FY3 2026 Financial Results Briefing（PDF / 2MB）

FY3/2026

Financial Results Briefing

AOYAMA TRADING Co., Ltd.

1. FY3/2026 Results

2. FY3/2027 Fiscal Year Plan and Shareholder Returns

3. Progress of Initiatives Under the New Management Structure

4. Progress of the Current Mid-Term Management Plan and Formulation of the Next Mid-Term Management Plan

5. Group Business

⑴ Change in Presentation Method

In the past, when leasing part of the company's real estate for retail use to other companies, the net amount of real estate rental income and real estate rental expenses was recorded in "Selling, general and administrative expenses." However, from the current consolidated fiscal year, the method has been changed to record it in "Net sales" and "Cost of sales". This change was made in order to more appropriately present the actual state of each business, because real estate rental income is expected to increase due to an increase in some rental properties in retail real estate, and the division that centrally manages and operates the company's rental real estate has decided to appropriately manage the profitability of some rental properties in retail real

estate. Segment information for the previous fiscal year has been prepared based on the new classifications.

⑵ Per-share Information

The Company conducted a 3-for-1 share split of its common share, effective April 1, 2026. “Net assets per share” stated in the reference data is calculated

on the assumption that the share split was conducted at the beginning of the previous fiscal year.

Summary of Business Segments

Note：Figures are rounded down to the nearest unit.

Note：Figures are rounded down to the nearest unit.

Note：Figures are rounded down to the nearest unit.

YoY of existing stores: 95.8％

【Climate and market environment】

Pushing back the actual sales period of autumn and winter products due to the extreme summer heat wave and its prolongation limited the sales period. Also, there were trend of consumer hesitance observed

due to uncertain outlook due to unstable international situation and soaring prices.

【Overview】

The number of menʼs suits (not including set-up suits) sold was 955 thousand (down 8.9% YoY).

These were affected by factors such as the market becoming more casual faster than expected and changes in the competitive environment.

The sales of business casual items (including cut-and-sew, polo-shirt, and knit)was favorable.

Result of the FY3/2026 56.2％（YoY +0.8pt / Compared to the revised plan -1.0pt）

【Positive factors】

In response to rising unit purchase prices due to soaring raw material prices and exchange rate fluctuations, our policy is to pass on the higher costs to our prices.

Sales increased from the previous fiscal year as a result of efforts to review the price of suits, curb discounts during the sales season, and improve the profit margin of custom-made suits.

In order suits, gross profit rate was improved 1.5pt from previous year due to changes in production bases and reviewing fabric and option price. In addition, there were 4.6pt improvement in gross profit rate

from previous year in casual items.

【Negative factors】

To attract customers and secure sales during the peak season, we enhanced our promotional offerings.

While this successfully boosted customer numbers, it created issues regarding unit prices and profit margins.

• Compared to the revised plan

  Unit: 100 million yen	Results of the FY3/2025	Results of the FY3/2026	YoY	Compared to the revised plan
  Personnel expense	232	232	+0.5	-8
  Selling expense	130	131	+1	+2
  ‣Advertising expense	84	87	+3	+0.1
  General and Administrative expense	105	105	+0.3	-6
  ‣Utility expense	28	25	-3	-1
  ‣Internet expense	24	28	+3	-1
  Property expense	170	161	-8	-1
  ‣Rent expense	141	134	-7	-0.3
  ‣Depreciation expense	21	19	-1	-0.8
  SG & A expense	637	631	-6	-14

  Personnel expense: -800 million yen

  Due to change in the estimate of retirement benefits due to a change in the personnel system.

  Utility expense: -190 million yen Internet expense: -190 million yen

  General and Administrative expense: -600 million yen SG & A expense: -1.4 billion yen

• YoY

【Personnel expense】

+50 million yen

While implementing wage increases, we optimized short-term part-time workers to improve labor productivity.

【Selling expense】

Advertising expense: +300 million yen

Due to strengthened sales promotion in the second half

【General and Administrative expense】 Utility expense: -300 million yen

Due to the influence of subsidies.

Internet expense: +300 million yen

Due to maintenance and additional development of

systems

【Property expense】

Rent expense: -700 million yen

Offset rising rent costs by closing unprofitable stores and relocating others to smaller, more efficient spaces.

1. FY3/2026 Results

2. FY3/2027 Fiscal Year Plan and Shareholder Returns

3. Progress of Initiatives Under the New Management Structure

4. Progress of the Current Mid-Term Management Plan and

   Formulation of the Next Mid-Term Management Plan

5. Group Business

Consolidated

Plan of the FY3/2027

YoY

（％）

Unit:

100 million yen

Note：Figures are rounded down to the nearest unit

Unit:

Non-Consolidated

Plan of the FY3/2027

YoY

（％）

100 million yen

Plan of the FY3/2027

YoY

（％）

Unit: 100 million yen

Note：Figures are rounded down to the nearest unit

124.8 billion yen (YoY: 102.2%)

・Business Wear Business 102.2% (YoY) Real Estate Business 100.9％ (YoY)

・YoY of existing stores Full-year: 101.7％（First half: 102.0％ / Second half: 101.5％）

【Initiatives】

・Continue the measures of customer acquisition, strengthening staff training to increase unit price of

per customer higher, and revitalizing existing stores.

・The plan of EC Sales: 5.5 billion yen（YoY 135％）

56.5％（YoY: +0.3pt）

・First half: 56.1％（YoY: +0.4pt）/ Second half 56.8％（YoY: +0.3pt）

【Initiatives】

・Revise promotion and discount rules drastically to curb excessive discounting.

・In order to reduce inventory at appropriate prices, carry out product transfers between "Yofuku-no-Aoyama" and "SUIT SQUARE" systematically and curb discounting.

64.5 billion yen（YoY: 102.1％）

・Personnel expense︓105.3% (YoY)

Revise the personnel system along with the review of the compensation system.

・Selling expense︓89.6% (YoY)

Invest to the effective promotional media by analyzing the effect of sales promotion.

・General and Administrative expense︓113.1% (YoY)

This is due to the system costs and increase in utility expense.

・Property expense︓Rent expense 95.8% (YoY)

This is due to the closure of unprofitable stores in previous year.

• Shareholder Return Policy

  During this mid-term management plan for FY3/2025 to FY3/2027, we will maintain its basic policy of actively and stably returning profits to shareholders while investing in growth to maintain and strengthen competitiveness and working to improve profitability and strengthen its financial position. In addition, to realize management that is conscious of the cost of capital and the share price, and to further advance initiatives to increase corporate value, we will adopt the higher of the consolidated dividend payout ratio of 70% or the dividend on equity ratio (DOE) of 3% and we will improve capital efficiency and increasing dividends over the mid to long term and pay dividends through profit growth. The company will flexibly conduct share repurchases with the aim of improving capital efficiency, while taking into account business performance, capital conditions, and market conditions, including stock prices. During the period of the Medium-Term Management Plan, the company will purchase up to 10 billion yen of its treasury share.

• Dividend

  Reference date	Dividends per share
  	Q2-end	Year-end	Total
  FY3/2025	30.00 yen	104.00 yen	134.00 yen
  FY3/2026	55.00 yen	81.00 yen	136.00 yen
  FY3/2027（Forecast）	19.00 yen	19.00 yen	38.00 yen

  Note：The Company conducted a 3-for-1 share split of its common share, effective April 1, 2026. For the fiscal year ended March 31, 2025 and 2026, the actual amount of dividends before the share split is listed. In consideration of this share split, the annual dividend for the next fiscal year (forecast) is 114 yen.

  The Company conducted a share split (3-for-1 share split of common shares) to increase the number of shareholders who support the Company's transformation and growth and to create an investment-friendly environment. We would like to increase the number of customers who actually come into contact with our products and services through our share holdings.

1. FY3/2026 Results

2. FY3/2027 Fiscal Year Plan and Shareholder Returns

3. Progress of Initiatives Under the New Management Structure

4. Progress of the Current Mid-Term Management Plan and Formulation of the Next Mid-Term Management Plan

5. Group Business

   Review of the FY3/2026

   Review of the FY3/2026

   President

   Taizo Endo

   One year has passed since I took over the baton of leadership under our new management structure. During this period, we have taken a serious look at our past actions, and have been searching for a corporate image that is appropriate for the times to come.

   At the same time, we have taken one step at a time to rejuvenate our organization and reform our mindset.

   Although there are issues with the current business performance, we are making steady progress in "reforming and laying the foundation for the next stage of growth," beginning with organizational restructuring, including business integration, human resource investment, digital utilization, and reform of marketing strategy, and I feel that we are receiving a solid response.

   We are unfettered by the conventions of the past and we are working as one to chart a vision for "New Aoyama."

   We will move forward in good faith so that shareholders can feel the change and the potential of our company even more.

   The most significant issue for management is to deal with the decrease in the number of customers.

   We implement measures with top priority on resolving these issues.

• Improvement of gross profit ratio and operating profit ratio

• Build & Scrap of unprofitable store

• Reduction of headquarters expenses

• Response to the casualization of office wear

• Response to decline in sales of suits

• Differentiation of products and services

• Review of business portfolio

Promotion of

business portfolio management

• Withdrawal from low-profit businesses and creation of new businesses

• Selection and concentration of management resources

Improvement in profitability

Response to the decrease in the number of customers

Recognition of Current Issues

(Repost: FY3/2026 Second Quarter Financial Results Briefing)

・Understanding of our product categories has not sufficiently permeated the market.

・Promotional activities tended to be focused on celebrity-based branding

and discount-driven appeals.

・We were unable to establish iconic products that are immediately associated with our company.

（Initiatives）

“Minna-no-suit” and revamping commercials.(Product-centric marketing)

・The need for casual office wear has not been fully addressed.

・Insufficient appeal of business casual items(including jackets, pants,

cut-and-sew, and knit)

・Implementation of measures in the first half of the fiscal year was delayed due to changes in the management structure.

（Initiatives）

Strengthening business casual items' lineup and VMD.

・Temporarily unlinking app membership accounts to enhance security

・Lower promotional effectiveness for active members due to higher-than-expected user burden for re-logging in.

・Inadequate promotional activities during the peak season.

（Initiatives）

Active member numbers have recovered to pre-unlinking levels through initiatives to encourage user re-login.

18

The number of customers recovered in the second half of the year.

FY3/2026 Result of the number of customers

（YoY of exiting stores）

1Q

2Q

3Q

January February March

98.7

99.6

96.6

95.8

94.3

※In January, there were about 3% of negative

effect by store closed on New Year's Day.

90.8

19

（％）

100

98

96

94

92

90

１．Renewal of management structure

～Eliminate sectionalism and build speedy management system～

Break down the traditional sectionalism structure

【

OMO and Retail Div.：

Consolidate Dept. of OMO promotion, retail,

and marketing (By making Dept. under the direct control of president, we will maximize the driving force)

DX Strategy Div.：

Realize Date Driven Management by promotion of DX

Human Resources Development Div.： Implement human resources strategy linked to management strategy

【

Old management structure： Sectionalism structure

Individual optimization of each business

Delayed in

OMO

Promotion

Time lag in decision making

Toward a Cross-sectional and

Speedy System

20