INVESTOR RELATIONS

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

Review of the First Half of FY2027

Looking back on the first half of the fiscal year, what we sense most strongly is that reuse is no longer a special choice but is becoming a natural option rooted in everyday life. Amid continuing price increases, a growing number of customers want to choose good items at prices they find reasonable and to pass on items that can still be used to the next person. Accordingly, we recognize that whether customers feel they have "found something good" at our stores and on our e-commerce sites matters more than ever.

Under these circumstances, net sales for the first half of the fiscal year were 25.8 billion yen (up 15.3% year on year), and consolidated operating profit was 2.33 billion yen (up 21.5% year on year).

The drivers of this strong performance were "growth of existing stores" and "continuous new store openings."

The growth of existing stores is underpinned by customers who use our services repeatedly. Net sales at existing non-consolidated stores increased 5.2% year on year, achieving year-on-year growth for 60 consecutive months (a full five years) from September 2021 to August 2026. In addition to deepening our connections with customers through our official app, the number of areas where we have multiple stores close to one another has increased as we have continued to open new stores, expanding opportunities for customers to enjoy visiting many of our stores.

Our business begins with customers entrusting their items to us. In addition to items brought into our stores, the use of home-delivery purchases, in which customers send us items from their homes, and home-visit purchases, in which our staff visit customers' homes, continued to increase significantly. As a result, we have secured ample merchandise for the new stores opening in the second half and for the coming seasons.

Furthermore, in the first half, we opened as many as 19 new stores on a consolidated basis, bringing the total number of Group stores to 337 (including FC stores) as of the end of August 2026. Against our annual target of 30–35 stores, 37 store openings, including those planned for the second half, have already been finalized. In June, we launched Treasure Factory Anime Lab, a new business format specializing in anime and character goods, and we opened our first stores in Saga Prefecture in August and in Gifu Prefecture in September. Overseas, we continue to steadily expand our store network, including the opening of our seventh store in Thailand in October.

Looking Ahead to the Second Half

Based on the strong results in the first quarter, we revised our full-year performance forecasts upward in July. The revised full-year forecasts are net sales of 54.9 billion yen and consolidated operating profit of 5.33 billion yen. In the second half, the effect of the change in the purchase coupon program, which has contributed to boosting profit since the previous fiscal year, will have run its course, and results will be compared with the same period of the previous year under the same conditions. In addition, we plan to make investments for future growth, including the relocation of our logistics base, the opening of new bases for home-visit purchases, and continued store openings. While steadily achieving the current forecasts, we aim to realize the results of these upfront investments at an early stage.

This fiscal year, we have set "improving both 'Early Action' and 'High Speed'" as our company-wide goal. Prompt decision-making and agile execution are required not only in store operations but also in the way our headquarters conducts its work. As part of this effort, we have begun an initiative that uses AI to streamline the input and search work involved in appraisals. We intend to devote the time this creates to further enhancing our merchandise and sales floors and improving our customer service. On that basis, we aim to achieve record highs in net sales, operating profit, and ordinary profit this fiscal year as well.

Regarding overseas operations, we are preparing to open our first store in the United States during this fiscal year. Starting with the first store, we will pursue early expansion and build a foundation for business expansion and profitability in the United States, while simultaneously conducting research and selection of new countries and regions for expansion.

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 continue to open new stores, 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.