We wish to express our heartfelt appreciation to our shareholders for their excellent cooperation.

The Tosei Group conducts a wide range of real estate-related businesses in line with its corporate philosophy "To create new value and inspiration in all aspects of real estate as a global-minded group of seasoned professionals".

The business environment surrounding the Group in the recent years has become increasingly uncertain amid revolutionary changes, including the escalation of climate change issues, the emergence of geopolitical risks, the declining birthrate and the aging of society in Japan, the acceleration of behavioral changes triggered by the COVID-19 pandemic, and rapid advances in digital technology. In order to adapt to such changes in the business environment, ensure the Group's sustainable growth over the future, and enhance corporate value by contributing to the realization of a sustainable society, we formulated "Tosei Group Long-Term Vision 2032" and the medium-term management plan "Further Evolution 2026" (December 2023 - November 2026), which started from the fiscal year ended November 30, 2024. We have now entered the final year of the term.

What we aim to be in the Tosei Group Long-Term Vision 2032 is as follows: "We will contribute to the realization of a sustainable society as a unique real estate portfolio manager with diverse solution capabilities". We will further strengthen and expand the Tosei Group's core competencies to achieve both business growth and contribution to sustainable society.

FY2026, the final year of our current medium-term management plan, has begun. In the domestic real estate investment market, which is the Group's mainstay market, despite the impact of the Bank of Japan raising policy interest rates and the trends in U.S. trade policies, rising rent, driven by such factors as the increasing demand by companies for expansion and relocation, as well as rents reflecting rising prices, has fueled a robust investor confidence. Amid this operating environment, for the first three months ended February 28, 2026, the Group's financial results were off to an extremely good start with consolidated revenue of ¥60.4 billion (up 31.3% year on year) and consolidated profit before tax of ¥14.8 billion (up 25.8% year on year), achieving 49.2% of the full-year forecast based on consolidated revenue and 67.6% based on consolidated profit before tax.

As for the operating segments, in the Revitalization Business, our mainstay business, sales of office buildings and rental apartments progressed favorably, with its segment profit reaching \9,126 million (up 95.4% year on year). Additionally, in the Fund and Consulting Business, we steadily accumulated achievements as a partner for domestic and overseas institutional investors in domestic real estate investment, with AUM increasing by \77.4 billion from the end of the previous fiscal year to a total of \2.74 trillion, and its segment profit reached \1,821 million (up 82.6% year on year).

Meanwhile, financial and capital markets are surrounded by various risks, including concerns about a downturn in the domestic economy due to persistent inflation and geopolitical risks such as the uncertain situation in the Middle East. Leveraging portfolio management that balances the growth and stability of our real estate business, along with a diverse asset portfolio, we will adeptly respond to these market changes and continue to meet the expectations of our stakeholders.

We would appreciate your continued support.