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.