Living Platform,Ltd.

Business Details

The only segment of the Group. Comprises four areas: the Nursing Care Business (paid nursing homes, group homes, etc.), the Disability Support Business (Type B continuous employment support, communal living assistance, etc.), the Childcare Business (licensed nursery schools, etc.), and Other Businesses (Food Service, Recruitment Advertising, Real Estate, etc.). Major customers are the National Health Insurance Federations in Hokkaido and Kanagawa Prefecture (approximately 27% of total sales). The segment aims to build a sustainable social security system through the formation of communities where the elderly, people with disabilities, and child-rearing generations coexist.

Recent Overview

Cumulative Q3 sales of ¥16,408 million and operating profit of ¥445 million, a substantial increase in profit; full-year forecast maintained

For the cumulative nine months of FY2026 (ending March 2026) (April to December 2025), sales were ¥16,408 million (up 15.6% year on year), operating profit was ¥445 million (up 99.4% year on year), ordinary profit was ¥453 million (up 120.6% year on year), and quarterly net income attributable to owners of the parent was ¥275 million (up 72.8% year on year). The occupancy rate of paid nursing homes and similar facilities in the Nursing Care Business improved to 88.6% (90.2% for facilities open one year or more), the occupancy rate of disability support group homes was 84.7% (86.2% for facilities open one year or more), and the occupancy rate of licensed nursery schools improved to 89.2%. In October 2025, the company established Agri Platform Ibaraki Co., Ltd., a qualified agricultural land holding corporation, to stabilize food ingredient procurement. The company plans to pay its first-ever dividend this fiscal year (annual dividend of ¥5.00). The full-year earnings forecast (sales of ¥21,495 million, operating profit of ¥547 million) remains unchanged.

Key Products

Growth Drivers

• Continued expansion of demand for nursing care services amid an aging rate of 29.3% (an all-time high)
• Improvement in occupancy rates at existing facilities (paid nursing homes, etc.: 88.6% at end of Q3, up from 84.3% at the end of the prior fiscal year)
• Improved profitability through price pass-through (revision of usage fees) and progress in obtaining additional fee add-ons
• Expanded hiring of foreign workers with specified skills (9.4% of full-time employees as of the end of the prior fiscal year) to secure staff and curb turnover
• Facility expansion driven by both new openings and M&A (11 new establishments opened and 2 facilities transferred in the prior fiscal year)
• Improved occupancy rates at Disability Support Business group homes and expansion of daily life care and residential support housing services

Risks

• Continued cost pressure from ongoing increases in energy prices, food ingredient costs, recruitment costs, and construction costs
• Chronic labor shortages in the nursing care and childcare fields (an estimated 2.4 million care workers will be needed by 2026)
• Low occupancy rate for Type B continuous employment support in the Disability Support Business (75.5% at end of Q3), making profitability improvement a challenge
• Shrinking opportunities for new openings due to the maturation of the childcare market (increasing suspension of new public solicitations by municipalities amid declining waitlisted children)
• Large interest-bearing debt balance (long-term borrowings of ¥5,006 million plus short-term borrowings of ¥228 million), posing interest rate risk
• Equity ratio remains low at 17.7%, with financial leverage continuing to remain high