The Japanese economy during the fiscal year ended December 31, 2024, generally continued to be unpredictable with concerns about the impact of the yen’s continued depreciation and the economy due to the prolonged situation involving Russia and Ukraine and tension in the Middle East and the economic slowdown in China and Europe in addition to rising raw material prices, although there have been indications of a gradual recovery driven by the normalization of social and economic activities and improvements in employment and income conditions.

In this economic environment, we have continually concentrated on acquiring new customers actively mainly through internet advertisements (paid listings) and internet search engine optimization (SEO), which can improve our website’s position on the search engines. We also conducted promotion activities including using e-mail and mailing flyers with optimized product listings for each customer, daily special prices, and broadcasted TV commercials to enhance customers' awareness much further.

In order to achieve a more convenient customer fulfillment service, we expanded our drop-off delivery service, started offering delivery date and time designation services, and extended the order cut-off time for the same day shipping in-stock items in the South Kanto area and the Kansai area from 3:00 p.m. to 5:00 p.m.

Furthermore, the total number of our product lineup reached approximately 24 million items in total with 626 thousand items in stock available for the same day shipment to meet the increase in demand corresponding to the expansion of our customer base as of the end of the fiscal year ended December 31, 2024.

In relation to the sales of MRO products to large corporate customers through integrated purchase systems, both the number of customers and the amount of sales steadily increased.
Consequently, we have successfully obtained 1,040.7 thousand newly registered accounts for the fiscal year ended December 31, 2024 and the number of registered accounts totaled 10,147.2 thousand as of December 31, 2024.

In addition, our subsidiaries such as NAVIMRO, which is our Korean subsidiary, also actively engaged in acquiring new customers mainly through paid listings and focused on increasing both their product lineup and the number of products in stock in order to expand their customer base.

All of our efforts mentioned above resulted in net sales of 288,119 million yen (13.3% increase from the previous fiscal year), operating income of 37,066 million yen (18.4% increase from the previous fiscal year), ordinary income of 37,320 million yen (18.3% increase from the previous fiscal year), and net income attributable to owners of the parent of 26,338 million yen, a corresponding 20.7% increase.