#FinancialResults

At the 63rd fiscal year (2025) financial results briefing, it was explained that operating income fell short of the plan by approximately 900 million yen, primarily due to increased SG&A expenses and delays in securing large overseas projects.

For the third quarter of the fiscal year ending February 2026, net sales and operating income increased over 10% year-over-year, exceeding plans. Existing store net sales rose steadily to 104.8% year-over-year. The company aims for a dividend payout ratio above 30% with expected dividend increase.

The financial results of the unlisted parent company, SMS Holdings Limited Liability Company, for the fiscal year ending December 2025 showed net sales of 9,859 thousand yen, operating loss of △121,526 thousand yen, and net income of 1,143,034 thousand yen.

For fiscal 2025, net sales reached JPY 349.477 billion (up 19.9% YoY), operating income was JPY 18.552 billion. For fiscal 2026, net sales are projected at JPY 400 billion (up 14.5% YoY), with operating income forecasted at JPY 25 billion.

Q3 FY2026 saw a revenue turnaround due to recording sales from large-scale events. Emphasized business efficiency improvements and competitive strengths through AI utilization; full-year guidance remains unchanged.

Net sales for the fiscal year ended December 2025 were JPY 174.002 billion (up 5.6% Year-over-Year), operating income was JPY 19.722 billion (up 0.4% YoY), and net income attributable to owners of parent was JPY 14.444 billion (down 9.1% YoY).

For the cumulative Q3 of FY2025, orders received amounted to ¥55,241 million (YoY +8.5%), net sales were ¥47,101 million (YoY +1.7%), and operating income was ¥4,282 million (YoY -12.9%).

In the fiscal year ending December 2025, eWeLL achieved record-high profits for the seventh consecutive term, maintaining a high-profit structure with an operating income margin of 45%. The commencement of AI service billing in 2026 and plans for revenue growth in the mid-term management plan are also presented.

For the fiscal year ending December 2025, operating revenue was 48,547 million yen, down 5.2% year-over-year (YoY), and net income attributable to owners of parent was 19,299 million yen, down 18.0% YoY. Earnings guidance for the June 2026 period anticipates operating revenue of 53,924 million yen and net income of 24,064 million yen.

In the Q2 financial results presentation materials for the June 2026 period, corrections were made to errors in sales figures for "non-automotive services" and "overseas business." Non-automotive services were revised to 162 million yen (YoY -54.1%), and overseas sales to 43 million yen (YoY -15.7%).

Approximately 1 billion yen in treasury unit acquisition; conducted asset replacement through property sale and acquisition. Targeting ROE of 7.04%, expected to be achieved in the fiscal year ending December 2025. Sale proceeds will be utilized for the acquisition of Atsugi Iiyama South Factory and treasury unit acquisition.

For the fiscal year ended December 2025, consolidated net sales were 86.65 billion yen (YoY +6.7%), operating income was 6.18 billion yen (YoY +35.5%), and net income attributable to owners of parent was 3.81 billion yen (YoY -12.5%).