INVESTOR RELATIONS

To our shareholders and those considering investing in Treasure Factory
We sincerely appreciate your investment or interest in Treasure Factory.

In the first half of the fiscal year ended February 2025, we achieved record highs in net sales, operating profit, and ordinary profit due to the increase in prices and associated demand for reuse. In the first half of the fiscal year ended February 2025, net sales were 19.6 billion yen (up 23.7% year on year) and consolidated operating profit was 1.74 billion yen (up 20.5% year on year), achieving record-high profits.

From September 2021 to August 2024, non-consolidated existing store sales exceeded 100% YoY for 36 consecutive months.
Factors contributing to the annual growth in operating results include strong purchases and growth in the number and unit price of sales.
In terms of purchases, in addition to in-store purchases at existing stores, the factors behind the strong performance were the strengthening of personnel for home-delivery purchases and home-visit purchases, and the promotion of growth in non-store purchase channels through the relocation of centers to other locations. As a result, we are making steady progress in securing inventory for new store openings.
Efforts to increase app membership have also been successful, and the number of sales has been increasing. Inbound sales increased significantly due to the impact of foreign exchange rates. Unit price of sales also rose significantly, rising 104.5% YoY.

In the fiscal year under review, we are focusing on "cash flow" and are working to improve inventory turnover. We are working to improve our inventory turns by shortening the time between purchasing and placing items in stores, aggressively listing items on EC, and selling products in a more appropriate time frame. In addition to continued growth in sales and purchases, efforts to improve cash flow are steadily beginning to show results. We will continue to pursue similar initiatives to maximize cash flow.

There is a strong preference for a sustainable consumption style, and the tailwind for reuse is expected to continue. On the other hand, we will respond flexibly while closely monitoring exchange rate fluctuations and changes in domestic price trends, and promote new store openings and the growth of existing stores. In the current fiscal year, we will aim to achieve record highs for both net sales, operating profit, and ordinary profit.

Store openings in the first half of the fiscal year totaled 289 stores in the Group as of the end of October 2024, comprising 11 new stores and 1 relocation store. With the expansion of our business and geographical reach and the diversification of our business formats, which has expanded to 12 business formats, we have improved the confidence of our store property owners, and we are now able to acquire even more favorable locations than ever before. In the latest new store openings, announcements to member customers through the app will also lead to attracting customers to new stores, and many customers may come up before opening.
Some stores opened in the current fiscal year are large in size, and we expect to contribute to our performance more than the number of store openings. In the future, we will continue to open stores in areas already opened, such as Tokyo and its three neighbouring prefectures, the northern Kanto region, the Kansai region, Aichi, and Fukuoka, and will continue to open stores in new regions.

Over the medium to long term, we plan to achieve sales of 50.3 billion yen and consolidated ordinary profit of 4.6 billion yen in the fiscal year ending February 2027. To achieve this goal, we have established 5 growth strategies.

Policy1Growth of the Reuse Business

Continue to open more than 30 new stores per year while expanding the number of new stores every fiscal year to promote growth in the core reuse business

Policy2Investment in New Businesses

In addition to the reuse business, we are also developing reuse-related businesses such as BtoB auctions, moving services, and real estate services. Strengthen reuse-related businesses, build a reuse platform, create a system that can provide a variety of one-stop services, and increase profit-making opportunities

Policy3Growth in overseas markets

Beginning with Thailand, which has already established a profit structure with a non-consolidated surplus, we will establish an earnings model in Taiwan as well, and aim for growth with a view to expanding into other regions.

Policy4Growth through M&A

Continue to target the reuse business primarily, and aggressively pursue M&A of business formats that can complement regional complements or specialized categories that we want to strengthen

Policy5Growth by investing in DX

Promote DX utilization by focusing on utilization at points of contact with customers and improvement of usability of customers with applications as the starting point

Our group will increase the number of points of contact with customers and services that we can provide through the development of several business formats and businesses, maximize customer value, and achieve sustainable growth in the future.
We appreciate the continued expectations and support of our shareholders and all of you considering investing in us.