H2O RETAILING CORPORATION
Supplementary Information
to Financial Resultsof the Fiscal YearEnding March 31, 2024

Nov. 2, 2023

I. Consolidated Financial Results
1.Consolidated statements of income
Overview of financial results
Selling, general and administrative expenses
Non-operating Income and Expenses
Extraordinary Income and Losses
2.Consolidated Balance Sheet
3.Capital Investment
II.Forecast of FY2024
1.Forecast of consolidated financial results
2.Forecast of Capital Investment
III. Non-Consolidated Results
1.Hankyu Hanshin Department Stores, Inc.
2. Izumiya・Hankyu Oasis Co., Ltd.
3.Kansai Super Market Ltd.

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

I. Consolidated Financial Results

1.Consolidated statements of income< Overview of financial results >(Millions of yen)Sep. 30,
2021

Sep. 30,
2022

AmountAmountSep. 30,
2023
AmountYoY

Inc./Dec

Department Store

154,306

220,475

259,140

117.5%

Supermarket

149,228

205,832

210,904

Shopping Center

24,56017,49715,807

Vs. forecast

Inc./Dec+ 38,664

103.8%+ 9,494102.5%+ 5,072

99.9%

△ 190

90.3%

△ 1,689

88.2%△ 2,112

Other

15,976

17,74019,336109.0%+ 1,596111.5%+ 1,997

Gross sales

344,072

461,546

505,189109.5%+ 43,643

101.9%+ 9,189

Net sales

237,020

304,425

318,543

104.6%+ 14,117

98.9%△ 3,456△ 4,075

1,626

7,039

432.9%+ 5,413170.4%+ 2,909

2,396

1,643

4,123

250.9%+ 2,480

90.7%

△ 421

Department StoreSupermarket

△6867

1,792

206.7%+ 925

159.9%

+ 671

Other

△ 2,348△ 1,563

1,318-+ 2,882-+ 1,387

Consolidation adjustment

Shopping Center△ 1,114△ 1,458△ 4,376-△ 2,918-△ 1,649

Operating profit△ 5,148

1,114

9,897

888.4%+ 8,783

141.4%+ 2,897

Ordinary profit△ 4,189

2,835

10,664376.1%+ 7,829

159.2%+ 3,964

Extraordinary income

19,886

5,029

988

19.6%

△ 4,041

Extraordinary losses

4,809

3,144

1,178

37.5%

△ 1,966

8,085

2,790

6,294

225.6%+ 3,504

314.7%+ 4,294Profit* The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.

< Selling, general and administrative expenses >(Millions of yen)Sep. 30,2021

Sep. 30,2022

AmountAmountSep. 30,2023
AmountInc./Dec

YoY

Personnel expenses

40,12747,013

46,954

99.9%

△ 59

Rent expenses

18,26023,46823,982102.2%+ 514

Advertising expenses

2,937

4,169

4,269

102.4%+ 99

Depreciation

7,590

8,932

9,181

102.8%+ 248

Business consignment expenses

9,409

10,502

10,873103.5%+ 371

Sales commission

2,474

4,212

5,161

122.5%+ 949

Transportation costs

7,131

8,4918,308

97.8%

△ 183

Other

15,042

18,63018,420

98.9%

△ 209

102,973

125,419

127,150

101.4%+ 1,730

Total* The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.

1

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

< Non-operating Income and Expenses >(Millions of yen)Sep. 30,
2021

Sep. 30,
2022

AmountAmountSep. 30,
2023
AmountInc./Dec

YoY

Non-operating income

2,588

3,088

1,912

61.9%

△ 1,176Interest income

249277

155

55.8%

△ 122

Dividend income

593

629

668

106.1%+ 38

Gain on debt settlement

453

421

346

82.1%

△ 75

Foreign exchange gains

890

1,357

16412.1%△ 1,193--61-+ 61

402

401

516

128.6%+ 114

Non-operating expenses

1,629

1,367

1,145

83.7%

△ 222

Interest expenses

475

492

446

90.7%

△ 45

Loss on provision for redemption ofgift certificates

362

339

273

80.7%

△ 65

Share of loss of entities accounted forusing equity method

483

225--

△ 225

Other307310424

136.8%+ 114Share of profit of entities accounted
for using equity method
Other* The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.

< Extraordinary Income and Losses >(Millions of yen)

Extraordinary income

Sep. 30,
2021

Sep. 30,
2022

AmountAmount19,886

Sep. 30,
2023
Amount5,029

988 H2O Shopping Center Development

Gain on sale of non-current assets

Extraordinary losses

Major items
988

4,809

3,144

1,178

Loss on retirement of non-current
assets794 Hankyu Hanshin Department Stores, etc.

Office relocation expenses

282 Consolidation of Supermarket business head office

Loss on store closings1012

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

2. Consolidated Balance sheet(Millions of yen)Sep. 30,2021

Mar. 31,2023

Sep. 30,
2023

Cash and deposits

31,01258,67054,994

Notes and accounts receivable trade60,49568,572

67,97222,004

21,234

21,227124,057

161,408

157,202

Property, plant and equipment

308,956

303,253

303,666

Intangible assets

17,13019,76424,028Investments and other assets

Inventories
Total current assets

223,087

201,997

206,736

Total non-current assets

549,175

525,015534,432

Total assets

673,233

686,423

691,634

Notes and accounts payable - trade

54,547

63,67470,422Loans payable and bonds

181,729

179,267

169,056

398,619

413,608

410,457

203,100

206,213

209,003

Total net assets

274,613272,814281,177

Total liabilities and net assets

673,233

686,423

691,634

Total liabilities
Shareholders' equity

3. Capital Investment(Millions of yen)Sep. 30,
2023
AmountMajor items

Department Store

4,391 Renovations of Kobe Hankyu and Hankyu Main StoreSupermarket

3,775 Building purchase of Izumiya・Hankyu Oasis

Shopping Center
OtherConsolidation adjustment
Total

999
7,657 System investments of H2O Retailing△ 31
16,7923

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

II. Forecast of FY2024

1. Forecast of consolidated financial results(Millions of yen)
1-2Q
Amount3-4Q
Forecast

YoY

FY2024
Forecast

YoY

YoY

Department Store259,140117.5%

296,159

109.1%

555,300

112.9%

Supermarket

210,904

102.5%

210,905

100.3%

421,810101.4%

Shopping Center

15,80790.3%

19,082105.6%

34,890

98.1%

Other

19,336109.0%

18,663101.3%

38,000105.1%

Gross sales

505,189109.5%

544,810105.1%

1,050,000

107.2%Net sales

318,543

104.6%

361,456111.7%

680,000

108.3%

Department Store

7,039

432.9%

10,460120.6%

17,500169.9%

Supermarket

4,123

250.9%

3,843

100.5%

7,967

145.7%

Shopping Center

1,792

206.7%

1,255

133.5%

3,048

168.6%

1,318-△ 1,499-△ 181-△ 4,376-△ 1,957-△ 6,334-

Operating profit

9,897

888.4%

12,102117.8%

22,000193.2%

Ordinary profit

10,664376.1%

11,835116.4%

22,500173.0%

Profit6,294

225.6%

6,705

49.3%

13,00079.4%

OtherConsolidation adjustment* The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.

2. Forecast of Capital Investment(Millions of yen)
FY2024
Forecast

Major items

Department Store

8,814 Remodel of Kobe Hankyu and Takatsuki Hankyu, Hankyu Umeda Main StoreSupermarket

8,153

Shopping Center

2,145 Renovation of H2O Shopping Center Development stores

Other

15,759Total

New center of Food Delivery BusinessStore renovetion of each Supermarket company

Software renewal of merchandise and operational system , POS restructuring
Consolidation of Supermarket business head office

34,8704

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

III. Non-consolidated results

1. Hankyu Hanshin Department Stores, Inc.
< Overview of financial results >(Millions of yen)AmountYoYInc./Dec

Vs. forecast

Inc./Dec

Gross sales

257,479117.5%＋ 38,271

103.2%＋ 8,031

Gross profit

57,404116.7%＋ 8,224(Gross profit / Gross Sales)

22.29%-△0.14pt

Other operating revenue

1,968

127.1%＋ 419

104.2%＋ 78

SG & A

52,368106.5%＋ 3,206(SG & A / Gross Sales)

20.34%-△2.09pt

Operating profit

7,004

447.0%＋ 5,437

168.6%＋ 2,849

Operating profit / Gross Sales

2.72%-＋2.01pt-＋1.05pt* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

< Business results by stores >(Millions of yen, thousands of people, ㎡)
AmountYoY

Number ofcustomers

YoY

Sales area

Hankyu Main Store *1

139,753

119.2%

20,062125.1%

98,418

Hanshin Umeda Main Store30,253122.1%

16,357117.5%

52,996

Senri Hankyu

6,636

104.4%

1,778

94.7%

13,902

Takatsuki Hankyu

10,965110.3%

4,445

114.9%

38,638

Kawanishi Hankyu

5,985

101.1%

2,496

105.8%

15,521

Takarazuka Hankyu *2

3,262

103.0%--

6,148Nishinomiya Hankyu

11,494103.0%

5,713

101.1%

25,099

Kobe Hankyu

18,263127.8%

7,916

116.2%

45,482

Hakata Hankyu

27,298125.0%

13,273127.2%

41,835

Hankyu Men's Tokyo

6,076

118.4%

1,094

118.9%

11,378Oi Hankyu Food Hall

2,153

103.2%

2,443

103.4%

2,042

Tsuzuki Hankyu

1,483

100.0%

1,009

95.5%

1,917

Amagasaki Hanshin *2

1,459

103.1%--

2,855

Hanshin Nishinomiya

1,961

100.8%

1,862

101.0%

4,998

254

102.9%

2,336

103.6%

804

97,295114.5%

44,371112.5%

210,620

267,302117.8%

80,791116.4%

362,034

Hanshin Mikage
Total of branch stores
Total stores*3*1. including Hankyu Men's Osaka*2. not counting the number of customers*3. including sales in tenants (¥9,822 million)

5

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

< Gross Sales of each category >(Millions of yen)AmountYoY

Share

Men's clothing

18,070117.0%

6.8%

Women's clothing

28,267114.2%

10.6%

Children's clothing

4,332

113.4%

1.6%

Other clothing

4,500

112.2%

1.7%

Clothing

55,170114.9%

20.6%

Accessories, bags and others

62,153131.2%

23.3%

Household merchandise

6,975

116.7%

2.6%

Foods

70,243108.2%

26.3%

Restaurants & cafes

6,658

122.4%

2.5%

General merchandise

54,375118.0%

20.3%

Service1,240

138.1%

0.5%

Other

10,485127.7%

3.9%

Total *

267,302117.8%

100.0%* including sales in tenants (¥9,822 million)< Monthly Sales >

Apr.

May

Jun.

Jul.

Aug.

Sep.

116.6%

113.3%

118.8%

115.9%

125.9%

126.1%Hanshin Umeda Main Store

99.7%

117.1%

107.9%

118.0%

133.5%

158.3%

Total of branch stores

112.3%

115.6%

109.6%

114.9%

118.4%

116.3%

112.9%

114.5%

114.1%

115.8%

123.8%

126.3%

Hankyu Main Store *Total stores* Including Hankyu Men's Osaka

6

H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

<Forecast of FY2024>(Millions of yen)
1-2Q
Amount3-4Q
YoY

Forecast

FY2024
YoY

Forecast

YoY

257,479117.5%

294,120108.9%

551,600

112.7%

Other operating revenue

1,968

127.1%

2,061

111.0%

4,030

118.3%

Operating profit

7,004

447.0%

10,595120.9%

17,600170.4%

Gross sales* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

<Gross sales forecast by stores>(Millions of yen)
1-2Q
Amount3-4Q
YoY

Forecast

FY2024
YoY

Forecast

YoY

Hankyu Main Store *1

139,753

119.2%

154,259

107.2%

294,012112.6%Hanshin Umeda Main Store30,253122.1%

37,250121.8%

67,504122.0%

Senri Hankyu

6,636

104.4%

7,307

98.9%

13,944

101.4%

Takatsuki Hankyu

10,965110.3%

12,319103.4%

23,285106.5%

Kawanishi Hankyu

5,985

101.1%

6,840

100.2%

12,826100.6%

Takarazuka Hankyu

3,262

103.0%

3,871

107.6%

7,134

105.5%

Nishinomiya Hankyu

11,494103.0%

13,103100.2%

24,598101.5%

Kobe Hankyu

18,263127.8%

24,984132.0%

43,248130.2%

Hakata Hankyu

27,298125.0%

29,610103.1%

56,909112.5%

Hankyu Men's Tokyo

6,076

118.4%

7,102

103.2%

13,179109.7%Oi Hankyu Food Hall

2,153

103.2%

2,367

99.5%

4,521

101.2%

Tsuzuki Hankyu

1,483

100.0%

1,747

101.3%

3,231

100.7%

Amagasaki Hanshin

1,459

103.1%

1,615

99.1%

3,075

101.0%Hanshin Nishinomiya

1,961

100.8%

2,174

99.8%

4,136

100.2%

254

102.9%

276

102.3%

531

102.6%

97,295114.5%

113,321107.4%

210,617110.6%

267,302117.8%

304,831108.9%

572,133112.9%Hanshin Mikage
Total of branch stores
Total stores*2*1. including Hankyu Men's Osaka*2. including sales in tenants

7H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

2. Izumiya・Hankyu Oasis Co., Ltd.
< Overview of financial results >(Millions of yen)AmountYoY

Inc./Dec

Vs. forecast＋ 3,044

Inc./Dec

98.2%△ 2,267

109.9%＋ 827

122,918102.5%

Gross profit

33,109103.3%＋ 1,053(Gross profit / Gross Sales)

26.94%-＋0.19pt

Other operating revenue

9,189

110.8%＋ 894

SG & A

39,464100.0%△4(SG & A / Gross Sales)

32.11%-△0.82pt

Operating profit

2,834

321.4%＋ 1,952

83.9%

△ 545

Operating profit / Gross Sales

2.31%-＋1.57pt-△0.39pt

Gross sales* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

<Number of stores>

Total

YoY difference

Izumiya73△3Hankyu Oasis

77±0< Opening and closing stores >Opening

Family Mart × Izumiya Higashi Mikuni 4-chome

Closing
Family Mart × Izumiya Teramadacho Higashi< Monthly Sales >Existing storesApr.

May

Jun.

Jul.

Aug.

Sep.

102.6%

103.3%

104.4%

102.9%

104.9%

105.6%<Forecast of FY2024>(Millions of yen)
1-2Q
Amount3-4Q
YoY

Forecast

FY2024
YoY

Forecast

YoY

122,918102.5%

123,661100.8%

246,580

101.7%

Other operating revenue

9,189

110.8%

8,165

99.9%

17,355105.4%

Operating profit

2,834

321.4%

2,239

92.0%

5,074

153.1%

Gross sales* Non-consolidated results shown above are reclassified on the basis before the application of "Accounting Standards for Revenue Recognition".

8H2O RETAILING CORPORATION (8242)
Supplementary Information to Financial Results for the Second Quaeter of the Fiscal Year Ending Mar. 31, 2024

3.Kansai Super Market Ltd.
< Overview of financial results >(Millions of yen)AmountYoY

Inc./Dec

Vs. forecast＋ 2,249

Inc./Dec

101.7%＋ 1,072

100.3%＋2

65,146103.6%

Gross profit

17,207105.2%＋ 850(Gross profit / Gross Sales)

26.41%-＋0.41pt

Other operating revenue

1,014

99.8%

△2SG & A

16,201

99.6%

△ 70

(SG & A / Gross Sales)

24.87%-△1.00pt

Operating profit

2,020

183.5%＋ 919

128.7%＋ 450

Operating profit / Gross Sales

3.10%-＋1.35pt-＋0.65pt

Gross sales*1. Financial results of Kansai Super Market Ltd.are consolidated with KSP Co., Ltd.
Consolidated results shown above are reclassfied on the basis before the application of "Accounting Standards for Revenue Recognition"*2. Due to the partial revision of accounting classifications following the business integration, YoY change based on the same accounting standards is shown.

<Number of stores>

Total

YoY difference△163

Kansai Super Market< Opening and closing stores >Opening-Closing-< Monthly Sales >Existing stores

Apr.

May

Jun.

Jul.

Aug.

Sep.

102.6%

103.1%

105.6%

107.7%

103.5%

105.1%< Forecast of FY2024 >(Millions of yen)
1-2Q
Amount3-4Q
YoY

Forecast

FY2024
YoY

Forecast

YoY

Gross sales

65,146103.6%

64,888100.4%

130,035

102.0%

Other operating revenue

1,014

99.8%

1,016

99.8%

2,030

99.8%

Operating profit

2,020

183.5%

1,730

96.9%

3,750

129.9%*1. Financial results of Kansai Super Market Ltd.are consolidated with KSP Co., Ltd.
Consolidated results shown above are reclassfied on the basis before the application of "Accounting Standards for Revenue Recognition"9