Medium-Term
Management Plan

To realize our long-term vision, we currently recognize the following four issues.

While the Company is supported by those who are with relatively high sensitivity and want service of high quality, including the store environment and customer service, especially among Generation Y, the appeal to those in their teens and 20s is insufficient.
On the other hand, even for those in their teens and 20s, per-customer spending is at a high level, ranging from mid-10,000 yen to the mid-20,000 yen. By expanding this age segment, we believe we can expand our business while maintaining high sensitivity and highly added value.

The Company’s main brands are concentrated on traditional and conservative tastes, and there are still domains that we haven’t fully captured, such as casual, mode, street, and feminine.
We see the two issues of age and fashion tastes as evidence that the Company has plenty of room to grow even within the domestic apparel market.

In offering lifestyles with high sensitivity, the area that the Company has been able to propose is still limited to fashion. In recent years, we have been working on outdoor activities, golf, wellness, and others, however we have yet to reach the point where we can offer complete lifestyles. Our overseas business remains centered on Taiwan, and while we have begun opening stores in major Tier 1 cities in mainland China such as Shanghai and Shenzhen, a full-scale expansion is yet to come. This is another area of potential growth in the future.

There is still work to be done that involves a variety of infrastructure investments, including review of the core product management system with a view to the medium to long term, digitization of product procurement, capital expenditure to promote OMO, and reorganization of distribution with an eye on future business expansion. To achieve our long-term vision, we must make appropriate investments under the Medium-Term Management Plan.

The theme of the new Medium-Term Management Plan, which is to resolve these issues and serves as a starting to achieving the long-term vision, is “To Become a high-sensitivity, high value-added Group with global scope and Japanese pride”

Our financial targets for the fiscal year ending March 2029, the last fiscal year of the period of the Medium-Term Management Plan are as the below.

The Medium-Term Management Plan is structured around three key strategies:
I.Become the #1 brand for highly sensitive customers’ satisfaction,
II. Spread highly sensitive customers around the world, and
III.Create new contact points with highly sensitive customers.

In the previous Medium-Term Management Plan, our domestic existing businesses significantly exceeded initial expectations, achieving standalone sales of ¥154.1 billion. This level had originally been set as the target for the final year of our long-term vision, demonstrating the strong potential of our domestic existing businesses.
Under the current Medium-Term Management Plan, we will continue to drive group-wide growth by expanding sales and improving gross profit margins in our domestic existing businesses.

■ Sales Growth
• Expanding sales through higher average spending per customer
We will drive sales growth by increasing average spending per customer. Over the past three years of rapid inflation, we have successfully grown sales while raising average spending per customer without reducing the number of customers. Through pricing revisions accompanied by enhancements in product quality, we aim to achieve both higher average spending and increased customer traffic over the next three years.
• Expanding customer touchpoints through new store openings, relocations, and renovations
In our store strategy, in addition to opening new stores, we will further accelerate relocations and renovations. Under the previous Medium-Term Management Plan, standalone sales reached 130.1% of the level at the end of the prior plan period. Of this increase, 13.8 percentage points were driven by new store openings over the past three years. Furthermore, relocated and renovated stores achieved approximately 118% year-on-year sales growth, significantly outperforming existing store growth and serving as a key driver of revenue.
For relocated and renovated stores, we benefit from favorable location and rent conditions, while also gaining a clear understanding of the attributes of current customers. By addressing issues in the existing store environment through optimized layouts and interior design, we are generating further increases in purchasing customers.

■ Improvement of Gross Profit Margin
• Enhancing gross profit margin through the utilization of UA3.0
To improve gross profit margin, we will make effective use of UA3.0, our core product management system that began operation in April 2025. By leveraging production-related data, we will visualize the cost structure of our products and gain a more precise understanding of performance by business segment.
Based on these insights, we will select optimal sourcing partners that ensure both stable procurement and cost efficiency without compromising quality, thereby reducing the cost ratio.
In addition, we will optimize inventory allocation to improve sell-through rates and inventory turnover. Taking into account brand characteristics, seasonal progression, and sales initiatives, we will establish standard inventory levels for each store and refine them through continuous hypothesis testing and verification on a seasonal basis.
By ensuring that the right products are available in the right locations, we will minimize lost sales opportunities, improve sell-through rates, and enhance gross profit margins. Higher sell-through rates will also reduce the volume of aged inventory sold through outlets, contributing to greater stability in gross profit margins.

Under the current Medium-Term Management Plan, we aim to expand our global footprint by increasing store openings in China and Taiwan.

In China, where demand for high-end products is strong, we plan to expand our high-end brands—such as UA, BY, and Drawer—primarily in Tier 1 cities. Over the three-year period, we aim to open 8 stores and achieve sales of ¥3.1 billion.
In Taiwan, where demand is strong for brands such as GLR and CITEN, we plan to open 12 stores and target sales of ¥2.7 billion.
In other regions, we aim to generate ¥1.2 billion in sales through franchises, wholesale channels, and global e-commerce, bringing total overseas sales to approximately ¥7.0 billion.
We position this Medium-Term Management Plan period as a foundation-building phase for full-scale global expansion, with the goal of achieving profitability in the next Medium-Term Management Plan.

To expand into new business domains, we will broaden our business scope to include lifestyle areas aligned with the UNITED ARROWS aesthetic, apparel with different tastes from UNITED ARROWS, and high-end apparel, with M&A also considered as a strategic option.

The transition to a holding company structure is intended to facilitate these initiatives.
The name “TABAYA Holdings” reflects several intentions:

“TABAYA” is the Japanese interpretation of “UNITED ARROWS” (束矢),
it clearly conveys an organizational structure that brings together multiple businesses,
a Japanese-origin name is advantageous as we further expand globally, and
not directly using the UNITED ARROWS name enhances the effectiveness of M&A.

Without being constrained by the existing values of the UNITED ARROWS Group, we will attract a diverse range of brands based on the standard of high sensitivity and high value-added. Through this approach, we aim to position TABAYA Holdings as a leading Japanese group that offers high-sensitivity, high value-added lifestyle propositions.

Under the new Medium-Term Management Plan, we have established a human resources vision of “Make UA sales positions a profession to be proud of”
This concept is not limited to sales roles; it applies to all functions, including e-commerce and logistics. Every role plays a vital part in creating customer value. By enabling each employee to articulate the meaning and value of their work in their own words, we believe our corporate culture will become one that is imbued with greater pride. This, in turn, will serve as a source of our competitive advantage.

Specifically, we place strong emphasis on linking productivity with compensation. Under the new Medium-Term Management Plan, we aim to achieve comparable rates of growth in both gross profit per employee (gross profit productivity) and average annual employee compensation. This reflects our strong commitment to enhancing productivity across the entire workforce and ensuring that the resulting gains are appropriately returned to our employees.
In addition, continuous investment in improving employee engagement is a key initiative. Through our annual employee surveys, we identify priority areas, and since the COVID-19 pandemic, the main drivers have been “dialogue with management,” “management policies,” and “investment in training and development.” We interpret this as evidence that employees have a strong interest in the Company’s direction and their own growth opportunities, and that they are motivated to actively shape the Company’s future.
Furthermore, our analysis over the past five years has confirmed a causal relationship between engagement and productivity. Specifically, a one-point improvement in engagement is associated with an approximately 0.8-point increase in productivity in the following year. In other words, investment in people enhances engagement, and higher engagement leads to the creation of financial value.
Investment in human capital fosters business growth and a corporate culture marked by integrity and professionalism, while also cultivating a sense of pride among employees. This pride is reflected in value creation across all functions—including merchandising, sales, finance, and IT—and helps build trust with stakeholders. We position this trust as a form of non-financial capital, akin to our brand, and will leverage it to drive future cash flow growth.
The foundation of our human capital management lies in the alignment of “sound management” and “sound HR practices.” By placing employees at the center of management, we will achieve sustainable enhancement of corporate value.

Under the current Medium-Term Management Plan, we will promote an integrated approach to customer acquisition, OMO, and CRM in order to deepen relationships with our high-sensitivity customers and build a stable earnings foundation.

First, we will expand our customer touchpoints. By leveraging data and AI to precisely target our core high-sensitivity customer segment, we aim to efficiently increase store traffic as well as EC sessions.
Next is OMO. To deliver a seamless experience in which customers can reliably purchase the products they want, when they want them, we will optimize inventory allocation using UA3.0. This will minimize lost sales opportunities while reducing stockouts and excess inventory. Even in cases where an item is out of stock in-store, integration with online channels will enable purchases, thereby preventing missed sales opportunities and enhancing the overall purchasing experience.
Finally, CRM. By leveraging the purchasing and behavioral data of the 1.64 million high-sensitivity customers who are members of UA Club, we will strengthen personalization, increase visit frequency and spending per customer, and maximize customer lifetime value.
By driving this cycle of customer acquisition, OMO, and CRM, we aim to expand our active membership base from 1.64 million to 2.0 million and achieve member sales of ¥120.0 billion, thereby establishing a stable and growth-oriented earnings foundation.

Over the next three years, we will significantly increase investment in human capital as the primary source of future cash flow generation. Using the cash flow generated from these investments, we will both enhance shareholder returns and further expand capital expenditures for business operations.

Based on projected operating cash flow of ¥32.0–33.0 billion over the three-year period, together with cash and deposits on hand at the end of the fiscal year, we plan to allocate ¥11.6–12.1 billion to investments in physical stores, ¥1.0 billion to EC and OMO-related initiatives, and ¥3.0–3.5 billion to infrastructure investments such as logistics, while returning ¥10.0–12.5 billion to shareholders through dividends and share buybacks.
During this Medium-Term Management Plan period, we will also take a more proactive approach to M&A as a means of business development. Funding for M&A will be primarily financed through debt, with a maximum borrowing capacity of up to ¥36.5 billion, based on a target D/E ratio of 1.0. This approach will enable us to pursue M&A opportunities while maintaining financial soundness.