Tsuruha Holdings Inc.

I would like to explain the summary of the second half of the fiscal year in May of 2024. Please take a look at the third page of the instruction manual. Here is the highlight of the budget. The sales volume is 5,157 million yen, and the annual cost is increased by 6.5%. The sales profit was 27.1 billion yen, and the annual return was 9.9%, which is a significant result. According to the business summary, the second half of the first quarter continued to recover the population, and due to the improvement in seasonal products, the sales recovery continued to recover by absorbing the minuses of COVID-related disasters. In addition, the recovery of cosmetics and food products has been seen to be improved in various ways due to the appropriate distribution and setting. The high-temperature heating cost, which was higher than the previous period, also entered the second half of the year, and the growth rate has finally increased in comparison with the previous year. Next, please see the details of the previous year's budget and planning budget. As you can see, sales growth and sales net profit have almost reached the planned value. The sales profit was 110.8% due to the speculation that the half-price ratio was the water and heat ratio. The market price and water ratio will be described on page 5. I will explain and explain. Next, please take a look at the 6 pages of the information on the sales of the 13-month existing store. It was a result of increasing the plan by 3.5% in addition to the number of paper machines. Due to the recovery of the population, the number of customers has been recovering, and the price of goods has risen due to the increase in the price of products. On the other hand, the number of sales has continued to be negative. Please refer to the information on the right side of the slide for different companies. Next, I would like to talk about the results of product discrimination. Please look at page 7 of the slide. First of all, we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number of prescriptions by pharmacies and pharmacies, and we have been growing our sales by increasing the number As for the OTC drugs, there was a rebound of the antigen test kits, but the sales of comprehensive anti-inflammatory drugs and painkillers have continued to improve, and the situation has continued to be tense in comparison to the previous year of sales. As for cosmetics, sales have been in the recovery phase due to the people's recovery and the removal of masks. It is a sales that exceeds the level before the coronavirus. Next, the daily stock price. The growth of PV products is significant, but the sales volume is slightly low due to the situation of the previous year. As for food, we maintain a high growth rate of 110% in the previous year due to the increase in sales of drink categories such as sake, nippai, and seisen, as well as the increase in the price. In addition, the flow of appropriate energy has improved the roughness. As for the other categories, it is at a level where the whole year ends due to the influence of the sale of masks. Please take a look at page 8. This is a comparison of the sales, growth, and water levels for each category compared to May 2019. I will not go into the details. Next, I will talk about the 9 pages of the document, the number of stores in Chouzai, and the results of the private products. The number of stores in Chouzai is 43 stores, including small businesses in Kamiki. The total number of stores was 880 at the end of the year, with a total of 30 stores closed and 13 stores open. This means that the total number of stores closed is 34%. In terms of PV, the total sales volume was 106.8%, which is the progress as planned. The private interest rate has also risen by 9.7%, and it rose by 0.2% from the previous year's 9.5%. Next, I would like to talk about the semi-annual expenses. Please take a look at page 10 of the document. In terms of human resources expenses, there has been an increase in the minimum wage from the spring base-up and October 1st. The previous year's interest rate was 106.8%, but it is almost within the plan, and I think that we are able to control it appropriately. As for the sales promotion fee, the previous year's interest rate increased by 114% due to the strengthening of the interest rate of the market. The previous year's interest rate increased by 103% and the increase in the increase in the increase in the increase in the increase in the increase in The cost of water heating was 114% in the previous year and the rise in the second half of the year was reduced. The cost of fire extinguishing was 109% in the previous year and the main cause was the increase in the number of outlets. The cost of other expenses was 112% in the previous year and the increase in the number of cashless outlets. Please take a look at the next page. This is page 11. This is the situation of the opening and closing of stores in each company and region. The total number of stores was 2,615, with the opening and closing of 69 stores, the closing of 44 stores, and the completion of 26 stores. Both the opening and closing of stores are progressing in a situation that is higher than expected. The situation for each region is shown on the right-hand side of the slide. Next, let's take a look at the situation for the balance sheet. Please look at page 12. First, regarding the balance sheet, it increased by 1.8 billion yen at the end of last year's budget to 5,500.6 billion yen. As a special case, in the first half of the year, The company has received an additional income of 11 million yen, which is 11.17 billion yen. As a result, there is a minus of the original budget. The other增減 is due to the增減 of the U.K. state-owned property assets due to the sale and sale增減. As for the other增減, it is as described. Next is the situation of the cash flow on page 13. I will explain in detail, but the remaining amount of the cash flow at the end of the year is 658 yen. This concludes my explanation. In addition, the appendix on page 20 and below contains other data, so please refer to it. Next, I would like to explain the medium-term management plan and the implementation of the current period. Thank you for your attention.

I would like to explain the medium-term management plan and the implementation of the current period from Tsuruha Holdings Inc. First, I would like to explain page 15. From May 2023 of the previous year to May 2025 of the next year, we have set this as a phase of revenue improvement and have focused on five key strategies. Half of this three-year plan has passed since the end of the second quarter of this year. Since it is just the beginning of the period, I will report the current status including the evaluation. First of all, it will be a store strategy. In May 2025, we aimed to improve the performance of 2750 stores, dominant stores, and store systems. This is the current situation. The number of stores is expected to reach 2,651 stores by the end of this year. In that case, we will need 99 stores in the next fiscal year. Normally, we have about 60 to 70 stores, so there is a slight possibility that the number of stores will be divided in numbers. There is a possibility of short sales of about 10 to 20 stores. Regarding this branch, there were cases where the adjustment of the branch was very difficult due to the high cost of construction costs in recent days. In such a case, the promotion of scrap and build, the bottom-up of existing points due to remodeling, Also, we believe that the improvement of profits by our own properties has progressed. Currently, our group maintains the top share of shares in Hokkaido and 10 other cities in the same prefecture. We believe that the overall sales of the medium-sized store can be achieved by raising the existing stores. However, it is also true that we are behind the progress of the 2750 store plan, so we have added a triangle to this evaluation. The second is the long-term investment strategy. The goal is to raise the long-term investment sales to 14 billion yen by May 2025. The sales target is currently progressing as planned. We are focusing on closing down drugstore stores, By using the prescription delivery and reservation system, which we are still doing, we have increased the number of prescriptions by improving the convenience of the patient. Currently, the number of prescriptions has increased by about 111%, but if we can maintain this number of prescriptions, our sales goal is to achieve it next year. Since we can't avoid the downfall of the long-term revenue and the downfall of the interest rate, we will continue to lower the interest rate, but we will continue to increase the number of customers and the increase in the number of customers, and we will continue to increase the number of customers and the increase in the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, and we will continue to increase the number of customers, By increasing the profitability of the existing stores by 1 store, we can see the sales achievement of the medium-sized stores. This evaluation is in line with the progress. This is the 16th page. Next is the PB strategy. In May 2025, the sales efficiency of PB products will be 12%. We are working on the development of our brand's classicism and co-development with major manufacturers. We are developing products that are both valuable and affordable. Due to the high demand for raw materials, the development of new products has been delayed, There was also a sale of existing products due to the price increase. There was also a time when the increase in SKU numbers was not as planned, but the introduction of existing products to each group has progressed dramatically over the past few years. In addition, the development of existing products has gone well and sales have increased. Therefore, the number of SKUs has not increased more than the original plan, but sales goals have been steadily improving. In addition, in recent years, the development of new products of food PV has progressed, and sales have improved. It is expected that the new products of food will be available in the future, so we are looking forward to further improvement. This is also evaluated in accordance with the progress as planned. Next is the DX strategy. Each department mainly uses the system of the company. The progress is as planned, and we will soon reach our goal. This has led to the efficiency of the work and analysis of each department. In addition, we have focused on increasing the number of downloads of point card apps, The number of downloads is 8.6 million, which is almost as expected. We are aiming for one-to-one countermeasures based on the data of each customer, and we are aiming for countermeasures that can be dealt with individually. In June, we introduced our own cashless payment service, HAPPAY. Of course, this is for the improvement of delivery frequency, but we are introducing it for the purpose of preventing other companies from paying cashless payments. To be honest, we are planning to increase sales by 5% at the end of this year, but it is still less than 1%, so it is a fact that we are much later than we planned. We will aim to expand while adding new features and adding new features in the future. There is a delay in the schedule for the release, but the whole DX was originally scheduled to be installed on the company's internal board, download the app, and maintain customer data, so the overall image is in progress. Finally, it is a financial strategy. In May 2025, we are aiming for a 5% operating profit and a 10% ROE. There was an abnormal rise in electricity prices, so there was a very unclear difference, but recently it has calmed down considerably, so from the current results, we have judged that it is in a state of progress that can be achieved sufficiently, so we have evaluated it as a round of progress. These are the five key strategies. Please see page 17. Here are the main topics related to the sustainable business of the medium-term business plan. The progress status is as described, so please check it. In June, we talked about human capital business. In September, I have published the joint report on this. Please look at page 18. This is the two-year plan for this year. At this point, we have decided to postpone it. The reason is that the third quarter, especially the third quarter, Last year, due to the COVID-19 pandemic, there was a very explosive demand for test kits and general medicine. This year, there is also a reaction. To be honest, it is very hard to read. This is when the third quarter is over. I would like to review the plan again and make a decision. The last page is page 19. This is the opening plan. It is a plan for the end of the current period of 2,651 stores, but this is expected to be in line with the plan. That's all from me. Thank you very much.