Notice regarding Revision of Full-Year Consolidated Earnings Guidance for the Fiscal Year Ending March 2026

Overview of Revision to Earnings Guidance

The full-year consolidated earnings guidance for the fiscal year ending March 2026 has been revised. Operating revenue remains unchanged at 511,000 million yen compared to the previous forecast; however, operating income is revised upward to 42,000 million yen, a 5.0% increase from the prior forecast, due to lower-than-expected expenses. Ordinary income is revised upward to 41,000 million yen, a 13.9% increase, reflecting foreign exchange gains, among other factors. Despite recording special losses, net income attributable to owners of parent is revised upward to 29,000 million yen, an 11.5% increase, supported also by special gains.

Segment Earnings Outlook

The Real Estate segment is expected to exceed prior forecasts in both operating revenue and operating income, supported by strong sales of Karuizawa subdivision lots. The Hotel & Leisure segment is projected to fall short of prior forecasts in both revenue and profit, due to weaker income from overseas hotels despite favorable performance of domestic hotels. The Urban Transportation & Railway segment is expected to outperform prior forecasts in both revenue and profit, supported by revised railway passenger fares and increased demand for outings. The Other Business segment expects higher operating revenue but decreased profit due to increased expenses.