Strengthening Financial Soundness, Diversifying Funding, and Improving Group Management Efficiency

「We will secure investment capacity through our business portfolio strategy and combine complex, advanced expertise and know-how across finance, accounting, law and other fields to identify the optimal overall financing methods, with the aim of securing flexible and diverse financing.」

「Minimize the outflow of internal funds by combining multiple M&A financing schemes」

「At the end of the interim consolidated accounting period, current liabilities increased by ¥10,053.508 million from the end of the previous consolidated fiscal year to ¥23,153.039 million. This was mainly due to increases of ¥2,340.000 million in short-term borrowings, ¥3,947.900 million in notes and accounts payable, and ¥2,966.537 million in long-term borrowings due for repayment within one year. At the end of the interim consolidated accounting period, non-current liabilities increased by ¥6,656.126 million from the end of the previous consolidated fiscal year to ¥17,666.390 million, mainly due to an increase of ¥5,455.355 million in long-term borrowings.」

「At the end of the current interim consolidated fiscal period, net assets decreased by ¥517,244 thousand from the end of the previous consolidated fiscal year to ¥5,642,371 thousand. This was mainly due to a ¥177,991 thousand increase in retained earnings and a ¥722,458 thousand decrease in the valuation difference on available-for-sale securities.」

「We will expand the ROIC spread, which represents excess profit and is the difference between ROIC (return on invested capital) and WACC (weighted average cost of capital), stabilize group finances through a business portfolio strategy that makes effective use of and optimally allocates funds within our group, and continuously improve earnings capacity by increasing budget accuracy. We will secure investment capacity through our business portfolio strategy and combine complex, advanced expertise and know-how across multiple fields, including finance, accounting and law, to identify funding methods that optimize the group as a whole, with the aim of securing flexible and diversified funding.」

「At the end of the third quarter of the current consolidated fiscal year, net assets increased by ¥1,002,030 thousand from the end of the previous consolidated fiscal year to ¥5,481,384 thousand. This was mainly due to increases of ¥548,062 thousand in retained earnings and ¥413,510 thousand in the valuation difference on available-for-sale securities.」

「At the end of the second quarter of the current consolidated fiscal year, net assets increased by ¥865,714 thousand from the end of the previous consolidated fiscal year to ¥5,345,068 thousand. / Equity ratio (%): 31.3 / This was mainly due to a ¥436,490 thousand decrease in long-term borrowings, despite a ¥211,780 thousand increase in deferred tax liabilities resulting from the fair value measurement of investment securities.」

「At the end of the first quarter of the current consolidated fiscal year, net assets increased by ¥420,093 thousand from the end of the previous consolidated fiscal year to ¥4,899,446 thousand.」

「This was mainly due to a ¥514,462 thousand decrease in long-term borrowings following a review of the LBO loan and a ¥112,434 thousand decrease in deferred tax liabilities resulting from the sale and fair value measurement of investment securities.」

「At the end of the third quarter of the current consolidated fiscal year, net assets decreased by ¥298,362 thousand from the end of the previous consolidated fiscal year to ¥4,270,447 thousand. This was mainly due to a ¥243,361 thousand decrease in the valuation difference on available-for-sale securities resulting from the fair value measurement of investment securities, a ¥94,500 thousand decrease in non-controlling interests following the repurchase of preferred shares in セレンディップ・テクノロジーズ株式会社, and an ¥87,485 thousand increase in treasury shares.」

「At the end of the second quarter of the current consolidated fiscal year, net assets decreased by ¥231,762 thousand from the end of the previous consolidated fiscal year to ¥4,337,047 thousand. This was mainly due to a ¥210,338 thousand decrease in the valuation difference on available-for-sale securities resulting from the fair value measurement of investment securities.」

「At the end of the first quarter of the current consolidated fiscal year, net assets decreased by ¥119,036 thousand from the end of the previous consolidated fiscal year to ¥4,449,773 thousand.」

「The equity ratio at the end of the current consolidated fiscal year was 28.5%, up from 19.8% at the end of the previous consolidated fiscal year.」

「At the end of the third quarter of the current consolidated fiscal year, net assets increased by ¥1,363,152 thousand from the end of the previous consolidated fiscal year to ¥4,381,166 thousand. This was mainly due to increases of ¥520,052 thousand in share capital and ¥520,052 thousand in capital surplus through a public offering and other measures.」

「At the end of the second quarter of the current consolidated fiscal year, net assets increased by ¥1,241,102 thousand from the end of the previous consolidated fiscal year to ¥4,259,117 thousand. This was mainly due to increases of ¥508,052 thousand in share capital and ¥508,052 thousand in capital surplus through a public offering and other measures. / Equity ratio (%): 27.7」

「This resulted from a ¥441,830 thousand increase in share capital and a ¥441,830 thousand increase in capital surplus through a public offering and other measures. / Equity ratio (%): 26.3」

「As group management priorities, our group aims to stabilize its earnings base and strengthen the financial soundness of its subsidiaries. Specifically, we will seek to optimize the balance between investment efficiency and financial soundness, stabilize group finances through a business portfolio strategy that makes effective use of and optimally allocates funds within our group, and continuously improve earnings capacity by increasing budget accuracy.」