MarketEnterprise FY2026 Earnings Q&A Deep Dive: Growth Trajectory and Profit Structure Toward FY2028 and Shareholder Returns

MarketEnterprise Co., Ltd. (Securities Code: 3135, TSE Standard) has released a summary of the Q&A session from its FY2026 full-year earnings briefing. During this session, management provided specific strategies regarding the roadmap for profit expansion and the initiation of dividends toward the fiscal year ending June 2028 , price revisions and their impact on the mobile communications business (Ka-shimo WiMAX) , omnichannel strategies through urban retail store expansion , a profit-oriented approach to the used agricultural machinery business , and trends toward market consolidation in the reuse industry .

This report provides a multi-faceted analysis of the company's business structural reforms and its mid-to-long-term growth story, centered on the 10 key topics disclosed during the Q&A.

---

1. Roadmap for Shareholder Returns and Dividend Initiation

At the beginning of the Q&A, the company addressed the shift in shareholder return policy , a topic of high interest to investors. The company plans to initiate dividend payments from the fiscal year ending June 2028, in line with profit growth.

• Dividend Funding and Review of Shareholder Perks : Currently, the company spends approximately 140 million yen annually on its shareholder benefit program. For future shareholder returns, the company is considering transitioning by reallocating these costs toward dividend funding, moving toward a more sustainable structure with higher return efficiency.
• Timing of Profit Growth : In addition to steady profit growth in the core "online reuse business," the company expects the fiscal year ending June 2028 to be a period of significant profit growth for both major business segments, as the full-year effects of the mobile communications business price revisions materialize. This timing is positioned as the catalyst for initiating dividends.

2. Profitability Improvement and Progress of Price Revisions in the Mobile Communications Business

In the mobile communications business (Ka-shimo WiMAX), measures are underway to fundamentally improve profitability.

• Monthly Price Increase of 540 Yen per Line : While price hikes were implemented to boost profitability, the trend in the number of active lines following the announcement has remained within the expected range , proceeding according to plan.
• From Turnaround to Profit Expansion : While factoring in a certain level of churn for the current fiscal year, the business has successfully turned profitable. With the full-year impact of the price increases expected in the fiscal year ending June 2028, the profit level of this segment is projected to improve significantly.

---

3. New Growth Engine: Urban Store Expansion and Omnichannel Integration

Leveraging its strength in online customer acquisition, the company plans to open its first urban retail stores to extend its reach into physical locations.

• Contribution to FY2027 Results : As the stores will open mid-year, the initial contribution to sales is expected to be in the range of several hundred million yen . Due to initial costs such as store opening expenses, a full-scale contribution to profits is planned for the fiscal year ending June 2028 .
• Online-to-Offline Synergy : By integrating the overwhelming customer acquisition power cultivated online with physical stores, the company aims to capture demand for in-person appraisals and immediate cash-out needs, further boosting the total volume of reuse transactions.

4. Strategic Positioning of the Used Agricultural Machinery Business

As the market supply of used agricultural machinery continues to rise due to an aging population and the acceleration of farmers retiring, the company is adopting a policy to maximize profits while mitigating risks.

• Focus on Domestic Supply and Demand : The company is strengthening channels to put retired machinery back into secondary circulation, supplying them at reasonable prices to new farmers in Japan.
• Response to Geopolitical Risks : Regarding overseas sales, the company is limiting transactions to those where profit contribution is reliably expected , taking into account geopolitical risks such as rising maritime transport costs and unstable delivery timelines. The strategy has shifted from all-encompassing expansion to a policy that prioritizes profit margins and certainty .

5. Structural Changes in the Reuse Industry and Outlook for Consolidation by Major Players

Regarding environmental changes in the overall reuse market, the company provided the following analysis and outlook:

• Concerns Over Saturation of Buying Specialty Stores : Due to the rapid increase in franchise buying stores focusing on precious metals and luxury goods, competition within the industry has intensified, leading to a sense of saturation in some areas.
• "Customer Acquisition Power" Determines Success : While demand for secondary goods and the need for cash-out services remain strong against the backdrop of rising prices, businesses that lack the "ability to consistently acquire purchase requests" —the foundation of the business—are tending to be weeded out.
• Acceleration of Consolidation by Major Players : As industry restructuring and M&A activities progress, the company expects further concentration and consolidation toward major operators that possess proprietary platforms and robust customer acquisition foundations.

---

Summary: Establishing a Profit Structure Toward June 2028

Through the Q&A session, the profit expansion scenario toward the fiscal year ending June 2028 was clearly outlined through the following priority measures:

1. Sustainable growth of the online reuse business and expansion of customer touchpoints through urban stores.
2. Profitability improvement and stabilization of stock revenue through price revisions in the communications business.
3. Risk reduction through selective order acceptance and a profit-oriented approach in the agricultural machinery business.
4. Construction of a return structure by utilizing the approximately 140 million yen annual shareholder benefit cost as a source for dividends.

MarketEnterprise is steadily advancing its current profit structure reforms while building a solid foundation for a leap in the fiscal year ending June 2028 and the full-scale implementation of shareholder returns.