FY2026 Q3: The Transcript of Financial Results Briefing (Including Q&A Session)

Q3 Financial Results Briefing for the Fiscal Year Ending June 2026 May 11, 2026

(Total: 41 minutes, Presentation: 15 minutes, Q&A: 26 minutes)

Tetsuro Yoshimatsu Representative Director, Chairperson and

CEO

Hajime Endo Representative Director, President and COO

Kei Sugawara Director, Vice Chairperson and CFO

Kensaku Hamada Senior Executive Officer and CSO

First, we would like to introduce our speakers: Tetsuro Yoshimatsu, Representative Director, Chairperson and CEO, and Hajime Endo, Representative Director, President and COO.

Today's agenda: After an overview of our financial results, we will hold a Q&A session with investors, followed

by a Q&A session with the media.

First of all, Mr. Yoshimatsu, Chairman of the Board, would like to make a few remarks. Thank you very much.

Now, we would like to present our financial results for Q3 of the fiscal year ending June 30, 2026. The numbers for Q3 show that our current progress is really on track against the social environment, which has changed considerably from what we had envisioned before this period began

Executive Summary. Consolidated net sales and consolidated operating profit are on track to meet the full-year earnings forecasts at 19.7% and 23%, respectively, in YoY terms.

First, the retail itself has presented some more challenges than we anticipated. This is because of inbound issues and product prices, and on the other hand, marketing is progressing well. Overall, we feel that the figures of about 20% in consolidated sales and 23% in consolidated operating profit are in line with our plan.

As for topics, user actions are going well, and there is nothing to worry about as a business due to any uncertainties.

Rather, I think the most important thing is whether we can keep up with changes in the environment surrounding our business and society, whether we can invest aggressively in this environment, and whether we can properly prepare for the remaining Q4 and next fiscal year.

Endo will now explain the figures in more detail. Thank you very much.

As explained by Yoshimatsu, net sales were up 19.7% YoY to JPY59.69 billion. Operating profit was also JPY2.88 billion, or 23% YoY.

With respect to each segment, the marketing solution business is one of our most important areas for growth in recent years, as I have explained. Sales were JPY8.97 billion, up 27% YoY, and operating profit was JPY2.6 billion, up 26.2% YoY. We explained that we would properly expand the marketing support business here, and it is growing steadily.

Regarding the retail business, there were delays in EC deliveries at the end of Q3. We have been sending out that message online, but I also think that some of the local stores in the real stores have struggled. Despite these circumstances, both sales and profits continued to increase at both local and EC stores.

Sales were JPY45.57 billion, 17.9% YoY, and operating profit was JPY2.6 billion, 21% YoY, so I think we are growing, albeit at a painful pace.

As for the global business, although sales have increased due to the contribution of the Hong Kong flagship store, the Hong Kong flagship store is currently struggling from the standpoint of profitability. As I will explain later, the impact of these factors resulted in a 31% YoY in sales to approximately JPY4 billion and operating income of negative JPY330 million.

As for other business, although profits declined due to the termination of some other B2C billing services, they were well within expectations. Corporate expenses were also negative JPY2.06 billion, or negative JPY97 million YoY, and I think we have this under control as well.

Cumulative of three quarters: that's the progress against the consolidated earnings forecast.

The top line is 71.9% in progress. Operating profit is 75.9% in progress. Ordinary profit was about 80%, and net profit was about 74%, so I think we are on track to meet our budget for the full year.