EPCO Co.,Ltd.

During the current interim consolidated accounting period, the EPCO Group continued its initiatives across three areas centered on the housing industry: renewable energy, housing, and new businesses. The Group entered the second year of Phase 1 of its Medium-Term Management Plan (2025–2027), contributing to the resolution of social issues, protection of the global environment, and the creation of secure and comfortable living environments. For the interim consolidated accounting period of the 36th fiscal year, net sales were ¥3,446 million, up 2.8% year on year; operating profit was ¥209 million, down 4.0%; ordinary profit was ¥251 million, up 6.4%; and interim net income was ¥173 million, down 13.7%. By segment, sales were ¥1,350 million for renewable energy services, ¥1,043 million for maintenance services, and ¥1,052 million for design services. These figures represent sales to external customers and have been rounded to the nearest million yen. The depreciation of the yen, which raised management costs at the Chinese subsidiary, together with higher raw material prices and higher outsourcing rates, increased construction costs and pushed up operating expenses. Interim net income was ¥173 million, down 13.7% from the previous interim consolidated accounting period. Although the Group recorded ¥32 million in equity in earnings of affiliates, gains on the sale of investment securities and gains on the sale of investments in affiliates recorded in the previous period did not arise in the current interim period. There were no material changes in business risks. Initiatives under Phase 2 are continuing.