Financial Summary for the Second Quarter of the Fiscal Year Ending June 2026 [Japanese GAAP] (Non-Consolidated)

Overview of Performance

For the second quarter of the fiscal year ending June 2026, net sales were 12,938 million yen (6.9% YoY increase), operating income was 3,685 million yen (8.6% YoY decrease), ordinary income was 3,682 million yen (8.2% YoY decrease), and interim net income was 7,237 million yen (163.5% YoY increase). The significant increase in interim net income was due to the recording of a special gain of 6,762 million yen from the sale of investment securities. This special gain was allocated to business investments as growth capital, and 453 million yen for advertising expenses and store relocation costs were recorded as selling, general and administrative expenses.

Segment Performance and Business Development

The net sales of the KeePer LABO Operations segment were 7,136 million yen (7.9% YoY increase), with segment profit of 1,318 million yen (21.6% YoY decrease). Demand recovered due to the launch of the new product 'Diamond II KeePer' and TV commercials, with December recording the highest monthly sales ever. The KeePer Products and Related Businesses segment saw net sales of 5,802 million yen (5.8% YoY increase), with the new car market expanding by 27.9%, increasing its composition ratio to 33.5%. Overseas expansion progressed with store growth in Taiwan, while other regions declined, resulting in a 15.7% decrease.

Financial Position and Revision of Earnings Forecast

Total assets stood at 32,847 million yen (an increase of 8,021 million yen compared to the previous fiscal year-end), and net assets were 23,596 million yen (an increase of 5,553 million yen compared to the previous fiscal year-end). Liabilities were 9,251 million yen (an increase of 2,467 million yen compared to the previous fiscal year-end). The full-year earnings forecast for the fiscal year ending June 2026 was revised to net sales of 26,300 million yen (13.9% YoY increase), operating income of 7,287 million yen (decrease from previous forecast), and net income of 9,340 million yen (increase from previous forecast). The decrease in operating income was mainly due to business investments associated with the special gain.

Dividend Policy

The annual dividend forecast for the fiscal year ending June 2026 is 100 yen (including a special dividend of 40 yen at the end of the third quarter and an ordinary dividend of 60 yen at the fiscal year-end), with no revision from the previous forecast. The special dividend is funded by the gain on sale of investment securities and aims to return value to shareholders.