Bridge Report:（8860）Fuji the Fiscal Year ended March 2026

President Nobutsuna Miyawaki	Fuji Corporation Ltd. (8860)

Company Information

Stock Information

* The share price is the closing price on June 30, 2026. The number of shares issued at the end of the most recent quarter excludes its treasury shares.
* ROE and BPS are based on FY 3/26 earnings results. EPS and DPS are based on FY 3/27 earnings estimates.
* They refrained from disclosing the consolidated earnings forecast for FY 3/27, because there are many uncertainties that would affect their business performance, so it is difficult to indicate numerical earnings forecasts. As soon as reasonable forecast becomes possible, they will announce it.

Earnings Trends

*Units: million yen, EPS and dividend are yen.
* They refrained from disclosing the consolidated earnings forecast for FY 3/27, because there are many uncertainties that would affect their business performance, so it is difficult to indicate numerical earnings forecasts. As soon as reasonable forecast becomes possible, they will announce it.

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

Table of Contents

Key Points
1. Company Overview
2. Medium-Term Management Plan (FY 3/26 to FY 3/28)
3. Fiscal Year ended March 2026 Earnings Results
4. Fiscal Year ending March 2027 Earnings Estimates
5. Conclusions
<Reference: Regarding Corporate Governance>

Key Points

• In the fiscal year ended March 2026, sales grew 11.6% year on year and ordinary income rose 0.1% year on year. Sales hit a record high, significantly exceeding the forecast for the initial fiscal year of the medium-term management plan. Operating income and ordinary income hit a record high, although profit margin dropped mainly due to the augmentation of personnel expenses and interest paid. On the other hand, net income was unchanged from the previous fiscal year. Sales grew in all business segments, but the segments of residential properties for sale and construction saw a decline in profit. Order backlog, which is a leading indicator of sales, stood at 67,839 million yen as of the end of the fiscal year, hitting a record high. In terms of order receipt, the major segments of residential properties for sale, housing distribution, and effective land utilization all performed well.

   

• The consolidated earnings forecast for the fiscal year ending March 2027 is still to be announced, because it is difficult to reasonably estimate the effects of fluctuations in material prices and a delay in procurement, as there are uncertainties over oil prices and the supply of materials amid the tense Middle East situation. As of now, their business operation has not been hindered significantly, and sales and order backlog are almost in line with the forecast. As soon as it becomes possible to forecast business results, they will disclose the earnings forecast.They plan to pay 32 yen/share (an interim dividend of 16 yen/share and a year-end dividend of 16 yen/share), unchanged from the previous fiscal year.

   

• In the fiscal year ending March 2027, they are wary of the effects of the rise in commodity prices caused by the interest rate hike and the increase in oil prices, the delay in procurement of housing materials caused by the instability of the Middle East situation, etc. It is noteworthy how they will overcome the harsh environment and how much they can secure profitability by dealing with accumulated orders without trouble.

   

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.

(Taken from the website of the company)

*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 26.5% of total sales in 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 25.4% of total sales in 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.
The Main Office of Ouchi Kan is a theme park-style digital housing information exhibition where customers can “browse freely and choose freely properties.” It always displays over 1,000 properties including property information not available online, allowing customers to browse and search for properties freely.

[Main Office of Ouchi Kan]

(Taken from the reference material of the company)

Effective Land Utilization (accounting for 22.4% of total sales in 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 24.5% of total sales in 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 FY 3/26)
In January 2020, the company welcomed the Yuuken Kensetsu 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 0.2% 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 2026 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% 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), 30% 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 41% 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 (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 initiative has been continued since 2019, and many visitors have participated so far. Targeting consumers who are considering purchasing a detached home and are interested in the benefits of the “Sumi no Ie,” the program offers free overnight stays at a model home, providing them with an opportunity to experience the benefits of the charcoal-based system and the latest home amenities and features in a real-life living environment.

(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, 2026.
*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 950 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 March 2026 is 57.49m2, and the average building age is about 25 years. Regarding the location of the properties, 64% of them are in Osaka prefecture, and 33% are in Hyogo prefecture, making them the regions with the largest number of properties.

*Properties owned at the end of March 2026

◎ 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 March 2026, the number of rental housing units managed by the company is 40,464 (the number of rental residential buildings managed by the company is 2,848). 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 2025, approx. 850 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.

1-4 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 7 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.
In October 2024, they adopted “Cyber Incident Guard,” which is provided by MS&AD InterRisk Research & Consulting, Inc. and strengthened their information security management system. Subsequently, 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. Additionally, in August 2025, Fuji Amenity Service Co., Ltd., a member of the company’s group, adopted “GMO Rental DX,” an application for property owners provided by GMO ReTech, Inc., with the aim of improving convenience for both property owners and Fuji Amenity Service through document digitization and workflow features. By utilizing this service, the company is preparing for future expansion of the number of units under management while further improving customer satisfaction. Furthermore, in December 2024, the company installed “Smaview 2.0,” a next-generation access control system provided by FLIE Co., Ltd., in some of the used residential properties it sells. While property inspections previously required the handover of keys in advance, this system enables smart entry and exit without the need for a staff member, thereby streamlining the property viewing process and allowing for more efficient and quick guidance.

2. 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
* The earnings forecast for FY 3/27 is still to be announced, because it is difficult to reasonably estimate the effects of fluctuations in material prices and a delay in procurement, as there are uncertainties over oil prices and the supply of materials amid the tense Middle East situation. As of now, their business operation has not been hindered significantly, and sales and order backlog are almost in line with the forecast. As soon as it becomes possible to forecast business results, they will disclose the earnings forecast.

<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 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.

◎ 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. Fiscal Year ended 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

Sales increased 11.6% year on year, and ordinary income grew 0.1% year on year
In the fiscal year ended March 2026, sales grew 11.6% year on year to 138,332 million yen. Sales exceeded 130 billion yen for the first time, operating income and ordinary income hit a record high, exceeding the forecasts in the initial fiscal year of the medium-term management plan. Sales grew year on year in all business segments.
In the segment of residential properties for sale, they secured a sales growth thanks to the completion of a large-scale condominium building for sale, and kept receiving a healthy number of orders. In the housing distribution business segment, procurement and sales strategies turned out to be effective, so sales grew significantly by 31.7% year on year. In the effective land utilization segment, the growth of sales from commissioned construction of rental housing, etc. contributed, and the property leasing and management segment grew stably according to the increase of buildings under management.
Ordinary income rose 0.1% year on year to 6,995 million yen. In terms of profit, operating income and ordinary income hit a record high, although profit margin declined mainly due to the augmentation of personnel expenses and interest paid. On the other hand, net income was unchanged from the previous fiscal year. Gross profit margin was 15.2%, down 0.6 points from the previous fiscal year. This is mainly because profit margin declined for some condominiums for sale, as they posted the sale of large undeveloped land with a high profitability in the previous fiscal year and set prices for sales strategies. Operating income rose 5.1% year on year to 8,294 million yen, as the year-on-year increase rate of SGA was only 8.6% despite the augmentation of sales commission, salaries, bonuses, consumption tax, etc. Operating income margin decreased 0.4 points to 6.0%.
Regarding the profit composition by segment, the effective land utilization segment and the related property leasing and management segment, which earns recurring revenues, account for 71.6% (66.6% in the previous fiscal year), showing a healthy performance and driving overall profit. The growth rate of ordinary income fell below that of operating income, due to the augmentation of paid interest in non-operating expenses, etc. In addition, net income attributable to shareholders of the parent company decreased 0.1%, because an impairment loss of 56 million yen was posted as an extraordinary loss.
In addition, order backlog, which is a leading indicator of sales, stood at 67,839 million yen, hitting a record high as of the end of the fiscal year. Capital-to-asset ratio and net D/E ratio, which are indicators of financial soundness, improved slightly. These values remain healthy.

3-2 Segment Earnings (Full-year cumulative of FY3/26)

Results by Segment and Topics

* Units: million yen
*Sales mean sales to external clients, and segment profit means the operating income obtained by excluding the transactions between segments and deducting company-wide expenses.
*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 5.8% year on year to 36,737 million yen, while profit decreased 29.1% year on year to 1,595 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 grew year on year.
The major factor in increasing sales of condominiums is the delivery of the completed large-scale property “Charmant Fuji Park & Links.”
The major factor in decreasing segment profit is the drop in profit margin for some condominiums due to the decline after the posting of sales of large undeveloped land with a high profit margin in the previous fiscal year and the price setting for sales strategies.

* Units: million yen

(Taken from the reference material of the company)

In the housing distribution segment, sales grew 31.7% year on year to 35,122 million yen and profit rose 41.0% year on year to 1,236 million yen.
As the demand for used housing grew, the strategic increase of inventory turned out to be effective and the sales of used condominiums were very favorable. In addition, the rise in average selling price per unit contributed, and sales and profit increased considerably.

*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 March 2026, the company holds 950 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 2.8% year on year to 30,969 million yen and profit rose 12.2% year on year to 3,101 million yen.
The sales from commissioned construction of rental housing, etc. were healthy, compensating for the decrease in the number of delivered rental apartment buildings for individual investors. The number of rental apartment buildings for individual investors ordered and to be delivered at the end of the fiscal year was 106, exceeding the number 95 at the end of the previous year. Namely, they receive a healthy number of orders. The profit in this segment increased thanks to the improvement of profitability.

* 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 March 2026, 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 company-owned properties and 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 9.3% year on year to 33,864 million yen, and profit increased 13.4% year on year to 4,452 million yen.
The number of managed properties as of the end of March 2026 stood at 40,464, up 2,434 from the end of the previous fiscal year, and the number of rental apartment buildings for seniors with nursing-care services was 285, up 15 from the end of the previous fiscal year, showing a steady growth. As a result, both sales and profit increased. Among them, the number of rental apartments for seniors with nursing-care services owned and managed by the company increased by 2 buildings (88 units) from the end of the previous fiscal year to 51 buildings (2,079 units), so the revenue from this business has increased steadily.

*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 March 2026, the company boasts operating 285 affordable rental apartment buildings for seniors with nursing-care services and managing 9,480 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 12.5% year on year to 1,416 million yen, while profit decreased 89.0% year on year to 10 million yen.
Sales were almost unchanged from the previous fiscal year, but due to the decline in profitability and internal sales caused by the skyrocketing of material prices, etc., profit dropped.

* 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 24.3% year on year to 221 million yen, and profit increased 23.1% year on year to 163 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 fourth quarter (January - March)

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

In the fourth quarter (January to March), sales and profit declined year on year, mainly due to the decrease of freely designed homes delivered. However, the year-end order backlog for freely designed homes was up 3.5 billion yen from the end of the previous fiscal year. Accordingly, the above decrease is due to the difference in timing of delivery and temporary, so there is no significant change in the trend of business performance.

In the second half of the fiscal year, sales grew, but profit dropped year on year.

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 fiscal year ended March 2026 stood at 67,839 million yen, up 12.8% year on year. The major segments of residential properties for sale, housing distribution, and effective land utilization all performed well. In particular, in the housing distribution segment, they kept receiving a healthy number of orders, and order backlog increased significantly by 64.6% year on year. In the segment of residential properties for sale, the order backlog for condominiums dropped 13.5% year on year due to the delivery of completed large-scale properties in April 2025, but the number of orders for freely designed homes is healthy, so overall performance is favorable.

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 March 2026 stood at 193,040 million yen, up 9,830 million yen from the end of the previous fiscal year. The major factors in increasing assets were cash & deposits, real estate for sale, buildings/structures, land, investment securities, long-term deposits, etc. The major factors in increasing liabilities or net assets were accounts payable, electronically recorded obligations, short-term debts, advances received, long-term debts, retained earnings due to the posting of profit attributable to owners of parent, etc. Inventory assets were composed of real estate for sale amounting to 35,948 million yen (28,264 million yen as of the end of the previous fiscal year), real estate for sale in process amounting to 29,208 million yen (29,093 million yen as of the end of the previous fiscal year), real estate to be developed amounting to 35,265 million yen (36,475 million yen as of the end of the previous fiscal year).
Inventory real estate increased 6.5 billion yen from the end of the previous fiscal year. This is mainly because the amount of used housing increased 4.5 billion yen and temporarily held buildings in the effective land utilization business grew 2.1 billion yen. In addition, in the businesses of detached homes, used housing, and effective land utilization, where they received a healthy number of orders, procurement was healthy, increasing inventory. Condominiums in stock decreased due to the delivery of completed large-scale properties, but the inventory in the entire segment of residential properties for sale was unchanged from the previous fiscal years, so the number of detached homes and condominium units for sale in stock as of the end of the fiscal year ended March 2026 stood at 2,011, which can cover orders for about 2 years. The number of used residential properties in stock to be ordered is 499, so it is sufficient for dealing with orders for about 5 months.
The number of buildings in stock in the effective land utilization business is 285. Among them, 91 buildings are for ownership for a certain period of time. Excluding this, 194 buildings are in stock for sale (of these, 89 buildings in stock that are still to be ordered), it is sufficient for dealing with orders for about 8 months.

* Units: million yen

Regarding cash flows, the cash inflow from operating activities grew due to 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 non-current assets, etc., so the deficit of free cash flow also shrank. On the other hand, the cash inflow from financial activities shrank, due to the decrease in the increment in short-term debt and the augmentation of expenditure for repaying long-term debt. Accordingly, the balance of cash and cash equivalents as of the end of the period dropped 1.8% year on year. The year-end balance of cash and cash equivalents remained above 20 billion yen like in the previous fiscal year.

A cash inflow of 8.9 billion yen from operating activities was posted, as they secured pretax net income unchanged from the previous fiscal year. Inventory assets increased 6.5 billion yen in the balance sheet, but decreased 2.1 billion yen in the cash flow statement. This is because some used assets worth 8.6 billion yen out of tangible fixed assets were transferred to inventory assets (changing the purposes of owning them from ownership to sale). A cash outflow of 13.5 billion yen from investment activities was posted. This is mainly due to the acquisition of used assets and the acquisition of rental apartments for seniors with nursing-care services. There was a cash inflow of 4.2 billion yen from financing activities, resulting from procured funds for inventory assets 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 increase recurring revenues, they have acquired more rental apartments for seniors with nursing-care services and already occupied used condominium units (used assets). They actively reshuffle used assets while keeping the number of units they hold unchanged.

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 2019 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.

3-8 Recent topics

◎ The company was recognized as a “Sports Yell Company 2026” with the silver certification by the Japan Sports Agency.
On January 30, 2026, the company was certified as a “Sports Yell Company 2026” with the silver certification. This marks the company’s seventh consecutive year of certification; the “silver” certification is awarded when the cumulative certification period ranges from 7 to 9 years. The corporate group conducts various initiatives to help all employees raise their awareness of health and maintain their physical and mental well-being, and promotes opportunities to engage in physical activity to help employees adopt healthy lifestyle habits on a daily basis.

◎ Ranked No. 1 in both “Ready-built House Builders in Kinki Region” and “Ready-Built House Builders in Osaka, Kinki Region” Categories
In the “2026 ORICON Customer Satisfaction® Survey,” the company was awarded first place in both the “2026 ORICON Customer Satisfaction® Survey: Ready-built House Builders in Kinki Region” and the “2026 ORICON Customer Satisfaction® Survey: Ready-built Bouse Builders in Osaka, Kinki Region” for the sixth consecutive year. This marks the company’s sixth consecutive year as the overall No. 1 in the Kinki region and its seventh consecutive year as the No. 1 in Osaka Prefecture. The company received exceptionally high ratings, ranking top across all ten evaluation categories.

◎ Recognized as a “2026 Health and Productivity Management Outstanding Organization—Large Enterprise Category (White 500)”
On March 9, 2026, the company received its ninth consecutive recognition in the “2026 Health and Productivity Management Outstanding Organization—Large Enterprise Category (White 500)” program, jointly recognized by the Ministry of Economy, Trade and Industry and the Japan Health Conference. By approaching employee health management from a managerial perspective and working to promote health, the company aims to improve productivity and retain human resources, thereby enhancing business performance and corporate value.

◎ Received the Excellent Company for Cancer Control Promotion Award
On March 1, 2026, the company received the “Excellent Company for Cancer Control Promotion” award from the Ministry of Health, Labor and Welfare for four consecutive years—marking its fourth award. The company conducts regular health checkups during working hours and keep having 100% of employees undergo the checkups. These regular health checkups include tests beyond the legal requirements, such as screening for colorectal cancer, the ultrasound test for breast cancer, tumor markers, testing for Helicobacter pylori which can cause stomach cancer, NT-proBNP testing, and CA19-9 testing to screen for pancreatic, bile duct, and gallbladder cancers. Furthermore, in April 2026, the company introduced abdominal ultrasound examinations and lowered the age eligibility for fecal occult blood testing to expand the number of participants. The company also implemented a health checkup referral program that allows not only employees, but also their family members to receive the same health checkup package.

◎ Expansion of the Shareholder Benefits Program
The company considers its shareholder benefits program to be one of the key measures of shareholder returns that enhance corporate value. With the aim of encouraging more shareholders to continue holding the company’s shares over the medium to long term, the company has expanded its shareholder benefits program, with the record date being March 31, 2026.

(Taken from the reference material of the company)

◎ Installed a corporate advertising signboard on the rooftop of the “Dotonbori Fruits Tower Building”
On April 1, 2026, the company installed its corporate advertising signboard on the rooftop of the Dotonbori Fruit Tower Building. This signboard was installed on the rooftop of a building along Midosuji Avenue, visible from Namba's Dotonbori Ebisu Bridge. Ebisu Bridge is one of Osaka’s most iconic landmarks, with heavy pedestrian traffic throughout the day and night; it is frequently used as a filming location for television programs and for street interviews. As a result, the company believes there is a high possibility of the signboard appearing in television broadcasts, which will help increase public awareness of the company among a wider audience.

◎ Installed a corporate advertising signboard on Umeda Big Board No. 1
On April 1, 2026, the company installed its corporate advertising signboard on the Umeda Big Board No. 1. The Umeda Big Board No. 1 advertising space is a large signboard frame located inside the platform of Umeda Station on the Osaka Metro Midosuji Line. It was installed behind the second staircase after going down the stairs from the underground ticket gates on the Yodobashi Camera, Hankyu Railway, and Hankyu 3rd Avenue sides. The company believes that, since this location has extremely heavy pedestrian traffic—including businessmen heading toward Yodoyabashi and men and women of all ages​—it will help raise awareness of the company among a wider audience.

◎ The Company’s Condominium Project Received the “2025 Osaka Climate Change Countermeasures Award—Special Award”
On March 27, 2026, the company’s condominium project, “Charmant Fuji Park & Links,” received the “2025 Osaka Climate Change Countermeasures Award—Special Award (‘Cool’ Design Architecture Award),” presented by Osaka Prefecture. This award, established under a prefectural ordinance, recognizes properties demonstrating outstanding initiatives in mitigating the urban heat island effect. The company will continue to contribute to the realization of a sustainable society while striving to balance residents’ comfort and reduced environmental impact.

4. Fiscal Year ending March 2027 Earnings Estimates

4-1 Consolidated Earnings

*Units: million yen

The earnings forecast for the fiscal year ending March 2027 is still to be announced.
In the real estate industry, where the corporate group operates business, the prices of newly built properties are soaring as construction costs remain high, and there is concern over the further increases in material prices and distribution expenses due to the yen depreciation and the rise in oil prices, so it is still necessary to keep an eye on their effects on development costs. As there is a possibility that the interest rate hike will affect customers’ purchase capacity, so they recognize that it is necessary to carefully discern the sales environment. On the other hand, the used housing distribution market and the demand for rental are expected to be healthy, as the prices of newly built properties remain high.
Under these circumstances, the corporate group’s businesses of residential properties for sale and effective land utilization are expected to grow in the fiscal year ending March 2027 thanks to the delivery of more detached homes and rental apartment buildings for individual investors, and sales are projected to increase, because the property leasing and management business is forecast to grow stably and the sales environment surrounding the housing distribution business is expected to remain favorable. On the other hand, it is assumed in the forecast for all kinds of profits that the effect of sales growth will be offset somewhat by the augmentation of costs due to the rise in commodity prices derived from the trend of oil prices as well as the interest rate hike, which will be conducted about twice a year in the wake of the normalization of the financial policy. In addition, there are growing uncertainties over the trend of oil prices and the supply of petroleum-related products and housing materials due to the destabilization of the Middle East situation, and they may cause the fluctuations in material prices and a delay in procurement, so the corporate group is wary of the possibility that construction periods will be changed, affecting the timing of posting of sales and revenues. In this situation, it is currently difficult to rationally estimate the impact on their business performance, so they left the earnings forecast for the fiscal year ending March 2027 undetermined. Procurement leadtime has lengthened for some materials recently, but it has not hindered their business operation significantly, so sales and order backlog seem to be almost in line with the forecast. As soon as it becomes possible to forecast business results, they will disclose the earnings forecast.
They plan to pay 32 yen/share (an interim dividend of 16 yen/share and a year-end dividend of 16 yen/share), unchanged from the previous fiscal year.

4-2 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)

4-3 Dividends and shareholder benefits

◎ Dividend

* The payout ratio in FY 3/27 will be disclosed as soon as it becomes possible to estimate it.

◎ 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.

* The benefits for long-term shareholders will be provided to shareholders holding 3,000 or more shares for 3 or more years. The shareholders holding 3,000 or more shares for 3 or more years mean shareholders holding 3,000 or more shares written or recorded in the company’s shareholder register as of the last day of March or September with the same shareholder number 7 or more times in a row.

4-4 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

In the fiscal year ended March 2026, sales grew 11.6% year on year and ordinary income rose 0.1% year on year. Sales exceeded 130 billion yen for the first time, and operating income and ordinary income hit a record high, exceeding the forecasts for the initial fiscal year of the medium-term management plan. Sales grew year on year in all business segments, so healthy sales have been confirmed. On the other hand, it is a shame that profitability declined. Gross profit margin was 15.2%, down 0.6 points from the previous fiscal year. This is mainly because profit margin declined for some condominiums for sale, as they posted the sale of large undeveloped land with a high profitability in the previous fiscal year and set prices for sales strategies. In addition, costs rose due to the augmentation of personnel expenses and interest paid. For the following fiscal year ending March 2027, they refrained from announcing the initial forecast, because it is difficult to reasonably estimate the effects of fluctuations in material prices and a delay in procurement, as there are uncertainties over oil prices and the supply of materials amid the tense Middle East situation. As soon as it becomes possible to forecast business results, they will disclose the earnings forecast. Under these circumstances, year-end order backlog, which is a leading indicator of sales, hit a record high. The increase in order backlog is driven by the growth of sales of freely designed housing, used condominiums, commissioned construction of rental housing, etc., rental apartment buildings for individual investors, etc., so sales are expected to grow stably also in the fiscal year ending March 2027. On the other hand, it is assumed in the forecast for all kinds of profits that the effect of sales growth will be offset somewhat by the augmentation of costs due to the rise in commodity prices derived from the trend of oil prices as well as the interest rate hike, which will be conducted about twice a year in the wake of the normalization of the financial policy. In addition, there are growing uncertainties over the trend of oil prices and the supply of petroleum-related products and housing materials due to the destabilization of the Middle East situation, and they may cause the fluctuations in material prices and a delay in procurement, so the corporate group is wary of the possibility that construction periods will be changed, affecting the timing of posting of sales and revenues. It is noteworthy how much they can secure profitability by dealing with the order backlog accumulated through corporate efforts without trouble.
The medium-term management plan, which will end in the fiscal year ending March 2028, is ongoing. How much they can exceed the numerical goals set in the medium-term management plan depends on order backlog and inventory assets, which are leading indicators of sales. It has been confirmed, from the financial results in the fiscal year ended March 2026, that order backlog and inventory real estate have been increasing steadily in the segments of freely designed homes, used condominiums, and rental apartment buildings for individual investors. It is noteworthy whether they can increase order backlog and inventory assets further in the following first quarter.

<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 June 30, 2026

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.

(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. They make efforts to improve the supervisory function of the Board of Directors and conduct lively discussions based on the advice, etc. of Outside Directors and swiftly make decisions with a collegial system.
Each Director engages in the business execution of the company in accordance with laws, regulations, the articles of incorporation, the regulations for the Board of Directors, etc. The Representative Director represents the company, and manages all kinds of business execution.

(3) Corporate Auditors and the Board of Corporate Auditors
The company has adopted a corporate auditor system. The Board of Corporate Auditors consists of multiple Corporate Auditors, including one full-time Corporate Auditor (Mr. Hitoshi Kawade) and two Outside Corporate Auditors (Mr. Shinsuke Takatani and Mr. Inao Harato). The company holds a meeting once a month in principle and an extraordinary meeting when necessary in accordance with the regulations for the Board of Auditors. The Board of Auditors receives reports on important matters regarding audits from Directors and relevant departments, holds discussions, produces audit reports, appoints Full-time Auditors, and makes resolutions regarding auditing policies, plans, etc.
Each Corporate Auditor attends meetings of the Board of Directors and department heads, to express their opinions. The Internal Audit Office and accounting auditors witness audits, exchange information, etc. to examine the appropriateness, efficiency, etc. of Directors’ business execution from various aspects, for monitoring business administration.

(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 (including the English versions), 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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Updated on May 1, 2026