KOSAIDO Holdings Co., Ltd.

Tokyo Hakuzen, with a history of over 100 years, operates 6 comprehensive funeral halls in Tokyo and handles approximately 70% of cremations in Tokyo's 23 wards. Even after becoming a wholly owned subsidiary in 2020, it has continued to expand ceremony halls and renew services. In FY2026 (ending March 2026), Funeral Public Interest Services segment profit was ¥1,191 million, maintaining a high profit margin of approximately 21.9%. The company possesses entry barriers backed by regulation, location, and brand that are difficult for competitors to replicate in a short period.

In FY2026 (ending March 2026), Information Segment profit was ¥655 million (up 66.0% year on year), with the profit margin improving to 4.4%. In addition to steady performance in publishing and printing, the number of orders received expanded due to an increase in negotiated contracts for BPO Service targeting government agencies and local municipalities. Cost structure improvements from the withdrawal from newspaper printing and reductions in outsourcing costs contributed to the improved profit margin, with the accumulated track record in the administrative field serving as a source of competitive advantage.

In November 2025, the company made Yokohama Seien and Ceremolife subsidiaries, expanding into the Kanagawa area. It newly opened Musashino Hall and Koto Hall, and the number of funeral services conducted under the "Tokyo Hakuzen no Osoushiki" brand increased even amid a decline in the number of deaths. Funeral Services Revenue segment sales were maintained at ¥10,490 million (up 0.5% year on year). The majority of the total capital expenditure of ¥3.4 billion planned for FY2026 (ending March 2026) has been allocated to the expansion of ceremony halls, demonstrating a track record of continuous business expansion.

Acquired Yokohama Seien (Ossuary Business) and Ceremony Life (Funeral Services) during the period, expanding into the Kanagawa area. Newly opened Musashino Hall and Koto Hall, with orders progressing steadily. Hall capacity is being expanded through the start of the additional ceremony hall at Kirigaya Saijo and the commencement of the floor expansion at Yotsugi Saijo.

Decided to introduce DSR, a small-lot publishing system utilizing digital printing presses, opening up a new revenue source. Promoting withdrawal from the newspaper printing business to improve the cost structure. In FY2026 (ending March 2026), Information Segment profit reached ¥655 million, up 66.0% year on year.

Achieved a turnaround to profitability with revenue growth through a concentrated strategy centered on Overseas Human Resource Placement "KosaidoGlobal". Expansion of the staffing business in metropolitan areas has progressed, resulting in higher revenue and profit. The Housekeeping Business remains in the training and investment phase and continues to post losses. Segment loss narrowed from ¥158 million in the prior period to ¥71 million.

Abolished the conventional rolling-format medium-term management plan and is newly formulating a long-term vision looking beyond five years, together with a discontinuous growth strategy. Has set as policy a commitment to strengthening dialogue with the capital markets and achieving sustained enhancement of corporate value, with plans to disclose the plan once finalized.

As of March 31, 2026, the tradable share ratio stood at 33.6%, below the Prime Market's 35% requirement. Plans to disclose a "plan for compliance with listing maintenance criteria" by June 30, 2026. The share buyback (¥6,262 million) was in part a factor lowering the tradable share ratio, making the redesign of capital policy an issue to be addressed.