8041.T

Company Overview

• OUG Holdings was founded in 1947 as a fishery wholesaler at Osaka Central Wholesale Market, and transitioned to a pure holding company structure in 2006. As of December 2025, the group operates 14 domestic consolidated subsidiaries and 1 overseas local subsidiary, with a core focus on seafood distribution.
• Core business segments include fisheries goods receiving, off-market fisheries wholesale, aquaculture, plus supporting businesses including food processing and logistics.

External Environment

• The Japanese economy saw a gradual recovery with continued improvement in production and employment, but consumers continue to prioritize saving as wage growth fails to keep pace with consumer price increases.
• For the seafood distribution industry, demand from food service, accommodation and inbound tourism has recovered, but domestic at-home demand has stagnated due to high commodity prices.

Mid-term Management Plan 2024 Progress (Year 2)

• The plan is overall progressing smoothly. Full-year results are expected to hit 354.0 billion yen in revenue (16.0 billion yen above the original plan target, 3.9 billion yen higher than the prior fiscal year), 5.4 billion yen in operating profit (1.3 billion yen above the original plan target, 0.3 billion yen higher than the prior fiscal year), and 5.8 billion yen in ordinary profit (1.7 billion yen above the original plan target).
• The group is executing 5 core strategic priorities: strengthening fresh fish business, enhancing product competitiveness via group collaboration, deepening and expanding the Kanto region market, expanding overseas business, and advancing sustainable business operations.

Key Completed Operational Initiatives

• Fresh fish business strengthening: Food processing subsidiary Daiwa Summit started gas replacement packaging business in June 2025, which is expected to reduce food waste and cut labor requirements.
• Product competitiveness enhancement: In March 2025, the group partnered with Uoichi Co., Ltd. to acquire a frozen tuna wholesale processing company, which began operations as Tuna Craft Works Inc.
• Kanto market expansion: Shokuryu Co., Ltd. started construction of the new Yokohama Logistics Center on pre-acquired land in January 2026, which will cover the western Kanto region as part of the group's sales base restructuring.
• Overseas business expansion: Shokuryu completed the corporate registration of its converted Vietnam office (previously a representative office) as a local subsidiary on February 2, 2026, to strengthen overseas operations.
• Financial strategy and portfolio optimization: Shokuryu absorbed its subsidiary, Kitakyushu-based wholesale firm Taigen Co., Ltd., in June 2025, and approved the sale of its old Yokohama sales office in November 2025. Between August 2025 and February 2026, the group reduced policy-held shares: 2 entire holdings were fully sold, and partial sales were completed for 4 additional holdings.
• Human resources strategy: The group has expanded successor planning-linked training programs and is implementing personnel system reform.
• IR and dividend strategy: The group's core dividend policy of targeting a 1.6% dividend on equity (DOE) has been applied to dividends starting from the March 31, 2025 record date. The group continues to work on expanding shareholder benefits and providing clear, accessible earnings explanations.

• Full-year 2026 March fiscal year consolidated guidance has been upwardly revised: consolidated revenue from 351.0 billion yen to 354.0 billion yen, operating profit from 4.6 billion yen to 5.4 billion yen, and ordinary profit from 4.9 billion yen to 5.8 billion yen.
• The fourth quarter is expected to see lower revenue of approximately 78.1 billion yen (following the peak third quarter demand period), with projected operating profit of around 0.1 billion yen and ordinary profit of around 0.1 billion yen.
• The full-year ending dividend per share forecast has been upwardly revised from 102 yen to 109 yen, while the group maintains its core policy of stable dividends targeting a 1.6% DOE, after balancing the need to strengthen long-term management foundation, secure retained earnings for growth investment, and return capital to shareholders.
• The aquaculture business expects yellowtail prices to trend weaker going forward, as high prices have started to soften end consumer demand.

1. Fisheries Goods Receiving Business: 5.9 billion yen increase in revenue year-over-year, 0.8 billion yen decrease in operating profit year-over-year. Rising logistics and material costs pressured profitability, even after implementing strict inventory management and cost control measures. 2. Off-market Fisheries Wholesale Business: 2.7 billion yen increase in revenue year-over-year, 0.1 billion yen decrease in operating profit year-over-year. Rising personnel costs offset efforts to maintain proper inventory management and appropriate selling price setting. 3. Aquaculture Business: 0.1 billion yen increase in revenue year-over-year, 1.9 billion yen increase in operating profit year-over-year, with total segment operating profit reaching 0.9 billion yen. High market prices for cultured yellowtail, the segment's core product, drove strong profit growth despite persistently high feed costs due to yen depreciation. The overall company reported 275.8 billion yen in total third quarter consolidated revenue (3.1% increase year-over-year), 5.2 billion yen in consolidated operating profit (23.0% increase year-over-year), and 5.7 billion yen in consolidated ordinary profit (17.9% increase year-over-year).

• Persistent cost pressures: Logistics costs, material costs, personnel costs, and feed prices for aquaculture remain elevated, with yen depreciation continuing to put upward pressure on feed and imported raw material costs.
• Demand headwinds: Stagnant domestic at-home seafood demand due to high commodity prices and consumer saving behavior creates ongoing challenges for revenue growth in some segments.
• Aquaculture industry uncertainties: High water temperatures have led to poor growth outcomes for yellowtail, resulting in smaller average size at harvest and limited available supply for sale. While current high prices have supported profitability, production costs remain elevated, and high prices have started to cause softening end demand. Future yellowtail price movements and exchange rate trends that impact feed costs create significant uncertainty for earnings.
• Segment-specific challenges: The processed food division within the fisheries goods receiving segment continues to face persistent long-term raw material shortages, and high prices for key products including scallops and tuna make it difficult to set prices that align with consumer demand, creating ongoing pressure on profit margins.

Q: Where can I find the company's original statement regarding initiatives for management focused on cost of capital and stock price?

A: The original statement is available in the February 8, 2024 disclosure: https://www.oug.co.jp/ja/ir/news/auto_20240206527201/pdfFile.pdf

Q: Where can I find the latest update on initiatives for management focused on cost of capital and stock price?

A: The latest update is available in the February 12, 2026 disclosure: https://www.oug.co.jp/ja/ir/news/auto_20260210554914/pdfFile.pdf

Q: Where can I find information about the OUG Group Medium-term Management Plan 2024?

A: The plan announcement is available in the May 10, 2024 disclosure: https://www.oug.co.jp/ja/ir/news/auto_20240509586806/pdfFile.pdf

Q: Where can I find the announcement of the full-year earnings and dividend forecast revisions?

A: The revision announcement is available in the February 12, 2026 disclosure: https://www.oug.co.jp/ja/ir/news/auto_20260210554802/pdfFile.pdf