Hi-Lex (7279) Investor presentation summary

Analysis of current situation

• PBR and ROE have shown a strong correlation, with ROE rising for three consecutive years since FY2023, leading to improved PBR.

• ROE growth in FY2025 was driven by higher operating profit (approx. JPY 3.0 billion) and a gain on sale of investment securities (approx. JPY 7.4 billion).

Asset efficiency initiatives

• Target set to reduce cross-shareholdings to 10% or less of consolidated net assets by October 2026.

• About JPY 22.0 billion in cross-shareholdings sold between July 2025 and July 2026, with the target expected to be achieved within FY2026.

Financial leverage and equity ratio

• Financial leverage increased from 1.58x to 1.72x between end-FY2025 and Q2 FY2026, mainly due to HI-LEX ACT acquisition financing.

• Interest-bearing debt rose from JPY 8.9 billion to JPY 33.7 billion, and equity ratio declined from 63.8% to 58.0%.