Summary of Business Results

Net sales increased 1.7% year on year to 137,435 million yen, thanks to the strong performance of the medical business, the elderly care business and the children business.

Operating profit increased 27.2.% year on year to 7,017 million yen due to the effects of the recovery from the COVID-19 pandemic in the Elderly Care Business, a decrease in amortization expenses following the impairment loss recorded in the previous fiscal year, and improved profitability resulting from structural reforms in the Smart Hospital Business.

EBITDA increased 14.4% year on year to 10,127 million yen.

Ordinary profit increased 20.9% year on year to 6,726 million yen.

Net income increased 75.4% year on year to 3,960 million yen.

Net sales increased by 0.2% year on year to 70,981 million yen, due to the contributions of new orders for contracted services received during the previous fiscal year and the effect of price revisions, despite a decrease of approximately 1,340 million yen in sales due to the end of COVID-19 related services. Operating profit increased by 2.7% year on year to 4,418 million yen, due to the increase in income from the increase in sales of contracted service, the reduction of the higher-than-expected new start-up costs recorded in the previous year due to stabilization of operations, and the decrease in selling, general and administrative expenses due to the improvement in productivity from the transition of next-generation operations that was carried out in the previous year exceeded the negative impact of the decrease in income from COVID-19 related services.

Net sales increased by 2.7% year on year to 55,337 million yen due to the continued recovery following the COVID-19 pandemic, as well as the contributions of a total of four companies that became subsidiaries in FY2023, including Possible Medical Science Corporation and Solasto Care Corporation, and newly opened business centers. Operating profit increased by 49.6% year on year to 2,218 million yen, a significant increase due to the increase in sales, efficiency improvements including the consolidation and closing of elderly care centers and the impact of lower depreciation expenses following the recording of impairment losses in the previous fiscal year.

Net sales increased by 6.5% year on year to 10,836 million yen, mainly due to an increase in the number of children attending the company’s child-care centers. Operating profit significantly increased by 30.4% year on year to 401 million yen, mainly due to an increase in sales and a decrease in recruiting expenses due to improved employee retention.

Current assets as of March 31, 2025 totaled 31,166 million yen, a decrease of 1,118 million yen compared to the end of the previous fiscal year. This was primarily due to a decrease of 1,111 million yen in cash and deposits. Fixed assets totaled 38,930 million yen, a decrease of 3,984 million yen compared to the end of the previous fiscal year. This decrease was primarily due to a decrease of 1,752 million yen in goodwill and a decrease of 1,702 million yen in other investment assets.
As a result, total assets amounted to 70,097 million yen, a decrease of 5,102 million yen compared to the end of the previous fiscal year.

Current liabilities as of March 31, 2025 amounted to 22,362 million yen, a decrease of 2,220 million yen compared to the end of the previous fiscal year. This was primarily due to a decrease of 500 million yen in short-term borrowings and a decrease of 917 million yen in accounts payable. Fixed liabilities totaled 25,050 million yen, a decrease of 5,081 million yen compared to the end of the previous fiscal year. This was primarily due to a decrease of 4,782 million yen in long-term borrowings.
As a result, total liabilities amounted to 47,412 million yen, a decrease of 7,301 million yen compared to the end of the previous fiscal year.

Total equity as of March 31, 2025 amounted to 22,684 million yen, an increase of 2,198 million yen compared to the end of the previous fiscal year. This was primarily due to net income attributable to parent company shareholders of 3,960 million yen and dividend payments from retained earnings of 1,844 million yen.

Net cash flows from operating activities were 5,877 million yen, mainly due to income before income taxes of 6,454 million yen, amortization of goodwill of 1,656 million yen, depreciation of 1,452 million yen, and income taxes paid of 2,106 million yen.

Net cash flows from investing activities totaled 347 million yen. This was primarily attributable to proceeds from the cancellation of money trusts of 1,107 million yen, partially offset by purchases of property, plant and equipment of 415 million yen and intangible assets of 407 million yen.

Net cash used in financing activities was 7,335 million yen, mainly reflecting repayments of long-term borrowings of 4,782 million yen and dividend payments of 1,844 million yen.

Cash and cash equivalents at the end of the current fiscal year amounted to 14,004 million yen, representing a decrease of 1,111 million yen from the end of the previous fiscal year. Despite an increase in income before income taxes, the decrease was primarily due to repayments of long-term borrowings, income taxes paid and dividend payments.