Az Partners <160A> operates in the senior business (providing services such as assisted living homes, day services, and short stays) and the real estate business (real estate development of assisted living homes, revitalization of aging real estate, and rental of apartments, etc.).

In the company's "assisted living homes," efficiency and productivity improvements are a strength due to the jointly developed iot/ICT platform "EGAO link" with vendors. The number of business locations for care services currently includes 27 assisted living homes, 16 day service sites, and 4 short stay facilities, and the company is mainly adopting a dominant strategy for care services in the metropolitan area. In the future, the company plans to open about 2 to 4 assisted living homes and day service sites each fiscal year, with 1 to 2 of these being developed in-house, acquiring real estate independently. Specifically, there are plans to open 2 assisted living homes (1 of which will include a day service) by March 2025. The occupancy rate of newly opened assisted living homes is low immediately after opening, aiming to achieve a 95% occupancy rate within around 1.5 to 2 years.

For the first half of the fiscal year ending March 2025, revenue was 10,587 million yen and operating profit was 1,303 million yen. The senior business saw an increase in revenue and profit due to the rising occupancy rate of the 3 new assisted living homes opened in the previous term, maintaining over 94% high occupancy in existing assisted living homes. The real estate business contributed as planned through the sale of large projects in senior development. The full-year revenue is expected to be 17,842 million yen, a 4.0% increase year-on-year, with operating profit expected to rise 58.9% to 1,280 million yen. In comparison to previous expectations, the interim revenue trend for both senior and real estate segments has exceeded forecasts, with the lower half expected to show discrepancies between the progress of Q3 and Q4 due to the transition of real estate projects in Q3 to Q4 relative to previous estimates. Concerning operating profit, it has already surpassed projections, but the third quarter is predicted to show operating loss due to temporary expenses related to new openings and the 20th anniversary. The fourth quarter is expected to show positive operating profit due to increased occupancy in the senior business and elimination of temporary expenses.

The population aged 85 and older, which is the target for the company's senior business, is expected to consistently increase until 2040, along with the projected service demand for assisted living homes from the government. In this context, the company seems to aim for accelerated revenue growth and improved profit margins through concentrated developments and the establishment of large homes in regions with high convenience, continuing to implement a dominant strategy in the metropolitan area to enhance awareness and promote the opening of new large homes with 70-90 rooms. With the help of "EGAO link" and data-driven care, the company envisions the potential for larger homes, expecting that increased personnel efficiency due to scaling up will enhance profit margins. Additionally, as the national government raises the care service fees set for fiscal year 2024 and implements increases in monthly usage fees for customers, this will likely serve as a revenue-boosting factor. Furthermore, by capturing strong business expansion needs throughout the senior industry, the company plans to expand its senior development operations with high profitability and strengths, targeting 2-3 developments per year. In the long term, the company also envisions developing sales of care systems and apps, along with care DX consulting. Additionally, plans for stable dividends to return to shareholders are in place, with a target dividend payout ratio of over 20% and a dividend yield in the 2% range. Successful improvements in care quality through DX may also provide opportunities for a departure from low p/e ratios associated with care and real estate businesses, making it likely to attract attention as one of the recent ipo candidates.