Medium- to Long-Term Target of an Ordinary Profit Margin on Sales of 6% or Higher

「With respect to the consolidated earnings forecast for the fiscal year ending October 2026, we revised the consolidated earnings forecast as announced in the Notice Regarding Revision of Full-Year Earnings Forecast issued on 14 September.」

「Under these circumstances, to respond to changes in the market environment and strengthen competitiveness, our group has pursued higher customer value and sustainable growth in corporate value based on the basic policy of the Medium-Term Management Plan 2028: "Restoring our position as the No. 1 comprehensive housing and living enterprise in Hokkaido and establishing a second base in the Tohoku region centered on Sendai." Under the mission of "Increasing QOL (quality of life) by 10% through unprecedented comfort and enduring peace of mind," we have worked to realize the vision of "Restoring our position as the top company in Hokkaido, centered on an alliance with Sekisui House."」

「In these circumstances, under its corporate mission of “Creating a Life of Abundance,” the Group formulated and is pursuing Medium-Term Management Plan 2027, which ends in the fiscal year ending October 2027.」

「In its medium-term management plan for the fiscal years ending October 2025 through October 2027, the Group has set quantitative targets for the final year, the fiscal year ending October 2027, of ¥40.0 billion in net sales, ¥1.6 billion in operating income and ROE of 8.0%. To achieve these targets, the Group will maximize synergies among its diversified businesses by leveraging their ties to the housing business, improve profitability in the housing business and increase overall earnings through its real estate business.」

「Our group has made the corporate mission "Creating lives of abundance" the foundation of management. In line with the policy of the medium-term management plan ending in the fiscal year ending October 2024, we are integrating environmental initiatives with the business, pursuing various initiatives, and developing high-value-added products, including the wider adoption of energy-efficient homes and the assurance of seismic strength through structural calculations for all buildings, in anticipation of societal needs.」

「With the corporate mission "Creating lives of abundance" as the foundation of management, and in line with the policy of the medium-term management plan ending in the fiscal year ending October 2024, we are integrating environmental initiatives with the business, pursuing various initiatives, and developing high-value-added products, including the wider adoption of energy-efficient homes and the assurance of seismic strength through structural calculations for all buildings, ahead of changes in the business environment.」

「In line with the policy of the medium-term management plan ending in the fiscal year ending October 2024, the company is pursuing various initiatives to become the "No. 1 comprehensive housing and living company" in snowy and cold regions, primarily Hokkaido, by integrating environmental challenges with its business, contributing to the realization of a decarbonized society and aiming to become a leading carbon-neutral company.」

「In line with the policy of the medium-term management plan ending in the fiscal year ending October 2024, the company is pursuing various initiatives to become the "No. 1 comprehensive housing and living company" in snowy and cold regions, primarily Hokkaido, by integrating environmental challenges with its business, contributing to the realization of a decarbonized society and aiming to become a leading carbon-neutral company.」

「In line with the policy of the medium-term management plan ending in the fiscal year ending October 2024, the company is pursuing various initiatives to become the "No. 1 comprehensive housing and living company" in snowy and cold regions, primarily Hokkaido, by integrating environmental challenges with its business, contributing to the realization of a decarbonized society and aiming to become a leading carbon-neutral company.」

「The Group had set an operating margin of at least 5% as its medium-term near-term target. However, as stated in “2. Business Conditions, 1. Management Policies, Business Environment and Issues to Be Addressed, (2) Objective Indicators for Assessing the Achievement of Management Targets,” its medium-term management plan for the fiscal years ending October 2022 through October 2024 sets quantitative targets for the final year, the fiscal year ending October 2024, of ¥38.0 billion in net sales, ¥1.2 billion in operating income, ROE of 6.0% and 900 homes sold. Net sales for the current consolidated fiscal year were ¥34.716 billion and operating income was ¥148 million, resulting in an operating margin of 0.4%.」

「In these circumstances, the Group announced on 21 December 2021 a medium-term management plan ending in the fiscal year ending October 2024 and is advancing initiatives to achieve the plan’s targets. Based on its corporate mission, “Creating a Life of Abundance,” the Group aims to contribute to the realization of a decarbonized society by disseminating throughout Japan its housing construction technologies, developed in Hokkaido’s harsh climate and leveraging the properties of wood to provide high thermal insulation, airtightness and durability.」

「In these circumstances, the Group announced on 21 December 2021 a medium-term management plan ending in the fiscal year ending October 2024. Based on its corporate mission, “Creating a Life of Abundance,” the Group aims to contribute to the realization of a decarbonized society by disseminating throughout Japan its housing construction technologies, developed in Hokkaido’s harsh climate and leveraging the properties of wood to provide high thermal insulation, airtightness and durability.」

「In its medium-term management plan for the fiscal years ending October 2022 through October 2024, the Group has set quantitative targets for the final year, the fiscal year ending October 2024, of ¥38.0 billion in net sales, ¥1.2 billion in operating income, ROE of 6.0%, and 900 homes sold. To achieve these targets, the Group will pursue initiatives including growth in sales of LIZNAS, its standardized housing product with a high construction turnover rate and its core housing business, as well as improved profitability across its businesses.」

「We have set an operating profit margin of 5% or higher as our near-term medium-term target. ... The operating profit margin was negative 1.7%. Our group will continue working to improve and raise this metric.」

「Going forward, we will consolidate these products into 2 brands and increase the proportion of custom-designed homes to improve profitability. As a management indicator of stable growth, we have set an operating profit margin of 5% as our near-term medium-term target.」

「Our group has set a ratio of ordinary profit to net sales of 6% or higher as a medium- to long-term target and a management indicator of stable growth.」