Japan Elevator Svc Hldgs

Today, I would like to thank the Japan Elevator Service Holdings Co., Ltd. for participating in the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, the second half of March, In March of 2026, I will explain the summary of the second half of the fiscal year. The sales volume increased by 16% in the same period last year by 26.9 billion yen. The operating profit increased by 31% in the same year by 5.1 billion yen. The intermediate net profit increased by 30% by 3.2 billion yen. We have made a smooth progress in the second half of the fiscal year in May. As the number of contracts increases, the supply and demand increases steadily. As a result of the active development of the insurance business, there has been a high increase in the supply, maintenance, and business sales. In addition, the linear business has continued to improve, and it has increased by more than 20% in the same period last year. In terms of profits, the increase in the productivity of technicians due to the increase in the number of contracts, the rise in the cost of renewables, and the increase in the cost of half-payments led to an increase in profitability. The operating profit was improved by 2.1 points from the previous year and became 19.6%. As a result, the operating profit and net profit increased significantly. Please look at the next page. The number of contracts in the mid-term has expanded steadily, and the profitability has improved significantly in terms of security and renewal. From the prediction that the business environment will continue to be good in the future, we will adjust the information of the long-term performance forecast that was announced in May according to the announcement yesterday. I will explain the details later from Imamura of CFO. We have already announced our forecast for the company's return, so I will now explain. Our company's return policy aims to continue the growth that has been going on for more than 40% of the total success rate, along with profit growth. Since we were able to confirm that the business performance of this year has been progressing smoothly, we have set a return of ¥19,000, which is the standard to reverse the smoothness. The return success is expected to exceed 50%. Next, please see page 6. I explained about the business strategy of this fiscal year in the summary meeting in May, but I will talk about the progress of this fiscal year after the mid-term period. The maintenance and preservation work is proceeding smoothly. The number of contracts for maintenance at the end of September broke through the 12th generation and the share of the company in the elevator maintenance business in Japan exceeded 10%. Due to lack of human resources and rising prices, various costs related to building management are rising. While building owners and management companies are suffering from cost reduction while ensuring the safety of elevator users, we believe that the environment in which we can provide the safety and quality of the manufacturer at a reasonable price continues to be fully exposed. In addition, in addition to the building management company from before, we have achieved the same level as the previous year, which recorded the highest number of organic purification units in the mid-term by systematically diversifying sales channels such as financial institutions, business registration, and printing, and so on. We have decided that we are following the company's internal goals of exceeding the previous year in the second quarter. We are actively working on a proposal to prevent a delay in the operation and management of 120,000 elevators, predict the appropriate time for the replacement of parts, and prevent a delay. As a result, we have been able to achieve a large-scale control of the previous year even in the intermediate period. In addition, we are expanding the functions of the property management system as part of the high-endization of the mechanism system, aiming to improve business efficiency and customer satisfaction. Next, please look at page 7. Next, I will explain about the linear business. Since the installation of the elevator, it has deteriorated over the past 20 to 30 years, and large-scale repairs have been needed. The fact that the elevator, which was installed in the 2000s from 1990 to 2000, has been stopped supplying parts, and that the price of the elevator has increased significantly, the needs for renewal continue to be very strong. In addition, we have exceeded 120,000 customers, and we have increased the number of customers who are considering switching to us due to the needs and renewal from existing customers. Due to this situation, the number of renewal units in the middle period has increased from 1,200 to more than 140 in the previous year. This year, we have developed measures such as working together with wholesale businesses to develop joint proposals for large-scale retailers, aiming to further expand. In addition, we are working on strengthening our new product development and self-manufacturing system, aiming to improve profitability. Please see page 8. The number of locations has increased from 151 locations in Kyushu and Okinawa, and has increased to 151 locations since November 1st. We are expanding our network by increasing the number of contracts across the country. We are actively promoting the optimization of management resources in order to not only increase the number of locations, but also improve their growth and profitability. M&A is working to optimize the management efficiency by integrating M&A companies into regional companies according to the progress of the integration work, such as training of technicians and organizing of employment system. In July, we changed the name of SHOWA ESO-KI TOHOKU to JAPAN ELEVATOR SERVICE TOHOKU and integrated it with TOHOKUSHIA, which is in charge of JAPAN ELEVATOR SERVICE. In October, we merged Shikoku Elevator Service and Shikoku Elevator Service in Japan Elevator Service in Shikoku. We are building a system to efficiently expand the share by increasing the management speed such as decision-making between both companies. The number of employees increased from 2,223 at the end of September and 195 more than at the end of last year. In April, we adopted 153 new graduates, but since then, we have actively adopted middle-class people, and while it is said that it is difficult to secure personnel, our number of employees has been steadily decreasing. In order to support this kind of personnel for a long period of time, we will continue to actively secure personnel in the future. That's all I have to say. Thank you for your attention.

I'm Imamura of CFO, Vice President of Torishima. I will explain the financial statements of the second half of March in 2026, and the performance forecast of March in 2026. Please look at the next 10 pages. First, let's take a look at the second half of March, 2026. The sales volume is 26.9 billion yen. Compared to the 23.2 billion yen of the same year, it has increased by 3.6 billion yen. It has increased by 116% in the previous quarter. The sales volume continues to increase steadily in all sales segments, and the sales volume has increased significantly. The operating profit is 5.13 billion yen, which is an increase of about 120 million yen from the previous year's 3.926 million yen, which is an increase of about 120 million yen. In addition to the increase in productivity due to the increase in the number of contractual contracts, the renewal, the increase in the number of short-term contracts, the increase in the number of short-term contracts, and the halving of half-term contracts, the increase in sales and the reduction in costs have led to an increase in profits. The operating profit ratio before the Noren incineration is 19.6%, which is the target of the central government. From 17.5% last year, it has increased by about 2%. The target value of the central government is 20%, which I think is a good sign. I will explain the reason for the change in operating profit in the next slide. I will explain the increase in operating profit in the previous fiscal year. On the left side of the graph, this is 3926 million yen, which is the operating profit of the previous year. Starting from here, the increase in operating profit has increased by 3.6 billion yen. and the cost of raw materials is 8.8 billion yen, and the number of employees has increased by 226, so the cost of labor and human resources has increased by 74.2 billion yen. In addition, the cost of renewables has increased, so the cost of utilities has increased by 25.8 billion yen. The cost of fuel is almost the same as last year, but the cost has increased by 58.4 billion yen, As a result, it fell to 5.1 billion 3 million yen. In the first half of the year, the number of storage units was still high, and the sales of the storage units were also in good condition. In terms of linearity, the number of units increased and the price of goods increased. The increase in revenue was 3.6 billion yen, and the increase in revenue was 1.2 billion yen. In terms of sales growth, the sales profit was 33% and we have made progress. Please look at the next page. In March of 2026, there will be a landing business forecast. Both maintenance, security, and renewal will be in progress, and we expect that the business environment will continue to be stable. Therefore, we have adjusted the information on the long-term business forecast that was announced in May. The sales volume was adjusted from 5.5 billion yen to 5.65 billion yen, and then to 1.5 billion yen. Also, the investment for growth is in order, and there is no need to increase it significantly, so the operating profit is expected to be 10 billion to 1.6 billion yen, which is an increase of 6 billion yen. We expect an increase in sales growth rate. As a result, it is expected that the operating profit rate will reach 19.2%. Please look at the next page. This is the last slide of the explanation. We are looking forward to the investment in facilities and fire extinguishers. There is no change from the figures that were announced at the base. If you look at the graph below, you will see that the investment in facilities was about 3.6 billion yen at the peak in March 2023, but it has decreased year by year, and we do not expect large-scale investment in facilities in the future. As a result, the cash flow, the free cash flow, has been largely accumulated, so we are thinking about strengthening the return on investment in the future as well. As for this year's disbursement forecast, the disbursement success is expected to be 51.3% for 19 yen per share. In the medium term, I would like to consider M&A, investment in employees, and strengthening of the stock market. That's all from me. Thank you for listening.