Relo Group, Inc.

Over the 14-year span of the first through third Olympic Strategy initiatives, the number of managed units expanded more than fourfold to 270,000, achieving the No.1 position in both market share and profit scale. The company has established a stock-type revenue structure in which the accumulation of managed units directly drives growth in management fee income and relocation support service usage, giving it a scale advantage that competitors cannot easily replicate in a short period.

The "Welfare Benefits Club," launched in 1993, has over 30 years of operating track record and has built a large-scale corporate member base. This member base functions as a starting point for cross-selling into the Tourism Business (hotel customer acquisition), Rental Management Business, and Overseas Assignment Support, serving as a proprietary asset that generates revenue synergies across the group as a whole.

Since 2013, the company has rolled out "Rental Management Nationwide 7-Block Expansion," bringing over 50 rental management companies into the group. The number of managed rental units has reached over approximately 120,000, enabling knowledge-sharing and service integration under the common brand "Relo no Chintai." In an industry facing a serious shortage of business successors, the company has established a unique position as a receiver for business succession.

Continuing to expand the membership base of the Welfare Benefits Outsourcing Service and accumulate leased company housing units under management. In FY2026 (ending March 2026), the Outsourcing Business achieved revenue of ¥80,769 million (up 8.8% year on year) and operating profit of ¥22,899 million (up 3.4% year on year), functioning as the core of the Group's earnings. Corporate demand for enhanced employee benefits is expanding against the backdrop of a worsening labor shortage, providing a favorable external environment.

Accumulating rental management units under the "Rero no Chintai" brand to expand recurring revenue. In FY2026 (ending March 2026), revenue increased to ¥52,956 million (up 2.3% year on year), but operating profit declined to ¥8,012 million (down 1.9% year on year) due to increased costs from expanded human capital investment. Improving profitability while capturing demand related to regional revitalization and business succession remains a challenge.

Expanding the operation and revitalization of small and mid-sized regional hotels and ryokan, as well as the Vacation Home Timeshare Business. In FY2026 (ending March 2026), revenue contribution from newly opened facilities and steady hotel occupancy rates led to increased revenue of ¥16,399 million (up 4.0% year on year) and increased operating profit of ¥4,344 million (up 3.5% year on year). Continuing to capture regional tourism demand by leveraging the external tailwind of expanding inbound demand.

Raising the ROE target for the medium-term management plan period (FY2026-FY2029, ending March 2026 to March 2029) from the previous 20% or higher to 25-30%. Newly introducing a policy targeting a dividend payout ratio of 50% and a total return ratio of 60% (including share buybacks). Also introducing an interim dividend, moving to twice-yearly dividend payments. ROE for FY2026 (ending March 2026) reached 27.1%, achieving the target range.

At the Board of Directors meeting on May 14, 2026, resolved to repurchase the entire outstanding balance of the Euro-yen denominated convertible bond-type bonds with stock acquisition rights maturing in 2027 (face value ¥23.0 billion, conversion price ¥3,287.1). The bonds are scheduled to be cancelled after repurchase. This is expected to reduce dilution risk against the dilution-adjusted share count of 158,566,217 shares and contribute to improved EPS.