The Company is currently carrying out large-scale investments aimed at strengthening our product offering, including renovations and expansions of guest rooms, banquet halls, and other facilities. Due to temporary closures associated with these investments and one-time investment-related expenses, results for this period were as follows:

Consolidated net sales increased by ¥0.8 billion year-on-year to ¥40.7 billion. Operating income decreased by ¥0.6 billion year-on-year to ¥6.2 billion, and ordinary income decreased by ¥0.7 billion year-on-year to ¥6.0 billion. Net income attributable to owners of the parent company increased by ¥3.4 billion year-on-year to ¥8.0 billion.

Note that when the negative impact of renovations (approximately ¥1.4 billion) are excluded, the results show year-on-year growth in profits.

In our WHG business, we renovated the guest rooms and the lobby at Tokyo Bay Ariake Washington Hotel, improving their features. At Canal City Fukuoka Washington Hotel, we conducted a full renovation over a five-month closure period (grand reopening on September 1, 2026), including the installation of rooms with bunk beds designed for groups and families, strengthening our ability to meet diverse accommodation needs.

In addition, as part of our business alliance with Washington Hotel Co., Ltd., we have begun mutual use of accommodation privileges for shareholders of both companies. We will leverage both companies' networks across Japan to provide greater convenience and value to our shareholders.

Going forward, we will continue to enhance the overall appeal of the Group through renovations and expansions.

In our luxury & banquet business, we are starting to see results from our ongoing banquet hall renovations at Hotel Chinzanso Tokyo, which began the year before last. In particular, our wedding department has seen significant growth in both the number of ceremonies and the number of guests, as well as higher unit prices for food, beverages, and floral decorations, driven by the synergistic effects of our enhanced product offerings. Furthermore, a new banquet hall, “Foresta,” which offers views of the garden and sky, is scheduled to open in October this year. This is expected to further boost our wedding department.

At Hotel Chinzanso Tokyo, the integration of the garden and the hotel brand is one of the reasons why customers choose this hotel for various departments. We will continue to enhance the experiential value centered on the garden and provide high-value-added services.

In our resort business, Hakone Kowakien Ten-yu achieved high unit prices and high occupancy rates through seasonal events and the introduction of free-flow formats and limited-time seasonal menus at its restaurants, which enhanced added value. At Hakone Hotel Kowakien, expansion work to increase the number of rooms is progressing smoothly, and an earlier restaurant expansion project has been completed, with operations beginning in June.

At Hakone Kowakien Yunessun, we will also promote the growth of Hakone Kowakien as a tourist destination through collaborations with popular anime titles, evening events such as Lantern Night, and new experiences developed in partnership with the local community.

In addition to these efforts to strengthen functions and enhance added value across our businesses, we strengthened our overseas sales activities, particularly in Europe, the United States, and Australia, capturing strong inbound demand. This contributed to an increase in ADR (average daily rate).

Under our management principle that "people are the foundation of our company and that it is through them that value is created," we are working to create a workplace where employees can achieve both job satisfaction and ease of working. Investments in human resources and enhanced internal communication have been fruitful, with employee motivation at 3.73 points, an increase of 0.31 points from the previous survey. We are making steady progress toward our 2028 target of 3.75 points.

Going forward with the knowledge that highly engaged employees are essential to delivering high-value-added services, we will continue refining the unique experiential value that only Fujita Kanko can offer, while promoting productivity improvements through DX. Through these efforts, we aim to achieve sustainable growth and enhance corporate value. We sincerely ask for your continued support as shareholders.

Based on our strong performance in the first half of the year, we have revised our full-year earnings forecast. The second-half forecast remains unchanged in light of current booking trends. The revised full-year consolidated forecast is as follows: net sales of ¥84.0 billion (an increase of ¥1.0 billion from the previous forecast), operating income of ¥13.2 billion (an increase of ¥1.2 billion), ordinary income of ¥12.8 billion (an increase of ¥1.2 billion), and net income attributable to owners of the parent company of ¥12.5 billion (an increase of ¥1.0 billion).