Latest financial results

In the current fiscal year, which marks the second year of our medium-term management plan "RISE TO GROWTH 2026," our group is promoting various measures based on our 7 Flags of Priority Strategy and ESG strategy. During this interim consolidated fiscal period, in order to enhance our sustainable growth potential, we have sought to further expand sales and profits by proposing new ways of working and office spaces that can implement those ways of working, and by conducting sales activities that focus on increasing value.

Sales increased by 6,733 million yen (9.3%) compared to the same period last year to 79,244 million yen. This marks the fourth consecutive interim period of increased sales and the third consecutive period of record-high sales.

• Workplace Business performed well, primarily due to renovation projects and office relocations geared towards new hybrid work styles.
• In Equipment & Public Works-Related Business, sales increased due to favorable performance of equipment for research facilities, despite the impact of delays in the start and completion of construction, mainly for logistics facilities, due to rising material prices.

Profit increased by 5,792 million yen (20.6%) compared to the same period of the previous fiscal year to 33,869 million yen.

• Workplace Business achieved an increase in profits due to improved profit margins resulting from increased revenue and improved value provided.
• In Equipment & Public Works-Related Business, although there was an impact of a decrease in sales of equipment for logistics facilities, etc., profits increased due to the effect of increased sales of equipment for research facilities and improved profit margins.

In addition to an increase in personnel expenses due to business expansion, strategic expenditures for future leaps, such as strengthening IT infrastructure to promote DX, were carried out as planned, resulting in an increase of 2,032 million yen (9.6%) compared to the same period of the previous year to 23,243 million yen.

As a result of the above, operating income increased by 3,759 million yen (54.8%) compared to the same period of the previous fiscal year to 10,625 million yen, marking a new record high for an interim period.

• Workplace Business achieved an increase in profits due to increased revenue and improved profit margins resulting from increased value provided.
• In Equipment & Public Works-Related Business, although there were delays in the start and completion of construction for logistics facilities, profits increased due to increased sales of research facility equipment and improved profit margins.

Due to a decrease in insurance income, etc., net income decreased by 26 million yen (8.6%) compared to the same period of the previous year to 280 million yen.

Due to an increase in interest payments due to an increase in borrowings, net cash flow increased by 72 million yen (21.7%) compared to the same period of the previous year to 408 million yen.

As a result of the above, ordinary income increased by 3,660 million yen (53.5%) compared to the same period of the previous fiscal year to 10,497 million yen.

Due to a decrease in gains on sales of fixed assets, etc., net sales decreased by 1,028 million yen (93.5%) compared to the same period of the previous year to 71 million yen.

Due to factors such as the provision for losses related to competition laws recorded in the same period of the previous fiscal year, operating profit decreased by 498 million yen (82.8%) to 103 million yen compared to the same period of the previous fiscal year.

As a result of the above, interim net income attributable to owners of parent increased by 1,873 million yen (36.8%) compared to the same period of the previous year to 6,960 million yen. This marks the sixth consecutive interim period of increased profits and the fourth consecutive period of record-high profits.

The performance by segment is as follows:

(Unit: million yen)

The balance of cash and cash equivalents (hereinafter referred to as "funds") at the end of this interim consolidated fiscal period was 24,054 million yen, an increase of 2,560 million yen compared to the end of the previous consolidated fiscal year.
The status of each cash flow and its factors for the current interim consolidated accounting period are as follows:

In the current business environment surrounding our company, securing human resources in anticipation of a decline in the working population and facilitating smooth internal communication are management issues that are attracting attention, and related demand is trending steadily due to growing interest in the state of offices.
Against this backdrop, sales in Workplace Business are expanding favorably, and operating profit is progressing smoothly in line with sales growth. Based on this, we are revising our consolidated financial forecasts for the full fiscal year ending December 2025 for sales, operating profit, ordinary profit, and net profit attributable to owners of parent.