Message from the President

When our founder, Shoya Honda, traveled to the United States, he was impressed by the emergence of suburban stores as the motorization of North American society progressed. One type of store that particularly caught his eye was the home center. Convinced that consumers in Japan, their food and clothing needs having been met, would soon turn their eyes toward their living environments, he decided in 1975 to establish “Joyful Honda,” with the theme of “making living environments richer and more comfortable.”
The company’s name, “Joyful Honda,” is imbued with the founder’s wish to bring smiles and enjoyment and to create joy and dreams together with customers. Even today, as needs and channels have become increasingly diverse, the joy of local communities is our joy, and eliminating customers’ “negatives” and delivering new value has been our style since the very beginning.
Without being bound by the conventions of the home center, we will build stores that are connected to locals with strong bonds of trust and that are loved by their local communities. We also aim to create stores where our employees can feel pride and joy in working in those local communities and in our stores.
We will continue our “innovation” and “challenge” to be the kind of stores that customers will think of first, both in normal times and when they have a problem to solve.

Never forgetting our beginnings, we look forward to welcoming you to the new Joyful Honda!

With “Cultivate Fans of Joyful Honda!!” as our fundamental policy, continuing from the previous consolidated fiscal year, we have worked to enhance our product appeal so that customers choose and are delighted with our offerings. We have also strengthened our proposal-making and customer service capabilities through the creation of attractive store spaces.

In addition, the consolidated fiscal year under review marked the first year of the new medium-term management plan, and in order to establish the foundation for medium- to long-term sustainable growth, we further deepened existing businesses, implemented new initiatives, and promoted strategic investments.
Major initiatives are as follows.

 

• Aggressive opening and renovation of specialty stores

Given the increasingly diversified and sophisticated demand for products for professional use, we opened the Hondaya Ageo Hinode Store in September 2025. This was followed by the Hondaya Yashio Nishibukuro Store (January 2026), the Joyful Honda Shizaikan Chiba Hamanocho Store (March 2026), the Hondaya Higashikurume Hachimancho Store (June 2026), and the Joyful Honda Shizaikan Kitamoto Nakamaru Store (June 2026). In April 2026, we also opened the Joyful Honda Shizaikan FARM GARDEN+ Tochigi Hakonomorimachi Store, a new store format that combines agricultural and horticultural supplies with the existing Joyful Honda Shizaikan format. Through these openings, we further strengthened our ability to supply building materials and products for professional use.
In August 2025, we opened the Pet's CLOVER Kashiwanoha Store and completely renovated the pet specialty section at the Joyful Honda Arakawaoki Store under the Pet's CLOVER brand. We expanded our product lineup and created a safe and enjoyable environment for customers and their pets, complete with a dog park. We have introduced a system called “CLOVER STEP” to prevent customers from acquiring pets on impulse. The purpose of this system is to encourage customers to be fully prepared for the responsibilities of pet ownership. We do not hand over dogs or cats to customers on the first day of their visit. Instead, customers go through several steps before welcoming a pet into their family with a commitment to caring for it throughout its life.
In addition, we actively invested in the development of attractive sales floors, such as the renovation of the garden shop at the Kimitsu Store, the expansion of the floor space at the Shizaikan Isesaki Nirazukamachi Store, and the renovation of the daily goods and interior areas at the Hitachinaka Store, in order to improve our ability to attract customers. We will continue to accelerate the opening of highly specialized store formats tailored to demand in each region, aiming to achieve our cumulative store opening target (20 to 30 specialty stores) during the medium-term management plan period.

 

• Strengthening group coordination and synergies by making Honda Co., Ltd. a wholly-owned subsidiary
We acquired all shares of Honda Co., Ltd. and made it a wholly-owned subsidiary. We are leveraging Honda’s robust delivery capabilities and corporate customer base together with the JOYFUL HONDA Group’s diverse product lineup, purchasing and procurement capabilities, and ability to attract customers. Through these efforts, we aim to enhance corporate value by generating synergies in the professional and corporate markets and expanding the Group’s overall scale of sales.

 

• Rebranding the Reform Division as “JOYFUL HOME”
To strengthen the branding of the Reform Division, we launched “Studio.Re,” a brand specializing in renovations aimed at upgrading our order mix. We also promoted “FREE DESIGN.EX,” through which our designers propose attractive exterior and garden designs. In addition, we redefined our renovation business and established a new mission: “We become the home of the community.” We also announced that the business would be rebranded as “JOYFUL HOME” from the following consolidated fiscal year, which begins on June 21, 2026. With the change to “JOYFUL HOME,” we will provide even greater value in response to customers’ changing needs, while also revamping our logo and VI* to increase corporate value by promoting recognition of the new brand across customer touchpoints such as store signs and promotional materials.
* Visual identity: An approach that makes a company’s or brand’s philosophy and values visible and communicates them through visual design elements.

 

• Sustainability and ESG initiatives
Aiming to realize a sustainable local community and enhance corporate value over the medium to long term, we have been actively working to address ESG issues through our business activities.
As for investment in intellectual capital, we held dialogue sessions between head office management and store leaders on the future of Joyful Honda, and shared perspectives on store operations, human resource development, and other matters. We also conducted a study tour of the United States organized by the Diversity Promotion Committee. In recruiting participants for the training, we employed a “voluntary application system” to identify motivated employees seeking personal growth by acquiring knowledge and skills useful in their work and broadening their global perspectives through observation and firsthand experience in the United States.
As part of our efforts to pass on specialized skills to employees, we hold seminars with various manufacturers to enhance product knowledge, including practical training in replacing blades on power tools sold by Joyful Honda and demonstrations of cultivator operation. Through these initiatives, we seek to pass on specialized skills and maintain and improve service quality.
In terms of cooperation with local communities, we held 127 events during the year, such as the “JOYFUL Machi Fes (Town Festival)” and “Bosai (Disaster Prevention) Days,” and concluded three new disaster prevention agreements to strengthen cooperation with local customers and local governments and increase our presence.
As for environmental initiatives, we promoted the use of renewable energy in our stores to realize a decarbonized society and reduce the risk of fluctuations in energy prices. In addition to the rooftop solar power generation systems and storage batteries already in full operation at 11 major stores, we began supplying electricity via a solar carport (power purchase agreement model) installed in the parking lot of the Joyful Honda Chiba Newtown Store in July 2025. In the following consolidated fiscal year, a large-scale solar carport began operations at the Joyful Honda Utsunomiya Store on July 1, 2026. Through the use of renewable energy, we aim to reduce greenhouse gas emissions by 70% from the level in the fiscal year ended June 2013 by 2030 and achieve carbon neutrality by 2040.

 

• Conclusion of basic agreement on business integration with ARCLANDS CORPORATION
In April 2026, with the aim of strengthening our business foundation and maximizing business synergies in the home center industry, we concluded a basic agreement with ARCLANDS CORPORATION on business integration through the establishment of a joint holding company (share transfer). Following the business integration, the two companies will hold detailed discussions on reducing purchasing costs and improving profitability through joint procurement, improving delivery efficiency through shared use of logistics networks, and consolidating and streamlining back-office functions.
Synergies expected from the business integration are as follows.
　・Collaboration in Product Development and Procurement 
　・Integration of Customer Base and Marketing Functions
　・Sharing of Store Development and Operational Expertise
　・Optimization of Business Infrastructure
We will focus on creating strong integration synergies by combining the strengths of both companies and leveraging economies of scale, with the aim of fundamentally reforming our earnings structure and maximizing corporate value.

 

As a result, net sales for the consolidated fiscal year under review were 132,817 million yen; operating profit was 8,732 million yen; ordinary profit was 9,954 million yen; and profit attributable to owners of parent was 9,002 million yen.

Sales of construction materials, hardware, tools, paints, work supplies, and other related products remained solid as we steadily captured demand from professional customers, an area we have been strategically strengthening. In addition to contributions from new Hondaya and Joyful Honda Shizaikan stores, the rollout of new store formats incorporating agricultural and horticultural products helped boost sales through highly specialized product lineups and services. In addition, amid growing concerns over increases in crude oil prices, international logistics costs, packaging material prices, and other costs as tensions in the Middle East intensified from March to June, concerns about product shortages and future price increases drove purchasing demand, particularly for petroleum-derived products. By thoroughly securing inventories of strategically selected key products, the Joyful Honda Group was able to mitigate to some extent the downward pressure on customer numbers and the number of items purchased during periods of product shortages and rising prices. In addition, against the backdrop of the 2027 air conditioner issue* and a sharp rise in copper prices, demand increased sharply for air-conditioning equipment, piping materials, electrical materials, related tools, and installation work, making a significant contribution to sales.
On the other hand, there was a trend toward selective purchasing of some discretionary items reflecting consumers’ tendency to economize.
Accordingly, net sales in the housing segment for the consolidated fiscal year under review were 75,195 million yen.
* 2027 air conditioner issue: From April 2027, the government’s energy efficiency standards will be raised significantly, meaning that many current low-priced entry-level models will no longer be able to be manufactured or sold.

Sales were firm as we successfully catered to everyday shopping needs, mainly for daily necessities such as everyday goods, household items, and healthcare supplies. We also placed priority on securing stocks of daily necessities, responding to concerns about rising product prices and ensuring stable supply, thereby helping to capture demand for essential products.
With regard to pet products, new stores specializing in pet products performed steadily, and some existing stores were renovated to strengthen their specialization. As a result, we successfully captured demand, particularly for pet food and pet care products.
On the other hand, as in the case of housing-related products, there was a trend toward selective purchasing of some premium products and seasonal items reflecting consumers’ tendency to economize.
As a result, net sales in the lifestyle segment for the consolidated fiscal year under review were 57,622 million yen.

The Company plans to conduct a business integration with ARCLANDS CORPORATION through the establishment of a joint holding company by means of a joint share transfer. The financial forecasts have been prepared based on the Company’s current organizational structure.