FY 2024 1Q

Financial Presentation

August 10, 2023
＜Cautionary Statement Regarding This Document＞

Forward-looking statements are based on the information available to Valor and its consolidated subsidiaries
when preparing this presentation. Various factors in the future may cause our actual results to be materiallydifferent from any future results expressed or implied by these forward-looking statements.

Key Points of FY24 1Q Financial Results➢ Summary- We posted a record high operating revenues, continuing on from last year.

- In the supermarket business, we opened Omihachiman store in April, andexisting store sales grew 2.8% YoY. Tachiya and Yaosen, which opened in
the previous fiscal year, also contributed to the sales growth.
In the drugstore business, existing store sales grew 5.9% YoY. Sales
increased and reached a record high, partly due to the consolidation ofcompanies made subsidiaries during the quarter, SHOWAFILM Co., Ltd. andUnidpack Co., Ltd.
- Operating income and ordinary income were the third-highest on record,
and net income was the fourth-highest on record.

➢ FY24 Forecast
・ ¥772.0 billion in Operating revenues, ¥20.5 billion in Operating income¥23.3 billion in Ordinary income, and ¥9.3 billion in Net income
attributable to owners of parent©2023 Valor Holdings Co.,Ltd.

2

FY2024 1Q Results➢ Record-high operating revenues.
➢ Gross profit rates improved, and operating income and otherincomes also increased.
(Yen in millions, except for EPS）

FY21 1Q

FY22 1Q

FY23 1Q

Results

Results

Results

Operatingrevenues

183,002

182,601

Operatingincome9,038

Ordinary income*Net income
attributable toowners of parent

FY24/6
Plan

Resultsvs. Plan

186,630

192,000

196,270+2.2%6,454

5,301

4,980

5,622+12.9%

9,485

7,263

6,040

5,380

6,245

+16.1%

4,644

3,796

3,096

2,780

3,453

+24.2%* EBITDA is calculated based on operating income + amortization (CF basis)

EBITDA*

13,258

11,113

10,310-10,647

EPS

86.50

70.69

57.66

-64.48©2023 Valor Holdings Co.,Ltd.

(Yen）

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Factors of Increase/Decreasein Operating Income➢ Gross operating income increased approx. ¥2.9 billion, partly
due to improvement in gross profit rates.
➢ Rise in utilities costs is approx. ¥300 million.
(Yen inmillions）

Increasein salescosts
Increase ingrossoperatingprofits

Increasein labor Increasecosts
in utility
costs

Increasein facility
costs

Increase inother admin.
costs

FY23 1Q
Results©2023 Valor Holdings Co.,Ltd.

FY24 1Q
Results
4

Operating Results by Segment➢➢➢➢

Supermarkets: Sales and income increased due to new store openings and strong existing store sales
Drugstores: Sales and income increased due to the growth in the dispensing and cosmetics divisions andhigher gross profit rates.
Home improvement centers: Sales and income decreased partly due to a slowdown in existing stores sales andlarger expenses regarding higher resource prices.
Sports clubs: Operating loss increased due to the inability to absorb the increase in the cost of sales, including
personnel and facility expenses.

Operating revenues
FY22 1Q

FY23 1Q(Yen in millions） Results

Results

Results.

Segment profits

FY24 1Q

FY24 1Q

FY22 1Q

FY23 1Q

YoY(%)

Results

Results

Results

YoY(%)

Supermarket
business

100,518

102,054

107,777

+5.6%

4,253

3,086

4,181

+35.5%

Drugstore business

38,01839,37041,947

+6.5%

630

789

1,155+46.3%

Home improvement
center business

32,21332,73232,413

△1.0%

2,092

1,968

1,437

△26.9%

Sports club business

2,386

2,447

2,371

△3.1%

△194

△225

△290

Loss
increased

Distribution-related
business

2,404

2,664

3,966

+48.9%

816

887

873

△1.6%

Others

7,058

7,360

7,793

+5.9%

632

492

59

△87.8%△1,775△1,698△1,795

6,454

5,301

5,622

Elimination or
corporate expenses

計182,601©2023 Valor Holdings Co.,Ltd.

186,630

196,270

5Supermarkets➢ Income level of approx. ¥2.3 billion higher than before the COVID-19
pandemic (FY2020 1Q).
➢ Gross profit rates improved from 27.7% to 28.1%.

SM segment profit
Analyses of 1Q results

70(factors of the change from the plan and from theprevious year)

63.0

60
50
42.5

41.8

40
30.8

Operatingrevenues(Yen in 100millions）

20

18.8

100

Operatingincome30vs. plan＋

Existing stores sales+2.8%.

YoY＋

1 new store, 9 renovated.

vs. plan＋

Gross profit rates improved.

＋

Increase in profits atTachiya, Shokusenkan
Taiyo and other SM groupcompanies in addition toValor Co., Ltd.

YoY※＋：increase, ▲：decrease, ±：in line with the plan

©2023 Valor Holdings Co.,Ltd.

6Drugstores➢

Income level of approx. ¥300 million higher than before the COVID-19
pandemic (FY2020 1Q).
Strong existing store sales (+5.9%), capturing demand for pharmaceuticals
and cosmetics, despite a slowdown in products related to the shift of COVID19 to Class 5.

(Yen in 100millions）

DgS segment profit
Analyses of 1Q results

1411.8

1210

11.5

8.6

7.8

8
6.3

(factors of the change from the plan and from theprevious year)Operatingrevenues➢＋

Existing stores sales+5.9%.

＋

Strong performance ofdowntown stores due torecovery of inbounddemand.

vs. plan＋

Improved profitability bycontrolling sales andfacility costs and investingin labor costs, including
wage increases.

YoY＋Gross profit rates improved
from 24.8% to 25.1%.

vs. plan

YoY

620

Operatingincome4※＋：increase, ▲：decrease, ±：in line with the plan
©2023 Valor Holdings Co.,Ltd.

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Home Improvement Centers➢Income level of approx. ¥300 million higher than before the COVID-19
pandemic (FY2020 1Q).
Customers' changes in attitudes and behavior associated with the shift ofCOVID-19 to Class 5.
Need to take actions due to soaring raw material prices.

➢➢(Yen in 100millions）

HC segment profit
Analyses of 1Q results

30(factors of the change from the plan and from theprevious year)

26.9

25

20vs. plan
19.6

14.3

15
11.0

Operatingrevenues

20.9

YoY

▲

Soaring commodity prices.

▲

Rebound of special
demand for repair materials,
tools, etc. at Daiyu EightCo., Ltd. caused by anearthquake in Fukushimaoccurred in March 2022.

▲

Although expenses areunder control, gross profit
rates decreased due to thedownturn of the top line.

▲

Increased utilities andother expenses due tohigher resource prices.

50Operating
income10vs. planYoY※＋：increase, ▲：decrease, ±：in line with the plan
©2023 Valor Holdings Co.,Ltd.

8Sports Clubs➢ Income level of approx. ¥300 million lower than before the COVID-19
pandemic (FY2020 1Q).
➢ Membership increased in 1Q, but product sales slowed down.
➢ Aiming to turn profitable in a single month at an early date.
(Yen in 100millions）SpC segment profit
Analyses of 1Q results2(factors of the change from the plan and from theprevious year)

Operatingrevenues

0.10-2-1.9-2.2

vs. plan▲

Slowdown in product sales.

YoY▲

Membership increased YoY.

vs. plan▲

Increase in cost of sales,
including personnel andfacility costs.

YoY▲

Decrease in top line.

Operatingincome-2.9-4-6-8-7.9※＋：increase, ▲：decrease, ±：in line with the plan-10©2023 Valor Holdings Co.,Ltd.

9Distribution-related business➢ Income level of approx. ５0 million yen lower than before the COVID19 pandemic (FY2020/1Q).
➢ Contribution from SHOWAFILM Co., Ltd. and Unidopack Co., Ltd.,
which became subsidiaries during this period.
Distribution segment profit

Analyses of 1Q results

12109(factors of the change from the plan and from theprevious year)

10.6

11
9.2

8.8
8.1

8
7
6
5

2
10

Operatingincome43vs. plan±

Increase in goods passing
through the distribution
centers due to the larger
logistics volume by sales
expansion in main
businesses.

YoY＋Contribution by companies
subsidiarized.

vs. plan±

Increase in labor costs

YoY±Higher selling costs due toequipment purchases.

8.7

Operatingrevenues(Yen in 100millions）※＋：increase, ▲：decrease, ±：in line with the plan

©2023 Valor Holdings Co.,Ltd.

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Other businesses（Pet shops, Credit card services, etc.)➢ Income level of approx. 200 million yen lower than before the COVID19 pandemic (FY2020/1Q).
➢ Including sales promotion expenses for the "Lu Vit Credit Card,"
which began accepting members in April.

Other businesses
Operating incomeAnalyses of 1Q results(factors of the change from the plan and from theprevious year)

4.7

5Operatingrevenues

64.9

4
3

2.5

vs. plan±

Decrease in sale figures ofpet cages, circles, andother related items.

YoY±

Consumables, dog and cattreats, and premium foodsales remained steady.

±

Increase in costs such as
cashless payment fees andutilities.

▲

Sales promotion expenses
for the "Lu Vit Credit Card,"
which began accepting
members in April, etc.

2.6

2
10.5

0
2019/6 2020/6 2021/6 2022/6 2023/6©2023 Valor Holdings Co.,Ltd.

Operatingincome(Yen in 100millions）

vs. plan

YoY※＋：increase, ▲：decrease, ±：in line with the plan

11Changes in Management Indicators➢ ROA, ROE, and total asset turnover improved.
➢ Improvement of ROIC is an issue.

FY22 1Q

FY23 1Q

FY24 1Q

Results

Results

Results

ROA

7.2%

5.8%

5.9%

ROR

4.0%

3.2%

3.2%

Total Asset Turnover

1.8

1.8

1.9

ROE

10.6%

8.3%

9.0%

ROIC*

6.3%

4.8%

4.7%

Equity ratio

36.1%

35.8%

36.1%

D/E ratio

0.7

0.7

0.7

Net D/E ratio

0.6

0.6

0.6

*ROIC is calculated by dividing operating income after tax (using the effective tax rate) by (interestbearing debt + net worth + noncontrolling interests).
©2023 Valor Holdings Co.,Ltd.

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FY2024 Forecast➢➢

In the supermarket business, we aim to further improve profitability bypromoting the shift to “Neo Destination Stores*.”*a company that is chosen by society
In the drugstore business, we are working to improve the profitability of storesby attaching dispensing pharmacies and renovating sales floors, to improve thegross profit rate, and to increase productivity through an automatic orderingsystem.
（Yen in millions）

FY24 1Q
ResultsProgress rates

FY24 2Q

FY24PlanPlan

Operating revenues

196,270

25.4%

384,000

772,000

Operating income

5,622

27.4%

9,900

20,500Ordinary income

6,245

26.8%

11,30023,300Net income
attributable toowners of parent

3,453

37.1%

6,300

9,300

Existing stores sales growth rate
Supermarkets

+2.8％

0.0％

Drugstores

＋5.9%

1.5%

Home improvement centers

△2.7%

0.0%

©2023 Valor Holdings Co.,Ltd.

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Number of Stores andCapital Investment Plan➢➢Valor is planning to open new stores in Kansai area in the supermarket business.
Focusing on opening specialty stores in the home improvement center business.
FY23

FY24 1Q

FY24 Plan（Number of stores） FY end

OpenClosed

FY endOpenClosed

FY end

316

1-

3175-

321

422-

4412-

54

Drugstores

495

32496

155505Home improvement centers

161-

2159

62165

Sports clubs
(FC)

184

25181

28178

Pet shops

１１92-

121

61124

5-

-

5-

-

51,322

10

91,323

46

16

1,352

Supermarkets
Delicatessen Specialty Stores

OthersTotal（52）

（48）

(43)

（*） The number of AXTOS franchise stores at the end of FY23 excludes the number of franchise stores converted to company-operated stores during the period.

Capital investment

25,995---22,838New investment

13,464---

12,121

Existing stores investment

11,726

--

-

6,645

805

-

-

-

4,065

Others©2023 Valor Holdings Co.,Ltd.

（Yen in millions）※Payment basis

14Disclaimer•

This material is provided for informational purposes only
and is not intended as a solicitation to take any action. Thismaterial (including performance plans) has been preparedby Valor Holdings based on reliable information currentlyavailable, but it contains risks and uncertainties. We
assumes no responsibility for its accuracy or completeness.

•The copyright of this material belongs to Valor Holdings
Reproduction or distribution of this material for any reason
without our permission is strictly prohibited.

•Please use this information at your own discretion. ValorHoldings assumes no responsibility for any losses that may
be incurred by making investment decisions based solely on
the forecasts, target figures, etc. contained in this material.

©2023 Valor Holdings Co.,Ltd.

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