IDOM : ┗2nd Quarter Results for Fiscal Year Ending February 28, 2026

I am Nishihata, CFO of IDOM Inc.

‌Contents

1. FY2026 H1 Financial Results

4

2. FY2026 H1 Strategic Initiatives

15

3. Appendix

27

4. Appendix: Supplementary Performance and Financial Data

48

3

‌103*

Down 6% YoY

5

*Indexed to 2023 (Base year =100)

• Recorded a significant increase of 11% YoY

• Set a new first-half record for retail units sold

84,190 units

Up 11% YoY

Retail units sold

Retail units sold

Retail sales

• Underperformed due to the disposal of long-term inventories carried over from the previous fiscal year

• Recovered to the target level in August alone

FY2026 H1 Highlights

Gross profit per retail unit

Gross profit per retail unit

Retail sales

• Decreased 16% YoY, reflecting the delayed response to the downturn in the used car market that began in the previous fiscal year

8.5 billion yen

Down 16% YoY

Operating profit

Operating profit

Consolidated

Here are the highlights for the first half.

The first point concerns consolidated operating profit. Consolidated operating profit reached ¥8.5 billion. In the fourth quarter of the previous fiscal year, we increased inventory in preparation for new store openings. However, it took time to adjust to the subsequent market downturn, leaving us with

high-cost inventory. This resulted in a 16% decline compared to the strong results of the previous year.

The second point is retail gross profit per unit.

As mentioned earlier, selling inventory purchased at high prices increased our cost of goods sold.

While the second quarter saw an 8% improvement compared to the previous quarter, the first half as a whole showed a 6% decrease year-on-year.

The third point is retail units sold.

Retail units sold this period reached 84,190 units. This represents an 11% increase compared to the same period last year. The first half recorded the highest retail units sold in our history. Large stores contributed significantly to this growth in retail units sold.

‌8.5

6

QoQ change (11.7%) (2.9%) (19.3%) 17.9%

(billion yen)

(billion yen)

Trend in Operating Profit for FY2026

Highlights

Australian subsidiary whose shares were transferred

Consolidated (excluding Australia)

10

1.3

7.3

0

FY2023

FY2024

FY2025

FY2026

6

4

2

4.6

0

2025 Q2 2025 Q3 2025 Q4 2026 Q1 2026 Q2

The left side of the slide shows the four-year trend in operating profit for the first half. This period's operating profit of ¥8.5 billion represents a decrease compared to the strong performance of the previous fiscal year.

The right side of the slide shows the trend in operating profit over the last five quarters. It shows a recovery of +18% since the first quarter.

‌7

Note: IDOM research

2026/2

2025/2

2024/2

2023/2

2022/2

2021/2

2020/2

2019/2

2018/2

1,000

800

600

400

200

2017/2

Previous fiscal year

Average market price of vehicles purchased by IDOM

(thousand yen)

1,200

Trend in the Used Car Market

Market trend

This slide shows the trend in used car market prices relative to our purchase prices.

In the second quarter, the market shifted from the decline seen from the second half of last year into this fiscal year to an upward trend. The market in September also shows an upward trend.

‌83

8

83

80

60

40

20

0

2023 2023 2023

Q1 Q2 Q3

2023

Q4

2024 2024

Q2

2024 2024 2025 2025 2025 2025 2026

Q3 Q4 Q1 Q2 Q3 Q4 Q1

2026

Q2

2026 2026

Q1 Q3

Q4

Note: Index based on full-year gross profit per retail unit in FY2023 (set at 100)

Note: "2026" indicates the fiscal year ending February 28, 2026.

100

Target gross profit per retail unit for FY2026

99 100 100

108

113

108

108

113

120

120

114

108

140

120

Trend in Gross Profit Per Retail Unit

Highlights

This slide shows the quarterly trend in retail gross profit per unit since the fiscal year ending February 2023.

The orange line indicates the level of 111, which is the assumption for the full-year earnings forecast.

While we advanced inventory processing in response to market fluctuations, lingering effects caused Q2 results to remain below the forecast assumption.

However, gross profit levels are trending upward, with the August monthly figure improving to the Q2 level of the previous year (120).

We expect retail gross profit per unit to continue improving towards the full-year plan assumption.

Highlights

Major KPIs for FY2026 H1

9

Key Performance Indicators (KPIs).

Eight stores opened during the first half, progressing smoothly. Retail sales volume increased by 8,000 units.

Wholesale sales volume decreased by 1,900 units compared to the same period last year. Gross profit recovered from 87 in the first quarter to an average of 100 for the first half.

Consolidated Consolidated Statement of Income for FY2026 H1

*1 EBITDA = Operating profit + Depreciation

10

This shows the actual consolidated income statement. Revenue was ¥273.1 billion.

Gross profit increased by 1% year-on-year, while SG&A expenses rose by 6%.

As a result, operating profit was ¥8.5 billion, down 16% from the same period last year.

Net income for the period was ¥5.7 billion.

We disclose EBITDA. The calculation formula is shown below. The amount is ¥10.4 billion, with a margin of 3.8%.

Factors affecting the change in operating profit will be explained on the next slide.

‌0.8

11

expenses

large stores

Wholesale sales Personnel and Cost relating to SG&A expenses Subsidiaries FY2026 H1 hiring expenses the opening of and other operating profit

Retail sales

FY2025 H1

operating profit

6

4

2

0

-1.0

-0.8

8

8.5

-2.1

0.2

10.1

10

1.3

Non-consolidated factors: Down 2.4 billion yen

12

(billion yen)

FY2026 H1 Operating Profit - YoY Change Analysis

Consolidated

This slide shows the year-on-year change analysis for consolidated operating profit. The red box indicates factors specific to IDOM's standalone results.

The standalone profit decrease was ¥2.4 billion. The breakdown shows the Retail segment increased profit by ¥1.3 billion due to higher retail unit sales, while the Wholesale segment decreased profit by ¥2.1 billion.

Conversely, SG&A expenses increased by ¥1.6 billion due to higher rent costs associated with accelerated large-store openings, increased operating expenses, and the provision for doubtful accounts.

The difference between standalone and consolidated figures resulted in a positive impact of ¥0.8 billion.

Consequently, consolidated operating profit decreased by ¥1.6 billion year-on-year to ¥8.5 billion.

‌12

FY2025 H1 Personnel Commission Advertising Outsourcing Land rent Other FY2026 H1 SG&A expenses expenses expenses expenses SG&A SG&A expenses expenses expenses

❷

-0.1

-0.1

0.2

❶

-0.1

32.5

0.8 ❸

33.5

33.0

32.5

32.0

31.5

31.0

30.5

30.0

0.9 ➍ 34.1

(billion yen)

35.0

34.5

34.0

FY2026 H1 SG&A Expenses - YoY Change Analysis

Non-consolidated

The previous slide explained the factors affecting consolidated operating profit. I will now discuss the non-consolidated portion of SG&A expenses, highlighted in the red box.

We are actively recruiting personnel to support the opening of large-format stores. Recruitment levels are comparable to last year. The average increase in headcount was 247 people, while the average cost per hire decreased by ¥3,000, resulting in a ¥100 million reduction in personnel expenses.

We are striving for efficient use of advertising and promotion expenses.

Furthermore, with 23 more large-format stores compared to last year, rent expenses increased by ¥800 million.

Other SG&A expenses rose by ¥900 million. This includes numerous items such as travel expenses, transportation costs, and supplies. Due to strong sales in the installment sales business, we recorded ¥300 million in allowance for doubtful accounts.

As a result, standalone SG&A expenses increased by ¥1.6 billion to ¥34.1 billion.

Consolidated

Summary of the Consolidated Balance Sheet

Consolidated balance sheet (as of February 28, 2025)

Consolidated balance sheet (as of August 31, 2025)

• Total assets increased by 23.5 billion yen to 243.6 billion yen.

Assets ¥220.0 bn Liabilities ¥139.2 bn Assets ¥243.6 bn Liabilities ¥159.0 bn

• Accounts receivable increased by

5.5 billion yen, mainly due to an increase in installment sales.

• Inventories decreased mainly due to an 8.0-billion-yen reduction in unit volume, partially offset by a 3.0-billion-yen increase resulting from higher unit prices amid a market uptrend. We remain focused on inventory optimization while continuing to open large stores.

Net assets ¥80.8 bn

Net assets ¥84.4 bn

• Interest-bearing debt increased by

12.3 billion yen on a gross basis but decreased by 0.3 billion yen on a net basis. We also restructured short-term borrowings into long-term ones to enhance financial stability.

• The equity ratio was 34% on a consolidated basis.

13

This shows the status of the consolidated balance sheet (BS). Total assets increased by ¥23.5 billion compared to the end of the previous fiscal year, reaching ¥243.6 billion. On the asset side, accounts receivable, primarily from the installment sales business, increased by ¥5.5 billion to ¥32.5 billion at the end of this fiscal year. We plan to implement securitization (conversion to cash) in the third quarter to control the increase in accounts receivable.

Inventory decreased by ¥5.0 billion to ¥109.6 billion. This reflects an ¥8.0 billion decrease due to reduced unit sales and a ¥3.0 billion increase due to higher unit prices driven by market price increases. We continue to optimize inventory levels while opening large-format stores.

Liabilities increased by ¥19.9 billion to ¥159.1 billion.

Interest-bearing debt increased by ¥12.3 billion to ¥91.6 billion, and we simultaneously restructured debt from short-term to long-term. Considering cash and deposits, net interest-bearing debt decreased by ¥0.3 billion.

As a result, net assets increased by ¥3.6 billion to ¥84.4 billion, and the equity ratio reached 34%.

‌14

Free cash flow

Cash flows from investing activities

Change in trade receivables

Change in inventories

Pre-inventory buildup and

pre-trade receivables cash inflow

0.0

-5.8

2.0

6.0

4.0

2.0

❸

-9.3

12.0

10.0

8.0

12.1

16.0

14.0

❷

5.0 ❶

18.0

Investment cash flow Free cash flow

Down ¥5.8 bn Up ¥2.0 bn

Operating cash flow

Up ¥7.8 bn

(billion yen)

20.0

Analysis of Changes in Cash Flows

Consolidated

This shows the consolidated cash flow situation.

Operating cash flow generated ¥12.1 billion in cash before changes in inventories and accounts receivable. A ¥5.0 billion cash inflow from inventory reduction and a ¥9.3 billion cash outflow from increased accounts receivable resulted in a net operating cash flow of ¥7.8 billion.

Although accounts receivable increased significantly, we plan to implement securitization in the third quarter, similar to last fiscal year. This will improve free cash flow.

Regarding investing cash flow, we invested ¥5.8 billion in acquiring tangible and intangible fixed assets, such as large stores and maintenance facilities.

As a result, free cash flow (FCF) was positive ¥2.0 billion. That concludes my explanation

I am Takao Hatori, President.

I will now discuss our initiatives for this fiscal period.

‌Large stores

Newly Opened Stores

Recent store openings

[Large stores opened in Q2]

・Okazaki Store (June 2025)

・Hirakata Store (July 2025)

・Ibaraki Store (August 2025)

・Moriyama Store (August 2025)

・Hiroshima Interchange Store (August 2025)

・Hitachi Seaside Park-mae Store (August 2025)

Full-year progress

8/15 stores

Moriyama Store (opened in August 2025)

Nagoya City, Aichi Prefecture

Number of

large stores

(as of August 31, 2025)

77 stores

16

This period saw the opening of six large-format stores.

The total number of new stores opened in the first half reached eight, which will drive retail sales volume in the second half.

As of the end of August, we had 77 large-format stores.

‌Workshops

Newly Opened Maintenance Shops

Recent shop openings

[Maintenance shops opened in Q2]

・Okazaki Maintenance Shop (June 2025)

・Hirakata Maintenance Shop (July 2025)

Full-year progress

3/9 shops

Okazaki Maintenance Shop (opened in June 2025)

Okazaki City, Aichi Prefecture

Number of

maintenance shops

(as of August 31, 2025)

42 shops

incl. 28 designated maintenance shops

17

Additionally, we opened three new service centers. Progress toward our annual target of nine new centers is proceeding as planned.

As of the end of August, we operate 42 service centers.

Within this total, the number of designated centers capable of performing full vehicle inspections in-house increased by seven, reaching 28 centers.

‌18

Q4

Q3

Q2

Q1

0

1

3

2

5

5

9

8

10

11

15

15

Large stores Maintenance shops

(stores)

20

FY2026 Store Opening Plan

Large stores

This shows the large-format store opening plan.

Regarding the 15 stores planned for this period, all have been contracted and construction commenced,

progressing smoothly as planned.

‌19

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027

0

0

5

3

3

3

50

69

50,000

100

100

(unit volume)

100,000

Retail units

Total number of stores

(stores)

150

Trend in the Number of Large Stores and Retail Units

Large stores

Here, we will revisit the progress of large-format store expansion.

Since the mid-term management plan, we have steadily increased the number of stores.

Proportional to the store count, retail sales volume at large-format stores has also grown significantly.

‌Large stores Large Stores as the Key Driver of Stable Growth

Trend in net sales by business category

(billion yen)

500

Wholesale Other retail Large store retail

400

300

200

100

0

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

20

This graph shows the sales trends by business segment. While our existing businesses provide a solid revenue foundation supporting the overall performance, retail sales at large stores are significantly driving the company's total sales growth. The expansion of overall retail sales is further strengthening our sustainable revenue growth foundation.

‌Large stores Thinking Behind Our Large Store-driven Growth Strategy

Existing Gulliver

Purchase

Sell

Sell car

Purchase car

Vehicle Maintenance

inspection & repair

Purchase

Maintenance

Vehicle inspection

Maintenance

Vehicle inspection

Repair

Sell

21

Next, we will explain the rationale behind our growth strategy for these large stores.

At our traditional mid-sized stores and buy-and-sell shops, customer touchpoints were primarily limited to the purchase/sale transaction during the vehicle replacement cycle, said to be every 5 to 7 years.

The large stores with integrated service workshops, opened since the mid-term management plan, have successfully increased customer touchpoints through warranties, vehicle inspections, and maintenance.

This enables us to secure stable revenue through after-sales services and is expected to enhance customer loyalty, encouraging them to choose us again for their next vehicle purchase.

We anticipate this virtuous cycle will be key to our future growth.

‌Target gross profit per retail unit for FY2026

22

Note: Index based on full-year gross profit per retail unit in FY2023 (set at 100)

Q4

Q3

Q2

Q1

80

70

108

Gross profit per unit had already recovered to

last year's level by August

100

100

90

100

110

113

120

120

120

130

H2 Forecast: Gross Profit Per Retail Unit

FY2025 FY2026

Earnings forecast

Next, I will explain the current trends heading into the second half.

During the first half, the disposal of high-cost inventory pressured gross profit per vehicle.

However, as a result of swift corrective actions taken during the period, gross profit per unit for August alone has already recovered to the same level as the second quarter of the previous year.

Building on this experience, we have fundamentally strengthened our inventory management and operational systems. We will continue to enforce strict cost control through the end of the fiscal year.

Earnings forecast

Revised FY2026 Earnings Forecast - Key Assumptions

23

The left side of this table compares actual results for the first half with initial forecasts. Improving gross profit became a challenge for both retail and wholesale. As previously discussed, we advanced inventory management, and its effects began to appear starting in August alone.

The right side shows the full-year assumptions for retail and wholesale.

Reflecting the first-half results, we have revised the retail unit volume upward from the initial forecast and the retail gross profit per unit slightly downward.

For wholesale, we have revised the gross profit per unit based on the current trend.

Earnings forecast

Revised FY2026 Consolidated Earnings Forecast

24

This compares the revised full-year earnings forecast as of October 10 with the previous year's results.

We forecast net sales of ¥546.8 billion and operating profit of

¥20.1 billion.

We will recover the shortfall from the first half to achieve an increase in operating profit compared to the previous year's

¥11.9 billion.

Dividend policy Dividend Policy

Dividend per share

25

Dividend forecasts for the previous, current, and next fiscal years.

The interim dividend will be ¥15.43 per share.

The dividend amount for the current fiscal year is projected to be ¥37.35 per share for the full year.

In the first half, we fell short of our initial plan and revised our earnings forecast downward. Learning from this experience, we will further strengthen inventory management for the second half. A key point we consider important in inventory disposal is not just the holding period, but also disposing of inventory based on the difference between cost and market value.

First, the degree of price depreciation varies depending on the vehicle model. Additionally, vehicle value fluctuates with the seasons and exchange rates. We recognize the inherent nature of used cars, whose prices fluctuate due to various factors, and will implement optimal inventory management. In fact, the gross profit per unit sold in August and September has recovered to the level initially anticipated. Based on this solid foundation, we have revised our second-half earnings forecast upward. We will continue to strive for strengthening our management foundation and achieving sustainable growth.