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

Overview of Performance

For the fiscal year ending February 2026, consolidated operating revenue was JPY 542.317 billion, a 0.4% decrease year-over-year, while operating income was JPY 31.014 billion (6.7% decrease YoY), and ordinary income was JPY 29.158 billion (5.9% decrease YoY). Net income attributable to owners of parent was JPY 17.310 billion, up 1.0% YoY. Key factors included strong sales of air-conditioning related products due to the intense heat and an increased sales ratio of DCM brand products. On the other hand, demand for disaster prevention and security products declined after prior high demand. The company opened 9 new stores and closed 7, and consolidated Encho Co., Ltd. (53 stores) and Hometech Co., Ltd. (20 stores) as subsidiaries, resulting in a total of 918 stores.

Outlook and Dividend Policy

The earnings guidance for the fiscal year ending February 2027 forecasts net sales of JPY 577.3 billion (6.5% increase YoY), operating income of JPY 31.2 billion (0.6% increase YoY), and net income attributable to owners of parent of JPY 17.4 billion (0.5% increase YoY). The plan includes opening 10 new stores. Regarding dividends, the consolidated payout ratio target will be raised from 35% to 40% to enhance shareholder returns. The annual dividend for the fiscal year ending February 2026 was set at 47 yen (interim 23 yen, year-end 24 yen), and the forecast for fiscal year ending February 2027 is 48 yen (interim 24 yen, year-end 24 yen). Leveraging the synergies from the corporate integration with Encho Co., Ltd. and Hometech Co., Ltd., the company aims to expand business segments and strengthen its earnings base.