USS Co.,Ltd.

Business Details

Operates Auto Auctions across multiple venues nationwide, with membership open to used vehicle dealers. Also offers auction connection services via the dedicated terminal "USS JAPAN" and the internet-based "CIS," used vehicle information services, transport brokerage for listed and purchased vehicles, financial services for members, and bike auctions (Japan Bike Auction). This is the flagship business, accounting for approximately 79% of Group revenue, with a highly profitable base boasting an operating margin exceeding 65%.

Recent Overview

Vehicles listed and contracted both increased by approximately 9%, and the bidding fee revision also contributed to higher revenue and profit.

In FY2026 (ending March 2026), the Auto Auction segment expanded steadily, with vehicles listed at 3,504,437 (up 9.4% year on year) and vehicles contracted at 2,347,566 (up 9.4% year on year). The contract rate held at 67.0%, roughly in line with the prior period. The revision of USS JAPAN's bidding fee (from ¥14,232 to ¥14,855 per vehicle, up 4.4% year on year) increased auction fee income, resulting in external customer revenue of ¥89,702 million (up 9.6% year on year) and operating profit of ¥58,584 million (up 10.0% year on year). The company continued active capital investment, including the rebuilding of major venues and the addition of multi-story parking structures, with the increase in tangible and intangible fixed assets reaching ¥10,743 million (up 177.5% year on year).

Key Products

Growth Drivers

• Increase in vehicles listed and contracted (expanding market share amid an overall market listing volume of 8,013 thousand vehicles, up 5.1% year on year)
• Increase in auction fee income due to the revision of USS JAPAN's bidding fee (up 4.4% year on year per vehicle)
• Expansion of CIS registered members (up 3.2% year on year to 36,279 companies) and increase in On-site Auto Auction registered members (up 2.1% year on year to 49,176 companies)
• Capacity expansion and market share gains through active capital investment such as rebuilding major venues and adding multi-story parking structures
• Support for auction listing demand from the expanding used vehicle export market (up 10.1% year on year to 1,738 thousand vehicles)
• Forecast for FY2027 (ending March 2027): vehicles listed of 3,560 thousand (up 1.6% year on year) and total Auto Auction operating revenue of ¥93,000 million (up 3.7% year on year)

Risks

• Continued sluggishness in new vehicle registrations (4,533 thousand vehicles in FY2026, down 0.9% year on year) affecting used vehicle supply and auction listing volumes
• Uncertainty over the outlook for domestic new vehicle sales due to supply chain disruptions amid escalating tensions in the Middle East
• Increase in depreciation expenses associated with rebuilding major venues and adding multi-story parking structures (segment depreciation expense of ¥4,396 million in FY2026, up 7.4% year on year)
• Risk of a shrinking membership base for the dedicated terminal service, as seen in the slight decline in USS JAPAN registered members (down 0.9% year on year to 1,946 companies)
• The flat contract rate (67.0%) suggests limits to the growth rate of contracts relative to increased listings, along with a risk of a declining contract rate (forecast at 66.3% for FY2027)
• Member reactions to fee revisions for internet- and dedicated terminal-based services, and price competition with other companies