Securities Report - 48th Fiscal Period (2025/04/01 - 2026/03/31)

Toko Sho Co., Ltd. Securities Report - 48th Fiscal Period (2025/04/01 - 2026/03/31)

This document is the securities report submitted by Toko Sho Co., Ltd. in accordance with the Financial Instruments and Exchange Act, covering the company's business performance, financial position, and cash flow status for the 48th fiscal period (April 1, 2025 to March 31, 2026). It serves as a critical information source for investors and market participants to evaluate the company's health and future prospects.

The company primarily operates in the construction and real estate development sectors, with recent strategic emphasis on environmentally conscious buildings and smart city-related projects. This report discloses the period's financial highlights, management policies, financial statements, audit reports, risk factors, executive compensation, and share-related information.

In terms of business performance, net sales increased by 3.2% year-on-year to 128 billion yen, while operating profit rose by 4.1% to 9.8 billion yen. This growth was driven by steady progress in urban redevelopment projects and improved cost management that reduced cost ratios. Additionally, strong sales performance from consolidated real estate subsidiaries contributed to profit expansion.

Financially, the current ratio stands at 128%, and the equity ratio is 36.5%, reflecting a stable financial structure. Total interest-bearing debt amounts to 42 billion yen, with net interest-bearing debt at 21 billion yen, indicating healthy liquidity. The company will continue prioritizing financial soundness and aims to maintain and improve its investment-grade credit rating.

Looking ahead, the company has set its vision as "a leading company in sustainable urban development" and prioritizes ESG management. Specific goals include achieving 100% ZEB (Net Zero Energy Building) standards for all new constructions by 2030 and reducing CO2 emissions at construction sites by 30% by 2025 compared to 2019 levels. The company also aims to enhance productivity through digital transformation (DX) in design and construction processes.

Key risk factors include rising raw material prices, increasing labor costs, labor shortages, natural disasters, and changes in financial conditions. In particular, fluctuations in steel and concrete prices directly impact costs, so the company is mitigating price volatility through revised procurement strategies and long-term contracts.

The company remains committed to transparent disclosure and strengthening trust with stakeholders. Through this report, it aims to communicate its management approach focused on sustainable corporate value enhancement.