Management Interview

I would like to express my sincere gratitude to our shareholders and investors for their continued support.

Review of consolidated earnings for the fiscal year ended March 31, 2025

For the fiscal year ended March 31, 2025, we posted net sales of \92,153 million (an increase by \5,735 million year over year), operating income of \9,227 million (an increase by \284 million year over year), ordinary income of \8,604 million (an increase by \1,004 million year over year) and profit attributable to owners of parent of \5,462 million (an increase by \656 million year over year), with both ordinary income and profit attributable to owners of parent hitting record highs. New condominium apartments in the Real Estate Development posted a year-on-year increase in net sales and operating income thanks to steady demand in carefully selected regional city centers while business promotion has become increasingly challenging due to soaring construction costs and growing concerns over rising interest rates. In the Real Estate Investment, net sales and operating income significantly increased year over year as the expansion in the scale of income-producing properties for investors in central Tokyo (in-house developed new residences for lease, etc.) contributed to steady growth in profit margins.

Including the results above, the cumulative progress over the four years on the Medium-Term Management Plan (for FY3/22 to FY3/26) is ahead of schedule, with ordinary income and profit attributable to owners of parent achieving 106% and 102%, respectively, of the Plan.

Consolidated earnings forecast for the fiscal year ending March 31, 2026

For the fiscal year ending March 31, 2026, the final year of the Medium-Term Management Plan, with an increase in the number of units of new condominium apartments and condominium apartments for seniors to be delivered and increases in the number of buildings to be sold and the scale of income-producing properties, we forecast to post net sales of \132,500 million, operating income of \12,900 million, ordinary income of \10,000 million, and profit attributable to owners of parent of \6,500 million, achieving the Medium-Term Management Plan and a record-high profit.

Shareholder return

As business performance for the fiscal year ended March 31, 2025 exceeded the initial forecast, we decided to pay a year-end dividend per share of \33 (increase by \5 year over year and \4 from the initial forecast), making the annual dividend per share \62 (increase by \7 year over year). We plan to pay an annual dividend per share for the fiscal year ending March 31, 2026 of \74, an increase by \12 year over year.

Sustainability initiatives

Toward the integration of our business strategy and ESG strategy as stated in the Medium-Term Management Plan, we have been implementing a wide range of initiatives. In March 2025, we acquired a certification as “2025 KIH (KENKO Investment for Health) Outstanding Organization (large corporation).” The Group believes that human resources are the source of value creation and promotes initiatives to enhance human capital, such as ensuring the growth and health and safety of employees.

With the warm support of all our stakeholders, we had the honor of celebrating our 30th anniversary in December 2024. We will continue to contribute to solving social issues and realizing a sustainable society through our business and be a company preferred by customers and society, with an aim to continuously enhance corporate value.

We look forward to your continued support.