INVESTOR RELATIONS

To Our Shareholders and Those Considering Investing in Treasure Factory
We sincerely appreciate your investment or interest in Treasure Factory.

Review of FY2025

In the fiscal year ended February 2025, we achieved record highs in net sales, operating income, and ordinary income, mainly due to growing demand for reuse associated with rising prices and an increase in inbound customers. Net sales were 42.2 billion yen, an increase of 22.5% year on year, and consolidated operating income was 4.03 billion yen, an increase of 20.5%.

Non-consolidated comparable store sales increased 7.9% year-on-year, marking the 42nd consecutive month of year-on-year growth (a period of 3.5 years). 2 factors behind the growth in business performance are the strong purchasing performance and the growth in unit sales prices and the number of sales.
As part of our efforts to increase the number of items purchased, we expanded and relocated our in-home purchasing service centers in the first half of the fiscal year. In addition, we strengthened our staff for mail-in purchasing service and in-home purchasing service throughout the year. Promoting the growth of non-store purchasing channels led to boosting our procurement success. This has enabled us to secure inventory for new store openings, which has also contributed to the smooth start-up of new stores.
Unit sales prices saw particularly strong growth. Impact of foreign exchange rates led to an increase in inbound sales, and unit sales grew significantly by 4.1% YoY. Sales volume also showed steady growth, thanks to the success of initiatives to increase app members.

In the fiscal year ended February 2025, we focused on cash flow and implemented measures to improve inventory turnover. In addition to shortening the time-from procurement to placement in stores, we also aggressively listed items on EC. By accelerating the sales cycle, operating cash flow improved steadily to 2.81 billion yen (up 181.9% year on year) and also led to an improvement in operational efficiency. We will continue to pursue similar initiatives with the aim of maximizing cash flow.

In the fiscal year ended February 2025, 24 new stores were opened and 2 were relocated. Although we fell short of our target of 30 stores, the opening of several large-scale stores is expected to contribute positively to this fiscal year's results. This fiscal year, too, we have steadily opened new stores in March and April, bringing the total to 301 stores (including FC stores) as of the end of April 2025. The start-up of new stores is generally strong, and app-based announcements help attract customers, and often resulting in queues forming before the stores open.
With the expansion of the scale and geographical reach of our business, and the diversification into 12 different business formats, we feel we have gained greater trust from store property owners, and we have been able to acquire more favorable locations than ever before. Going forward, we will continue to strive to open more stores in favorable locations.

Efforts for the fiscal year ending February 2026

The orientation of sustainable consumption styles continues to be strong, and the tailwind for the reuse industry is expected to continue. At the same time, we will respond flexibly to changes by closely monitoring such factors as exchange rate fluctuations and changes in domestic consumption demand.
In the current fiscal year, we will promote initiatives with the goal of "valuing the customer's perspective." We will return to the starting point once more and aim to further improve customer satisfaction and service levels.
We are targeting 30-35 new store openings on a consolidated basis in the current fiscal year. While expanding into areas such as Okayama Prefecture and the Tohoku region for the first time, we will also continue opening stores in established areas like the Greater Tokyo area (Tokyo and the three neighboring prefectures), the northern Kanto region, the Kansai region, Aichi, and Fukuoka.
On April 16, we announced the launch of our new business format, Trefac Instruments. As we have accumulated knowledge and know-how in musical instruments to date, we have decided to launch a new business format in order to deliver the enjoyment of music to as many people as possible, and also to meet their diverse needs.
While it is an ambitious goal to surpass the results of the previous fiscal year, which showed favorable results, we will promote the growth of existing stores and the opening of new stores, aiming for further business growth so that we can achieve record-high sales, operating income, and ordinary income.

Medium-to Long-Term Growth Strategies

Our Group has 5 growth strategies to achieve net sales of 58.9 billion yen and consolidated ordinary income of 5.6 billion yen in the fiscal year ending 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-related businesses and increasing synergies with the reuse business, we will build a platform for reuse, establish a one-stop service provision system, and increase opportunities for earning revenue.

Policy3Growth in overseas markets

Starting with Thailand, which has already established a profitable operation, and Taiwan, where profitability is improving, the company is preparing to expand into other regions.

Policy4Growth through M&A

Continue to target the reuse business mainly, and aggressively execute M&A of business formats that can fill regional gaps or specialized categories that we want to strengthen.

Policy5Growth by investing in DX

Focus on improving customer usability and business efficiency using IT and AI and advance DX, centered around our in-house system divisions and system development group companies

Our Group will maximize customer value and achieve sustainable growth in the future by increasing the number of points of contact with customers and services provided through the development of several business formats and businesses.
We appreciate the continued expectations and support of our shareholders and all of you considering investing in us.