Interim report
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CCoonnssoolliiddaatteedd FFiinnaanncciiaall RReessuullttss ffoorr tthhee SSiixx MMoonntthhss EEnnddeedd JJuunnee 3300,, 22002255 ((JJaannuuaarryy 11,, 22002255 –– JJuunnee 3300,, 22002255)) *This document is an English translation of a statement written initially in Japanese. The original Japanese should be considered the primary version. (TSE Code: 3003) Disclaimer Regarding Forward-Looking Statements The forward-looking statements, including forecasts of performance of Hulic and its Group companies, contained in these materials are based on information currently available to the Hulic management and on certain assumptions deemed to be reasonable. Actual business and other results may vary substantially due to various factors.
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Consolidated Financial Results for the Six Months Ended June 30, 2025 <under Japanese GAAP> July 28, 2025 Name of company listed: Hulic Co., Ltd. Stock exchange listing: Tokyo (Prime Market) Code number: 3003 URL: https://www.hulic.co.jp/en/ Representative: Takaya Maeda, President, Representative Director Contact: Mayumi Naruse, Managing Officer, General Manager of the Corporate Communications & Investor Relations Department and the Corporate Sustainability Department E-mail: naruse.mayumi@hulic.co.jp Quarterly Securities Report to be filed on: August 4, 2025 Planned dividends payment date: September 3, 2025 Preparation of supplementary material on quarterly financial results: Yes Holding of quarterly financial results presentation meeting: Yes (For institutional investors and analysts) 1. Consolidated Financial Results for the Six Months Ended June 30, 2025 (January 1, 2025 to June 30, 2025) (1) Consolidated Financial Results (cumulative) (Amounts indicated are displayed with amounts less than one million yen rounded off.) (Percentages indicate the YoY increase / decrease.) Operating revenue Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Million yen % Million yen % Million yen % Million yen % June 30, 2025 300,081 46.4 75,055 8.8 66,547 2.6 44,893 1.7 June 30, 2024 204,852 11.3 68,923 3.4 64,856 4.2 44,130 0.0 Note: Comprehensive income: Six months ended June 30, 2025: ¥47,561 million [(9.0)%] Six months ended June 30, 2024: ¥52,296 million [(10.5)%] EPS (Net income per share) Diluted EPS Six months ended Yen Yen June 30, 2025 59.06 – June 30, 2024 57.98 57.98 (2) Consolidated Financial Position Total assets Net assets Equity ratio BPS (Net assets per share) As of Million yen Million yen % Yen June 30, 2025 3,424,321 867,691 24.7 1,117.07 December 31, 2024 3,048,935 856,344 27.3 1,093.78 Reference: Equity: June 30, 2025: ¥848,219 million, December 31, 2024: ¥832,991 million 2. Dividends Annual dividends End of the 1st quarter End of the 2nd quarter End of the 3rd quarter Year-end Total Yen Yen Yen Yen Yen Fiscal year ended December 31, 2024 – 26.00 – 28.00 54.00 Fiscal year ending December 31, 2025 – 28.50 Fiscal year ending December 31, 2025 (Planned) – 28.50 57.00 Note: Revision to the planned dividends announced recently: N/A
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3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending December 31, 2025 (January 1, 2025 to December 31, 2025) (Percentages indicate the YoY increase / decrease.) Operating revenue Operating profit Ordinary profit Profit attributable to owners of parent EPS (Net income per share) Fiscal year ending Million yen % Million yen % Million yen % Million yen % Yen December 31, 2025 － － 178,000 8.9 164,000 6.2 108,000 5.5 142.16 Note: Revision to the forecasts of financial results announced recently: N/A The Company has a stable business structure centered on leasing operations, however, operating revenue (net sales) fluctuates substantially due to trends in the buying and selling of real estate for sale. Success or failure in this buying and selling of properties is affected significantly by economic conditions and the real estate market. As forecasting such trends is currently problematic, the Company has not provided a forecast of its operating revenue. The Company will disclose this information promptly once it becomes possible to make a forecast. * Notes (1) Significant Changes in the Scope of Consolidation during this Period: Yes Newly included: – Excluded: One: (company name) Ginza Rokuchome Property Godo Kaisha (2) Application of Special Accounting for Preparing Quarterly Consolidated Financial Statements: N/A (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Prior Period Financial Statements 1. Changes in accounting policies due to revisions of accounting standards, etc.: N/A 2. Changes in accounting policies due to other reasons: N/A 3. Changes in accounting estimates: N/A 4. Restatement of prior period financial statements: N/A (4) Number of Issued Shares (common shares) 1) Number of issued shares as of the end of each period (including treasury shares) 767,907,735 (as of June 30, 2025) 767,907,735 (as of December 31, 2024) 2) Number of treasury shares as of the end of each period 8,587,856 (as of June 30, 2025) 6,339,456 (as of December 31, 2024) 3) Average number of outstanding shares for each period (consolidated cumulative period) 760,007,814 (six months ended June 30, 2025) 761,077,871 (six months ended June 30, 2024) * Reviews of the Japanese-language originals of the attached Quarterly Consolidated Financial Statements by certified accountants or auditors: N/A * Disclaimer regarding forward-looking statements This document contains forward-looking statements about the performance of Hulic and its Group companies, based on management’s assumptions in light of current available information. In no way do these statements provide any assurance by Hulic of achieving such results. Actual results may differ substantially from these statements due to various factors.
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1 Table of Contents 1. Consolidated Business Results and Financial Position ································ ································ ······ 2 (1) Overview of the Quarterly Consolidated Business Results ································ ··························· 2 (2) Overview of the Quarterly Consolidated Financial Position ································ ························· 3 (3) Notes Regarding Forward-looking Statements such as Forecasts of Consolidated Financial Results ········· 4 2. Consolidated Financial Statements (Unaudited) ································ ································ ············· 5 (1) Quarterly Consolidated Balance Sheets (Unaudited) ································ ································ ·· 5 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income (Unaudited) ································ ································ ································ ······· 7 (3) Quarterly Consolidated Statements of Cash Flows (Unaudited) ································ ····················· 9 (4) Footnotes on the Quarterly Consolidated Financial Statements ································ ·················· 11 Segment Information ································ ································ ································ ···· 11
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2 1. Consolidated Business Results and Financial Position (1) Overview of the Quarterly Consolidated Business Results During six months ended June 30, 202 5, leasing income from real estate was stable due to the completion and acquisition of properties in the previous fiscal year and in the current fiscal yea r. In addition, sales of real estate for sale steadily progressed during six months ended June 30, 2025. As a result, operating revenue was ¥300,081 million (increased ¥95,229 million or 46.4% compared with the same period of the previous fiscal year, hereinafter “YoY”), operating profit was ¥ 75,055 million (increased ¥6,132 million or 8.8% YoY), ordinary profit was ¥ 66,547 million ( increased ¥ 1,691 million or 2.6% YoY) and profit attributable to owners of parent was ¥44,893 million (increased ¥762 million or 1.7% YoY). The business results for each segment were as follows. (Operating revenue for each segment includes inter-segment operating revenue and the balance of book-entry transfers.) <Real Estate> The Group’s core business is a leasing business that utilizes approximately 2 50 buildings and properties (excluding real estate for sale), amounting to approximately 1,280,000 square meters of floor space, located mainly in Tokyo’s 23 wards. From the perspective of restructuring the portfolio to achieve “high profit growth” and “stable core profit increase", we work to continuously reshuffle the portfolio to properties with competitive advantages that can adapt to environmental changes and promote carefully selected development projects. In addition, we work to acquire stable and continuous capital gains and asset management fees through diversifying exit strategies of properties to maximize the development margin as the completion of development projects starts in full swing. New acquisitions (non-current assets) during six months ended June 30, 2025 included Ario Nishiarai (partial) (Adachi-ku, Tokyo), Hulic Kamiyacho Building (Minato-ku, Tokyo), and others. In development and reconstruction business (non -current assets), (tentative name) Misato Logistics Development Project (Misato-shi, Saitama) , (tentative name) Ginza Building Reconstruction Project (Chuo -ku, Tokyo) , (tentative name) Sapporo Reconstruction Project II (Chuo -ku, Sapporo -shi), (tentative name) Shinsaibashi Project (Chuo -ku, Osaka -shi), Jiyugaoka 1 -29 Redevelopment Project (Meguro -ku, Tokyo) , (tentative name) Ginza 8 -chome 9 -11, 12 Development Project (Chuo -ku, Tokyo), (tentative name) Aoyama Building Reconstruction Project (Minato -ku, Tokyo) , (tentative name) Ginza 5 -chome Development Project (Chuo-ku, Tokyo), and (tentative name) Shinjuku 318 Development Project (Shinjuku -ku, Tokyo), etc. were proceeded as planned. In PPP (Public Private Partnership) business, projects including “Urban Renewal Step -Up Project (Shibuya Area) Shibuya 1-chome Area Joint Development Project” conducted by the Tokyo Metropolitan Government and the Shibuya City Government, etc. were proceeded as planned. As for real estate for sale, properties including Hulic Hiroo Building (Minato-ku, Tokyo), (tentative name) Ichigaya Development Project (Chiyoda-ku, Tokyo), and Hulic Shinjuku Building (partial) (Shinjuku-ku, Tokyo), etc. were sold. As described above, the segment operations progressed as planned because leasing income from real estate was firm and stable due to completion of properties a s well as acquisition of properties in the previous fiscal year and in the current fi scal year. In addition, sales of real estate for sale steadily progressed during six months ended June 30, 2025. As a result, operating revenue in this business segment totaled ¥ 257,335 million (increased ¥76,795 million or 42.5% YoY) and operating profit was ¥79,713 million (increased ¥6,874 million or 9.4% YoY). <Insurance Agency> Hulic Insurance Service Co., Ltd., one of the Company’s consolidated subsidiaries, serves as an insurance agency for both Japanese and foreign insurance companies operating in Japan and sells various insurance products to both corporate and indivi dual customers. Although a difficult business environment continues to surround the insurance business industry, Hulic Insurance Service Co., Ltd. is pursuing expansion of this business, concentrating on corporate transactions, with a strategy of acquiring the business rights of existing non-life insurance agents. As a result, operating revenue in this business segment was ¥1,966 million (increased ¥74 million or 3.9% YoY) and operating profit was ¥557 million (decreased ¥29 million or 5.0% YoY). <Hotels / Ryokans> In Hotels / Ryokans business, as the Company’s consolidated subsidiaries, Hulic Hotel Management Co., Ltd. manages “THE GATE HOTEL” brand hotel series and “View Hotel” brand hotel series, while HULIC FUFU Co., Ltd. manages “FUFU” ryokan series. During six months ended June 30, 2025, ADR (Average Daily Rates) increased due to robust inbound demand , and we steadily captured active demand both domestically and internationally. As a result, operating revenue in this business segment was ¥27,943 million (increased ¥2,958 million or 11.8% YoY) and
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3 operating profit was ¥2,652 million (increased ¥1,119 million or 73.0% YoY). <Others> Hulic Build Co., Ltd., one of the Company’s consolidated subsidiaries, regularly takes orders of repair constructions, constr uctions of refurbishment at the end of lease contracts and interior fit -outs at the beginning of lease contracts from the Company’s existing properties. In addition, Riso Kyoiku Co., Ltd., one of the Company’s consolidated subsidiaries, operates and manages children education services, etc. As a result, operating revenue was ¥19,019 million (increased ¥14,536 million or 324.3% YoY) and operating loss was ¥52 million (the same period of the previous fiscal year: operating profit ¥187 million). (2) Overview of the Quarterly Consolidated Financial Position 1) Changes in Consolidated Financial Position <Assets> Total assets as of June 30, 2025 was ¥3,424,321 million, increased by ¥375,385 million from December 31, 2024. From the perspective of restructuring the portfolio to achieve “high profit growth” and “stable core profit increase", we work to continuously reshuffle the portfolio to properties with competitive advantages that can adapt to environmental changes and promote carefully selected development projects. In addition, the Group strives to provide support and backup as a sponsor to maintain and improve the long-term earnings of Hulic Reit, Inc. & Hulic Private Reit, Inc. and realize steady growth of their assets under management. Changes in amount of major items are as follows. ● Cash and deposits: Increased ¥35,237 million ● Land: Increased ¥87,316 million (Acquisition of properties, transfer to real estate for sale, etc.) ● Investment securities: Increased ¥43,011 million (Acquisition and sales of investment securities, an increase in unrealized gains of investment securities, etc.) <Liabilities> Total liabilities as of June 30, 2025 was ¥2,556,629 million, increased ¥364,038 million from December 31, 2024. This was mainly attributable to financing carried out for capital investment and the like. The balance of borrowings was ¥1,562,406 million, which included ¥34,830 million non -recourse borrowings owed by a consolidated SPC. Financing from financial institutions was operated stably at low cost thanks to the credit strength on the back of the Group’s high earnings level. <Net Assets> Total net assets as of June 30, 2025 was ¥867,691 million, increased ¥11,347 million from December 31, 2024. Total shareholders’ equity was ¥781,909 million, increased ¥12,732 million from December 31, 2024 , due mainly to an increase of retained earnings in profit attributable to owners of parent and a decrease of retained earnings in the cash dividend payment. Total accumulated other comprehensive income was ¥ 66,309 million, increased ¥2,495 million from December 31, 2024 , due mainly to an increase of valuation difference on available-for-sale securities due to an increase in unrealized gains of securities.
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4 2) Consolidated Cash Flows During six months ended June 30, 2025, cash and cash equivalents amounted to ¥169,585 million as of June 30, 2025 as a result of an increase of ¥47,195 million through operating activities, a decrease of ¥220,580 million through investing activities and an increase of ¥208,721 million through financing activities. Million yen Six months ended June 30, 2025 2024 Cash flows from operating activities 47,195 85,234 Cash flows from investing activities (220,580) (298,199) Cash flows from financing activities 208,721 240,431 Cash and cash equivalents at end of period 169,585 110,230 Cash flows in each activity and the major contributing factors during six months ended June 30, 2025 were presented as follows. <Cash flows from operating activities> Cash flows from operating activities was ¥47,195 million (decreased ¥38,039 million YoY). This was mainly attributable to ¥68,648 million in profit before income taxes with the main factors of leasing income from real estate and sales of real estate for sale, ¥25,029 million of a decrease in real estate for sale, ¥21,580 million of an increase in operational investment securities, and ¥30,000 million of income taxes paid. <Cash flows from investing activities> Cash flows from investing activities was negative ¥220,580 million (decreased ¥77,619 million YoY). This was mainly attributable to portfolio reshuffling, development and reconstruction carried out from the perspective of restructuring the portfolio to achieve “high profit growth” and “stable core profit increase". <Cash flows from financing activities> Cash flows from financing activities was ¥208,721 million (decreased ¥31,710 million YoY). This was mainly attributable to financing for above-mentioned portfolio reshuffling, development and reconstruction projects. (3) Notes Regarding Forward-looking Statements such as Forecasts of Consolidated Financial Results As the Company’s business performance for six months ended June 30, 2025 broadly proceeded according to plans, it has not made any changes to the forecasts of consolidated financial results for the fiscal year ending December 31, 2025.
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5 2. Consolidated Financial Statements (Unaudited) (1) Quarterly Consolidated Balance Sheets (Unaudited) (Million yen) Item As of June 30, 2025 December 31, 2024 ASSETS Current assets Cash and deposits 169,700 134,462 Notes and accounts receivable, and contract assets 13,156 14,194 Merchandise 218 225 Real estate for sale 365,294 354,961 Real estate for sale in process 54,992 49,425 Costs on construction contracts in progress 62 26 Supplies 477 472 Other 176,928 30,114 Allowance for doubtful accounts (25) (19) Total current assets 780,806 583,864 Non-current assets Property, plant and equipment Buildings and structures, net 242,160 243,489 Machinery, equipment and vehicles, net 19,852 17,848 Land 1,492,676 1,405,359 Construction in progress 68,150 45,782 Other, net 11,325 11,344 Total property, plant and equipment 1,834,165 1,723,825 Intangible assets Goodwill 113,762 117,160 Leasehold interests in land 81,330 70,843 Other 29,108 28,881 Total intangible assets 224,201 216,886 Investments and other assets Investment securities 463,499 420,487 Guarantee deposits 57,970 53,986 Deferred tax assets 3,920 3,867 Net defined benefit asset 209 197 Other 57,978 44,436 Allowance for doubtful accounts (7) (7) Total investments and other assets 583,571 522,967 Total non-current assets 2,641,938 2,463,680 Deferred assets Total deferred assets 1,576 1,391 Total assets 3,424,321 3,048,935
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6 (Million yen) Item As of June 30, 2025 December 31, 2024 LIABILITIES Current liabilities Short-term borrowings 279,045 359,719 Short-term bonds payable 159,613 29,909 Current portion of bonds payable 180,000 － Accrued expenses 7,120 5,867 Income taxes payable 23,130 27,725 Advances received 11,037 10,464 Provision for bonuses 1,197 962 Provision for bonuses for directors (and other officers) 188 382 Other 26,779 27,721 Total current liabilities 688,111 462,754 Non-current liabilities Bonds payable 324,010 444,000 Long-term borrowings 1,283,361 1,037,369 Deferred tax liabilities 92,199 89,978 Provision for share awards 3,842 3,151 Net defined benefit liability 4,870 4,652 Long-term guarantee deposits 114,002 104,947 Other 46,229 45,737 Total non-current liabilities 1,868,517 1,729,837 Total liabilities 2,556,629 2,192,591 NET ASSETS Shareholders' equity Share capital 111,609 111,609 Capital surplus 130,165 137,738 Retained earnings 546,349 522,922 Treasury shares (6,215) (3,094) Total shareholders' equity 781,909 769,176 Accumulated other comprehensive income Valuation difference on available-for-sale securities 68,208 65,506 Deferred gains or losses on hedges (1,038) (517) Foreign currency translation adjustment (743) (1,063) Remeasurements of defined benefit plans (115) (111) Total accumulated other comprehensive income 66,309 63,814 New share acquisition rights 75 75 Non-controlling interests 19,396 23,278 Total net assets 867,691 856,344 Total liabilities and net assets 3,424,321 3,048,935
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7 (2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income (Unaudited) (Million yen) Item Six months ended June 30, 2025 2024 Operating revenue 300,081 204,852 Operating costs 179,940 106,591 Operating gross profit 120,141 98,261 Selling, general and administrative expenses 45,086 29,337 Operating profit 75,055 68,923 Non-operating income Interest income 263 30 Dividend income 2,367 2,167 Share of profit of entities accounted for using equity method 1,082 52 Termination of lease contracts 171 677 Other 549 390 Total non-operating income 4,434 3,318 Non-operating expenses Interest expenses 9,451 6,207 Other 3,490 1,177 Total non-operating expenses 12,942 7,385 Ordinary profit 66,547 64,856 Extraordinary income Gain on sale of investment securities 3,705 5,445 Gain on investments in silent partnership, etc. 318 46 Other 96 53 Total extraordinary income 4,120 5,545 Extraordinary losses Loss on retirement of non-current assets 1,217 1,998 Loss on reconstructions of buildings 228 147 Impairment losses 570 31 Loss on step acquisitions － 2,792 Other 3 30 Total extraordinary losses 2,019 5,000 Profit before income taxes 68,648 65,400 Income taxes - current 23,672 21,333 Income taxes - deferred (104) (249) Total income taxes 23,568 21,083 Net income before non-controlling interests 45,079 44,317 Profit attributable to non-controlling interests 186 186 Profit attributable to owners of parent 44,893 44,130
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8 Quarterly Consolidated Statements of Comprehensive Income (Unaudited) (Million yen) Item Six months ended June 30, 2025 2024 Net income before non-controlling interests 45,079 44,317 Other comprehensive income Valuation difference on available-for-sale securities 2,861 8,484 Deferred gains or losses on hedges (520) (243) Foreign currency translation adjustment 330 0 Remeasurements of defined benefit plans, net of tax (45) (84) Share of other comprehensive income of entities accounted for using equity method (142) (177) Total other comprehensive income 2,482 7,978 Comprehensive income 47,561 52,296 Comprehensive income attributable to Owners of parent 47,389 52,109 Non-controlling interests 172 186
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9 (3) Quarterly Consolidated Statements of Cash Flows (Unaudited) (Million yen) Item Six months ended June 30, 2025 2024 Cash flows from operating activities Profit before income taxes 68,648 65,400 Depreciation 9,385 8,503 Increase (decrease) in allowance for doubtful accounts 5 14 Increase (decrease) in provision for bonuses 234 (31) Increase (decrease) in provision for bonuses for directors (and other officers) (193) (194) Increase (decrease) in provision for share awards 691 178 Increase (decrease) in net defined benefit asset and liability 136 57 Interest and dividend income (2,630) (2,198) Interest expenses 9,451 6,207 Share of loss (profit) of entities accounted for using equity method (1,082) (52) Loss on retirement of non-current assets 1,217 1,998 Loss (gain) on sale of non-current assets (59) (0) Loss (gain) on sale of investment securities (3,705) (5,445) Loss (gain) on investments in silent partnership, etc. (318) (46) Loss (gain) on step acquisitions － 2,792 Decrease (increase) in trade receivables 1,038 (1,658) Decrease (increase) in real estate for sale 25,029 21,817 Decrease (increase) in operational investment securities (21,580) － Decrease (increase) in guarantee deposits (3,984) (1,037) Increase (decrease) in guarantee deposits received 9,055 5,033 Decrease (increase) in other assets (4,859) 4,279 Increase (decrease) in other liabilities (4,726) 666 Subtotal 81,751 106,283 Interest and dividends received 4,210 3,431 Interest paid (8,766) (6,095) Income taxes paid (30,000) (18,384) Income taxes refund － 0 Cash flows from operating activities 47,195 85,234 Cash flows from investing activities Payments into time deposits (12) (2,232) Proceeds from withdrawal of time deposits 33 10 Purchase of property, plant and equipment (165,038) (244,711) Purchase of intangible assets (10,210) (4,723) Proceeds from sale of non-current assets 155 0 Purchase of investment securities (82,281) (53,195) Proceeds from sale of investment securities 4,292 6,603 Proceeds from redemption of investment securities 44,293 8,982 Purchase of shares of subsidiaries resulting in change in scope of consolidation (232) (8,508) Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation － 168 Loan advances (2,580) (47) Proceeds from collection of loans receivable 2 0 Other, net (9,003) (545) Cash flows from investing activities (220,580) (298,199)
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10 Item Six months ended June 30, 2025 2024 Cash flows from financing activities Net increase (decrease) in short-term borrowings (164,451) 13,856 Net increase (decrease) in short-term bonds payable 129,315 154,821 Proceeds from long-term borrowings 440,392 121,000 Repayments of long-term borrowings (110,622) (60,763) Proceeds from issuance of bonds 59,521 62,604 Redemption of bonds (120,000) (30,000) Purchase of treasury shares (3,121) (0) Proceeds from sale of treasury shares 0 － Dividends paid (21,466) (20,699) Proceeds from share issuance to non-controlling interests 1,487 － Dividends paid to non-controlling interests (1,017) (120) Other, net (1,315) (265) Cash flows from financing activities 208,721 240,431 Foreign currency translation difference on cash and cash equivalents (76) 0 Net increase (decrease) in cash and cash equivalents 35,260 27,466 Cash and cash equivalents at beginning of period 134,326 82,763 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation (1) － Cash and cash equivalents at end of period 169,585 110,230
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11 (4) Footnotes on the Quarterly Consolidated Financial Statements (Footnotes on the Assumption of Going Concern) N/A (Footnotes on Shareholders’ Equity in Case of Significant Changes) N/A (Footnotes on Segment Information, etc.) 【Segment Information】 I. Six months ended June 30, 2025 (from January 1, 2025 to June 30, 2025) 1. Information on operating revenue, profit or loss by reportable segment (Million yen) Reportable segment Others (Note 1) Total Adjustment (Note 2) Value recorded in the Quarterly Consolidated Statements of Income (Note 3) Real estate business Insurance agency business (subsidiary) Hotels / Ryokans (subsidiaries) Sub-total Operating revenue Outside customers 252,759 1,966 27,760 282,486 17,594 300,081 － 300,081 Inter-segment 4,575 － 183 4,758 1,424 6,182 (6,182) － Total 257,335 1,966 27,943 287,245 19,019 306,264 (6,182) 300,081 Segment profit or (loss) 79,713 557 2,652 82,923 (52) 82,871 (7,816) 75,055 Notes: 1. The category of “Others” included bu siness segments that were not included in the reportable segments, such as general construction, design / construction management, and child education business, etc. 2. Adjustment of segment profit or (loss) of negative ¥7,816 million included elimination of intersegment transactions of ¥570 million and corporate expenses of negative ¥8,386 million which were not distributed to reportable segments. Corporate expenses were expenses mainly related to general administrative departments that did not belong to reportable segments. 3. Segment profit or (loss) was adjusted with operating profit reported in the Quarterly Consolidated Statements of Income. 2. Information on impairment losses on non-current assets or goodwill for each reportable segment: The information was omitted because it was immaterial.
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12 II. Six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024) 1. Information on operating revenue, profit or loss by reportable segment (Million yen) Reportable segment Others (Note 1) Total Adjustment (Note 2) Value recorded in the Quarterly Consolidated Statements of Income (Note 3) Real estate business Insurance agency business (subsidiary) Hotels / Ryokans (subsidiaries) Sub-total Operating revenue Outside customers 175,852 1,892 24,843 202,588 2,263 204,852 － 204,852 Inter-segment 4,687 － 141 4,829 2,218 7,047 (7,047) － Total 180,539 1,892 24,984 207,417 4,482 211,899 (7,047) 204,852 Segment profit 72,839 587 1,532 74,959 187 75,146 (6,223) 68,923 Notes: 1. The category of “Others” included business segments that were not included in the reportable segments, such as general construction, design / construction management, etc. 2. Adjustment of segment profit of negative ¥6,223 million include d elimination of intersegment transactions of ¥323 million and corporate expenses of negative ¥6,546 million, which were not distributed to reportable segments. Corporate expenses were expenses mainly related to general administrative departments that did not belong to reportable segments. 3. Segment profit was adjusted with operating profit reported in the Quarterly Consolidated Statements of Income. 2. Information on impairment losses on non-current assets or goodwill for each reportable segment: The information was omitted because it was immaterial.