Interim report
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CCoonnssoolliiddaatteedd FFiinnaanncciiaall RReessuullttss ffoorr tthhee SSiixx MMoonntthhss EEnnddeedd JJuunnee 3300,, 22002266 ((JJaannuuaarryy 11,, 22002266 –– JJuunnee 3300,, 22002266)) *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, 2026 <under Japanese GAAP> July 28, 2026 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 Semi-Annual Securities Report to be filed on: August 4, 2026 Planned dividends payment date: September 3, 2026 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, 2026 (January 1, 2026 to June 30, 2026) (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, 2026 416,596 38.8 80,313 7.0 70,861 6.4 49,978 11.3 June 30, 2025 300,081 46.4 75,055 8.8 66,547 2.6 44,893 1.7 Note: Comprehensive income: Six months ended June 30, 2026: ¥60,659 million [27.5%] Six months ended June 30, 2025: ¥47,561 million [(9.0)%] EPS (Net income per share) Diluted EPS Six months ended Yen Yen June 30, 2026 65.82 65.82 June 30, 2025 59.06 – (2) Consolidated Financial Position Total assets Net assets Equity ratio BPS (Net assets per share) As of Million yen Million yen % Yen June 30, 2026 3,592,508 980,346 26.3 1,247.52 December 31, 2025 3,506,068 939,180 26.0 1,202.76 Reference: Equity: June 30, 2026: ¥947,431 million, December 31, 2025: ¥913,279 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, 2025 – 28.50 – 33.50 62.00 Fiscal year ending December 31, 2026 – 33.50 Fiscal year ending December 31, 2026 (Planned) – 33.50 67.00 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, 2026 (January 1, 2026 to December 31, 2026) (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, 2026 – – 210,000 12.4 185,000 6.9 121,000 5.8 159.34 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. The Company has not provided a forecast of its operating revenue due to limited visibility at this stage. The Company will disclose this information promptly once a reasonable estimate can be made. * Notes (1) Significant Changes in the Scope of Consolidation during this Period: Yes Newly included: Three: (company name) Hamakaze Property Godo Kaisha, HistoRy Godo Kaisha, SALOWIN Co., Ltd. Excluded: Two: (company name) Shoubu Property Godo Kaisha, HULIC Biz Frontier Co., Ltd. (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, 2026) 767,907,735 (as of December 31, 2025) 2) Number of treasury shares as of the end of each period 8,458,250 (as of June 30, 2026) 8,588,006 (as of December 31, 2025) 3) Average number of outstanding shares for each period (consolidated cumulative period) 759,293,840 (six months ended June 30, 2026) 760,007,814 (six months ended June 30, 2025) * 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, 2026, leasing income from real estate was stable due to 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, 2026. As a result, operating revenue was ¥ 416,596 million (increased ¥116,515 million or 38.8% compared with the same period of the previous fiscal year, hereinafter “YoY”), operating profit was ¥ 80,313 million (increased ¥5,258 million or 7.0% YoY), ordinary profit was ¥ 70,861 million (increased ¥4,314 million or 6.4% YoY) and profit attributable to owners of parent was ¥49,978 million (increased ¥5,085 million or 11.3% 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 acquires well-located properties with the aim of building a competitive leasing portfolio in response to diverse needs in the real estate market. As of June 30, 2026, the Group owns and manages approximately 250 buildings and properties (excluding real estate for sale) , amounting to approximately 1, 260,000 square meters of floor space, located mainly near train stations in Tokyo’s 23 wards and conducts its real estate leasing business using this leasing portfolio. In addition, in order to further enhance earnings capacity, the Group achieves higher leasing income through development and redevelopment projects and generates stable leasing income, while also engaging in real estate acquisition and sales, includi ng real estate value-added businesses. New acquisitions (non -current assets) during six months ended June 30 , 2026 included Hulic Kamiyacho Building ( partial) (Minato-ku, Tokyo), Hulic Kudan Building (land) (Chiyoda-ku, Tokyo), Sapporo network center (Kita-ku, Sapporo-shi), and others. In development and reconstruction business (non -current assets), QUARTZ SHINSAIBASHI (Chuo-ku, Osaka-shi) was completed in March 2026. In addition, Jiyugaoka 1-29 Redevelopment Project (Meguro -ku, Tokyo), (tentative name) Ginza 8 -chome 9-11, 12 Development Project (Chuo -ku, Tokyo), (tentative name) Shiohama 2 -chome Development Proje ct Phase I (Koto-ku, Tokyo), (tentative name) Aoyama Building Reconstruction Project (Minato -ku, Tokyo) , (tentative name) G8 Development Project (Chuo-ku, Tokyo) , (tentative name) Ginza 5 -chome Development Project (Chuo -ku, Tokyo), (tentative name) Ginza 6-chome Miyuki St. Development Project (Chuo-ku, Tokyo), Ginza 7-chome Showa St. 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, new acquisitions including East Net Building (Koto-ku, Tokyo), and the Square Hotel GINZA (Chuo-ku, Tokyo), etc. were made, and properties including Hulic Minatomirai (Naka-ku, Yokohama-shi), and Hulic Fuchu Tower (Fuchu-shi, Tokyo), etc. were sold. As described above, the segment operations progressed as planned because leasing income from real estate was stable due to completion and 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 , 2026. As a result, operating revenue in this business segment totaled ¥349,630 million (increased ¥92,295 million or 35.8% YoY) and operating profit was ¥87,253 million (increased ¥7,540 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 ¥2,058 million (increased ¥92 million or 4.6% YoY) and operating profit was ¥662 million (increased ¥105 million or 18.8% 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.
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3 During six months ended June 30, 2026, ADR (Average Daily Rates) increased due to robust inbound demand , and sales from newly opened facilities have been added. As a result, operating revenue in this business segment was ¥31,579 million (increased ¥3,635 million or 13.0% YoY) and operating profit was ¥2,700 million (increased ¥47 million or 1.8% 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. Also, Riso Kyoiku Group Co., Ltd., one of the Company’s consolidated subsidiaries, operates and manages children education services, etc. In addition, Hulic Energy Solution Co., Ltd., a consolidated subsidiary of the Group, conducts environmental and infrastructure-related businesses, including the development and management of renewable energy power plants and storage systems, as well as retail electricity operations. Koken Boring Machine Co., Ltd., which became a consolidated subsidiary of the Group in 2025, is engaged in the manufacturing and sales of boring equipment and other related equipment, as well as construction services. Cook Deli, Inc., which also beca me a consolidated subsidiary in 2025, is engaged in the planning, manufacturing, and sales of ready-to-eat meals for senior living. As a result, operating revenue was ¥39,389 million (increased ¥20,370 million or 107.1% YoY) and operating loss was ¥2,459 million (operating loss for the same period of the previous fiscal year was ¥52 million). As a special item for the six months ended June 30, 2026, additional goodwill amortization of ¥5,129 million triggered by share price fluctuations of Riso Kyoiku Group Co., Ltd. was recorded. Excluding this special item, operating profit amounted to ¥2, 669 million (operating loss for the same period of the previous fiscal year was ¥52 million). (2) Overview of the Quarterly Consolidated Financial Position 1) Changes in Consolidated Financial Position <Assets> Total assets as of June 30, 2026 was 3,592,508 million, increased by ¥86,440 million from December 31, 2025. Against the backdrop of sustained inflation and rising rents, further activation of the real estate transaction market, and increasing construction costs, the Group aims to maximize leasing profits, gains on property sales, and consolidated profits through further sophistication and efficiency improvements in its real estate business. As for real estate investment business, the Group invests in highly liquid assets and inflation-resilient assets with expected rental growth. In addition, as for real estate development business, the Group is engaged in building a high-quality portfolio of fixed assets, promoting the growth of the Group’s REITs and funds (through increases in AUM), and developing assets for new businesses. Changes in amount of major items are as follows. ● Cash and deposits: Increased ¥25,113 million ● Operational investment securities: Increased ¥31,275 million (Acquisition of operational investment securities, redemption proceeds of investment, etc.) ● Land: Decreased ¥15,878 million (Acquisition of properties, transfer to real estate for sale, etc.) ● Construction in progress: Decreased ¥25,250 million (Progress of redevelopment and development projects, completion of properties) <Liabilities> Total liabilities as of June 30, 2026 was ¥2,612,162 million, increased ¥45,274 million from December 31, 2025. This was mainly attributable to financing carried out for capital investment and the like. The balance of borrowings was ¥1,665,236 million, which included ¥50,060 million non -recourse borrowings owed by consolidated SPCs. 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, 2026 was ¥980,346 million, increased ¥41,166 million from December 31, 2025. Total shareholders’ equity was ¥853,561 million, increased ¥24,196 million from December 31, 2025, 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 ¥ 93,870 million, increased ¥9,955 million from December 31, 2025, due mainly to an increase in foreign currency translation adjustments attributable to the weakening of the yen and 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, 202 6, cash and cash equivalents amounted to ¥1 55,867 million as a result of an increase of ¥155,752 million through operating activities, a decrease of ¥200,165 million through investing activities and an increase of ¥69,509 million through financing activities. Million yen Six months ended June 30, 2026 2025 Cash flows from operating activities 155,752 47,195 Cash flows from investing activities (200,165) (220,580) Cash flows from financing activities 69,509 208,721 Cash and cash equivalents at end of period 155,867 169,585 Cash flows in each activity and the major contributing factors during six months ended June 30, 2026 were presented as follows. <Cash flows from operating activities> Cash flows from operating activities was ¥ 155,752 million ( increased ¥108,556 million YoY). This was mainly attributable to ¥71,928 million in profit before income taxes with the main factors of leasing income from real estate and sales of real estate for sale, ¥56,912 million of a decrease in real estate for sale, ¥ 37,140 million of an decrease in operational investment securities, and ¥3 2,945 million of income taxes paid. <Cash flows from investing activities> Cash flows from investing activities was negative ¥200,165 million (decreased ¥20,414 million YoY). This was mainly attributable to portfolio reshuffling, development and reconstruction aimed at building a highly competitive leasing portfolio. <Cash flows from financing activities> Cash flows from financing activities was ¥ 69,509 million (decreased ¥1 39,212 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 the six months ended June 30, 2026, 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, 2026.
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5 2. Consolidated Financial Statements (Unaudited) (1) Quarterly Consolidated Balance Sheets (Unaudited) (Million yen) Item As of June 30, 2026 December 31, 2025 ASSETS Current assets Cash and deposits 156,197 131,083 Notes receivable – trade, Notes and accounts receivable, and contract assets 25,081 22,745 Operational investment securities 109,556 78,280 Merchandise and finished goods 3,295 3,489 Work in process 409 453 Real estate for sale 382,954 374,322 Real estate for sale in process 45,951 46,683 Costs on construction contracts in progress 0 47 Raw materials and supplies 1,008 956 Other 18,749 28,515 Allowance for doubtful accounts (65) (50) Total current assets 743,139 686,528 Non-current assets Property, plant and equipment Buildings and structures, net 281,737 277,319 Machinery, equipment and vehicles, net 25,433 20,931 Land 1,530,261 1,546,139 Construction in progress 96,744 71,494 Other, net 12,251 11,489 Total property, plant and equipment 1,946,428 1,927,374 Intangible assets Goodwill 131,060 126,209 Leasehold interests in land 91,676 91,250 Other 44,308 41,362 Total intangible assets 267,045 258,822 Investments and other assets Investment securities 495,637 499,499 Guarantee deposits 51,224 56,411 Deferred tax assets 4,245 4,116 Net defined benefit asset 309 295 Other 82,665 71,284 Allowance for doubtful accounts (10) (7) Total investments and other assets 634,071 631,600 Total non-current assets 2,847,545 2,817,797 Deferred assets Total deferred assets 1,824 1,741 Total assets 3,592,508 3,506,068
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6 (Million yen) Item As of June 30, 2026 December 31, 2025 LIABILITIES Current liabilities Short-term borrowings 179,250 209,304 Short-term bonds payable 100,817 119,726 Current portion of bonds payable 30,060 60,060 Accrued expenses 10,648 8,193 Income taxes payable 28,621 32,518 Advances received 11,514 12,509 Provision for bonuses 1,830 1,690 Provision for bonuses for directors (and other officers) 239 537 Other provisions 17 48 Other 47,475 46,122 Total current liabilities 410,475 490,711 Non-current liabilities Bonds payable 479,194 424,070 Long-term borrowings 1,485,986 1,398,092 Deferred tax liabilities 102,850 107,248 Provision for share awards 4,031 4,378 Net defined benefit liability 5,083 5,311 Long-term guarantee deposits 108,413 120,417 Other provisions 60 56 Other 16,067 16,602 Total non-current liabilities 2,201,686 2,076,176 Total liabilities 2,612,162 2,566,887 NET ASSETS Shareholders' equity Share capital 111,609 111,609 Capital surplus 130,033 130,033 Retained earnings 618,233 593,937 Treasury shares (6,314) (6,215) Total shareholders' equity 853,561 829,364 Accumulated other comprehensive income Valuation difference on available-for-sale securities 90,347 85,176 Deferred gains or losses on hedges (962) (1,000) Foreign currency translation adjustment 4,248 (357) Remeasurements of defined benefit plans 236 96 Total accumulated other comprehensive income 93,870 83,915 New share acquisition rights 75 75 Non-controlling interests 32,839 25,825 Total net assets 980,346 939,180 Total liabilities and net assets 3,592,508 3,506,068
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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, 2026 2025 Operating revenue 416,596 300,081 Operating costs 275,613 179,940 Operating gross profit 140,983 120,141 Selling, general and administrative expenses 60,670 45,086 Operating profit 80,313 75,055 Non-operating income Interest income 567 263 Dividend income 2,552 2,367 Share of profit of entities accounted for using equity method 1,079 1,082 Termination of lease contracts 2,488 171 Other 751 549 Total non-operating income 7,439 4,434 Non-operating expenses Interest expenses 14,249 9,451 Other 2,642 3,490 Total non-operating expenses 16,891 12,942 Ordinary profit 70,861 66,547 Extraordinary income Gain on sale of investment securities 4,674 3,705 Gain on investments in silent partnership, etc. 731 318 Other 142 96 Total extraordinary income 5,547 4,120 Extraordinary losses Loss on retirement of non-current assets 834 1,217 Loss on reconstructions of buildings 1,809 228 Impairment losses 1,798 570 Other 38 3 Total extraordinary losses 4,480 2,019 Profit before income taxes 71,928 68,648 Income taxes - current 29,120 23,672 Income taxes - deferred (7,778) (104) Total income taxes 21,342 23,568 Net income before non-controlling interests 50,586 45,079 Profit attributable to non-controlling interests 608 186 Profit attributable to owners of parent 49,978 44,893
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8 Quarterly Consolidated Statements of Comprehensive Income (Unaudited) (Million yen) Item Six months ended June 30, 2026 2025 Net income before non-controlling interests 50,586 45,079 Other comprehensive income Valuation difference on available-for-sale securities 5,131 2,861 Deferred gains or losses on hedges 38 (520) Foreign currency translation adjustment 4,580 330 Remeasurements of defined benefit plans, net of tax 256 (45) Share of other comprehensive income of entities accounted for using equity method 65 (142) Total other comprehensive income 10,072 2,482 Comprehensive income 60,659 47,561 Comprehensive income attributable to Owners of parent 59,934 47,389 Non-controlling interests 725 172
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9 (3) Quarterly Consolidated Statements of Cash Flows (Unaudited) (Million yen) Item Six months ended June 30, 2026 2025 Cash flows from operating activities Profit before income taxes 71,928 68,648 Depreciation 11,037 9,385 Amortization of goodwill 9,116 3,518 Increase (decrease) in allowance for doubtful accounts 7 5 Increase (decrease) in provision for bonuses 139 234 Increase (decrease) in provision for bonuses for directors (and other officers) (298) (193) Increase (decrease) in provision for share awards 258 691 Increase (decrease) in other provisions (28) － Increase (decrease) in net defined benefit asset and liability 140 136 Interest and dividend income (3,119) (2,630) Interest expenses 14,249 9,451 Share of loss (profit) of entities accounted for using equity method (1,079) (1,082) Loss on retirement of non-current assets 834 1,217 Loss (gain) on sale of non-current assets (127) (59) Loss (gain) on sale of investment securities (4,673) (3,705) Loss (gain) on investments in silent partnership, etc. (731) (318) Decrease (increase) in trade receivables (2,934) 1,038 Decrease (increase) in real estate for sale 56,912 25,029 Decrease (increase) in operational investment securities 37,140 (21,580) Decrease (increase) in guarantee deposits 5,825 (3,984) Increase (decrease) in guarantee deposits received (10,570) 9,055 Decrease (increase) in other assets 13,657 (8,377) Increase (decrease) in other liabilities 42 (4,726) Subtotal 197,728 81,751 Interest and dividends received 3,883 4,210 Interest paid (12,914) (8,766) Income taxes refund (paid) (32,945) (30,000) Cash flows from operating activities 155,752 47,195 Cash flows from investing activities Payments into time deposits (210) (12) Proceeds from withdrawal of time deposits 310 33 Purchase of property, plant and equipment (137,138) (165,038) Purchase of intangible assets (1,055) (10,210) Proceeds from sale of non-current assets 234 155 Purchase of investment securities (43,392) (82,281) Proceeds from sale of investment securities 5,745 4,292 Proceeds from redemption of investment securities 624 44,293 Purchase of shares of subsidiaries resulting in change in scope of consolidation (16,188) (232) Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation 1,831 － Loan advances (4,408) (2,580) Proceeds from collection of loans receivable 379 2 Other, net (6,895) (9,003) Cash flows from investing activities (200,165) (220,580)
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10 Item Six months ended June 30, 2026 2025 Cash flows from financing activities Net increase (decrease) in short-term borrowings (2,785) (164,451) Net increase (decrease) in short-term bonds payable (19,761) 129,315 Proceeds from long-term borrowings 242,760 440,392 Repayments of long-term borrowings (157,879) (110,622) Proceeds from issuance of bonds 84,678 59,521 Redemption of bonds (60,030) (120,000) Purchase of treasury shares (704) (3,121) Proceeds from sale of treasury shares － 0 Dividends paid (25,683) (21,466) Proceeds from share issuance to non-controlling interests 10,073 1,487 Dividends paid to non-controlling interests (834) (1,017) Other, net (325) (1,315) Cash flows from financing activities 69,509 208,721 Foreign currency translation difference on cash and cash equivalents 116 (76) Net increase (decrease) in cash and cash equivalents 25,212 35,260 Cash and cash equivalents at beginning of period 130,655 134,326 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation － (1) Cash and cash equivalents at end of period 155,867 169,585
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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, 2026 (from January 1, 2026 to June 30, 2026) 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 346,116 2,058 31,369 379,544 37,052 416,596 － 416,596 Inter-segment 3,514 － 209 3,723 2,337 6,061 (6,061) － Total 349,630 2,058 31,579 383,268 39,389 422,657 (6,061) 416,596 Segment profit 87,253 662 2,700 90,616 (2,459) 88,156 (7,843) 80,313 Notes: 1. The category of “Others” included business s egments that were not included in the reportable segments, such as general construction, design / construction management, child education business, boring equipment -related business and ready-to-eat meals business for senior living, etc. 2. Adjustment of segment profit of negative ¥7,843 million include d elimination of intersegment transactions of ¥600 million and corporate expenses of negative ¥8,443 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.
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12 II. 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 79,713 557 2,652 82,923 (52) 82,871 (7,816) 75,055 Notes: 1. The category of “Others” included business segmen ts 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 of negative ¥7,816 million include d 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 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.