Hulic : Summary of Financial Results Presentation for FY2025 (January 1, 2025 -December 31, 2025)

This is Maeda, the President of Hulic. Thank you very much for joining today's financial results presentation meeting.

Today, I will present the financial results for FY2025. The new Medium- and Long-term Management Plan (2026-2036) will be explained separately on February 3.

• Exceeded the revised forecast. All profit items increased by over 10%

  • Operating profit : JPY186.8 bn, +14.3% YoY

  • Ordinary profit : JPY172.9 bn, +12.0％ YoY

  • Profit attributable to owners of parent: JPY114.3 bn, +11.7％ YoY

• Annual dividend will be 62.0 yen, +2.0 yen from the revised forecast (Oct. 28), +8.0 yen YoY, with payout ratio of 41.1%

• All financial indicators met the aiming level

Here are the highlights of the financial results for FY2025.

Ordinary profit was JPY172.9 bn, exceeded the revised earnings forecast in October.

All profit items increased by over 10%, reaching record-high.

Regarding dividends, we further increased the annual dividend by an additional

+2.0 yen from the upward revision in October, resulting in an annual dividend of

62.0 yen, an increase of +8.0 yen YoY.

The dividend payout ratio was 41.1%, marking the first time entering the 41% range.

All financial indicators remained within our aiming level.

ROE also stayed at a high level of 13%, continuing its strong performance.

• Gross investment of JPY760.0 bn. Progress in investments in high-quality real estate drove leasing income above plan

  
  
  

• CRE acquisitions, exchange deals with our public REIT, and contributions to our private REIT and funds progressed smoothly

• Acquired 5 properties in Ginza, our focus area

• Development & reconstruction:

• International Business:

• Raysum: Multiple joint investments executed; results outperformed the plan

  
  
  

• Hotels/Ryokans: 3 Gate Hotels and 1 FUFU opened; result outperformed the plan

  
  
  

• Child Education: The 1st Kodomo Depart opened in

• Executed 2 M&A deals including Cook Deli

• Environment: Progressed toward commercialization of the renewable electricity business

• New business domains: Progress in Narita Development Project (WING NRT), Makuhari Arena

• Higher lease termination income

  
  
  

• Offset higher interest expenses from rising rates

2

Maximizing profits

from completed projects

and expanding international investments

1

Portfolio

Restructuring

4

FY2025 Executive Summary② Initial Forecast Change

Ordinary Profit

Initial Forecast Change

3

Achieving profit growth

on a consolidated basis

Result Change

+6.0bn

-

Impacts of higher

interest rates and debt increase

-

172.9bn

+0.1bn +8.9bn

+3.0bn

154.3bn

2024

2025

Compared with the initial forecast, portfolio restructuring contributed +JPY3.0 bn and profit growth on a consolidated basis added +JPY6.0 bn, resulting in ordinary profit of JPY172.9 bn, an increase of JPY8.9 bn.

In portfolio restructuring, gross investment reached JPY760.0 bn, as investments progressed steadily. Leasing income exceeded the plan, supported by solid progress including the acquisition of 5 properties in the Ginza area.

In development and reconstruction, 8 projects were completed, including flagship properties such as Hulic Ginza Building. In the international business, 16 deals totaling JPY70.0 bn were confirmed.

In profit growth on a consolidated basis, Raysum outperformed the plan by realizing synergies such as multiple joint investments. In the hotel and ryokan business, we initially planned lower profit as 3 openings at THE GATE HOTEL and 1 opening of FUFU were expected to elevate the related costs, however, it posted higher results than the plan. In the child education business, the first Kodomo Depart facilities-Nakano and Tama Plaza-opened in April.

In non-operating income/expenses, although interest expenses increased due to rising interest rates, this was offset by an increase in lease termination income, resulting in performance landing above the plan.

• M&A: Consolidation of Cook Deli

• Development / Reconstruction: Construction of projects in prime locations such as G8 Development Project, Aoyama Building Reconstruction Project, and the 1st R&D development, Minami-watarida North Side of the Northern District Project, has begun

• Corporate Investments: Made an additional investment in satellite-related company Synspective, as an investment in start-up companies that address social issues

• International Business: 7 deals (JPY35.0 bn) were confirmed/committed in 4Q

• Child Education Business: Kodomo Depart Azabu began construction

• Environment: 2 sites of grid scale battery storage started operation

• External Evaluation: For 2 consecutive years, rated 4.5 stars in Nikkei SDGs Management Survey and selected for the 2025 Climate Change "A" List by the CDP

Here are the highlights for 4Q.

In M&A, we made Cook Deli-a company that provides "ready-to-eat frozen meals" that help address labor shortages at elderly-care facilities-a consolidated subsidiary in November. We expect this business to continue growing going forward.

In development and reconstruction, we commenced construction on major flagship projects in central Tokyo, including G8 Development Project and Aoyama Building Reconstruction Project. Construction of the first R&D development located in Minami-Watarida, has also begun.

In corporate investments, we are investing in start-ups that address social issues and are expected to generate future growth. We made an additional investment in Synspective, which operates a satellite-related business, becoming its largest shareholder. The company has also begun securing defense-related orders, and we expect it to achieve profitability at an early stage.

• Plan to achieve 18th consecutive year of record-high profit and dividend per share since the listing, sustaining high growth in all profit items

• Increase annual dividend by 5.0 yen, payout ratio 42.0% (plans to enhance shareholder returns)

For FY2026, we forecast ordinary profit of JPY185.0 bn, representing an increase of JPY12.0 bn.

We plan to further enhance shareholder returns with a dividend payout ratio of 42% and an annual dividend of 67.0 yen a YoY increase of 5.0 yen.

In addition to having a clear path toward achieving the ordinary profit target of JPY180.0 bn set in the previous Medium- and Long-term Management Plan, we formulated a new Medium- and Long-term Management Plan (2026-2036) to address changes in the business environment, including rising interest rates, the full-scale impact of population decline, and escalating construction costs.

The announcement is scheduled for February 3.