Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Accounting Financial A Standards FASF Consolidated Financial Results for the First Three Months MEMBERSHIP August 7 , 2026 of the Fiscal Year Ending March 31 , 2027 < under Japanese GAAP > Company name : Listing : Tokyo Stock Exchange URL : https://katitas.co.jp/en Kazuhito Yokota , Director , General Manager of Administration Headquarter TEL : + 81-3-5542-3882 ( from overseas ) KATITAS Co. , Ltd. Securities code : 8919 Representative : Katsutoshi Arai , President and CEO Inquiries : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results presentation meeting : Yes Yes ( for institutional investors ) ( Millions of yen with fractional amounts discarded , unless otherwise noted ) 1. Consolidated financial results for the first three months of the fiscal year ending March 31 , 2027 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . Ordinary profit Profit attributable to owners of parent Net sales Operating profit Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 43,961 25.4 June 30 , 2025 35,063 12.4 5,562 4,331 28.4 5,418 29.0 3,678 28.7 39.4 4,199 39.3 2,857 39.5 Note : Comprehensive income Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : ¥ 3,678 million ¥ 2,857 million [ 28.7 % ] [ 39.5 % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 47.01 36.55 47.00 36.53 ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Reference : Equity Total assets Net assets Equity - to - asset ratio Millions of yen 100,397 93,245 Millions of yen 53,536 % 53.3 53,059 56.9 As of June 30 , 2026 : ¥ 53,536 million As of March 31 , 2026 : ¥ 53,059 million
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2. Dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 39.00 – 41.00 80.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 45.00 – 45.00 90.00 Note: Revisions to the forecasts of dividends most recently announced: None 3. Consolidated earnings forecasts for th e fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 86,700 19.7 10,700 18.7 10,500 19.5 7,300 21.9 93.30 Fiscal year ending March 31, 2027 177,400 16.8 21,000 14.9 20,000 12.3 14,000 12.3 178.93 Note: Revisions to the earnings for ecasts most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Application of special accounting for preparing quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement a. Changes in accounting policies in accordance with changes in accounting standards, etc.: None b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None d. Restatement: None (4) Number of issued shares (common shares) a. Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 78,650,640 shares As of March 31, 2026 78,650,640 shares b. Number of treasury shares at the end of the period As of June 30, 2026 389,060 shares As of March 31, 2026 409,434 shares c. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 78,249,447 shares Three months ended June 30, 2025 78,196,916 shares * Review of the Japanese-language origin als of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None * Proper use of earnings forecasts, and other special matters Caution regarding forward-looking statements and others The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company’s actual results. Actual financial and othe r results may differ substantially from the statements herein due to various factors. Please refer to “1. Overview of operating results, (3) Explanation regarding consolidated earnings forecasts a nd other forward-looking statements” on page 3 of the attached material s for the suppositions that form the assumptions for the earnings forecasts and cautions regarding the use of the earnings forecasts. Means of access to supplementary material on financial results The Company plans to hold financial results presentation meeting for institutional investors on Friday, August 7, 2026. The supplementary materials used for the quart erly financial results briefing on this da te is to be posted on the Company’s web site promptly after the briefing has concluded.
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1 Attached Materials Index 1. Overview of operating results ................................................................................................................. 2 (1) Overview of operating results in the period ..................................................................................... 2 (2) Overview of financial position in the period .................................................................................... 2 (3) Explanation regarding consolidated earnings forecasts and other forward-looking statements ...... 3 2. Quarterly consolidated financial statements and significant notes thereto ............................................. 4 (1) Quarterly consolidated balance sheet ............................................................................................... 4 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ..................................................................................................................... 5 Quarterly consolidated statement of income .................................................................................... 5 Quarterly consolidated statement of comprehensive income ........................................................... 6 (3) Notes to quarterly consolidated financial statements ....................................................................... 7 Notes to segment information, etc. ............................................................................................ ...... 7 Notes on significant changes in the amount of shareholders’ equity ............................................... 7 Notes on premise of going concern .................................................................................................. 7 Notes on quarterly consolidated statement of cash flows ................................................................ 7
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2 1. Overview of operating results (1) Overview of operating results in the period During the first three months under review, the Japanese economy showed a gradual recovery trend due to improvement in corporate earnings and improvements in income and employment conditions. However, the economic outlook remains uncertain due to rising living costs for consumers caused by price increases, the impact of fluctuations in financial and capital markets, and developments concerning the situation in the Middle East. Under these circumstances, the Group aims to provide a “Fourth Option” as an alternative to newly built, “as- is” pre-owned, and rental houses, mainly targeting the middle- and lower-income market. We deal with older pre-owned single-family detached houses that competitors find challenging to bring to market. We add value by refurbishing properties that are difficult to live in as they are, and sell them to customers. In terms of sales, by providing products that meet the desire to buy inexpensive, high-quality houses against the backdrop of changes in diversifying family compositions, sales have remained strong. Specifically, we have steadily maintained the number of inquiries by providin g housing that meets customer needs through offering more affordable housing to non-family segments and expanding the product lineup for customers considering new homes. In addition, as a structural factor, due to th e increase in construction costs associated with the rise in prices and stronger environmental regulations, the selling prices of new homes have surged. As a result of an improvement in the price competitiveness of the used housing provided by the Group, the number of homes sold amounted to 2,381, an increase of 20.5% year on year. In terms of purchases, the Company’s policy is to caref ully assess the risks associ ated with used housing and selectively acquire properties that can be rehabilitated and will ensure profitability. Under such circumstances, the number of purchases amounted to 2,722, an increase of 25.8% year on year as a result of increasing the level of purchasing activity for the purpose of achieving growth rates greater than ever before. Consequently, real estate for sale and real estate for sa le in process increased by 9.1% compared to the end of the previous fiscal year, ensuring that the inventory is sufficient both in quality and quantity for stable growth. In terms of profit, the gross margin decreased 0.5 percenta ge points year on year as a result of conducting the aforementioned expansion of products for customers considering new hom es and the increase in purchasing prices for sale properties. Selling, general and administrative expenses rose 16.6% year on year, as a result of higher personnel expenses due to continued investment in human resources for future stable growth. As a result, in the first three months under review, the number of properties sold was 2,381, up 20.5% year on year, net sales were ¥43,961 million, up 25.4% year on year, operating profit was ¥5,562 million, up 28.4% year on year, ordinary profit was ¥5,418 million, up 29.0% year on year and profit attributable to owners of parent was ¥3,678 million, up 28.7% year on year. The Group’s sole reportable segment is the “used housing refurbishing and remodeling business.” Other businesses have been omitted due to a lack of materiality. Additionally, there are no casualties to Group employees from the 2026 Kumamoto Earthquake that occurred on July 28, 2026. Furthermore, although the Group has confirmed damage to some of its properties and facilities, including partial damage and destruction, it has not completed a detailed investigation of all its properties as of the filing date of these financial results. However, based on the damage status confirmed so far, the Group believes that the impact, etc. on its performance is immaterial. (2) Overview of financial position in the period (i) Current assets Current assets as of June 30, 2026 amounted to ¥98,110 million, an increase of ¥7,489 million compared to ¥90,620 million at the end of the previous fiscal year. Th is was mainly due to an increase of ¥7,389 million in real estate for sale and real estate for sale in process, despite a decrease of ¥356 million in cash and deposits.
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3 (ii) Non-current assets Non-current assets as of June 30, 2026 amounted to ¥2,286 million, a decrease of ¥338 million compared to ¥2,624 million at the end of the previous fiscal year. This was mainly due to decreases of ¥1 million in intangible assets and ¥334 million in investments and other assets. (iii) Current liabilities Current liabilities as of June 30, 2026 amounted to ¥38,783 million, an increase of ¥6,674 million compared to ¥32,108 million at the end of the previous fiscal year. This was mainly due to decreases of ¥2,025 million in income taxes payable and ¥575 million in provision for bonuses, despite increases of ¥9,000 million in short- term borrowings and ¥105 million in accrued consumption taxes. (iv) Non-current liabilities Non-current liabilities as of June 30, 2026 amounted to ¥8,077 million, an increase of ¥0 million compared to ¥8,077 million at the end of the previous fiscal year. This was mainly due to an increase of ¥0 million in other non-current liabilities. (v) Net assets Net assets as of June 30, 2026 amounted to ¥53,536 mil lion, an increase of ¥476 million compared to ¥53,059 million at the end of the previous fiscal year. This was mainly due to the recording of ¥3,678 million in profit attributable to owners of parent while paying out dividends of surplus of ¥3,207 million. As a result, the equity- to-asset ratio was 53.3%. (3) Explanation regarding consolidated earnings forecasts and other forward-looking statements There are no changes to the consolidated earnings forecasts for the first half and full year for the fiscal year ending March 31, 2027 announced in the “Consolidated Financial Results for the Fiscal Year Ended March 31, 2026” on May 8, 2026.
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4 2. Quarterly consolidated financial stat ements and significant notes thereto (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 8,228 7,871 Real estate for sale 48,390 52,899 Real estate for sale in process 32,813 35,692 Other 1,190 1,648 Allowance for doubtful accounts (2) (2) Total current assets 90,620 98,110 Non-current assets Property, plant and equipment 810 808 Intangible assets 145 144 Investments and other assets Other 1,669 1,335 Allowance for doubtful accounts (1) (1) Total investments and other assets 1,668 1,333 Total non-current assets 2,624 2,286 Total assets 93,245 100,397 Liabilities Current liabilities Accounts payable - trade 5,038 5,097 Income taxes payable 3,527 1,502 Accrued consumption taxes 68 174 Short-term borrowings – 9,000 Current portion of long-term borrowings 18,500 18,500 Provision for bonuses 780 205 Construction warranty reserve 508 556 Provision for loss on litigation 17 32 Provision for loss on disaster 51 56 Other 3,614 3,657 Total current liabilities 32,108 38,783 Non-current liabilities Long-term borrowings 8,000 8,000 Provision for retirement benefits for directors (and other officers) 66 66 Other 11 11 Total non-current liabilities 8,077 8,077 Total liabilities 40,186 46,860 Net assets Shareholders’ equity Share capital 3,778 3,778 Capital surplus 3,850 3,847 Retained earnings 45,625 46,095 Treasury shares (195) (185) Total shareholders’ equity 53,059 53,536 Total net assets 53,059 53,536 Total liabilities and net assets 93,245 100,397
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5 (2) Quarterly consolidated statement of income and quar terly consolidated statement of comprehensive income Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 35,063 43,961 Cost of sales 26,648 33,635 Gross profit 8,415 10,325 Selling, general and administrative expenses 4,083 4,762 Operating profit 4,331 5,562 Non-operating income Commission income 3 15 Other 3 4 Total non-operating income 7 20 Non-operating expenses Interest expenses 106 150 Other 33 14 Total non-operating expenses 139 164 Ordinary profit 4,199 5,418 Extraordinary income Gain on sale of non-current assets 0 15 Total extraordinary income 0 15 Extraordinary losses Loss on retirement of non-current assets 0 – Total extraordinary losses 0 – Profit before income taxes 4,199 5,433 Income taxes - current 1,068 1,427 Income taxes - deferred 272 327 Total income taxes 1,341 1,755 Profit 2,857 3,678 Profit attributable to owners of parent 2,857 3,678
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6 Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 2,857 3,678 Comprehensive income 2,857 3,678 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,857 3,678
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7 (3) Notes to quarterly consolidated financial statements Notes on segment information, etc. Segment information I. Three months ended June 30, 2025 The Group’s sole reportable segment is the “used housing refurbishing and remodeling business.” Other businesses have been omitted due to a lack of materiality. II. Three months ended June 30, 2026 The Group’s sole reportable segment is the “used housing refurbishing and remodeling business.” Other businesses have been omitted due to a lack of materiality. Notes on significant changes in the amount of shareholders’ equity No items to report. Notes on premise of going concern No items to report. Notes on quarterly consolidated statement of cash flows Quarterly consolidated statement of cash flows has not be en prepared for the first three months under review. Depreciation for the first three months ended June 30, 2025 and June 30, 2026 are as follows. Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation ¥26 million ¥30 million