CONSOLITATED
FINANCIAL HIGHLIGHTS

The number of weddings performed at company-operated venues (including TRUNK) reached 6,994 couples. This was due to the consolidation of four company-operated stores and six banquet halls last fiscal year to optimize management resources in response to market changes, as well as lower-than-expected wedding volumes during the third quarter (October–December 2025). The average wedding price reached 4,159 thousand yen. This increase was driven by successful sales promotion strategies for high-value-added product groups, including premium-priced cuisine and beverages, as well as other items such as bouquets arrangements, floral decorations, and table coordination. Furthermore, the outsourcing (consulting) of wedding operations at facilities managed by other companies, such as city hotels, continued to perform well, with the number of cases handled reaching 1,988 cases, exceeding the usual level. As a result, domestic wedding business sales reached 34,522 million yen. Operating profit was 3,004 million yen, primarily due to increased investments in personnel and advertising, among other areas, aimed at expanding future orders.

In response to the recent decline in advertising return on investment, we have been optimizing our advertising methods and adjusting ad volume since the first quarter of the previous fiscal year. However, we did not achieve the anticipated results, leading to a decrease in inquiries and orders last fiscal year. This impact has become apparent starting from the first quarter of the current fiscal year. To respond promptly to the decline in orders, the Company once again intensified our advertising efforts since the second quarter of the previous fiscal year. As a result, we have steadily increased the number of inquiries leading to new orders.

Furthermore, the Company is actively expanding its high-value-added consulting business by maximizing the expertise cultivated in its wedding business. Following the signing of a wedding consulting contract with Mitsubishi Estate Hotels & Resorts Co., Ltd. in June 2025, the Company partnered with RRH Kyoto Operations LLC, which operates the Rihga Royal Hotel Kyoto, in October 2025. The Company commenced operations for the hotel's wedding division in January 2026. Also in October, the Company formed a business alliance with Hong Kong's major travel agency "EGL Tours" in the inbound wedding sector. Concurrently, we opened "UNWEDDING Nakanoshima," a specialized casual wedding facility in Osaka's Nakanoshima area, marking our new entry into the casual wedding business. In December, we acquired two stores in Nagoya from L.FLAT Inc.

Through these initiatives, our group is vigorously pursuing the expansion of our existing business share while also developing new markets beyond our traditional boundaries and broadening our business scope.

At TRUNK(HOTEL) CAT STREET, operated by our group, we temporarily reduced operational capacity during certain periods in August as part of a strategic promotion. Additionally, at TRUNK(HOTEL) YOYOGI PARK, we conducted back-of-house renovations during the first quarter to upgrade facilities and improve the working environment for staff. These factors led to a temporary decrease in operational opportunities. Meanwhile, we continued to capture lodging demand against the backdrop of robust inbound demand, maintaining high levels for both average daily rate (ADR) and occupancy rate.