Notice Regarding Revision of Earnings Guidance

Overview of the Revision to Earnings Guidance

Tokai Corporation has revised its full-year consolidated earnings guidance for the fiscal year ending March 2026, upwardly revising net sales to 159,635 million yen (up 1.1% from the previous forecast), operating income to 9,335 million yen (up 13.6%), ordinary income to 10,017 million yen (up 16.6%), and net income attributable to owners of parent to 6,058 million yen (up 10.2%). The core rental business performed steadily, and in the pharmacy business, an increase in prescriptions for high-priced pharmaceuticals contributed to a rise in prescription unit prices. Additionally, the bedding and linen supply business posted strong results due to increased occupancy at hotels and price revisions.

Profit Aspects and Future Outlook

On the profit front, in addition to strong net sales, cost reductions progressed through efficient use of rental materials in the silver business, resulting in operating income and ordinary income exceeding previous forecasts. Although net income attributable to owners of parent is expected to include impairment losses for land at the Saitama factory and some stores in the pharmacy business, the favorable profit trend is expected to outperform prior forecasts. The earnings guidance is based on information available at the announcement date and may change depending on future circumstances.