Fiscal Year Ending March 2027 — Q2 Earnings Presentation

Performance Overview

UP GARAGE GROUP Co., Ltd. achieved record high net sales and profits for the first half. Net sales were 8,053 million yen (YoY +20.1%), operating income 471 million yen (+63.9%), ordinary income 496 million yen (+76.1%), and net income attributable to owners of parent 324 million yen (+93.7%), marking substantial profit growth. Expansion in reuse demand and increased wholesale distribution to Nexlink drove growth. Company-operated store sales and higher franchise royalty rates contributed. In the second half, the company plans to open six company-operated stores, and the full-year forecast remains unchanged.

Outlook and Shareholder Returns

Although the full-year forecast is maintained, the company aims for growth assuming accelerated store openings and contributions from new stores in the second half. Planned openings include seven company-operated stores and ten franchise stores in total. The dividend policy targets a phased increase toward a 40% payout ratio to strengthen shareholder returns. The company will also work on reducing capital costs and improving ROE to enhance PER, and will strengthen IR activities and transparent information disclosure.