Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Operating Results

During the cumulative third quarter consolidated period of the fiscal year ending March 2026, although new car sales stagnated in the domestic automobile distribution market, expansion in used car registrations and used car export markets led USS Group's net sales to ¥82,969 million (8.2% year-over-year increase), operating income to ¥43,895 million (10.2% year-over-year increase), and net income attributable to owners of parent to ¥30,431 million (10.2% year-over-year increase). The auto auction business drove revenue and profit growth due to increased vehicle listings, contract volumes, and revised commission fees, while the used car purchase and sales business saw declines in sales volume resulting in lower revenue and profits. The recycling business increased net sales but posted a profit decline.

Financial Condition and Earnings Guidance Revision

As of the end of the third quarter of the fiscal year ending March 2026, total assets were ¥245,943 million, net assets were ¥199,754 million, and equity ratio was 79.7%. Cash and deposits decreased by ¥21,737 million, and total liabilities decreased by ¥13,804 million. Net assets were reduced due to dividend payments and share buybacks but were offset by net income attributable to owners of parent. The full-year earnings guidance was revised upward to net sales of ¥111,900 million (0.1% increase from previous forecast), operating income of ¥58,000 million (1.0% increase), and net income attributable to owners of parent of ¥40,000 million (0.9% increase), reflecting favorable vehicle listings and contract numbers.