KATITAS (8919) investor relations material

Executive summary

• Net sales for 1Q FY2026 rose 25.4% year-over-year to ¥43,961 million, with operating profit up 28.4% to ¥5,562 million and profit attributable to owners of parent up 28.7% to ¥3,678 million.

• The number of properties sold increased 20.5% year-over-year to 2,381, driven by strong demand for affordable, refurbished homes amid rising new home prices.

• Purchases of properties rose 25.8% year-over-year to 2,722, supporting a 9.1% increase in real estate inventory compared to the previous fiscal year-end.

• Inventory real estate expanded 36.3% year-over-year, reflecting active purchasing and strong sales outlook.

• No significant impact from the 2026 Kumamoto Earthquake on business performance has been identified.

Financial highlights

• Gross profit margin was 23.5%, down 0.5pt year-over-year; adjusted gross profit margin was 24.4%, down 0.4pt.

• SG&A expenses increased 16.6% year-over-year, mainly due to higher personnel costs and increased human capital investment.

• Basic earnings per share for the quarter were ¥47.01, up from ¥36.55 a year earlier.

• Total assets as of June 30, 2026, were ¥100,397 million, up from ¥93,245 million at the previous fiscal year-end.

• Net assets increased to ¥53,536 million, with an equity-to-asset ratio of 53.3%.

Outlook and guidance

• FY2026 full-year guidance: net sales ¥177,400 million, operating profit ¥21,000 million, net income ¥14,000 million.

• Progress toward management plan targets is slightly ahead of expectations; operating profit for 1H expected to exceed initial budget.

• Dividend payout ratio set at 50% or more, with a forecast annual dividend of ¥90 per share for FY2026.

• No changes have been made to previously announced earnings forecasts.

• The impact of the 2026 Kumamoto earthquake is expected to be limited due to geographic dispersion and seismic reinforcement.