Supermarket-Style Business Expansion Centered on Large Distribution Warehouses

「株式会社ヤマサ (Kochi, Kochi Prefecture) Office Warehouse Machinery and equipment 1,857 1,146 Internal funds and borrowings August 2024 June 2026 Our Oita Head Office (Oita, Oita Prefecture) Office Warehouse Machinery and equipment 4,310 2 Internal funds and borrowings August 2026 October 2027」

「福山営業所の稼働開始（2025年7月） ☞中国・四国エリアのマザーヤードとして多品種の在庫を保有」

「We will actively develop our network of facilities with a medium- to long-term perspective, including the new construction and relocation of the Fukuyama Sales Office and the full-scale operation of the Shizuoka Center, while also installing new and additional processing equipment at existing facilities.」

「The main investments were ¥4,423 million for warehouse construction at the Fukuyama Sales Office, ¥1,045 million for warehouse construction at the Saga Sales Office, ¥1,005 million for warehouse construction at the Yamaguchi Sales Office, and ¥5,418 million for warehouse construction and processing equipment at the Shizuoka Center of the Tokyo Branch.」

「We will actively develop our network of facilities with a medium- to long-term perspective, including the new construction and relocation of the Saga and Yamaguchi sales offices and the opening of the Shizuoka Center, while also installing new and additional processing equipment at existing facilities.」

「Total assets increased by ¥17,011 million from the end of the previous consolidated fiscal year to ¥205.7 billion. The main factors were increases of ¥6,914 million in electronically recorded monetary claims-operating, ¥3,443 million in land and ¥12,492 million in other property, plant and equipment, despite decreases of ¥2,028 million in notes and accounts receivable-trade and contract assets and ¥4,066 million in merchandise and finished goods. The increase in land was mainly due to purchases of land for the Fukuyama, Saga and Hokuriku sales offices. The increase in other property, plant and equipment was mainly due to an increase in construction in progress related to warehouse construction at the Shizuoka Center.」

「Cash used in investing activities was ¥9,039 million, compared with ¥2,134 million used in the same period of the previous year. This mainly reflected ¥7,733 million in payments for the acquisition of property, plant and equipment and ¥1,497 million in payments for the acquisition of shares in subsidiaries resulting in changes to the scope of consolidation.」

「The company judged that establishing a coil center between the two coil centers operated by the Group, Nishi-Nihon Steel Center Co., Ltd. (Fukuoka Prefecture) and Sankyo Noritake Steel Co., Ltd. (Osaka Prefecture), would improve customer service in western Japan and, consequently, enhance the Group's corporate value.」

「The company judged that establishing a logistics hub in Kochi Prefecture would improve customer service, produce a significant effect on the Group's basic strategies of expanding sales areas and increasing market share, and enhance corporate value. Date of acquisition of shares for cash consideration 24 November 2022 Voting rights ratio after acquisition 82.3%」

「Amid rapidly changing business conditions, our Group invested ¥4,467 million in order to further develop a company with a strong presence based on its basic strategies of expanding sales areas and increasing market share. The main investments were ¥1,938 million for constructing an office and warehouse and installing processing equipment at the Kumamoto Branch, and ¥738 million for constructing a warehouse and installing processing equipment at the Fukuoka Branch.」

「Amid rapidly changing business conditions, our Group invested ¥4,299 million in order to further develop a company with a strong presence based on its basic strategies of expanding sales areas and increasing market share. The main investments were ¥1,668 million for acquiring land and constructing an office and warehouse for the Minami-Fukuoka Sales Office of the Fukuoka Branch, ¥406 million for acquiring land for the Mie Sales Office of the Osaka Branch, ¥178 million for processing equipment at the Sakai Steel Center of the Osaka Branch, and ¥109 million for acquiring land for an extension to the warehouse at the Kokura Branch.」

「Of the approximately ¥6 billion in net proceeds from the issuance of the convertible bonds with stock acquisition rights, approximately ¥5 billion is expected to be used by the end of March 2021 to fund the construction of warehouses equipped with processing facilities in new areas, including the Kurume and Mie Sales Offices, and approximately ¥1 billion by 28 February 2020 to fund the acquisition of treasury shares.」

「We will continue constructing warehouses in suitable locations to secure stable profits by reducing logistics costs and improving our inventory-holding capacity.」

「To establish a supermarket-style business with a broad product range supported by large logistics warehouses, we will work to strengthen relationships with suppliers and our financial position so that we can flexibly raise the funds needed for capital investment and inventory holdings. In addition, we will seek to improve profitability by expanding our in-house processing facilities within large logistics warehouses to increase sales of high-value-added products, while reducing logistics costs by, among other measures, owning our own wharves.」

「To establish a supermarket-style business with a broad product range supported by large logistics warehouses, we will work to strengthen relationships with suppliers and our financial position so that we can flexibly raise the funds needed for capital investment and inventory holdings.」