KeePer Technical Laboratory – Financial Results Presentation Materials for Q2 FY2026

Overview of Performance

Net sales for Q2 FY2026 rose 6.9% YoY to 12,938 million yen, driven by higher sales in both the product-related business and LABO operations. Operating income declined 8.6% YoY to 3,685 million yen, but operating income adjusted for special gains increased 2.7% YoY to 4,138 million yen, while net income surged significantly to 7,237 million yen. The operating margin was 28.5%, down 4.8 points from the previous year. Product-related sales were 5,802 million yen (YoY +5.8%), and LABO operations recorded 7,136 million yen (YoY +7.9%).

Segment Trends and Impact of Special Gains

The product-related business saw steady performance in the aftermarket and a 27.9% increase in the new car market. LABO operations grew due to higher customer visits and increased average spending, resulting in sales growth. Advertising expenses and store-related costs, funded by special gains of 453 million yen, were recorded and impacted operating income. Operating income excluding special gains rose 8.8% YoY to 2,757 million yen. The special gains were allocated to shareholder returns (including a special dividend of 40 yen per share) and growth investments such as employee benefits, marketing, store investments, and M&A contributions. A five-year plan is also being developed and will be disclosed promptly.