USS (4732) investor relations material

Executive summary

• Achieved record-high net sales of ¥113.8 billion, up 9.5% year-over-year, and operating profit of ¥59.8 billion, up 10.4% year-over-year.

• Profit attributable to owners of parent rose 9.9% to ¥41.3 billion year-over-year.

• Comprehensive income reached ¥41,934 million, up 10.8% year-over-year.

• Auto auction segment drove growth with a 9.4% increase in vehicles consigned and contracted, maintaining a 67.0% contract completion rate.

• Dividend increased for the 27th consecutive year, with a payout of ¥54.7 per share and a total payout ratio of at least 100%.

Financial highlights

• Net sales: ¥113.8 billion (+9.5% YoY); Operating profit: ¥59.8 billion (+10.4% YoY); Ordinary profit: ¥60.6 billion (+10.4% YoY); EPS: ¥88.78.

• Gross profit increased to ¥71,451 million from ¥64,821 million year-over-year.

• Equity ratio: 76.7%.

• Free cash flow: ¥22.6 billion; capital expenditures: ¥11.0 billion.

• Cash flows from operating activities were ¥43,913 million, up from ¥38,157 million year-over-year.

Outlook and guidance

• FY2026 forecast: Net sales ¥119.8 billion (+5.2% YoY), operating profit ¥61.0 billion (+1.9% YoY), profit attributable to owners of parent ¥41.6 billion.

• Dividend forecast for FY2027 is ¥55.00 per share, with a payout ratio of 60.0%.

• Capital expenditures planned at ¥40.0 billion over FY2026–FY2027.

• ROE target raised to 20% or higher; dividend payout ratio target at least 60%.

• Market share goal of 50% in auto auction business.