August 10, 2026

FY12/2026 Second Quarter Financial Results and Full Year Forecast_Presentation with Transcript （1.1MB）

SUMITOMO FORESTRY CO., LTD. · Q2 2026

FY12/2026 Second Quarter Financial Results and FY12/2026 Full-Year Forecast

(Securities Code: 1911)

August 10, 2026

My name is Kawata. Thank you very much for taking time out of your busy schedule to attend our briefing today. Now, I will explain the Q2 financial results and the full year forecast of FY12/2026.

We extend our heartfelt sympathies to all those affected by the 2026 Kumamoto Earthquake.

We sincerely wish for the swiftest possible recovery.

First, we would like to extend our heartfelt sympathies to all those affected by the recent

Kumamoto Earthquake. We sincerely hope that recovery and reconstruction in the affected areas will proceed steadily and that those affected will be able to return to their normal lives as soon as possible.

Notes

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

• From FY12/2026, we newly established a Real Estate segmentand 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 segmentand 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 segmentto 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.

• On May 14, 2026, we acquired shares of Tri Pointe Homes, Inc. (hereinafter, “TPH”), making it a consolidated subsidiary. For the cumulative second quarter of the fiscal year under review, TPH’s results have been consolidated for the three-month period from April 1, 2026 to June 30, 2026. Provisional accounting treatment has been applied to the purchase price allocation (PPA).

Before I begin, I would like to note a few points. The notes, including the segment changes, are as indicated. In particular, please note that Tri Pointe Homes, Inc., the acquisition of which was completed on May 14 of this year, has been added to the scope of consolidation, and its results for April have been incorporated.

FY12/2026 Second Quarter Results

Statements of Income

⚫ Net sales increased on the effect of consolidating TPH and growth in the Australian housing business.

⚫ In addition to higher SG&A expenses, deteriorating earnings in the U.S. housing and real estate businesses pushed income down.

2950.0

(Forecast)

2053.7 2267.6

1733.2 Annual

Net sales Q2

816.5 981.4 1074.8 1263.2

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

198.0

174.9 158.9

115.0

Recurring (Forecast) Annual income Q2

67.4 93.0 88.2 49.8

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

116.5

102.2 106.7

60.0

Net income (Forecast) Annual

44.8 54.1 49.3 26.9

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

（

） b illio n yen e t S a le s ro ss P ro fit

SG & A Expenses p eratin g In co m e

N on-operating incom e/expenses e cu rrin g in co m e

R ecurring incom e to N et sales ratio

Extraordinary incom e/loss e t in co m e

X ra te (a v e ra g e

S D /JP Y

U D /JP Y

F u

Y 1 2 / 2 5

Q 2

1 ,0 7 4 .8

2 5 4 .6

1 7 0 .9

8 3 .7

4 .5

8 8 .2

8 .2 %

4 9 .3 rin g te rm )

1 4 8 .5 0

9 4 .1 2

F Y 1 2 / 2 6

Q 2

1 ,2 6 3 .2

2 7 7 .7

2 1 7 .7

5 9 .9

-1 0 .2

4 9 .8

3 .9 %

9 .6

2 6 .9

1 5 8 .1 4

1 1 1 .0 5

C h a n g e

+ 1 8 8 .5

+ 2 3 .0

+ 4 6 .8

-2 3 .8

-1 4 .7

-3 8 .5

-4 .3 % p t

+ 9 .6

-2 2 .4

P c t.

+ 1 7 .5 %

+ 9 .0 %

+ 2 7 .4 %

-2 8 .4 %

-4 3 .6 %

-4 5 .5 %

Please refer to slide 5. I will walk you through our consolidated financial results for the cumulative second quarter.

Net sales increased 17.5% year on year to ¥1,263.2 billion, driven by the newly consolidated

Tri Pointe Homes as well as the strong performance of our Australian housing business.

On the profit side, although the Australian housing business posted higher income, recurring income declined 43.6% year on year to ¥49.8 billion and net income attributable to owners of parent fell 45.5% year on year to ¥26.9 billion, reflecting the recording of expenses related to the acquisition of Tri Pointe Homes, lower profit margins in the U.S. housing business, and the recording of valuation losses in the U.S. real estate business.

In addition, in the first quarter we recorded extraordinary income derived from the partial sale of Kumagai Gumi Co., Ltd. shares, the gain on the transfer of building materials subsidiaries to GEOLIVE Group Corporation, and the partial sale of strategically-held shares.

Results by Segment

⚫ Net sales increased in the Timber and Building Materials, Housing, Overseas Housing, Real Estate, and Environment and

Resources businesses; however, income declined in every one of these businesses.

Timber and Building Materials Housing

Overseas Housing Real Estate

Environment and Resources Others and Adjustments

1,400

1,200

1,000

Net sales

800

600

400

200

FY12/25 Q2 FY12/26 Q2

Recurring 65 income 55

FY12/25 Q2 FY12/26 Q2

（） 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

* Recurring Incom e to N

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 et sales ratio

FY 1 2 /2 5

Q 21

2 1 .7

3 .0

2.5%

2 6 1 .2

1 8 .0

6.9%

5 7 2 .8

7 4 .5

13.0%

1 1 1 .6

-6 .3

1 2 .7

-0 .8

1 3 .9

2 .5

17.7%

-19.0

-2.6

1 ,0 7 4 .7

8 8 .2

8.2%

FY 1 2 /2 6

Q 21

2 2 .2

0 .6

0.5%

2 7 7 .4

1 6 .9

6.1%

7 2 5 .6

4 5 .7

6.3%

1 3 1 .6

-1 2 .9

1 3 .8

-1 .2

1 4 .7

1 .4

9.6%

-2 2 .0

-0 .7

1 ,2 6 3 .2

4 9 .8

3.9%

C h a n g e

+ 0 .6

-2 .4

-1.9% pt

+ 1 6 .2

-1 .1

-0.8% pt

+ 1 5 2 .8

-2 8 .8

-6.7% pt

+ 2 0 .0

-6 .6

+ 1 .2

-0 .5

+ 0 .8

-1 .0

-8.1% pt

-3.0

+ 1.9

+ 1 8 8 .5

-3 8 .5

-4.3% pt

P ct.

+ 0 .5

-7 9 .4

+ 6 .2

-6 .4

+ 2 6 .7

-3 8 .6

+ 1 7 .9

9 .1

+ 6 .1

-4 2 .2

+ 1 7 .5

-4 3 .6

---

Please turn to slide 6. These are our results by segment.

In the Timber and Building Materials business, although net sales increased in the distribution business and in manufacturing operations in New Zealand, Indonesia and elsewhere, income declined due to factors such as the delayed launch of the U.S. sawmill.

In the Housing business, the number of construction starts increased, reflecting favorable orders received in the custom-built detached housing business, and net sales exceeded those of the prior-year period. On the other hand, recurring income declined owing to a decrease in land sales gains at a subsidiary and an increase in expenses.

In the Overseas Housing business, net sales increased due to the new consolidation of Tri

Pointe Homes and the strong performance of the Australian housing business. Regarding the profit side, however, income declined despite higher income from the Australian housing business, due to the recording of expenses associated with the acquisition of Tri Pointe Homes and the lower profitability of the U.S. housing business against a challenging business environment.

In the Real Estate business, net sales increased due to factors such as higher fee income in the U.S. business; however, losses widened as a result of valuation losses recorded on certain projects and the postponement of the sale timing of domestic projects.

In the Environment and Resources business, net sales exceeded those of the prior-year period due to an increase in sales in the overseas forestry business. On the profit side, however, the recurring loss widened due to higher costs.

（） b illio n yen

O rd ers received

U n its & P rices o f

C u sto m -b u ilt d etach ed h o u ses

Sales

U n its & P rices o f

C u sto m -b u ilt d etach ed h o u ses

Custom -built detached houses

Apartm ents

U nits

U nit price (m il. Yen)

Custom -built detached houses

Apartm ents

D etached spec hom e

Renovation

O thers & Adjustm ents

TO TAL

U nits

U nit price (m il. Yen)

F Y 1 2 /2 5

Q 2

2 0 9 .8

1 2 .9

4 ,2 2 3

4 5 .1

1 8 6 .0

1 0 .3

9 .2

3 5 .5

2 0 .2

2 6 1 .2

3 ,7 5 5

4 7 .8

F Y 1 2 /2 6

Q 2

2 2 8 .1

1 4 .8

4 ,3 4 9

4 7 .8

2 0 0 .0

1 1 .0

1 0 .3

3 5 .7

2 0 .4

2 7 7 .4

3 ,7 8 4

5 0 .0

C h a n g e

+ 1 8 .3

+ 1 .8

+ 1 2 6 .0

+ 2 .7

+ 1 4 .0

+ 0 .7

+ 1 .1

+ 0 .3

+ 0 .2

+ 1 6 .2

+ 2 9

+ 2 .2

P c t.

+ 8 .7

+ 1 4 .3

+ 3 .0

+ 6 .0

+ 7 .5

+ 6 .3

+ 1 1 .5

+ 0 .8

+ 1 .1

+ 6 .2

+ 0 .8

+ 4 .6

Domestic Housing Segment

• Order Status

Orders for higher-priced properties grew, drawing on the design capabilities that are one of our strengths, as exemplified by the Grand Estate Design Project. In addition, we expanded our value-added proposals, including original kitchens and vanities. As a result, both orders received and unit price exceeded the same period of the previous year.

• Sales Status

Reflecting the strong orders received in the previous fiscal year, both sales and unit price in the custom-built detached housing business exceeded the same period of the previous year.

Next, I will explain the orders received and sales situation for our domestic housing business.

For orders of custom-built detached houses, as a result of promoting the Grand Estate

Design Project targeting the higher price range, strengthening “Forest Selection” and one- story home proposals in the mid-price range, and reinforcing value-added proposals such as our original kitchens and vanities, orders received exceeded those of the prior-year period in terms of value, number of units and unit price alike.

As for sales, on the back of strong orders received, the number of units sold, the unit sales price and sales revenue all exceeded those of the prior-year period.

Overseas Housing Segment

(Reference) Excluding the impact of TPH

• U.S. Housing

Recurring income is expected to decline year-on-year due to sluggish demand and intensified sales competition.

• Australian Housing

Due to strong order results and improved profitability, both net sales and recurring income increased.

• Others & Adjustments

Recording of acquisition- related expenses associated with TPH.

F Y 1 2 /2 6

Q 23

4 7 .3

3 1 .6

9.1%

3 2 .5

-0 .1

2 1 7 .9

1 9 .7

9.1%

0 .0

-0 .1

1 6 .8

-0 .5

6 1 4 .5

5 0 .7

8.2%

C h a n g e s

-26.7

-25.2

-6.1% pt

+ 6.9

-1.1

+ 59.0

+ 8.3

+ 1.8% pt

+ 0.0

+ 2.6

-5.8

+ 41.8

-23.8

-4.8% pt

P c t.

-7.1%

-44.4%

+ 26.8%

+ 37.1%

72.0%

+ 3.4%

+ 18.4%

+ 7.3%

-32.0%

FY12/25 FY12/26

（billion yen） Changes Pct.

Q2 Q2

U.S. Housing Net Sales 374.0 458.3 +84.3 +22.5%

Recurring income 56.8 37.0 -19.8 -34.8%

RI/Net sales ratio 15.2% 8.1% -7.1%pt -

FITP Net Sales 25.6 32.5 +6.9 +26.8%

Recurring income 0.9 -0.1 -1.1 -

RI/Net sales ratio 3.6% - - -

Australia Housing Net Sales 158.9 217.9 +59.0 +37.1%

Recurring income 11.5 19.7 +8.3 +72.0%

RI/Net sales ratio 7.2% 9.1% +1.8%pt -

Indonesia, Housing Net Sales 0.0 0.0 +0.0 +3.4%

Vietnam Recurring income -0.1 -0.1 +0.0 -

Others & Adjustments Net Sales 14.2 16.8 +2.6 +18.4%

Recurring income 5.3 -10.9 -16.2 -

TOTAL Net Sales 572.8 725.6 +152.8 +26.7%

Recurring income 74.5 45.7 -28.8 -38.6%

RI/Net sales ratio 13.0% 6.3% -6.7%pt -

FX rate (average during term)

USD/JPY 148.50 158.14

AUD/JPY 94.12 111.05

Next, please turn to slide 8. I will explain the Overseas Housing segment.

In the U.S. housing business, sales at existing subsidiaries declined owing to sluggish demand against a backdrop of persistently high mortgage rates and an uncertain economic outlook, while overall net sales increased owing to the new consolidation of Tri Pointe

Homes. On the profit side, even including the contribution from Tri Pointe Homes, income fell below that of the prior-year period, due to factors such as an increased incentive burden resulting from intensifying sales competition.

In the FITP business, higher raw material prices and transportation costs could not be covered by the increase in net sales, resulting in a loss.

In the Australian housing business, profitability improved on the back of strong orders received and cost-reduction initiatives, and both sales and income increased even as the competitive environment grew tougher in some regions.

Provisional amounts of expenses related to the acquisition of Tri Pointe Homes and goodwill amortization are recorded under “Others & Adjustments.”

As a result, for the Overseas Housing business as a whole, income decreased despite an increase in sales. Excluding the impact of consolidating Tri Pointe Homes as well, we secured an increase in sales owing to growth in the Australian housing business, while income declined due to the lower profitability of the U.S. housing business.

Overseas Single-Family Homes Business

• U.S. Housing

On a basis including TPH, both orders received and sales exceeded the same period of the previous year.

Excluding the impact of TPH, orders remained on par with the previous year.

However, the recurring profit margin declined year-on-year due to lower selling prices and higher sales incentives.

(Reference)Excluding the impact of TPH

• Australian Housing

Orders grew, centered on Western Australia and South Australia, with the number of units ordered up 9.6% year on year. The number of units sold also exceeded the same period of the previous year as construction progressed smoothly.

（） billion yen

U .S.

H ousing

N o. of Units order received

N o. of Units sold

Sales (mil. USD)

Unit sales price (thousand USD)

RI/N et sales ratio

FY 1 2 /2 5

Q 25

,3 1 2

4 ,8 8 4

2 ,5 1 9

4 9 6

1 5 .2 %

FY 1 2 /2 6

Q 25

,3 2 9

4 ,3 7 9

2 ,1 9 6

4 6 6

9 .1 %

C h a n g e

+ 1 7

-5 0 5

-3 2 2

-3 0

-6 .1 % p t

P ct.

+ 0 .3

-1 0 .3

-1 2 .8

-6 .1

FY12/25 FY12/26

（billion yen） Change Pct.

Q2 Q2

U.S. No. of Units order received 5,312 6,476 +1,164 +21.9%

Housing No. of Units sold 4,884 5,392 +508 +10.4%

Sales (mil. USD) 2,519 2,898 +380 +15.1%

Unit sales price (thousand USD) 496 506 +9 +1.9%

RI/Net sales ratio 15.2% 8.1% -7.1%pt -

Order backlog (units) 3,106 4,699 +1,593 +51.3%

Lots owned 51,832 67,321 +15,489 +29.9% completed inventory 2,075 2,152 +77 +3.7%

Option lots 31,701 41,597 +9,897 +31.2%

Australia No. of Units order received 3,991 4,375 +384 +9.6%

Housing No. of Units sold 3,636 4,005 +369 +10.2%

Sales (mil. AUD) 1,688 1,962 +273 +16.2%

Unit sales price (thousand AUD) 464 490 +25 +5.5%

RI/Net sales ratio 7.2% 9.1% +1.8%pt -

Order backlog (units) 7,872 8,467 +595 +7.6%

Next, please turn to slide 9.

I will explain the status of our single-family homes businesses in the U.S. and Australia.

In the U.S., both the number of units order received and the number of units sold exceeded those of the prior-year period, owing to the new consolidation of Tri Pointe

Homes.

On a basis excluding Tri Pointe Homes, the number of units order received was maintained at roughly the same level as the prior-year period, owing to factors such as an expansion in the number of communities and an increase in incentives.

Meanwhile, the recurring income to net sales ratio fell below that of the prior-year period due to discounts and an increase in incentives.

In the Australian single-family homes business, the number of units order received exceeded that of the prior-year period, with products for first-time buyers performing strongly, mainly in Western Australia and South Australia. The number of units sold also exceeded that of the prior-year period, reflecting smooth construction progress.

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

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)

Slides 10 and 11 show the quarterly trends for our U.S. single-family homes business, so please review them.

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

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)

Real Estate Segment

• Overseas (U.S. Real Estate)

The recurring loss widened due to the recognition of valuation losses on certain LP investment projects.

• Domestic (Property Management and

Real Estate Development)

While sales increased due to earnings contributions from LeTech, income declined as the timing of sales of some projects was pushed back.

（ b illio n y e n ）

O verseas U .S. R eal Estate

Pro p erty D o m estic

M anag em ent and

R eal Estate

D evelo p m ent

Construction

O thers & Adjustm ents

T O T A L

N et Sales

R ecurring inco m e

RI/N et sales ratio

N et Sales

R ecurring inco m e

RI/N et sales ratio

N et Sales

R ecurring inco m e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

R ecurring inco m e

RI/N et sales ratio

F X ra te (a v e ra g

U S D /JP Y

A U D /JP Y

F d

Y u

1 2 / 2 5

Q 2

8 0 .1

-2 .8

1 7 .3

1 .2

7.0%

1 4 .5

1 .3

9.2%

-0 .4

-6 .1

1 1 1 .6

-6 .3

- rin g te rm

1 4 8 .5 0

9 4 .1 2

)

Y 1 2 / 2 6

Q 2

9 1 .0

-1 0 .9

2 1 .8

0 .4

2 .0 %

1 8 .9

1 .5

7 .8 %

-0 .1

-3 .9

1 3 1 .6

-1 2 .9

1 5 8 .1 4

1 1 1 .0 5

C h a n g e

+ 1 0 .8

-8 .2

+ 4 .6

-0 .8

-5.0% pt

+ 4 .4

+ 0 .1

-1.4% pt

+ 0 .2

+ 2 .2

+ 2 0 .0

-6 .6

P c

+ 1

+ 2

-6

+ 3

+ 1 t.

3 .5

6 .4

3 .9

0 .0

9 .8

7 .9

Please refer to slide 12. These are the results of the Real Estate business.

Net sales in the U.S. real estate business exceeded those of the prior-year period, due to factors such as an increase in fee income from construction contracting. On the profit side, however, the disposition of properties has remained difficult as cap rates have stayed elevated, and only one property was sold in the cumulative second quarter.

In addition, we recorded valuation losses on some of the LP investment projects organized by a particular general partner (GP), following a review of project profitability.

As a result, the extent of losses widened from the prior-year period.

In the domestic rental management and real estate development business, net sales increased owing to the contribution from LeTech, which was consolidated in the second quarter of the previous fiscal year. On the profit side, however, income declined as the timing of sales for projects was pushed back to the second half.

Timber and Building Materials/Environment and Resources Segment

• Status of Timber and Building Materials

Net sales increased on the solid performance of the manufacturing business in New Zealand and elsewhere.

On the other hand, income declined due to factors such as delays in the launch of the U.S. sawmill acquired in the previous fiscal year.

• Status of Environment and Resources

Net sales increased due to higher sales in the overseas forestry business; on the other hand, income declined due to an increase in costs in the same business.

（

E a

） b illio n y e n im b e r a n d u ild in g a te ria ls n v iro n m e n t n d R e so u rc e s

R e t S a le s e cu rrin g in co m e

R I/N et sales ratio e t S a le s e cu rrin g in co m e

R I/N et sales ratio

F Y 1

2 / 2 5

1 2 1 .7

3 .0

2 .5 %

1 2 .7

-0 .8

F Y 1

2 / 2 6

1 2 2 .2

0 .6

0 .5 %

1 3 .8

- 1 .2

C h a n g e

+ 0

-2

-1 .9 %

+ 1

-0

.4 p t

P c

-7

+ t .

0 .5

9 .4

9 .1

Slide 13 shows net sales and recurring income for the Timber and Building Materials business and the Environment and Resources business.

In both segments, income decreased despite an increase in sales, due to the delayed launch of the U.S. sawmill in the Timber and Building Materials business and the impact of higher costs in the Environment and Resources business.

RR eal estate fo r sale an d eals estate fo r sale in p

U .S. (b il. Yen)

U .S. (m il. U SD ) ro cess

E n d

1 2 /2 o f

0 2 5

9 8 4 .3

8 3 3 .9

5 ,3 2 7

E n d o f

6 /2 0 2 6

1 ,6 3 5 .7

1 ,4 5 0 .3

8 ,9 3 1

C h a n

+ g

3 e s

5 1 .4

1 6 .4

,6 0 5

Balance Sheet － Assets

• Balance Sheet －Assets

Total assets increased due to factors such as the new consolidation of TPH in the U.S. and the depreciating yen.

（

） b illio n yen u rren t assets

Cash, deposits, securities

Receivables

Real estate for sale

Real estate for sale in process

O ther receivables

O thers o n -cu rren t assets

Land and Construction in process

O ther non-current assets

Intangible fixed assets

Investm ent securities

O thers o n -cu rren t assets

F X ra te (e n d o f te rm )

U SD /JPY

A U D /JPY

E n d

2 /2 o f

0 2 5

1,693.7

185.4

241.7

227.7

756.6

103.6

178.7

878.3

114.8

207.8

76.1

377.3

102.2

2,572.0

156.56

104.82

E n d o f

6 /2 0 2 6

2 ,4 3

2 3

2 6

3 1

1 ,3 1

1 2

1 8

1 ,1 5

1 0

2 3

2 4

4 5

1 1

3 ,5 9

1 6 2

1 1 1

6 .1

2 .6

3 .6

6 .9

8 .8

3 .9

0 .4

3 .9

9 .0

7 .9

2 .1

0 .0

4 .9

0 .0

.3 9

.5 6

C h a n g e s

+ 742.4

+ 47.2

+ 21.9

+ 89.3

+ 562.1

+ 20.2

+ 1.7

+ 275.6

-5.9

+ 30.1

+ 166.0

+ 72.7

+ 12.8

+ 1,018.0

Slides 14 and 15 present the balance sheet as of the end of the second quarter.

Total assets increased by ¥1,018.0 billion from the end of the previous fiscal year. This was mainly attributable to an increase of approximately ¥920.0 billion from the new consolidation of Tri Pointe Homes, together with a foreign currency translation impact of approximately

¥99.0 billion arising from the weaker yen.

Balance Sheet － Liabilities and Net Assets

• Balance Sheet －Liabilities and Net Assets

Interest-bearing debt increased due to factors such as the new consolidation of TPH and the depreciating yen. On the net assets side, foreign currency translation adjustment increased.

(b illio n yen )

Liab ilitie s

Payab les

In terest b earin g d eb t

C o n tract liab ilities

In co m e taxes p ayab le

O th ers

N e t asse ts

Sh areh o ld ers' eq u ity

A ccu m u lated o th er co m p reh en sive in co m e

Fo reig n cu rren cy tran slatio ad ju stm en t

N o n -co n tro llin g in terests

Sh are acq u isitio n rig h ts

T o tal liab ilitie s an d n e t asse ts n

2 n

/ d

2 o f

0 2 5

1 ,4 3

2 9

7 6

2 6

1 ,1 3

7 6

2 4

1 7

1 3

2 ,5 7

E n d o f

6 / 2 0 2 6

2 ,3

1 ,5

1 ,2

3 ,5

C h a n g e s

+ 9 1 4

+ 4 1

+ 8 2 9

+ 2 2

+ 2

+ 1 8

+ 1 0 4

+ 1 1

+ 7 9

+ 6 7

+ 1 3

+ 0

+ 1 ,0 1 8

In illio n yen ) te re st b e arin g d e b

Sh o rt-term b o rro w

Lo n g -term b o rro w

Bo n d s p ayab le

Lease o b lig atio n s t in g s in g s

2 n

/ d

2 o f

0 2 5

7 6

1 4

5 3

E n d o f

6 / 2 0 2 6

1 ,5

C h a n g e s

+ 8 2 9

+ 6 8 1

+ 4 6

+ 8 5

+ 1 6

On the liabilities side on slide 15, interest bearing debt increased by ¥829.5 billion due to the financing associated with the acquisition of Tri Pointe Homes and the impact of consolidating the company. On the net assets side, the foreign currency translation adjustment increased by ¥67.3 billion as a result of the weaker yen.

Investments / Real Estate for Sale / Cash Flow

• Status of Investments / Real Estate for Sale

Investment in the housing business includes equity contributions related to the acquisition of TPH.

The increase in properties for sale was mainly attributable to growth in the U.S. housing business and LeTech.

■ In v e stm e n t

(billion yen)

F o re sty -fu n d re la te d

F o re st re so u rce s b u sin e ss

T im b e r in d u stria l co m p le x

M a n u fa ctu rin g b u sin e ss

F IT P b u sin e ss

H o u sin g b u sin e ss

M e d iu m - to la rg e -sca le w o o d e n co n stru ctio n s

R e a l e sta te d e v e lo p m e n t b u

R e n e w a b le e n e rg y b u sin e ss

S y ste m -re la te d

O th e rs

T o ta l sin e ss

P h a s e 2

P la n

2 2 .0

5 .0

4 6 .0

4 4 .0

4 .0

3 3 .0

4 5 .0

1 4 4 .0

2 0 .0

3 0 .0

4 1 3 .0

F Y 1

2 / 2 5

0 .5

1 .1

8 .1

6 .7

3 .2

2 6 .7

1 .3

9 0 .0

0 .2

4 .7

1 2 .2

5 4 .5

2 6 / 1 2 2 Q

1 .8

1 .0

3 .0

1 .1

1 .4

6 2 3 .6

2 .0

2 7 .1

0 .2

3 .7

-1 3 .4

6 5 1 .6

P ro g re s s

R a te

+ 1 0 .2 %

+ 4 1 .0 %

+ 2 4 .1 %

+ 1 7 .7 %

+ 1 1 3 .7 %

+ 1 9 7 0 .8 %

+ 7 .4 %

+ 8 1 .3 %

+ 2 .1 %

+ 4 2 .2 %

-4 .0 %

+ 1 9 5 .2 %

■ R e a l E sta te fo r S a le （ In cre a se ）

(billion yen)

O v e rse a s H o u sin g

D o m e stic H o u sin g

T o ta l

* M edium -Term M anagem ent Plan Phase2：

P h a s e 2

F Y 1 2 / 2 5 P la n

2 6 5 .0 8 1 .3

3 5 .0 4 2 .3

3 0 0 .0 1 2 3 .6

FY12/2025 to FY12/2027

2 6 / 1 2 2 Q

4 3 .2

2 7 .0

7 0 .2

P ro g re s s

R a te

+ 4 7 .0 %

+ 1 9 8 .0 %

+ 6 4 .6 %

Next, please turn to slide 16. This shows the status of our investments.

Investments for the cumulative second quarter of FY12/2026 totaled ¥651.6 billion, and the increase in real estate for sale was ¥70.2 billion.

Of the investment amount, approximately ¥610.0 billion represents the acquisition of Tri

Pointe Homes. As this was a large-scale investment that had not been factored in when the current Medium-Term Management Plan was formulated, the cumulative amount as of the second quarter exceeds the total investment plan under the Medium-Term Management

Plan.

With regard to real estate for sale, we made a net investment of ¥70.2 billion, reflecting factors such as construction progress and land purchases at our U.S. housing companies and

LeTech.

That concludes the overview of our financial results for the second quarter of FY12/2026.

FY12/2026 Full-Year Forecast

Profit and Loss Statement

FY12/26 vs. previous

（billion yen） FY12/25 Changes Pct. forecast forecast

Net Sales 2,267.6 2,950.0 +682.4 +30.1% +360.0

• Overview of FY12/26 Forecast

Gross Profit 524.6 614.0 +89.4 +17.0% +54.0 Full-year earnings forecast revised in light of

SG&A Expenses 355.9 471.0 +115.1 +32.3% +68.0 Q2 results and other factors. Net sales have been revised upward by 360.0 billion yen, while

Operating Income 168.7 143.0 -25.7 -15.2% -14.0 recurring income and net income have been

Non-operating revised downward by 45.0 billion yen and 35.0

6.2 -28.0 -34.2 - -31.0 income billion yen, respectively. FX assumptions

Recurring income 174.9 115.0 -59.9 -34.2% -45.0 remain unchanged from the first-half average rates.

Recurring income to

7.7% 3.9% -3.8%pt - -2.3%pt

Net sales ratio

Extraordinary 5.3 9.6 +4.3 +80.2% +0.0 profit/loss

Net income 106.7 60.0 -46.7 -43.7% -35.0

EPS 174.13 97.85 -76.28 -43.8% -57.24

FX rate

USD/JPY 149.66 158.14

AUD/JPY 96.51 111.05

Next, I will explain our full-year forecast. Please refer to slide 18.

As Mitsuyoshi explained earlier, we have revised our full-year earnings plan in light of the second-quarter results and the outlook going forward.

We now forecast net sales of ¥2,950.0 billion, up ¥360.0 billion vs. the previous forecast; recurring income of ¥115.0 billion, down ¥45.0 billion; and net income of ¥60.0 billion, down ¥35.0 billion.

The exchange rates applied to the full-year forecast are the same as the average rates for

January through June that were applied to the second-quarter results.

Segment Net Sales and Recurring Income

• Overview of Recurring Income by

Major Segment

Timber and Building Materials

Income is expected to decrease due to delays in ramping up the U.S. manufacturing subsidiary, and the previous forecast has also been revised downward.

Domestic housing business

Recurring income has been revised downward due to a decrease in the number of completed units resulting from prolonged construction periods, as well as rising material costs.

Overseas Housing

While incorporating improved profitability in the Australian housing business, the profit forecast has been revised downward due to the recording of PPA-related expenses and a decline in profitability in the US housing business.

Real Estate

Reflecting the recording of valuation losses and a revision to the number of property sales in light of market conditions.

（） billion yen

Tim b er an d

B u ild in g M aterials

H o u sin g

O verseas

H o u sin g

R eal Estate

En viro n m en t an d

R eso u rces

O th ers

A djustm ent

TO TA L

R et Sales ecurring incom e

RI/N et sales ratio et Sales ecurring incom e

RI/N et sales ratio et Sales ecurring incom e et Sales ecurring 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 Y 1 2 /2 6 fo re ca st

2 5 5 .0

5 .0

2.0%

5 8 6 .0

3 4 .5

5.9%

1 ,7 7 6 .0

9 8 .0

5.5%

3 1 9 .0

-1 4 .5

2 8 .0

- 1 .3

3 1 .0

4 .5

14.5%

- 45.0

- 11.2

2 ,9 5 0 .0

1 1 5 .0

3.9%

C h a n g e s

+ 2 .0

-7.8

-3.1% pt

+ 4 3.7

-4.0

-1.2% pt

+ 5 70.1

-40.0

-5.9% pt

+ 6 4.9

-0.7

+ 1 .2

+ 0 .1

+ 2 .9

-0.5

-3.4% pt

-2.5

-7.0

+ 6 82.4

-59.9

-3.8% pt

P ct.

+ 0 .8%

-60.8%

+ 8 .1%

-10.5%

+ 4 7.3%

-29.0%

+ 2 5.6%

+ 4 .6%

+ 1 0.3%

-10.5%

---

+ 3 0.1%

-34.2%

- vs. p revio u s fo recast

-19.0

-5.0

-1.7% pt

-10.0

-3.5

-0.5% pt

+ 4 02.0

-15.0

-2.7% pt

-12.0

-15.5

+ 0 .0

+ 0 .2

+ 1 .0

+2.8% pt

-2.0

-7.2

+ 3 60.0

-45.0

-2.3% pt

Let me explain by segment on slide 19.

For the Timber and Building Materials business, the delayed launch of the U.S. sawmill is expected to affect the second half as well, and we have revised recurring income downward by ¥5.0 billion.

For the Housing business, factoring in the current delays in construction progress as well as the impact of rising material prices against the backdrop of the situation in the Middle East, we have set recurring income at ¥34.5 billion, ¥3.5 billion below the previous forecast.

For the Overseas Housing business, although we expect higher income from the Australian housing business, this will be outweighed by the recording of expenses associated with the acquisition of Tri Pointe Homes and by lower profitability at existing subsidiaries in the U.S.

We have set recurring income at ¥98.0 billion, ¥15.0 billion below the previous forecast.

For the Real Estate business, reflecting the impact of the valuation losses recorded in the second quarter as well as a reduction in the number of property sales factored in following a careful assessment of market conditions, recurring income is projected to fall ¥15.5 billion below the previous forecast, resulting in an expected loss of ¥14.5 billion.

（） b illio n yen

O rd ers received

U n its & P rices o f

C u sto m -b u ilt d etach ed h o u ses

Sales

U n its & P rices o f

C u sto m -b u ilt d etach ed h o u ses

Custom -built detached houses

Apartm ents

U nits

U nit price (m il. Yen)

Custom -built detached houses

Apartm ents

D etached spec hom e

Renovation

O thers & Adjustm ents

TO TAL

U nits

U nit price (m il. Yen)

F Y 1 2 /2 5

4 2 0 .1

2 6 .4

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 ,7 7 2

4 8 .6

F Y 1 2 /2 6 fo re c a st

4 3 5 .0

2 6 .0

8 ,3 0 0

4 8 .0

4 1 2 .0

2 3 .9

2 8 .0

8 0 .0

4 2 .1

5 8 6 .0

7 ,7 5 0

5 0 .4

C h a n g e s

+ 1 4 .9

-0 .4

-5 7

+ 2 .1

+ 2 3 .0

+ 4 .8

+ 7 .9

+ 2 .1

+ 5 .8

+ 4 3 .7

-2 2

+ 1 .8

P c t.

+ 3

-1

-0

+ 4

+ 5

+ 2 5

+ 3 9

+ 2

+ 1 6

+ 8

-0

+ 3

% vs. p revio u s fo recast

+ 1 5 .0

+ 0 .0

+ 1 0 0

+ 1 .5

-1 4 .0

+ 1 .2

+ 1 .8

+ 0 .5

-1 0 .0

-3 5 0

-0 .3

Domestic Housing Segment

• Ordersreceived(Custom-built detached houses)

(vs. Previous Forecast) Reflecting solid first-half performance supported by product strategies and sales initiatives, the second-half plan has been revised upward for both unit prices and order volume.

(vs. Previous Year) Order value is expected to exceed the same period of the previous year due to higher unit prices.

• Sales(Custom-built detached houses)

(vs. Previous Forecast) Sales value is expected to be below the previous forecast due to a reduction in the number of units sold.

(vs. Previous Year) Although longer construction periods are expected to weigh on unit sales, sales value is projected to exceed the same period of the previous year, supported by higher selling prices.

Next, please turn to slide 20. These are the forecasts for orders received and sales in the domestic housing business.

The number of units order received for custom-built detached houses has been solid, supported by the effects of our product strategy and sales measures, even as the business environment remains challenging. In light of this, we have raised our order outlook for the second half, and the value of orders received are planned to exceed the prior-year result.

Regarding the number of units sold, as I mentioned earlier, we have lowered the number of units sold from the previous forecast in light of the lengthening of construction periods, and it is now expected to be below the prior-year result. However, as we expect unit prices to rise on the back of expanded sales of high-value-added products, sales revenue is projected to exceed the prior-year result.

（） b illio n yen

U .S. H o using

FITP

A u stralia H o using

H o using In d o n esia,

V ietn am

O thers & Adjustm ents

T O T A L

N et Sales

R ecurring inco m e

RI/N et sales ratio

N et Sales

R ecurring inco m e

RI/N et sales ratio

N et Sales

R ecurring inco m e

RI/N et sales ratio

N et Sales

Recurring incom e

N et Sales

Recurring incom e

N et Sales

R ecurring inco m e

RI/N et sales ratio

F X ra te

U SD /JPY

A U D /JPY

F Y 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%

1 4 9 .6 6

9 6 .5 1

F Y 1 2 /2 6 fo re c a st

1 ,2 3 2 .0

1 0 1 .5

8.2%

6 9 .0

0 .7

1.0%

4 4 2 .0

3 7 .5

8.5%

+ 0.0

+ 0.8

3 3 .0

-4 2 .5

1 ,7 7 6 .0

9 8 .0

5.5%

1 5 8 .1 4

1 1 1 .0 5

C h a n g e s

+ 4 4 5 .9

-3 .7

-5.1% pt

+ 1 3 .7

-0 .2

-0.6% pt

+ 1 0 4 .2

+ 1 1 .2

+ 0.7% pt

-0.0

+ 1.5

+ 6 .3

-4 8 .7

+ 5 7 0 .1

-4 0 .0

-5.9% pt

P c t.

+ 5 6 .7 %

-3 .5 %

+ 2 4 .8 %

-2 0 .8 %

+ 3 0 .9 %

+ 4 2 .5 %

+ 34.2%

+ 2 3 .4 %-

+ 4 7 .3 %

-2 9 .0 %

- vs. p revio u s fo recast

+ 3 7 0 .0

+ 1 6 .0

-1.7% pt

+ 6 .0

-1 .8

-3.0% pt

+ 2 8 .0

+ 7 .5

+ 1.2% pt

+ 0.0

+ 1.9

-2 .0

-3 8 .6

+ 4 0 2 .0

-1 5 .0

-2.7% pt

Overseas HousingSegment

• Status ofU.S.Housing

Net sales are expected to increase due to the new consolidation effect of TPH. Although profit is expected to decline year-on-year due to a decrease in profitability in the existing US housing business, it is projected to exceed the previous forecast.

• Status ofAustralianHousing

Against a backdrop of strong order performance and steady construction progress, both net sales and recurring income are expected to exceed both the same period of the previous year and the previous forecast.

• Others & Adjustments

Profit has been revised downward due to the recording of PPA-related expenses associated with TPH. As a result, the overseas housing business segment as a whole is expected to fall below both the same period of the previous year and the previous forecast.

Please refer to slide 21. This provides details on the Overseas Housing segment.

This is a more detailed presentation of what I described earlier in the segment forecast.

The details are as shown; note that “Others & Adjustments” includes expenses associated with the acquisition of Tri Pointe Homes, such as one-time acquisition-related costs, goodwill amortization, and amortization of fair valuation differences on real estate.

Overseas Single-Family Homes Business

• U.S.Housing

Reflecting the expansion of housing lots by the five existing companies and the effect of the new consolidation of TPH, the number of units sold is expected to exceed both the previous forecast and the actual results of the previous year. On the other hand, the profit margin has been revised downward to reflect an increase in sales promotion incentives.

• AustralianHousing

Owing to strong orders and smooth construction progress, both the number of units sold and profit margins have exceeded the plan, and the recurring income forecast has been revised upward.

（

AH b illio n ye

.S . o u sin g u stra lia o u sin g

） n

N o . o f U nits so ld (includ ing TPH )

N o . o f U nits so ld (exclud ing TPH )

Sales (m il. USD)

U nit sales p rice (thousand USD)

R I/N et sales ratio

N o . o f U nits so ld

Sales (m il. AUD)

U nit sales p rice (thousand AUD)

R I/N et sales ratio

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 Y fo

1 2 / 2 6 re c a s t

1 4 ,1 6 0

1 0 ,2 9 0

7 ,7 9 1

5 2 0

8 .2 %

8 ,0 7 0

3 ,9 8 0

4 9 3

8 .5 %

C h a n

-5

+ 0 g e

3 ,8

2 ,5

.1 %

+ 6

+ 4

.7 % s

9 8

2 8

3 8

3 0 p t

6 6

8 0

2 0 p t

P c t.

+ 3 8

+ 0

+ 4 8

+ 6

+ 9

+ 1 3

+ 4

- v s. p re v io u s fo re ca st

+ 2 ,5 2 5

-1 ,3 4 5

+ 2 ,0 4 5

+ 5 4

-1 .7 % p t

+ 2 7 0

+ 3 7

-1 0

+ 1 .2 % p t

Please refer to slide 22, which provides details on the Overseas Single-Family Homes

Business.

For the U.S. single-family homes business, the full-year number of units sold is expected to exceed both the previous forecast and the prior-year result, owing to the steady opening of communities at our existing subsidiaries as well as the new consolidation of Tri Pointe

Homes.

On the other hand, the business environment surrounding the U.S. housing business remains challenging, and as further increases in sales promotion incentives are anticipated from the third quarter onward, we have revised the recurring income to net sales ratio downward from the previous forecast.

For the Australian housing business, we have raised our outlook for the number of units sold on the back of strong orders received and smooth construction progress to date, and as profit margins are also tracking above our assumptions, we have revised our recurring income forecast upward.

（ b illio n y e n ）

O verseas U .S. Real Estate

D om estic Property

M anagem ent and

Real Estate

D evelopm ent

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 rate

U S D /JP Y

A U D /JP Y

F Y 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

1 4 9 .6 6

9 6 .5 1

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

2 1 8 .5

-1 2 .5

6 2 .0

3 .5

5.6%

3 9 .0

4 .0

10.3%

-0 .5

-9.5

3 1 9 .0

-1 4 .5

1 5 8 .1 4

1 1 1 .0 5

C h a n g e

+ 3 8 .8

-1 1 .4

+ 1 8 .7

+ 0 .4

-1.5% pt

+ 7 .5

+ 1 .0

+ 0.8% pt

-0.0

+ 9.3

+ 6 4 .9

-0 .7

+ c t.

2 1 .6

4 3 .3

1 3 .8

2 3 .6

3 3 .5

2 5 .6

- vs. previous forecast

-1 5 .5

-1 6 .5

+ 4 .0

+ 0 .0

-0.4% pt

+ 0 .0

+ 1 .5

+ 3.8% pt

-0.5

-1 2 .0

-1 5 .5

RealEstate Segment

• U.S. Real Estate business

In addition to the loss recorded in Q2, the forecast has been revised downward to reflect delays in asset sales.

• The Property Management and Real

Estate Development business, the

Construction business

The Property Management and Real Estate

Development business is expected to perform broadly in line with the plan, while recurring income in the Construction business is expected to surpass the previous forecast due to steady progress on large-scale projects.

• Others & Adjustments

The year-on-year variance was attributable to one-off factors recorded in the previous fiscal year, including impairment losses on real estate development projects in Europe and Australia recognized at fiscal year-end.

Please refer to slide 23.

For the U.S. real estate business, reflecting the valuation losses recorded together with a cautious assessment of the property sales environment from the third quarter onward, we now expect a recurring loss of ¥12.5 billion, a deterioration of ¥16.5 billion from the previous plan.

For the domestic rental management & real estate development business, although the timing of some sales of LeTech’s residential projects has been delayed, we expect to make up for this in the second half and anticipate broadly on-plan progress.

For the domestic construction business, recurring income is expected to exceed the previous forecast, as construction on large-scale projects is progressing smoothly.

The remainder of the year on year change reflects special factors in the previous fiscal year, such as the valuation losses on real estate development projects in Europe and Australia recorded at the end of the previous fiscal year.

FinancialIndicators

⚫ Due to the effect of the weaker yen and the increase in assets and interest-bearing debt associated with the acquisition of TPH, the equity ratio declined, and the net D/E ratio rose.

Shareholders’ Equity / Equity Ratio / ROE Net Interest-Bearing Debt/Net D/E Ratio

（ (bbiilllliioonn yyeenn) ） Shareholder’s equity Equity ratio ROE （b(iblliilolino nyeyne ） n) Net interest-bearing debt Net D/E ratio

1,200.0 41.3% 40.6% 45.0% 1,600.0 1.2 1.4

39.0% 1,094.6

1,100.0 40.0% 1,400.0 1.2

1,000.0 1,004.0 30.5% 35.0% 1,200.0

920.3 1.0

30.0%

900.0 1,000.0

25.0% 0.8

800.0 754.1 800.0 1,351.4

700.0 14.8% 13.9% 20.0% 600.0 0.5 0.6

600.0 11.1% 1 1 0 5 . . 0 0 % % 400.0 0.3 0.4 552.1 0.4

500.0 5.0% 200.0 402.4 0.2

241.8

400.0 0.0% 0.0 0.0

2023/12E 2024/12E 2025/12E 2026/6E 2023/12E 2024/12E 2025/12E 2026/6E

Please refer to slide 24.

Total assets increased due to the weaker yen and the acquisition of Tri Pointe Homes, and as the increase in interest bearing debt associated with the acquisition financing outpaced the growth in shareholders’ equity, the equity ratio declined and the net D/E ratio rose.

Going forward, we intend to maintain financial discipline by advancing greater selectivity in investments and the selection and concentration of our businesses, while steadily executing growth investments to drive future earnings expansion.

This concludes the explanation. Thank you very much.

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]