Fiscal Year Ending March 2026 Financial Results Supplementary Materials

Performance Overview

For the fiscal year ending March 2026, consolidated revenue increased to 159,664 million yen (+6.8% YoY), and operating profit was 9,382 million yen (+14.5%), both reaching record highs. The main rental business performed strongly, supported by increased sales in the pharmacy segment and contributions from two companies consolidated during the previous period. Operating profit significantly exceeded the initial forecast by +14.2%, and ROE improved to 7.2% (a +1.7pp increase YoY). Cash flow from operating activities also reached a new high.

Segment Trends and Future Outlook

All segments, including Health Lifestyle Services, Dispensing Services, and Environmental Services, achieved revenue growth and profit expansion. Particularly, the Health Lifestyle Services segment benefited from strong hospital-related and bedding sectors, as well as the Silver business. Conversely, the Lease Skin segment continues to face a challenging environment due to rising material costs. For the fiscal year ending March 2027, sales are projected at 165,400 million yen (+3.6%), and operating profit at 8,985 million yen (-4.2%). The company plans to offset the negative effects through expansion of the rental business and increased efficiency via digital transformation, while considering impacts from revisements to pharmacy reimbursement and geopolitical influences in the Middle East.

Shareholder Return Policy Changes

In the fiscal year ending March 2026, the company conducted a share buyback of approximately 6.3 billion yen in addition to the 70th anniversary commemorative dividend, resulting in a total pay-out ratio of 140.4%. From the fiscal year ending March 2027 onward, the payout ratio guidance will be raised from 35% to 40%, with a progressive dividend policy. The annual dividend is planned at 80 yen, an increase of 12 yen from the previous period, with a payout ratio forecasted at 40.4%.