INVESTOR RELATIONS

To Our Shareholders and Potential Investors in Treasure Factory We sincerely appreciate your investment or interest in Treasure Factory.

Thanks to the steadfast support of all our stakeholders, we were proud to celebrate the 30th anniversary of our founding on May 25, 2025. We are delighted to report that we marked this milestone year with record-high business performance. This was made possible by the continued patronage of our loyal customers, the unwavering support of our shareholders, and the dedicated efforts of all the staff who support our business, and we would like to express our deepest gratitude to them all.

Review of FY2026 (Previous Fiscal Year; Year Ended February 2026)

The previous fiscal year (FY2026, ended February 2026) was a year in which we accurately captured environmental changes and established a solid growth foundation for our company. While the business environment experienced shifts, including exchange rate fluctuations and changes in domestic consumer demand, demand for reuse continued to grow, driven by increased budget-consciousness amid rising prices and a trend toward sustainable consumption styles.

With this tailwind, net sales for the previous fiscal year reached 48.5 billion yen (up 15.1% year on year), and consolidated operating profit totaled 4.77 billion yen (up 18.4% year on year), marking a new record high.

The drivers of this strong performance were "strong purchasing" and "growth of existing stores."

On the purchasing side, in addition to the 30th anniversary campaign conducted in the first half, strengthening personnel for mail-in purchasing and in-home purchasing throughout the year resulted in significant growth not only in in-store purchases but also in non-store purchase channels. This has enabled us to secure ample inventory and has also contributed to smooth launches when opening new stores.

On the sales side, net sales at existing non-consolidated stores increased 4.6% year on year, achieving year-on-year growth for 54 consecutive months (four and a half years) from September 2021 to February 2026. This is the result of successful efforts to increase official app membership, leading to steady growth in the number of transactions.

Additionally, in the previous fiscal year, we set "valuing the customer perspective" as a company-wide goal. By practicing customer service that attends to each individual customer at each store and service, customer evaluations have improved, creating a virtuous cycle that leads to more store visits. Regarding new store openings, against our initial target of 30-35 stores, we steadily progressed with 32 new store openings and 4 store closures on a consolidated basis, meeting our targets. In July, we opened "Trefac Musical Instruments," a new business format specializing in used musical instruments, and in November, we started the "unstaffed dress rental business" through M&A, taking on challenges in new areas. Through business diversification spanning 13 business formats, we feel that evaluations from property owners and large commercial facilities have improved, and opportunities to receive property information with more favorable conditions have increased.

Regarding FY2027 (Current Fiscal Year)

We expect that the social tailwind for reuse will continue in the current fiscal year (fiscal year ending February 2027) as well. On the other hand, in order to overcome challenges such as strengthening recruitment capabilities for business growth, responding to wage increases, and the increasingly higher hurdles of previous year performance, this fiscal year we have set a new goal of "improving both 'Early Action' and 'High Speed,'" and we will promote our business more efficiently and speedily than ever in all aspects, achieving both efficiency and growth.

For domestic operations, we will continue to target 30-35 new consolidated store openings. We will pursue steady expansion while assessing the balance between existing areas such as the Tokyo metropolitan area, Northern Kanto, Kansai, Aichi, and Fukuoka, and new areas. We have already been steadily opening stores in March and April, and as of the end of April 2026, we expect to have a group total of 329 stores (including FC stores and unstaffed dress rental stores).

Regarding overseas operations, we aim to open our first store in the United States during this fiscal year. We are confident that our know-how in providing "joy, discovery, and excitement," which is our corporate philosophy, will certainly be accepted even in the U.S. market where diverse lifestyles exist. Starting with the first store, we will pursue early expansion, build a foundation for business expansion and profitability in the United States on a standalone basis, while simultaneously conducting research and selection of new countries and regions for expansion.

Although the target hurdle for this fiscal year is high due to strong performance over the past two fiscal years, we will further promote the growth of existing stores and new store openings, and aim to achieve record highs in net sales, operating profit, and ordinary profit this fiscal year as well.

Medium- to Long-Term Outlook

Our group has set medium- to long-term targets of achieving net sales of 71.0 billion yen and consolidated operating profit of 6.3 billion yen in FY2029. To achieve this, we will promote the following "5 growth strategies" and work to maximize corporate value.

Policy1Growth of the Reuse Business

As the core of our business, we will continue to open stores at a pace of 30-40 stores per year for the time being and strengthen our structure to expand the number of store openings each fiscal year.

Policy2 Investment in New Businesses

By strengthening businesses peripheral to reuse such as BtoB auction business, moving business, and rental business, we will enhance synergies with the reuse business, build a platform that can provide one-stop services by our company alone, and expand revenue opportunities.

Policy3Growth in Overseas Markets

In addition to Thailand, where we have already achieved standalone profitability and established a profit structure and opened our 5th store, and Taiwan, where we are transitioning to a clothing-focused model and improving profitability, we will focus on launching operations in the United States.
Furthermore, we will continue research and preparation for the next candidate locations for expansion.

Policy4Growth through M&A

We will actively consider and execute M&A of business formats that can complement and strengthen our expansion areas and specialized categories, primarily focusing on the reuse business.

Policy5Growth through DX Investment

Centering on our in-house systems department and development subsidiary, we will improve customer convenience and promote operational efficiency utilizing IT and AI.
With an eye on medium- to long-term business expansion and productivity improvement, we will strengthen investment in logistics functions in addition to DX and AI investments.

By expanding our points of contact with customers and the variety of services we provide across multiple business formats, our Group will maximize customer value and achieve sustainable future growth.

We look forward to the continued support and confidence of our shareholders and prospective investors.