&Do Holdings Co.,Ltd.

The Franchise Business boasts a high-margin structure with a FY2025 (ended June 2025) segment profit margin of 61.5% (net sales of ¥3,121 million, profit of ¥1,920 million). The nationwide network, comprising a cumulative 725 franchise stores and 624 opened stores, serves as a source of property sourcing, customer acquisition, and appraisal capability, forming the synergy base for other businesses. Approximately 70% of franchisee companies entered from other industries, and the low entry barrier supports continuous franchisee acquisition.

The House Leaseback Business has a cumulative property holding count of 558 properties (as of the end of FY2025, June 2025), while the Financial Business's Reverse Mortgage Guarantee Service has reached a cumulative guarantee count of 2,008 cases and a cumulative guarantee balance of ¥28,178 million. Through off-balance-sheeting utilizing the SPC Scheme (HLB No. 20: transfer price ¥4,040 million, HLB No. 21: transfer price ¥4,191 million), the company has built a unique model that pursues business expansion while maintaining asset efficiency.

In December 2024, the company concluded a capital and business alliance with Dai-ichi Life Holdings, which became an "other affiliated company" holding 15.70% of total shares issued. Through collaboration in the Reverse Mortgage Guarantee Service, House Leaseback Business, and Real Estate Sales Business, the company has gained business expansion opportunities by leveraging the customer base and financial services of a major life insurance group.

The company continues to develop new franchisees through aggressive investment in advertising and human resources. In the cumulative third quarter, new franchise agreements reached 91, the cumulative number of franchise stores reached 732, and the cumulative number of stores opened reached 632 (up 31.7% year on year in new store openings). Strengthening the supervisor structure and enhancing franchisee support have contributed to accelerating store openings.

The company is promoting the securing of sales personnel and expansion of covered areas, centered on Used Home Purchase & Resale. In the cumulative third quarter, the number of transactions reached 981 (up 14.2% year on year), showing growth in volume. However, segment sales decreased 11.0% year on year and segment profit decreased 23.3% year on year, reflecting the lingering impact of the timing shift of large-scale deals. Achieving both improved capital turnover and improved profit margin remains an ongoing challenge.

Through strengthened collaboration with partner financial institutions, the number of new guarantees reached 397 (up 8.8% year on year), and the cumulative guarantee balance reached ¥33,829 million (up ¥5,651 million from the end of the previous fiscal year), showing steady expansion. Segment profit maintained high growth, up 35.4% year on year, and management resources are being concentrated on this business as a priority area under the medium-term plan.

Regarding the Renovation Business, the company completed the business transfer by selling shares of the incorporation-type company split successor company effective February 5, 2026. A gain on sale of shares of affiliated companies of ¥1,355 million was recorded as extraordinary income. With this, the structure for concentrating management resources on the three businesses of Franchise, Real Estate Sales, and Finance has been established, building the foundation for improving capital profitability.

The company continues the leaseback asset securitization scheme utilizing 18 special purpose companies (limited liability companies). Total assets of the special purpose companies stood at ¥54,005 million at the end of the cumulative third quarter. The company also changed the holding purpose of certain assets from fixed assets to real estate for sale (buildings and structures of ¥428 million and land of ¥1,311 million), promoting balance sheet efficiency.