SUN LIFE HOLDING CO.,LTD.

Business Details

The Hotel & Bridal Business is operated by Sun Life Service Co., Ltd. Its main facilities are Hotel Sun Life Garden (Hiratsuka City) and The Wings Ebina, offering wedding, banquet, and accommodation services, as well as operating an EC site and Photo Studio. The segment primarily targets local customers including Mutual Aid Society members, and seeks synergies with the Group's ceremonial services. Through cost ratio reduction via in-house operations and an increase in the number of weddings held, the segment achieved a turnaround to operating profit in FY2026 (ending March 2026).

Recent Overview

In FY2026 (ending March 2026), revenue increased 15.0% year on year and the segment achieved a turnaround to operating profit

In FY2026 (ending March 2026), Hotel Business revenue was ¥1,121 million (up 15.0% year on year), and operating profit was ¥12 million (versus an operating loss of ¥13 million in the prior period), marking a turnaround to profitability. In addition to an increase in the number of weddings held, cost ratio reduction through in-house operations and other measures were effective. On the other hand, cost pressures such as rising prices continue, and revitalizing and achieving profitability at The Wings Ebina remains a key challenge for the next period.

Key Products

Growth Drivers

• Continuation and deepening of cost ratio reduction effects through in-house operations
• Capturing wedding and banquet demand through enhanced information dissemination utilizing SNS tools
• Increasing average customer spending through the creation of original plans and items tailored to customer needs
• Expanding new revenue sources through new product development (including original merchandise) and enhanced sales in the EC division
• Promoting measures to revitalize and achieve profitability at The Wings Ebina
• Expanding the service scope through participation in new businesses

Risks

• Continued upward pressure on energy and raw material costs due to rising prices
• Long-term declining trend in the number of weddings (due to the declining birthrate and later marriages)
• Intensifying price competition with competing hotel and bridal facilities
• Risk that profitability improvement at The Wings Ebina is delayed
• Risk of increased depreciation expenses associated with higher capital expenditure (¥148 million in FY2026 (ending March 2026))
• Decline in consumer sentiment due to deterioration in the domestic economy against the backdrop of U.S. trade policy and other factors

Business Details

Centered on funeral services, memorial services, embalming, pet funeral services, cemetery management, and Buddhist altar and ritual goods sales, the segment promotes the building of long-term relationships with customers through the End-of-Life Comprehensive Support Business "Life Relief." Operating through a four-area group structure covering Shonan, Sagamihara, Ken-o, and West Tokyo, the segment's main market areas are Kanagawa Prefecture and Tokyo, providing comprehensive end-of-life services to local customers, including Mutual Aid Society members. In fiscal 2025, five new Family Hall locations were opened, strengthening the response to demand for family-style funerals.

Recent Overview

The number of funerals handled decreased due to a decline in the number of deaths in key areas, and operating profit decreased 5.8% year on year due to increased costs from new ceremonial halls.

In FY2026 (ending March 2026), Ceremonial Business revenue was ¥10,212 million (up 0.1% year on year), remaining essentially flat. While the number of funerals handled decreased due to a decline in the number of deaths in key areas, natural burial, estate clearance, and inherited real estate-related businesses increased, supporting revenue. On the other hand, increased costs from newly opened Family Halls in Hadano, Ebina, Fujisawa, Yamato, and Hachioji between June 2025 and February 2026 pressured profit, causing operating profit to decline to ¥2,129 million (down 5.8% year on year) and operating margin to fall to 20.8% (from 22.2% in the prior period).

Key Products

Growth Drivers

• The number of deaths is projected to continue increasing until around 2040, and mid-term expansion of funeral demand is expected
• Five new Family Hall locations were opened in fiscal 2025 to address demand for family-style funerals, expanding the facility network
• Expansion of the End-of-Life Comprehensive Support Business "Life Relief" to promote long-term customer relationship building and new customer acquisition
• Increasing the number of service requests and building customer communities through strengthened TV commercial and web public relations systems and new business development
• Strengthening synergies between the cemetery business (60th anniversary initiatives and development and sale of the "Enso" product tailored to diversifying needs) and existing businesses
• Continued service provision and enhanced after-sales follow-up to existing customers leveraging the Mutual Aid Society membership base

Risks

• Decrease in the number of funerals handled due to declining deaths in key areas (structural risk)
• Intensifying competitive environment due to industry consolidation (heightened competition with major funeral chains)
• Downward pressure on unit prices due to trends toward smaller-scale and simplified ceremonies in ritual culture
• Risk that increased fixed costs from new ceremonial hall openings will pressure profit in the short term
• Rising energy and raw material costs due to price increases
• Rising labor costs (increased human capital investment including compensation improvements and recruiting expenses)
• Mid-to-long-term risk of demand contraction as the number of deaths is expected to decline after 2040

Business Details

The segment operates home care support services, short-term and outpatient nursing care services, fee-based nursing care homes, and residential fee-based elderly homes. Its main customers are elderly individuals and their families, and expanding senior life support by leveraging synergies with the Group's Mutual Aid Society membership base is a stated strategic priority. In FY2026 (ending March 2026), revenue accounted for approximately 16.1% of consolidated revenue, making it the Group's third-largest segment. In December 2025, the day care service facility "Emmy's Shonan Hiratsuka" was opened through a business transfer, continuing the segment's business expansion.

Recent Overview

Despite revenue growth, operating profit fell 24.8% year on year to ¥85 million due to rising labor costs

In FY2026 (ending March 2026), the Nursing Care Business achieved revenue growth to ¥2,276 million (up 5.2% year on year) due to increased facility occupancy rates and service usage. On the other hand, operating profit fell significantly to ¥85 million (down 24.8% year on year) due to rising labor and recruiting costs associated with compensation improvements. In December 2025, the day care service facility "Emmy's Shonan Hiratsuka" was newly opened through a business transfer, expanding the service provision framework. Segment assets decreased 12.7% from the end of the prior period to ¥1,469 million.

Key Products

Growth Drivers

• Continued improvement in facility occupancy rates and increase in service usage
• Structural expansion of nursing care demand driven by the progressing decline in birthrate and aging population (the number of deaths is expected to increase until around 2040)
• Customer acquisition synergies leveraging the Group's Mutual Aid Society membership base
• Promotion of M&A to expand the senior business scope (explicitly stated as a management policy)
• Building a personnel supply framework through strengthened recruitment of overseas talent and new graduates
• Higher unit prices and improved profitability through obtaining specified facility premiums, among other measures

Risks

• Profit margin pressure from rising labor costs, including compensation improvements and recruiting expenses (operating profit down 24.8% year on year in FY2026 (ending March 2026))
• Risk from nursing care fee schedule revisions (impact on revenue structure due to policy changes)
• Constraints on service provision capacity due to chronic shortage of nursing care personnel
• Increased costs across various categories (food materials, utilities, etc.) due to rising prices
• Limited investment capacity due to shrinking segment assets (¥1,469 million as of end of FY2026 (ending March 2026), down 12.7% year on year)

Business Details

The "Others" segment consists of the Small-Amount Short-Term Insurance Business and the House Cleaning business (cleaning services), among others. It is positioned to complement the three main segments (Hotel, Ceremonial, and Nursing Care) and accounts for approximately 3.8% of total Group revenue (FY2026 (ending March 2026) results). The House Cleaning business is promoting the capture of demand for cleaning and estate clearance, and is characterized by leveraging the customer base through Group synergies with the Ceremonial and Nursing Care businesses.

Recent Overview

Revenue rose 4.0% year on year to ¥540 million due to increased demand for cleaning and estate clearance, while operating loss narrowed to ¥27 million.

In FY2026 (ending March 2026), against the backdrop of increased demand for cleaning and estate clearance, the House Cleaning business's revenue from external customers rose 4.0% year on year, from ¥519 million to ¥540 million. On the other hand, operating loss was ¥27 million (versus an operating loss of ¥31 million in the prior period) due to increased real estate acquisition costs and facility repair costs, though the loss narrowed compared to the prior period. The balance of advance receipts from prepaid specific transactions was ¥25,309 million, down ¥409 million from the end of the prior period, continuing its gradual downward trend. An impairment loss of ¥2,420 thousand was recorded in the company-wide category.

Key Products

Growth Drivers

• Continued increase in demand for cleaning and estate clearance in the House Cleaning business
• Capturing Group synergy cases such as estate clearance and move-out cleaning through collaboration with the Ceremonial and Nursing Care businesses
• Promoting cross-selling to the Group's various businesses leveraging the Mutual Aid Society membership base
• Expanding sales of small-amount short-term insurance products to the funeral and nursing care customer base
• Expanding the pool of households with advance reservations through the introduction of the free registration "Life Club" program
• Expanding and strengthening the nursing care facility referral service "Mitsukeru Concier"
• Expanding the customer base through participation in exhibitions, festivals, and other events

Risks

• Risk of continued operating losses due to increased fixed costs from real estate acquisition expenses and facility repair costs
• Profit pressure from building up policy reserves in the small-amount short-term insurance business
• Risk of contraction in the Mutual Aid Society business due to the gradual downward trend in the balance of advance receipts from prepaid specific transactions (¥25,309 million as of end of FY2026 (ending March 2026))
• Lack of independent growth drivers given the segment's complementary position within the Group, making it susceptible to the impact of deteriorating performance in the main segments
• Revenue volatility risk in the House Cleaning business due to reliance on high-unit-price jobs