Fiscal Year Ending December 2026 Q1 Earnings Presentation

Performance Overview

In the first quarter of the fiscal year ending December 2026, consolidated net sales were JPY 7,144 million, down 5.0% year-over-year, while operating income was JPY 1,571 million, up 0.5% year-over-year. The storage business saw net sales decline by 4.4% and segment profit slightly increase by 0.1% compared to the same period last year. Although the flow business (storage securitization and land rights adjustment services) contributed to revenue decline, the core storage operation achieved steady sales and profit growth. In the land rights adjustment business, sales included the disposal of underlying land with one used apartment building. Non-operating income in the previous period included relocation compensation due to withdrawal from storage properties.

Financial Position and Future Outlook

The equity ratio remained stable at 45.2%, and cash and deposits stood at JPY 15.5 billion, reflecting a stable financial foundation. Selling, general and administrative expenses increased by 7.9% year-over-year, with salaries per employee trending upwards due to lean management practices. Profit growth was supported by new store openings and increased operational units in the storage business. Going forward, the company aims for stable revenue and earnings growth driven by expansion of operational units from new store openings and effects of rental price revisions.