Performance Trend 1. Overview of performance for FY3/2024 Consolidated performance for FY3/2024 of G-7 Holdings <7508> was 192,992 million yen in increased operating income of 9.1% over the previous year, and increased ordinary income of 7.4% to 7,318 million yen, and attributed to the parent company's net income of 5,175 million yen, an increase of 35.3% over the previous year. Sales were driven by the Business Supermarket Business and the Meat Business, and continued to set a new record high, exceeding the company's plan by 4.3%. However, in terms of profits, the automobile-related business was affected by a decrease in profits due to poor sales of winter tires due to a warm winter, and could not reach the company's plan, it turned to a profit increase for the second time due to the growth of other businesses centered on the Business Supermarket business. The sales cost ratio has increased by 0.8 points over the previous year due to changes in the sales composition ratio; however, the selling, general and administrative expense ratio decreased by 0.7 points due to the effect of increased earnings, and the operating margin decreased by 0.1 points to 3.6%. The main reasons for the increase/decrease of selling, general and administrative expenses were a decrease of 600 million yen in energy costs due to subsidies from rising electricity prices, and an increase of 1 billion yen in labor costs due to improvements in employee treatment and increased education costs. In addition to this, depreciation expenses increased by nearly 600 million yen due to rising construction material costs and rising costs of opening stores etc. The EBITDA margin has increased by 0.1 points from the previous year. Also, the reason for the large increase in the net income of the parent company's shareholders attributable to the current period is due to the elimination of 500 million yen in retirement benefits paid to executives that were recorded as special losses in the previous year, a decrease of 455 million yen in impairment losses, and a gain of 127 million yen on the sale of investment securities in FY3/2024.

2024 FY Performance Overview Consolidated performance for FY3/2024 of G-7 Holdings <7508> was 192,992 million yen in increased operating income of 9.1% over the previous year, and increased ordinary income of 7.4% to 7,318 million yen, and attributed to the parent company's net income of 5,175 million yen, an increase of 35.3% over the previous year. Sales were driven by the Business Supermarket Business and the Meat Business, and continued to set a new record high, exceeding the company's plan by 4.3%. However, in terms of profits, the automobile-related business was affected by a decrease in profits due to poor sales of winter tires due to a warm winter, and could not reach the company's plan, it turned to a profit increase for the second time due to the growth of other businesses centered on the Business Supermarket business. The sales cost ratio has increased by 0.8 points over the previous year due to changes in the sales composition ratio; however, the selling, general and administrative expense ratio decreased by 0.7 points due to the effect of increased earnings, and the operating margin decreased by 0.1 points to 3.6%. The main reasons for the increase/decrease of selling, general and administrative expenses were a decrease of 600 million yen in energy costs due to subsidies from rising electricity prices, and an increase of 1 billion yen in labor costs due to improvements in employee treatment and increased education costs. In addition to this, depreciation expenses increased by nearly 600 million yen due to rising construction material costs and rising costs of opening stores etc. The EBITDA margin has increased by 0.1 points from the previous year. Also, the reason for the large increase in the net income of the parent company's shareholders attributable to the current period is due to the elimination of 500 million yen in retirement benefits paid to executives that were recorded as special losses in the previous year, a decrease of 455 million yen in impairment losses, and a gain of 127 million yen on the sale of investment securities in FY3/2024. Changes in the ratio of revenues - while the revenue composition ratio increased by 0.8 points from the previous year, the selling, general and administrative expense ratio decreased by 0.7 points due to the effect of increased earnings, and the operating margin decreased by 0.1 points to 3.6%. The main factors affecting selling, general and administrative expenses were a drop of 600 million yen in energy costs due to subsidies from rising electricity rates and an increase of 1 billion yen in labor costs due to increases in treatment and education expenses for employees. Depreciation expenses also rose by just under 600 million yen due to increased costs of construction materials and opening new stores. The EBITDA (earnings before interest, taxes, depreciation, and amortization) margin rose 0.1 points from the previous year. Lastly, the reason for the increase in the net income of the parent company's shareholders attributable to the current period was due to the elimination of the 500 million yen for executive retirement bonuses paid in the previous period, the reduction of impairment losses by 455 million yen, and the realization of gains on investment securities of 127 million yen in FY3/2024.

For the fiscal year ending March 2024, Yamada Consulting Group <4792> achieved an increase in revenue of 34.8% year on year to 22,177 million yen, an operating profit of 27.5% to 3,662 million yen, a recurring profit of 27.5% to 3,724 million yen, and a net income attributable to shareholders of the parent company of 35.3% to 2,861 million yen, which was an increase in both revenue and profit. Sales revenue and gross profit achieved their highest levels in two years. In the consulting business, steady performance was maintained, and increased revenue and profit were achieved. This was due to an increase in customer size resulting in higher unit prices. In the investment business, gains on sales were recorded for both unlisted stock investments and real estate investments, resulting in a significant increase in revenue and profit.

2. Performance by segment Sales for the fiscal year ending March 2024 increased by 8.1% year on year to 17,370 million yen, and operating income increased by 5.2% to 2,959 million yen, achieving the highest level of sales, gross profit, and operating profit ever recorded. In particular, the M&A Advisory business showed solid results in terms of number of inquiries and orders, reflecting the active M&A market in Japan. In the Management Consulting business, demand continued to increase for mid-term management planning, human capital, and sustainable management, while consultations for business succession among owner companies remained solid, leading to continued stable growth. In the Real Estate Consulting business, the company won large orders, maintaining good performance.

(1) Consulting business: For the fiscal year ending March 2025, the performance forecast for the consulting business is expected to have revenue of 18.87 billion yen, an increase of 8.6% compared to the previous year. Operating profit is expected to decrease by 6.3% to 2.77 billion yen.

The performance of investment business for the fiscal year ending March 2024 showed a significant increase in sales of 1,082.7% year on year to 4,816 million yen and operating income of 1,098.8% to 707 million yen. The company achieved the highest levels of sales, gross profit, and operating profit ever recorded, thanks to the successful sale of fund investment stocks and investment real estate carried over from the previous fiscal year. In particular, selling fund investment stocks in the Unlisted Stock Investment business was effective, and the Real Estate Investment business achieved a significant increase in revenue and profit through gains on sales of investment real estate.

(1) Consulting business

Looking at the balance sheet at the end of the fiscal year ending March 2024, current assets increased by 654 million yen compared to the previous fiscal year end to 17,946 million yen. Fixed assets decreased slightly in total, with tangible fixed assets and intangible fixed assets increasing. Notably, current liabilities significantly decreased from 5,085 million yen to 3,589 million yen (a decrease of 1,495 million yen from the previous fiscal year end) thanks to repayment of financial institution borrowings from the sale of stocks in the Unlisted Stock Investment business. As a result, shareholder equity increased significantly from 14,660 million yen to 16,295 million yen (an increase of 1,634 million yen from the previous fiscal year end), and net assets also achieved an increase of 2,046 million yen compared to the previous fiscal year end, from 15,012 million yen to 17,059 million yen. Overall, total assets increased slightly from 20,200 million yen to 20,758 million yen.

3. Financial position

For the fiscal year ending March 2024, the company's overall sales volume of 18,000 kiloliters, +28.10% year-on-year, significant growth. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.

(Reported by FISCO guest analyst Hiroshi Nakayama)