Announcement of Full-Year Financial Results for FY26/3 and Earnings Forecast for FY27/3

Financial Results Overview

The full-year performance for FY26/3 is as follows:

Sales reached 23.528 billion yen (yoy +16.1%), and operating income was 3.001 billion yen (yoy +32.9%), achieving record-high profits, surpassing two upward revisions during the fiscal year. Although sales slightly fell short of the forecast, this was due to inventory adjustments made for continuous growth in the next fiscal year and beyond, accompanying the securing of a higher profit margin than forecasted.

The ordinary profit margin reached 11.8% (yoy +1.4%) from 10.4% in the previous fiscal year, and operating income per employee updated its record high to 28.86 million yen (yoy +43.0%).

Performance Summary

The main factors contributing significantly to the improvement in profit margin are as follows:

* Stabilization of residential sales through inside sales
* Increase in customer acquisition ratio via proprietary media (over 50% of contracted customers)

FY27/3 Earnings Forecast and Mid-Term Management Plan

FY27/3 Earnings Forecast (Second year of the Mid-Term Management Plan)

* Sales: 23,528 million yen → 28,500 million yen (YoY +21.1%)
* Operating Income: 3,001 million yen → 3,230 million yen (YoY +7.6%)
* Ordinary Income: 2,779 million yen → 2,900 million yen (YoY +4.3%)
* Net Income: 1,850 million yen → 1,885 million yen (YoY +1.9%)
* Dividends: 47.0 yen/share → 56.0 yen/share (+9.0 yen)

For FY27/3, as the second year of the Second Mid-Term Management Plan, we forecast sales of 28.5 billion yen (yoy +21.1%) and operating income of 3.23 billion yen (yoy +7.6%). For the FY27/3 target sales, approximately 80% of inventory (confirmed inventory of 23.7 billion yen) has been secured at the beginning of the fiscal year. The remaining approximately 4.8 billion yen is judged to be sufficiently achievable, considering the annual procurement amount for FY26/3 (30.3 billion yen) and the average land inventory holding period (4.9 months).

Regarding profits, we conservatively incorporate upfront investments in human resource recruitment, training, and data DX, as well as cost increases due to changes in the external environment. However, we expect to maintain an ordinary profit margin of 10% or more, which is a key indicator of the mid-term management plan. We aim to achieve and exceed the earnings forecast based on progress during the fiscal year.

FY27/3 Consolidated Earnings Forecast and Dividend Forecast

Shareholder Returns

Our company adheres to a progressive dividend policy, and for FY27/3, we forecast an annual dividend increase of 56 yen/share (+9 yen). This will result in a 2.8-fold increase in dividends (20 yen → 56 yen/share per year) from FY21/3 to FY27/3, achieving 6 consecutive years of dividend increases.

In addition, we implement a shareholder benefit program twice a year, designed so that some form of shareholder return (dividends or benefit points) occurs quarterly throughout the year.

Strengthening Shareholder Returns through Progressive Dividends

Introduction to Our Business Model

We would like to introduce our business model.

For the past few years, what we have built as a strategic differentiation point is a "customer acquisition structure where customers call customers, without relying on advertising costs."

Market Position ── Tokyo, Affluent Class is a "Trust Economy"

The affluent market in Tokyo's Jonan area (Setagaya, Meguro, Ota, Shinagawa, Shibuya, Minato wards), which is our business area, is not a flow-type market based on single transactions, but a market where transactions occur based on consultations with trusted experts, i.e., it operates as a "Trust Economy."

LTV-Driven by Three-Stage Needs

Customers with large asset sizes and multi-stage lifelong needs such as inheritance, asset management, and QOL improvement have the characteristic of "not choosing properties based on advertising." They are highly information-sensitive, forming a so-called "closed market" where quality information circulates only through trusted channels.

Structural Entry Barriers of the Closed Market

The closed nature of this market poses a significant barrier for new entrants, while for our company, which is already at the center of the circle of trust, it provides an overwhelming competitive advantage that other companies cannot easily follow.

* High entry barriers: Long time required to build trust, limited access to affluent networks
* Advantage of existing entrants: 30.5% referral/repeat (zero advertising cost acquisition), deep brand recognition
* Decisive value of brand recognition: The association of "〇〇 if you buy real estate in Tokyo" effectively creates a single point of concentration.

Our company, already possessing a customer pool (customer assets), has established strengths that latecomers cannot build even over many years.

Trust-Stock Business Model

Our company has built a unique "Trust-Stock Business Model" that maximizes the structural characteristics of this trust economy.

By cross-selling to customers with whom we have built trust during home purchases, gradually offering income-generating properties (asset building) and villas (QOL improvement), we maximize the Customer Lifetime Value (LTV).

This is our "three-stage for the affluent."