Fiscal Year Ending March 2027 Q2 (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Summary of Results

For the period, revenue was 14,820 hundred million yen (YoY +8.0%). Despite ongoing investment burdens such as costs for new hotel openings, operating income declined to 221 million yen (a decrease of 279 million yen YoY), ordinary income was 263 million yen, and net income attributable to owners of parent for the interim period decreased to 197 million yen. At the interim period-end, total assets stood at 38,663 hundred million yen and the equity ratio was 61.6%, maintaining solid levels compared with the same period last year. The earnings presentation materials state that growth investments and initiatives to strengthen the revenue base in line with RIHGA VISION 2035 are continuing, and the full-year forecasts for the fiscal year ending March 2027 remain unchanged at revenue 32,000 hundred million yen, operating income 1,200 million yen, and net income 900 million yen.

Key Points of Business Strategy and Financial Outlook

During the interim period, the company advanced its medium-term plan focusing on "restructuring and new deployment of hotel brand categories," "value-up of the hotel business," and "expansion of the new opening pipeline." New openings included RIHGA Royal Resort Okinawa Chatan and others; the pipeline targets opening 20 hotels by 2035. Financially, although cash and deposits have declined, improvements in cash management and a reduction in bonus reserves have stabilized the financial position. However, investment burdens such as opening costs continue, and the full-year plan remains unchanged.