Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

For this interim period, the Company achieved significant year-over-year increases with net sales of 8,053 million yen, operating income of 471 million yen, ordinary income of 496 million yen and net income attributable to owners of parent of 324 million yen. Net sales rose 20.1% and operating income increased 63.9%, supported by cost control and appropriate allocation of selling, general and administrative expenses. Although there is a single reportable segment, integrated operation of company-operated and franchise stores and increased royalty revenues contributed to performance. There were no major revisions to the beginning-of-period forecasts, and six company-operated store openings are planned for the second half. Financial position remains healthy with total assets of 7,824 million yen, net assets of 5,164 million yen and an equity ratio of 66.0%.

Shareholder Returns and Business Outlook

The dividend forecast is not disclosed in this summary; however, capital policy including future dividend policy will be of interest given the revenue and profit growth. The reuse business, including company-operated and franchise stores, is performing steadily amid market recovery, and growth is expected in the next fiscal year and beyond driven by store expansion and improved royalty margins. Attention should be paid to store opening plans through the fiscal year-end and upside/downside risks to future performance (market conditions, raw material costs and competitive dynamics).