The Japanese economy during the fiscal year ended December 31, 2025, showed signs of a gradual recovery, supported by improvements in employment and income conditions. However, the outlook remains unpredictable due to factors such as the impact of rising raw material prices from an unstable international situation and growing uncertainty regarding monetary policies.

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 addition, we are committed to realizing a more convenient customer fulfillment service. We are working to streamline indirect material procurement and deliver products quickly and reliably. We have expanded the scope of unattended delivery services, implemented a service for specifying delivery dates and times, and expanded the target areas for same-day shipping for orders placed by 5:00 PM on weekdays. During the fiscal year, we expanded the target areas to 42 prefectures.

In our product strategy, we are continuously expanding the number of products offered on our website to meet the diverse needs of our customers. Furthermore, the total number of our product lineup reached approximately 28.8 million items in total with 688 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, 2025.

In the Enterprise Business, both the number of customers and the amount of sales steadily increased. This growth was driven by sales initiatives aimed at acquiring new partner companies, as well as by penetrating existing customer bases to expand usage.

Consequently, we have successfully obtained 1,114 thousand newly registered accounts for the fiscal year ended December 31, 2025 and the number of registered accounts totaled 11,262 thousand as of December 31, 2025.

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 333,880 million yen (15.9% increase from the previous fiscal year), operating income of 46,192 million yen (24.6% increase from the previous fiscal year), ordinary income of 46,057 million yen (23.4% increase from the previous fiscal year), and net income attributable to owners of the parent of 32,434 million yen, a corresponding 23.1% increase.