Consolidated Financial Results for the Three Months Ended June 30, 2025(full version)

Company name: Scroll Corporation Listing: Tokyo Stock Exchange

Securities code: 8005

URL: https://www.scroll.jp/

July 31, 2025

Representative: Tomohisa Tsurumi, President

Inquiries: Yasunori Sugimoto, Director, General Manager of Corporate Management Dept. Telephone: +81-53-464-1114

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      June 30, 2025	21,698	3.2	1,689	(25.6)	1,836	(20.8)	1,231	(21.5)
      June 30, 2024	21,034	1.2	2,270	10.4	2,317	10.2	1,568	7.2

      Note: Comprehensive income For the three months ended June 30, 2025:	¥1,320 million	[(22.3)%]
      For the three months ended June 30, 2024:	¥1,699 million	[(7.2)%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	35.78	-
      June 30, 2024	45.79	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio
   As of	Millions of yen	Millions of yen	%
   June 30, 2025	54,480	37,069	68.0
   March 31, 2025	56,032	36,470	65.1

   Reference: Equity

   As of June 30, 2025: ¥37,069 million

   As of March 31, 2025: ¥36,470 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended March 31, 2025	-	24.00	-	27.50	51.50
   Fiscal year ending March 31, 2026	-
   Fiscal year ending March 31, 2026 (Forecast)		29.50		29.50	59.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the earnings forecasts most recently announced: None

1. Significant changes in the scope of consolidation during the period: None

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

4. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of June 30, 2025	34,629,200 shares
      As of March 31, 2025	34,415,000 shares

   2. Number of treasury shares at the end of the period

      As of June 30, 2025	3,161 shares
      As of March 31, 2025	1,261 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:nothing

• Proper use of earnings forecasts, and other special matters

(Cautions on forward-looking statements, etc.)

The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ from forecasts due to various factors in the future. Matters related to the above forecasts are referred to in Appendix P.3 "1. Summary of Operating Results, etc. (3) Explanation of Forward-Looking Information such as Consolidated Earnings Forecasts."

(How to obtain supplementary explanatory materials for financial results)

Financial results briefing materials will be disclosed on TDnet on the same day and posted on the Company's website.

Contents of Exhibit

1. Overview of business results 2

   1. Summary of operating results for the three months ended June 30, 2025 2

   2. Summary of financial position 3

   3. Explanation of consolidated earnings forecasts and other forward-looking statements 3

2. Quarterly consolidated financial statements and significant notes thereto 4

   1. Quarterly consolidated balance sheet 4

   2. Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income 6

      Quarterly consolidated statement of income 6

      Quarterly consolidated statement of comprehensive income 7

   3. Notes to quarterly consolidated financial statements 8

(Notes on segment information, etc.) 8

(Notes on significant changes in the amount of shareholders' equity) 9

(Notes on going concern assumption) 9

(Notes on quarterly consolidated statements of cash flows) 9

1. ‌Overview of business results
   1. ‌Summary of operating results for the three months ended June 30, 2025

      In the three months ended June 30, 2025, the Japanese economy has shown a gradual recovery trend due to improvements in the employment and income environment and increase in inbound tourism demand resulting from an increase in the number of foreign visitors to Japan. However, the outlook remains uncertain due to market volatility over the U.S. trade policies and heightened geopolitical risks in the Middle East, etc. In the retail industry, personal consumption activities continue to face difficult conditions as the positive trend in real wages has not become firmly established due to the continuous price hikes, especially for food products, and consumer sentiment is declining due to a growing trend of belt-tightening. In the mail-order industry, where a slowdown in the growth rate is seen, competition between companies across industries and business categories has been intensifying due to an increasing number of companies entering the industry.

      In this environment, the Group has set our Medium- to Long-Term Vision as "To become a true Marketing Solution Company (MSC), we will hone our uniqueness in Marketing Solution domain," and aims to enhance profitability by expanding our business domain without limiting ourselves to the direct marketing market

      while pursuing highly unique business models. In FY2025, we are working to improve the Group's corporate value by focusing on two main policies of "strengthening earning power by pursuing uniqueness" and

      "promoting of agile 'responsibility' management" by dedicating management resources to LPB (Logistics, Payment, and BPO).

      As a result, net sales for the three months ended June 30, 2025 amounted to ¥21,698 million (up 3.2% from the three months ended June 30, 2024). As for profits, operating profit was ¥1,689 million (down 25.6% from the three months ended June 30, 2024), ordinary profit was ¥1,836 million (down 20.8% from the three

      months ended June 30, 2024), and profit attributable to owners of parent was ¥1,231 million (down 21.5% from the three months ended June 30, 2024).

      Operating results by segment are as follows.

      Effective from the first quarter of the current fiscal year, the Company has partially changed the classification of its reportable segments, and in the following year-on-year comparisons, figures from the same quarter of the previous fiscal year have been compared based on the segment classification after such change. For

      details, please refer to "2. Quarterly consolidated financial statements and significant notes thereto (3) Notes to quarterly consolidated financial statements (Notes on segment information, etc.)."

      Net sales for each segment include intersegment sales or transfers.

      1. Solutions Business

         In the Solutions Business, we are working to expand our market by targeting all types of businesses without limiting our service offerings to the direct marketing market, capitalizing on our strength in providing the functions essential for direct marketing business operations on a one-stop basis. In addition to this, we will strengthen our profitability by developing high value-added businesses tailored to customer needs. With regards to distribution agency services, in response to growing logistics needs in the Kanto region, we have

         been working to develop our business foundation, including preparations for the opening of a third base in the Kanto area. In the marketing support business, the Group is leveraging its expertise to expand in-house retail development. In payment agency services, while transaction volumes remain steady, we are making efforts to rebuild the credit management system to reduce the risk of bad debts.

         As a result, net sales amounted to ¥8,663 million (up 25.0% from the three months ended June 30, 2024), and segment profit was ¥275 million (up 76.3% from the three months ended June 30, 2024).

      2. Mail-order Business

         In the Mail-order Business, net sales decreased due to the difficulty in obtaining orders for spring and high-

         summer products. Aiming to generate maximum profit under these circumstances, we are promoting business efficiency by controlling inventory and reducing and restraining various costs, including sales promotion

         expenses.

         As a result, net sales amounted to ¥10,172 million (down 8.0% from the three months ended June 30, 2024), and segment profit was ¥1,583 million (down 23.0% from the three months ended June 30, 2024).

      3. E-commerce Business

         In the E-commerce Business, we are promoting the completion of business restructuring, which has been underway since FY2024, and the transformation of the business model to build a new revenue base.

         As a result, net sales amounted to ¥3,148 million (down 7.8% from the three months ended June 30, 2024), and segment loss was ¥77 million (segment profit of ¥29 million in the three months ended June 30, 2024).

      4. Group Jurisdiction Business

         In the Group Jurisdiction Business, the Group's rental of real estate including its own logistics facilities, and Group logistics operations have been conducted. In its logistics operations, we reinforced its center operations in the Tokai, Kansai, and Kanto areas and strove to create a stable operating system. In addition to transactions within the Group, we are also engaged in sales activities to acquire external customers.

         As a result, net sales amounted to ¥929 million (up 5.6% from the three months ended June 30, 2024), and segment profit was ¥52 million (down 30.7% from the three months ended June 30, 2024).

   2. ‌Summary of financial position

      (Assets)

      Total assets as of June 30, 2025 were ¥54,480 million, down by ¥1,552 million compared with March 31, 2025. This is mainly due to a decrease in cash and deposits, a decrease in accounts receivable - other and an increase in accounts receivable - trade.

      (Liabilities)

      Liabilities were ¥17,410 million, down by ¥2,150 million compared with March 31, 2025. This is mainly due to a decrease in accounts payable - other and a decrease in income taxes payable.

      (Net assets)

      Net assets were ¥37,069 million, up by ¥598 million compared with March 31, 2025, and the equity ratio stood at 68.0%.

   3. ‌Explanation of consolidated earnings forecasts and other forward-looking statements

   As for consolidated earnings forecasts, there is no change in the full-year consolidated earnings forecasts for the fiscal year ending March 31, 2026 announced in the "Consolidated Financial Results for the Fiscal Year Ended March 31, 2025" as of May 7, 2025.

2. ‌Quarterly consolidated financial statements and significant notes thereto

1. ‌Quarterly consolidated balance sheet

   (Millions of yen)

   	As of March 31, 2025		As of June 30, 2025
   Assets
   Current assets
   Cash and deposits		8,125		6,001
   Accounts receivable - trade		11,863		12,509
   Inventories		8,646		9,144
   Accounts receivable - other		10,154		8,960
   Other		1,280		1,341
   Allowance for doubtful accounts		(1,391)		(1,510)
   Total current assets		38,679		36,448

   Non-current assets

   Property, plant and equipment

(Millions of yen)

1. ‌Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income Quarterly consolidated statement of income‌

   (Millions of yen)

   	Three months ended June 30, 2024		Three months ended June 30, 2025
   Net sales		21,034		21,698
   Cost of sales		11,873		12,245
   Gross profit		9,160		9,453
   Selling, general and administrative expenses		6,890		7,763
   Operating profit		2,270		1,689
   Non-operating income
   Interest income		4		14
   Dividend income		47		55
   Foreign exchange gains		-		29
   Gain on adjustment of accounts payable		12		15
   Recoveries of written off receivables		12		15
   Other		27		19
   Total non-operating income		104		150
   Non-operating expenses
   Interest expenses		2		3
   Foreign exchange losses		49		-
   Other		4		1
   Total non-operating expenses		57		4
   Ordinary profit		2,317		1,836
   Extraordinary losses
   Loss on retirement of non-current assets		0		-
   Total extraordinary losses		0		-
   Profit before income taxes		2,317		1,836
   Income taxes - current		605		510
   Income taxes - deferred		143		94
   Total income taxes		749		604
   Profit		1,568		1,231
   Profit attributable to owners of parent		1,568		1,231

   ‌Quarterly consolidated statement of comprehensive income
   			(Millions of yen)
   	Three months ended June 30, 2024		Three months ended June 30, 2025
   Profit		1,568	1,231
   Other comprehensive income
   Valuation difference on available-for-sale securities		140	146
   Deferred gains or losses on hedges		(18)	(47)
   Foreign currency translation adjustment		9	(9)
   Total other comprehensive income		131	89
   Comprehensive income		1,699	1,320
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent		1,699	1,320
   Comprehensive income attributable to non-controlling interests		-	-

2. ‌Notes to quarterly consolidated financial statements

1. the three months of the previous fiscal year (April 1, 2024 to June 30, 2024)

   1. Information on sales and the amount of profit or loss for each reported segment

      (in millions of yen)

      	Reportable segments					Adjustment amount (Note) 1	Quarterly Consolidated Statements of Income (Note)2
      	Solutions Business	Mail-order Business	E-commerce Business	Group Jurisdiction Business	Total
      Sales
      Revenues from external customers	6,601	11,052	3,372	8	21,034	-	21,034
      Transactions with other segments	326	0	43	871	1,242	(1,242)	-
      Total	6,927	11,052	3,416	880	22,276	(1,242)	21,034
      Segment profit (loss)	156	2,056	29	75	2,318	(0)	2,317

      Note: 1. Adjustments for segment profit or loss (loss) include unrealized profits of (0) million yen.

   2. Segment profit or loss (loss) is adjusted for ordinary income in the quarterly consolidated statements of income.

      2. Information on impairment losses or goodwill on fixed assets by reporting segment (Significant fluctuations in the amount of goodwill)

      In the Solutions Business, we acquired all shares of BeBorn co.,ltd. in the first quarter of the current fiscal year and became a consolidated subsidiary of the Company, resulting in goodwill of 630 million yen.

2. the three months of the current fiscal year (April 1, 2025 to June 30, 2025)

   1. Information on sales and the amount of profit or loss for each reported segment

      (in millions of yen)

      	Reportable segments					Adjustment amount (Note) 1	Quarterly Consolidated Statements of Income (Note)2
      	Solutions Business	Mail-order Business	E-commerce Business	Group Jurisdiction Business	Total
      Sales
      Revenues from external customers	8,361	10,172	3,117	47	21,698	-	21,698
      Transactions with other segments	301	0	30	882	1,214	(1,214)	-
      Total	8,663	10,172	3,148	929	22,913	(1,214)	21,698
      Segment profit (loss)	275	1,583	(77)	52	1,834	1	1,836

      Note: 1. Adjustments for segment profit or loss (loss) include unrealized profits of 1 million yen.

   2. Segment profit or loss (loss) is adjusted for ordinary income in the quarterly consolidated statements of income.

1. Changes to Reporting Segments, etc.

   One overseas subsidiary, which was previously included in the "Group Jurisdiction Business," has been included in the "Mail-order Business" from the first quarter of the current fiscal year in accordance with the change in the internal management classification. Segment information for the three months of the previous fiscal year is disclosed based on the classification of reporting segments for the three months of the current fiscal year.

2. Information on impairment losses or goodwill on fixed assets by reporting segment (Significant fluctuations in the amount of goodwill)

In the Solutions Business, we acquired all shares of ZonExpert Co., Ltd. in the first quarter of the current fiscal year and became a consolidated subsidiary of the Company, resulting in goodwill of 548 million yen.

Not applicable.

Not applicable.

The Company has not prepared quarterly consolidated statements of cash flows for the three months ended June 30, 2025. Depreciation

(including amortization related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30, 2024 and 2025 are as follows.

Three months ended June 30, 2024

Three months ended June 30, 2025

(Millions of yen)

Depreciation 236 211

Amortization of goodwill 31 58