USS (4732) investor relations material

Executive summary

• Net sales for 1H FY2025 reached ¥53.97 billion, up 7.0% year-over-year, with operating profit at ¥28.70 billion, up 9.4% year-over-year, and profit attributable to owners of parent up 10.0% to ¥19.95 billion.

• Record-high net sales, operating profit, ordinary profit, and profit attributable to owners of parent were achieved in the first half.

• Comprehensive income increased 10.4% year-over-year to ¥20,106 million.

• The FY2025 plan was revised upward, reflecting stronger-than-expected Q2 results, with operating profit forecast raised from ¥56.5 billion to ¥57.4 billion.

• Dividend forecast for FY2025 increased to ¥51.4, marking the 26th consecutive year of dividend increases.

Financial highlights

• Gross profit margin improved to 63.4% in 1H FY2025 from 62.2% in 1H FY2024.

• Gross profit increased to ¥34,197 million from ¥31,392 million year-over-year.

• Auto auction segment net sales rose 10.8% year-over-year to ¥43.70 billion, with operating profit up 10.9% to ¥28.41 billion.

• Used vehicle purchasing and selling segment net sales declined 6.5% year-over-year to ¥5.95 billion, with operating profit down 55.9% to ¥122 million.

• Recycling segment net sales fell 11.5% year-over-year to ¥3.65 billion, with operating profit down 84.3% to ¥39 million.

Outlook and guidance

• FY2025 net sales forecast maintained at ¥111.8 billion, with operating profit forecast raised to ¥57.4 billion, up 1.6% from the previous plan.

• Vehicles consigned at auctions for FY2025 revised to 3.43 million (1.0% above previous plan), and vehicles contracted to 2.24 million (2.0% above previous plan).

• ROE target raised to 20% or higher, with a dividend payout ratio goal of at least 60% and total payout ratio of at least 100% by FY2027.