Management Message

Reflecting on the fiscal year ended March 2026, our core auto auction business continued to achieve solid growth. The number of consigned vehicles exceeded 3.5 million, up 9.4% year on year, resulting in a market share of 43.2% (calendar year 2025 basis). Consolidated net sales reached ¥113.8 billion and operating profit totaled ¥59.8 billion, enabling us to achieve increases in both revenue and earnings. These accomplishments would not have been possible without the continued support of our customers, shareholders, and all other stakeholders, for which I would like to express my sincere gratitude.
For the fiscal year ending March 2027, we forecast consolidated net sales of ¥119.8 billion and operating profit of ¥61.0 billion.

Following the completion of the reconstruction of our Yokohama site in January 2026, we will continue to make strategic investments in major sites, including the Tokyo site and the HAA Kobe site. Our immediate priority is to address yard capacity constraints while expanding our vehicle handling capacity for future growth. Through these initiatives, we aim to increase our market share in the auto auction industry to 50%. We view a larger market share not as an end in itself, but as the foundation for providing a highly liquid marketplace where our customers can always trade with confidence.

We have also raised our medium- to long-term management target for ROE from 15% or higher to 20% or higher, effective from the fiscal year ended March 2026, reflecting our commitment to further enhancing capital efficiency and achieving sustainable growth in corporate value. With respect to shareholder returns, we have adopted a consolidated dividend payout ratio target of 60% or more beginning with the fiscal year ended March 2026, together with a total return ratio of 100% or more through the fiscal year ending March 2028. Since our listing, we have increased our annual dividend for 26 consecutive fiscal years, reflecting our commitment to providing stable and consistent returns to shareholders. Going forward, we will continue to enhance our corporate value over the medium to long term by maintaining an appropriate balance between strategic growth investments and shareholder returns.

We will continue to take on new challenges as one united group, striving to earn the trust of our customers, shareholders, and society by providing fair, transparent, and highly convenient auto auction services.
On behalf of the Group, I would like to sincerely ask for the continued support and encouragement of our shareholders and all other stakeholders.

June 2026