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.