INVESTOR RELATIONS

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

Review of the First Half of FY2026

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 dedicated efforts of our shareholders, our loyal customers, and all the staff who support our business, and we would like to express our deepest gratitude to them all.

In the first half of the fiscal year ending February 2026, despite a business environment marked by exchange rate fluctuations and shifts in domestic consumer demand, we capitalized on favorable tailwinds such as the growing need for reuse services amid rising prices. As a result, we achieved record highs for net sales, operating profit, and ordinary profit. Net sales were 22.4 billion yen, an increase of 14.5% year on year, and consolidated operating profit was 1.91 billion yen, an increase of 10.0%.

Non-consolidated existing store sales increased by 4.3% year-on-year, marking the 48th consecutive month of growth and four straight years of exceeding the previous year's sales levels. This strong performance was primarily supported by two factors: strength in our procurement of goods and steady growth at existing stores.
In the first half, in addition to our 30th-anniversary campaign, we strengthened our staffing for our home-delivery purchasing and in-home purchasing. As a result, our non-store channels grew significantly, complementing our in-store purchasing. The ample inventory from non-store purchases has also contributed to the smooth start-up of new store openings.
Growth at existing stores is underpinned by both unit sales prices and the number of sales transactions. The increase in transactions was particularly strong in the first half, driven by successful initiatives to attract more official app members.

In the current fiscal year, our group's goal is to place a high priority on the customer's perspective. As each of our stores implemented initiatives tailored to individual customers, we created a virtuous cycle: customer reviews improved, leading to more store visits. We will continue to share best practices throughout the company and strive to improve service levels.

In the first half of the fiscal year ending February 2026, we increased our new consolidated store openings to 18, up from 11 in the same period of the previous year. In the second half of the fiscal year, we opened stores in September and October, bringing the total to 314 as of the end of October 2025 (including FC stores). We are also making progress as planned in securing properties in order to achieve our goal for the current fiscal year of opening 30-35 new stores.
In July, we opened a new business format, Trefac Musical Instruments, which specializes in used musical instruments, and this also made a good start. We will continue to meet the diverse needs of our customers by emphasizing a satisfying customer service experience.
We have seen growing recognition for the expansion of our business scale and our diversification across 13 business formats, leading to an increase in store opening inquiries and offers from shopping malls and other large-scale commercial facilities. The launch of our new stores has been generally strong. For instance, even at a store opening in a new region for us, we had a queue of nearly 100 customers before the doors opened. Going forward, we will continue to strengthen store openings in favorable locations and expand into regions where we do not yet have a presence.

Efforts in the second half of the fiscal year ending February 2026

Interest in sustainable consumption styles remains high, representing a continued tailwind for the reuse market. While accurately grasping these opportunities, we will always pay attention to exchange rate fluctuations and trends in domestic consumption, and respond flexibly to changes.
On August 14, we announced the establishment of a U.S. corporation. Based on the knowledge we have cultivated in our overseas business to date, we investigated and examined a number of candidate sites. As a result, we selected the United States, which is the world's largest consumer market and where the reuse market is brisk, as the next stage for growth. We are confident that our operational know-how will be well-received in the diverse U.S. market, allowing us to deliver our core value proposition of "pleasure, discovery, and excitement" to a wider audience.
In the second half of the fiscal year, the Group will continue to make efforts to further improve customer satisfaction and service levels by "valuing the customer's perspective" domestically, while preparing to enter the U.S. market. While it is a high goal to surpass the results of the previous fiscal year, which showed favorable results, we aim to achieve further business growth so that we can achieve record-high net sales, operating profit, and ordinary profit for the full year by promoting the growth of existing stores and the opening of new stores.

Medium-to Long-Term Growth Strategies

Our Group has 5 growth strategies to achieve net sales of 58.9 billion yen and consolidated operating profit of 5.6 billion yen in the fiscal year ended February 2028.

Policy1Growth of the Reuse Business

Continue to open new stores at a pace of at least 30 stores per year. Expand the number of new stores every fiscal year to grow the core reuse business.

Policy2 Investment in New Businesses

In addition to the reuse business, we are also developing reuse-related businesses such as B to B auctions, moving services, and real estate services. By strengthening these reuse-adjacent businesses and enhancing synergies with our core reuse operations, we will build a comprehensive reuse platform, establish a one-stop service framework, and expand our revenue opportunities.

Policy3Growth in overseas markets

We will open new stores to drive further business growth in both Thailand, where our operations are already profitable, and Taiwan, where we are working to improve profitability. While advancing our entry and business expansion in the U.S., we are also preparing to enter a fourth region.

Policy4Growth through M&A

We will continue to proactively pursue M&A, primarily in the reuse sector. Our focus will be on acquiring businesses that complement our regional presence or strengthen our specialized product categories.

Policy5Growth by investing in DX

Led by our in-house systems division and system development subsidiary, we will advance our DX strategy by focusing on improving customer usability and streamlining operations through the use of IT and AI.

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.