I extend my sincerest gratitude to our shareholders for your continued understanding and support.

The fiscal year ended March 2026 brought our Group a strong sense of accomplishment.
Assets under management (AUM) surpassed the all-time high set in 2006, reaching JPY 2,242.8 billion (Note 1) at the fiscal year-end. Against this backdrop of AUM growth, we achieved higher revenue and profits during the fiscal year.
Specifically, our Japan equity strategy delivered solid investment performance, translating into consistent earnings, and we recorded JPY 2,986 million in performance fees, a significant increase from the previous year. Moreover, base earnings (Note 2) reached a new all-time high, a convincing sign that our Group’s earning power has further improved.
We followed FY3/2026 with an extraordinary gain of JPY 1.5 billion from proprietary investments in Q1 of FY3/2027, demonstrating our ability to consistently generate profits from such investments. These results point to our Group’s earnings power becoming increasingly robust.
Our achievements have steadily laid the groundwork for SPARX Group's next phase of growth. With revenue growth and stability going hand in hand, I believe the quality of our business foundation has steadily improved, marking an important milestone for us.
In light of these circumstances, we are also reviewing our capital allocation strategy. We will optimize our cash and deposit levels—which we have carefully maintained to date—while upholding financial discipline and gradually increasing the allocation to growth investments. We will also address shareholder returns by beginning to disclose dividend forecasts and introducing interim dividends. We aim to enhance transparency and predictability and achieve stable, sustainable returns.
We are also making steady progress on specific growth initiatives. In April 2026, we established two new funds: the Monozukuri Mirai Fund II and the Mirai Creation Fund IV. Strengthening our foundation in the private equity sector will support the buildup of high-quality, stable management fees and generate ongoing performance fees.
Our next milestone of JPY 3 trillion in AUM is in sight, but we do not view growth in size as an end in itself. We place a high priority on achieving sustained, stable growth by maintaining a virtuous cycle of top investment results, talent development, quality earnings, and shareholder returns.
For FY3/2027, we have set a goal to increase both revenue and profits, and we will continue to make steady progress toward the next stage after achieving our JPY 3 trillion AUM target.

We will continue to strive to realize our mission: “to make the world wealthier, healthier, and happier” as SPARX becomes “the most trusted and respected investment company in the world.” We appreciate your continued guidance and encouragement in the future.