May 7, 2026

FY12/2026 First Quarter Financial Results and Full Year Forecast_Presentation with Transcript （896.0KB）

SUMITOMO FORESTRY CO., LTD. · Q1 2026

FY12/2026 First Quarter Financial Results and

FY12/2026 Full-Year Forecast

(Securities Code: 1911)

May 7, 2026

Good afternoon. My name is Otani. Thank you very much for taking time out of your busy schedule to attend our financial results briefing.

Now, I will explain the Q1 financial results for the fiscal year ending December 2026 and our forecast for the full year.

Notes

• “Net income attributable to owners of parent” is expressed as "net income.”

• From FY12/2026, we newly established a Real Estate segment and transferred the real estate business and the construction business to this new segment, that had previously been included in the Global

Construction and Real Estate segment and the Housing segment.

• In addition, in connection with the new establishment of the Real Estate segment, the segment name has been renamed from the Global Construction and Real Estate segment to the Overseas Housing segment.

• As we have revised the initial purchase price allocation due to the finalization of provisional accounting treatment related to business combinations, the figures for the previous fiscal year on this material have also been revised.

• A stock split has been carried out in a ratio of three shares for every one share of common stock, with June 30, 2025 as the record date and July 1, 2025 as the effective date.

• Although the closing of the acquisition of Tri Pointe Homes, Inc., a U.S.-listed builder, is scheduled, the impact of the acquisition is not included in the full-year forecast.

FY12/2026 First Quarter Results

Statements of Income

⚫ Both the domestic custom-built detached housing business and the Australian housing business contributed to the increase in sales.

However, due to the factors such as a decline in the number of units sold and falling profit margins in the core U.S. housing business, a decrease in income was recorded despite an increase in sales. 2,590.0

2,053.7 2,267.6 (Forecast)

1,733.2

Net sales Annual

376.3 453.6 511.6 532.1

FY12/23 FY12/24 FY12/25 FY12/26

198.0 174.9 160.0 158.9

(Forecast)

Recurring Annual income Q1

25.6 38.7 37.7 21.8

FY12/23 FY12/24 FY12/25 FY12/26

116.5 95.0

Net income 102.2 106.7 (Forecast)

Annual

14.4 21.5 20.6 16.8

FY12/23 FY12/24 FY12/25 FY12/26

Please refer to slide 4. I will walk you through our consolidated financial results.

Net sales for Q1 increased 4.0% year on year to JPY532.1 billion, surpassing those of the prior-year period, primarily driven by higher sales in our Australian housing business. On the other hand, customer wait-and-see attitudes continued in our U.S. housing business amid persistently high interest rates and an uncertain economic outlook, resulting in recurring income declining 42.2% year on year to JPY21.8 billion, and net income attributable to owners of the parent falling 18.6% year on year to JPY16.8 billion.

We recorded approximately JPY9.6 billion as extraordinary income in Q1, derived from the partial sale of KumagaiGumi Co., Ltd. shares, the transfer of a building materials distribution subsidiaries to the GEOLIVE Group Corporation, and the sale of investment securities in connection with the partial sale of strategically-held shares.

As a result, we have partially revised the breakdown of our full-year forecast; however, our profit plan figures remain unchanged.

In addition, the escalating tensions in the Middle East are affecting crude oil prices and logistics costs. Should the current situation persist, we expect that much of the impact will likely materialize in the second half of this fiscal year and beyond; however, we believe it is difficult to estimate the extent of the impact at this point in time. For reference, the direct impact on our Q1 financial results was limited.

Regarding the acquisition of Tri Pointe Homes, Inc., which we are advancing in the

United States, we have confirmed that all necessary conditions have been met, including approval from Tri Pointe Homes’ shareholders’ meeting and the relevant regulatory authorities, and we are planning to close the transaction next week. Additionally, at today’s Board of Directors meeting, we resolved to disburse a bridge loan to finance the acquisition. As the purchase price allocation (PPA) is currently being assessed, the impact on our financial results is not included in our current full-year forecast, but we expect substantial profit contribution from 2027 onwards.

Please note that in Q1, we have recorded a portion of acquisition-related costs.

(b illio n yen )

N e t S ale s

G ro ss P ro fit

SG & A Exp en ses

O p eratin g In co m e

N o n -o p eratin g in co m e/exp en ses

R e cu rrin g in co m e

Effect o f FX rate ch an g e

R ecu rrin g in co m e to N et sales ratio

Extrao rd in ary in co m e/lo ss

N e t in co m e

F X ra te (a v e ra g e

U SD /JP Y

A U D /JP Y

d u

F Y 1 2 / 2 5

Q 1

5 1 1 .6

1 2 2 .5

8 3 .6

3 8 .9

-1 .2

3 7 .7

7 .4 %

2 0 .6 rin g te rm )

1 5 2 .6 2

9 5 .7 2

F Y 1 2 / 2 6

Q 1

5 3 2 .1

1 1 7 .6

9 3 .7

2 3 .9

-2 .1

2 1 .8

1 .3

4 .1 %

9 .6

1 6 .8

1 5 6 .8 9

1 0 8 .9 9

C h a n g e

+ 2 0 .4

-4 .9

+ 1 0 .1

-1 5 .0

-0 .9

- 1 5 .9

-3 .3 % p t

-3 .8

P c t.

+ 4 .0 %

-4 .0 %

+ 1 2 .0 %

-3 8 .5 %

- 4 2 .2 %

-1 8 .6 %

Results by Segment

⚫ In the Overseas Housing business, the strong performance of the Australian housing business contributed to the results.

On the other hand, with the business environment remains challenging for the U.S. housing business, income decreased despite an increase in sales. In the Timber and Building Materials business, both sales and income declined due to factors such as delays in the launch of the U.S. sawmill acquired in the previous fiscal year. Timber and Building Materials Housing

(billion yen) Overseas Housing Real Estate

Environment and Resources Others and Adjustments 600.0

500.0

Net sales 400.0

300.0

200.0

100.0

0.0 FY12/25 FY12/26

(billion yen) Q1 Q1

Recurring 25 income 20

FY12/25 FY12/26

Please turn to slide 5. These are our results by segment.

In the Timber and Building Materials business, net sales declined 3.1% year on year to JPY56.4 billion, falling below those of the prior-year period, due to the transfer of a consolidated subsidiaries to the GEOLIVE Group Corporation, an equity-method affiliate, for the purpose of reorganization and strengthening within this Group. In addition, a delayed launch of a U.S. sawmill acquired in the previous fiscal year resulted in production volumes falling below plan, and recurring income posted a loss of JPY1.1 billion.

In the Housing business, net sales exceeded those of the prior-year period due to an increase in the number of houses under construction, reflecting favorable orders received in the previous fiscal year for the custom-built detached housing business. However, the recurring income to net sales ratio declined 0.9 percentage points year on year to 5.1%, owing to a decrease in land sales gains in a subsidiary and an increase in personnel expenses. Net sales for the Housing business increased 3.4% year on year to JPY126.7 billion, and recurring income declined 12.6% year on year to JPY6.5 billion.

In the Overseas Housing business, net sales for the single-family homes business in Australia exceeded those of the prior-year period due to favorable market conditions and an increase in the number of units sold.

Meanwhile, in the U.S. single-family homes business, recurring income fell below that of the prior-year period due to continued wait-and-see attitudes among homebuyers driven by persistently high mortgage rates and an uncertain economic outlook, as well as an increase in incentives. Net sales for the Overseas Housing business increased 3.7% year on year to JPY281.0 billion, while recurring income declined 39.1% year on year to JPY19.9 billion.

In the Real Estate business, net sales exceeded those of the prior-year period due to contributions from LeTech, which was made a subsidiary in the previous fiscal year. In addition, the extent of losses was reduced due to improved profit margins in our overseas real estate development business and a reduction in selling, general and administrative expenses.

In the Environment and Resources business, net sales for the overseas forestry business exceeded those of the prior-year period due to an increase in sales; however, recurring income fell below that of the prior-year period due to higher costs.

（） billion yen

Tim ber and

B uilding M aterials

H ousing

O verseas

H ousing

R eal Estate

Environm ent and

R esources

O thers

A djustm ent

TO TA L

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

Recurring incom e

RI/N et sales ratio

F Y 1 2 /2 5 Q 1

5 8 .2

0 .6

1.0%

1 2 2 .5

7 .4

6.1%

2 7 1 .0

3 2 .7

12.1%

5 5 .0

-4 .2

6 .7

0 .4

6.5%

6 .9

2 .1

29.9%

-8.6

-1.3

5 1 1 .6

3 7 .7

7.4%

F Y 1 2 /2 6 Q 1

5 6 .4

-1 .1

1 2 6 .7

6 .5

5.1%

2 8 1 .0

1 9 .9

7.1%

6 3 .1

-3 .2

7 .2

0 .3

3.5%

7 .1

1 .2

16.6%

-9 .5

-1 .8

5 3 2 .1

2 1 .8

4.1%

C h a n g e

-1 .8

-1 .6

+ 4 .2

-0 .9

-0.9% pt

+ 1 0 .0

-1 2 .8

-5.0% pt

+ 8 .2

+ 1 .0-

+ 0 .5

-0 .2

-3.0% pt

+ 0 .3

-0 .9

-13.3% pt

-0.9

-0.6

+ 2 0 .4

-1 5 .9

-3.3% pt

P ct.

-3 .1

+ 3 .4

-1 2 .6

+ 3 .7

-3 9 .1

+ 2 0 .1

7 .3

-4 1 .7

+ 4 .1

-4 2 .1

+ 4 .0

-4 2 .2

---

Housing Segment (Domestic Housing)

FY12/25 FY12/26

(billion yen) Change Pct.

Q1 Q1

Orders received C h u o s u t s o e m s -built detached 101.9 110.6 +8.7 +8.6% • Order Status

Apartments 6.3 6.1 -0.2 -3.0% In addition to an increase in orders for the

Units & Prices of Units 2,089 2,165 +76 +3.6% Grand Estate Design Project and other higher-

Custom-bulit priced premium products that leverage our detached houses Unit price (mil. Yen) 44.7 46.9 +2.2 +5.0% design expertise, which is our strength, the "Cho

Sumai Haku" housing fair, a customer outreach

Sales Custom-built detached 87.3 92.9 +5.6 +6.4% event held in November 2025, also helped us to houses maintain strong order performance.

Apartments 5.3 6.0 +0.7 +14.3%

Detached spec home 4.3 4.0 - 0.2 -5.8%

Renovation 14.2 14.6 +0.4 +2.9% • Sales Status

Others & Adjustments 11.5 9.2 -2.3 -20.2% Reflecting the strong order performance last

TOTAL 122.5 126.7 +4.2 +3.4% year, the custom-built detached housing business recorded higher sales revenue and

RI/Net sales ratio 6.1% 5.1% -0.9%pt - higher unit price than in the same period last

Units & Prices of Units 1,773 1,656 -117 -6.6% year.

Custom-bulit detached houses Unit price (mil. Yen) 47.7 49.3 +1.6 +3.4%

Moving on, please turn to slide 6. I will explain the orders received and sales situation for our domestic housing business.

Sales of custom-built detached houses reflected the strong orders received in the previous year, with both sales and unit sales price exceeding those of the prior-year period.

In terms of orders received, which were also influenced by our “Cho Sumai Haku” housing fair held in November of last year, the number of units increased 3.6% year on year to 2,165 units, and the average order unit price increased 5.0% year on year to

JPY46.9 million, continuing to perform solidly.

In addition to increasing orders for higher-priced premium products that leverage our design and proposal capabilities—a key strength exemplified by our Grand Estate Design

Project—we are also securing stable orders in the volume zone of approximately JPY35 million with our semi-custom product “Forest Selection.”

Overseas Housing Segment

Next, I will explain the Overseas Housing segment. Within this segment, while our

Australian housing business continued to perform solidly, our U.S. housing business was significantly affected by market conditions, leading to weak results.

In addition, our FITP business saw net sales increase year on year due to an increase in the number of factories; however, profitability deteriorated due to the sluggish number of housing starts for both single-family homes and multi-family housing, cost increases, and upfront investment expenses.

(billion yen)

U .S. H ousing

FITP

A ustralia H ousing

H ousing Indonesia,

V ietnam

O thers & Adjustm ents

TO TA L

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

Recurring incom e

N et Sales

Recurring incom e

RI/N et sales ratio

FX ra te (a ve ra g e

U SD /JPY

A U D /JPY

d u

F Y rin g

1 2 /2 5

Q 1

179.8

27.6

15.4%

10.9

0.1

1.3%

73.2

4.1

5.6%

0.0

7.1

0.7

271.0

32.7

12.1% te rm )

152.62

95.72

F Y 1 2 /2 6

Q 1

155.6

13.3

8.6%

13.5

-0.3

101.8

8.1

8.0%

0.0

-0.0

10.0

- 1.2

281.0

19.9

7.1%

156.89

108.99

C h a n g e s

-24.2

- 14.3

-6.8% pt

+ 2.6

-0.5

+ 28.7

+ 4.0

+ 2.3% pt

+ 0.0

-0.0

+ 2.9

- 1.9

+ 10.0

- 12.8

-5.0% pt

P ct.

-13.5%

-51.9%

+ 23.8%

+ 39.2%

+ 96.4%

+ 0.0%

-111.5%

+ 41.5%

+ 3.7%

-39.1%

• U.S. Housing

Within a challenging business environment as customers maintained a wait-and-see outlook, both sales and income declined due to a fall in the number of units sold, along with the provision of incentives.

・FITP

Although an increase in the number of factories contributed to an increase in sales, income decreased mainly due to increased delivery costs and others.

・Australian Housing

Both sales and income increased due to strong order performance at SPG in Western

Australia, improved earnings by Metricon, and an increase in the number of spec homes delivered in Victoria.

Overseas Single-Family Homes Business

Please turn to slide 8. I will explain the status of our single-family homes businesses in the U.S. and Australia.

In our U.S. single-family homes business, homebuyer sentiment continued to weaken against the backdrop of an uncertain economic outlook, and the number of unit orders received declined 4.9% year on year to 2,728 homes, falling below the prior-year level.

Although expectations for interest rate cuts increased and mortgage rates briefly entered the 5% range in February, they remain elevated in the low-6% range amid worsening tensions in the Middle East, and customer wait-and-see attitudes remain strong.

Furthermore, the spring selling season, which normally gains momentum from late

February, has continued to face challenging conditions with a lack of activity.

Due to deteriorating business conditions, the number of units sold declined 13.3% year on year, and the unit sales price declined 5.9% year on year to USD474,000.

In terms of profitability, the recurring income to net sales ratio declined 6.8 percentage points year on year to 8.6%, impacted by the decrease in units sold and increased incentives.

With regard to land inventory, we have secured approximately 80,000 lots in total, including both owned lots and option lots. Completed inventory has declined 12.3% year on year, and we are appropriately managing inventory risk in response to changes in market conditions by adjusting land development schedules, utilizing option contracts, and being selective in land acquisition.

In our Australian single-family homes business, orders received remained strong, particularly in Western Australia, increasing 10.8% year on year to 2,032 units. On the sales side, we steadily converted the prior year’s strong orders received into deliveries, with the number of units sold increasing 15.7% year on year to 1,935 homes.

Profitability also recovered steadily, achieving a recurring income to net sales ratio of

8.0%, which exceeded our full-year plan.

(billion yen)

U .S. H ousing

A ustralia

H ousing

N o. of U nits order received

N o. of U nits sold

Sales (mil. USD)

U nit sales price (thousand USD)

RI/N et sales ratio

O rder backlog (units)

Lots ow ned com pleted inventory

O ption lots

N o. of U nits order received

N o. of U nits sold

Sales (mil. AUD)

U nit sales price (thousand AUD)

RI/N et sales ratio

O rder backlog (units)

F Y 1 2 /2 5

Q 1

2,868

2,254

1,135

504

15.4%

3,293

52,672

2,163

26,797

1,834

1,671

764

457

5.6%

7,826

F Y 1 2 /2 6

Q 1

2,728

1,954

926

474

8.6%

3,064

51,806

1,898

26,515

2,032

1,935

939

485

8.0%

8,312

C h a n g e

- 140

- 300

- 209

-30

-6.8% p t

- 229

-866

-265

- 282

+ 198

+ 263

+ 175

+ 28

+ 2.3% p t

+ 486

P ct.

-4 .9

-1 3 .3

-1 8 .4

-5 .9

-7 .0

-1 .6

-1 2 .3

-1 .1

+ 1 0 .8

+ 1 5 .7

+ 2 2 .9

+ 6 .2

• U.S. Housing

Due to persistently high mortgage rates and an uncertain economic outlook, homebuyers maintained a wait-and-see attitude. As a result, both the number of units ordered and number of units sold fell year on year. Unit sales price was lower than in the same period last year amidst fierce competition.

• Australian Housing

In addition to a steady growth in orders by SPG (in

Western Australia) and Metricon, the number of spec homes delivered in Victoria and other factors contributed to a year-on-year increase in both the number of units ordered and the number of units sold.

In addition, both the unit sales price and the recurring income to net sales ratio rose year on year, underpinned by factors such as the improved profitability of Metricon and robust sales in Western

Australia.

U.S. Single-Family Homes Business－Trends in Orders Received and Units Sold

⚫ In addition to mortgage rates remaining persistently high, customers have maintained a wait-and-see attitude due to the uncertain economic outlook. As a result, both the number of units ordered and number of units sold declined year on year.

Trends in number of units ordered for Trends in number of units sold for

U.S. single-family homes, and mortgage rates U.S. single-family homes (on a delivery basis)

(units) (units)

Units ordered Mortgage rate

4,000 7.0% 7.3% 7.0% 4,000

0 6.4%

9 3

5 2,815

6.5% 6.7%

6.8%6.6% 6.2%6.1% 7.0%

0 3,117

2,845 2,865 2,952 2,818

2,500 2,693 2,410 2,413 2,444 2,545 2,728 6.0% 2,500 2,597 2,365 2,605 2,630 2,560

2,000 2,042 2,143 2,075 5.0% 2,000 2,142 2,254 1,954

1,500 4.0% 1,500

1,000 1,000

3.0%

500 500

0 2.0% 0 raM

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FY12/23 FY12/24 FY12/25 FY12/26 FY12/23 FY12/24 FY12/25 FY12/26

Slides 9 and 10 show the quarterly trends for our U.S. single-family homes business.

Please review the trend data at your convenience.

U.S. Single-Family Homes Business－Trends in Unit Sales Price and RI/Net Sales Ratio

⚫ Recurring income to net sales ratio fell due to factors such as lower unit sales prices and providing incentives.

Trends in recurring income to net sales ratio for

Trends in unit sales price for U.S. single-family homes U.S. single-family homes

(thousand USD)

510 504 20.0% 18.7%

17.9% 17.8%

4 5 9 0 0 0 492 483 493 490 485 483 1 1 6 8 . . 0 0 % % 14.9% 14.4% 15.3% 16.4% 15.0% 15.4% 15.0%

480 476 477 474 474 14.0% 12.8%

468 12.0% 10.8%

470

10.0% 8.6%

460

452 8.0%

450

6.0%

440 4.0%

430 2.0%

420 0.0% raM

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FY12/23 FY12/24 FY12/25 FY12/26 FY12/23 FY12/24 FY12/25 FY12/26

Real Estate Segment

• Overseas –U.S. Real Estate

Factors such as improved profit margins and a reduction in selling, general, and administrative expenses helped to reduce the loss margin.

・Domestic

Sales from LeTech, which became a consolidated subsidiary in the previous fiscal year, contributed to the increase in overall sales.

Slide 11 covers the Real Estate segment.

Net sales exceeded those of the prior-year period due to an increase in fee income from construction contracting by JPI in the U.S. and domestic contributions from LeTech, which was made a subsidiary in the previous fiscal year. Meanwhile, in our U.S. real estate business, the disposition of properties has remained difficult due to cap rates staying elevated. In Q1, the extent of losses was reduced due to one property sale and improved profitability from construction contracting; however, recurring income remained in negative territory.

（ b illio n ye n ）

O verseas H ousing

D om estic D om estic rental m anagem ent & real estate developm ent

D om estic construction

O thers & Adjustm ents

TO TA L

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

Recurring incom e

RI/N et sales ratio

FX ra te (a ve ra g e

U S D /JP Y

A U D /JP Y

F Y 1 2 / 2 5

Q 1

3 9 .3

-3 .8

8 .4

0 .6

6.7%

7 .4

0 .8

10.7%

-0.1

-1.8

5 5 .0

-4 .2

- u rin g te rm )

1 5 2 .6 2

9 5 .7 2

F Y 1 2 / 2 6

Q 1

4 1 .3

-2 .4

1 2 .2

0 .2

1.8%

9 .9

0 .8

8.0%

-0 .2

-1 .7

6 3 .1

-3 .2

1 5 6 .8 9

1 0 8 .9 9

C h a n g e

+ 2 .0

+ 1 .4

+ 3 .8

-0 .3

-4 .9 %

+ 2 .5

+ 0

-2 .7 %

-0.2

+ 0.0

+ 8 .2

+ 1 .0

P c t.

+ 5 .1

+ 4 5 .1

-6 1 .0

+ 3 3 .9

+ 0 .0

+ 1 4 .8

U.S. RealEstate

Property

Management and Real Estate

Development

Construction

Timber and Building Materials/Environment and Resources Segment

• Timber and Building Materials

Net sales declined year on year due to the transfer of a consolidated subsidiaries to GEOLIVE Group

Corporation. Additionally, income declined due to delays in the launch of the U.S. sawmill acquired in the previous fiscal year.

• Environment and Resources

Net sales increased year on year due to an increase in sales unit in the overseas forestry business.

Slide 12 summarizes the financial results of the Timber and Building Materials business and the Environment and Resources business.

(b illio n yen )

T im b e r an d

B u ild in g

M ate rials

En v iro n m e n

R e so u rce s t an d

R et Sales ecu rrin g in co m e

R I/N et sales ratio et Sales ecu rrin g in co m e

R I/N et sales ratio

F Y 1 2 / 2 5

Q 1

5 8 .2

0 .6

1 .0 %

6 .7

0 .4

6 .5 %

F Y 1 2 / 2 6

Q 1

5 6 .4

-1 .1

7 .2

0 .3

3 .5 %

C h a n

-3 g e

- 1

-1

+ 0

- 0

.0 %

.2 p t

P c t.

-3

+ 7

-4 1

Balance Sheet – Assets

End of End of

(billion yen) Changes End of

12/2025 3/2026 End of 3/2026 Changes

12/2025

Current assets 1,693.7 1,719.5 +25.8 Real estate for sale and

Cash, deposits, securities 185.4 150.6 -34.8 Reals estate for sale in process 984.3 1,024.0 +39.7

Receivables 241.7 247.5 +5.9 U.S. (bil. Yen) 833.9 861.6 +27.7

Real estate for sale 227.7 219.0 -8.6 U.S. (mil. USD) 5,327 5,389 +62

Real estate for sale in process 756.6 805.0 +48.3

Other receivables 103.6 103.4 -0.2

Others 178.7 194.0 +15.3 • Balance Sheet－Assets

Non-current assets 878.3 893.3 +15.0

Total assets increased due to the depreciating yen and an increase in

L p a ro n c d e a ss nd Construction in 114.8 111.5 - 3.4 real estate for sale in process,amongotherfactors.

Other tangible fixed assets 207.8 214.4 +6.5

Intangible fixed assets 76.1 76.4 +0.3

Investment securities 377.3 383.1 +5.7

Others 102.2 108.0 +5.8

Total assets 2,572.0 2,612.8 +40.8

FX rate (end of term)

USD/JPY 156.56 159.88

AUD/JPY 104.82 109.68

Slides 13 and 14 compare the balance sheet against the end of the previous fiscal year.

Total assets amounted to JPY2,612.8 billion, an increase of JPY40.8 billion from the end of December 2025, primarily due to an increase in the yen-equivalent value of foreign- currency-denominated assets held by overseas subsidiaries due to yen depreciation.

Balance Sheet－ Liabilities and Net Assets

End of End of End of End of

(billion yen) Changes （billion yen） Changes

12/2025 3/2026 12/2025 3/2026

Liabilities 1,435.2 1,433.1 -2.2 Interest bearing debt 769.5 775.3 +5.8

Payables 292.6 277.2 -15.3 Short-term borrowings 140.8 133.3 -7.5

Interest bearing debt 769.5 775.3 +5.8 Long-term borrowings 532.2 545.6 +13.4

Contract liabilities 99.0 113.8 +14.8 Bonds payable 70.3 70.3 - 0.0

Income taxes payable 10.8 13.6 +2.7 Lease obligations 26.2 26.1 -0.1

Others 263.4 253.2 -10.2

Net assets 1,136.8 1,179.7 +42.9

Shareholders' equity 762.8 763.8 +1.0 • Balance Sheet－Liabilities and Net Assets

Accumulated other 241.2 277.2 +36.0 On the liabilities side, interest-bearing debt increased comprehensive income

Foreign currency translation 175.7 192.7 +17.0 due to foreign exchange effects. On the net assets side, adjustment foreign currency translation adjustment increased by

Non-controlling interests 132.8 138.7 +5.9 17.0 billion yen.

Share acquisition rights 0.1 0.1 +0.0

Total liabilities and net assets 2,572.0 2,612.8 +40.8

On the liabilities side, while the yen-equivalent value of foreign-currency-denominated liabilities held by overseas subsidiaries increased due to yen depreciation, this was offset by a decrease in payables, resulting in a net decrease of JPY2.2 billion from the end of

December 2025 to JPY1,433.1 billion. On the net assets side, the foreign currency translation adjustments increased by JPY17.0 billion, and total net assets increased by

JPY42.9 billion to JPY1,179.7 billion.

Financial Indicators

⚫ Stable financial foundation has been maintained, with an equity ratio of 39.8% and a net debt-to-equity ratio of 0.7 or less.

Financial Soundness/Capital Efficiency Financial Discipline

(billion yen) Shareholder's equity Equity ratio ROE (billion yen) Net interest-bearing debt Net D/E ratio

1,500.0 41.3% 40.6% 39.0% 39.8% 1,200.0 0.6 0.7

1,000.0 0.6

1,200.0 0.5

1,004.0 1,041.0 0.4 0.5

800.0

920.3

900.0

754.1 0.3 552.1 598.8 0.4

600.0

600.0 14.8% 13.9% 402.4 0.3

11.1% 400.0

241.8 0.2

300.0

200.0

0.1

0.0 0.0 0.0

2023/12E 2024/12E 2025/12E 2026/3E 2023/12E 2024/12E 2025/12E 2026/3E

Slide 15 shows trends in equity ratio, ROE, and net D/E ratio.

The equity ratio stands at 39.8%, maintaining a level close to our target of approximately

40%. In addition, the net D/E ratio is 0.6x, within our target range of 0.7x or below.

Going forward, the consolidation of Tri Pointe Homes is expected to significantly change our financial position; however, we will continue to manage the Company with an awareness of maintaining financial soundness and improving capital efficiency.

Topics

Key Press Releases in Q1 FY12/2026

IR News Releases

https://sfc.jp/english/news/

Title

January Notice of Change to Shareholding Ratios of Sumitomo Forestry Co., Ltd. and Kumagai Gumi Co., Ltd.

Joint Development of a Logistics Facility Near Charlotte, North Carolina

~ ALogistics Base with Exceptional Transport Efficiency~

Introduction of a New Family Care Leave System

~Supporting Care-giving Employees and Realizing Diverse Work Styles~

Joint Development of a Wooden Multi-family Rental Complex Near Atlanta

February

~ Achieves Both Decarbonization and Economic Efficiencies with the Use of Wood~

Financial Results for the Fiscal Year Ended December 2025

Notice Regarding the Acquisition of Shares (Subsidiarization) of Tri Pointe Homes, Inc. and the Change of a Specified Subsidiary

Notice of Partial Amendment to Articles of Incorporation and Shelf Registration with Respect to Issuance of Series 1 Bond-Type Class Shares

Sumitomo Forestry wins the highest top 1% assessment for the eighth consecutive year in S＆P’s The Sustainability Yearbook –2026 Rankings

Recognized as Certified Health &Productivity Management Organization 2026, in Large Enterprise Category, as White 500 for Second Year

March

Running

Received Semi-Grand Prize in the 5th NIKKEI Integrated Report Award for the First Time

GREEN×EXPO 2027 Village Exhibition Name and Concept Finalized

~ Offering a Rich Experience Exploring Trees and Forests from Multiple Perspectives ~

KowanomoriCo., Ltd.’s YotsukuraFactory (Iwaki City, Fukushima Prefecture) Begins Operations

~ Expanded Use of Japanese Timber Through Timber and Processed Wood Products; Launch of Timber Industrial Complex ~

Development of a 300-unit Multi-family Rental Complex in Atlanta, Georgia

~Utilizing Wood to Achieve Both Decarbonization and Economic Efficiencies ~

Slide 17 lists our major IR-related announcements from January through March 2026.

Please refer to it for your information.

FY12/2026 Full-Year Forecast

Statements of Income

Slides 19 through 24 cover our full-year forecast.

In Q1, we recorded extraordinary income of approximately JPY9.6 billion, mainly from the partial sale of Kumagai Gumi Co., Ltd. shares, as well as the sale of other investment securities. As a result, we have partially revised the breakdown of our full-year forecast.

On the other hand, we have kept our overall profit plan unchanged, as it is necessary to assess the impact of the acquisition of Tri Pointe Homes and the situation in the Middle

East. Accordingly, consolidated net sales, recurring income, and net income, as well as segment results and domestic and overseas housing orders received and sales plans, all remain unchanged from the initial forecast.

(billion yen)

N et Sales

G ross Profit

SG & A Expenses

O perating Incom e

N on-operating incom e

R ecurring incom e

Effect of FX rate change

Recurring incom e to

N et sales ratio

Extraordinary profit/loss

N et incom e

EPS

FX ra te (a ve ra g e d

U SD /JPY

A U D /JPY

u rin

F Y 1 2 /2 5

2 ,2 6 7 .6

524.6

355.9

168.7

6.2

1 7 4 .9

-1.5

7.7%

5.3

1 0 6 .7

1 7 4 .1 3 g te rm )

149.66

96.51

F Yfo 1 2 /2 6 re ca st

2 ,5 9 0 .0

560.0

403.0

157.0

3.0

1 6 0 .0

6.2%

9.6

9 5 .0

1 5 5 .0 9

150.00

105.00

C h a n g e s

+ 3 2 2 .4

+ 35.4

+ 47.1

-11.7

- 3.2

-1 4 .9

-1.5% p t

+ 4.3

- 1 1 .7

-1 9 .0 4

P ct.

+ 1 4 .2 %

+ 6.7%

+ 13.2%

-6.9%

-51.4%

-8 .5 %

+ 80.2%

-1 0 .9 %

-1 0 .9 % vs. previous forecast

+ 2.1

• Statements of Income

Although the sale of investment securities resulted in an extraordinary gain of 2.1 billion yen, the initial forecast for net income made at the beginning of its fiscal year remains unchanged.

* Excludes the impact of the acquisition of Tri Pointe Homes, Inc. disclosed on February 13, 2026.

The impacts of the escalating tensions in the Middle East on profits and losses are currently being assessed.

*Figures for the previous forecast are the ones announced at the results briefing for FY12/2025, held on February 13, 2026.

Forecast by Segment

• Segment Net Sales and Recurring Income

No change from the initial forecast made at the beginning of its fiscal year.

(billion yen)

Tim ber and B uilding

M aterials

H ousing

O verseas

H ousing

R eal Estate

Environm ent and

R esources

O thers

A djustm ent

TO TA L

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

Recurring incom e

RI/N et sales ratio

F Y 1 2 /2 5

253.0

12.8

5.0%

542.3

38.5

7.1%

1,205.9

138.0

11.4%

254.1

- 13.8

26.8

- 1.4

28.1

5.0

17.9%

- 42.5

- 4.2

2,267.6

174.9

7.7%

F Yfo 1 2 /2 6 re ca st

274.0

10.0

3.6%

596.0

38.0

6.4%

1,374.0

113.0

8.2%

331.0

1.0

0.3%

28.0

- 1.5

30.0

3.5

11.7%

- 43.0

- 4.0

2,590.0

160.0

6.2%

C h a n g e s

+ 21.0

- 2.8

-1.4% pt

+ 53.7

- 0.5

-0.7% pt

+ 168.1

- 25.0

-3.2% pt

+ 76.9

+ 14.8

+ 1.2

- 0.1

+ 1.9

- 1.5

-6.2% pt

- 0.5

+ 0.2

+ 322.4

- 14.9

-1.5% pt

P ct.

+ 8.3%

-21.6%

+ 9.9%

-1.4%

+ 13.9%

-18.1%

+ 30.3%

+ 4.6%

+ 6.7%

-30.4%

---

+ 14.2%

-8.5%

Housing Segment (Domestic Housing)

• Order Status

No change from the initial forecast made at the beginning of its fiscal year.

• Sales Status

No change from the initial forecast made at the beginning of its fiscal year.

With regard to the impact of the situation in the Middle East, we anticipate delays in the delivery of housing materials and cost increases; however, we will respond appropriately, including through revisions to selling prices.

At present, the situation remains fluid, and it is difficult to forecast our financial results with any accuracy. We will conduct further analysis and provide an update once the impact becomes clearer.

(b illio n yen )

O rd e rs re ce iv e d

U n its & P rice s o f

C u sto m -b u lit d e tach e d h o u se s

S ale s

U n its & P rice s o f

C u sto m -b u lit d e tach e d h o u se s

C u sto m -b u ilt d etach ed

A p artm en ts

U n its

U n it p rice (m il. Yen)

C u sto m -b u ilt d etach ed

A p artm en ts

D etach ed sp ec h o m e

R en o vatio n

O th ers & A d ju stm en ts

TO TA L

R I/N et sales ratio

U n its

U n it p rice (m il. Yen) h h o o u u ses ses

F Y 1 2 / 2 5

4 2 0 .2

2 6 .3

8 ,3 5 7

4 5 .9

3 8 9 .0

1 9 .1

2 0 .1

7 7 .9

3 6 .3

5 4 2 .3

7 .1 %

7 ,7 7 2

4 8 .7

F Y fo

1 2 / 2 6 re c a s t

4 2 0 .0

2 6 .0

8 ,2 0 0

4 6 .5

4 2 6 .0

2 2 .7

2 6 .2

7 9 .5

4 1 .6

5 9 6 .0

6 .4 %

8 ,1 0 0

5 0 .7

C h a n g e s

- 0 .2

- 0 .3

- 1 5 7

+ 0 .6

+ 3 7 .0

+ 3 .6

+ 6 .1

+ 1 .6

+ 5 .3

+ 5 3 .7

-0 .7 % p t

+ 3 2 8

+ 2 .0

P c t.

-0

-1

+ 1

+ 9

+ 1 9

+ 3 0

+ 2

+ 1 4

+ 9

+ 4

Overseas Housing Segment

• U.S. Housing, Australian Housing, etc.

No change from the initial forecast made at the beginning of its fiscal year.

Slides 22 and 23 summarize our housing businesses in the U.S. and Australia.

Our U.S. housing business, which has a significant impact on our overall financial results, has started the year slower than planned.

(b illio n yen )

U .S .

A u stralia

In d o n e sia,

V ie tn am

O th ers & A d ju

T O T A L

H o u sin

FITP

H o u sin

H o u sin stm en ts g g g

A et Sales ecu rrin g in co m e

R I/N et sales ratio et Sales ecu rrin g in co m e

R I/N et sales ratio et Sales ecu rrin g in co m e et Sales ecu rrin g in co m e et Sales ecu rrin g in co m e

R I/N et sales ratio

X ra te (a v e ra g e

SD /JP Y

U D /JP Y

d u

F rin

Y g

1 2 / 2 5

7 8 6 .1

1 0 5 .2

13.4%

5 5 .3

0 .9

1.6%

3 3 7 .8

2 6 .3

7.8%

0 .1

-0 .7

2 6 .7

6 .2

1 ,2 0 5 .9

1 3 8 .0

11.4% te rm )

1 4 9 .6 6

9 6 .5 1

F Y fo

1 2 / 2 6 re c a s t

8 6 2 .0

8 5 .5

9.9%

6 3 .0

2 .5

4.0%

4 1 4 .0

3 0 .0

7.2%

0 .0

- 1 .1

3 5 .0

- 3 .9

1 ,3 7 4 .0

1 1 3 .0

8.2%

1 5 0 .0 0

1 0 5 .0 0

C h a n g e s

+ 7 5 .9

- 1 9 .7

-3.5% p t

+ 7 .7

+ 1 .6

+ 2.4% p t

+ 7 6 .2

+ 3 .7

-0.5% p t

-0 .1

- 0 .4

+ 8 .3

- 1 0 .1

+ 1 6 8 .1

- 2 5 .0

-3.2% p t

P c t.

+ 9

-1 8

+ 1 3

+ 1 8 2

+ 2 2

+ 1 4

+ 3 1

+ 1 3

-1 8

Overseas Single-Family Homes Business

• U.S. Housing

No change from the initial forecast made at the beginning of its fiscal year.

• Australian Housing

No change from the initial forecast made at the beginning of its fiscal year.

(b illio n y

U .S .

H o u sin g

A u stra lia

H o u sin g e n )

R o . o f U n its so ld a le s (m il. U SD ) n it sa le s p rice (thousand U SD )

I/N e t sa le s ra tio o . o f U n its so ld a le s (m il. AU D ) n it sa le s p rice (thousand AU D )

I/N e t sa le s ra tio

F Y 1 2 / 2 5

1 0 ,2 6 2

5 ,2 5 2

4 9 0

1 3 .4 %

7 ,4 0 4

3 ,5 0 0

4 7 3

7 .8 %

F f

Y o

1 r

2 / 2 6 e c a s t

1 1 ,6 3 5

5 ,7 4 6

4 6 6

9 .9 %

7 ,8 0 0

3 ,9 4 3

5 0 3

7 .2 %

C h a n g e s

+ 1 ,3 7 3

+ 4 9 4

- 2 4 .0

-3 .5 % p t

+ 3 9 6

+ 4 4 3

+ 3 0

-0 .5 % p t

P c t .

+ 1 3

+ 9

-4

+ 5

+ 1 2

+ 6

Real Estate Segment

• Real Estate Segment

No change from the initial forecast made at the beginning of its fiscal year.

There remain many uncertain factors, including the impact of the situation in the Middle

East on material costs and consumer sentiment, and the timing of the recovery of the

U.S. housing market; however, as a Group, we will maintain a medium-to long-term perspective in pursuing the enhancement of our corporate value.

This concludes the explanation. Thank you very much.

(b illio n ye n )

O verseas H ousing

D om estic D om estic rental m anagem ent & real estate developm ent

D om estic construction

O thers & Adjustm ents

TO TA L

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

Recurring incom e

RI/N et sales ratio

FX ra te (a ve ra g e

U S D /JP Y

A U D /JP Y

d u rin g

F Y te

1 2 / 2 5

1 7 9 .7

-1 .1

4 3 .3

3 .1

7.1%

3 1 .5

3 .0

9.5%

-0.5

-18.8

2 5 4 .1

-13.8

- rm )1

4 9 .6 6

9 6 .5 1

F Yfo 1 2 / 2 6 re c a s t

2 3 4 .0

4 .0

1.7%

5 8 .0

3 .5

6.0%

3 9 .0

2 .5

6.4%

0 .0

-9 .0

3 3 1 .0

1 .0

0.3%

1 5 0 .0 0

1 0 5 .0 0

C h a n g e

+ 5 4 .3

+ 5 .1

+ 1 4 .7

+ 0 .4

-1 .1 % p t

+ 7 .5

-0 .5

-3 .1 % p t

+ 0.5

+ 9.8

+ 7 6 .9

+ 1 4 .8

P c t.

+ 3 0 .2 %

+ 3 4 .1 %

+ 1 3 .8 %

+ 2 3 .6 %

-1 6 .6 %

-100.0%

+ 3 0 .3 %

U.S. RealEstate

Property

Management and Real Estate

Development

Construction

Disclaimer

・The financial forecasts, outlooks, and business plans contained in this document are based on assumptions and judgments made by our Group using information available at the time of preparation, and do not constitute a guarantee or promise of their accuracy or completeness.

・Financial forecasts, outlooks, and business plans are subject to change.

・This document is not intended to solicit investment or other transactions in any financial products.

・With regard to the information provided in this document, neither the Company nor any related parties assume any responsibility for its accuracy, certainty, reliability, or completeness. Please be aware that the content may be changed or discontinued without prior notice.

Contact Information

Sumitomo Forestry Co., Ltd.

IR Group, Corporate Communications Department [email protected]