9268.T

• Overall Market and Segment Recovery

  • The New Zealand used vehicle market has begun to see clear recovery signals, with the economy emerging from a bottom, market inventory hitting a floor that has tightened supply and demand, and regulatory changes supporting demand improvement, bringing an end to the prolonged downturn.
  • Used vehicle exports to non-New Zealand markets (primarily Europe) continue to see strong, rapid growth, expanding both revenue share and absolute volume.
  • The inspection business is successfully expanding into new international markets, with non-New Zealand volume now making up a majority of total inspection volume.

• Strategic Developments

  • Progress continues on M&A roll-up strategy, with the recent acquisition of Keystar in Australia contributing to increased sales volume.
  • Starting from this quarter, the company has disclosed full-year projections based on International Financial Reporting Standards (IFRS), which it will voluntarily adopt starting from the end of this fiscal term.
  • The company is focusing on strengthening its value chain-based operations, refining individual business lines, and building a flexible portfolio structure that can adapt to changing market conditions.
  • The company views ongoing profitability challenges in the Australian new vehicle market as an opportunity to drive structural improvement across its business segments.

• Progress against Full-Year Plan

  • Year-to-date progress against the full-year plan is 77.1% for revenue and 55.1% for operating income. While revenue and gross profit progress exceeded 75%, after accounting for the positive impact of weaker yen, actual performance is behind the original plan. The company remains focused on recouping this delayed progress through recovery in New Zealand exports.

• The company is disclosing its first IFRS-based full-year FY2026 March fiscal year guidance: projected full-year revenue of 288 billion yen, projected operating income of 10.2 billion yen, and projected net income attributable to owners of the parent company of 3.1 billion yen.
• The existing full-year performance forecast is maintained unchanged, as the outcome of the full-year recovery is still too uncertain to revise at this point.
• Recovery in New Zealand used vehicle exports is identified as the key factor that will allow the company to catch up to its full-year profit target, while continued growth in non-New Zealand exports will support overall full-year growth.

Overall consolidated revenue for the third quarter was 82.6 billion yen, an increase of 17.6% compared to the previous quarter. Operating income was 1.784 billion yen, an increase of 22% quarter-over-quarter. Ordinary income was 0.655 billion yen, approximately 2.9 times the ordinary income of 0.226 billion yen from the previous quarter. 1. Used vehicle export to New Zealand: Optimus Group's export volume was 7,586 units, an increase of 17.2% quarter-over-quarter, showing a recovery trend, while the overall New Zealand market total used vehicle import volume was 18,813 units, an increase of 2.2% quarter-over-quarter, remaining nearly flat. Optimus maintains a roughly 40% market share in this segment. 2. Used vehicle export to regions other than New Zealand (primarily Europe): Revenue from these regions accounts for 44% of total recent export revenue, with export volume growing 21.1% quarter-over-quarter, continuing high growth. 3. Inspection business: In the third quarter, inspection volume for non-New Zealand regions reached more than 22,000 units, 2.1 times higher year-over-year, accounting for 66.8% of total company inspection volume. Business expansion is progressing in multiple markets including Sri Lanka, which resumed used vehicle imports in February 2025, leveraging expertise developed in the New Zealand business. 4. Australia new vehicle sales (Autopact segment): Overall Australian market total new vehicle sales were 295,369 units, a decrease of 3.4% quarter-over-quarter, showing mild softness. Autopact's new vehicle sales volume was 9,656 units, an increase of 13.4% quarter-over-quarter and 27.2% year-over-year, driven by the new consolidation effect of acquired Keystar and expanded corporate fleet sales. 5. Australia Autocare segment: Both transportation and storage volume decreased quarter-over-quarter, as domestic distribution inventory improved, reducing demand for these services.

• Intensified competition in the Australian new vehicle market driven by increased entry of Chinese brands has led to higher costs and lower profitability from thin-margin transactions, creating ongoing profitability challenges for the Autopact segment.
• The Autocare segment in Australia has seen reduced transportation and storage volume due to improved domestic distribution inventory, and the business is highly dependent on the trends of a fixed set of counterparties, creating performance volatility risk.
• Actual year-to-date performance is behind the original full-year plan after adjusting for the favorable yen depreciation impact, creating uncertainty around meeting full-year targets.
• Increased interest expenses from inventory expansion at Autopact have created downward pressure on ordinary profit.

Q: What are the key highlights of the third quarter earnings?

A: Revenue was 82.6 billion yen, up 17.6% quarter-over-quarter. Used vehicle export volume to New Zealand rose 17.2% quarter-over-quarter, showing signs of recovery; exports to other regions such as Europe grew 21.1% quarter-over-quarter, continuing high growth; and Australian new vehicle sales volume rose 13.4% quarter-over-quarter, showing a recovery trend. Despite upward pressure on costs from increased Australian corporate fleet sales, higher payroll from the new consolidation of acquired Keystar, and higher selling, general and administrative costs from yen depreciation, operating income rose 22% quarter-over-quarter to 1.784 billion yen driven by M&A roll-up progress and improving macro market conditions. While interest expenses from Autopact's inventory expansion pushed down profit, foreign exchange gains contributed to a rise in ordinary income to 0.655 billion yen, approximately 2.9 times the previous quarter's 0.226 billion yen.

Q: What is the progress against the full-year plan so far?

A: Year-to-date progress against the full-year plan is 77.1% for revenue and 55.1% for operating income. While revenue and gross profit progress exceeded 75%, after accounting for the impact of yen depreciation, actual performance is behind plan. The recovery of used vehicle exports to New Zealand is the key to catching up on profit targets, and continued growth of used vehicle exports outside New Zealand, centered on Europe, remains a key driver of continued overall growth. Starting this quarter, the company has disclosed a full-year outlook under IFRS, which will be voluntarily adopted starting at the end of this term, projecting full-year FY2026 revenue of 288 billion yen, operating income of 10.2 billion yen, and net income attributable to parent company owners of 3.1 billion yen.

Q: What is the macro market situation and Optimus's position in New Zealand?

A: Overall New Zealand market total used vehicle import volume was 18,813 units, up 2.2% quarter-over-quarter, remaining nearly flat. The company's export volume was 7,586 units, up 17.2% quarter-over-quarter, on a recovery trend. This recovery is driven by the New Zealand economy emerging from the bottom, market inventory hitting a floor that has tightened supply and demand, and market participants beginning to prepare for regulatory revisions that took effect in January 2026. The company continues to maintain a roughly 40% market share and is preparing for full-scale market recovery.

Q: What is the macro market situation and Optimus's position in Australia?

A: Overall Australian market total new vehicle sales were 295,369 units, down 3.4% quarter-over-quarter, somewhat soft. Autopact's new vehicle sales volume was 9,656 units, up 13.4% quarter-over-quarter and 27.2% year-over-year. This growth is driven by the new consolidation effect of acquired Keystar and expansion of corporate fleet sales that drove higher volume. However, increased competition from growing entry of Chinese brands has pushed up costs and reduced profitability from thin-margin transactions, and overcoming this profitability decline is a key challenge. For Autocare, both transportation and storage volume decreased quarter-over-quarter. Since the business is easily affected by the trends of fixed counterparties, the company will work to expand diversified transactions going forward.

Q: Can you share more details on the current recovery situation in New Zealand?

A: The gradual recovery of the New Zealand economy and depleted distribution inventory are both supporting recovery. In addition, in January 2026, part of New Zealand's Clean Car Standard automotive environmental regulation was revised. The penalties that were sharply increased one year prior under this regulation were lowered, as they had become a barrier to automotive demand and carried the risk of worsening natural environmental outcomes. This substantive regulatory relaxation has led to a major improvement in the automotive market environment, and demand is gradually recovering against the backdrop of this institutional change.

Q: Can you share more details on the performance of markets outside New Zealand, which you noted remains strong?

A: In recent years, the company has focused on expanding used vehicle exports to regions outside New Zealand, especially Europe. In total recent export revenue, the share of revenue from regions outside New Zealand is 44%, and this share continues to expand along with absolute revenue growth. For the inspection business, there is strong demand from other countries for the expertise the company developed in the New Zealand business, and business expansion is progressing in multiple non-New Zealand regions including Sri Lanka, which resumed used vehicle imports in February 2025. In the third quarter, inspection volume for non-New Zealand regions grew to more than 22,000 units, 2.1 times higher year-over-year, and the non-New Zealand share of total inspection volume reached 66.8%.