Supplementary Financial Report for Q3 Fiscal Year Ending March 2026

Performance Overview

For Q3 of the fiscal year ending March 2026, net sales amounted to JPY 174,918 million, an increase of 11.0% year-over-year. Operating income was JPY 10,131 million, up 13.3%. Ordinary income was JPY 10,495 million (+11.7%), and quarterly net income attributable to owners of parent was JPY 6,570 million (+10.3%), achieving both revenue and profit growth. Profit margins remained nearly unchanged from the prior year with an operating margin of 5.8% and an ordinary income margin of 6.0%.

Segment Sales Trends

In the transportation and delivery segment, the Last Mile business declined by 3.0% YoY, while the EC ambient temperature transportation business increased by 13.3%. Within the 3PL segment, the EC ambient temperature 3PL business increased by 18.3%, the chilled food 3PL business by 9.2%, and the pharmaceutical and medical 3PL business by 11.1%. Growth was driven by increased volume from existing clients, acquisition of new customers, and full-year operation of logistics centers.

Financial Condition and Assets/Liabilities

Total assets reached JPY 159,466 million, up 15.1% YoY, mainly due to increased fixed assets. Total liabilities increased by 21.3% to JPY 94,765 million; however, net assets also grew by 7.1% to JPY 64,701 million. The equity ratio is unknown, but both assets and liabilities are on an upward trend.

Outlook and Shareholder Returns

The progress toward the full-year earnings guidance for fiscal year ending March 2026 stands at 79.5% for net sales, 85.1% for operating income, 87.5% for ordinary income, and 90.0% for quarterly net income. The shareholder return policy is based on a progressive dividend approach with a target payout ratio of 40%. In the second half, expenses for new logistics centers and upfront investments to enhance productivity at existing centers are anticipated.