Satoshi Arai
President, Group CEO, Executive Officer & Representative Director

This is Arai, I thank you very much for joining our financial results briefing for the fiscal year ended in March 31, 2026. Given the interest of time, I will go straight into my presentation. Please proceed to Page 4 of the results presentation material.

For FY March '26, operating revenue was JPY 942.5 billion with JPY 147.3 billion of business profit and JPY 82.8 billion of profit attributable to owners of parent. We were able to achieve record highs for growth operating revenue in each profit items. Business profit was well above the 8% growth target set forth in the management plan announced last year. Net profit also achieved a significant increase despite the extraordinary loss related to the demolition of Hamamatsucho building during FY March 2026. ROA and ROE was 5.4% and 10.7%, respectively, as shown on a different page, achieving high asset and capital efficiency. In sum, we evaluate that we have made good progress in the first year of the 3-year business plan.

Next, performance by segment. Please proceed to Page 5. By segment, the domestic business performed well. The top line and profit growth was driven primarily by the Housing Sales Business under Residential Development segment and Property Sales Business under the Commercial Real Estate segment. The Investment Management business, a property brokerage and CRE business as well as property and facility management achieved operating revenue and business profit growth. On the other hand, the Overseas segment posted declines in both operating revenue and business profit due to a lower housing units sold in Vietnam.