KeyHolder’s performance trajectory, under which the Company consistently plans, produces, develops, deploys and monetizes a wide range of content centered on Nogizaka46 as its core IP, has entered a growth momentum rebuilding phase starting with the results for FY12/2025. While the Company is oriented toward medium- to long-term growth through the creation of new proprietary IP content, it is also seeking to strike a balance between growth and stability and, as a result, short-term performance has shown significant volatility driven by multiple one-off factors associated with two M&A transactions executed to advance this management strategy. With respect to 10ANTZ, which engages in the development and operation of app-based games and became a consolidated subsidiary as of 1 January 2024, revenue has been recognized on a full-year basis starting from FY12/2024, while at the initial stage the Company was compelled to record an impairment loss of ¥909m related to goodwill and associated assets. In addition, regarding TOPOS ENTERPRISE, which primarily engages in Logistics Business and became a consolidated subsidiary as of 1 October 2024, revenue has been recognized starting from Q4 (October–December) FY12/2024, while a gain on negative goodwill of ¥2,551m was recorded in connection with the execution of the M&A. Furthermore, the Company’s asset base, including right-of-use assets, has expanded substantially, reflecting the fact that TOPOS ENTERPRISE, which is deeply involved in logistics operations, utilizes warehouses and other facilities under long-term lease arrangements. As a consequence, from FY12/2025 onward, the Company has begun recording interest expenses on lease liabilities, representing interest costs that accrue over time on lease liabilities, as financial expenses in period profit and loss. However, from FY12/2025 through FY12/2026, all of these one-off impacts are expected to fully dissipate and, accordingly, the Company is projected to achieve a performance trajectory that more directly reflects its underlying earnings power.

NORITZ, which develops domestic and overseas operations centered on the manufacture and sale of gas water heaters & oil-fired boilers, has been steadily improving its earnings structure despite operating in markets where demand has not necessarily been robust, supported by progress in product mix improvements and cost-reduction initiatives. In FY12/2025, while sales posted a slight decline, earnings improved substantially both domestically and overseas. In Japan, alongside the steady penetration of price revisions, although market maturity has continued in the core residential applications, a rising sales mix of high value-added environmentally conscious products and other high value-added products, i.e., high-efficiency water heaters and premium water heaters enabled value-based growth and improved profitability, offsetting lower volumes. In the non-residential applications, the steady capture of replacement demand for business-grade water heaters and the expansion of proposals combining maintenance and services supported earnings. Overseas, although sales declined amid weak market conditions in China, earnings improved markedly due to fixed-cost reductions and a review of the sales structure, while in Q4 (October–December), new kitchen appliances performed well in China and North America achieved a turnaround to profitability as sales recovered. Looking ahead, the Company forecast for FY12/2026 calls for continued sales and profit growth, although in Japan, a sharper-than-expected rise in copper prices remains a source of concern despite cautious assumptions on raw material costs. On the capital policy front, capital efficiency has been improving through the reduction of cross-shareholdings, progressing in parallel with structural reforms on the business side.

INTERLIFE HOLDINGS, which operates the Interior Construction and the Sound & Lighting Facilities (total services including design, construction and maintenance of commercial & public facilities), has articulated a policy of enhancing its earnings capability by capturing demand related to the IR (integrated resort) scheduled to commence operations in Osaka around autumn 2030. While the Company currently provides only a limited set of performance targets, such as achieving sales of ¥20,000m for FY02/2028, it appears that, when announcing results for FY02/2026, the Company plans to disclose a more concrete and longer-term performance outlook, including profitability, in light of recent developments. The liquidity of its shares has increased following a secondary offering by the largest shareholder and although sales have declined during FY02/2026 due partly to a reorganization of the business portfolio, initiatives to strengthen order intake for high gross profit margin projects have been effective. Consequently, despite a sales decline, further profit growth is expected following the substantial sales growth and profit growth in FY02/2025. Moreover, given the recent order intake trend, indications suggest that the Company is positioned to maintain or expand high levels of sales and operating profit toward FY02/2027. On top of this, it appears that the Company is considering M&A as a measure for future growth. According to the Company, similar to SANKEN SYSTEM (a 100%-owned subsidiary) it brought under its umbrella in November 2023, it plans to expand its market share, reduce costs and further strengthen competitiveness by bringing additional companies operating in areas with strong relevance and affinity to existing operations under its umbrella. In other words, the Company plans to expand the horizontal deployment of its strong management capabilities into new business areas within the markets served by both the Interior Construction and the Sound & Lighting Facilities.

On 13 February 2026, KeyHolder, which runs its operations of Entertainment as a major earnings source, announced its results for FY12/2025. While results came in with higher sales and lower profit, it became clear that the Company plans to restore its fundamental earning power and return to a growth trajectory, taking into account the dissipation of one-off impacts. In FY12/2024, the Company recorded an impairment loss of ¥909m related to an existing business domain, while also posting negative goodwill gain of ¥2,551m resulting from M&A conducted to enter a new business area. In FY12/2025, however, such one-off impacts dissipated, leading to a decline of ¥1,642m on a net basis at the level of operating profit. “Nogizaka46,” a female idol group produced by Yasushi Akimoto, has continued to undergo member turnover (graduation and new additions) since its formation in 2011, while activities such as performances and merchandise sales have been firmly established as major earnings sources (equity-method investment profit, included in segment profit). The Company is also deeply involved across a broad set of areas, including the operations and management of talent agencies, planning and operations of events and event spaces, and even the development of game applications. We plan to conduct interviews with the Company’s management, and based on the outcome, newly launch and broadly distribute our Company Report.

On 17 February 2026, EM SYSTEMS, the leading provider of dispensing systems that serve as the core operational infrastructure for pharmacies in Japan, held its results briefing for FY12/2025 online. While FY12/2026 marks the phase in which irregular profit drivers are expected to dissipate, it has become clear that toward FY12/2027 the Company is set to resume growth driven by its core growth engines. Demand tied to healthcare administration surged in FY12/2024 and began to taper off in FY12/2025. Although such demand is expected to subside further in FY12/2026, the Company is projected to return to sales and profit growth from FY12/2026 through FY12/2027, backed by increasing sales and profit in its core business of developing and selling dispensing systems. Leveraging the introduction of AI and knowledge acquired through M&A, the Company plans to actively develop systems that reduce the workload of pharmacists at client pharmacies, thereby enhancing the added value of its systems and accelerating growth in fee-based revenue tied to system usage.

On 13 February 2026, Fast Accounting, which promotes operational transformation through AI specialized in accounting functions, announced its results for FY12/2025. In addition to continued substantial sales growth, operating profit significantly exceeded the assumptions of the initial Company forecast, demonstrating that the Company is well positioned to further accelerate its growth by capturing regulation-driven demand based on its proprietary AI assets. Unlike typical cloud platform (SaaS) providers that primarily offer UI and workflow functions, the Company focuses on providing AI modules and AI agents specialized in accounting judgment. Its proprietary accounting-focused LLM, “Deep Dean,” has been continuously enhanced through ongoing training on more than 200m accounting-related data points, as well as through GPU investments aimed at rapidly processing large volumes of data, enabling it to handle advanced accounting issues equivalent to those addressed by USCPAs, certified public accountants and holders of Japan Bookkeeping Proficiency Test Level 1. Meanwhile, development and orders for “AI Accounting Agents,” which incorporate each client company's unique accounting policies and operational rules into “Deep Dean,” have been progressing, and full-scale operations have already begun at multiple client companies. In addition, given the mandatory application of the new lease accounting standard for fiscal years beginning on or after 1 April 2027, the Company is promoting the construction of an ecosystem that seamlessly provides “contract management × AI-based judgment × accounting data conversion.” It has partnered with Bengo4.com, Inc. (6027) for contract management and with Pro-Ship Incorporated (3763) for accounting data conversion, establishing itself not as a user of AI but as an upstream provider in the AI value chain. Taken together, the Company may be regarded as one of the few industry-specialized AI companies in Japan.

On 6 February 2026, Sanyo Homes, which engages in construction contracting for houses etc. as well as condominium development and sales, announced its results for Q1 to Q3 (April–December) FY03/2026. It has been revealed that sales will be recorded in Q4 (January–March) at an unprecedented level of concentration, leading the Company to achieve significant sales and profit growth in FY03/2026. In the results for Q1 to Q3 (April–December), the Company achieved new completion of three condominium buildings in total, with deliveries and sales recorded on a traditional unit-by-unit basis. By contrast, the four buildings scheduled for completion in Q4 (January–March) are all planned to be sold on a one-building basis through the operations of planning and consulting, and all four are expected to be fully sold during the period. While sales have traditionally tended to concentrate in Q4 (January–March) for condominium development and sales, this tendency is set to accelerate in FY03/2026. Meanwhile, although operating loss is widening in construction contracting for houses etc. due to changes in the sales composition, this is expected to be more than fully offset by the significant sales and profit growth in condominium development and sales, which constitute the core source of earnings with the Company.

On 12 February 2026, NORITZ, which develops domestic and overseas operations centered on the manufacturing and sales of gas water heaters & oil-fired boilers, held its results briefing for FY12/2025. In the results for FY12/2025, operating profit came in slightly above the Company’s latest forecast (announced on 4 December 2025), revealing a V-shaped recovery. Compared with the initial Company forecast (announced on 13 February 2025), the upside in operating profit amounted to ¥1,300m (43.3%). While cost-reduction initiatives set out in the medium-term management plan “V Plan 26” (FY12/2024–FY12/2026) have begun to bear fruit, Domestic Operations also benefited from the impact of price revisions and expanding sales of environmentally conscious and higher value-added products. In Overseas Operations, profit growth exceeded that of Domestic Operations, supported by a turnaround to profitability in North America and profit growth in China despite the continued sluggish market environment. Amid stagnant unit sales in China, the Company has been implementing thorough fixed-cost reductions at local operations. We intend to obtain further details through interviews with the Company’s management, and depending on the outcome, we plan to update and reissue our Company Report.

On 13 February 2026, MIMAKI ENGINEERING, which promotes the digitalization of industrial printing, announced its results for Q1 to Q3 (April–December) FY03/2026. Although both sales and profits declined, it has been revealed that in Q3 (October–December), sales associated with the IP Market (Industrial Products / industrial goods, small items, etc.) turned to a level exceeding the same period of the previous year. As for printer hardware, high value-added models with higher resolution and faster print speeds have been expanding sales mainly in North America and Europe, while ink sales have also been steadily increasing due to an increase in the number of printer hardware units in operation on the user side. In addition, while the Company is steadily advancing active R&D investments aimed at creating Innovation in line with the basic policy of its medium- to long-term growth strategy “Mimaki Innovation 30,” it continues to maintain an operating profit margin of over 10%. This is mainly attributable to the continued improvement in the cost rate, driven by the improved product mix. Although the Company is inevitably being affected by factors such as delays in the timing of launching new products in FY03/2026, it appears to be heading toward a trend of sales and profit growth from FY03/2027 onward. The Company indicates that its sales CAGR toward FY03/2030, incorporating the impact of new product launches, is expected to be 12.3%.

On 9 February 2026, Shinwa, which is engaged in the manufacture, sale, rental and installation of temporary construction materials (scaffoldings) used at construction sites, as well as the manufacture and sale of logistics equipment, announced its results for Q1 to Q3 (April–December) FY03/2026. While the Company has updated its record-high profit, it has also become clear that performance is expected to continue on a steady upward trajectory from a medium- to long-term perspective. In Q3 (October–December), although there were temporary factors contributing to profit growth, revenue from the core Wedge Binding Type Scaffoldings expanded, supported by strengthened proposal capabilities tailored to on-site needs, and subsidiaries acquired through M&A have begun contributing to earnings from an early stage. Looking ahead to FY03/2027 and beyond, the Company expects not only organic growth but also an expansion of synergies, while additional contributions from new M&A are also anticipated. Meanwhile, as the Company has already largely achieved the earnings targets set out in its existing medium-term management plan (FY03/2026–FY03/2029) based on progress to date, it is proceeding with a review of the plan. While operating profit of ¥2,400m is targeted for the final year, FY03/2029, the Company had already achieved operating profit of ¥2,348m as of Q1 to Q3 (April–December) FY03/2026, the initial year of the plan.

On 14 January 2026, INTERLIFE HOLDINGS, which provides total services including design and construction of commercial & public facilities as well as management and maintenance, announced its results for Q1 to Q3 (March–November) FY02/2026. As previously expected, the Company saw a decline in sales and an increase in earnings. Sales decreased due to the completion of large construction projects related to the Osaka-Kansai Expo, which had contributed to sales in the same period of the previous year; however, measures focusing on orders for projects with high gross profit margins amid a solid order intake environment, proved effective, resulting in an improvement in the gross profit margin. In addition, initiatives to curb the increase in SG&A expenses have progressed, and the operating profit margin for Q3 (March–November) came in at 8.6% (up 2.8% points). Furthermore, the Company is expected to achieve and exceed the performance target for operating profit of ¥1,000m set for FY02/2028, the final year of the fifth medium-term management plan (FY02/2026–FY02/2028), in the initial year FY02/2026, and appears to have begun considering a review of the plan. While we plan to obtain further details through interviews with the Company’s management, we also intend to update and re-release our Company Report based on the findings.

On 20 January 2026, Cypress Holdings, which aims to expand its presence in the everyday dining market, held an online corporate briefing. Following its solid year on year growth in both revenue and profit during the Q1 (September–November) FY08/2026, it has been revealed that the Company intends to accelerate new store openings as a key driver of its medium to long term growth strategy. The Company operates 35 brands with 127 directly managed stores nationwide as of the end of November 2025, primarily located in suburban commercial complexes. These brands, including the flagship seafood dining concept Tsukiji Shokudo GEN-CHAN, are designed to meet a wide variety of consumer needs. While same-store sales continue to deliver a year on year growth, the Company retains substantial room for further expansion through new store openings. In FY08/2025, the Company opened nine new stores, while, in contrast, it plans to open 20 new locations for FY08/2026. Furthermore, the Company expects to exceed 20 new openings in both FY08/2027 and FY08/2028. In addition to directly operated store expansions, the Company also plans to launch a franchise program, while exploring M&A opportunities to further accelerate its growth trajectory. The Company also indicated that it is in the process of formulating a medium term management plan, taking into account these initiatives and future growth prospects.

SENSHU ELECTRIC, whose mainstay business is the development of operations as one of the industry leaders of electric wires general trading companies, is expected to move from a short-term earnings adjustment phase into a recovery phase. With respect to FA Cables, which represent the Company’s primary source of earnings, the recovery in demand from key focus areas, i.e., semiconductor manufacturing equipment, machine tools and automotive-related applications, has been slower than anticipated earlier. In addition, for Power Cables used in construction, which account for a large proportion of sales, shipment volumes have been constrained by construction delays caused by rising material costs and labor shortages. As a result, the Company has been forced to record a year-on-year decline in both sales and earnings for FY10/2025. Looking ahead to FY10/2026, meanwhile, the Company’s earnings forecast incorporates a reversal in the above-mentioned demand trends. Furthermore, it has been pointed out that rising copper prices, i.e., the main raw material for electric wires, could lead to additional sales growth. It should be also noted that, over the medium-to long-term, sales expansion initiatives in Non-Cables are expected to gain full traction. Although the actual results for FY10/2025, the first year of the medium-term management plan (FY10/2025–FY10/2027), have fallen short of the original assumptions, the earnings targets for the final year of the plan, FY10/2027, remain unchanged.

HAGIWARA ELECTRIC HOLDINGS, a technology-oriented trading company with deep expertise and a proven track record in the mobility domain (covering technologies, services and industries related to the movement of people and goods), centered on automotive electronics, continues to leverage its strong proposal and support capabilities to expand its business. While focusing on providing a wide range of solutions from electronic devices to data utilization, the Company has announced its policy to pursue new value creation through a management integration with SATORI ELECTRIC, which belongs to a different value chain in terms of products and clients. Under “MIRAINI HOLDINGS,” to be launched on 1 April 2026, the Company aims to promote the concentration and utilization of management resources based on the spirit of equality, not only to expand business scale but also to deliver greater added value to both clients and suppliers. The strengths of SATIORI ELECTRIC include its global sales network centered on India and ex-Japan Asia, an extensive product lineup and a broad client base spanning manufacturing (FA and IT) as well as social infrastructure. In Q1 to Q2 (April–September) FY03/2026, HAGIWARA ELECTRIC HOLDINGS was forced to post sales and profit declines compared with the same period of the previous year due to sluggish sales in its core Electronic Devices side and rising costs. However, as incorporated in the Company forecast, performance appears to have shifted to a growth trend in sales and profit since entering H2 (October–March). From FY03/2027 onward, the Company is expected to accelerate efforts to build a management foundation for medium- to long-term growth as “MIRAINI HOLDINGS.”

NORITZ, which primarily engages in the manufacture and sale of gas water heaters & oil-fired boilers both domestically and overseas, has seen operating profit make a V-Shaped recovery and is expected to maintain a further recovery trend heading into FY12/2026. Although sales have been sluggish due to a continued downturn in the Chinese market, where sales have been on a downward trajectory, initiatives to improve productivity have been successful and measures to curb SG&A expenses are steadily progressing. For example, in China, efforts to reduce local fixed costs have been continuously advancing, suggesting that the breakeven point is persistently declining. In addition, cost-reduction measures aligned with the assumptions of the medium-term management plan (FY12/2024-FY12/2026) are progressing as initially planned, and their impact is expected to expand significantly toward the final year, FY12/2026. Meanwhile, in Japan, the Company is accelerating the promotion of latent-heat recovery water heaters and the development of hybrid water heaters to meet the Top Runner standards under the Energy Conservation Act, positioning itself as an industry leader. The former adopts a mechanism that recovers and reuses heat (latent heat) contained in exhaust gases, thereby reducing fuel consumption and significantly improving energy-saving performance. The latter refers to a high-efficiency water heating system that combines a gas water heater with an electric heat pump water heater, leveraging the strengths of both, maximizing energy-saving performance.

Shinwa, which engages in the manufacture, sale, rental and installation services of temporary construction materials (scaffoldings) used at construction sites as well as the manufacture and sale of logistics equipment, has seen a significant boost from large-scale logistics warehouse projects, resulting in both revenue and profit levels hitting record highs since listing for Q1 to Q2 (April–September) FY03/2026. Furthermore, the Company has indicated a clear trajectory toward achieving steady growth from a medium- to long-term perspective. Having come to the stage to go for revenue of ¥20,000m originally targeted for FY03/2029, the final year of its existing medium-term management plan (FY03/2026-FY03/2029), as early as FY03/2026, the Company is now considering revising the plan. Under its growth strategy of “actively expanding business domains and services through leveraging Group resources and M&A,” the Company made YAGUMI Group a subsidiary in April 2024, followed by OHTORIKINZOKU KOGYO in May 2025 and KAIZU KENSETSU in October 2025. Looking ahead, further M&A deals remain on the horizon, while the Company aims to lay the foundation for sustainable growth and accelerated progress beyond FY03/2029 by pursuing synergies created through these initiatives.

On 26 November 2025, Sanyo Homes, which engages in housing construction contracting as well as development and sale of condominiums, held its earnings briefing for Q1 to Q2 (April–September) FY03/2026. The Company indicated that significant sales growth and earnings improvement in development and sale of condominiums are expected to continue throughout the full year following the strong Q1 to Q2 (April–September). According to the Company, of the six condominiums scheduled for completion, delivery and sales recognition in H2 (October–March), four have already been confirmed as single-building sale transactions under its project consulting business, ensuring that sales from these four properties will be booked by yearend. Meanwhile, although operating losses have increased in housing construction contracting due to changes in the sales mix, these will be more than offset. In addition, the Company plans to develop rental income as a new source of earnings from a medium- to long-term perspective. The Company, which owns land and buildings in Umehara-area, Wakayama-city, is steadily advancing plans to renovate existing buildings on the site and lease them as facilities for an international school scheduled to open in September 2027.

INTERLIFE HOLDINGS is entering a new phase of growth, underpinned by a clear strategic focus and disciplined resource allocation. Over the past five years, the Company has carried out a comprehensive restructuring of its business portfolio, leading to consistent improvements in profitability. In Q1 to Q2 (March-August) FY02/2026, the Company achieved an estimated 12-month return on equity (ROE) of 22.9%, a substantial increase from 2.7% in FY02/2021. Management has concentrated resources on its traditional operations, i.e., integrated services for commercial & public facilities, including design, construction and maintenance, while prioritizing large-scale projects with higher profit margins. In response to the persistent labor shortage, the Company has announced its intention to pursue mergers and acquisitions as a key driver of growth. The Company currently focuses on overseeing the operations of its wholly owned subsidiaries engaged in the aforementioned operations. Looking ahead, it intends to pursue strategic acquisitions of companies within the existing sector that demonstrate strong synergies and complementary relationships, similar to the acquisition of SANKEN SYSTEM in the Sound & Lighting Facilities segment. Through these initiatives, the Company aims to expand its market share, achieve cost efficiencies and further enhance its competitive advantage. In other words, these initiatives are expected to capitalize on the Company’s strong management capabilities and support the development of a more robust group structure.

On 27 November 2025, KAGA ELECTRONICS, a leading electronics trading company, held its earnings briefing for Q1 to Q2 (April-September) FY03/2026 via a web conference. Following Q1 (April-June), Q2 (July-September) also achieved higher sales and earnings year on year, and the upward momentum versus the initial Company forecast has continued. In Q2 (July-September), the consolidation of peer KYOEI SANGYO as a subsidiary also contributed to increase sales and earnings; however, even excluding this impact, sales and earnings increased year on year. When announcing Q1 results, the Company revised its full-year forecast to incorporate only the subsidiary consolidation, without reflecting the upside, changing its initial projection from “sales and earnings decline” to “sales and earnings growth.” In contrast, the revision following Q2 (July-September) results reflects the upside in Q1 to Q2 (April-September). According to the Company, steady progress has been made in line with its current medium-term management plan (FY03/2026–FY03/2028), which targets becoming a ¥1 trillion sales company by its 60th anniversary (FY03/2029).

On 19 November 2025, MIMAKI ENGINEERING, which is driving the digitalization of industrial printing, held its earnings briefing for Q1 to Q2 (April-September) FY03/2026. While no major changes have been observed in market demand trends toward digitalization, it has become clear that the Company is facing a short-term adjustment phase in terms of business performance. During the Q1 to Q2 (April-September) period, the Company was affected by intensified competition in DTF (Direct to Film) printers used for printing on textiles & apparel such as T-shirts. Meanwhile, some new product launches originally scheduled for H2 (October-March) have been pushed back to FY03/2027. Consequently, actual results for the Q1 to Q2 (April-September) period came in slightly below the Company’s initial forecast announced on 13 May 2025, and full-year guidance has been revised downward. That said, the Company continues to allocate aggressive spending to create Innovation in line with its Medium- to Long-Term Growth Strategy “Mimaki Innovation 30,” while maintaining an operating profit margin of over 10%. In light of this, there appears to be no significant change in the Company’s long-term growth potential. The plan calls for a compound annual growth rate (CAGR) of 12.3% in sales over the five years through FY03/2030.

On 14 November 2025, EM SYSTEMS, the domestic leader in developing and selling IT systems that serve as the core operational infrastructure for pharmacies, announced its financial results for Q1 to Q3 (January-September) FY12/2025. It has been revealed that the impact of Welfare Administration–Related Measures—such as the implementation and installation of systems for electronic prescriptions and online eligibility verifications—classified as “ (non-organic) irregular upside factors,” is expected to largely peak by the end of FY12/2025. Looking ahead to FY12/2026 and beyond, the Company intends to refocus on its organic growth strategy, excluding the effects of such temporary demand. In its core pharmacy systems, the Company is introducing a new “AI-powered medication history generation support option,” designed to significantly reduce pharmacists’ workload. This initiative aims to increase the Company’s wallet share, or the proportion of customer spending it captures. Under its new medium-term management plan (FY12/2025-FY12/2027), the Company is targeting an ARPU (monthly system usage fee revenue) of ¥27,500 in FY12/2027, up from the current ¥25,213.

On 11 November 2025, NORITZ, a company primarily engaged in the manufacture and sale of gas water heaters and oil-fired boilers in Japan and overseas, announced its Q3 (January–September) FY12/2025 results. The Company continues to demonstrate steady progress towards achieving its full-year forecasts. As sales and operating profit are typically concentrated in Q4 (October–December), there is potential for full-year results to slightly exceed current projections. In the Q3 (January–September) period, the Company reported an improvement at the operating profit stage in Japan compared with the same period last year, and higher operating profit overseas, resulting in a turnaround from an operating loss of ¥415m to an operating profit of ¥809m on a consolidated basis. In Japan, unit sales of environmentally friendly products such as hybrid water heaters and high-efficiency models for residential use continued to grow. Overseas, Australia is increasingly becoming a major contributor to earnings. While the impact of a sluggish market in China remains unavoidable, strong performance in Australia more than offsets this decline. We plan to interview management for further details and will update and release our Company Report accordingly.

On 31 October 2025, DAIKEN MEDICAL, running operations to develop, manufacture and sell medical devices used for prevention of hospital-acquired infections and postoperative pain management, released its results for Q1 to Q2 FY03/2026. It has been revealed that sales of COOPDECH Amy PCA, used for postoperative pain management and known for its innovative features, continued to perform strongly. In addition, the Company achieved sales growth for FitFix, its long-standing mainstay product used for prevention of hospital-acquired infections. As a result, the Company secured year-on-year sales growth for Q1 to Q2. However, earnings declined due to the impact of rising material costs and increased R&D expenses. Meanwhile, from a long-term perspective, COOPDECH Amy PCA is expected to continue contributing to growth, enhancing the Company’s overall growth potential. In addition to significant room for expansion in the domestic market in Japan, the Company is planning to launch and expand the product in Europe and other overseas markets.

On 6 November 2025, Shinwa, which manufactures, sells and installs scaffolding equipment used in the fields of construction work, as well as manufacturing and selling logistics equipment, released its Q1 to Q2 FY03/2026 results. It has been revealed that the Company saw an all-time high since listing achieved in both revenue and earnings. Furthermore, full-year Company forecasts have been revised upward and yearend dividend per share as well from ¥16.0 to ¥18.0. According to the Company’s indications, this performance has been significantly driven by increased revenue from large-scale logistics warehouse projects on the Logistics Equipment side. On the Scaffolding Equipment side, the Company saw revenue roughly unchanged over the same period of the previous year, but it will begin benefiting from addons of KAIZU KENSETSU Co., Ltd. to be newly consolidated from Q3 (October to December). As outlined in the basic strategy of the Medium-Term Management Plan (FY03/2025 to FY03/2029), M&A initiatives that are expected to generate synergies with existing businesses are being steadily executed. We are to attend the Company’s financial results briefing on the web, scheduled for 25 November, which will be followed by our interview with the management, so that we should be able to update our Company Report and release it afresh in due course.

On 16 October 2025, INTERLIFE HOLDINGS, which runs operations of providing total services such as design, construction and maintenance management for commercial & public facilities, held its results briefing for Q1 to Q2 (March to August) FY02/2026. It has been revealed that the Company saw operating profit doubled over the same period of the previous year for the actual results of Q1 to Q2 (March to August), resulting in a prospect that it will achieve operating profit of ¥1,000m set as the target for the final year of the midterm management plan (FY02/2026 to FY02/2028) as early as in the first year, i.e., FY02/2026. Sales are surging for large-scale projects with high profitability, associated with special effects equipment (for sound, video, lighting and rigging) mainly for hotels, which is driving the Company’s gross profit margin upward and being a factor for the performance far better than expected earlier. Once the earnings trend for H2 (September to February) is confirmed, the midterm management plan is likely to be revised. We are to gain further insights through interviews with the Company’s management and, based on the findings, update and re-release our Company Report.

NORITZ, running operations mainly to manufacture and sell gas water heaters & oil-fired boilers both in Japan and foreign countries, has begun to show signs of a recovery trajectory in its earnings. Toward FY12/2025, the Company appears to be on track to achieve an earnings improvement exceeding the assumptions of initial Company forecasts. In addition to the contribution from price revisions implemented from the beginning of the year, the Company is seeing a sales increase in Japan due to higher unit sales of high value-added and/or environmentally friendly products, while overseas, measures to lower the break-even point in China are proving effective. However, the initial Company forecasts have been left unchanged due to the need to carefully assess the impact of additional tariffs and market trends in China toward H2 (July to December). Meanwhile, the Company, which is actively involved with Promotion of Sustainability-Oriented Management, has announced a policy to strengthen its response to carbon neutrality and social issues by focusing on the development and expansion of environmentally and socially responsive products. For example, the Company is focusing on the development and expansion of products that combine heat pump technology (a technology that efficiently heats and/or cools by transferring thermal energy from air or water) with high-efficiency gas water heaters. As its “Vision for 2030,” the Company aims to achieve a 90% sales composition ratio for environmentally friendly products in Japan (versus 40% in 2023) as well as reducing CO₂ emissions from sold products by 30% compared to 2018.

INTERLIFE HOLDINGS, which runs operations on the Interior Construction side and the Sound & Lighting Facilities side (providing total services such as design, construction and maintenance management for commercial & public facilities), is implementing a policy to pursue sustainable earnings growth toward 2030. The Company aims to enhance its earning power by capturing construction demand in the Tokyo metropolitan area and demand related to the integrated resort (IR) development in Osaka, being flexible in response to the constantly changing market environment. For Q1 (March to May) FY02/2026, the impact of a reactionary decline from the concentration of large-scale projects during the same period of the previous year was limited and steady sales growth was achieved, with 66.6% of full-year operating profit assumed in Company forecasts already attained. However, Company forecasts have remained unchanged, since the orders for backlog of projects on the Interior Construction side for H2 (September to February) have not been fully confirmed at this point, according to the Company. For FY02/2025, the Company saw an unprecedented concentration of sales from large-scale projects, which also had a significant impact on profitability as they often carried high profit margin. Meanwhile, the Company, which is actively working to enhance both shareholder returns and capital efficiency, has continued to roll out a series of initiatives, comprising a substantial dividend increase, implementation of interim dividend to expand shareholder return opportunities and share buybacks.

On 7 August 2025, Sanyo Homes, running operations of mainly building houses on a contract basis and developing condos for sale, released its results for Q1 (April to June) FY03/2026. It has been revealed that the Company is achieving a rapid recovery in earnings situation compared to the same period of the previous year due to the recovery on the Condos Business side, which is responsible for developing condos for sale. For Q1 (April to June), sales were boosted by the completion and delivery of “Grancrea iiNE Town in Mizuho,” as well as the posting of sales from properties delivered out of plan. Meanwhile, on the Hosing Business side, which is responsible for mainly building houses on a contract basis, the Company saw operating loss expanded year on year, although order intake has started to pick up, which is far more than compensated for by the recovery on the Condos Business side. As a new initiative, the Company has announced plans to utilize its owned assets. It will lease land and buildings it owns in Wakayama-prefecture to an international school scheduled to locally open in September 2027, aiming to generate stable rental income from a long-term perspective. According to the disclosure dated 22 August 2025 (in Japanese), the Company intends to raise funds for the renovation of existing buildings into educational facilities through both debt and equity financing. Furthermore, it is reportedly considering engaging in construction contracts for student dormitories and related infrastructure.

On 19 August 2025, EM SYSTEMS, which develops and sells IT systems of mission-critical tasks for pharmacies as the leader in Japan, live-streamed its financial results briefing for the Q1 to Q2 (January to June) FY12/2025 results. It has been revealed that assumptions of initial Company forecasts were well exceeded due to earlier-than-expected emergence of demand related to welfare administration projects. Meanwhile, full-year Company forecasts have remained unchanged. For Q1 to Q2 (January to June), the Company saw sales far better than expected with respect to projects to implement e-prescription systems and provision of optional software for online eligibility verification systems, while the Company is in the process of closely examining trends for H2 (July to December) at present. The Company aims for organic growth through an increase in its market share, but it saw an addon stemming from demand related to welfare administration projects to occur irregularly, which had significantly driven the Company’s performance for FY12/2024, having further contributed also for Q1 to Q2 (January to June) FY12/2025. Now, the impact stemming from demand related to welfare administration projects is beginning to subside for H2 (July to December) and thereafter, implying that the Company’s performance is to reflect steady growth driven by organic expansion in the near future.

On 8 August 2025, NORITZ, running operations mainly to manufacture and sell gas water heaters & oil-fired boilers both in Japan and foreign countries, held its Q2 (January to June) FY12/2025 financial results briefing via conference call. It has been revealed that the Company achieved a significant improvement in earnings situation over the same period of the previous year. This was driven by the positive impact of price revisions implemented at the beginning of the year, as well as increased unit sales in Japan, particularly of high-value-added and environmentally friendly products, with which the Company has benefited from an effect of higher sales. In addition, cost-saving measures proved effective and further supported the improvement. Overseas, although sales declined, earnings increased. In China, where market conditions remain sluggish, unit sales stagnated, leading to downward pressure on earnings. However, the Company implemented thorough cost control measures, which lowered the break-even point and generated a larger positive impact on earnings situation. Although Company forecasts were far exceeded in the results for Q2 (January to June) with respect to earnings in particular, full-year Company forecasts have remained unchanged. This reflects the Company’s cautious stance in light of rising risks associated with the Chinese market and potential additional tariffs. We are to have an interview with the management to obtain further details so that we should be able to update and release our Company Report afresh.

On 14 August 2025, Fast Accounting, which automates and streamlines accounting tasks through accounting-specific AI, released its results for Q1 to Q2 (January to June) FY12/2025. It has been revealed that clients, centered around existing ones, have started utilizing the Company’s Accounting AI agent built on its proprietary platform, Deep Dean. This software agent autonomously executes specific tasks and objectives related to accounting processes, indicating that products and services related to the Accounting Singularity are beginning to be rolled out in earnest. In the lead-up to this point, Deep Dean has surpassed the passing standards of both the Japanese CPA and US CPA exams. Meanwhile, the Company continues to see growing demand for consulting services to support the implementation of its accounting AI agent. Another notable development is that Robota, the Company’s flagship product suite, has been adopted in InspectData, a platform provided by NTT DATA WITH, a key sales partner. According to the Company, this partnership is expected to enable more efficient and broader expansion of sales derived from its products and services.

On 7 August 2025, TOW, focusing on the development of advanced planning & production for integrated promotions, released its results for FY06/2025 and held the results briefing (live stream). It has been revealed that the Company achieved record high in both sales and recurring profit, excluding addons from specific BPO operations during the COVID-19 pandemic. The Company’s initiatives to drive its business through a “twin spindles” approach, i.e., client base expansion and domain expansion, appear to be bearing fruit. On 15 January 2025, the Company established a new group structure by making Qetic, a digital production company with strengths in entertainment and cultural content domain, a subsidiary. The Company is accelerating collaboration with its subsidiaries highly specialized in areas such as events, video production and digital, aiming to enhance both the quality and profitability of operations. By placing experiential value at the core, the Company seeks to generate synergy with integrated promotions and event planning & production, focusing on expanding its business across three categories of operations: real-world events, integrated promotions and hybrid events. Through those efforts, the Company aims to achieve sustainable growth.

On 7 August 2025, KAGA ELECTRONICS, major electronic components trading company, announced its results for Q1 (April to June) FY03/2026. Simply according to the Company’s statement, the highlight is that sales and earnings have risen for Q1 (April to June), while full-year Company forecasts have been revised up from a previous outlook of a decline in sales and earnings to one of an increase in both with an addon from Q2 (July to September) and onward as a result of having acquired Kyoei Sangyo (6973). The Company further states that it is noteworthy that it expects to see DOE of 4.2% for FY03/2026 with planned dividend revised up, as well as ROE of 14.6% and total shareholder return ratio of 83.3% with a largest-ever share repurchase and cancellation totaling ¥14,447m, demonstrating its commitment to improving capital efficiency and shareholder returns as advocated with the new midterm management plan. On 8 August 2025, through off-auction own share repurchase transactions (ToSTNeT-3) on the Tokyo Stock Exchange, the Company acquired 4,917,400 shares of common share. Furthermore, it plans to cancel all of the repurchased shares—equivalent to 9.4% of the total number of shares outstanding (excluding treasury shares)—on 18 August 2025. Notably, this will be the first share cancellation for those to be repurchased since the listing.

On 7 August 2025, MIMAKI ENGINEERING, which drives digitization of industrial-level printing, released its Q1 (April to June) FY03/2026 results. It has been revealed that the Company’s performance was significantly affected by yen’s appreciation and additional tariffs, resulting in a YoY decline in both sales and earnings. However, excluding the impact of yen’s appreciation, the Company secured growth in both sales and earnings. The stronger yen led to reductions in sales and operating profit and uncertainty surrounding the imposition of additional tariffs contributed to a decline in sales of North America and Europe, even on a local currency basis. Sales in Japan increased significantly, but it was not sufficient enough to offset the declines in other regions. Meanwhile, the Company, which advocates for stable profitability and consistent sales growth, is actively making upfront investments to explore new business domains through aggressive resource allocation, even during Q1 (April to June). New product launches did contribute during the period, but the impact of external factors such as exchange rates and tariff rates has temporarily intensified.

On 4 August 2025, Shinwa, which mainly manufactures, sells and installs scaffolding equipment used in the fields of construction work, announced its results for Q1 (April to June) FY03/2026. It has been revealed that the Company achieved record-high revenue and earnings at all stages for Q1 since its listing. In comparison with the same period of the previous year, the Company saw revenue steadily increased and thus effect of higher revenue, while efforts to reduce manufacturing costs have also begun to bear fruit, resulting in a significant increase in operating profit. Assumptions for revenue of Company forecasts were rather exceeded on the mainstay Scaffolding Equipment side as well as on the Logistics Equipment side, while the Company saw a high year-on-year growth in revenue on the Logistics Equipment side in particular. However, Company forecasts have remained unchanged from a conservative standpoint. On the Logistics Equipment side, the Company has announced a policy to contribute to solving more challenges by focusing not only on improving the performance and expanding the lineup with respect to existing products, but also on developing new products that meet increasingly diverse market needs.

On 15 July 2025, INTERLIFE HOLDINGS, which runs operations on the Interior Construction side and the Sound & Lighting Facilities side (providing total services such as design, construction and maintenance management for commercial & public facilities), announced its results for Q1 (March to May) FY02/2026. It has been revealed that sales and earnings are steadily rising so far for FY02/2026, following a significant increase in sales and earnings for FY02/2025, while the Company has announced the implementation of an interim dividend aiming to enhance shareholder return opportunities. For Q1 (March to May), the Sound & Lighting Facilities side achieved a substantial increase in both sales and earnings, largely driven by the progress of large-scale projects exceeding initial plans. On the other hand, the Interior Construction side was forced to post a decline in both sales and earnings compared to the same period of the previous year, mainly due to the recoil from the concentration of sales resulting from the completion of large-scale projects during the same period of the previous year. The Company as a whole has already achieved 66.6% of its full-year Company forecasts for operating profit at the Q1 (March to May) stage. We are to gain further insights through interviews with the Company’s management and, based on the findings, update and re-release our Company Report.

TOW, which is focusing on the development of advanced integrated promotion planning & production, aims to enhance its long-term growth potential through these efforts. Although the Company achieved significant increases in both sales and earnings for FY06/2024 due to the full recovery from the COVID-19 pandemic, sales have been sluggish so far for FY06/2025. For Q4 (April to June), sales of Expo-related operations (such as event production and management) are being posted and full-year performance is expected to show increases in both sales and earnings. However, due to the absence of sales posted for FY06/2024 from a major automobile exhibition and a major IP content project, both the sales growth rate and earnings growth rate are expected to remain at limited levels. Nevertheless, the Company is actively promoting investments in human capital to enhance its long-term growth potential, and is also advancing initiatives in key areas such as AI and the environment. Although these initiatives involve associated costs, they are largely offset by improved profitability resulting from a focus on high value-added fee-based operations and in-house production within the group. As a result, both the sales growth rate and earnings growth rate are expected to trend steadily for FY06/2026 and beyond.

HAGIWARA ELECTRIC HOLDINGS, a technology trading company specializing in automotive electronics, is currently in a recovery phase in terms of short-term trends of earnings. The impact of adjustments in automobile production volumes is gradually subsiding, and the Company is steadily capturing demand for capital investment related to vehicle electrification. As a result, it is expected to achieve a transition from sales growth with declining earnings to sales and earnings growth between FY03/2025 and FY03/2026. Additionally, the emerging sales of the data platform business, which has been strengthened through M&A activity, are also contributing to this positive outlook. While the Company continues to incur costs associated with growth investments aligned with its key strategic focus of “enhancing earning power” under the midterm management plan (FY03/2025 to FY03/2027), the effects of recent investments are beginning to materialize and positively impact profitability. Historically, the Company’s core business model has centered on wholesale distribution of semiconductors used in electronic control units (ECUs) for various systems such as engines, brakes, and multimedia, primarily to Tier 1 suppliers within the Toyota Group. Looking ahead, the Company aims to expand its involvement in providing diverse solutions, thereby driving further enhancement of its earning power and transitioning into a new growth stage. During the period of the midterm management plan, the Company is expected to make progress in structural reforms and establishing a solid business foundation to realize this transformation. The plan also targets CAGR of 10.0% in sales and 12.6% in operating profit over the three-year period.

Shinwa, which mainly manufactures, sells and constructs scaffolding equipment for the use in the fields of construction work, is to continue seeing its operations performing well in line with assumptions of its midterm management plan (FY03/2025 to FY03/2029), calling for prospective revenue of ¥20,000m or higher and operating profit of ¥2,400m or higher for FY03/2029, the final year of the plan, implying operating profit margin of 12.0% at the lower limit. When setting the FY03/2024 results as the point of origin, the Company is to see minimum CAGR of 9.5% in revenue and 27.9% in operating profit. The actual results of FY03/2025, the first year of the plan, were in line with initial assumptions, which is followed by emerging synergy from a vertical M&A (between companies at different stages of the supply chain) for FY03/2026 and thereafter. On 1 April 2024, the Company, which ranked first in Japan for “manufacture & sale” of scaffolding equipment (system scaffoldings), has acquired YAGUMI Group (currently, wholly-owned subsidiary), one of Japan's leading operators to “construct” scaffolding equipment. FY03/2026 Company forecasts look being based on conservative assumptions, while the Company, which is considering further strategic M&A deals, is likely to achieve favorable performance from a long-term perspective.

Sanyo Homes, running operations of mainly building houses on a contract basis and developing condos for sale, is going for substantial increases in sales and earnings for FY03/2026. On the Housing Business side, which is responsible for building houses on a contract basis, the Company is looking to firmness in sales of real estate solutions. The Company has been successfully matching landowners with business owners, bringing in increasing order placement for large-scale facilities such as nursing homes, medical malls, company housings, shopping centers and so on. At the same time, the Company is promoting the use of own lightweight steel frame components, when building properties, which is enhancing rate of utilization in own manufacturing facilities. Further, the Company is to benefit from an improvement in cost rate, stemming from the passing on of higher raw material prices to customers on a full-year basis. Meanwhile, on the Condos Business side, which is responsible for developing condos for sale, the Company is looking to sales driven by a directionality of demand for properties newly completed being so buoyant. The midterm management plan (FY03/2025 to FY03/2027) suggests CAGR of 12.3% in the Company’s sales and 36.1% in operating profit. The results were rather stagnating for FY03/2025, the first year of the plan, while FY03/2026 Company forecasts are going for performance, exceeding assumptions of the midterm management plan, while the performance goal has remained unchanged for FY03/2027, the final year of the plan. According to the Company, there was an aspect for sales to have been delayed for the FY03/2025 results, which is to result in sales larger for FY03/2026 to a corresponding extent.

NORITZ, running operations mainly to manufacture and sell gas water heaters & oil-fired boilers both in Japan and foreign countries, is seeing a recovery in its performance. This is due mainly to a trend that the Company is facing a turning point for the number of units sold, which is highly influential to its earnings as a whole. On a full-year basis, the Company has inevitably suffered from a decline in earnings for FY12/2023 and for FY12/2024 as well, due to a decline in the number of units sold. On a quarterly basis, however, the Company saw a changeover from declining to increasing for the number of units sold for Q4 (October to December) FY12/2024 and this trend has continued into Q1 (January to Maruch) FY12/2025, which substantially drove earnings for each quarter during the relevant period. Further, the Company is looking to a possibility for this trend to persist for Q2 (April to June) and thereafter, while also looking to gradually emerging benefits from its measures to cut back on cost of sales advocated by the midterm management plan V-Plan 26 (FY12/2024 to FY12/2026) for FY12/2026. During the relevant period, the Company is to cut back on cost of sales by collective \3,000m, while it has made progress in line with this goal to date. For reference sake, the Company suggests that the bulk of the benefits comes from reductions in procurement via component standardization.

SENSHU ELECTRIC, which focuses on development of its operations as electric wires general trading company, is steadily implementing measures as planned in its midterm management plan (FY10/2025 to FY10/2027) as well as seeing an increase in sales. For Q1 to Q2 (November to April) FY10/2025, the Company has suffered from short-term adjustment in earnings, but it appears that sales and earnings are likely to continue growing from a long-term perspective. For Q1 to Q2 (November to April), sales of FA Cables, which are said to carry gross profit margin the highest by category of products, have declined on a year-on-year basis, while sales of Power Cables, which are said to carry gross profit margin relatively lower, have risen. With respect to FA Cables, the Company saw one-off concentration of sales during the same period of the previous year, while sales are adjusting in some part of demand from semiconductor production equipment and machine tools. More importantly, however, such demand appears to recover at some stage of H2 (May to October), according to the Company. As for Power Cables, the Company has steadily captured increasing demand from the construction sector as well as benefiting from higher price of copper. In April 2025, the Company set up Nagoya FA Center (Inazawa-city, Aichi-prefecture), which is an example of the enforcement of policy for growth in that this has the objective to enforce own operations for processing of control panels and soil heaters, both of which are expected to drive the Company’s growth from a long-term perspective.

On 5 June 2025, DAIKEN MEDICAL, running operations to develop, manufacture and sell medical devices mainly used for prevention of hospital-acquired infections and postoperative pain control, held its financial results briefing for FY03/2025. It has been revealed that the Company is trying to raise own internal manufacturing ratio from some 20% at the moment to 50% as the target by making a changeover from the mainstay existing off-patent products being exposed to lowered competitiveness and a rise in manufacturing costs to new products as well as internally manufacturing them. According to the Company, this is to lead to achievement of 50% for gross profit margin and thus 50/50 in conclusion. For the FY03/2025 results, the Company saw gross profit margin of 41.2% (up 0.3% points). FY03/2026 Company forecasts are going for prospective sales to rise but decline for earnings, conservatively assuming increased impact stemming from a rise in manufacturing costs. Further, Company forecasts also assume increased costs as a result of human capital investment and capital expenditure to promote internal manufacturing. In other words, the Company intends to achieve a V-shaped recovery in earnings from a midterm perspective, while formulating midterm management plan, which is to be disclosed at the stage of making some progress in its strategy to enhance internal manufacturing, as far as we could gather.

MIMAKI ENGINEERING, which drives digitization of industrial-level printing, aims to accelerate its growth potential from a long-term perspective by developing its operations in line with the basic policy of its long-term growth strategy, Mimaki Innovation 30. Allocating 1% to 2% of sales to investment in new domains, apart from the existing R&D investment, the Company aims to achieve CAGR of 12.3% in sales over the five-year period to FY03/2030 with Innovation in the literal sense to be created. For earnings, the Company has seen operating profit margin of 10.9% (up 3.6% points YoY) for the FY03/2025 results, while calling for no more than 8% or higher for FY03/2030, because of assuming the impact stemming from the above-mentioned upfront investment. Nevertheless, it is the case that the said burden associated with the upfront investment will be the very nature for Innovation and thus enhancement of growth potential. Based on the lower end of prospective operating profit margin for FY03/2030, i.e., 8%, the Company is calling for CAGR of 5.7% in earnings. The Company suggests that it will continue to pursue sales growth with stable profitability and take on new challenges in new domains via its initiative-taking use of own resources at the same time.

INTERLIFE HOLDINGS, running operations mainly of interior construction and sound & lighting facilities (comprehensive services of design, construction work, maintenance management and so on for commercial and/or public facilities), has set NEXT STAGE 2030 as the slogan for its 5fth midterm management plan (FY02/2026 to FY02/2028), while having announced a policy to enhance profitability by capturing construction demand in the Tokyo metropolitan area and demand related to integrated resort developments in Osaka, with a view to growth through CY2030. The Company is calling for CAGR of 12.2% in sales and 38.7% in operating profit for FY02/2028, the final year of the plan, when setting the FY02/2024 results as the point of origin. For the FY02/2025 results, which immediately followed the FY02/2024 results, there is an aspect that the Company has intensively posted sales and operating profit. The Company suggests that it aims to achieve sustainable growth in earnings by means of flexibly responding to ever-changing market environment. Still, FY02/2026 Company forecasts are going for decreased sales and earnings, as the Company is to suffer from a decline in sales as a result of its business restructuring and a contribution reduced with respect to large-scale projects carrying high profitability on a year-on-year basis. For the results of the previous year, i.e., FY02/2025, the Company has achieved substantially increased sales and earnings, driven by a surge in the number of large-scale projects such as those of the Osaka Expo and urban redevelopments. For FY02/2026, the Company is to be forced to undergo short-term adjustments, but prospects are bright from a long-term perspective, as far as we could see.

On 22 May 2025, KAGA ELECTRONICS, major electronic components trading company, held its on-the-web financial results briefing for FY03/2025. It has been revealed that FY03/2026 Company forecasts are going for a recovery in sales for H2 (October to March) as the impact of inventory adjustments will run its course, although the said impact will persist for the time being. In the FY03/2025 results, the Company has suffered from prolonged inventory adjustments at major customers as well as suspensions of trading with a couple of specific customers, having resulted in sluggish sales. Meanwhile, FY03/2026 Company forecasts also assume risks of reducing sales and earnings, stemming from the US tariffs issues and yen’s appreciation. Thus, sales and earnings on a full-year basis are expected to decline. It is suggested that Company forecasts are conservative in the respect of reasonably assuming foreseeable risks, while going for increased sales and earnings, if such risks are not taken into account, i.e., sales of ¥557,000m (up 1.7%), operating profit of \24,000m (up 1.7%) and operating profit margin of 4.3% (up 0.0% point) for FY03/2026.

On 12 May 2025, Sanyo Homes, running operations of mainly building houses on a contract basis and developing condos for sale, released its FY03/2025 results. It has been revealed that the Company had returned to profitability on the Housing Business side to mainly build houses on a contract basis, having begun benefiting from its measures to pass on rising raw material prices and labor costs to selling prices, while being likely to do so on a full-year basis for FY03/2026. Further, the Company is also benefiting from its policy to beef up capacity utilization rate in its own factory to manufacture lightweight steel frames by means of actively adopting them for large-scale facilities on top of the existing detached houses, rental housing and so on. The Company suggests that it has been promoting such adoptions for some time when receiving incoming order intake for nursing care facilities, medical malls, company housing and other commercial facilities. As a result, the Company did see an improved rate of capacity utilization in its own factory and the impact of this is also expected to expand for FY03/2026. We are to attend the Company’s results briefing to be held on Friday, 30 May, while planning to interview with the management so that we should be able to update our Company Report to release afresh.

On 15 May 2025, Fast Accounting, which advocates business reform through accounting-specific AI, released its Q1 (January to March) FY12/2025 results. It has been revealed that the Company is seeing an ongoing high growth in sales as well as heaping up specific achievements associated with realization of Accounting Singularity and development of the US market to exponentially accelerate its growth for the future. Deep Dean, the Company’s proprietary AI, has scored 100% in all four sections of Japan’s CPA short-term exam and far exceeded criteria for USCPA exam, beginning to demonstrate the leading capability in the market with that of being well leveraged in specialist accounting work. Further, it appears that the Company is on the verge of benefiting from its local operations of marketing in the United States. The Company is calling for prospective sales of ¥10,000m (versus ¥1,707m for the FY12/2024 results) and operating profit margin of 10% (10.6%) for FY12/2028 as its Stretch Goal. The existing sales of products and services associated with AP (Accounts Payable) automation will continue growing fast, while those of Accounting Singularity and the entrance into the markets overseas will emerge and surge toward FY12/2028, according to the Company. On top of this, the Company is also looking to such contribution from Platform Realm as well.

On 15 May 2025, EM SYSTEMS, which develops and sells IT systems of mission-critical tasks for pharmacies as the leader in Japan, released its Q1 (January to March) FY12/2025 results. It has been revealed that sales were posted ahead of schedule for the operations to meet government administration of medical affairs and thus Company forecasts were upgraded for Q1 to Q2 (January to June). The Company suggests that it has made progress in its operations to meet the needs for medical DX ahead of schedule, such as those of coping with medical-aid issues related to livelihood protection for online eligibility verification systems and introducing electronic prescription systems. More importantly, however, the Company perceives that all those operations to meet government administration of medical affairs are nothing but irregular addons, while trying to get at organic growth from a long-term perspective, based on its measures to enhance own wallet share on the mainstay IT Systems for Pharmacies side. For Q1 (January to March), sales have steadily risen for initial systems, driven by expanding sales of “Sumareki with Recepty” in line with increasing demand for introductions and replacement as well as an increase in provisions of services ne with replacement of own products, while having secured an increase in sales for system usage fees and consumable goods. Meanwhile, the Company suggests that there is ample room to enhance own market shares on the Clinics side and the Long-Term Care / Welfare side.

On 15 May 2025, TOW, which focuses on the advanced development of planning & producing for integrated promotions, released its Q1 to Q3 (July to March) FY06/2025 results. It has been revealed that the Company is likely to achieve an increase in sales and earnings on a full-year basis, as initially expected, although sales and earnings have declined for the said period. According to the Company, sales associated with the Expo 2025 assignments will be posted intensively for Q4 (April to June). In the business environment surrounding the Company, demand for real-world experiences such as events and advertising for promotions of sales continues to be strong, but sales have declined due to the absence of the impact of large-scale automotive exhibition that posted sales during the same period of the previous year. For earnings, the Company has almost maintained high margin at the gross profit level, supported by its fee-based operations to provide high added value and in-house producing on a group basis, while having suffered from the impact of increased SG&A expenses, which was driven by increased personal expenses as a result of aggressive investment in human capital and increased expenses associated with its initiatives in areas of focus such as AI and environment. We are to interview with the management to obtain further details, so that we should be able to update and release our Company Report afresh.

On 13 May 2025, NORITZ, running operations mainly to manufacture and sell gas water heaters & oil-fired boilers both in Japan and foreign countries, released its Q1 (January to March) FY12/2025 results. It has been revealed that a significant increase in earnings was achieved, due mainly to an increase in the number of units sold on the Domestic Operations side. The Company suggests that it has benefited from increased marginal profit and improved productivity, while having seen firm sales of high-value-added products and those of high efficiency at the same time, which resulted in improved profitability. On the other hand, the Company suggests that it has seen a decrease in the number of units sold in China, but it is more important that the local operations saw an improvement in earnings over the same period of the previous year, due to the success of having introduced measures to lower break-even point. In North America, the Company has reduced its loss, while having seen ongoing increases of sales and earnings in Australia. The Company’s earnings were also driven by the effect of revisions on selling prices, although it appears that the impact was basically offset by soaring raw material prices. The cost reduction measures advocated by the Company are to take full effect for FY12/2026, contributing to further improvement in earnings. We are to have an interview with the management to obtain further details so that we could update and release our Company Report afresh.

On 14 May 2025, Shinwa, which mainly manufactures, sells and constructs scaffolding equipment for the use in the fields of construction work, released its FY03/2025 results. It has been revealed that the Company saw surging revenue and earnings as expected in initial Company forecasts. This is largely due to the acquisition of the YAGUMI Group, one of the leading operators to construct scaffolding equipment in Japan, as a subsidiary in April 2024. It appears that the impact was substantial for earnings in particular. The said subsidiary’s operations to construct scaffolding equipment carry gross profit margin higher in the first place, when compared with that of the existing operations to manufacture and sell scaffolding equipment. Meanwhile, FY03/2026 Company forecasts look being based on conservative assumptions. We are to attend the Company’s results briefing to be held on Thursday, 29 May, while planning to interview with the management so that we should be able to update our Company Report to release afresh.

On 15 April 2025, INTERLIFE HOLDINGS, running operations of interior finish work as well as design and construction of sound & lighting facilities, held its results briefing for FY02/2025. It has been revealed that the Company is to potentially see a significant earnings growth from a long-term perspective. The Company is to see a swing in its performance from FY02/2025 to FY02/2026 due to concentration of sales for large-sized projects and restructuring, while we estimate CAGR of almost 40% in operating profit from a long-term perspective, based on the Company’s suggestions. For the actual results of FY02/2025, sales and earnings have just surged, driven by projects related to the Osaka Expo and steady progress in work to complete large-sized projects related to urban redevelopment. Meanwhile, there is an aspect that sales were concentrated far more than initially planned and thus a correction is inevitable for FY02/2026 to immediately follow. Still, the level of operating profit will roughly triple, compared with the actual results of FY02/2024, i.e., the stage immediately prior to the concentration of sales. We are to have an interview with the management to obtain further details in order to update our Company Report and release it afresh.

NORITZ, running operations mainly to manufacture and sell gas water heaters & oil-fired boilers both in Japan and foreign countries, is working on measures to achieve a significant cost reduction during the period of the midterm management plan V-Plan 26 (FY12/2024 to FY12/2026). The impact was rather limited in earnings for FY12/2024, the first year of the plan, while the Company is calling for cost reduction of cumulative ¥3,000m throughout the three-year period of the midterm management plan V-Plan 26, which is to be achieved by realization of smart manufacturing scheme through the establishment of a robust infrastructure of manufacturing system and an increase in the rate of in-house production. The Company is calling for prospective sales of \210,000m, operating profit \4,500m and operating profit margin of 2.1% for FY12/2026, the final year of the plan. Based on a simple comparison, it would appear the Company’s earnings are to be driven mostly by the cost reduction. In the actual results for FY12/2024, the Company was inevitably suffering from a decline in earnings due mainly to sluggishness of market conditions in China, but a recovery in earnings is to begin and persist for FY12/2025 and thereafter, having hit the bottom for FY12/2024. The Company suggests CAGR of 1.9% in sales and 37.1% in operating profit for FY12/2026, when setting the actual results for FY12/2024 as the point of origin.

TOW, focusing on the advanced development of planning & producing for integrated promotions, is strengthening its human capital management and making priority investments in the AI and environmental fields in order to achieve sustainable growth. This incurs a corresponding increase in costs, but the Company is to secure an increase in sales and earnings for FY06/2025 as it succeeds in its measures to enhance profitability by means of promoting fee-based operations and in-house producing. As initially assumed, the Company suffered from decreased sales in the actual results for Q1 to Q2 (July to December) due to the absence of projects related to a biennially-held large automotive exhibition, which posted sales during the same period of the previous year, while anticipating sales for H2 (January to June) to increase substantially over the same period of the previous year due to concentrated sales related to the World Expo. Meanwhile, it appears that the Company continues strategically raising personnel costs for FY06/2025, as it did for FY06/2024, in order to boost employee morale. Further, the Company suggests that 80% of employees have completed an AI learning program so far and the full-scale launch of business efficiency and sophistication through the use of AI tools is underway. On top of this, the Company also suggests that there has been an increase in environment-conscious proposals through the use of the Company's independently developed tool to access CO2 emissions at events, EventGX. In light of all those factors, it should be the case that the turning point from the current investment phase to the growth phase will arrive in the foreseeable future.