Bridge Report:（8860）Fuji the　Second Quarter of Fiscal Year ending March 2026

President Nobutsuna Miyawaki	Fuji Corporation Ltd. (8860)

Company Information

Stock Information

* The share price is the closing price on December 15, 2025. The number of shares issued at the end of the most recent quarter excludes its treasury shares.
* ROE and BPS are based on FY 3/25 earnings results. EPS and DPS are based on FY 3/26 earnings estimates.

Earnings Trends

*Units: million yen, EPS and dividend are yen.

This Bridge Report provides information about Second Quarter of Fiscal Year ending March 2026 Earnings Results of Fuji Corporation Ltd.

Table of Contents

Key Points
1. Company Overview
2. New Medium-Term Management Plan (FY 3/26 to FY 3/28)
3. Second Quarter of Fiscal Year ending March 2026 Earnings Results
4. Fiscal Year ending March 2026 Earnings Estimates
5. Conclusions
<Reference: Regarding Corporate Governance>

Key Points

• In the cumulative second quarter of FY 3/2026, sales grew 19.6% year on year and ordinary income rose 20.0% year on year. In terms of sales, they progressed healthily with the completion and delivery of large-sized condominiums and the delivery of freely designed houses in the Segment of Residential Properties for Sale. In the Housing Distribution Segment, they secured plenty of inventory by enhancing procurement in the previous fiscal year, and the number of delivered used condominium units increased significantly thanks to the strong demand for them. Also in the Effective Land Utilization Segment, they saw the steady progress of the entrusted construction of rental housing, etc. as well as rental apartment buildings for individual investors, which kept performing well. The sales in the Property Leasing and Management Segment, which is linked to the Effective Land Utilization Segment, increased as assumed. Namely, all segments performed well. In terms of profits, gross profit margin declined year on year. This is mainly because the sale of profitable large land was posted in the same period of the previous year. Order backlog, which is a leading indicator of sales, stood at 60.3 billion yen, which was relatively high as of the end of the second quarter, indicating the healthy receipt of orders.

   

• As the second quarter has ended, the company’s forecast for FY 3/2026 has been left unchanged, calling for sales increasing 1.7% year on year and ordinary income decreasing 18.4% year on year. In the Business of Sale of Newly Built Residential Properties, they will secure a sufficient number of properties for sale, and are expected to receive a healthy number of orders for detached homes. The Housing Distribution Business, in which they sell residential properties at lower prices than newly built ones, is projected to keep performing well. Also in the Effective Land Utilization Business, they have received a favorable number of orders for construction, and the order backlog as of the end of the interim period hit a record high. The sales and profit of the Property Leasing and Management Business, too, are growing as expected, and progressing steadily toward the full-year consolidated earnings forecast. The dividend forecast has been left unchanged, and they plan to pay 32 yen/share per year (an interim dividend of 16 yen/share and a year-end dividend of 16 yen/share), unchanged from the previous fiscal year, in which they increased the dividend amount by 5 yen/share.

   

• In order to improve performance from the next fiscal year, it is indispensable to increase inventory real estate and order backlog, which is a leading indicator. Reflecting the favorable number of orders received, the order backlog as of the end of the interim period hit a record high. Inventory assets are slightly low compared with sales, as they control inventory thoroughly. The procurement environment has improved due to the rise in interest rate, the sluggish performance of competing small and medium-sized enterprises, etc., so they are expected to procure more properties. It is noteworthy whether they can increase order backlog and inventory real estate for growth from the next fiscal year.

   

   

1. Company Overview

Fuji Corporation Ltd. provides various real estate related services including sales of new and used condominiums and detached houses primarily in Osaka Prefecture (where the Company is based), between Osaka and Kobe, and within Wakayama City. Their main business is the sale of detached houses, albeit a built-for-sale type, that would maximize customer satisfaction by allowing for the “free-design house” regarding layout, specifications, etc. within the boundaries of Japan’s Building Standards Act. Fuji also boasts of strengths in the development of properties where 50 to 200 homes are constructed in coordination with the surrounding environment and each other to provide uniformity in neighborhoods. The other main pillars of the Company’s business include renovation and sale of used residential properties, collaboration with financial institutions for effective land utilization, sales of rental apartments for sale to individual investors, property leasing and management services.
Fuji boasts of unique knowhow developed in various businesses realms derived from its sales agency and detached house services. Furthermore, the complementary and synergistic effects that occur between its various business divisions allow the Company as a Complete Home Provider to respond with solutions that match the needs of home owners and residents in various geographic regions and times. Taking advantage of its strength in community-based management, the company aims to create homes that deliver high customer satisfaction by a special relationship with customers that doesn’t end just after sell or build them a home.
In addition, each of the company's businesses, consisting of residential properties for sale, housing distribution, effective land utilization, leasing and management, and construction-related businesses, has its own know-how and promotes balanced management that complements each other’s business segments. Starting with the sublease business of rental apartments for sale to individual investors and serviced housing for seniors for individual investors, the company has been diversifying the business, operating the asset business of existing residential properties and the business of owning serviced rental housing for seniors, and expanding its recurring-revenue business that will withstand any change in economic trends.

1-1 Management ethos

The company operates for the sake of:
・Employees,
・Employees’ families,
・Customers and business partners,
・Shareholders,
・Local communities, and
・Ultimately, the nation.
The company's management ethos begins with “for employees and their families” because it believes that if employees or their families are not happy, they cannot do work that would truly please customers. By treasuring employees and their families and providing them with a sense of gratitude, pride in their work, motivation, and a sense of purpose in life, the employees will be able to value customers truly, which the company believes will lead to the happiness of all stakeholders, including business partners, shareholders, local communities, and the nation.

1-2 Business Description

Fuji Corporation Ltd. is a “comprehensive creator of housing” that meets all kinds of needs regarding housing. Soon after establishing the company, they launched a detached home business with a system for procuring land, obtaining permission and approval, designing, building, and selling houses in a seamless manner, and then nurtured the know-how to design and construct condominiums. In the rental apartment business, they created the real estate management business. These businesses evolved into the Effective Land Utilization Business, where they undertake the construction of apartments and condominiums, and then they established the business of selling rental apartment buildings for individual investors. Furthermore, they launched the custom home business.
By taking advantage of the characteristics of community-based business administration and inducing synergy among a broad range of businesses related to housing, they are making efforts to provide real estate and services that will satisfy customers to a great degree.

*The percentage represents the ratio of sales in each business segment to the total sales of the reporting segments (excluding internal sales).
Residential Properties for Sales (accounting for 31.3% of total sales in 1H of FY 3/26)
With its base of operations in Osaka Prefecture and the surrounding areas, the company sells freely designed new detached houses, built-for-sale houses, and condominiums, and also undertakes the construction of custom houses. It specializes in “development of a town” with 50 to 200 homes and offers “free-design house” in which customers themselves participate in building their homes, as well as its unique ventilation system “Sumi no Ie (a house with a system for purifying air with charcoal)/Pure Air,” which harnesses the self-purifying properties of charcoal.

(Taken from the website of the company)

Housing Distribution (accounting for 21.9% of total sales in 1H of FY 3/26)
The company is engaged in the “business of purchasing and reselling used residential properties,” in which it purchases used residential properties, renovates them, and sells them, and the “used housing asset business,” in which it acquires existing condominiums with tenants and earns rental income and profit on the sale of the condominiums through resale. The company aims to further stabilize its earnings base by focusing on the highly competitive and profitable used housing asset business, while continuing the inventory optimization and strict procurement policy emphasizing profit, which were started in the previous fiscal year. By renovating aged residential properties and supplying them to the real estate distribution market, they contribute to a sustainable society and the vitalization of real estate in the Kansai area.

[Renovation example]

(Taken from the website of the company)

Effective Land Utilization (accounting for 22.5% of total sales in 1H of FY 3/26)
They undertake the construction of rental housing while giving proposals by utilizing the know-how of rental management. While operating the core business of selling rental apartment buildings for individual investors, in which they procure land and build and sell rental apartments, etc., they sell rental apartments for seniors with nursing-care services and undertake construction. Under a management policy of aiming to be “the most beloved effective land utilization business section in Japan,” the company has been able to exist solely in the closed market for many years, thanks to an extremely high repeat order rate and introduction of customers by its financing banks. The demand from investors is extremely strong, and the company expects the environment of strong demand to continue, leading to solid performance.

(Taken from the website of the company)

Property Leasing and Management (accounting for 23.2% of total sales in 1H of FY 3/26)
The company's wholly owned subsidiary Fuji Amenity Service Co., Ltd. provides management services such as the management of rental apartment buildings, tenant recruitment, and rent collection, as well as management of condominiums on consignment from their management associations. The company boasts the nation's largest number of affordable apartments for seniors with nursing-care services, which are operated only in the Kansai area. The company expects these operations to continue to be healthy in the current fiscal year and to become a key component of its long-term, stable earnings base, thanks to the strong synergetic effects of the construction contracts in the effective land utilization business, the sale and deliver of rental apartments for sale to individual investors and condominiums in the business of residential properties for sales.

Construction related (accounting for 1.0% of total sales in 1H of FY 3/26)
In January 2020, the company welcomed the Yuuken Construction Group, which has a proven track record in steel-framed and reinforced concrete construction work, as a partner, and is providing steel-framed housing for the “Fuji Palace Senior,” which is affordable apartments for seniors with nursing-care services, as well as carrying out public works projects, mainly architectural and civil engineering works. The company aims to expand its business lineup by carrying out steel-framed and reinforced concrete construction work all by itself and steadily expand its business performance.

Other business (accounting for 0.1% of total sales in FY 3/26)
This business segment is not included in segments to be reported, but includes the insurance agency business operated by the company.

1-3 Strengths of Fuji Corporation

◎ Creating customer-oriented homes that can take responsibility for meeting customer needs
The company’s name is derived from Mt. Fuji, with the aim of becoming "the most beloved company in Japan.” The company believes that a house is a once-or-twice-in-a-lifetime purchase, and that it must be a business that satisfies its customers to the very end. The company believes that providing safe and reliable products and services, and meeting the expectations and trust of its customers are of utmost importance, so that all its customers will be happy to say, "Fuji will take care of everything right through to the end, and I am glad I bought a house from Fuji." Since the company's founding, it has continued to build homes that are customer-focused and responsible. As a result, the company has been highly recognized by customers. This is evident through the many introductions of new customers by existing customers and cooperating companies and the repeat contracts from existing customers. Moreover, in the 2025 Oricon Customer Satisfaction ® Survey, the company has received high praise from customers, being ranked first in "Kinki" and "Osaka Prefecture."
In the division of residential properties for sale (new construction), 30.0% of orders received come from customers who have previously purchased a home from the company or through referrals from the company's affiliates. In the housing distribution division (used houses), 47.6% of orders for properties sold directly without intermediary agents also come from previous customers or referrals from company affiliates. In the effective land utilization division, owners who have signed contracts for 2 or more buildings (repeaters) account for around 40% of all owners who have signed contracts with them. This proves that customers are satisfied with the quality, rental management, etc. of rental apartment buildings.
* The number of contracts concluded through referrals for the division of residential properties for sale (new construction) is calculated based on the number of lots when multiple lots are purchased at the same time (excluding sales of land). (Taken from the reference material of the company)

◎ Stable Business Structure with Balanced Management
Although the company's sales area is limited to Osaka and parts of Hyogo and Wakayama Prefectures, each of its divisions boasts a national level or the largest market share within its sales area. In the business of residential properties for sale, the company was ranked first in the number of housing starts in Osaka Prefecture in the builder category released in February 2023, for 17 consecutive years until fiscal 2021 (although it has not been certified since fiscal 2022 as the survey was terminated, the company believes that it still maintains the largest share of the market). In the housing distribution business, it is ranked 8th in Japan for the number of used housing purchases and resales, and in the property leasing and management department, it is ranked first in Japan by a long way with 275 affordable apartments for seniors with nursing-care services.
Source: Ranked first among builders in Osaka Prefecture, excluding Osaka City, in terms of the number of housing starts. (The results in Osaka City were excluded) (Taken from “Collection of No. 1 Home Builders in 2023” by Jutaku Sangyo Kenkyusho Co., Ltd.)
Source: Ranking in terms of the number of residential properties purchased and resold in 2025, the Japan Journal of Remodeling (published on July 28, 2025), Source: Bumper issue of Elderly Housing Newspaper in the summer of 2025
In addition, (1) the ability to conduct business that meets the needs of a wide range of customers, (2) the expansion of business opportunities by responding to a wide variety of commercialization, and (3) a high tolerance for changes in the economy and market conditions are strengths of balanced management.

[Sales composition by business segment in balance (2Q of FY 3/26)]

◎ Sumi no Ie (House of Charcoal) / Pure Air
Pollens, bacteria, and viruses are becoming grave problems in addition to air pollution due to such factors as exhaust gas. Fuji Corporation’s “Sumi no Ie / Pure Air” was born through its efforts of putting together the technologies that it has cultivated and focusing thoroughly on air and quality. The company has gained the right to use the patented system “Sumi no Ie” within the corporate group’s sales area, and offers safe housing as a product that differentiates it from other companies and possesses added value.
Sumi no Ie (a house with a system for purifying air with charcoal)/Pure Air is a carbon air clean system that forcibly draws in outdoor air with a fan, and blocks minute harmful substances with a microparticle filter. By putting charcoal under the floor and passing air through it, clean air is supplied to each room.
In some lots of land for sale, they hold an event for experiencing a stay at “Sumi no Ie (a house with a system for purifying air with charcoal).” This event has been held since 2019, and many people have experienced a stay at “Sumi no Ie.” In this event, those who are thinking of buying a detached house and interested in the effects of charcoal stay at a model house of “Sumi no Ie,” a detached house, for a day free of charge, to experience the effects of charcoal and the latest housing equipment.

(Taken from the reference material of the company)
*Examples of the effects felt by customers

◎ Provision of high-performance housing
The company considers that its mission is to provide high-quality housing where people can live while being filled with a sense of satisfaction throughout life. As one of the approaches to the mission, Fuji has obtained the housing performance assessment report for all its free design houses, and this means that the company has established a corporate system that enables it to earn the highest grades for all the housing performance indication items (having six kinds). Furthermore, the company has adopted “TRC Damper”, a vibration control system that dampens seismic vibrations, to achieve more effective prevention of walls from being damaged and furniture from falling down.

(Taken from the reference material of the company)
*The above contents are as of March 31, 2025.
*All housing units of the company got Grade 5 or higher grades for heat insulation performance, etc. according to the ZEH standards. The company also provides residential properties with Grade 6 to meet the needs of customers.
Considering the trends of the needs of customers and the market, the company plan to provide residential properties with Grade 7, too.

◎ Building a home that can be built because of their close ties to the local community
The company's founding spirit is to "keep taking care of a house after sold or built." The company is committed to continuing its dense business within the scope of its customers' face-to-face contact, and to ensuring a complete after-sales follow-up system, which is why it does not expand its business nationwide. In line with its founding spirit, the company aims to create high-quality housing that is community-based so that customers who have been with the company for decades can continue to live with peace of mind.

◎ Used asset business in collaboration with the leasing management division
The used asset business acquires used condominiums that are already rented. This business model profits by collecting rents until tenants move out, and then the company renovates and resells the properties by collaborating with the leasing management business division. The company is one of the leading companies in Japan in the property purchase and resale business that renovates and resells vacant, used houses. With this business model, the company owns 963 properties in the Kinki region. Namely, it holds a significant number of properties in Kansai, being comparable to the largest companies in the same industry. In addition, the company has diversified exit strategies, such as re-leasing properties with existing tenants as investment properties or selling them with the tenants living in them. Using the corporate group's leasing management division enables the company to manage the properties flexibly according to their attributes. The average area of ​​properties owned as of the end of September 2025 is 58.43m2, and the average building age is about 25 years. Regarding the location of the properties, 64% of them are in Osaka prefecture, and 32% are in Hyogo prefecture, making them the regions with the largest number of properties.

*Properties owned at the end of September 2025

◎ No sales consignment. The company’s employees handle all sales.
The company sells about 1,000 new condominium units annually, and the company's employees conduct sales activities at all sales sites. The company's employees handle land purchase, sales, plan design, construction site management, and after-sales follow-up. The company conducts face-to-face sales activities in an intensive and responsible manner aiming for the best customer satisfaction in Japan and pursuing customer happiness. In the sales department, there are no sales performance graphs for individual employees, but customer reviews and report graphs. The company places great importance on the positive reviews it receives from its customers and is promoting its sales activities by upholding the principles of "a special relationship with customers that doesn’t end just after sell or build them a home."

◎ Leasing management that has maintained a high occupancy rate of approx. 97% for the past five consecutive yearsAs of the end of September 2025, the number of rental housing units managed by the company is 39,215 (the number of rental residential buildings managed by the company is 2,749). The occupancy rate is 97.3% (excluding affordable apartments for seniors with nursing-care services). In the past 5 years, occupancy rate has been as high as approx. 97%. This is thanks to the company carefully selecting the location of each property so that its buyer can manage the property with peace of mind over the long term, as well as (1) the company's ability to attract customers through strong cooperation with brokerage companies, (2) its high level of property management, and (3) the rapid and flexible management system due to division of labor.

◎ Stable supply of high-quality housing based on deep trusting relationships with cooperative firms
In order to provide high-quality housing, the company holds a meeting of the council for safety and health every month and a conference of the association for on-site cooperation once a year, to share the management philosophy of the company and carry out the thoroughgoing management of safety and quality. At the conference of the association for on-site cooperation in fiscal year 2024, approx. 900 people of cooperative firms got together, and held a ceremony for commending companies and artisans who aim to “bring happiness to customers” together with Fuji Corporation. In addition, they hold a ceremony for offering letters of appreciation to cooperative firms that make daily efforts to satisfy customers three times a year to express their thanks. Fuji Corporation and cooperative firms join hands to provide high-quality housing in a stable manner.

(4) Comparison of markets
◎ Newly built residential properties for sale
The number of housing starts in Osaka Prefecture decreased significantly after the subsiding of special demand amid the coronavirus pandemic, but they flexibly responded to changes in the market, so their market share remains around 3%, unchanged from the pre-pandemic period. The number of housing starts is in the long-term downward trend around Japan, but they have absolute confidence in quality and after-sale services, as they have built a reputation through community-based business administration for many years and ranked first among builders of ready-built houses in Osaka Prefecture in the Kinki region in Oricon’s survey on customer satisfaction level for 6 consecutive years, and consider that it is not difficult to maintain the number of housing starts.

(Taken from the reference material of the company)
* The number of housing starts (detached homes + condominiums) in Osaka Prefecture with reference to the monthly summary of “Report on the statistical survey on construction starts [Housing]” by the Ministry of Land, Infrastructure, Transport and Tourism
The result of Fuji Corporation means the number of delivered properties (freely designed houses + condominiums) in Osaka Prefecture in each fiscal year.

◎ Used residential properties
As the demand for used properties is growing nationwide due to the rise in prices of newly built houses, the company stably sells over 1,000 properties per year based on the strategy of selling “used condominiums” in urban areas and “used houses” in the suburbs. While they operate business mainly in Osaka and neighboring areas, the company has ranked in the top 10 in Japan in terms of the number of properties purchased and resold per year over the past 5 years, and ranked 8th in Japan in the last ranking.

(Taken from the reference material of the company)
* The result of the company means the number of properties delivered (used detached houses + used condominiums) in the Kinki region in each fiscal year. The ranking of the company was taken from the Japan Journal of Remodeling.

◎ Rental apartments for seniors with nursing-care services
As the needs for housing where seniors can live with peace in mind are growing in the super-aged society, they have steadily increased buildings they manage mainly in Osaka Prefecture under the concept of “housing where you can have your parents live without worry.” As a result, they maintained an outstanding share in the number of buildings and the number of properties in Osaka Prefecture, and boast the largest number of buildings they manage in Japan.

(Taken from the reference material of the company)
* The number of buildings managed in Osaka Prefecture was taken from “Situation of registration of rental apartments for seniors with nursing-care services” by Senior Housing Association.
The result of the company means the number of rental apartments for seniors with nursing-care services supplied in Osaka Prefecture in each fiscal year.

1-5 Efforts for ESG and SDGs

The Fuji Group has engaged in social contribution activities through business activities since the inauguration of business under the management philosophy of “managing the company for the benefit of employees, their family members, customers, business partners, shareholders, local communities, and the nation.” Fuji Corporation aims to become a corporate group that continues growing sustainably together with the society and builds up trust by contributing to the society while being conscious of the relationship of its community-based property management activities with Environmental, Social, and Corporate Governance (ESG) and the Sustainable Development Goals (SDGs).

1-6 DX (Digital Transformation) Initiatives

To promote next-generation system construction projects to dramatically accelerate the improvement of duplicated operations through overall optimization and the improvement of operational efficiency through information sharing, with the aim of building a system infrastructure that is resistant to change.

(Taken from the reference material of the company)

In November 2022, the company adopted the "ITANDI Service" operated by Itandi, Inc. Ltd. This allows the entire process, from property search to application and contract conclusion, to be completed online, reducing the burden on customers to visit in person, enabling faster customer services, and significantly improving operational efficiency for both the company and partner real estate agencies. Additionally, the company adopted the electronic contract and document management service "Release" for various business operations in sales contracts in the business of residential properties for sale in February 2023, and in lease agreements for rental apartments for seniors with nurse care services in June 2024.
Moreover, in December 2023, the company adopted the "egaku" cloud-based housing specification confirmation service, and it has achieved seamless management in the business of purchasing and reselling used residential properties, by digitalizing operations in collaboration with partner companies.
Furthermore, they adopted “Cyber Incident Guard,” which is provided by MS&AD InterRisk Research & Consulting, Inc. in October 2024, and strengthened their information security management system. In addition, they adopted “SmartHR,” a system for personnel and labor affairs, in May 2025, digitizing procedures for labor affairs, including employment, social insurance, and workflows for personnel affairs. Through this, they became possible to manage scattered information on personnel affairs in a unified manner, streamlining business operations significantly, realizing paperless operation, and reducing costs for business operations.

2. New Medium-Term Management Plan (FY 3/26 to FY 3/28)

In the real estate industry, land prices continue to rise, and the cost of supplying new housing has further increased due to surging construction material prices and labor costs. Additionally, the Bank of Japan's measures for normalizing policy interest rates have made the business environment even more challenging for real estate companies. On the other hand, economic recovery and wage growth are supporting consumers' willingness to purchase homes, and the real estate market as a whole remains relatively firm. In particular, the steep rise in new housing prices has invigorated the used house resale market, and the market of properties for investment, including rental housing, is also performing well. In response to these market changes, the corporate group has formulated a medium-term management plan (FY 3/26 to FY 3/28) centered on expanding recurring-revenue businesses, to optimize its business portfolio and strengthen its stable revenue base. This plan seeks to secure the company's growth path by maximizing synergies across five business areas, further enhancing its proposal and product development capabilities, driving operational innovation through DX and generative AI, and optimizing financial management. The plan also aims to contribute to the realization of a sustainable society by developing human resources.

◎ Vision for the New Medium-Term Management Plan (FY 3/26 to FY 3/28)

The company believes that having as many employees as possible understand and embody its management philosophy is the foundation for enhancing all aspects of corporate value, productivity, profitability, credibility, and sustainability.

◎ Profit Plan
Under this medium-term plan, sales are projected to reach record highs for three consecutive fiscal years, with profit also expected to grow steadily. Through investment in human capital and cost absorption, key financial indicators such as ROE and equity ratio are expected to remain at stable levels, striking a balance between growth and financial soundness.

[Consolidated performance plan]

*Units: million yen

<Consolidated Net Sales>
Sales are projected to reach record highs for three consecutive fiscal years, maintaining a stable growth trend.
◆Recurring revenue from property leasing and management is expected to grow steadily by approximately 7% annually, forming a stable revenue base.
◆One-shot revenue from the selling of residential properties, housing distribution, and effective land utilization is also expected to be healthy.
◆Condominium developments: Plans call for the completion and handover of 9 buildings totaling approximately 850 to just under 900 units over the period of three fiscal years
◆With steady performance across all segments, net sales are expected to exceed 130 billion yen in the third fiscal year of the plan, marking a strong growth path.

<All Kinds of Profits >
Ordinary income is expected to be impacted by an increased interest burden in the second fiscal year, but is expected to recover and return to a growth trend.
◆Human capital investment: integrating recruitment, development, and retention processes to strengthen organizational capabilities and on-site business execution
◆Advertising expenses will be strategically optimized, while DX investments will be carried out in a planned manner.
◆The impact of policy interest rate hikes is expected to peak in the second year, with expansion in net sales offsetting the effect in the third year.

<ROE & Equity Ratio>
Equity ratio is expected to be 30% or higher, ensuring financial soundness.
◆ROE is projected to temporarily decline to around 6% in the second fiscal year, when rising borrowing costs and personnel expenses are taken into account.
◆However, steady accumulation of equity capital, combined with increased sales and improved profitability, is expected to support a recovery trend from the third fiscal year onward.
◆Net D/E ratio is expected to gradually decline through appropriate management of inventory levels and interest-bearing debt, along with steady capital accumulation.
◆Equity ratio is expected to remain stable, maintaining a healthy financial standing.

[Performance Trends]
Since its listing on the stock market, the company has maintained steady sales growth by flexibly responding to changes in the external environment. Despite ongoing external pressures such as persistently high construction and land costs and rising interest rates, the company is committed to appropriate inventory management and disciplined investment decisions through selection and focus. During the current medium-term plan period, the company aims to achieve record-high sales for three consecutive fiscal years.

[Pursuit of the Recurring-revenue Business]
During the current plan period, the company aims to hand over approximately 600 rental apartment buildings over a three-year period. This is expected to result in an increase in the number of properties under management and an expansion of leasing and management revenue. The occupancy rate is projected to remain at a high level of around 97%, and the company will continue to ensure revenue stability through a high-quality property management system.

[Trends and Projections for Key Financial Indicators (Equity Ratio, ROE, and Net D/E Ratio)]
During the current plan period, as all kinds of profits recover, equity capital is expected to accumulate, resulting in stable trends of key financial indicators.

(Taken from the reference material of the company)

[Sustainable Shareholder Return Through a Progressive Dividend Policy]
The company has consistently maintained stable dividends, with no dividend reductions, for 15 consecutive fiscal years, while expanding its earnings base and strengthening its financial foundation. In the fiscal year ended March 2024, it adopted a progressive dividend policy and plans to implement dividend increases for two consecutive years. The company will continue to provide flexible shareholder returns in line with business performance, aiming for stable dividends and the sustainable enhancement of corporate value.

(Taken from the reference material of the company)

◎ Business strategies in each segment
[Residential Properties for Sales Business]

* Units: million yen

During the current plan period, supply will expand for both detached houses and condominiums, with steady performance expected throughout the three fiscal years. Although the fiscal year ending March 2027 is projected to see a temporary decline in revenue and profit due to a reactionary drop in the number of units delivered for a large-scale condominium project, supply is expected to recover in the fiscal year ending March 2028, leading to a rebound in both net sales and segment profit.

In the residential properties for sales business, the company offers three brands: the custom-built "Sumi no Ie/Pure Air" (a house with a system for purifying air with charcoal) which emphasizes air quality and health, the price-conscious "S.O.U" series; and "HIRANAGI," a single-story home line focused on design and livability. Through this diverse product lineup, the company aims to respond precisely to the evolving lifestyles and values of its customers, while also balancing operational efficiency with profitability and maximizing its proposal capabilities. In the southern area (including Sakai City, southern Osaka, Minami-kawachi, and northern Wakayama), the focus is on maximizing proposal provision capabilities and sales efficiency by leveraging all three brands. In the northern area (Osaka City, the Hanshin region, Hokusetsu, Keihan area, and Higashi-Osaka), the strategy is to maximize added value and profitability through offerings tailored to urban living.
In addition, the company provides homes that earn customer trust and satisfaction through three pillars: custom design, air quality, and earthquake resistance. With recent changes in work styles and rising land and construction costs, consumer preferences regarding housing have diversified, and consumers are becoming increasingly more likely to base their purchasing decisions on price. In response to these evolving needs, the company launched two new product lines, "S.O.U" and "HIRANAGI," in November 2022. These are new types of standardized housing that expand customer options while maintaining quality.

<Condominium Development>
Under this plan, the company aims to complete and hand over 9 condominium projects totaling approximately 850 to just under 900 units over three years, forming a key pillar of the company's overall earnings base. The handover schedule includes 3 buildings in the fiscal year ending March 2026, 4 buildings in the fiscal year ending March 2027, and 2 buildings in the fiscal year ending March 2028.

(Taken from the reference material of the company)

<Detached Housing>
Examples of ongoing sales projects linked to the sales plan from the fiscal year ending March 2026 onward (excerpted from currently available properties)

(Taken from the reference material of the company)

[Housing Distribution Business]

* Units: million yen

During the current plan period, the company will focus on used condominiums as the core of its business, while improving its product lineup based on profitability and market potential. For used detached houses, the strategy will involve a selective approach, focusing on highly profitable properties. Furthermore, in the used property housing business, the company will leverage its competitive edge in property acquisition and implement flexible sales strategies, accompanied by careful inventory management. This is expected to lead to both net sales and segment profit growing steadily.

Amid expectations for continued steady growth in the used residential property market within the Kinki region, the company aims to secure stable earnings through diverse exit strategies that carefully manage inventory levels. In the housing distribution business, the company is also developing a “used housing asset model,” a recurring-revenue approach that leverages collaboration with the rental division. This model involves acquiring and holding used residential properties with existing tenants, generating revenue from both rental income and resale profits. Compared to the highly competitive buy-and-resell market, this model features higher barriers to entry, offers greater flexibility in exit strategies, and enables risk diversification. As such, it is positioned as a strategic business domain that contributes to enhancing earnings stability.

[Effective Land Utilization Business]

* Units: million yen
* The amount of internal transactions between segments is included.

During the current plan period, both net sales and segment profit are expected to remain generally flat, indicating that overall business operations will continue steadily and stably. In the construction contracting segment, a strong order intake from the previous fiscal year is expected to contribute to performance in the first year. However, for the second year onward, the company is adopting a conservative outlook, assuming stable order intake while taking into account potential changes in the external environment and the risk of rising construction costs.

As of now, order trends remain steady, with no significant fluctuations in the business's growth potential or earnings base. Stable revenue generation is expected to continue. With growing interest in inheritance and asset succession, the company has been steadily building its track record by supplying rental apartment buildings that emphasize "security and stability" as a means of asset formation capable of generating stable returns. Even as the investment environment shifts following the end of prolonged monetary easing, the company will continue to meet the needs of owners who prioritize long-term stable income and effective asset utilization, supported by its strong supply capabilities. During the current plan period, the company plans to hand over approximately 420 rental apartment buildings and around 180 buildings through construction contracts. Amid rising construction material costs, wooden rental apartments, which offer an excellent balance between cost and profitability, are once again drawing attention. The company's Fuji Palace series leverages design expertise cultivated through its detached housing business to minimize initial investment while achieving both profitability and asset value. These properties are also well regarded from tax and financing perspectives, contributing to stable rental business operations.

[Property Leasing and Management Business]

* Units: million yen

During the current plan period, the company anticipates stable growth driven by the expansion of recurring revenue, primarily through its rental apartment brand, Fuji Palace, and Fuji Palace Senior, which offers rental apartments for seniors with nurse care services. Sales are projected to increase from 31.5 billion yen in the fiscal year ending March 2026 to 36 billion yen in the fiscal year ending March 2028, with segment profit expected to rise steadily each year, exceeding 5 billion yen in the final year of the plan.

The company's property leasing and management business, which serves as its foundation for recurring revenue, is steadily expanding through the continuous increase in the number of units under management, due to construction contracting and handover of rental apartments for sale to individual investors and condominiums. The profit from this business continues to account for an increasing share of the company's total profit, solidifying its position as a core business that supports mid- to long-term earnings stability. In addition to community-based rental apartments for seniors with nurse care services, the property leasing and management business centered on company-owned properties, subleased units, and condominium management is contributing to the steady expansion of its recurring revenue base. The company is expected to maintain a high occupancy rate of around 97%, supported by strong partnerships with brokerage firms, rigorous quality control, and on-site operation capabilities built through close collaboration between employees and subcontractors.

[Construction-related Businesses]

* Units: million yen
* The amount of internal transactions between segments is included.

In the first year of the plan, several in-house projects are scheduled, including the renovation of Fuji Palace Senior, new construction and demolition of Fuji Palace rental apartments, and other initiatives. These are expected to contribute to stable performance. In the second year, revenue and profit are projected to decline temporarily due to project scheduling delays. However, in the third year, profitability is expected to improve through the end of goodwill amortization and a recovery in order volume.

During the previous plan, the company was involved in a variety of in-house projects, including new condominium developments and renovations of affordable apartments for seniors with nursing-care services, thereby expanding its track record of construction through interdepartmental collaboration. Through the collaboration from the planning and design stages, the company has advanced cost, quality, and schedule optimization, generating synergies across one-shot revenue and recurring-revenue businesses.

3. Second Quarter of Fiscal Year ending March 2026 Earnings Results

3-1 Consolidated Results

* Data in this table and other parts of this report include figures which have been calculated by Investment Bridge, and may differ from those of the Company (same as below)
* Units: million yen

*Created by Investment Bridge based on disclosed material of the company.
*▲ of expense account indicates that the expense has increased.

Sales increased 19.6% year on year, and ordinary income grew 20.0% year on year
In the cumulative second quarter of FY 3/2026, sales grew 19.6% year on year to 71,723 million yen. In terms of sales, they progressed healthily with the completion and delivery of large-sized condominiums and the delivery of freely designed houses in the Segment of Residential Properties for Sale. In the Housing Distribution Segment, they secured plenty of inventory by enhancing procurement in the previous fiscal year, and the number of delivered used condominium units increased significantly thanks to the strong demand for them. Also in the Effective Land Utilization Segment, they saw the steady progress of the entrusted construction of rental housing, etc. as well as rental apartment buildings for individual investors, which kept performing well. The sales in the Property Leasing and Management Segment, which is linked to the Effective Land Utilization Segment, increased as assumed. Namely, all segments performed well.
Ordinary income rose 20.0% year on year to 4,414 million yen. The profits in all segments excluding construction-related ones, where profit declined due to the drop in profitability and internal sales, increased year on year. Gross profit margin declined 1.1 points year on year to 15.5%. This is mainly because the sale of profitable large land was posted in the same period of the previous year. The real gross profit margin excluding this factor in the same period of the previous year was almost equal to that in the second quarter of the current fiscal year, showing stability. Operating income rose 18.7% year on year to 4,886 million yen, as sales commissions, salaries, bonuses, consumption tax, etc. augmented, but the year-on-year increase in SGA was only 7.0%. Operating income margin declined 0.1 points year on year to 6.8%. The increase rate of ordinary income exceeded that of operating income, as interest expenses augmented in the section of non-operating expenses, but dividends received and the revenue from subsidies increased in the section of non-operating revenues. As there was no significant extraordinary gain or loss, interim profit attributable to owners of parent increased 19.8% year on year. The sales and operating income in the first half of the fiscal year hit a record high. In the first half of the fiscal year, both sales and all kinds of profits exceeded their respective initial forecasts.
In addition, order backlog, which is a leading indicator of sales, stood at 60.3 billion yen, hitting a record high as of the end of the second quarter. Capital-to-asset ratio and net D/E ratio, which are financial soundness indicators, remain healthy.

3-2 Segment Earnings (Cumulative second quarter of FY3/26)

Results by Segment and Topics

* Units: million yen
*Sales mean sales to external clients, while segment profit means operating income.
*The composition ratio of segment profit means the ratio to operating income before adjustments.
*The revenue from the insurance agency business had been posted in “non-operating revenue,” but they adopted the method for posting it in “sales” in the first quarter of FY3/24, and is shown in the Other segment.

*A: Residential Properties for Sale, B: Housing Distribution, C: Effective Land Utilization, D: Property Leasing and Management, E: Construction Related, F: Other
*Created by Investment Bridge based on disclosed material of the company.

In the segment of residential properties for sale, sales grew 20.3% year on year to 22,433 million yen and profit rose 0.9% year on year to 1,373 million yen.
In the segment of residential properties for sale, the number of units delivered for freely designed houses and residential condominiums for sale increased, so sales and profit grew year on year.
Sales grew 20.3% year on year, as the number of condominiums delivered increased significantly through the completion and delivery of “Charmant Fuji Park & Links” and the number of freely designed houses delivered, too, increased.
The year-on-year increase rate of profit was only 0.9%, despite the sales growth. This is because of the sale of undeveloped land with a high profit margin posted in the same period of the previous year. If this effect is excluded, profitability has improved year on year in the second quarter of this fiscal year.

* Units: million yen

(Taken from the reference material of the company)

In the housing distribution segment, sales grew 46.8% year on year to 15,716 million yen and profit rose 92.0% year on year to 571 million yen.
In the housing distribution segment, sales and profit grew considerably year on year, because the number of used condominiums delivered increased significantly and the average selling price per unit rose.
Sales grew considerably by 46.8% year on year, as they were able to secure a sufficient number of properties through procurement, which was enhanced in the previous fiscal year, and there is growing demand for used residential properties, which are affordable compared with newly built residential properties, whose prices are rising steeply.
Profit increased considerably by 92.0% year on year, as sales grew and profitability improved.

*Units: million yen

According to Japan Journal of Remodeling’s Annual Ranking of Resale Units Sold 2025 (issued on July 28, 2025), the company ranked eighth in Japan in the annual ranking of resale units sold. The company's housing distribution business takes place mainly in Osaka and the Hanshin region, and although its sales activities are limited to this area, it boasts one of the largest purchase and resale volumes in Japan.
Fuji Home Bank operates the used assets business with a significant competitive advantage, buying and reselling used condominiums and acquiring used condominiums occupied by tenants as real estate for investment and renovating and reselling them after occupants move out. As of the end of September 2025, the company holds 963 units.

[Variation in the used housing asset business]

In addition, each “Ouchi Kan” store is a general housing exhibition hall that always displays information on more than 1,000 properties and is arranged by area, new construction, and used house to make it easier to search for properties.

In the effective land utilization segment, sales increased 8.7% year on year to 16,146 million yen and profit rose 20.8% year on year to 1,717 million yen.
In the effective land utilization segment, both sales and segment profit increased year on year.
Sales (external sales) grew 8.7% year on year, as they received new orders for construction of rental housing, etc., ordered construction progressed steadily, and the number of delivered rental apartment buildings for individual investors was healthy like in the same period of the previous year.
Profit increased 20.8% year on year, thanks to the improvement in profitability as well as sales growth.

* Units: million yen

Regarding rental apartments for sale to individual investors, the company rigorously selects and procures rare profitable buildings based on abundant information accumulated as a general real estate industry, and keeps occupancy rate as high as 97.6%* as of the end of September 2025, based on the advanced management and tenant attracting capabilities of group companies. Owners highly evaluate their capabilities of developing products, managing properties in good faith, and attracting tenants as well as the contents of contracts beneficial for owners.
*Occupancy rate of properties they rent in bulk and manage, excluding rental apartments for seniors with nursing-care services

(Taken from the reference material of the company)

Sales in the property leasing and management segment increased 9.9% year on year to 16,619 million yen, and profit increased 14.7% year on year to 2,190 million yen.
The number of managed properties increased through the delivery of rental residential properties in the effective land utilization business and the operation of their own affordable apartments for seniors with nursing-care services progressed. Furthermore, the number of used assets in stock increased year on year in the housing distribution segment, so sales and profit increased year on year, as initially expected.
The number of managed properties as of the end of Sep. 2025 stood at 39,215, up 1,185 from the end of the previous fiscal year, and the number of rental apartment buildings for seniors with nursing-care services was 276, up 6 from the end of the previous fiscal year, showing a steady growth. Accordingly, their recurring-revenue base has been fortified further.

*Units: million yen

While the number of leased and managed units has been increasing at an average annual pace of over 2,000 units since 2020, occupancy rate has remained stable at around 97%. In addition, as of the end of September 2025, the company boasts operating 276 affordable rental apartment buildings for seniors with nursing-care services and managing 9,173 units. In addition, according to the Summer 2025 Special Edition of the Senior Citizens Housing Weekly Newspaper, the company has Japan's top ranking in the number of affordable rental apartment buildings for seniors with nursing-care services in operation, with 275 buildings in operation.

* Taken from the reference material of the company

In the construction-related segment, sales increased 28.8% year on year to 698 million yen, while the segment loss worsened by 29 million yen year on year to 26 million yen.
External sales grew significantly by 28.8% year on year, as entrusted construction ordered in the previous fiscal year progressed steadily. On the other hand, internal sales declined as there were no large-scale projects like the renovation of rental apartments for seniors with nursing-care services in the same period of the previous year, so overall sales dropped slightly.
This segment fell into the red, due to the drop in profitability caused by the skyrocketing of prices of materials and the decline in internal sales.

* Units: million yen
* Table sales are before deducting intersegment sales or transfers.

In January 2020, the company welcomed the renowned Yuuken Kensetsu Group as a partner in constructing steel-framed and reinforced concrete structures. After that, the company worked on the construction of a new large-sized RC apartment for seniors with nursing-care services, renovated an old company-owned condominium building into an affordable apartment for seniors with nursing-care services, engaged in the construction of condominiums that will be sold by the corporate group and large-scale repairs of the company’s building, indicating a steady expansion of the scope of cooperation.

(Taken from the reference material of the company)

Sales in the other segment increased 26.8% year on year to 108 million yen, and profit increased 39.1% year on year to 84 million yen.
The other segment is a business segment not included in segments to be reported but includes the insurance agency business operated by Fuji Corporation.
The revenue from the insurance agency business had been posted in “non-operating revenue,” but they adopted the method for posting it in “sales” in the first quarter of fiscal year ended March 2024.

3-3 Quarterly Earnings Trends

Consolidated sales and ordinary income for the second quarter (July - September)

*Created by Investment Bridge based on disclosed material of the company.

In the second quarter (July to September), sales and all kinds of profits were very favorable compared with those in the past fiscal years, mainly due to the increase of delivered used condominiums and the steady progress of entrusted construction of rental housing, etc.

3-4 Status of order backlog

* Units: million yen
(Taken from the reference material of the company)

The order backlog as of the end of the second quarter of FY 3/2026 stood at 60.3 billion yen, up 1.3% year on year, hitting a record high as of the end of the second quarter.
In the segment of residential properties for sale, they completed and delivered a large condominium building in April, so the order backlog of condominiums dropped considerably, but they received a healthy number of orders for freely designed houses, so the year-on-year decrease rate was only 9.9%. In the housing distribution segment, they received a favorable number of orders for used condominiums, so order backlog increased considerably by 41.5% year on year. In the effective land utilization segment, the needs of wealthy individuals for effective utilization of real estate are strong, so the order backlog of entrusted construction of rental housing, etc. increased 29.8% year on year, and the order backlog of rental apartments for seniors with nursing-care services rose 2.6% year on year, so overall order backlog grew 8.0% year on year. In the construction-related business, entrusted construction progressed steadily, decreasing order backlog by 24.0% year on year.

3-5 Financial Conditions and Cash Flow (CF)

Financial Conditions

* Units: million yen
* Inventories = Real estate for sale + Real estate for sale in progress + Real estate for development + Payments for uncompleted construction + Inventories

* Interest bearing liabilities = Loans + Lease liabilities + Debenture

*Created by Investment Bridge Co., Ltd. based on disclosed material of the company.

The total assets as of the end of September 2025 stood at 185,890 million yen, up 2,680 million yen from the end of the previous fiscal year. The major factors in increasing assets were real estate for sale, land, investment securities, long-term deposits, etc., while the major factors in decreasing assets were cash & deposits, real estate for sale in process, deferred tax assets, etc. The major factors in increasing liabilities or net assets were electronically recorded obligations, long-term debts, retained earnings due to the posting of interim profit attributable to owners of parent, etc., while the major factors in decreasing liabilities or net assets were short-term debts, advances received, provision for share-based remuneration, etc. Inventory assets were composed of real estate for sale amounting to 32.48 billion yen (28.26 billion yen as of the end of the previous fiscal year), real estate for sale in process amounting to 27.23 billion yen (29.09 billion yen as of the end of the previous fiscal year), real estate to be developed amounting to 36.29 billion yen (36.47 billion yen as of the end of the previous fiscal year), and used assets amounting to 22.59 billion yen (22.05 billion yen as of the end of the previous fiscal year).
Inventory real estate increased 2.1 billion yen from the end of the previous fiscal year. This is mainly because the inventory of detached homes increased 3.7 billion yen through steady procurement, the inventory of used residential properties grew 3.3 billion yen as they enhanced procurement of used residential properties, which are in high demand, and the inventory of condominiums decreased 4.9 billion yen due to the completion and delivery of large-scale properties.
As of the end of the second quarter of this financial year, the number of detached homes and condominiums for sale in stock stood at 2,792 (including 562 already ordered ones). The number of properties in stock to be ordered is sufficient for dealing with orders for about 3 years. The number of used residential properties in stock after enhanced procurement is 709 (including 181 already ordered ones), so the number of properties in stock to be ordered is sufficient for dealing with orders for about 6 months. The number of buildings in stock in the effective land utilization business is 268. Among them, 83 buildings (10 billion yen) are for ownership for a certain period of time, and 185 buildings are in stock for sale (they have already received orders for 91 buildings). The number of buildings in stock that are still to be ordered is sufficient for dealing with orders for about 8 months. These values are all appropriate.

* Units: million yen

Regarding cash flows, there was a cash inflow from operating activities due to a rise in interim net income before taxes and other adjustments, a decline in inventory assets, an increase in accounts payable, etc. In addition, the cash outflow from investing activities shrank due to a drop in expenditures for acquiring tangible noncurrent assets, etc., so the deficit of free cash flow shrank. On the other hand, the cash inflow from financing activities decreased due to a decline in short-term debts, an augmentation of expenditures for acquiring treasury shares, etc. Accordingly, the balance of cash and cash equivalents as of the end of the interim period dropped 7.60% year on year. The year-end balance of cash and cash equivalents remained above 20 billion yen like in the previous fiscal year.

There was a cash inflow of 5.5 billion yen from operating activities, as profit was posted in the first half of the fiscal year and they collected funds steadily. Inventory real estate grew 2.1 billion yen, but in the business of used assets, the purpose of ownership was changed from ownership to sale in the second quarter of the current fiscal year, so 4.1 billion yen was transferred from the category of tangible noncurrent assets to the category of inventory real estate. Accordingly, the inventory assets in cash flows decreased 1.9 billion yen. There was a cash outflow of 7.2 billion yen from investing activities. This is because they spent 4.9 billion yen for acquiring used condominiums for strengthening the business of used assets and 1.1 billion yen for acquiring rental apartments for seniors with nursing-care services. In addition, they put 1 billion yen in banks as time deposits in the second quarter. There was a cash inflow of 190 million yen from financing activities, as they repaid existing debts, but they procured funds for procuring land and acquiring tangible fixed assets.

3-6 Trends in Tangible Noncurrent Assets

* Tangible noncurrent assets are the total value of buildings & structures, machinery, equipment & vehicles, tools, furniture & fixtures, and land, excluding leased assets and construction work-in-progress assets.

In order to establish a stable revenue base, they are proceeding with the acquisition of rental apartments for seniors with nursing-care services and used condominiums already occupied by tenants (used assets). The number of used assets reached the target at the end of the previous fiscal year, so they plan to maintain the current number of used assets while reshuffling them for the foreseeable future.

3-7 Trends in Management Indicators

[Equity Ratio / ROE]

[Interest-Bearing Debts, Equity, and Net D/E Ratio]

*Net D/E rati (Interest-bearing debt - Cash and cash equivalents at end of period) / Equity

From the fiscal year ended March 2016 to the fiscal year ended March 2020, the company actively purchased land for large-scale sites (detached houses and condominiums) to secure inventory while actively purchasing land for its own properties (apartment for seniors with nursing care services). The period from the fiscal year ended March 2021 has been a period in which the company carefully has selected its land purchases due to the surge in land prices, and it also has reviewed inventory levels (improved inventory turnover rate) by responding flexibly to sales prices. In addition, they have put importance on the realization of stable growth by securing inventory while considering financial rules since the fiscal year ended March 2024.

(8) Recent topics
◎ Adoption of “GMO Rental DX,” an app for owners
Fuji Amenity Service Co., Ltd. of the Fuji Group manages over 35,000 rental apartments in the Kansai area. They have so far communicated with owners by using paper documents for managing properties rented in bulk, so there have been issues about the shift to paperless operations and the streamlining of business processes. In order deal with these issues, they started offering a service by adding their unique functions to “GMO Rental DX,” an app for owners, which is provided by GMO ReTech, Inc. on August 1, 2025. This enabled the digitization of documents, such as reports on incomes and expenses, the approval of documents with the app, and unified management of documents, significantly improving the convenience for owners and the company. Going forward, they will prepare for the increase of properties they manage and strive to improve the customer satisfaction level further by utilizing this service.

◎ An interview about Fuji Palace Senior published in Sankei Shimbun
The Osaka Head Office edition of Sankei Shimbun published on August 7, 2025 carried an interview about their rental apartments for seniors with nursing-care services. In the interview article, they mentioned the concept for operating Fuji Palace Senior, their system for supporting occupants and nursing-care providers, and their ambition about jobs.
They proactively operate rental apartments for seniors with nursing-care services under the concept of “housing to which you can entrust your parents without worry.” Each facility has a dedicated cooking space to serve high-quality meals with a good nutritional balance, and they regularly taste meals to check seasoning, plating, etc. from the viewpoint of occupants, to monitor services and give feedback. In order to support smooth facility operation, they offer high-quality services by holding training sessions for nursing-care providers to share successful cases and know-how.

◎ Ranked 10th in Japan in the ranking in the total capacity of welfare facilities and housing for seniors and ranked 1st in Japan in the ranking in the number of rental apartments for seniors with nursing-care services by Weekly Newspaper on Housing for Seniors
The Fuji Group ranked 10th in the ranking in the total capacity of welfare facilities and housing for seniors by Weekly Newspaper on Housing for Seniors published on August 20, 2025, so an interview with the company was featured.
The Fuji Group provides rental apartments for seniors with nursing-care services only in the Kinki region, mainly the Hanshin area, and ranks 1st in Japan in the number of apartment buildings they manage and ranks 3rd in Japan in the total capacity. They will make continuous efforts to expand business proactively. In the featured interview, they mentioned the outline of their business for seniors, the steady increase of such apartment buildings, and their future outlook.

4. Fiscal Year ending March 2026 Earnings Estimates

4-1 Consolidated Earnings

*Units: million yen

Sales are expected to grow 1.7% year on year, while ordinary income is projected to decline 18.4%.
As the second quarter has ended, the company’s forecast for FY 3/2026 has been left unchanged, calling for sales increasing 1.7% year on year to 126.0 billion yen and ordinary income decreasing 18.4% year on year to 5.7 billion yen.
Regarding the performance in the interim period of the current fiscal year, the delivery of large-scale condominiums and the increase of sale in the housing distribution business contributed, so sales and all kinds of profits increased year on year, exceeding the initial forecasts. Regarding the environment surrounding the housing industry, it is difficult to say that the willingness to purchase housing is increasing, although it is steady, due to the skyrocketing of prices of newly built housing, the rise in mortgage rates, and the growth of momentum toward defending daily life in response to the rise in commodity prices, and the company and housing buyers are concerned about the rise in policy interest rate in the future. In the Business of Sale of Newly Built Residential Properties, they will secure a sufficient number of properties for sale, and are expected to receive a healthy number of orders for detached homes. The Housing Distribution Business, in which they sell residential properties at lower prices than newly built ones, is projected to keep performing well. Also in the Effective Land Utilization Business, they have received a favorable number of orders for construction, and the order backlog as of the end of the interim period hit a record high. The sales and profit of the Property Leasing and Management Business, too, are growing as expected, and progressing steadily toward the full-year consolidated earnings forecast.

Regarding dividends, the company also plans to maintain the same level as the previous year, in which they increase the dividend amount by 5 yen/share, at 32 yen/share annually (an interim dividend of 16 yen/share and a year-end dividend of 16 yen/share), with a projected dividend payout ratio of 31.2%.

4-2 Progress toward the consolidated earnings forecast

*Units: million yen

In the second quarter of the current fiscal year, the progress rate toward the full-year earnings forecast was over 56% for sales and as high as around 70% for all kinds of profits. The sales in the second quarter stood at 71.7 billion yen, with 54.3 billion yen left before achieving the annual sales forecast: 126 billion yen. Out of order backlog, sales of 33.9 billion yen are expected to be posted in the period under review and the rental & management business is projected to earn sales of 16.8 billion yen, so a total of 50.7 billion yen is forecast to be posted as sales in this fiscal year, but still 3.6 billion yen smaller than the annual forecast. They consider that it is quite feasible to achieve the full-year earnings forecast, by selling ready-built houses, completed condominiums, and used residential houses and receiving additional orders for construction in the effective land utilization business.

4-3 The company’s policy about capital costs and share price

The purpose of the company’s business administration is to continue its business stably and repay all stakeholders for their support on a permanent basis in accordance with the management philosophy.
The real estate business is easily influenced by changes in market conditions, so business operation using financial leverage is indispensable. Accordingly, financial strategies are extremely important, so the company has a policy of enriching IR activities for improving expected values while aiming to strengthen equity capital through retained earnings and improve the financial soundness by improving the efficiency of asset use and increase profitability by investing in growing fields while paying more attention to capital costs and share price.

*1: Capital cost means the cost of shareholder’s equity (Risk-free rate + β value × Market risk premium), *2: PBR (price-book value ratio), *3: BPS (book value per share), *4: EPS (earnings per share)

4-4 Dividends and shareholder benefits

◎ Dividend

◎ Benefits for shareholders
Benefits are offered to shareholders holding 500 or more shares written or recorded in the shareholder registry as of March 31 every year.

(5) Acquisition of treasury shares
At the meeting of the board of directors held on August 5, 2025, they made resolutions about the acquisition of treasury shares.
（1）Type of shares to be acquired: Common shares
（2）Total number of shares to be acquired: Up to 600,000 (accounting for 1.65% of the total number of outstanding shares excluding treasury shares)
（3）Total share acquisition price: Up to 450 million yen
（4）Acquisition period: August 6 to November 26, 2025

The cumulative total of treasury shares acquired by October 28, 2025 is 560,900 shares and 449,982,100 yen, so they finished the above-mentioned acquisition of treasury shares.

5. Conclusions

The financial results of Fuji Corporation in the first half of FY 3/2026 were favorable, as sales grew 19.6% year on year and ordinary income rose 20.0% year on year. In the first half, sales and all kinds of profits hit a record high, exceeding the company’s forecast for the first half significantly. As the results in the first half were favorable, the progress rate toward the full-year earnings forecast is 56% for sales and 77% for ordinary income. The sales in the first half stood at 71.7 billion yen, with 54.3 billion yen left before achieving the annual sales forecast: 126 billion yen. Out of order backlog, sales of 33.9 billion yen are expected to be posted in the period under review and the rental & management business is projected to earn sales of 16.8 billion yen, so a total of 50.7 billion yen is forecast to be posted as sales in this fiscal year, just 3.6 billion yen smaller than the annual forecast. The remaining sales to achieve the annual forecast will be earned by selling ready-built houses, completed condominiums, and used residential properties and receiving additional orders for construction in the effective land utilization business. It is unlikely that the favorable trend in the first half will change abruptly, so sales are expected to exceed the forecast considerably. In terms of profit, there are uncertainties over the rise in raw material prices, procurement prices, personnel expenses, and interest rates, but profit is projected to exceed the forecast significantly due to the surplus in the first half and future sales growth. They plan to decide whether or not to revise the full-year forecast upwardly after studying the trend of performance in the third quarter, which is noteworthy to see how much they earn before revising the full-year earnings forecast upwardly.
In order to improve performance from the next fiscal year, it is indispensable to increase inventory real estate and order backlog, which is a leading indicator. Reflecting the favorable number of orders received, the order backlog as of the end of the first half of the fiscal year hit a record high. Inventory assets increased from the end of the previous fiscal year, but are somewhat low, as they control inventory thoroughly. The procurement environment has improved due to the rise in interest rate, the sluggish performance of competing small and medium-sized enterprises, etc., so they are expected to procure more properties. It is noteworthy whether they can increase order backlog and inventory real estate for growth from now on.
The company's ongoing medium-term plan outlines five key goals for the company's future:
1. Enhance service quality to deliver products that meet evolving societal needs and provide tailored proposals to each customer.
2. Build a stable, long-term profit base by optimally combining transaction-type (sales) and subscription-type (rent and property management) businesses.
3. Enhance productivity and create a rewarding workplace through operational improvements, DX, and generative AI.
4. Achieve both financial soundness and efficiency through the optimization of capital structure, profit distribution, and inventory strategy.
5. Contribute to solving social issues through the company's core businesses and deepen ties with local communities.
We will continue to keep an eye on the progress of this newly launched medium-term management plan.

<Reference: Regarding Corporate Governance>

◎ Organization type, and the composition of directors and auditors

◎ Corporate Governance Report
The company submitted its latest corporate governance report on November 17, 2025

Basic Policy
Our basic policy on corporate governance is to maximize corporate value from the standpoint of our shareholders while improving management efficiency and transparency and achieving steady business results. We regard this as one of the most important management issues.

(1) To Maximize Shareholder Value
This corporate group was founded with the business objectives of “building homes that bring happiness” and “making our customers happy after they buy homes,” and with the desire to become “the most loved company in Japan, like Mt. Fuji.” The company’s main areas of operation are the entire Osaka Prefecture, southern Hyogo Prefecture and northern Wakayama Prefecture, and its business is based on the management principle of building trustworthy houses with a customer-facing approach that does not ignore them after the completion and sale of houses. Therefore, instead of seeking temporary profits and business expansion, the company believes it is important to establish a company that will survive based on long-term stable management. For long-term stable management, human capital is essential, and it is important to develop respectable leaders with excellent knowledge, boldness, and insight, and thus, the corporate group has adopted the following management ethos and corporate philosophy, by using the expression “human capital” rather than “human resources,” based on the belief that people are assets.
“Management Ethos”
The company operates for the sake of:
・Employees,
・Employees’ families,
・Customers and business partners,
・Shareholders,
・Local communities, and
・Ultimately, the nation.
“Corporate Philosophy”
・We are employees of Fuji Corporation Limited.
・We shall engage in our work with enthusiasm and good faith.
・We shall recognize the responsibilities and importance of our own work.
・We shall work in a spirit of gratitude and service.
・We shall do a job that will be appreciated by our customers and business partners.
The company’s management ethos starts with “For the benefit of employees” and “employees’ families.” This is because the company believes that they cannot do a job that truly pleases their customers if their employees or their families are not happy. When the company values its employees and their families and all employees have a sense of appreciation, pride in their work, a sense of achievement, and a sense of purpose in life, the employees get more motivated and can care about their customers from the bottom of their hearts. The company believes that this will lead to the happiness of all stakeholders, including customers, business partners, shareholders, local communities, and consequently, the nation.
While utilizing the above management ethos and policy and expanding business in line with the growth of human capital, the company aims to become a corporation that is always trusted by its customers, business partners, and shareholders, and that can serve society through its business, by further cultivating the business areas it has been operating from the past, actively expanding into Osaka City, the largest market in the Osaka Prefecture, as well as the northern Osaka Prefecture and southern Hyogo Prefecture, and by promoting the improvement of profitability and strengthening the financial structure.

(2) Meetings of the Board of Directors
In order to formulate highly competitive strategies according to changes in the business environment and carry out quick decision-making, the Board of Directors meets once a month in principle. The Board meets based on a resolution in writing if there are urgent matters. The Board of Directors is currently composed of seven Directors (including two Outside Directors), and strives to ensure that there is a lively debate at meetings of the Board of Directors and that decisions are made quickly through a collegial system.

(3) Corporate Auditors and the Board of Corporate Auditors
The company has adopted a corporate auditor system. The Board of Corporate Auditors consists of one full-time Corporate Auditor (Mr. Hitoshi Kawade) and two Outside Corporate Auditors (Mr. Shinsuke Takatani and Mr. Inao Harato). In principle, the Board of Corporate Auditors holds regular meetings three times a year with the Representative Director and President to exchange views and opinions, and each Corporate Auditor attends the Board of Directors’ meetings and meetings of department managers and expresses his or her opinions. In addition, they conduct a wide range of audits, including assessing the appropriateness and efficiency of the Directors’ execution of duties and the status of the development and operation of internal control systems, through attending audits and exchanging information with the Internal Audit Office and auditing firms.

(4) To Strengthen the Internal Information Disclosure System
In order to ensure the timeliness, accuracy and fairness of information disclosure, the corporate group has established “Information Disclosure Rules” to restructure and standardize the group-wide information disclosure system, and has been working to raise awareness within the company in relation to timely disclosure.
The “Information Disclosure Rules” designate the head of the IR Office as the person responsible for handling information, and clarifies the roles and responsibilities of each department in relation to timely disclosure. In addition, when disclosing information, each relevant department within the company examines and scrutinizes the information to be disclosed and mutually checks the disclosure documents prepared by each department, thereby establishing a system to ensure the appropriateness of the disclosure process starting from information gathering to disclosure.

(5) To Improve the Quality of IR Activities
The company is committed to IR activities based on its basic policy of disseminating information to shareholders and investors in a timely, appropriate, prompt, and easy-to-understand manner
Specifically, the company strives to actively disclose information on corporate details through the publication of financial statements and supplementary materials as well as other materials disclosed by the stock exchange on the company’s website, the posting of electronic public notices, the active holding of company briefings for analysts and institutional investors and for general investors, also through its participation in IR events.
Further, in order to fairly disclose the medium/long term direction of the company to shareholders and investors, the company publishes management indicators, which are published in the IR section of its website. Moreover, shareholder newsletters are prepared in an easy-to-understand manner to provide individual shareholders with a better understanding of the company’s management philosophy and policies, as well as its management situation and direction.
In principle, the company’s financial results are announced before the end of the following month after the closing date, to accelerate and decentralize the announcement of financial results.

(6) To Strengthen Internal Control
The company believes that internal control is one of the most important mechanisms supporting corporate governance for a company to adequately fulfill its social responsibilities, and that the efforts to strengthen this internal control are the most significant initiatives for a company to adequately fulfill its social responsibilities, recognizing that such efforts are the responsibility of the management itself. As a specific effort to strengthen internal control, the company established the Internal Control Promotion Committee in February 2007, and has been actively exchanging opinions at its meetings held on a regular basis. To achieve 4 objectives of internal control: [1] effectiveness and efficiency of operations, [2] reliability of financial reporting, [3] compliance with laws and regulations related to business activities, and [4] preservation of assets, the company established an organization and corporate culture with a focus on the control environment in internal control.
In addition, in order to further enhance monitoring activities, the Internal Audit Office is assigned as a complementary organization to maintain and strengthen compliance and risk management, which continuously perform internal checks on business execution in accordance with laws and internal regulations.

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