Tsuruha Holdings Inc.

Thank you for joining us today. First of all, I would like to introduce today's participants. This is Jun Tsuruhwa, the CEO of Tsuruhwa Holdings Inc. I'm Hideaki Kirisawa, the executive director of the Board of Directors. I'm Ryutaro Miyake, the executive director of the Board of Directors. I'm Takamune Shibazaki, the deputy director of the Board of Directors. I'm Kei Wakabayashi, the budget manager. Next, I would like to briefly introduce today's materials and progress. This seminar will be held at the Zoom webinar. We will share the materials in the video, but you can also download them from our website, so please check them out. As of November 27th, Wilshire Holdings Inc. will be disbanded, and the third half of it will also be disbanded. With this, I would like to start by explaining the summary of Wilshire Holdings Inc.'s settlement. Next, I would like to explain the summary of Tsuruhaho Holdings' settlement from Miyake and the correction of the performance forecast. Finally, I would like to say goodbye. The deadline for completion is scheduled for 14.30. Thank you for your cooperation.

Hi, I'm Shibazaki. Thank you for having me. I'd like to start by talking about the 3rd quarter fiscal year before the integration of the U.S. Department of Commerce. This is a PowerPoint document, but please take a look at page 3. First, I'd like to start by talking about the foreign exchange. In the third quarter, the temperature was high in the first half, and the progress of the season was a little slow. On the other hand, influenza had an impact on seasonal products and products with a faster expansion than in the previous year. In the third quarter, we have continued to expand our profits from scale to scale. According to Welsha 2.0, which is a financial policy, we are making various progress in various measures. The sales volume is 1.103 billion yen, and the operating profit is 27.5 billion yen. In the third quarter, the operating profit was increased by 120.6% in the previous year. As for the profit margin, it is still on the verge of improvement, but this year we have continued to improve the value of the profit, so we have evaluated that we have achieved results for such goals. On the other hand, since the company's Pupure Himawari's Noren's incineration amounted to about 5.6 billion yen, it is in the current position as a market-level net profit that belongs to Oyagashi Co., Ltd. After joining the group in 2021, Pupure Himawari worked to improve the performance through PMI, but the return to the original plan was greatly reduced this year. Next is the fourth page. I would like to explain the performance of each trial period and the monthly sales growth rate of existing stores. In the 3-month period of the 3rd quarter, we saw an increase and decrease in sales and revenue. In terms of sales and revenue, there was a slight increase in sales due to the reactionary effect of the previous year's wind, such as medicines and so on. On the other hand, in terms of long-term sales, there was a high increase in the supply of chemical drugs, which was slightly lower than the previous year. On the other hand, when it comes to sales, the growth of sales compared to 2019 seems to be a little low, but this is because of the impact of M&A on the quarter of last year, so it is not a big trend from 2019. On the other hand, in terms of expenses, we continue to control mainly human resources. This time, temporary expenses have also been generated, but even so, it is in a situation where it contributes to profits. In terms of the existing growth rate in the lower section, it is 2.8% in the third quarter of three months. As of November, the spread of the influenza has been improved by 1.1% in the second quarter. In terms of the impact of tobacco, the impact has gradually become smaller since last year, but in the third quarter, the impact on goods has reached minus 0.6 points. Next, we will move on to page 5. I will explain about the sales value of each item. In terms of sales value, as I explained earlier, the contribution to M&A in the previous year, and the growth of long-term funds in the previous year, we are growing at 106.1% per year. In terms of categories, food prices have increased in the short term and the effect of penalties have increased by 107.3% in the previous year. On the other hand, in terms of revenue, there has been a reduction in revenue, but the growth has been maintained by the acquisition of small and medium-sized businesses, and the growth has been increased by 110%. In terms of sales, it has increased by 22.8%. On the other hand, in the case of Arari-Riitsu Inc., the decline has exceeded the previous year. However, compared to Kamiki Inc., the width of the storage is a little lower. In this regard, Next, on page 6, we will move on to the half-price. In the third quarter, the previous year's cost was at 105.8% and the control continued to rise. In particular, in terms of human resources, we are advancing the optimization of the productivity of the production line while introducing a system of improvement. Even in terms of sales ratio, we are improving by about 0.3 points. On the other hand, regarding other items, there is also the fact that we are putting in a mechanism for the recognition and optimization, and there is also a temporary deficit, so the deficit has increased here, but this is a situation in which we are progressing within the expectations of the agency. Next, let's move on to page 7. This is the results of the audit department. In terms of sales, the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to the increase in the number of units due to In terms of the number of closures, it was 23 in the previous year. Compared to the past, it has been relatively suppressed. In terms of this, there is also a improvement in the quality of production, and we are reviewing it according to the number of closures. In terms of the closure rate, it has improved by 77.9% compared to the previous year. Next, on page 8, we will look at the status of the opening and closing of the stores. In total, 46 stores have opened and 56 stores have closed. This year, in order to improve productivity, we have not completed the order of the stores, but the closing of the stores is in line with the original plan. On the other hand, in terms of delivery, we have implemented a delivery of 210 stores. Currently, there are 6 stores for drug and food stores, and we are looking forward to delivering 10 stores in the future. As the delivery increases, the harvest rate increases, and there is also a survival effect. Categories other than food, such as children, health and beauty, and so on. We are also seeing the growth of these categories. Last but not least, let's move on to page 9, which is the external account of the company. As I explained earlier, we are also in the process of approval of the Urecia Pharmaceutical Group, which is the center of the company. On the other hand, as I mentioned earlier, Pupure Himalaya is currently at a loss of 4.8 billion yen at the business level. However, we have improved our profits by about 300 million yen compared to the previous year, so there is still room for improvement, but we would like to continue to focus on it. As of December, we will continue to improve and convert our profits. In addition, we will continue to integrate as a new Tsuruha Group, and we would like to contribute to improving group value. That's all. Thank you very much.

Now, I would like to talk about the results of the third quarter of the year in February of 2026. Please note that the number of Wellshare Holdings Inc. that I explained earlier is not included in the description part of the toolha holdings. Please look at the next page. The calculation will be the highlight. The sales value is 8,333 billion yen. The operating profit is 40.5 billion yen. Existing store sales increased by 2.4% the previous year. The cost of products and food continued to rise. The sales profit was affected by the fact that we were able to properly control the return cost, and it was in the form of exceeding the planned value. From the end of the previous year, we have changed the settlement period to the end of the year, and since the same period of the previous year has a number of differences, the previous year fee is not listed. Please see the following page. February of 2026 will be the third quarter of the settlement period. As for sales, it was almost as planned. In the case of rough interest rates, it resulted in a decline in the previous year due to suspicion of OTC drugs, continuous masks, etc., and the reduction of infectious disease prevention drugs. As for the half-payment, it continued to be reduced to As a result of thorough management, the budget spending was reduced to 40.5 billion yen in operating profits and the operating profit ratio was increased by 4.9%. Regarding the current standard interest rate, as announced on May 16, 26.9 billion yen has been allocated to the stock market. As for the previous year, the reference figures include the 3 months of the 4th quarter of May, 2024, after the settlement of the settlement, and the 6 months of the 2nd quarter of February, 2025, including the 9 months from February 16, 2024 to November 15, 2021. Please see the following page. Shihanki sui ni narimasu. Arari ritsu ni kanshite wa, kessanki henkou ni tomonau, sokyu nebiki no tsukizure ni yori sa ga dete iru mono no, chozai zentai to shite wa hikisuzuki arari wo hikiageru jokyo ni arimasu. Mata, hankan hi wo tekisei ni kontrol shite iru tame, However, due to a decrease in the operating profit, the operating profit has been doubled from the previous year. As a result, the operating profit was 4.4% in the third quarter of the third quarter. Please see the following page. This is the number of sales in the previous year of the existing point of 13 months. Please see the following page. Here are the results of the product selection. The sales have been growing, with the increase in the number of prescriptions along with the opening of the pharmacy. The sales have been growing, with the increase in the number of prescriptions along with the opening of the pharmacy. The sales have been growing, with the increase in the number of prescriptions along with the opening of the pharmacy. The sales have been growing, with the increase in the number of prescriptions along with the opening of the pharmacy. The sales have been growing, with the increase in the number of prescriptions along with the opening of the pharmacy. In addition to the impact of the withdrawal of make-up brands, some of the best brands of the previous year had some problems, but the basic cosmetics have been improving smoothly, and we recognize that there is a tendency to recover. As for daily shopping, we continue to improve it by increasing the amount of medical detergents, kitchen detergents, and so on. In terms of food, we are focusing on rice, and we are also focusing on other staple foods such as coffee and frozen food and sweets, and we are moving in the same direction until the second half of the year, and the cost of construction will continue to rise. In addition, the number of COVID-19 cases, such as masks, has continued to decrease, but there is also a decrease in the number of people on foot. Please see the next page. This is the results of the long-term stock market. has 48 stores, 10 stores, and 38 stores. At the end of this quarter, the number of stores will be 1,005. As for the number of orders, the number of orders has increased as the number of orders increases, and the annual cost is 108%, which is a good number. The increase in sales of long-term goods has led to an increase in the overall turnover rate. Please see the next page. This is the result of the PB product. The PB was 11.8% in terms of sales, and increased by 0.4 points from 11.4% at the end of the previous year. The sales volume is growing steadily, and the sales volume is about 110% of the previous year. In December, we announced at Togo Go Vision that we are preparing for the release of our new private brand, KALADA TO KURASHI NI PLUS ONE. Please see the next page. This is a summary of the return on investment. As for the human resources, the progress is as planned, and sales have decreased as productivity improves. As for the return on investment, sales have decreased by 0.4% as a result of detailed revision such as continuous leaflets and bans. In terms of land value, the sale price has decreased due to the impact of the increase in the number of self-owned buildings and the loss of store closures. As for the water supply and heating expenses, there is no particularly big topic, and the sales price has increased with the rise of the electricity bill. As for the cost of fire extinguishing, there is no big movement and it is roughly doubled. As for the other expenses, in the previous period, there was a form of special cost in accordance with the year-end adjustment, but in this period, the combined related cost is formatted, so the sales cost is doubled. As a result, the sales cost and general management cost were minus 0.9 points compared to the previous period, and the sales cost was 25.2%. Please take a look at the next page. Here is the store closing status. Store 78, Closed 46, 32 stores in total. The number of stores at the end of the season is 2,690 stores. There are no other special cases. Please see the next page. This is a summary of the balance sheet. Regarding the balance sheet, the end date has been increased a little due to the impact of the holiday, but there are no other timely events. Please see the next page. Next, I will explain the correction of the forecast for long-term connection performance. was merged with Welshire Holdings in December, so at the end of the year, in addition to the conventional Tsuruha Holdings for 12 months, it will be a trade-off that will add up to 3 months of Welshire Holdings' fourth quarter payment period. In addition, it will be a trade-off that will add up is expected to generate 5.5 billion yen in incineration costs in three months, and to generate a special profit of 1.5 billion yen with the acquisition of Welchia Holdings Inc. In addition, regarding the amount of incineration, at the moment, it is expected that the amount of incineration Please note that the impact of the incineration of the incineration fee will be a miscalculation. As a result, regarding the performance forecast for the end of this year, the sales value is 4,530 billion yen, the operating profit is 633 billion yen, the operating profit rate is 4.4%, and the current standard profit is 3.95 billion yen. Please see the next page. Next, I would like to explain the revision of the final disbursement. Tsuruhara Holdings Inc. is said to carry out a more stable disbursement than ever before. With the increase in the number of shares and the change in the interest rate as a result of the integration, we will consider not only the success of disbursement, but also from various perspectives, and Welcher Holdings Inc. for the end-of-year disbursement. We have adjusted the disbursement budget to 10.4 billion yen per person and 23 yen per share. This will make the annual 1.5 billion yen of disbursement fund 49.7 yen, and the total amount of disbursement will be 20.7 billion yen. We will continue to have a stable disbursement as our basic policy, but regarding the policy for the coming year, we will start the mid-term management plan, which is scheduled to be published in April. Please take a look at the next page. Next, I would like to talk about the change in the shareholding system for shareholders. With the five divisions of Tsuruha Holdings Inc., the shareholding system required more than 500 shares, but in order to promote the use of our stores and to improve the attractiveness of our shares, will increase the amount of gift tickets to more than 500 or 1,000 owners and increase the amount of gift tickets to a large extent. In addition, regarding the long-term holdings, we have taken into account the fact that the ownership period of Welchia Holdings Inc. before integration will be reset, and we have cancelled it this time. In addition, regarding the holdings such as points that have been held at Welchia Holdings so far, In the early stages of integration, we have not adopted this system because of various risks such as the fact that it will be very cumbersome to do it without waiting for the integration of hosledges and organ systems, and tent operations. In the same way, we have also abolished the U-type card. In the future, we will continue to consider the form that can convey the charm of our company by aiming for the form that is in line with the expectations of more shareholders. As for the details, we have posted them on our website, so it would be nice if you could refer to them. This concludes my presentation. In addition, for data such as company records, please see the appendix below page 24. Thank you.