CHANGE Holdings (3962) investor relations material

Executive summary

• Q1 revenue increased by 9.9% year-over-year to ¥10,887 million, driven by growth in both core business segments.

• Operating profit declined 19.0% year-over-year to ¥491 million, impacted by shareholder benefit program costs and higher expenses; excluding these, profit rose 26.0%.

• Profit attributable to owners dropped 76.7% to ¥98 million, reflecting higher costs and lower finance income.

• The company continued to invest in M&A, digital transformation, and regional revitalization, consolidating new subsidiaries to support future growth.

• Hometown tax progress is low but on track, with donations expected to concentrate in Q3.

Financial highlights

• Q1 revenue: ¥10,887 million, up 9.9% year-over-year.

• EBITDA: ¥1,200 million, down 6.8% year-over-year; EBITDA margin fell to 11.0%.

• Operating profit: ¥491 million, down 19.0% year-over-year; EPS: ¥1.41, down 76.8%.

• Profit attributable to owners: ¥98 million, down 76.7% year-over-year.

• Gross profit rose to ¥5,043 million from ¥4,526 million year-over-year.

Outlook and guidance

• Full-year revenue forecast: ¥57,823–59,000 million (+9.5% to +11.7% YoY).

• Operating profit forecast: ¥11,500–12,500 million (+2.4% to +11.4% YoY).

• No revisions to previously announced earnings or dividend forecasts.

• Hometown tax market expected to rebound in Q3 and exceed prior year by year-end.

• Dividend per share forecast: ¥26.0, up ¥3.0 year-over-year.