YAMADA HOLDINGS CO., LTD.

As of the end of March 2026, the company operated 928 directly-managed Yamada Denki stores, and 8,774 group stores including franchises. Even as the company proceeds with reducing the number of stores, directly-managed sales floor area has expanded to 2,922,990 ㎡, 101.7% of the same period of the previous year, establishing a framework capable of opening 10 LIFE SELECT flagship stores per year. This physical infrastructure constitutes a unique asset that competitors cannot easily replicate in a short period.

The group encompasses Hinokiya Group (net sales of ¥177,286 million, up 22.4% year on year), Housetec (net sales of ¥64,800 million), and Toclas (made a subsidiary in February 2026), building an integrated value chain spanning from housing sales to housing equipment manufacturing. Operating profit for the Housing & Construction segment as a whole reached ¥10,254 million, serving as a stable profit source that complements fluctuations in the profitability of the Denki (Consumer Electronics) segment.

The Environment segment continued to record high growth, with net sales of ¥42,835 million (up 18.6% year on year) and operating profit of ¥1,871 million (up 14.5% year on year). The company has built a self-contained cycle of purchasing used appliances, remanufacturing them into products, and reselling them through more than 350 stores nationwide, achieving a profit structure with low external dependency through in-house sourcing of raw materials and internal utilization of sales channels.

Expanding the experience-and-completion-type flagship store concept "LIFE SELECT" at a pace of 10 new store openings per year. As of the end of March 2026, 41 stores operate nationwide. In parallel with store consolidation, directly-operated sales floor area is being expanded to improve area market share and store efficiency and profitability.

Utilizing sales floor space freed up after strategic inventory clearance to accelerate the rollout of high-gross-margin PB and SPA products. This is regarded as the most critical measure for simultaneously improving product margins and differentiating from competitors, driving the recovery in profitability of the Denki (electronics) segment.

Plans to sell approximately ¥130.0 billion (on an acquisition-cost basis) worth of non-core business assets, low-efficiency operating assets, and held equity securities—primarily held by the Denki segment—within 2 years. The proceeds will be reallocated to store development, M&A, reduction of interest-bearing debt, and shareholder returns, aiming to improve total asset turnover and asset efficiency.

Promoting synergy creation through the consolidation of Towa Sogo Jyutaku and Toclas as subsidiaries, strengthening the rollout of "Sumai no Sodan Counter, Yamada Fudosan" (Housing Consultation Counter) leveraging the Yamada Denki store network, and converting custom-built housing order value (up 113.8% year-on-year on a cumulative full-year basis) into completed-construction revenue. Also advancing, in parallel, the land-with-house subdivision and built-for-sale housing strategy and expansion of the used-home resale business.

Centered on the Operational Efficiency Promotion Office, the company is advancing DX and rationalization of head office functions, optimization of the logistics supply chain, appropriate personnel allocation through store consolidation, and a digital shift in sales promotion through stronger digital membership acquisition. In the Environment segment, a waste incineration power generation facility (energy plant) is under construction, scheduled to begin operation in 2027.