A sharp increase in second-half profit is needed to achieve the full-year forecast

First-half 2026 operating revenue was ¥1,959 million, operating profit was ¥18 million, ordinary profit was ¥107 million and interim net profit attributable to owners of the parent was ¥107 million. Progress against the full-year forecasts was 39.2%, 1.2%, 7.1% and 10.7%, respectively. Simply subtracting the first-half results from the full-year forecasts, the amounts required in the second half to achieve the forecasts are ¥3,041 million in operating revenue, ¥1,482 million in operating profit, ¥1,393 million in ordinary profit and ¥893 million in net profit.

In the previous fiscal year, the fiscal year ended December 2025, operating revenue was ¥7,216 million, operating profit was ¥2,515 million, ordinary profit was ¥2,554 million and net profit attributable to owners of the parent was ¥1,685 million. By contrast, the company forecasts operating revenue of ¥5,000 million, operating profit of ¥1,500 million, ordinary profit of ¥1,500 million and net profit of ¥1,000 million for 2026, representing expected declines of 30.7%, 40.4%, 41.3% and 40.6%, respectively, from the previous fiscal year. The return to profitability in the first half indicates an improvement, but the gap against the full-year plan is substantial for the profit items.

The company operates in a single investment management segment, so the first-half results do not show profit by business, such as business investments, asset investments and fund management. Accordingly, the next earnings release should disclose, to the extent possible, a breakdown of management fees, performance fees, gains and losses on proprietary investments, and valuation gains and losses on held assets, in addition to nine-month progress in operating revenue and operating profit. In particular, if operating profit has not reached ¥1,125 million by the nine-month point, achieving the full-year forecast will depend even more heavily on the fourth quarter.