Slides
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Consolidated Results of Operations Q1 FY2 26 USS Co., Ltd. August 2026 FY2026 (FY3/2027) : from April 1, 2026 to March 31, 2027
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Contents Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 2 1. Highlights of Q1 FY2026 2. Q1 FY2026 Summary of Consolidated Results of Operations 3. Net Sales and Operating Profit by Business Segment 4. Q1 FY2026 Reasons for Change in Operating Profit (Actual) 5. Consolidated Balance Sheets and Statements of Cash Flows 6. Automobile Market 7. Auto Auction Segment 8. Used Vehicle Purchasing and Selling Segment 9. Recycling Segment 1. FY2026 Consolidated Forecast 2. FY2026 Reasons for Change in Operating Profit (Forecast) 3. FY2026 Forecast by Business Segment Ⅱ：FY2026 Consolidated Forecast P.16 Ⅰ：Q1 FY2026 Results of Operations P. 3 1. Used Car Auction Market and USS Market Share 2. Medium-to Long-Term Management Goal 3. Cash Allocation Policy 4. Investment for Growth 5. Increase the Return on Equity 6. Earnings Distributions – Dividend Policy 7. Earnings Distributions – Stock Repurchase 8. Earnings Distributions – Total Payout Ratio 9. Cycle of Rising Corporate Value Driven by Business Growth and Shareholder Distributions Ⅲ：Market Overview and Strategy for Creating Value Over the Medium-term P.20 1. Business Models for USS 2. Pricing Power Derived from Solid Positioning 3. New/Used Car Registrations and Auto Auction Market 4. Appendix Ⅳ：Reference P.31
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Q1 FY2026 Results of Operations 3＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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FY2026 Forecast Revisions to the FY2026 plan Net sales increased from ¥119.8 billion to ¥121.8 billion • 1.7% higher than the initial forecast Operating profit increased from ¥61.0 billion to ¥62.6 billion • 2.6% higher than the initial forecast 株主還元 FY2026 dividend forecast has been raised from ¥55.0 to ¥56.4 * This will be the 27th consecutive year of dividend increases. Total payout ratio : at least 100% (by FY2027) Dividend payout ratio : at least 60% ROE target : 20% or higher Repurchase of stock • As of May 13, 2026, 10.33 million shares had been repurchased at a cost of approximately ¥18 billion Highlights of Q1 FY2026 4 Q1 Results Net sales ¥31.2 billion (up 14.1% YoY) Operating profit ¥16.1 billion (up 9.8% YoY) • USS Auto Auction result in Q1 FY2026: vehicles consigned were 950 thousand (up 4.7% YoY), contract completions were 619 thousand (up 8.4% YoY), contract completion rate was 65.1% • In the used vehicle purchasing and selling segment, sales and earnings increased because of the larger number of vehicles sold. • In the recycle segment, sales and earnings increased because the number of large-scale plant demolition projects increased. ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Earnings Distributions
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Q1 FY2026 Summary of Consolidated Results of Operations Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 5 Sales was up 14.1% YoY to ¥31.25 billion, operating profit was up 9.8% to ¥16.15 billion, and profit attributable to owners of parent was up 7.0% to ¥10.94 billion. Record-high sales, operating profit, ordinary profit and profit attributable to owners of parent (Million yen) Q1 FY2024 (per sales) Q1 FY2025 (per sales) Q1 FY2026 (per sales) Year on year Net sales 25,640 27,389 31,256 114.1% Cost of sales 9,642 37.6% 10,015 36.6% 12,090 38.7% 120.7% Gross profit 15,997 62.4% 17,374 63.4% 19,166 61.3% 110.3% Selling, general and administrative expenses 2,554 10.0% 2,665 9.7% 3,015 9.6% 113.1% Operating profit 13,443 52.4% 14,708 53.7% 16,150 51.7% 109.8% Ordinary profit 13,620 53.1% 14,870 54.3% 16,348 52.3% 109.9% Profit attributable to owners of parent 9,252 36.1% 10,232 37.4% 10,946 35.0% 107.0%
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Net Sales and Operating Profit by Business Segment 6＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Net sales Q1 FY2024 Q1 FY2025 Q1 FY2026 Year on year Auto auction 20,037 22,313 24,206 108.5% Used vehicle purchasing and selling 3,178 2,862 3,262 114.0% Recycling 2,178 1,891 3,421 180.9% Other 245 322 365 113.4% Total 25,640 27,389 31,256 114.1% Operating profit (operating margin) Q1 FY2024 Q1 FY2025 Q1 FY2026 Year on year Auto auction 13,102 (65.1%) 14,614 (65.1%) 15,728 (64.8%) 107.6% Used vehicle purchasing and selling 135 (4.2%) -25 (-) 65 (2.0%) - Recycling 189 (8.7%) 53 (2.8%) 284 (8.3%) 533.8% Other -1 (-) 31 (9.9%) 37 (10.2%) 117.2% Adjustment 17 (-) 34 (-) 35 (-) 103.3% Total 13,443 (52.4%) 14,708 (53.7%) 16,150 (51.7%) 109.8% (Million yen) * Net sales are sales to external customers and operating profit is based on business segment earnings. Operating margins (shown % in parenthesis) are calculated by dividing segment profit by segment sales.
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Q1 FY2026 Reasons for Change in Operating Profit (Actual) 7 0 10 20 Q1 FY2025 Q1 FY2026 Net sales Increase in recycling 1.52bn Increase in vehicles consigned 0.86bn Increase in contract completion rate 0.49bn Increase in CIS 0.49bn Cost of sales Increase in purchases -0.69bn Increase in cost of materials purchased -0.64bn Increase in outsourcing expenses -0.33bn Increase in cost of goods sold -0.12bn SG&A expenses Increase in employee salaries and bonuses -0.07bn Increase in commission expenses -0.06bn Increase in sales promotion expenses -0.03bn (Billion yen) 14.70 16.15 3.86 -0.34-2.07 ＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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Consolidated Balance Sheets and Statements of Cash Flows 8 FY25 End of Q1 FY26 FY25 End of Q1 FY26 Current assets 141,741 114,831 Current liabilities 52,169 45,734 Cash and deposits 110,433 81,689 Payables due to member dealers at auction 27,992 25,523 Other 31,308 33,141 Other 24,177 20,210 Non-current assets 128,389 128,200 Non-current liabilities 6,993 7,024 Property, plant and equipment 101,880 101,687 Total liabilities 59,163 52,758 Other 26,508 26,513 Total net assets 210,966 190,273 Total assets 270,130 243,031 Total liabilities and net assets 270,130 243,031 The primary use of cash in investing activities was purchase of fixed assets. The primary uses of cash in financing activities were dividends paid and purchase of treasury shares. Equity ratio : 76.8% ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Q1 FY24 Q1 FY25 Q1 FY26 Changes Net cash provided by (used in) operating activities 4,399 3,966 4,309 343 Net cash provided by (used in) investing activities -2,702 -1,734 -845 889 Free cash flow 1,697 2,231 3,464 1,233 Net cash provided by (used in) financing activities -10,109 -26,863 -31,808 -4,945 Capital expenditures (cash payments) 858 1,700 1,256 -443 Depreciation 1,074 1,201 1,246 45 Consolidated balance sheets (summary) Consolidated statements of cash flows (summary)(Million yen) (Million yen)
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Automobile Market Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 9 888 1,069 996 1,060 1,133 -14.1% 20.3% -6.8% 6.4% 7.0% -40% -20% 0% 20% 40% 0 1,000 2,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 325 407 393 436 442 -3.0% 25.3% -3.5% 11.1% 1.3% -80% -40% 0% 40% 80% 0 250 500 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 1,543 1,563 1,572 1,585 1,589 -6.7% 1.3% 0.6% 0.8% 0.2% -40% -20% 0% 20% 40% 0 1,000 2,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 1,773 2,068 1,835 2,139 2,196 1,200 1,323 1,321 1,414 1,479 -4.7% 16.7% -11.3% 16.6% 2.6% -3.7% 10.2% -0.1% 7.0% 4.6% -40% -20% 0% 20% 40% 0 1,500 3,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Vehicles consigned Vehicles contracted YoY(consigned) YoY(contracted) New car registrations and YoY changes Used car registrations and YoY changes (Thousand vehicles) (Thousand vehicles) Used car exports and YoY changes AA market: vehicles consigned and contracted and YoY changes (Thousand vehicles)(Thousand vehicles)
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Sales and earnings increased mainly because of the larger number of vehicles consigned and contracted and revision of CIS monthly membership fee. Auto Auction Segment (1) Overview 10 No. of vehicles consigned 950thousand (up 4.7% YoY) No. of contract completions 619 thousand (up 8.4% YoY) Contract completion rate 65.1％ (62.9% in Q1 FY25) ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Auto auction segment performance in Q1 Q1 FY24 Q1 FY25 Q1 FY26 Year on year Net sales 20,037 22,313 24,206 108.5% Consignment fees 4,281 5,112 5,351 104.7% Contract completion fees 4,607 4,898 5,170 105.6% Successful bid fees 7,511 8,460 9,281 109.7% Other 3,637 3,840 4,402 114.6% Operating profit 13,102 14,614 15,728 107.6% Operating margin 65.1% 65.1% 64.8% - 16,766 18,399 20,037 22,313 24,206 2.6% 9.7% 8.9% 11.4% 8.5% -30% -15% 0% 15% 30% 0 9,000 18,000 27,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Net sales and YoY changes (Million yen) 10,462 11,477 13,102 14,614 15,728 1.9% 9.7% 14.2% 11.5% 7.6% -60% -30% 0% 30% 60% 0 8,000 16,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Operating profit and YoY changes (Million yen) * Net sales are sales to external customers and operating profit is based on business segment earnings. Operating margins are calculated by dividing segment profit by segment sales.
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817 487 300 500 700 900 1,100 1,300 1,500 1 7 1 7 1 7 1 7 1 7 1 7 2021 2022 2023 2024 2025 2026 Auto Auction Segment (2) Average Price of Vehicle Contracted Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 11 The average price of vehicles contracted remains high. In February 2026, recorded the highest average price of vehicles contracted to date, reaching 1,380 thousand yen. (Thousand yen) Monthly data : Average price of vehicle contracted * In auto auctions in Japan, notwithstanding the vehicle contract price, consignment fees, contract completion fees and successful bid fees are fixed for each category. Therefore, commission does not fluctuate with the amount of the contracted price of a vehicle. USS Industry average (excl. USS) 1,380 751 1,345
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64.0% 59.8% 70.3% 62.9% 65.1% 70.2% 66.6% 73.2% 68.4% 69.1% 50% 65% 80% Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 USS Industry average (excl. USS) 1,000 976 1,188 1,157 1,279 530 542 623 634 720 400 900 1,400 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 USS Industry average (excl. USS) 711 794 753 907 950 455 475 529 571 619 0 600 1,200 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Vehicles consigned Vehicles contracted 39.6% 39.6% 41.1% 41.4% 42.8% 43.2% 44.2% 30% 40% 50% 2023.6 2023.12 2024.6 2024.12 2025.6 2025.12 2026.6 Auto Auction Segment (3) No. of Vehicles Consigned and Contracted, etc. 12＠Copyright 2026 USS Co., Ltd. All Rights Reserved. * Period ending in December: 12-month data; Period ending in June: 6-month data. * The figures in this slide do not include JBA data. (Thousand vehicles) No. of vehicles consigned and contracted Contract completion rate (Thousand yen) Market share Average price of vehicle contracted
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5,863 6,331 7,511 8,460 9,281 12,898 13,329 14,178 14,817 14,995 12,000 15,000 18,000 0 6,000 12,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Successful bid fees Fee per vehicle (yen) 48,428 48,241 47,944 48,228 49,383 33,582 34,129 34,569 35,355 36,470 2,048 1,953 1,908 1,967 1,928 52.0% 51.8% 53.0% 52.1% 51.5% 40% 50% 60% 70% 0 20,000 40,000 60,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 On-site auction members CIS members USS JAPAN members Off-site ratio 3,811 4,138 4,607 4,898 5,170 8,418 8,754 8,747 8,623 8,393 6,000 9,000 12,000 0 3,000 6,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Contract completion fees Fee per vehicle (yen) 3,935 4,440 4,281 5,112 5,351 5,556 5,609 5,711 5,656 5,654 5,000 5,500 6,000 0 3,000 6,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Consignment fees Fee per vehicle (yen) Auto Auction Segment (4) Fees, etc. 13＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Total consignment fees and consignment fee per vehicle Total contract completion fees and contract completion fee per vehicle (Million yen)(Yen) (Yen)(Million yen) No. of members and off-site ratioTotal successful bid fees and successful bid fee per vehicle (Million yen) (Companies)(Yen) * Fee per vehicle is calculated before eliminations for consolidation. * The figures in this slide do not include JBA data.
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2,302 2,366 3,178 2,862 3,262 9.1% 2.8% 34.3% -10.0% 14.0% -50% -25% 0% 25% 50% 0 2,000 4,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Net sales and YoY changes (Million yen) 12 6 135 -25 65 -34.3% -45.6% -80% -40% 0% 40% 80% -200 -100 0 100 200 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Operating profit and YoY changes (Million yen) Used Vehicle Purchasing and Selling Segment 14 Net sales ¥1,891 million (up 16.0% YoY) Operating profit ¥25 million (Operating loss ¥10 million in Q1 FY25) In the Rabbit used vehicle purchasing and selling business, sales and earnings increased because of an increase in vehicles sold and an increase in the gross profit per vehicle sold. Net sales ¥1,370 million (up 11.3% YoY) Operating profit ¥39 million (Operating loss ¥15 million in Q1 FY25) In the accident-damaged vehicle purchasing and selling business, sales and earnings increased because of an increase in the gross profit per vehicle sold. ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Used vehicle purchasing and selling segment performance in Q1 Q1 FY24 Q1 FY25 Q1 FY26 Year on year Net sales 3,178 2,862 3,262 114.0% Operating profit 135 -25 65 - Operating margin 4.2% - 2.0％ - 1935.9% 2000% * Net sales are sales to external customers and operating profit is based on business segment earnings. Operating margins are calculated by dividing segment profit by segment sales.
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Recycling Segment 15 Net sales ¥1,910 million (up 41.6% YoY) Operating profit ¥98 million (up 73.0% YoY) In the resource recycling business, sales and earnings increased, driven by higher metal prices and increased volumes of metal scrap handled. Net sales ¥1,510 million (up 178.7% YoY) Operating profit ¥185 million (Operating loss ¥3 million in Q1 FY25) In the industrial plant recycling business, an increase in large-scale plant demolition projects led to higher sales and earnings. ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Recycling segment performance in Q1 Q1 FY24 Q1 FY25 Q1 FY26 Year on year Net sales 2,178 1,891 3,421 180.9% Operating profit 189 53 284 533.8% Operating margin 8.7% 2.8% 8.3% - 2,041 3,116 2,178 1,891 3,421 7.9% 52.6% -30.1% -13.2% 80.9% -60% -30% 0% 30% 60% 90% 0 2,000 4,000 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Net sales and YoY changes (Million yen) 321 505 189 53 284 -5.3% 57.1% -62.5% -71.9% 433.8% -80% -40% 0% 40% 80% -600 -300 0 300 600 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY26 Operating profit and YoY changes (Million yen) * Net sales are sales to external customers and operating profit is based on business segment earnings. Operating margins are calculated by dividing segment profit by segment sales. 450%
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16 FY2026 Consolidated Forecast ＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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FY2026 Consolidated Forecast Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 17 FY25 (Actual) FY26 initial plan (May 12, 2026) Changes FY26 revised plan (Aug. 4, 2026) Revised plan vs FY25 Net sales 113,854 119,800 2,000 121,800 107.0% Gross profit (per sales) 71,451 (62.8%) 73,172 (61.1%) 1,617 74,790 (61.4%) 104.7% Operating profit (per sales) 59,847 (52.6%) 61,000 (50.9%) 1,600 62,600 (51.4%) 104.6% Ordinary profit (per sales) 60,590 (53.2%) 61,800 (51.6%) 1,600 63,400 (52.1%) 104.6% Profit attributable to owners of parent (per sales) 41,360 (36.3%) 41,600 (34.7%) 1,000 42,600 (35.0%) 103.0% EPS (yen) 88.78 91.35 2.11 93.46 105.3% Capital expenditures (cash payments) 11,038 7,400 - 7,400 67.0% Depreciation 5,070 5,600 -9 5,590 110.3% Auto Auction Business (excl. JBA) FY25 (Actual) FY26 initial plan (May 12, 2026) Changes FY26 revised plan (Aug. 4, 2026) Revised plan vs FY25 No. of vehicles consigned (thousands) 3,504 3,560 56 3,616 103.2% No. of vehicles contracted (thousands) 2,347 2,362 34 2,396 102.1% Contract completion rate 67.0% 66.3% - 66.3% - The FY2026 sales and earnings forecasts are higher because of the favorable market conditions in the Q1 and an increase in vehicles consigned resulting primarily from sales activities that took advantage of the reputation of USS auction sites as locations where vehicles are sold at high prices. Vehicles contracted increased too. As a result, the fiscal year forecast was revised to reflect this performance. Revision of vehicles handled at auctions : 3.61 million vehicles consigned (1.6% above the previous plan); 2.39 million vehicles contracted (1.4% above the previous plan); contract completion ratio of 66.3% vs. 66.3% in the previous plan (Million yen)
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18＠Copyright 2026 USS Co., Ltd. All Rights Reserved. FY2026 Reasons for Change in Operating Profit (Forecast) Net sales Increase in vehicles consigned 2.37bn Increase in CIS 1.94bn Increase in recycling 1.75bn Increase in fee rates 1.14bn Increase in the used vehicle purchasing and selling 0.72bn Cost of sales Increase in purchases -0.92bn Increase in outsourcing expenses -0.89bn Increase in cost of goods sold -0.59bn Increase in cost of materials purchased -0.52bn Increase in employee salaries and bonuses -0.52bn Increase in depreciation -0.47bn SG&A expenses Increase in sales promotion expenses -0.19bn Increase in employee salaries and bonuses -0.18bn Increase in commission expenses -0.12bn 0 35 70 59.84 62.60 7.94 -4.60 -0.58 (Billion yen) FY2025 FY2026 (Forecast)
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FY2026 Forecast by Business Segment 19＠Copyright 2026 USS Co., Ltd. All Rights Reserved. FY25 (Actual) FY26 initial plan (May 12, 2026) Changes FY26 revised plan (Aug. 4, 2026) Revised plan vs FY25 Net sales Auto auction 89,702 93,010 1,876 94,887 105.8% Used vehicle purchasing and selling 12,470 13,077 116 13,193 105.8% Recycling 10,292 12,008 39 12,047 117.1% Other 1,388 1,703 -32 1,671 120.4% Total 113,854 119,800 2,000 121,800 107.0% Operating profit (per sales) 59,847 (52.6%) 61,000 (50.9%) 1,600 62,600 (51.4%) 104.6% (Million yen)
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Market Overview and Strategy for Creating Value Over the Medium-term 20＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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Used Car Auction Market and USS Market Share 21 0 30,000 60,000 0 3,000 6,000 9,000 12,000 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 (Thousands) (Million yen) USS 43.2% Top 6 32.5% Other 24.3% 2025 (CY) market share Maintained higher market shares and profit in the period of sluggish markets following the financial crisis of 2008-2009. The medium/long-term goal is a market share of 50%. * Market share in 2021 has been revised to reflect revisions to data announced by USEDCAR Co., Ltd. ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Operating profit (right axis, million yen) AA market: vehicles consigned (left axis, thousands) USS vehicles consigned (left axis, thousands) USS Market share 21.2% 26.8% 34.7% 31.8% 39.4% 39.6% 43.2%
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Medium-to Long-Term Management Goal 22 Focus resources on market share growth in the core auto auction business for higher profitability of the entire USS Group. Raised the ROE goal from 15% or higher to 20% or higher and the dividend payout ratio goal from at least 55% to at least 60%. ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Market share 50% Consolidated financial goals 20% or higher at least 60% at least 100% Positioning of USS Group businesses Goals for individual businesses ¥20.0billion Auto Auction Business Growth Profitability Resource concentration for overall growth Stable profitability Recycling Business Payout ratio ROE Total payout ratioRecycling Business sales in FY2028
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Cash Allocation Policy 23＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Make investments needed for medium to long-term growth while keeping the shareholder distribution payout ratio 100%. Investments for growth of approximately ¥50 billion during the three-year period ending with FY2027. Operating cash flow About ¥140 billion Cash and other sources of liquidity About ¥30 billion Earnings distributions About ¥120 billion Investments for growth About ¥50 billion Total for FY2025 -2027 Operating cash flow FY2025 (Actual) : ¥45.5 billion Thanks to the strong performance of the auto auction business, we are on track as planned. Earnings distributions FY2025 (Actual) : ¥41.3 billion By the consolidated dividend payout ratio of at least 60% and flexible stock repurchase, we achieved total payout ratio of at least 100%. Investments for growth FY2025 (Actual) : ¥10.8 billion In January 2026, the Yokohama auction site was newly constructed. （※） ※To eliminate fluctuations due to the day of the week on the closing date, the figures displayed exclude the impact of increases and decreases in receivables and payables with member dealers at auction transactions.
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Investment for Growth 24 Tokyo Site (After FY2027) About ¥20 billion To further expand the processing capacity of Japan’s largest auction site, which handles approximately 17,800 vehicles per auction, we plan to rebuild the existing facility that has been in operation for 20 years, after securing the vehicle storage space inadvance. HAA Kobe Site (After FY2027) About ¥15 billion By expanding capacity, we aim to effectively capture the recovering demand and further strengthen the revenue base in the Western Japan area. As the largest auction site in Western Japan, we are planning to expand the multi-story parking facility and construct a new building. Fukuoka Site (After FY2027) About ¥2 billion As part of strengthening our operational base in the Kyushu area, we are planning to construct a new building at the Fukuoka site. Enhancing our competitive advantage in the Kyushu area by centering on collaboration with the Kyushu site. Auto auction operations IT system ( ~ FY2027) About ¥5 billion Recycling Business Auto Auction Business Resource recycling business (ARBIZ) ¥3 billion ARBIZ is promoting the commercialization of various resource recycling operations, including a direct aluminum recycling business, and aims to promptly commercialize the recycling of solar panels, which are expected to be discarded in large quantities in the future, thereby fostering a new revenue stream. ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Main growth investment plans for improving corporate value in the medium to long term
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Medium-term Business Plan and Raising the ROE 25＠Copyright 2026 USS Co., Ltd. All Rights Reserved. In FY2025, raised the goal for the ROE, an indicator of efficient capital use, from 15% or higher to 20% or higher. Plan to accomplish this goal by repurchasing stock to reduce equity while expanding business operations for higher earnings. ROE target: 20% or higher Business expansion Market share target 50％ System investment (digital transformation) Auction site renovations and enlargements Business alliances and M&A Dividend policy Acquisition of treasury shares Capitalization strategies Total payout ratio target at least 100％ KPI for raising the ROE and actions ROE formula/improvement measures ＝ Profit Equity Stock repurchases and other measures for lower equity Business growth for higher earnings ROE (%)
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Earnings Distributions – Dividend Policy 26 0.25 1.0 1.5 2.0 2.5 3.25 4.0 5.0 7.25 8.25 8.4 9.6 12.2 15.375 17.35 18.85 20.4 23.2 23.9 25.2 27.7 27.75 33.1 33.75 37.7 43.4 54.7 56.4 2.4% 11.9% 22.4% 30.5% 43.1% 45.1% 51.5% 50.1% 67.0% 55.0% 55.0% 55.1% 55.0% 61.4% 60.2% 0% 40% 80% 120% 160% 0 30 60 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 DPS Consolidated payout ratio （Yen） 300% 344.5% （FY） ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. （Forecast） The dividend forecast for FY2026 has been increased from 55.0 yen to 56.4 yen, 1.7 yen more than the FY2025 dividend. Forecasting 27 consecutive years of dividend growth since listing.
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Earnings Distributions – Stock Repurchase Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 27 In order to further reinforce its commitment to shareholder returns, USS implemented a facility share repurchase by SMBC Nikko(Japanese ASR). On May 13, 2026, USS completed the planned repurchase of approximately 18 billion yen (10,332,900 shares). USS believes that the demand and supply of its shares are expected to increase as a result of the market purchase transaction executed by SMBC Nikko to return the number of shares it has borrowed. *For details of the share repurchase, please refer to the USS’s IR information entitled “Notice regarding Share Repurchase through the Off-Auction Own Share Repurchase Trading (ToSTNeT-3) System (Share Repurchase through a Facility Share Repurchase (Japanese ASR)) ” dated May 12, 2026. Results of acquisition Type of shares Common stock Period of repurchase May 13, 2026 Total number of shares repurchased 10,332,900 shares Aggregate value of shares repurchased 17,999,911,800 yen
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Earnings Distributions – Total Payout Ratio 28 3.6% 11.9% 14.6% 14.4%16.7% 17.2% 33.0% 53.8% 30.5% 117.6% 76.8% 75.6% 103.5% 111.4% 45.1% 45.1% 52.1% 84.2% 50.1% 59.3% 104.0% 81.8% 60.5% 91.0% 81.6% 100.0%102.5% 0% 40% 80% 120% 160% 200% 240% 0 10,000 20,000 30,000 40,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Dividend paid Stock repurchased Total payout ratio (Million yen) 300% 344.5% （FY） ＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Policy for shareholder distributions: Total shareholder distributions of at least 100% (from FY2025 to FY2027). （Forecast）
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Cycle of Rising Corporate Value Driven by Business Growth and Shareholder Distributions 29＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Aim at increasing shareholder value by a two-pronged strategy of solid investments in growth and active shareholder distributions. Rising Corporate Value Higher Avg. Price of Vehicle Contracted /Higer Contract Completion Rate * No. of vehicles consigned, Avg. price of vehicles contracted, and contract completion rate are as of FY2025. No. of auction members is as of the end of FY2025. Invigorate Auction Increase in No. of Auction Members No.1 Market Share in No. of Vehicles Consigned Increasing Investment for Growth Total payout Ratio at least 100% Consecutive Dividend Hikes 27 years in a row after going public Rising Stock Price Increase in No. of Vehicles Contracted Contract Completion Rate 67.0% Avg. Price of Vehicles Contracted ¥1.25 million （Industry’s Avg. ¥0.68 million） Diversification of Vehicles Consigned Further Increase in No. of Vehicles Consigned No. of Vehicles Consigned 3.50 (Million Units) * Industry’s Avg. is the Avg. excluding USS. No. of Auction Members 49,176 (Companies)
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30Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ Notes • This document has been translated from the original Japanese as a guide for non-Japanese investors. • Forward-looking statements in this material are based on information available to management at the time this material was prepared and assumptions that management believes are reasonable. These statements are not promises by the Company regarding future performance. Actual results may differ significantly from these statements for a number of reasons. • The information provided in this material may include unaudited figures. • The amounts less than the units shown are discarded. • Percentages are rounded to the hundredths place. Reference materials Japan Automobile Dealers Association, Japan Light Motor Vehicle and Motorcycle Association, USEDCAR Co., Ltd., Trade Statistics of Japan Ministry of Finance Finance Department, Supervisory Office, USS Co., Ltd. TEL ：+81-52-689-1109 E-mail ：irinfo@ussnet.co.jp Contact Information
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Reference 31＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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Business Models for USS 32＠Copyright 2026 USS Co., Ltd. All Rights Reserved. Vehicles consigned 3.50 million (FY2025) USS’s fee per unit Approx. 28,000yen Contract completion rate 67.0％ (FY2025) Approx. 10,000yen Contract completion fee Approx. 8,000yen Consignment fee Approx. 10,000yen Successful bid fee Payment for vehicles Payment for vehicles Payment for vehicles Ferrous scrap Payment for vehicles Payment for vehicles Payment for vehicles Auto Auction Members consigning vehicles (seller) » Used car dealers » Used car purchasing companies » New car dealers Members submitting successful bids (buyer) » Used car dealers » Used car exporting companies » New car dealers Rabbit (Used vehicle purchases) ARBIZ (Recycling) End users Steel makers
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10.3% 8.4% -0.8% 13.6% 0.4% 7.5% (10%) 0% 10% 20% 30% 24/10 24/11 24/12 25/1 25/2 25/3 25/4 25/5 25/6 25/7 25/8 25/9 Pricing Power Derived from Solid Positioning Copyright 2026 USS Co., Ltd. All Rights Reserved.＠ 33 Revising auction fee flexibly without interrupting a tendency to increase No. of vehicles consigned and contracted. 6.7% 14.5% 15.2% 12.2% 21.8% 11.7% 0% 10% 20% 30% 22/10 22/11 22/12 23/1 23/2 23/3 23/4 23/5 23/6 23/7 23/8 23/9 -0.6% 8.1% 6.6% 1.6% 9.6% 4.2% (5%) 0% 5% 10% 15% 22/10 22/11 22/12 23/1 23/2 23/3 23/4 23/5 23/6 23/7 23/8 23/9 Cases of Auction Fee Increases Since 2023 Impact on No. of Vehicles Consigned and Contracted when Auction Fee Increases 2023.1 Increasing successful bid fee and contract completion fee at Tokyo and Nagoya sites ＋500 yen ～ 2,000 yen in the majority of corners 2023.4 Increasing contract completion fee at 9 sites（②） ＋500 yen ～ 2,000 yen in multiple corners Increasing successful bid fee at all sites except Tokyo and Nagoya sites （③） ＋500 yen ～ 3,000 yen in all corners 2024.4 Increasing CIS successful bid fee Bid with setting limits：14,000 yen 17,000 yen Internet Live：17,000 yen 20,000 yen One-click bidding：15,000 yen 20,000 yen YoY changes of No. of vehicles off-site contracted (24/10-25/9) 2025.4～ Increasing JAPAN successful bid fee YoY changes of No. of vehicles consigned (22/10-23/9) YoY changes of No. of vehicles contacted (22/10-23/9) 2023.4～ Increasing contract completion fee 2023.4～ Increasing successful bid fee 1 2 3 2 3 2025.4 Increasing JAPAN successful bid fee（①） Dedicated terminal：12,000 yen 15,000 yen 2026.4 Increasing CIS monthly fee Monthly fee：11,800 yen 16,800 yen 1
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New/Used Car Registrations and Auto Auction Market 34 New car registrations Used car registrations Used car exports USS vehicles consigned USS vehicles contracted Vehicles consigned (AA market) 0 2,000 4,000 6,000 8,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 The auction market continued to expand till 2000 as the share of used vehicles sold through the auction market increased as ashare of the total used vehicle market. Starting in the mid-2000s, older vehicles and vehicles with high mileage which would normally have been scrapped started flowing into auto auction sites and steadily drove up the number of vehicles consigned. After the financial crisis of late 2008 the auto auction market was largely correlated to new car registrations (supply) and exports (demand). New/Used car registrations, used car exports, vehicles consigned and vehicles contracted (CY) (Thousand vehicles) ＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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35 Appendix – Auto Auction Results at USS Sites(from April to June) Number of auctions Number of consigned vehicles Number of contracted completions Contract completion rate Q1 FY26 Q1 FY25 Q1 FY26 Q1 FY25 YoY change Q1 FY26 Q1 FY25 YoY change Q1 FY26 Q1 FY25 Tokyo 12 12 237,919 221,681 107.3% 159,153 142,448 111.7% 66.9% 64.3% Nagoya 12 12 139,624 134,728 103.6% 86,794 79,926 108.6% 62.2% 59.3% HAA Kobe 12 12 93,169 91,726 101.6% 60,946 56,185 108.5% 65.4% 61.3% Kyushu 12 12 77,515 66,929 115.8% 56,315 48,342 116.5% 72.7% 72.2% Yokohama 12 12 68,839 67,035 102.7% 42,637 39,931 106.8% 61.9% 59.6% Osaka 12 12 59,004 59,295 99.5% 31,926 32,126 99.4% 54.1% 54.2% Sapporo 12 12 47,943 44,508 107.7% 32,629 30,335 107.6% 68.1% 68.2% Kobe 12 12 32,264 28,012 115.2% 19,970 18,000 110.9% 61.9% 64.3% R-Nagoya 12 12 26,146 29,899 87.4% 21,487 21,863 98.3% 82.2% 73.1% Shizuoka 12 12 25,555 26,962 94.8% 15,977 16,115 99.1% 62.5% 59.8% Tohoku 12 12 23,968 21,164 113.2% 17,764 15,632 113.6% 74.1% 73.9% JAA 12 12 23,690 22,688 104.4% 9,109 9,261 98.4% 38.5% 40.8% Okayama 12 12 21,894 21,154 103.5% 17,222 16,618 103.6% 78.7% 78.6% Gunma 12 12 19,140 18,328 104.4% 11,956 11,521 103.8% 62.5% 62.9% Niigata 12 12 17,497 15,974 109.5% 10,527 8,996 117.0% 60.2% 56.3% Saitama 12 12 16,014 17,033 94.0% 10,917 11,070 98.6% 68.2% 65.0% Fukuoka 12 12 11,116 13,173 84.4% 6,506 7,084 91.8% 58.5% 53.8% Hokuriku 5 12 6,672 5,122 130.3% 5,303 3,901 135.9% 79.5% 76.2% Shikoku - - 2,411 2,287 105.4% 1,864 1,745 106.8% 77.3% 76.3% Total 209 216 950,380 907,698 104.7% 619,002 571,099 108.4% 65.1% 62.9% (Number of auctions held, Vehicles) * The figures in this slide exclude JBA data. * Beginning with the current fiscal period, the auction results of the Shikoku Site, which were previously included in HAA Kobe Site, are presented separately. * The Nagoya Site and the Hokuriku Site were linked to conduct joint auctions. Accordingly, for the purpose of counting the number of auctions, each joint auction has been counted as a single auction. The number of auctions held for the current period, assuming the same conditions as in the previous year, is 216.
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Appendix – Auto Auction Monthly data 36 (Vehicles, %) Apr. May Jun. Jul. Aug. Sep. 1H Oct. Nov. Dec. Jan. Feb. Mar. 2H FY No. of Vehicles Consigned FY2024 259,384 238,380 255,968 248,875 227,094 258,112 1,487,813 291,463 300,874 246,285 255,828 285,371 334,368 1,714,189 3,202,002 YoY -11.5 5.0 -6.9 -0.8 7.7 -6.8 -3.0 15.5 8.6 4.6 20.2 6.9 9.2 10.5 3.8 FY2025 327,914 290,251 289,533 306,955 233,141 276,888 1,724,682 314,395 292,696 256,699 272,007 294,698 349,260 1,779,755 3,504,437 YoY 26.4 21.8 13.1 23.3 2.7 7.3 15.9 7.9 -2.7 4.2 6.3 3.3 4.5 3.8 9.4 FY2026 348,991 281,669 319,720 352,947 1,303,327 - 1,303,327 YoY 6.4 -3.0 10.4 15.0 - - - No. of Vehicles Contracted FY2024 176,964 171,292 181,720 175,922 156,107 176,284 1,038,289 194,290 190,922 147,754 165,560 188,436 219,907 1,106,869 2,145,158 YoY 9.2 20.9 5.9 10.8 14.1 -1.8 9.2 19.4 8.3 1.9 14.4 -0.1 0.5 6.8 8.0 FY2025 200,476 187,194 183,429 203,188 162,263 194,631 1,131,181 216,185 199,242 169,328 189,320 205,104 237,206 1,216,385 2,347,566 YoY 13.3 9.3 0.9 15.5 3.9 10.4 8.9 11.3 4.4 14.6 14.4 8.8 7.9 9.9 9.4 FY2026 224,073 185,404 209,525 225,196 844,198 - 844,198 YoY 11.8 -1.0 14.2 10.8 - - - Contract Completion Rate FY2024 68.2 71.9 71.0 70.7 68.7 68.3 69.8 66.7 63.5 60.0 64.7 66.0 65.8 64.6 67.0 FY2025 61.1 64.5 63.4 66.2 69.6 70.3 65.6 68.8 68.1 66.0 69.6 69.6 67.9 68.3 67.0 FY2026 64.2 65.8 65.5 63.8 64.8 - 64.8 * The figures in this slide exclude JBA data.＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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Appendix – Trends in the Used Car Auction Industry 37 FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q New car registrations 1,069 1,156 1,171 1,131 996 1,172 1,121 1,285 1,060 1,119 1,100 1,253 1,133 YoY change 20.3% 11.8% 8.4% -18.1% -6.8% 1.3% -4.3% 13.6% 6.4% -4.5% -1.9% -2.5％ 7.0% Used car registrations 1,563 1,524 1,571 1,792 1,572 1,543 1,589 1,761 1,585 1,579 1,560 1,782 1,589 YoY change 1.3% 2.4% 5.8% 0.9% 0.6% 1.2% 1.2% -1.7% 0.8% 2.3% -1.8% 1.1％ 0.2% Used car exports 407 395 419 381 393 366 431 388 436 436 451 413 442 YoY change 25.3% 35.6% 18.7% 19.1% -3.5% -7.2% 2.7% 1.7% 11.1% 19.1％ 4.6％ 6.5％ 1.3% Industry trends Auto auction market FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Vehicles consigned 2,068 1,871 1,917 1,913 1,835 1,765 1,995 2,026 2,139 1,907 1,942 2,023 2,196 YoY change 16.7% 19.0% 5.1% -9.1% -11.3% -5.6% 4.0% 5.9% 16.6% 8.0% -2.6% -0.2％ 2.6% Vehicles contracted 1,323 1,259 1,277 1,371 1,321 1,251 1,337 1,390 1,414 1,341 1,350 1,425 1,479 YoY change 10.2% 12.1% 8.5% 4.0% -0.1% -0.7% 4.7% 1.4% 7.0% 7.2% 1.0% 2.5％ 4.6% (Thousand vehicles) (Thousand vehicles) ＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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Appendix – Auto Auction 38 FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 18,399 18,068 18,429 20,168 20,037 19,415 20,671 21,718 22,313 21,383 22,321 23,684 24,206 YoY change 9.7% 10.2% 7.6% 6.1% 8.9% 7.5% 12.2% 7.7% 11.4% 10.1% 8.0% 9.1％ 8.5% Operating profit 11,477 11,330 11,735 12,871 13,102 12,522 13,397 14,251 14,614 13,799 14,732 15,437 15,728 YoY change 9.7% 13.6% 13.7% 11.8% 14.2% 10.5% 14.2% 10.7% 11.5% 10.2% 10.0% 8.3％ 7.6% (Million yen) * Net sales are sales to external customers and operating profit is based on business segment earnings. * Fee per vehicle is calculated before eliminations for consolidation. * The figures in this slide exclude JBA data. FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q No. of vehicles consigned (thousands) 794 738 764 786 753 734 838 875 907 816 863 915 950 No. of vehicles contracted (thousands) 475 475 484 552 529 508 532 573 571 560 584 631 619 Contract completion rate USS 59.8% 64.3% 63.3% 70.2% 70.3% 69.2% 63.6% 65.5% 62.9% 68.6% 67.7% 69.0% 65.1% Industry average (excl. USS) 66.6% 69.3% 68.8% 72.7% 73.2% 72.0% 69.5% 70.9% 68.4% 71.7% 71.0% 71.7％ 69.1% Avg. price of vehicle contracted USS (thousand yen) 976 1,061 1,048 1,124 1,188 1,247 1,188 1,202 1,157 1,259 1,287 1,309 1,279 Industry average (excl. USS) (thousand yen) 542 572 560 591 623 636 616 641 634 684 700 735 720 Fees Consignment fees (million yen) 4,440 4,229 4,377 4,454 4,281 4,275 4,861 4,998 5,112 4,634 4,958 5,172 5,351 Fee per vehicle (yen) 5,609 5,753 5,752 5,699 5,711 5,855 5,827 5,739 5,656 5,694 5,765 5,671 5,654 Contract completion fees (million yen) 4,138 4,190 4,260 4,846 4,607 4,445 4,664 4,959 4,898 4,765 5,002 5,304 5,170 Fee per vehicle (yen) 8,754 8,875 8,855 8,833 8,747 8,800 8,805 8,693 8,623 8,547 8,598 8,439 8,393 Successful bid fees (million yen) 6,331 6,362 6,489 7,318 7,511 7,219 7,620 8,160 8,460 8,286 8,700 9,408 9,281 Fee per vehicle (yen) 13,329 13,403 13,413 13,266 14,178 14,215 14,307 14,228 14,817 14,803 14,888 14,904 14,995 Other On-site auction members 48,241 48,379 48,003 48,123 47,944 48,135 47,905 48,160 48,228 48,792 48,864 49,176 49,383 CIS members 34,129 34,246 34,238 34,367 34,569 34,842 34,971 35,148 35,355 35,735 36,219 36,279 36,470 USS JAPAN members 1,953 1,871 1,707 1,774 1,908 1,941 1,964 1,964 1,967 1,964 1,948 1,946 1,928 Off-site ratio 51.8% 52.8% 52.0% 53.1% 53.0% 53.3% 52.6% 53.6% 52.1% 51.9% 51.0% 51.4％ 51.5% ＠Copyright 2026 USS Co., Ltd. All Rights Reserved.
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Appendix – Used Vehicle Purchasing and Selling, Recycling, Other 39 Used vehicle purchasing and selling FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 2,366 2,947 2,799 3,318 3,178 3,182 3,035 3,254 2,862 3,083 3,022 3,502 3,262 YoY change 2.8% 7.3% 8.0% 20.6% 34.3% 8.0% 8.4% -1.9% -10.0% -3.1% -0.4% 7.6% 14.0% Operating profit 6 138 111 75 135 142 8 -9 -25 148 121 136 65 YoY change -45.6% -30.7% 846.3% - 1,935.9% 3.3% -92.6% - - 4.0% 1,381.4% - - Recycling FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 3,116 3,033 1,985 2,391 2,178 1,948 2,196 2,083 1,891 1,763 3,292 3,345 3,421 YoY change 52.6% 43.0% -10.8% -7.8% -30.1% -35.8% 10.6% -12.9% -13.2% -9.5% 49.9% 60.5% 80.9% Operating profit 505 348 117 192 189 62 130 160 53 -13 263 370 284 YoY change 57.1% 69.5% -57.6% -63.6% -62.5% -82.2% 10.4% -16.5% -71.9% - 102.1% 131.2% 433.8% Other FY2023 FY2024 FY2025 FY2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net sales 47 114 205 214 245 268 293 311 322 360 353 352 365 YoY change 83.3% 402.6% 544.4% 1,012.5% 421.7% 135.5% 42.7% 45.6% 31.4% 34.2% 20.4% 13.1% 13.4% Operating profit -24 -17 -13 36 -1 40 33 -49 31 30 30 -31 37 YoY change - - - - - - - - - -23.8% -9.2% - 17.2% (Million yen) * Net sales are sales to external customers and operating profit is based on business segment earnings. (Million yen) (Million yen) ＠Copyright 2026 USS Co., Ltd. All Rights Reserved.