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 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.

In the real estate investment market in the Greater Tokyo area, our mainstay market, there was no major change in the lending attitude of the financial institutions following the BOJ's change in monetary policy. The office rents are on the rise and the investment demand from real estate investors continues to be firm. On the other hand, there is concern for the decline of demand for purchasing residentials due to the rise of mortgage rates and the continuing rise of construction costs. We are proceeding acquisitions cautiously considering such factors.

Under such business environment, each of our business performed well. The Group's profit for the period for the nine months ended August 31, 2024 achieved the full-year target ahead of schedule, especially due to the profit margin of the sales of properties exceeding the initial expectation in the Revitalization Business and due to the rise in the occupancy rate and the average daily rate driven by the inbound demand in the Hotel Business. Furthermore, in the Property Management Business, the number of properties under management increased due to the acquisition of a property management company in Chiba, which contributed to an increase in profits. In the Fund and Consulting Business, we kept the balance of assets under management at a high level with a total of over \2.4 trillion, while performance stayed strong due to earning fees from trading activities.

In light of recent business performance, we revised the full-year earnings forecasts for the fiscal year ending November 30, 2024, announced at the beginning of this fiscal year. Revenue forecast was revised downward due to the strategic revision of the sales plan in the Revitalization Business. On the other hand, profit forecasts were revised upward mainly due to the sales of properties with profit margin exceeding the initial forecast in the Revitalization Business and the Hotel Business performing well. The revised forecasts are revenue \81.9 billion (down 11.1% YoY), operating profit ¥18.1 billion (up 2.7% YoY), profit before tax ¥17.0 billion (up 3.0% YoY), profit attributable to owners of the parent ¥11.7 billion (up 4.6% YoY). The dividend per share was increased to \77 (up \4 YoY).

Going forward, we will work to enhance our corporate value to meet the stakeholders' expectations. We would appreciate your continued support.