Supplementary Explanation Material for Q3 Financial Results for the Fiscal Year Ending March 2026

Overview of Performance

Consolidated results for the third quarter of the fiscal year ending March 2026 showed an increase in net sales to JPY 239,518 million (Year-over-Year 104.7%). This growth was supported by increased volume in special shipments, unit price revisions, an increase in chartered trips, expanded warehouse operating area, and the addition of newly consolidated international business. Operating income rose to JPY 8,706 million (Year-over-Year 102.8%) due to sales growth in charter and distribution processing businesses, contributions from newly consolidated international business, and improved profitability in the transportation business during the third quarter. On the other hand, ordinary income declined due to increased interest expense, but net income attributable to owners of parent for the quarter significantly increased because of gains on sales of investment securities.

Segment Performance and Outlook

By segment, the transportation business recorded net sales of JPY 185,105 million (Year-over-Year 104.1%), showing revenue growth; however, operating income decreased to JPY 6,437 million (Year-over-Year 98.8%). The charter, distribution processing, and international businesses posted increases in both revenue and profit. In the transportation business, profitability was improved through volume and unit price increases, phased freight rate revisions, and review of cargo mix. The full-year forecast for the fiscal year ending March 2026 anticipates net sales of JPY 316,300 million (Year-over-Year 104.6%), operating income of JPY 8,100 million (Year-over-Year 110.0%), and net income attributable to owners of parent of JPY 13,000 million (Year-over-Year 148.6%), expecting both revenue and profit growth.