10/14/2025

speaker
Company Representative
Presenter

I'd like to introduce you to the second quarter of the fiscal year in February of 2026. Please take a look at the third page of the instruction manual. Here are the highlights. The sales volume is 5,578 billion yen, and the operating profit is 284 billion yen. Existing store sales increased by 2.1% in the previous year, and the paper machine budget was slightly lowered. The cost of cooking and cooking materials continued to rise. The sales profit was affected by the proper control of the return cost, and it was in a position to exceed the planned value. Since the end of the previous year, we have changed the settlement period to the end of the year, and since the previous year and the same period have differences in the number of days, the previous year fee has not been recorded. Please see the following page. February of 2026 will be the second half of the settlement period. The sales slump was almost as planned. As a result of continuous thorough management of the half-payment fee, the budget has been deducted, and the operating profit of 28.4 billion yen and the operating profit rate of 5.1% have been exceeded. As announced on May 16th, the total net profit of 20.3 billion yen has been increased to 20.3 billion yen. As for the previous year, as a reference figure, we have recorded the figures for the first three months of the first quarter of the second quarter of the second quarter of the fourth quarter of the fifth quarter of the fifth quarter of the fourth quarter of the fifth quarter of the fifth quarter of the fourth quarter of the fifth quarter of the fifth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the seventh quarter of the seventh quarter of the sixth quarter of the seventh quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth quarter of the sixth This is the market value of the product. The market value of this product is 30.3%. In addition, as a result of the proper control of expenses, the cost of half-payment is the same as the previous year, and as a result, the sales profit rate is 5.6% in the third quarter of the second quarter of this year. Please see the following page. This is the number of sales in the previous year of the existing 13-month point. Please see the following page. Next, I would like to talk about the results of the product classification. During the first half of the quarter, there was a slight drop in the results of the first half of the quarter. I am very sorry about that. The chart on the left side of the screen shows the results of the previous quarter, and the chart on the right side shows the results of the current quarter. We have adjusted some of the goods and products, including sales. Please see the next page. This is the result of product discrimination. As for the products, the increase in the number of prescription tablets from the pharmacy to the department store has increased, and sales have increased, and the cost-effectiveness has increased by 13.5%. Regarding the OTC drug, it is a form that breaks the previous year as a result of the reaction of the previous year's corona epidemic. In addition to the impact of the withdrawal of make-up brands, cosmetics have become a permanent result due to some defects of the previous year's high-end brands. The cost of daily goods has decreased significantly due to the delay in the production of seasonal products for the summer, which has continued to improve with the large-scale expansion of medical detergents and kitchen detergents, etc. In terms of food, rice is the center of attention, and other products such as coffee, frozen food, and sweets are also on the rise. In addition, the number of COVID-19 cases, such as masks, has continued to decrease. Please see the next page. The total number of stores in Chouzai has increased from 35 stores in Kaikyoku, 5 stores in Heikyoku, and 30 stores in Junzou. The total number of stores in Chouzai has increased from 997 stores at the end of this quarter to 108% in the previous year. Please see the following page. Here are the results of the PB products. Pb is 11.7% of the total cost and increased by 0.3 points from 11.4% at the end of the previous year. Please see the next page. This is the division of the half-sale cost. The human resources cost is progressing as planned, and sales cost is decreasing as productivity improves. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of flyers and penalties, the sales cost has decreased by 0.4 points. As a result of the detailed review of There is no specific topic regarding the water supply and heating costs, and the sales cost is doubled with the rise in electricity bills. The sales cost is also doubled, with no significant movement regarding the cost of food and drink, and the sales cost is also doubled. As for the other expenses, the sales cost has decreased because there was a form of special cost associated with the year-end adjustment of the previous period. As a result, the sales cost and general management cost were minus 0.8 points compared to the previous year, and the sales cost was 25.2%. Please see the next page. This is the situation of the opening and closing points. The opening point was 53, the closing point was 35, and the total number of stores was 18, and the total number of stores at the end of the quarter was 2,676. Please see the following page. This is the summary of the balance sheet. Regarding the balance sheet, the end of the month is slightly increased due to the holiday, but there are no other special events. Please see the following page. There are no special events regarding the cash flow, so please see the next page for details. Finally, I would like to explain the future schedule for integration. First of all, in December, we will announce the vision for the management after integration, with stock exchange power. Here, we will focus on the meaning and direction of integration, and we will clearly show what kind of future both companies have in mind. In December, I think this is a great opportunity to explain to you what Togo has finally taught us in earnest. On the other hand, regarding financial strategies and quantitative goals, we will wait for the numbers to be confirmed in the long-term calculation and assess both synergies sufficiently. At the same time as the long-term calculation announcement in April of next year, will be launched as a new medium-term management plan. In January, the completion of the T.O.B. by E.ON and the announcement of the third quarter's budget will be announced, and we will tell you the progress step-by-step. The integrated schedule is a step-by-step process from the sharing of vision to the management of financial strategy. As it is the largest business integration in the past, it is important to show the growth scenario based on a certain basis rather than showing the numbers quickly. This is the end of my explanation. For data such as company records, please see the appendix after page 16. Thank you for your attention.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

-

-

Investor presentation