Earnings Presentation Materials for the First Quarter of the Fiscal Year Ending March 2027 | UP GARAGE GROUP Co.,Ltd. (7134) timely disclosure

Worth reading

66In focus

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Direction

Improvement

Direction inferred from the company’s description.

Scale

591

¥ million (year-on-year change in net sales)

Wording

Conditional

How definitive the wording is.

Contents of this document

Financial Results PresentationFirst quarter of the fiscal year ending March 202714 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales3,969 Millions of yen+17.5%

Operating profit263 Millions of yen+55.1%

Ordinary income274 Millions of yen+71.7%

Net income181 Millions of yen+91.2%

Gross Profit Margin41.6%

Operating profit margin6.6%

Selling, general and administrative expenses1,389 Millions of yen

Results for the three months of the current quarter

Net Sales

3,969 Millions of yen

Operating profit

263 Millions of yen

Ordinary income

274 Millions of yen

Net income for the current fiscal year

181 Millions of yen

Full-year earnings forecast

Net Sales

17,000 Millions of yen

Operating profit

1,400 Millions of yen

Ordinary income

1,420 Millions of yen

Net income for the current fiscal year

910 Millions of yen

ROE

16.7%

ROIC

15.0%

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales51.3% (first-half progress rate)

Operating profit64.6% (first-half progress rate)

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

A strong start toward achieving the full-year earnings targets

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Change in operating profit

Q1 FY2026 operating profit170

Company-operated stores200

FC54

Distribution and wholesale-9

Other31

Selling, general and administrative expenses-183

Q1 FY2027 operating profit263

Change in SG&A expenses

Personnel Expenses105

Rent25

Advertising spend-7

Freight expenses4

Depreciation and amortization10

Other45

Total selling, general and administrative expenses183

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

DemandDemand for reused products is expected to continue expanding

Store Openings7 company-operated stores and 10 franchise stores

Distribution and wholesaleRevenue from Tire Distribution Centers is expected to reach 105% of the previous fiscal year's level, and revenue from ネクスリンク is also expected to reach 105%

New initiatives

Listing installation fees on product detail pages of the e-commerce site
Strengthening recruitment of automotive enthusiasts through recruiting driving events
Enhancing tire and electrical systems training in new-employee training programs
Installing AEDs at all company-operated stores and providing lifesaving training for store managers and deputy store managers
Store tours held after the Annual General Meeting of Shareholders

Key KPIsA metric the company considers important as a management benchmark.

Year-on-year sales at existing company-operated stores108.5%
Year-on-year sales at existing franchise stores107.5%
Corporate purchases147.8%
In-store installation reservations148%
Gross profit margin at company-operated stores57.8%
Year on year against the same period last year57.7% in Q1 FY2026

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Average customer spend at company-operated stores

First quarter of the fiscal year ending March 2025¥12,250

First quarter of the fiscal year ending March 2026¥12,450

First quarter of the fiscal year ending March 2027¥13,510

Year-on-year change in average customer spend at company-operated stores108.5%

Segment results

Reuse business

Net Sales

2,491 Millions of yen

Year on year against the same period last year+20.4%

Distribution and wholesale business

Net Sales

1,478 Millions of yen

Year on year against the same period last year+13.4%

Medium-term management plan targets

ROE

Target fiscal yearFiscal year ending March 2029

Target value20.0%

Payout ratio

Target fiscal yearFiscal year ending March 2029

Target value40.0%

Financial targets

ROE

Actual results for the fiscal year ending March 202616.0%

Fiscal year ending March 2027: plan16.7%

Target for the fiscal year ending March 202920.0%

ROIC

Actual results for the fiscal year ending March 202614.1%

Fiscal year ending March 2027: plan15.0%

Market Size / Share

Approximately ¥72.1 billion (used automotive products)

ShareNiche market leader

Number of stores and locations

End of period196 locations (45 company-operated, 149 franchise, and 2 overseas, as of the end of March 2026)

Store openings during the period2 franchise stores and 4 Tire Distribution Centers

Full-year store opening plan7 company-operated stores, 10 franchise stores, 3 Cycles stores, and 1 USA store

Number of employees

Number of Employees41 new employees joining in April

Change during the period41 new graduates and 24 experienced hires (FY2025 actual)

Recruitment initiativesHeld 6 recruiting driving events, with 148 participants

Annual Dividend

Forecast for the fiscal year ending March 2027¥42.5 per share

Payout ratio

40.0% (FY2029 target)

Contents of this document
Item	Details
Document type	Financial Results Presentation
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	3,969 Millions of yen (YoY +17.5%)
Operating profit	263 Millions of yen (YoY +55.1%)
Ordinary income	274 Millions of yen (YoY +71.7%)
Net income	181 Millions of yen (YoY +91.2%)
Gross Profit Margin	41.6%
Operating profit margin	6.6%
Selling, general and administrative expenses	1,389 Millions of yen
Results for the three months of the current quarter	Net Sales 3,969 Millions of yen / Operating profit 263 Millions of yen / Ordinary income 274 Millions of yen / Net income for the current fiscal year 181 Millions of yen
Full-year earnings forecast	Net Sales 17,000 Millions of yen / Operating profit 1,400 Millions of yen / Ordinary income 1,420 Millions of yen / Net income for the current fiscal year 910 Millions of yen / ROE 16.7% / ROIC 15.0%
Progress against full-year forecast	Net Sales 51.3% (first-half progress rate) / Operating profit 64.6% (first-half progress rate)
Self-assessment against the plan	A strong start toward achieving the full-year earnings targets
Segment results	Reuse business Net Sales 2,491 Millions of yen / Year on year against the same period last year +20.4% / Distribution and wholesale business Net Sales 1,478 Millions of yen / Year on year against the same period last year +13.4%
Breakdown of Factors Affecting the Change	Change in operating profit Q1 FY2026 operating profit 170 / Company-operated stores 200 / FC 54 / Distribution and wholesale -9 / Other 31 / Selling, general and administrative expenses -183 / Q1 FY2027 operating profit 263 / Change in SG&A expenses Personnel Expenses 105 / Rent 25 / Advertising spend -7 / Freight expenses 4 / Depreciation and amortization 10 / Other 45 / Total selling, general and administrative expenses 183
Key KPIs	Indicator name Year-on-year sales at existing company-operated stores / Value 108.5% / Year on year against the same period last year Not disclosed, Indicator name Year-on-year sales at existing franchise stores / Value 107.5% / Year on year against the same period last year Not disclosed, Indicator name Corporate purchases / Value 147.8% / Year on year against the same period last year Not disclosed, Indicator name In-store installation reservations / Value 148% / Year on year against the same period last year Not disclosed, Indicator name Gross profit margin at company-operated stores / Value 57.8% / Year on year against the same period last year 57.7% in Q1 FY2026
Unit price and quantity metrics	Average customer spend at company-operated stores First quarter of the fiscal year ending March 2025 ¥12,250 / First quarter of the fiscal year ending March 2026 ¥12,450 / First quarter of the fiscal year ending March 2027 ¥13,510 / Year-on-year change in average customer spend at company-operated stores 108.5%
Number of stores and locations	End of period 196 locations (45 company-operated, 149 franchise, and 2 overseas, as of the end of March 2026) / Store openings during the period 2 franchise stores and 4 Tire Distribution Centers / Full-year store opening plan 7 company-operated stores, 10 franchise stores, 3 Cycles stores, and 1 USA store
Number of employees	Number of Employees 41 new employees joining in April / Change during the period 41 new graduates and 24 experienced hires (FY2025 actual) / Recruitment initiatives Held 6 recruiting driving events, with 148 participants
Assumptions Underlying the Business Outlook	Demand Demand for reused products is expected to continue expanding / Store Openings 7 company-operated stores and 10 franchise stores / Distribution and wholesale Revenue from Tire Distribution Centers is expected to reach 105% of the previous fiscal year's level, and revenue from ネクスリンク is also expected to reach 105%
Medium-term management plan targets	ROE Target fiscal year Fiscal year ending March 2029 / Target value 20.0% / Payout ratio Target fiscal year Fiscal year ending March 2029 / Target value 40.0%
Financial targets	ROE Actual results for the fiscal year ending March 2026 16.0% / Fiscal year ending March 2027: plan 16.7% / Target for the fiscal year ending March 2029 20.0% / ROIC Actual results for the fiscal year ending March 2026 14.1% / Fiscal year ending March 2027: plan 15.0%
Annual Dividend	Forecast for the fiscal year ending March 2027 ¥42.5 per share / Interim and Year-End Breakdown Not disclosed
Payout ratio	40.0% (FY2029 target)
Market Size / Share	Market Size Approximately ¥72.1 billion (used automotive products) / Share Niche market leader
New initiatives	Listing installation fees on product detail pages of the e-commerce site, Strengthening recruitment of automotive enthusiasts through recruiting driving events, Enhancing tire and electrical systems training in new-employee training programs, Installing AEDs at all company-operated stores and providing lifesaving training for store managers and deputy store managers, Store tours held after the Annual General Meeting of Shareholders

Items this document does not state (5)

Risk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Company-operated and franchise stores performed strongly, driven by growing demand for reused products, an increase in customer visits, and sales contributions from new stores opened in the previous fiscal year. Distribution and wholesale transactions also expanded, mainly with ネクスリンク. Operating profit increased due to higher revenue at company-operated stores and the impact of higher franchise royalty rates from the second half of the previous fiscal year.

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