Arcs targets JPY 1 trillion sales, 8% ROE by 2033

Arcs Company, Limited announced a new growth investment plan targeting consolidated net sales of JPY 1 trillion or more and a return on equity (ROE) of at least 8% by the fiscal year ending February 28, 2033, coinciding with the company's 30th anniversary. The strategy emphasizes effective investments in new store openings, transforming existing stores into "Super ARCS" through remodeling, and increased focus on M&A. System investments will also update the core system for enhanced ease of use and efficiency.

The FY2026-FY2033 investment plan projects total cash inflows of JPY 380-400 bn, comprising JPY 250-260 bn from operating cash flow and JPY 50-60 bn from financing cash flow, in addition to JPY 80 bn in initial cash and deposits. Outflows are allocated with JPY 240-250 bn for growth investments and JPY 50-60 bn for shareholder returns, aiming for JPY 90 bn in cash and deposits at the end of the fiscal year.

Key measures supporting the sales target include accelerating organic growth through store transformations and new openings, alongside incremental M&A growth. To achieve the ROE target, Arcs plans to correct profit differences among group companies, improve productivity via DX promotion, implement appropriate inventory management, and promote proactive shareholder returns with a target payout ratio of 40% and progressive dividends.