FY2026-H1 Segment Performance

「① Wholesale business Housing starts have continued to trend downward, with both owner-occupied housing and total housing starts nationwide remaining below the prior year. From April to September, new owner-occupied housing starts in Hokkaido totaled 3,458 units, down 22.7% from the prior-year period, a substantial decline, and the company expects difficult conditions to continue. Against this backdrop, the company worked to strengthen sales of ventilation-related products, including the ductless total heat-exchange ventilation system “Air save,” and to sell at appropriate prices. However, due to increases in selling, general and administrative expenses, including depreciation, net sales were ¥5,199 million, down 3.5% year on year, and operating income was ¥392 million, down 15.9%. ② Retail business In the home improvement retail industry, consumers’ preference for thrift remains strong, and competition with other companies in the industry and with businesses in other sectors continues to intensify. Against this backdrop, the opening costs for the Joyful AK Kushiro store in July and increases in selling, general and administrative expenses at existing stores, including wage increases, resulted in net sales of ¥12,082 million, up 5.7% year on year, and operating income of ¥346 million, down 50.2%. ③ Real estate business Through the proper maintenance and operation of rental properties and the recognition of units in “The Sapporo Towers” condominium development whose handover had been completed, the company made a significant contribution to earnings. Net sales were ¥955 million, up 278.6% year on year, and operating income was ¥471 million, up 288.7%. ④ Scaffolding rental business While orders for next-generation scaffolding for mid- and high-rise buildings remained solid following its new introduction, the company worked to improve operational efficiency and reduce expenses. As a result, net sales were ¥391 million, up 0.2% year on year, and operating income was ¥35 million, up 62.9%. ⑤ Sash and glass installation business The company is working to improve operational efficiency by thoroughly implementing the fundamentals of design, supervision and construction at work sites. As orders for large-scale projects also remained solid, net sales were ¥665 million, up 4.7% year on year, and operating income was ¥66 million, up 8.6%.」