Launching the senior-care facility business and building an ICT-integrated operating model

「As of the end of the consolidated fiscal year, the occupancy rate was 82% and the facility achieved monthly profitability. However, because priority was given to improving occupancy, the average care level was 3.4, or 0.2 to 0.3 lower than at other facilities. To catch up with the original plan, we are actively accepting patients requiring higher levels of care and with greater medical needs.」

「The third facility, Primary Care Home Hyuga Kumamoto Hamasen, which opened in December 2024 with capacity for 168 residents, was the Company's first facility in an area without a home-visit pharmacy operated by the Company. …As of the end of October 2025, the number of residents, including reservations, had reached 131, resolving the occupancy challenge, but the provision of medical services had not kept pace with the rapidly increasing number of residents… The fourth facility, Primary Care Home Hyuga Kurume St. Mary's Hospital-mae Station, had 106 residents, including reservations, as of the end of October 2025, representing a launch in line with expectations.」

「The third facility, Primary Care Home Hyuga Kumamoto Hamasen, with capacity for 168 residents, opened in December 2024. The first facility, Primary Care Home Hyuga Kasuga Chikushidai, and the second facility, Primary Care Home Hyuga Hakata Mugino, maintained stable occupancy rates above 90%, and the business turned profitable for the full year despite the opening costs for the third facility.」

「The first facility, Primary Care Home Hyuga Kasuga Chikushidai, has maintained an occupancy rate above 95%. The second facility, Primary Care Home Hyuga Hakata Mugino, exceeded 95% occupancy as of the end of October 2024, reaching 100% including reservations, and has a waiting list. The Company plans to open Primary Care Home Hyuga Kumamoto Hamasen in December 2024.」

「Primary Care Home Hyuga Kasuga Chikushidai, which opened in January 2023 and has capacity for 102 residents, had reached 89 residents, an occupancy rate of 87.3%, as of 13 February 2024, with admissions progressing steadily. The facility itself has maintained monthly profitability since turning profitable approximately six months after opening. The second facility, Primary Care Home Hyuga Hakata Mugino, which has capacity for 162 residents, opened in Hakata Ward, Fukuoka City, in August 2023. As of 13 February 2024, it had 108 residents, including reservations and applications, representing a stronger-than-expected launch.」

「Primary Care Home Hyuga Kasuga Chikushidai, which opened on 13 January 2023 and has capacity for 102 residents, experienced COVID-19 cases among residents and facility employees in May 2023. To prevent the spread of infection, resident-acquisition activities were temporarily suspended and the provision of medical services was restricted, at times causing monthly sales to stagnate. However, admissions progressed steadily, reaching 88 residents, an occupancy rate of 86.2%, as of 10 November 2023, and the facility itself turned monthly profit approximately six months after opening. On 1 August 2023, the second facility, Primary Care Home Hyuga Hakata Mugino, opened in Hakata Ward, Fukuoka City, with capacity for 162 residents. As of 10 November 2023, it had 83 residents, including reservations and applications, representing a stronger-than-expected launch.」

「Primary Care Home Hyuga Kasuga Chikushidai, which opened on 13 January 2023, experienced COVID-19 cases among residents and facility employees in May 2023. To prevent the spread of infection, admission-promotion activities were temporarily suspended and the provision of medical services was restricted, at times causing monthly sales to stagnate. However, admissions progressed steadily, reaching 83 residents, an occupancy rate of 81.7%, as of 9 August 2023, and the facility itself turned monthly operating profit. On 1 August 2023, the second facility, Primary Care Home Hyuga Hakata Mugino, opened in Hakata Ward, Fukuoka City. As of 9 August 2023, it had 41 residents, including reservations and applications, representing a steady launch.」

「In the senior-care facility operations business, the Company began admitting patients on 13 January 2023.」

「The senior-care facility operations business was initially being prepared for an opening in December 2022, but construction has taken longer than expected due in part to the impact of COVID-19, and residents are now expected to move in in early January. The Company believes the impact on results will be minor.」

「As of the end of the first quarter, the Company had begun recruiting nursing-care and nursing staff for its senior-care facility operations business and was undertaking full-scale preparations for opening, resulting in costs being incurred ahead of revenue.」

「The Company plans to begin its senior-care facility operations business in December 2022. By linking it with the ICT business, the Company will enhance synergies and pursue integrated operations alongside standalone product sales.」