Disclaimer: This document is an English translation of the original document in Japanese and has been
prepared solely for reference purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevail in all respects.

Consolidated Financial Results
for the Three Months Ended May 31, 2024
[Japanese GAAP]
July 10, 2024

Company name:MINISTOP Co., Ltd.
Stock exchange listing:Tokyo Stock Exchange (Prime Market)
Code number:
9946
URL:
https://www.ministop.co.jp/corporate/ir/
Representative:
Akihiro Fujimoto, President and Representative Director
Contact:
Naoki Motohashi, Executive Officer, General Manager of Business Administration
Phone:+81-43-212-6472
Scheduled date of filing quarterly securities report:
July 11, 2024
Scheduled date of commencing dividend payments:–
Availability of supplementary explanatory materials on quarterly financial results:
Available
Schedule of quarterly financial results briefing session:
Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended May 31, 2024 (March 1, 2024 – May 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Gross operating
Profit attributable toOperating profit
Ordinary profit
revenueowners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
May 31, 2024
20,553
5.3(1,338)–(1,231)–(1,135)–
May 31, 2023
19,516
(5.0)
(524)
–
(400)
–
(312)
–
(Note) Comprehensive income: Three months ended May 31, 2024: ¥(1,197) million [–%]
Three months ended May 31, 2023: ¥(299) million [–%]
DilutedBasic earnings
earnings
per shareper share
Three months ended
Yen
Yen
May 31, 2024
(39.14)–
May 31, 2023
(10.77)–(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of May 31, 2024
81,85939,193As of February 29, 2024
77,90040,681(Reference) Equity: As of May 31, 2024: ¥38,254 million
As of February 29, 2024: ¥39,633 million

46.7
50.9

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Yen

Yen

Yen

Year-end

Fiscal year ended
–
10.00
–
February 29, 2024
Fiscal year ending–
February 28, 2025
Fiscal year ending
February 28, 2025
10.00–
(Forecast)(Note) Revision to the dividend forecast announced most recently: None

Total
Yen

Yen

10.00

20.00

10.00

20.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2025 (March 1, 2024 –February 28, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable
Gross operating
Basic earnings
Operating profit
Ordinary profit
to owners ofrevenue
per share
parentMillion yen%

Million yen%

Million yen%

Million yen

Full year
90,000 13.8
1,500
–
1,800
–
(Note) Revision to the financial results forecast announced most recently: None

400

%

Yen

–

13.79

* Notes:(1) Changes in significant subsidiaries during the period under review: None
(Changes in specified subsidiaries resulting in changes in scope of consolidation)
Newly included: –Excluded: –(2) Accounting treatment particularly for the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued and outstanding shares (common shares)
1) Total number of issued and outstanding shares at the end of the period (including treasury shares):May 31, 2024:
29,372,774 shares
February 29, 2024:
29,372,774 shares2) Total number of treasury shares at the end of the period
May 31, 2024:
364,157 shares
February 29, 2024:
364,100 shares
3) Average number of shares during the period:
Three months ended May 31, 2024:
Three months ended May 31, 2023:

29,008,659 shares
29,009,105 shares* These quarterly consolidated financial results are outside the scope of a quarterly review by certified public
accountants or an audit firm.
* Explanation of the proper use of financial results forecast and other notes
Forward-looking statements contained in this document, including financial results forecast, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, and actual
financial results, etc. may significantly differ from the projections due to various factors. For the use of financial
results forecast, please see “1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated
Financial Results Forecast and Other Forecasts” on page 11 of the attachments.

Table of Contents – Attachments
1. Qualitative Information on Quarterly Financial Results ..................................................................... 2(1) Explanation of Operating Results ................................................................................................. 2(2) Explanation of Financial Position ............................................................................................... 10(3) Explanation of Consolidated Financial Results Forecast and Other Forecasts ........................... 11
2. Quarterly Consolidated Financial Statements and Principal Notes ................................................... 12(1) Quarterly Consolidated Balance Sheets ....................................................................................... 12(2) Quarterly Consolidated Statements of Income and Comprehensive Income .............................. 14
Quarterly Consolidated Statements of Income
Three months ended May 31 .................................................................................................... 14
Quarterly Consolidated Statements of Comprehensive Income
Three months ended May 31 .................................................................................................... 15(3) Notes to Quarterly Consolidated Financial Statements ............................................................... 16(Notes on going concern assumption) ...................................................................................... 16(Notes in case of significant changes in shareholders’ equity) ................................................. 16(Segment information, etc.) ...................................................................................................... 16(Revenue recognition) .............................................................................................................. 171

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
In the three months ended May 31,2024, amid the improvement of the employment and income environment,
the Japanese economy was on a moderate recovery path due to vitalized consumption with the expectation of
wage increases in March and continued ideal weather for an outing as well as the increased demand associatedwith outing mainly during the Golden Week holidays after April. However, due to the persisted elevated prices
caused by the instability of the global situation and the yen’s depreciation, consumption behaviors were affectedby consumers’ growing awareness of the need to protect their lifestyles, and therefore, the economic outlook
remains unpredictable.
Under these circumstances, on a mission of ‘We realize a society full of beaming smiles with “delicious” and“convenience,”’ the Group focused on its selected business. As a policy for fiscal 2024, the second year of the2023-2025 Medium-term Management Plan, the Group set the policy of strengthening its competitiveness of
individual store model with its evolution into the second phase model as well as promoting strategic growth, andwe promoted structural reforms and the growth strategy.
In order to establish the “new combo store model,” which aims to enhance the competitiveness of individualstores, in the previous fiscal year, we refined both fast foods to deliver deliciousness of freshly cooked foods andthe convenience to provide “convenience,” which have been combined as the components of the combo store
model since its foundation. We then promoted the first phase of the “new combo store model,” under which werolled out successful cassettes to existing stores. In fiscal 2024, we have been continuing our efforts of refining
which started in fiscal 2023. In addition, we have been implementing the second phase of the “new combo store
model” which aims at further evolution by pursuing the real nature of fast foods and the convenience. We opened
flagship stores which embody our vision under the phase two in May. We have positioned the flagship stores aslaboratory stores to verify successful cassettes under the second phase there in advance and will roll out thecreated successful cassettes to existing stores.
The number of MINISTOP Partnership Agreement stores increased ahead of the plan made at the beginningof the fiscal year as of May 31, 2024, amounting to 723 stores, which was 40% of all stores. A shift of ourbusiness model has been progressing to the one, where franchised stores and the company headquarters will aim
to grow together by their boosting sales, appropriately sharing the burden of business expenses, and pursuing
profit. Regarding reforms of the management and leadership structure and the company headquarters, we
promoted preparation of the mechanism such as tools and procedures related to a shift to effective and efficientmanagement guidance to be implemented ahead of increasing the number of MINISTOP Partnership Agreement
stores during the three months ended May 31, 2024. We will step into the areas that we had not explored in theconventional management guidance, such as optimizing product disposal management and recruiting andtraining human resources to create effects resulting from a structural shift of our business model. We will also
implement the qualitative shift in management guidance.
As for new businesses, we made efforts to enhance recognition by and convenience for customers for delivery
services, and in addition, we promoted the enhancement of product lineups and developed original goods for ecommerce. Toward the expansion of our market share, the occupational field business has generated stablebusiness profit, with our increasing locations of MINISTOP POCKET stores, unmanned convenience stores set
up in offices and other facilities, including locations for related services, improving their services, and cultivating
new markets for them.
Regarding the Vietnam business, we promoted initiatives to achieve both the expansion of store opening andthe recording of profit as the model of increasing directly managed stores. Our market share increased by 2.0
percentage points compared with the same period of the previous fiscal year in Ho Chi Minh, where we opened
15 new stores in our efforts to dominate the market. We reviewed a merchandising process to promptly respondto changes in customer needs due to changes in the economic environment. As a result, net sales at all storesincreased by 21.2% compared with the same period of the previous fiscal year with our enhancing emphasis on
the price. We developed a logistics support system to realize increasing directly managed stores and promoted
the streamlining of store operations such as the superintendent system (“SI system”), in which one store manager
2

oversees multiple stores. As a result, the number of stores that introduced the SI system amounted to 33 units,
accounting for about 40% of all stores.
We promoted management system reforms along with organizational and cultural reforms, aimed at steadily
promoting structural reforms and the growth strategy in the domestic and overseas businesses. Toward a shift topurpose management, we promoted efforts to create new value and solve social issues, with the soft-serve ice
cream, our signature product, as the symbol.
As a result of the above, consolidated operating results for the three months ended May 31, 2024 were grossoperating revenue of ¥20,553 million (up 5.3% compared with the same period of the previous fiscal year),
operating loss of ¥1,338 million (operating loss of ¥524 million in the same period of the previous fiscal year),ordinary loss of ¥1,231 million (ordinary loss of ¥400 million in the same period of the previous fiscal year), andloss attributable to owners of parent of ¥1,135 million (loss attributable to owners of parent of ¥312 million in
the same period of the previous fiscal year).
The operating results of each segment are as follows.
[Domestic business]
Net sales at all stores of MINISTOP alone decreased by 0.6% compared with the same period of the previous
fiscal year due to poor weather conditions in March. Net sales per day per existing store compared with the same
period of the previous fiscal year for MINISTOP stores decreased by 0.8%. Average per day per existing store
customer numbers fell by 0.9%, while per day per existing store average customer purchase value unchanged.
Per day per existing store sales of convenience store products decreased by 2.1 % and per day per existing store
sales of fast food products processed in store increased by 5.9%. Gross profit ratio increased by 0.1 percentage
point from the same period of the previous fiscal year to 30.5% due to the increased sales of value-priced productsby expanding products with emphasis on the price based on merchandising process for redesigning the roles ofeach category in accordance with customers' purchasing behavior. This was also due to a growth in the sales of
products such as hand-made rice balls by providing fast food products processed in store, high value-added
products, with product lineups that satisfy our customers.

3

Toward the establishment of the “new combo store model” to enhance the competitiveness of individual stores,
as for fast foods, we worked to realize deliciousness of freshly cooked foods, developed products by adding
value of health to deliciousness, implemented branding initiatives to promote new value, and through thedigitalization, overhauled our emphasis on the value and promoted reforms of our methods to offer products.
As for hand-made rice balls, which combine freshly cooked rice and seasonal ingredients, in addition to
Hokkaido Yaki Salmon (Rice Ball), for which we paid special attention to ingredients from Hokkaido, we
launched Seafood Mixed Tempura (Rice Ball) in March, a rice ball combined with filling mixed tempura, and it
was well received. Regarding the development of products which add value of health to deliciousness, welaunched Seasoned Boiled Egg (Rice Ball), for which we reduce the volume of rice and generously use a wholeseasoned boiled egg with a healthy image instead, and it boosted sales. In May, combining two ingredients that
go well each other, we launched Mackerel and Takana (Rice Ball) and Salmon and Salmon Roe (Rice Ball),which customers can enjoy using chopsticks. These products boosted the sales of hand-made rice balls as the
new proposals for rice balls.
As for cold sweets, we promoted branding initiatives by adding new core values, primarily for the accelerated
development of products and soft-serve ice cream in light of a trend of the rising temperature in past years. In
March 2024, we launched Strawberry Soft (Soft-serve Ice Cream), for which we paid special attention to theorigins of ingredients and used Tochiaika, strawberry from Tochigi prefecture. We also launched HALOHALO:
MATCHA x MATCHA, which is genuine matcha shaved ice, anticipating spring with the rising temperature.
However, the planned sales were not achieved due to weather conditions that were different from the forecast.
In April, when the weather was good with the rising temperature, as new sweets to drink, we launched two typesof floats combining milk from Hokkaido and Soft-serve Ice Cream Vanilla, our signature product, which boosted
sales. Furthermore, in May, when demand associated with picnic increased mainly during the Golden Week
holidays, sales were strong as we launched Crackling Melon Cream and Soda and frozen fruit series, under the
product lineup of HALOHALO, an ever-popular product.
Regarding soft-serve ice cream, for which we have promoted branding initiatives such as using a social
networking services to set a world record with its uploaded photos in fiscal 2023, we have implemented thepromotion of value of health such as being low in calories in addition to deliciousness, as the symbol of theCompany’s purpose. We announced the result of calculation of the carbon footprint (CFP) of soft-serve ice creamin March and the CFP of Soft-serve Ice Cream Vanilla with an edible spoon was measured to be 0.2479kgCO2eq.
We have been promoting value of soft-serve ice cream, which is environmentally friendly product, along withnew value such as contribution to local communities and society.
As for the overhaul of our emphasis on the value of products, we are implementing digitalization of menu
colton in store and newly introduced digital colton at 173 stores in the three months ended May 31, 2024. We
promoted the value of products at 624 stores by video as of May 31, 2024. Regarding reforms of our methods
to offer products, we developed ordering and paging systems, with which customers can place an order at the
self-checkout machines with ease. In addition, as for taking mobile orders that we started in August 2023, we
promoted distribution of special coupons as well as products exclusively for mobile orders. We will continue tomake efforts to enhance convenience for customers and, at the same time, toward our evolution as retail media,
establish stores as well as increase advertising revenues by working with other companies.
Regarding the convenience to provide the value of “convenience” with customers, we continued to enhance
product appeal by refining again a merchandising process and enhance our product lineups to meet customer
needs. We also expanded products for daily life and emphasized the price by utilizing TOPVALU products,
products with unique value provided by the Aeon Group.
As for our efforts to enhance product appeal by refining again a merchandising process, we launched Double
Cream Puff at the reasonable pre-tax price of ¥100, for which we generously use whipped cream with pure fresh
cream from Hokkaido blended and Egg Tart, a voluminous product combining aromatic tart dough and eggs
with light taste, and they were well received. We also launched Bread with Ham and Cheese with CamembertCheese Flavor, for which ham and source made from cheese and mayonnaise are generously used, wrapped bybread with soft texture, making it sufficiently filling and available at affordable price. It boosted sales of stuffedbreads. In addition, we promoted larger serving campaigns and emphasized on volume at regular prices, which
4led to further strong sales.
Meanwhile, as for rice balls, which are convenience store products renewed in September 2023, we
emphasized the price with their intermittent sales. However, it failed to lead to steady sales and affected thenumber of customers. We will continue to increase product value based on a design of product lineups that
integrate hand-made rice balls, which are well received by customers.
Furthermore, as for tobacco products, we made investments to add display fixtures to existing fixtures at thescale of 1,300 stores and gradually enhanced our product lineups in the three months ended May 31, 2024. We
will continue to enhance our product lineups to meet needs of customers who visit our stores every morning andgenerate results.
As for expanding products for daily life which are close to the daily lives of customers and emphasizing theprice, we have promoted further utilization of TOPVALU products, which are well received by customers, fromthe aspects of both our design of value and emphasis on the price in responding to poor weather conditions inMarch that affected drinks and alcoholic beverages. We have been rolling out the creation of sales floors, ofwhich results were verified at pilot model stores (“laboratory stores”) as successful cassettes in order toencourage customers to buy multiple items by emphasizing on products with unique value which cannot befound elsewhere. We completely renewed ready-to-eat dressed breads that we had jointly developed. We alsoenhanced lineups of products to be used every day such as home-meal-replacement foods pre-packaged inpouches, with which customers can shorten cooking time, which is the value of “convenience,” and combine
meals easily. Furthermore, as for our emphasis on the price, sales of soft drinks, sweets and snacks, and processedfood were strong as we enhanced our lineups for these products. In addition, in March, we launched Shoyu
Noodle Big and Seafood Noodle Big as the Noodle Big series, value-priced with the volume of noodle increased
by about 1.3 times compared with existing products, which resulted in strong sales. As a result of the above, net
sales of TOPVALU for the three months ended May 31, 2024 increased by over 10% compared with the same
period of the previous fiscal year. We will continue to enhance product lineups and sales promotion plans of
TOPVALU, and appeal unique value in terms of both price and value to customers.

5

As the vision under the second phase of the “new combo store model,” in May, we opened the flagship stores
to embody the evolution of both fast foods and the convenience as well as the utilization of OMO (Online Merges
with Offices) to combine digital services with the MINISTOP app as an interface. We will realize fast foods with
the quality of specialty stores with value of health added to deliciousness under the second phase. We will also
embody the new convenience such as one-stop and quick shopping in terms of both our services and productlineups and our methods to offer products. We have positioned the flagship stores as laboratory stores
functioning as bases for new research and development. In rolling out successful cassettes, we will verify eachof our efforts on fast foods, the convenience, and OMO, and closely examine and identify successful cassettes
in order to smoothly introduce them at existing stores.
We implemented the revitalization of existing stores toward the establishment of the “new combo store model”
at 20 stores as of May 31, 2024. In fiscal 2024, based on expertise gained from the revitalization of existing
stores at 169 stores in fiscal 2023, we carefully selected the details of renovation, and in addition, reduced thedown period to three days in average compared with the maximum of 15 days in fiscal 2023 by carefully
examining the renovation process. Furthermore, from three months prior to the revitalization, we hadsystematically and completely implemented mindset renovation, which is intended to foster a customer-firstmindset and achieve perfect execution primarily with the involvement of franchised stores. In implementing
mindset renovation, before the revitalization, we promoted motivation to create ideal stores, set goals, andformulated operation plans for the owners of the franchised stores and employees by utilizing merchandisingprocess plans which were formulated based on competition environments. After the revitalization, we promoted
efforts to enhance the competitiveness of individual stores by utilizing store records which comprehensively
grasp issues concerning store management to formulate measures. Furthermore, we promoted the establishmentof our commercial activity by vitalizing stores nearby revitalized stores. As a result, for the three months ended
May 31, 2024, an increase in net sales per day per store at the stores which were revitalized in fiscal 2024
compared with the same period of the previous fiscal year exceeded that at all stores. By learning from the efforts
at remodeled stores at an organizational level, such efforts are spreading to management guidance at existing
stores.
The MINISTOP Partnership Agreement has been designed to establish new relationships with franchised
stores and facilitate growth together with them. The number of MINISTOP Partnership Agreement storesreached 723 stores as of May 31, 2024, an increase of 295 stores from the same period of the previous fiscal
year. About 40% of all stores shifted to MINISTOP Partnership Agreement stores, which was ahead of the plan.
Through effective and efficient management guidance, we have implemented a shift of our business model tothe one, where franchised stores and the company headquarters boost sales together, appropriately share theburden of business expenses each other, and share business profit generated. Regarding reforms of the
management and leadership structure and the company headquarters, from March to May, we promoted
preparation of the mechanism such as tools and procedures related to the qualitative shift in management
guidance that we systematically implement with a view to an increase in the number of the Partnership
Agreement stores
We reviewed methods of the conventional management guidance, promote the redesign, centered on themechanisms whose results were verified at directly managed stores, and made efforts toward creating sales
floors with perfect execution and fully implementing sales promotion plans in stores. In addition to the utilizationof operation plans and work procedure manuals to achieve perfect execution, we completed the development ofsales plans in May. We promoted sales plans as the mechanism to review the results of perfect execution of thecreation of sales floors for priority products by franchised stores and superintendents based on a 52-weekmerchandising process. Moreover, as for ordering procedures to realize our product lineups that will satisfy
customers, we increased the number of directly managed stores, at which their verification is made, and toward
its introduction at franchised stores, developed its training system and improved its accuracy from March toMay. The company headquarters will continue to closely support franchised stores’ motivation and their perfect
implementation toward the realization of sales floors that satisfy customers.
Furthermore, as for direct communication to facilitate communication among franchised stores with the6company headquarters serving as a hub and to increase the level of achievement at stores, we promoted theenhancement of video content by utilizing management tablets introduced at all stores and the development of
an interactive chat system. Regarding the utilization of an interactive chat system, by superintendents’ remotely
monitoring the situation of sales floors on a real-time basis and their giving specific guidance on ordering andthe creation of floors, improvement measures were swiftly taken and sales of priority products grew at laboratory
stores. Moreover, the system is used to foster culture of friendly competitions among franchised stores by sharing
information.
The number of directly managed stores reached 221 stores as of May 31, 2024, an increase of 39 stores fromMay 31, 2023. We positioned directly managed stores as stores to verify successful cassettes in rolling them out
to franchised stores. We are introducing the SI system, in which one store manager oversees multiple stores, inorder to promote the streamlining of store operations and establish an efficient management method at franchised
stores that manage multiple stores. Toward the full in-store execution, we promoted the development of store
managers as candidates for superintendents and appointed 27 candidates for superintendents as of May 31, 2024.
We are standardizing the management method for store management, including formulating procedures for store
operations which cover ordering, the creation of floors, attendance management, and work schedulemanagement aimed at efficient multiple-store management system.
Regarding new businesses, we are making efforts to evolve each new business as a piece to function to
integrate with actual stores under the “new combo store model.” We are working to increase sales of delivery
services per locations. We provided multiple delivery services in parallel at 1,173 stores as of May 31, 2024.
Aimed at enhancing convenience for customers, we promoted management guidance to reduce opportunity loss
at stores, and based on the establishment of an operation system to prevent stockouts, we extended our orderacceptance hours beyond the traditional 9 p.m. and increased the number of stores that accept orders until
midnight to the scale of 900 stores. Furthermore, we started sales of new product categories to respond to demand
for ready-to-eat foods, and enhanced product lineups of ready-to-eat foods such as sweet bread, dressed breads,
bentos, and cold noodles by May 31, 2024. As for sales promotion, in addition to distribution of coupons andcampaigns for clearly targeted customers, we are working on acquiring new customers by posting
advertisements on trains in major lines in the Tokyo metropolitan area and emphasizing flyers of re-opening ofrevitalized existing stores, as new sales promotion measures. Sales of delivery services per location were strong
with an increase of over 30% compared with the same period of the previous fiscal year due to these efforts.

7

As for e-commerce, by utilizing sales infrastructure that we developed in fiscal 2023, We enhanced new
product categories and expanded our product lineups of MINISTOP original goods in fiscal 2024. In March, in
addition to starting sales of drinks at bargain prices on our original site of MINISTOP Online, regarding summer
gifts that we started in May, we expanded their product lineups exclusively for e-commerce by more than 200
SKUs to meet customer needs. In addition, sales of e-commerce were strong as we launched original sweets
with Mangoes, used for Mango Parfait, which are popular in stores. Furthermore, we implemented sales
exclusively for e-commerce at discount prices and distributed a coupon in exchange of purchase of subject
products, entitling customers to get soft-serve ice cream free in stores. In addition, we implemented digitaladvertising to enhance recognition and incentives to buy by utilizing a social networking service. Regarding
mutual customer referral under e-commerce, we promoted MINISTOP original goods at Green Beans, which is
the internet supermarket of the Aeon Group. We will expand our product lineups of new categories such as
alcoholic beverages, and we will also expand original goods such as fast frozen food products, and promote
product lineups unique to e-commerce responding to the changing seasons of 52 weeks.
Regarding the MINISTOP app, as an interface of OMO, the number of downloads exceeded 1,790,000 as of
May 31, 2024, and sales to its members increased by over 50% compared with the same period of the previous
fiscal year. As for our efforts on 1-to-1 marketing, we intermittently implemented the measures of distributing
coupons for products with a high potential to be purchased such as coffee and fast food products processed instore intended to target users categorized by their attributes such as days of week and time zone when purchases
are made and goods purchased, by utilizing the accumulated customer base. Furthermore, in April when acustomer starts a new life, we implemented the MINISTOP app lottery, a campaign to create opportunities,
where customers can use the MINISTOP app with saving and fun. In addition, in order to acquire members of
the app, we rolled out a promotional campaign to register new members in coordination with the measures taken
in stores. In addition to coordination with AEON Pay, which is being promoted as code settlement service by
the Aeon Group, we will narrow down segments toward cultivating 1-to-1 marketing and make efforts toenhance convenience such as diversifying payment methods with the MINISTOP app as an interface to connect
actual stores with digital services.
As for the occupational field business, the number of locations of MINISTOP POCKET stores, unmanned
convenience stores set up in offices and other facilities, increased to 1,451 as of May 31, 2024, including
locations for related services. We increased locations in the Kansai region as well as the Tokyo metropolitan
area. In addition, in May, we established experimental units of unmanned stores in condominiums, targeting new
locations of the semi-occupational field market. We worked to prevent stockouts by using the inventory
management system at each location. As a result, sales per location increased by more than 30% compared withthe same period of the previous fiscal year.
In addition, as we developed distribution services for video advertising and product supply services, making
the most of the business’s characteristics of having a large number of locations in offices, we continued to record
stable profit. We will increase locations and improve their services to secure the number-one market shareposition in the occupational field market. We will also create synergy effects such as providing products bycombining the MINISTOP store business with our occupational field locations, which have newly dominatedthe market, with the use of OMO. We have been promoting organizational and cultural reforms and medium- tolong-term management system reforms aimed at generating results by steadily promoting the growth strategy
and structural reforms. As for organizational and cultural reforms, we have managed our training system basedon job requirements, rolled out to all divisions training programs for acquiring problem solving skills, which are
specific to each division and job, and encouraged actions which lead to results.
Aimed at shifting to purpose management, based on the Aeon Group’s future vision and the MINISTOP’s
mission of ‘We realize a society full of beaming smiles with “deliciousness” and “convenience,”’ we have beenpromoting business activities to directly connect a growth of businesses with the solution of social issues. As asymbol of the purpose management, we promoted branding initiatives of soft-serve ice cream and establishedthe soft-serve ice cream committee in March, aimed at creating new core values such as “environmentallyfriendly,” “body-friendly,” “connecting with local communities,” and “contributions to society” in addition toalready established core value of “deliciousness.”
We are focusing on reducing power consumption in our stores, which accounts for 85.5 % of CO2 emissions
8

covered by our estimation as a measure against climate change. With the goal of cutting CO2 emissions by storesby 50% from fiscal 2013 levels by 2030, we have switched the sources of power used in some areas to renewableenergy and changed the lights used inside and outside the stores from fluorescents to LEDs. As we achieved thegoal ahead of the schedule with the progress rate of 111% as of February 29, 2024, we will work on further
reduction aimed at a new target of achieving net-zero CO2 emissions by 2040.
As for our efforts for food loss reduction, as a means to encourage recycling resources, with the goal of
reducing food loss by 50% from 2015 levels by 2025, we have been promoting “Reduce,” an effort to reducefood waste by selling products at discount prices, at 90% of our stores. We will reduce unnecessary food loss by
establishing an efficient sales structure with the formulation of procedures for selling products at discount prices.
Regarding our efforts to reduce plastic usage, we calculated CO2 emissions of an edible spoon attached to softserve ice cream throughout the product life cycle with the method of the carbon footprint and announced its
result in March. We visualized that CO2 emissions from edible spoon were smaller than those from spoon madeof petroleum by 3.5gCO2eq per spoon and that deplasticization led to cutting CO2 emissions as well. We will
work on cutting CO2 emissions during transportation at the distribution stage and promote cutting CO2 emissions
throughout supply chains. Furthermore, at flagship stores opened in May, we changed materials of cutlery fromplastic made of petroleum to eco-friendly ones and will increase the number of stores providing cutlery with
eco-friendly materials.
As for our efforts on connecting with local communities, we implemented the “Child Internship” program, awork experience course for elementary and junior high school students, from fiscal 2005. We let children, thebearers of the future, learn AEON’s ideals. In fiscal 2024, we revised the program so that they can recognize
environment issues as well with soft-serve ice cream, familiar sweets to them. We have conducted fund-raising
activities for the “Circle of Flowers” program throughout the year, which delivers flower seedlings to elementary
schools. In fiscal 2024, owners of store plans to visit elementary schools in person and present flower seedlings.
As for our efforts toward social contribution, We have raised funds for the AEON – UNICEF Safe Water
Campaign, and donated ¥1,408 thousand to provide safe water to children in Cambodia and Myanmar with thecooperation of customers. Network Service Inc. runs a co-operative distribution business for stores in Japan,
operating 13 fixed-temperature centers, six ambient centers, and 10 frozen food distribution centers. In addition
to optimizing the number of delivery routes and the mileage per route, it scaled up the changes of delivery
formats for frozen products. With these efforts, it has been working to reduce costs and environmental impact
including the reduction of CO2 emissions. Furthermore, to address the “2024 problem” in logistics, it continues
to make efforts on streamlining store operations and at logistic reforms that involve reviewing ways of work ofdelivery staff.
Regarding store development, three new stores were opened, and four stores were closed. There were 1,855
stores as of May 31, 2024. We will continue to promote store development activities based on our area strategy.
As a result of the above, gross operating revenue in the domestic business for the three months ended May 31,
2024 was ¥18,292 million (up 3.6% compared with the same period of the previous fiscal year), and operating
loss was ¥1,032 million (operating loss of ¥461 million for the same period of the previous fiscal year).
[Overseas business]
In the three months ended May 31, 2024, in Vietnam, it was announced that the real GDP growth rate was
5.66% (estimated) year on year, a slower growth rate compared with 6.72% in the previous quarter of October
to December 2023. Meanwhile, the measures to reduce or exempt value-added taxes, which were continued tobe put in force from July 2023, was extended again in January 2024. With the consumption supported by the reextension, the economic environment is beginning to show positive signs.
In these circumstances, as for MINISTOP VIETNAM COMPANY LIMITED, we have made an investment
as the business of increasing directly managed stores to achieve both the expansion of store opening and therecording of profit. We reviewed a merchandising process to swiftly adapt to changes in the economic
environment and promoted the enhancement of product lineups to meet consumers’ needs in Ho Chi Minh Cityin terms of both price and value.
As for store opening, we have developed the training system and the organization and structure for the9

development to learn operation systems such as collecting information on properties by increasing the numberof development staff, and promoted the establishment of dominant position in Ho Chi Minh City. We opened 15
new stores and the number of stores reached 179 stores as of May 31, 2024, resulting in an increase of ourmarket share in Ho Chi Minh by 2.0 percentage points compared with the same period of the previous fiscal
year. In addition, net sales per day per store at the start of new stores increased compared with those of newstores in the same period of the previous fiscal year due to the effects of dominating the market.
Regarding our efforts on the recording of profit, we have gradually promoted reforms to refine again amerchandising process based on category management. We implemented a pricing strategy to secure anadvantage against competitors, including small supermarkets and traditional markets and revised prices of acumulative total of 230 SKUs by March 31, 2024. Furthermore, we promoted the development of high-valueadded products such as staple foods. Sales of bentos, noodles, and sweets were strong, resulting in an increase
compared with the same period of the previous fiscal year. In addition, sales of value-added fruit drinks
processed in store were strong and the number of stores with counters for drinks increased to 35 stores. As aresult of the above, net sales at all stores increased by 21.2% compared with the same period of the previous
fiscal year. Meanwhile, gross profit ratio decreased by 3.0 percentage points from the same period of the previous
fiscal year due to our continued price revision.
We have developed a logistics support system to realize increasing directly managed stores. The progress wasmade in utilizing work schedules to achieve perfect execution. In addition, we promoted streamlining store
operations across the divisions, with the involvement of store support desks that started full-scale operations.
The progress was made in the development of store managers to promote the SI system and we appointed over
30 candidates for superintendents by March 31, 2024. As the model of increasing directly managed stores, wehave promoted store operations with the involvement of superintendents. We have streamlined store operations
and also rolled out examples of successful initiatives such as the creation of sales floors. Furthermore, we havepromoted perfect execution and also made efforts to increase productivity by ensuring that operation plans match
actual working conditions. Meanwhile, selling, general and administrative expenses increased by 42.1% due toup-front investment for the expansion of store opening as well as soaring electricity bills and increases inpersonnel expenses caused by hikes in minimum wages.
As a result of the above, gross operating revenue in the overseas business for the three months ended May 31,
2024 was ¥2,260 million (up 21.0% year on year), and operating loss was ¥305 million (operating loss of ¥63
million for the same period of the previous fiscal year).

(2) Explanation of Financial Position(Overview of assets, liabilities, and net assets)
Total assets at the end of the first quarter of the fiscal year under review increased by ¥3,958 million comparedwith the end of the previous fiscal year to ¥81,859 million. This was mainly attributable to increases of ¥3,622
million in accounts receivable - other and ¥2,000 million in deposits paid to subsidiaries and associates, and adecrease of ¥1,932 million in cash and deposits.
Liabilities increased by ¥5,447 million compared with the end of the previous fiscal year to ¥42,666 million.
This was mainly attributable to increases of ¥4,006 million in deposits received and ¥1,055 million in accounts
payable - trade.
Net assets decreased by ¥1,488 million compared with the end of the previous fiscal year to ¥39,193 million.
This was mainly due to the recording of ¥1,135 million in loss attributable to owners of parent and ¥290 million
in dividends paid.

10(3) Explanation of Consolidated Financial Results Forecast and Other Forecasts
The Group expects to achieve its plan by reforming products related to frequently purchased meals,
redesigning sales floors from the customer’s point of view, expanding examples of successful initiatives at priorexperimental stores, conducting promotional activities mainly through the use of the MINISTOP app, promoting
the creation of an efficient store operation system, and continuing efforts to improve management efficiency.
The consolidated financial results forecast for the fiscal year ending February 28, 2025, which we announced
on April 10, 2024, therefore, remains unchanged.

11

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of February 29, 2024
AssetsCurrent assets
Cash and deposits
Accounts receivable - due from franchised stores
Securities
Merchandise
Accounts receivable - other
Deposits paid to subsidiaries and associates
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

12

As of May 31, 2024

8,783
7,871
3,000
1,979
11,331
14,0004,117(54)
51,030

6,851
7,954
3,000
2,184
14,95416,0003,864(57)
54,752

5,878
1,193
3,022
428
62
55
10,641

5,864
1,156
3,488
428
24
244
11,206

3,363
292
3,656

3,219
261
3,480

907
1
10,781
212
2
809
(143)
12,572
26,87077,900914
110,578
241
2
815
(133)
12,41927,107
81,859(Million yen)
As of February 29, 2024
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - due to franchised stores
Accounts payable - other
Income taxes payable
Deposits received
Provision for bonuses
Provision for loss on store closings
Other
Total current liabilities
Non-current liabilities
Lease liabilities
Long-term guarantee deposits
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

13

As of May 31, 2024

13,820
261
4,181
163
11,491
179
24
882
31,005

14,875
309
4,265
132
15,497349
18
1,065
36,515

33
3,804
211
1,856
308
6,214
37,219

29
3,756
217
1,862
284
6,150
42,6667,491
6,032
26,869(642)
39,7507,491
6,032
25,443(643)
38,324

39
(266)
110
(116)
3
1,043
40,681
77,900

45
(230)
113
(70)
3
934
39,19381,859(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three months ended May 31
For the three months ended
May 31, 2023
Gross operating revenue
Operating costs
Operating gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Penalty income
Compensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sale of non-current assets
Reversal of provision for loss on store closings
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on store closings
Provision for loss on store closings
Other
Total extraordinary losses
Loss before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent

14(Million yen)
For the three months ended
May 31, 2024

19,516
9,357
10,15910,684(524)

20,553
10,5899,963
11,302(1,338)

105
0
11
8
12
138

103
1
2
7
3
117

5
–
8
14
(400)

4
3
1
10
(1,231)

8
64
72

0
2
3

2
–
–
0
2
(330)
(15)
(2)
(17)
(312)
–
(312)

2
0
7
0
10
(1,238)37
3
41(1,280)(145)(1,135)

Quarterly Consolidated Statements of Comprehensive Income
Three months ended May 31
For the three months ended
May 31, 2023

(Million yen)
For the three months ended
May 31, 2024

(312)

(1,280)

2
2
8
13
(299)

6
73
3
82
(1,197)(299)(1,089)

–

(108)

Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests15

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Segment information, etc.)[Segment information]
I. For the three months ended May 31, 2023 (from March 1, 2023 to May 31, 2023)
1. Information on amounts of gross operating revenue, income (loss) and breakdown of revenue by reportablesegment(Million yen)
Reportable segment
Domestic
Overseas
Total
Business
Business
Gross operating revenue
Revenue from franchised stores (*1)
7,579
133
7,713
Sale of goods (*2)
5,527
1,704
7,231
Other (*3)
780
30
811
Revenue from contracts with customers
13,888
1,867
15,756
Other revenue (*4)
3,760
3,760
－
Gross operating revenue from outside customers
17,6491,867
19,516
Inter-segment gross operating revenue or transfers
16
16
－
Total
17,665
1,867
19,533
Segment profit (loss) (*5)
(461)
(63)
(524)
Notes
1: Revenue from franchised stores includes income such as royalty income from franchised storesand net sales of products to franchised stores.
2: Sale of goods refers to the sale of goods to customers at directly managed stores.
3: Other includes royalty income, digital signage advertising fees, solar-power-generated electricity sale
income, etc. received from area franchisers.
4: Other revenue includes transportation service charges and fees received from product vendors andother business partners.
5: Segment profit (loss) corresponds to operating loss in the Quarterly Consolidated Statements ofIncome.

2. Information on impairment losses on non-current assets by reportable segment(Million yen)

Impairment losses

Domestic Business

Overseas Business

1

0

16

Total
2

II. For the three months ended May 31, 2024 (from March 1, 2024 to May 31, 2024)
1. Information on amounts of gross operating revenue, income (loss) and breakdown of revenue by reportablesegment(Million yen)
Reportable segment
Domestic
Overseas
Total
Business
Business
Gross operating revenue
Revenue from franchised stores (*1)
7,669
130
7,799
Sale of goods (*2)
6,311
2,095
8,407
Other (*3)
588
35
623
Revenue from contracts with customers
14,5692,260
16,830
Other revenue (*4)
3,722
3,722
－
Gross operating revenue from outside customers
18,292
2,260
20,553
Inter-segment gross operating revenue or transfers
30
30
－
Total
18,322
2,260
20,583
Segment profit (loss) (*5)
(1,032)(305)(1,338)Notes
1: Revenue from franchised stores includes income such as royalty income from franchised storesand net sales of products to franchised stores.
2: Sale of goods refers to the sale of goods to customers at directly managed stores.
3: Other includes royalty income, digital signage advertising fees, solar-power-generated electricity sale
income, etc. received from area franchisers.
4: Other revenue includes transportation service charges and fees received from product vendors andother business partners.
5: Segment profit (loss) corresponds to operating loss in the Quarterly Consolidated Statements ofIncome.

2. Information on impairment losses on non-current assets by reportable segment(Million yen)Domestic BusinessImpairment losses

Overseas Business
2

－

Total
2

(Revenue recognition)
Breakdown of revenue from contracts with customers
The breakdown of revenue from contracts with customers is as stated in “Notes to Quarterly Consolidated
Financial Statements (Segment information, etc.).”17