Latest financial results

In the current fiscal year, which is the first year of the medium-term management plan "RISE TO GROWTH 2026," the Group is promoting various measures based on the 7 Flags of Priority Strategy. In order to increase sustainable growth potential, during the first quarter of this consolidated cumulative period, we have been working to increase sales and profits by proposing added value for new work styles and office spaces that implement these work styles, and by conducting sales activities with a focus on increasing value.

In line with the new medium-term management plan, we have reorganized the "IT & Sharing Business" which was previously a reportable segment, and have changed the reportable segments to two: "Workplace Business" and "Equipment & Public Works-Related Business."

Sales increased 3,953 million yen (10.7%) year on year to 40,918 million yen.

• Workplace Business performed well, centered on renewal projects and office relocations to accommodate new hybrid work styles.
• In Equipment & Public Works-Related Business, although there was an expected drop in demand for equipment for public facilities such as display cases for museums and art galleries, which had been strong in the same period of the previous year, demand for equipment for research facilities remained strong, resulting in sales at the same level as the previous year.

Compared to the same period of the previous fiscal year, profit increased by 1,624 million yen (11.0%) to 16,372 million yen.

• In Workplace Business, despite the expected impact of soaring raw material prices, profits increased significantly due to improved profit margins due to increased sales and improved value provided.
• In Equipment & Public Works-Related Business, while the impact of rising raw material prices was anticipated, sales remained at the same level as the previous year due to increased demand for equipment for research facilities, increased sales from strengthened sales, and improved profit margins.

In addition to wage increases and hiring of specialized personnel as part of human capital investment, strategic expenditures for future leaps forward, such as strengthening IT infrastructure to promote digital transformation, were carried out as planned. In addition, sales increased 362 million yen (3.6%) year on year to 10,333 million yen due to the effect of controlling selling, general and administrative expenses, such as continued reductions in logistics costs through restructuring projects.

As a result of the above, operating income increased by 1,261 million yen (26.4%) year on year to 6,039 million yen.

• In Workplace Business, profits increased significantly due to the effect of increased sales and improved profit margins due to improved value provided.
• Equipment & Public Works-Related Business saw a significant increase in profits due to increased sales of equipment for research facilities and improved profit margins resulting from increased value provided.

Due to factors including foreign exchange gains recorded in the same period of the previous fiscal year, operating income decreased by 47 million yen (37.8%) year on year to 78 million yen.

Due to an increase in interest paid in line with an increase in borrowings, etc., net cash flow increased by 22 million yen (28.7%) compared to the same period of the previous year to 102 million yen.

As a result of the above, ordinary income increased by 1,191 million yen (24.7%) compared to the same period of the previous year to 6,015 million yen.

Compared to the same period last year, it remained at the same level of 0 million yen.

Due to the loss on disposal of fixed assets recorded in the same period of the previous fiscal year, etc., operating income decreased by 10 million yen (51.5%) year on year to 10 million yen.

As a result of the above, quarterly net income attributable to owners of parent increased by 804 million yen (24.4%) compared to the same period of the previous fiscal year to 4,101 million yen.

The performance by segment is as follows:

(Unit: million yen)