Supplementary Explanatory Materials for the Fiscal Year Ending July 2026 | Cados Corporation (211A) timely disclosure

Worth reading

53Recurring

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Deterioration

Direction inferred from the company’s description.

Scale

-1704

¥ million (year-on-year change in revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial results presentationFull fiscal year ended July 202611 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥5,883 million-22.5%

Operating profit¥457 million-51.2%

Ordinary income¥449 million-52.1%

Net income¥314 million-52.1%

Gross Profit Margin19.8%

Selling, general and administrative expenses331 Millions of yen increase

Full-year earnings forecast

Net Sales

¥7,000 million

Operating profit

¥690 million

Ordinary income

¥650 million

Net income for the current fiscal year

¥330 million

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Decrease in construction revenue¥-1,283 million
Decrease in cost of construction revenue from completed projects¥949 million
Decrease in real estate business revenue¥-420 million
Decrease in cost of real estate business revenue¥-55 million
Increase in Selling, General and Administrative Expenses¥-331 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Steady orders in the construction business, progress on construction projects carried forward from the previous fiscal year, increased rental income from the acquisition of income-producing real estate, and payment of a directors' retirement allowance to the founder

New initiatives

Establishment of locations in Fukuoka and Okayama prefectures
Expansion of hiring in the construction division
Development of Kados Town
New acquisitions of rental properties
Growth investments, including DX and M&A
Expansion of Business Partnerships with Local Real Estate Companies

Key KPIsA metric the company considers important as a management benchmark.

Order backlog at period-end¥2,345 million
Year on year against the same period last yearIncrease of ¥966 million
Orders received during the period¥5,567 million
Number of newly built properties completed17 Engagements
Year on year against the same period last yearDecrease of 3
Number of landowners for properties under construction under management321 Engagements
Number of real estate rental properties105 Engagements
Number of partner real estate companies27 Engagements
Number of national-chain stores458 Location
Percentage of national-chain stores80.4 %

Segment results

Construction
Net Sales¥4,600 million
Year on year against the same period last year-21.8%
Real Estate Business
Net Sales¥1,283 million
Year on year against the same period last year-24.7%

Financial targets

Revenue
Target¥10.0 billion
ROE
Target10% or higher
Equity ratio
Target40% or more
Dividend payout ratio
TargetTargeting 30%

Orders received and order backlog

Orders received¥5,567 million

Order backlog¥2,345 million

Number of employees

Number of Employees95 people

Record date31 July 2026

Hiring planIncrease hiring in the construction division

Capital expenditures

¥1,909 million

Annual Dividend

Fiscal year ending July 2026

Annual¥180 per share

End of period¥180 per share

Forecast for the fiscal year ending July 2027

Annual¥180 per share

End of period¥180 per share

Payout ratio

Fiscal year ending July 202657.5

Forecast for the fiscal year ending July 202754.9

PolicyTargeting 30%

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Full fiscal year ended July 2026
Net Sales	¥5,883 million (YoY -22.5%)
Operating profit	¥457 million (YoY -51.2%)
Ordinary income	¥449 million (YoY -52.1%)
Net income	¥314 million (YoY -52.1%)
Gross Profit Margin	19.8%
Selling, general and administrative expenses	331 Millions of yen (increase)
Full-year earnings forecast	Net Sales ¥7,000 million / Operating profit ¥690 million / Ordinary income ¥650 million / Net income for the current fiscal year ¥330 million
Segment results	Segment Construction / Net Sales ¥4,600 million / Year on year against the same period last year -21.8 / Profit Not disclosed, Segment Real Estate Business / Net Sales ¥1,283 million / Year on year against the same period last year -24.7 / Profit Not disclosed
Breakdown of Factors Affecting the Change	Factors Decrease in construction revenue / Amount ¥-1,283 million, Factors Decrease in cost of construction revenue from completed projects / Amount ¥949 million, Factors Decrease in real estate business revenue / Amount ¥-420 million, Factors Decrease in cost of real estate business revenue / Amount ¥-55 million, Factors Increase in Selling, General and Administrative Expenses / Amount ¥-331 million
Key KPIs	¥2,345 million, ¥5,567 million, 17 Engagements, 321 Engagements, 105 Engagements, 27 Engagements, 458 Location, 80.4 %
Number of employees	Number of Employees 95 people / Record date 31 July 2026 / Change during the period Not disclosed / Hiring plan Increase hiring in the construction division
Assumptions Underlying the Business Outlook	Steady orders in the construction business, progress on construction projects carried forward from the previous fiscal year, increased rental income from the acquisition of income-producing real estate, and payment of a directors' retirement allowance to the founder
Financial targets	Indicator Revenue / Target ¥10.0 billion, Indicator ROE / Target 10% or higher, Indicator Equity ratio / Target 40% or more, Indicator Dividend payout ratio / Target Targeting 30%
Annual Dividend	Fiscal year ending July 2026 Annual ¥180 per share / Interim Not disclosed / End of period ¥180 per share / Forecast for the fiscal year ending July 2027 Annual ¥180 per share / Interim Not disclosed / End of period ¥180 per share
Payout ratio	Fiscal year ending July 2026 57.5 / Forecast for the fiscal year ending July 2027 54.9 / Policy Targeting 30%
Capital expenditures	¥1,909 million
Orders received and order backlog	Orders received ¥5,567 million / Order backlog ¥2,345 million
New initiatives	Establishment of locations in Fukuoka and Okayama prefectures, Expansion of hiring in the construction division, Development of Kados Town, New acquisitions of rental properties, Growth investments, including DX and M&A, Expansion of Business Partnerships with Local Real Estate Companies

Items this document does not state (11)

Operating profit marginResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Lower sales of large-scale real estate, delays in the timing of orders and progress for some construction projects, an increase in one-time costs associated with the acquisition of new rental properties, and a higher fixed-cost ratio due to lower completed construction revenue.

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