We wish to express our heartfelt appreciation for our shareholders for their excellent cooperation.

The Tosei Group conducts a wide range of real estate-related businesses in line with its corporate philosophy "To create new value and inspiration in all aspects of real estate as a global-minded group of seasoned professionals".

The business environment surrounding the Group in the recent years has become increasingly uncertain amid revolutionary changes, including the escalation of climate change issues, the emergence of geopolitical risks, the declining birthrate and the aging of society in Japan, the acceleration of behavioral changes triggered by the COVID-19 pandemic, and rapid advances in digital technology. In order to adapt to such changes in the business environment, ensure the Group's sustainable growth over the future, and enhance corporate value by contributing to the realization of a sustainable society, we formulated "Tosei Group Long-Term Vision 2032" and the medium-term management plan "Further Evolution 2026" (December 2023 - November 2026), which started from the fiscal year ended November 30, 2024, and were announced in January 2024.

What we aim to be in the Tosei Group Long-Term Vision 2032 is as follows: "We will contribute to the realization of a sustainable society as a unique real estate portfolio manager with diverse solution capabilities". We will further strengthen and expand the Tosei Group's core competencies to achieve both business growth and contribution to sustainable society.

During the fiscal year ended November 30, 2024, the real estate investment market in the Greater Tokyo area, our mainstay market, active transactions continued under the favorable funding environment. As for the property market, office rent, which recovery was slow, turned upward and the hotel operation became active, driven by the increase of inbound customers.

Under such business environment, the business performance for the fiscal year ended November 30, 2024 hit record highs for both revenue and profit, with revenue ￥82.1 billion (+3.5％ YoY), operating profit ￥18.4 billion (+13.7％ YoY), profit before tax ￥17.3 billion (+13.4％ YoY), profit attributable to owners of the parent ￥11.9 billion (+14.1％ YoY). In the Revitalization Business and Development Business, we realized property sales with high profit margin by utilizing our strength in diverse real estate solution. Further, in the Hotel Business, we captured strong inbound demand, resulting the overall revenue to exceed well over our initial plan.

As for the Fund and Consulting Business, which is our growing business, the assets under management have exceeded ￥2.4 trillion. We believe that we made a good start in the first year of the medium-term management plan. Based on such strong performance of the first year, we have revised the management indicators of the medium-term management plan (upward revision of the profit plan). We will continue to strive each business segment forward to achieve the medium-term management plan as well as to contribute to the realization of a sustainable society through our business activities.

For the fiscal year ending November 30, 2025, our business forecasts are as follows: revenue ￥102.0 billion (+24.2％ YoY), operating profit ￥20.6 billion (+11.6％ YoY), profit before tax ￥18.8 billion (+8.3％ YoY), profit attributable to owners of the parent ￥12.8 billion (+6.9％ YoY). We will continue to monitor the real estate financial market such as the prolonged soaring construction cost and the impact of the interest rate hike by the BOJ, and the changes in the investment stance of domestic and overseas real estate investors. While on the business side, we will strive acquisitions of good quality real estate and land for developments for our future growth as well as to strategically proceed developments of wood-frame rental apartments and detached houses which cost hikes are relatively moderate, to mitigate the impact of the soaring construction cost. With regards to building the foundation for the sustainable growth of our group, we will strive to improve business efficiency by utilizing DX and promoting human resource development, as well as to create a work environment where diverse employees can utilize their individuality and demonstrate their capabilities, in order to build a stronger management base.

We would appreciate your continued support.