating income of 16.45 billion yen (YoY +30.1%). The subdivision business and rental business both recorded profit declines.

Earnings Guidance for Fiscal Year Ending March 2027

For the fiscal year ending March 2027, operating revenue is forecasted at 321.3 billion yen (YoY +4.5%), operating income at 37 billion yen (YoY -4.7%), and net income attributable to owners of parent at 22.1 billion yen (YoY -11.1%). Revenue growth is expected from existing property sales in the real estate rental business, while the transportation segment will incur increased costs related to the Sotetsu Shin-Yokohama Line and the hotel segment will face higher expenses. Additionally, a decrease is expected due to the withdrawal effect from last year's Osaka Expo, resulting in forecasted revenue increase but profit decline.