# EDGAR Filing Document

**Accession Number:** 0002126970
**File Stem:** 0001193125-26-207460
**Filing Date:** 2026-5
**Character Count:** 532495
**Document Hash:** 207f2740dfde7cb1ecf4d9eac5a372e1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-207460.hdr.sgml**: 20260506

**ACCESSION NUMBER**: 0001193125-26-207460

**CONFORMED SUBMISSION TYPE**: CB/A

**PUBLIC DOCUMENT COUNT**: 4

**FILED AS OF DATE**: 20260506

**DATE AS OF CHANGE**: 20260506

**SUBJECT COMPANY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Olympic Group Corp
- **CENTRAL INDEX KEY:** 0002126781

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** CB/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 005-95595
- **FILM NUMBER:** 26945601

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 4-12-1, HONCHO
- **STREET 2:** KOKUBUNJI-SHI
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 185-0012
- **BUSINESS PHONE:** 81-4-2300-7200

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 4-12-1, HONCHO
- **STREET 2:** KOKUBUNJI-SHI
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 185-0012
**FILED BY**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pan Pacific International Holdings Corp
- **CENTRAL INDEX KEY:** 0002126970

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** CB/A

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** DOGENZAKA-DORI, 2-25-12 DOGENZAKA
- **STREET 2:** SHIBUYA-KU
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 150-0043
- **BUSINESS PHONE:** 81-3-5725-7532

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** DOGENZAKA-DORI, 2-25-12 DOGENZAKA
- **STREET 2:** SHIBUYA-KU
- **CITY:** TOKYO
- **PROVINCE COUNTRY:** M0
- **ZIP:** 150-0043

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**Form CB** 

**(Amendment No. 1)** 

**TENDER OFFER/RIGHTS OFFERING NOTIFICATION FORM** 

Please place an X in the box(es) to designate the appropriate rule provision(s) relied upon to file this Form:

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| | |
|:---|:---|
|  Securities Act Rule 801 (Rights Offering) | ☐ |
|  Securities Act Rule 802 (Exchange Offer) | ☒ |
|  Exchange Act Rule 13e-4(h)(8) (Issuer Tender Offer) | ☐ |
|  Exchange Act Rule 14d-1(c) (Third Party Tender Offer) | ☐ |
|  Exchange Act Rule 14e-2(d) (Subject Company Response) | ☐ |

---

## Kabushiki Kaisha Olympic Gurupu
**(Name of Subject Company)** 

**Olympic Group Corporation** 

**(Translation of Subject Company's Name into English (if applicable))** 

**Japan** 

**(Jurisdiction of Subject Company's Incorporation or Organization)** 

**Pan Pacific International Holdings Corporation** 

**(Name of Person(s) Furnishing Form)** 

**Common Stock** 

**(Title of Class of Subject Securities)** 

**N/A** 

**(CUSIP Number of Class of Securities (if applicable))** 

**Olympic Group Corporation** 

**Attn: Takashi Ando** 

**4-12-1, Honcho, Kokubunji-Shi, Tokyo, 185-0012, Japan** 

**+81-42-300-7200** 

**(Name, Address (including zip code) and Telephone Number (including area code)** 

**of Person(s) Authorized to Receive Notices and Communications on Behalf of Subject Company)** 

**Not Applicable** 

**(Date Tender Offer/Rights Offering Commenced)** 

------

**PART I – INFORMATION SENT TO SECURITY HOLDERS** 

**Item 1. Home Jurisdiction Documents** 

(a) The following documents are attached as exhibits to this Form:

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| | |
|:---|:---|
| **Exhibit**<br> **Number** |  |
| 99.1\* | [Press release dated April 6, 2026 titled "Notice Regarding the Conclusion of a Share Exchange Agreement between Pan Pacific International Holdings Corporation (PPIH) and Olympic Group Corporation, and Change in PPIH's Subsidiary Status"](http://www.sec.gov/Archives/edgar/data/2126781/000119312526142895/d86244dex991.htm) |
| 99.2 | [Notice of Convocation of the 54th Ordinary General Meeting of Shareholders of Olympic Group Corporation](d115329dex992.htm) |
| 99.3 | [Materials for the 54th Ordinary General Meeting of Shareholders](d115329dex993.htm) |

---

\* Previously furnished to the Commission under cover of Form CB on April 6, 2026.

(b) Not applicable.

**Item 2. Informational Legends** 

A legend complying with Rule 802(b) under the U.S. Securities Act of 1933, as amended, is included in each of the exhibits to this Form.

**PART II – INFORMATION NOT REQUIRED TO BE SENT TO SECURITY HOLDERS** 

Not applicable.

**PART III – CONSENT TO SERVICE OF PROCESS** 

Pan Pacific International Holdings Corporation submitted to the Securities and Exchange Commission a written irrevocable consent and power of attorney on Form F-X dated April 6, 2026.

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**PART IV – SIGNATURES** 

After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

---

| |
|:---|
| Pan Pacific International Holdings Corporation |
| /s/ Satoshi Nakashima |
| Name: Satoshi Nakashima |
| Title: Director and Senior Executive Officer |

---

Date: May 6, 2026

## Exhibit 99.2

**Exhibit 99.2** 

The business integration described in this document is made for the securities of a Japanese company. The business integration is subject to disclosure requirements of Japan that are different from those of the United States. Financial statements included in this document, if any, have been prepared in accordance with Japanese accounting standards that may not be comparable to the financial statements of United States companies.

It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors may be residents of countries other than the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment.

You should be aware that the issuer may purchase securities otherwise than under the business integration, such as in open market or privately negotiated purchases.

This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects. All dates and times are stated in Japan Standard Time (JST) in this document.

Securities code: 8289

Date of sending by postal mail: May 13, 2026

Start date of measures for electronic provision: May 7, 2026

**To Our Shareholders** 

Toru Oshitanai President and Representative Director Olympic Group Corporation 4-12-1 Honcho, Kokubunji-shi, Tokyo

**Notice of Convocation of the 54th Ordinary General Meeting of Shareholders** 

We are pleased to announce that the 54th Ordinary General Meeting of Shareholders of Olympic Group Corporation (the "Company") will be held as outlined below.

**When convening this General Meeting of Shareholders, the Company takes measures for providing information that constitutes the content of reference documents for the general meeting of shareholders, etc. (items subject to measures for electronic provision) in electronic format, and posts this information on the following websites. Please access either of those websites by using the internet address to review the information.** 

**[The Company's website]** 

**https://www.olympic-corp.co.jp/ir/meeting** 

**(From the above website, select "Shareholders' Meeting" in the menu.)** 

**[Website for the information materials for the general meeting of shareholders]** 

**https://d.sokai.jp/8289/teiji/** 

**[Tokyo Stock Exchange (TSE)'s website (Listed Company Search)]** 

**https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show** 

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**(Access the TSE website by using the internet address shown above, enter the Company's securities code "8289" in "Code," and click "Search." Then, click "Basic information" and select "Documents for public inspection/PR information." Under "Filed information available for public inspection," click "Click here for access" under "[Notice of General Shareholders Meeting /Informational Materials for a General Shareholders Meeting].")** 

**You may exercise your voting rights via the Internet or in writing. Please review the Reference Documents for the General Meeting of Shareholders and exercise your voting rights by 6:00 p.m., Wednesday, May 27, 2026.** 

**[Exercise of voting rights via the Internet]** 

Please access the website for the exercise of voting rights designated by the Company (https://evote.tr.mufg.jp/), and follow the instructions shown on the screen to enter your vote for or against the proposals by the deadline indicated above by using the QR code or your login ID and temporary password indicated on the Voting Rights Exercise Form to be sent with this notice.

Please note that any costs incurred in accessing the website for the exercise of voting rights (e.g. Internet connection fees) need to be borne by the shareholder.

If you have any questions, please contact the Help Desk (phone number: 0120-173-027, Corporate Agency Division, Mitsubishi UFJ Trust and Banking Corporation (business hours: 9:00 - 21:00, toll free)).

\* "QR code" is a registered trademark of DENSO WAVE INCORPORATED.

**[Exercise of voting rights in writing (via postal mail)]** 

Please indicate your vote for or against the proposals on the Voting Rights Exercise Form and return the form so that it arrives by the deadline indicated above.

**1.** **Date and Time:** 10:00 a.m., Thursday, May 28, 2026

**2.** **Place:** Atlantic, 3F Hotel Nikko Tachikawa Tokyo, 1-12-1 Nishiki-cho, Tachikawa-shi, Tokyo

**3.** **Agenda for the Meeting** 

**Matters to be reported:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Business Report, the Consolidated Financial Statements and Audit Reports of the Consolidated Financial
Statements by the Accounting Auditors and the Audit and Supervisory Board for the 54th Fiscal Term (March 1, 2025 to February 28, 2026)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Non-Consolidated Financial Statements for the 54th Fiscal Term
(March 1, 2025 to February 28, 2026)

**Matters to be resolved:** 

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| | |
|:---|:---|
| **Proposal No. 1:** | Election of Seven (7) Directors |
| **Proposal No. 2:** | Election of One (1) Audit and Supervisory Board Member |
| **Proposal No. 3:** | Approval of the Share Exchange Agreement between the Company and Pan Pacific International Holdings Corporation |

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**4.** **Other matters relating to this notice (instructions on the exercise of voting rights)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In the case that you exercise your voting rights in writing (via postal mail), if you do not indicate your vote
for or against the proposals on the Voting Rights Exercise Form, it is deemed that you indicated your vote for the proposals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If you exercise your voting rights more than once via the Internet, the last exercise of your voting rights
shall be treated as valid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If you exercise your voting rights both via the Internet and in writing (via postal mail), the exercise of your
voting rights via the Internet shall be treated as valid, regardless of the date and time of their arrival.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Only the shareholder or his/her one proxy may attend the meeting. In accordance with Article 15 of the
Company's Articles of Incorporation, the proxy must be another shareholder who has voting rights.

• For those attending, please present the Voting Rights Exercise Form on attendance to the receptionist.

• If revisions to the items subject to measures for electronic provision arise, a notice of the revisions and the
details of the items before and after the revisions will be posted on the aforementioned websites.

• In principle, the items subject to measures for electronic provision must be reviewed by accessing the websites
indicated above, and will be sent in writing only to shareholders who requested the delivery of paper-based documents by the record date. For this General Meeting of Shareholders, however, paper-based documents containing the items subject to
measures for electronic provision will be sent out to all the shareholders, regardless of whether or not they requested the delivery of paper-based documents. Of the items subject to measures for electronic provision, in accordance with the laws and
regulations and Article 13, Paragraph 2 of the Company's Articles of Incorporation, the following items are not included in the paper-based documents delivered to shareholders. The Audit and Supervisory Board Members and the Accounting Auditor
have audited the documents to be audited, including the following items.

● Reference Documents for the General Meeting of Shareholders

Proposal No. 1: Election of Seven (7) Directors (Reference)

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| | |
|:---|:---|
| Proposal No. 3: | Approval of the Share Exchange Agreement Between the Company and Pan Pacific International Holdings Corporation "Articles of Incorporation of Pan Pacific International Holdings Corporation" "Pan Pacific International Holdings Corporation's Non-Consolidated Financial Statements for the Most Recent Fiscal Year (July 1, 2024, to June 30, 2025)" (Reference)  |

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● Business Report

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Matters Concerning the Current Status of the Corporate Group

Main Business Activities, Major Business Locations, Employee Information, Major Lenders and Loan Amounts, Other Significant Matters Concerning the Current Status of the Corporate Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Current Status of the Company

Status of Company Officers - Matters Concerning Outside Directors, Status of Shares, Status of Stock Acquisition Rights, etc., Accounting Auditor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. System Ensuring the Appropriateness of Operations, the Operational Status of the System, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Policy on the Distribution of Retained Earnings, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Basic Policy on Corporate Governance

● Consolidated Financial Statements

● Non-Consolidated Financial Statements

● Accounting Audit Report on Consolidated Financial Statements

● Accounting Audit Report on Non-Consolidated Financial Statements

● Audit Report of the Audit and Supervisory Board

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**Reference Documents for the General Meeting of Shareholders** 

**Proposal No. 1:** Election of Seven (7) Directors

The terms of office of all nine (9) Directors will expire at the conclusion of this meeting. Accordingly, the Company proposes the election of seven (7) Directors.

The candidates for Directors are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| No. | Name (Date of birth) | Career summary, position, and areas of responsibility in the Company, and significant<br>concurrent positions | Career summary, position, and areas of responsibility in the Company, and significant<br>concurrent positions | Number of<br> the<br> Company<br> shares held |
| 1<br>Reelection | Toru Oshitanai<br> (June 13, 1966) | August 2017 | Advisor of the Company | 54.900 shares |
| 1<br>Reelection | Toru Oshitanai<br> (June 13, 1966) | September 2017 | Vice President and Representative Director of Olympic Co., LTD. | 54.900 shares |
| 1<br>Reelection | Toru Oshitanai<br> (June 13, 1966) | May 2018 | Vice President and Representative Director of the Company | 54.900 shares |
| 1<br>Reelection | Toru Oshitanai<br> (June 13, 1966) | May 2020 | President and Representative Director of Olympic Co., LTD. | 54.900 shares |
| 1<br>Reelection | Toru Oshitanai<br> (June 13, 1966) | May 2022 | President and Representative Director of the Company (current position) | 54.900 shares |
| 1<br>Reelection | Toru Oshitanai<br> (June 13, 1966) | March 2026 | Chairman and Representative Director of Olympic Co., LTD. (current position) | 54.900 shares |
| 1<br>Reelection | (Significant concurrent positions)<br> Chairman and Representative Director of Olympic Co., LTD.<br> Chairman, President and Representative Director of Miuraya Co., Ltd.<br> President and Representative Director of OSC Foods Corporation<br> President and Representative Director of OSC Bakery Co., Ltd.<br> President and Representative Director of Olympic Cellar Co., Ltd.<br> Chairman, President and Representative Director of OSC Life Products Co., Ltd. | (Significant concurrent positions)<br> Chairman and Representative Director of Olympic Co., LTD.<br> Chairman, President and Representative Director of Miuraya Co., Ltd.<br> President and Representative Director of OSC Foods Corporation<br> President and Representative Director of OSC Bakery Co., Ltd.<br> President and Representative Director of Olympic Cellar Co., Ltd.<br> Chairman, President and Representative Director of OSC Life Products Co., Ltd. | (Significant concurrent positions)<br> Chairman and Representative Director of Olympic Co., LTD.<br> Chairman, President and Representative Director of Miuraya Co., Ltd.<br> President and Representative Director of OSC Foods Corporation<br> President and Representative Director of OSC Bakery Co., Ltd.<br> President and Representative Director of Olympic Cellar Co., Ltd.<br> Chairman, President and Representative Director of OSC Life Products Co., Ltd. | (Significant concurrent positions)<br> Chairman and Representative Director of Olympic Co., LTD.<br> Chairman, President and Representative Director of Miuraya Co., Ltd.<br> President and Representative Director of OSC Foods Corporation<br> President and Representative Director of OSC Bakery Co., Ltd.<br> President and Representative Director of Olympic Cellar Co., Ltd.<br> Chairman, President and Representative Director of OSC Life Products Co., Ltd. |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | February 2016 | Joined Olympic Co., LTD. | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | May 2018 | Director of Your Petia Corporation | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | May 2018 | Director of Animal General Medical Center Corporation | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | May 2019 | President and Representative Director of Your Petia Corporation (current position) | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | May 2022 | Director of the Company | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | June 2022 | President and Representative Director of Your Petia Salon Corporation (current position) | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | May 2023 | Managing Director of Olympic Co., LTD. | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | April 2025 | Vice President and Representative Director of the Company (current position) | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | April 2025 | Vice President and Representative Director of Olympic Co., LTD. | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | March 2026 | Vice President and Representative Director of Animal General Medical Center Corporation (current position) | 318,384 shares |
| 2<br>Reelection | Nobuyuki Kanazawa<br> (June 26, 1982) | March 2026 | President and Representative Director of Olympic Co., LTD. (current position) | 318,384 shares |
| 2<br>Reelection | (Significant concurrent positions)<br> President and Representative Director of Olympic Co., LTD.<br> President and Representative Director of Your Petia Corporation<br> President and Representative Director of Your Petia Salon Corporation<br> Vice President and Representative Director of Animal General Medical Center Corporation | (Significant concurrent positions)<br> President and Representative Director of Olympic Co., LTD.<br> President and Representative Director of Your Petia Corporation<br> President and Representative Director of Your Petia Salon Corporation<br> Vice President and Representative Director of Animal General Medical Center Corporation | (Significant concurrent positions)<br> President and Representative Director of Olympic Co., LTD.<br> President and Representative Director of Your Petia Corporation<br> President and Representative Director of Your Petia Salon Corporation<br> Vice President and Representative Director of Animal General Medical Center Corporation | (Significant concurrent positions)<br> President and Representative Director of Olympic Co., LTD.<br> President and Representative Director of Your Petia Corporation<br> President and Representative Director of Your Petia Salon Corporation<br> Vice President and Representative Director of Animal General Medical Center Corporation |

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| | | | | |
|:---|:---|:---|:---|:---|
| No. | Name (Date of birth) | Career summary, position, and areas of responsibility in the Company, and significant<br>concurrent positions | Career summary, position, and areas of responsibility in the Company, and significant<br>concurrent positions | Number of<br> the<br> Company<br> shares held |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | March 1992 | Joined the Company | 1,300 shares |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | May 2019 | Executive Officer of Olympic Co., LTD. | 1,300 shares |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | May 2022 | Director of Olympic Co., LTD. | 1,300 shares |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | May 2024 | Director of the Company (current position) | 1,300 shares |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | May 2024 | Senior Managing Director of Olympic Co., LTD. (current position) | 1,300 shares |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | March 2026 | Director of Miuraya Co., Ltd. (current position) | 1,300 shares |
| 3<br>Reelection | Kunihiko Toyonaga<br> (March 8, 1974) | March 2026 | President and Representative Director of Uogashi Kamagata Co., Ltd. (current position) | 1,300 shares |
| 3<br>Reelection | (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., LTD.<br> Director of Miuraya Co., Ltd.<br> President and Representative Director of Uogashi Kamagata Co., Ltd. | (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., LTD.<br> Director of Miuraya Co., Ltd.<br> President and Representative Director of Uogashi Kamagata Co., Ltd. | (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., LTD.<br> Director of Miuraya Co., Ltd.<br> President and Representative Director of Uogashi Kamagata Co., Ltd. | (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., LTD.<br> Director of Miuraya Co., Ltd.<br> President and Representative Director of Uogashi Kamagata Co., Ltd. |
| 4<br>New<br> election | Takashi Ando<br> (August 25, 1970) | November 2005 | Registered as Assistant Public Accountant | – shares |
| 4<br>New<br> election | Takashi Ando<br> (August 25, 1970) | October 2007 | Joined Ernst & Young ShinNihon LLC | – shares |
| 4<br>New<br> election | Takashi Ando<br> (August 25, 1970) | October 2010 | Registered as Certified Public Accountant | – shares |
| 4<br>New<br> election | Takashi Ando<br> (August 25, 1970) | July 2021 | Joined Olympic Co., LTD. | – shares |
| 4<br>New<br> election | Takashi Ando<br> (August 25, 1970) | May 2023 | Director of Olympic Co., LTD. | – shares |
| 4<br>New<br> election | Takashi Ando<br> (August 25, 1970) | May 2024 | Managing Director of Olympic Co., LTD. (current position) | – shares |
| 4<br>New<br> election | (Significant concurrent positions)<br> Managing Director of Olympic Co., LTD. | (Significant concurrent positions)<br> Managing Director of Olympic Co., LTD. | (Significant concurrent positions)<br> Managing Director of Olympic Co., LTD. | (Significant concurrent positions)<br> Managing Director of Olympic Co., LTD. |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | April 1980 | Joined National Tax Agency | – shares |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | July 2010 | Director (Appeals Judge) of National Tax Tribunal | – shares |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | July 2011 | Director (Appeals Judge) of Sapporo Regional Tax Tribunal | – shares |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | July 2012 | Director of Light Motor Vehicle Inspection Organization | – shares |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | July 2014 | Director (Appeals Judge) of Hiroshima Regional Tax Tribunal | – shares |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | July 2015 | Director (Appeals Judge) of Nagoya Regional Tax Tribunal | – shares |
| 5<br>Reelection<br>Outside<br>Independent | Toshiyuki Noda<br> (January 14, 1957) | May 2016 | Outside Director of the Company (current position) | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | April 1977 | Joined The Shoko Chukin Bank (currently The Shoko Chukin Bank, Ltd.) | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | August 2008 | Director of The Shoko Chukin Bank | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | October 2008 | Director and Managing Executive Officer of The Shoko Chukin Bank, Ltd. | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | June 2013 | Vice President and Representative Director of The Shoko Chukin Bank, Ltd. | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | August 2016 | President and Representative Director of Yaesu Shoko Co., Ltd. | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | June 2018 | Outside Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. | – shares |
| 6<br>Reelection<br>Outside<br>Independent | Hideo Mori<br> (January 18, 1955) | May 2021 | Outside Director of the Company (current position) | – shares |
| 6<br>Reelection<br>Outside<br>Independent | (Significant concurrent positions)<br> Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. | (Significant concurrent positions)<br> Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. | (Significant concurrent positions)<br> Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. | (Significant concurrent positions)<br> Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. |

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| | | | | |
|:---|:---|:---|:---|:---|
| No. | Name (Date of birth) | Career summary, position, and areas of responsibility in the Company, and significant<br>concurrent positions | Career summary, position, and areas of responsibility in the Company, and significant<br>concurrent positions | Number of<br> the<br> Company<br> shares held |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | April 1986 | Joined Ministry of International Trade and Industry (currently Ministry of Economy, Trade and Industry) | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | July 2003 | Director for Diet Relations of Minister's Secretariat of Ministry of Economy, Trade and Industry | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | October 2006 | Director of Commodity Derivatives Division of Commerce and Information Policy Bureau of Ministry of Economy, Trade and Industry | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | July 2009 | Director of Trade Finance and Economic Cooperation Division of Trade and Economic Cooperation Bureau of Ministry of Economy, Trade and Industry | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | July 2011 | Director for Commerce and Distribution Policy Group and General Coordination of Minister's Secretariat of Ministry of Economy, Trade and Industry | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | July 2012 | Director of NEXI, Paris (General Representative of Europe, Africa and the Middle East) of Incorporated Administrative Agency Nippon Export and Investment Insurance (currently Nippon Export and Investment Insurance) | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | April 2015 | Director of Incorporated Administrative Agency Nippon Export and Investment Insurance (Head Office) | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | April 2017 | Director of General Affairs Department of Japan Patent Office of Ministry of Economy, Trade and Industry | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | July 2018 | Director-General for Reconstruction from Nuclear Disaster of Reconstruction Agency | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | July 2020 | Resigned from Attached to Minister's Secretariat of Ministry of Economy, Trade and Industry | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | November 2020 | Senior Managing Director of Japan Construction Equipment Manufacturers Association (current position) | – shares |
| 7<br>Reelection<br>Outside<br>Independent | Satoru Koyama<br> (May 17, 1962) | May 2022 | Outside Director of the Company (current position) | – shares |
| 7<br>Reelection<br>Outside<br>Independent | (Significant concurrent positions)<br> Senior Managing Director of Japan Construction Equipment Manufacturers Association | (Significant concurrent positions)<br> Senior Managing Director of Japan Construction Equipment Manufacturers Association | (Significant concurrent positions)<br> Senior Managing Director of Japan Construction Equipment Manufacturers Association | (Significant concurrent positions)<br> Senior Managing Director of Japan Construction Equipment Manufacturers Association |

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(Notes) 1. There is no special interest between each of the candidates and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Toshiyuki Noda, Hideo Mori and Satoru Koyama are candidates for Outside Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Toshiyuki Noda has served in important positions at National Tax Agency, and the Company expects that he will
exercise the supervisory function by giving appropriate advice based on his advanced knowledge on accounting, legal principle, etc. Therefore, the Company proposes the election of him as Outside Director. Although he has no past experience of being
involved in the management of a company, the Company believes that he will be able to appropriately perform his duties as Outside Director for the reasons stated above. His term in the position of Outside Director at the conclusion of this General
Meeting of Shareholders will be ten (10) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Hideo Mori has experience of management of a financial institution, and the Company expects that he will
appropriately evaluate and supervise the management of the Company and provide useful advice based on his abundant knowledge. Therefore, the Company proposes the election of him as Outside Director. His term in the position of Outside Director at
the conclusion of this General Meeting of Shareholders will be five (5) years.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Satoru Koyama has served in important positions at the Ministry of Economy, Trade and Industry and other
government agencies, as well as having abundant international experience and knowledge, and the Company expects that he will provide advice and supervision from a broad perspective utilizing such insights. Therefore, the Company proposes the
election of him as Outside Director. Although he has no past experience of being involved in the management of a company, the Company believes that he will be able to appropriately perform his duties as Outside Director for the reasons stated above.
His term in the position of Outside Director at the conclusion of this General Meeting of Shareholders will be four (4) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Satoru Koyama is Senior Managing Director of the Japan Construction Equipment Manufacturers Association, but
there is no business relationship between the Company and the Japan Construction Equipment Manufacturers Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Company has reported to the Tokyo Stock Exchange that Toshiyuki Noda, Hideo Mori and Satoru Koyama have
been appointed as independent officers as stipulated by the said exchange. The Company plans to continue to report their independent-officer status to the said exchange, should this proposal be approved. Hideo Mori served as Vice President and
Representative Director of The Shoko Chukin Bank, Ltd., which is a lender to the Company, from June 2013 to June 2016. However, it has been more than nine years since he retired from that position, and the Company believes that this will not affect
his independence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Pursuant to Article 427, Paragraph 1 of the Companies Act, the Company has entered into agreements with
Toshiyuki Noda, Hideo Mori and Satoru Koyama to limit their liability for damages under Article 423, Paragraph 1 of the Companies Act. The maximum amount of liability for damages under such agreements is the minimum liability amount stipulated by
law. The Company plans to continue the said agreements, should this proposal be approved.

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**Proposal No. 2:** Election of One (1) Audit and Supervisory Board Member

The terms of office of Hiroaki Takuma, Full-time Audit and Supervisory Board Member, will expire at the conclusion of this meeting. Accordingly, the Company proposes the election of one (1) Audit and Supervisory Board Member.

The Audit and Supervisory Board of the Company has already given their consent to this proposal.

The candidate for Audit and Supervisory Board Member is as follows:

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| | | | |
|:---|:---|:---|:---|
| Name (Date of birth) | Career summary, position in the Company, and significant concurrent positions | Career summary, position in the Company, and significant concurrent positions | Number of<br> the Company<br> shares held |
| Reelection<br> Hiroaki Takuma<br> (November 29, 1956) | December 1993 | Joined Data Plan Co., Ltd. | 7,800 shares |
| Reelection<br> Hiroaki Takuma<br> (November 29, 1956) | May 2008 | Transferred to the Company as Deputy General Manager of General Affairs Department | 7,800 shares |
| Reelection<br> Hiroaki Takuma<br> (November 29, 1956) | February 2009 | Seconded to Data Plan Co., Ltd. as Department General Manager | 7,800 shares |
| Reelection<br> Hiroaki Takuma<br> (November 29, 1956) | January 2015 | President and Representative Director of Folme Co., Ltd. | 7,800 shares |
| Reelection<br> Hiroaki Takuma<br> (November 29, 1956) | March 2023 | Advisor of Folme Co., Ltd. | 7,800 shares |
| Reelection<br> Hiroaki Takuma<br> (November 29, 1956) | May 2024 | Full-time Audit and Supervisory Board Member of the Company (current position) | 7,800 shares |
| (Significant concurrent positions)<br> Audit and Supervisory Board Member of OSC Amaike Co., Ltd.<br> Audit and Supervisory Board Member of OSC Foods Co., Ltd.<br> Audit and Supervisory Board Member of OSC Bakery Co., Ltd.<br> Audit and Supervisory Board Member of Olympic Cellar Co., Ltd.<br> Audit and Supervisory Board Member of OSC Trading Co., Ltd.<br> Audit and Supervisory Board Member of OSC Fast Food Service Co., Ltd.<br> Audit and Supervisory Board Member of Grain Coffee Roaster Co., Ltd.<br> Audit and Supervisory Board Member of GOUT Co., LTD.<br> Audit and Supervisory Board Member of Miuraya Co., Ltd.<br> Audit and Supervisory Board Member of Animal General Medical Center Corporation | (Significant concurrent positions)<br> Audit and Supervisory Board Member of OSC Amaike Co., Ltd.<br> Audit and Supervisory Board Member of OSC Foods Co., Ltd.<br> Audit and Supervisory Board Member of OSC Bakery Co., Ltd.<br> Audit and Supervisory Board Member of Olympic Cellar Co., Ltd.<br> Audit and Supervisory Board Member of OSC Trading Co., Ltd.<br> Audit and Supervisory Board Member of OSC Fast Food Service Co., Ltd.<br> Audit and Supervisory Board Member of Grain Coffee Roaster Co., Ltd.<br> Audit and Supervisory Board Member of GOUT Co., LTD.<br> Audit and Supervisory Board Member of Miuraya Co., Ltd.<br> Audit and Supervisory Board Member of Animal General Medical Center Corporation | (Significant concurrent positions)<br> Audit and Supervisory Board Member of OSC Amaike Co., Ltd.<br> Audit and Supervisory Board Member of OSC Foods Co., Ltd.<br> Audit and Supervisory Board Member of OSC Bakery Co., Ltd.<br> Audit and Supervisory Board Member of Olympic Cellar Co., Ltd.<br> Audit and Supervisory Board Member of OSC Trading Co., Ltd.<br> Audit and Supervisory Board Member of OSC Fast Food Service Co., Ltd.<br> Audit and Supervisory Board Member of Grain Coffee Roaster Co., Ltd.<br> Audit and Supervisory Board Member of GOUT Co., LTD.<br> Audit and Supervisory Board Member of Miuraya Co., Ltd.<br> Audit and Supervisory Board Member of Animal General Medical Center Corporation | (Significant concurrent positions)<br> Audit and Supervisory Board Member of OSC Amaike Co., Ltd.<br> Audit and Supervisory Board Member of OSC Foods Co., Ltd.<br> Audit and Supervisory Board Member of OSC Bakery Co., Ltd.<br> Audit and Supervisory Board Member of Olympic Cellar Co., Ltd.<br> Audit and Supervisory Board Member of OSC Trading Co., Ltd.<br> Audit and Supervisory Board Member of OSC Fast Food Service Co., Ltd.<br> Audit and Supervisory Board Member of Grain Coffee Roaster Co., Ltd.<br> Audit and Supervisory Board Member of GOUT Co., LTD.<br> Audit and Supervisory Board Member of Miuraya Co., Ltd.<br> Audit and Supervisory Board Member of Animal General Medical Center Corporation |

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(Notes) There is no special interest between each of the candidates and the Company.

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Agenda Item No. 3 Approval of the Share Exchange Agreement between the Company and Pan Pacific International Holdings Corporation

The Company and Pan Pacific International Holdings Corporation (hereinafter "PPIH", and the Company and PPIH are collectively referred to as the "Companies") have resolved at their respective Boards of Directors meetings on April 6, 2026 to conduct a business integration (hereinafter the "Business Integration") through a share exchange (hereinafter the "Share Exchange") with PPIH as the wholly owning parent company resulting from a share exchange and the Company as the wholly owned subsidiary resulting from a share exchange. On the same date, the Companies have concluded a share exchange agreement (hereinafter the "Share Exchange Agreement").

The approval of the Share Exchange Agreement under this proposal is hereby requested.

The Share Exchange is scheduled to be conducted after obtaining approval for the Share Exchange Agreement by resolution at this Shareholders' Meeting of the Company. As for PPIH, the Share Exchange is scheduled to be conducted without obtaining approval for the Share Exchange Agreement by resolution at the Shareholders' Meeting, through the procedure of a simplified share exchange under the provisions of Article 796, paragraph (2) of the Companies Act (Act No. 86 of 2005, as amended; hereinafter the same).

Furthermore, prior to the effective date of the Share Exchange (scheduled for July 1, 2026), the common shares of the Company (hereinafter "Company's Shares") are scheduled to be delisted from the Standard Market of the Tokyo Stock Exchange, Inc. (hereinafter the "Tokyo Stock Exchange") as of June 29, 2026 (the final trading day is scheduled for June 26, 2026).

The reasons for conducting the Share Exchange, an outline of the content of the Share Exchange Agreement, and other matters related to this proposal are as follows:

1. Reasons for conducting the Share Exchange

The PPIH group (referring to a corporate group comprising PPIH along with its 70 consolidated subsidiaries, 10 non-consolidated subsidiaries, one equity-method associate, and five non-equity-method associates; hereinafter the same) upholds "The Customer Matters Most" as its corporate principle and promotes a unique store concept of providing customers with convenience, discount, and amusement through shopping. The group is committed to enhancing its long-term corporate value through a business model of "stores as a place to spend time" where customers not only "buy what they need when they need it" but also enjoy the act of shopping itself. As of March 31, 2026, the total number of stores in the PPIH group is 787, comprising 663 domestic stores and 124 overseas stores, which includes the large convenience and discount store "Don Quijote" operated by its core company, Don Quijote Co., Ltd., family-oriented comprehensive discount stores "MEGA Don Quijote" and "MEGA Don Quijote UNY" operated by Don Quijote Co., Ltd. with Nagasakiya Co., Ltd. (hereinafter "Nagasakiya") and UD Retail Co., Ltd., and comprehensive retail businesses such as "Apita" and "Piago" operated by UNY Co., Ltd. (hereinafter "UNY"). The environment surrounding the PPIH group is undergoing significant changes, including market size reduction due to declining birthrates and aging population, real wage decrease due to rising prices, intensified price competition and industry restructuring, and increased foreign tourists and foreign population. Viewing these anticipated environmental changes as revenue opportunities, the group has formulated a long-term management plan called "Double Impact 2035" as a strategy to achieve further growth, aiming for net sales of 4.2 trillion yen and operating income of 330 billion yen in the fiscal year ending June 30, 2035.

On the other hand, the Company's group (comprising the Company along with its 27 consolidated subsidiaries, one non-consolidated subsidiary, and two non-equity-method associates; hereinafter the same) uphold the basic philosophy of "Selling Honesty" and maintain the basic management policy of "providing customers with products that satisfy the customers in terms of freshness, quality, and price" and "continuing to be a corporate group trusted by business partners, local communities, and employees."

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Under this basic policy, with the motto of continuing to "provide better products at lower prices," the Company's group have been managing their business with the aim of meeting the expectations of customers, shareholders, and business partners, and contributing to the realization of a more prosperous society. In recent years, the management environment surrounding the Company's group has become increasingly challenging, and various factors have been identified as potentially worsening, such as a decrease in the workforce due to declining birthrates and aging population, rising labor costs, intensified competition for customer acquisition across industries and business types, further diversification of customer values, and rapid changes in the sales environment. In response, the Company's group has promoted strategies for business expansion and improved profitability based on four key strategies: (i) expanding market share through dominance in one metropolitan area and three prefectures, (ii) focusing on low-cost operations and cash flow, (iii) pursuing a business format strategy oriented towards specialty stores, and (iv) efficient management and business expansion measures of the Company's group. However, the management environment surrounding the Company's group remains challenging, with continued impacts from high inflation leading to sluggish personal consumption, accelerated competition and price wars with different industries and business types, and rising labor and logistics costs. The current performance outlook also remains unstable. In such circumstances, to respond to significant changes in the management environment surrounding the Company's group, achieve medium- to long-term corporate value enhancement, and fulfill social responsibilities to various stakeholders, they have concluded that it is necessary to consider strategic alliances to build a stronger management foundation. Thus, they have begun examining the Business Integration.

In January 2026, the Company initiated a bidding process (hereinafter the "Bidding Process") for the selection of a strategic partner involving corporate restructuring activities through Mizuho Bank, Ltd. (hereinafter "Mizuho Bank"). Later, in late January 2026, after receiving letters of intent from five companies, including PPIH, the Company carefully compared and evaluated each candidate's understanding of the Company, assessment of share value, strategies leading to business expansion, corporate restructuring structures, and other factors based on the content of each of their letters of intent. As a result, the Company chose PPIH as the final candidate for a strategic partner.

Subsequently, after extensive discussions, the Companies recognized that by the Company becoming a wholly owned subsidiary of PPIH, there is an expectation of creating mutually complementary synergies by combining the strengths of the wide-ranging business of the Company's group, including both food and non-food sectors, with PPIH's procurement power, promotional capabilities, store operation know-how, and scale advantages. Additionally, the Companies have concluded that by becoming a non-listed company, the Company can establish a system that allows for rapid decision-making and the realization of management strategies from a more medium- to long-term perspective, without being constrained by short-term evaluations from the stock market.

Based on the above, the Companies have determined that making the Company a wholly owned subsidiary of PPIH will contribute to further enhancement of corporate value for the Companies and be beneficial to the shareholders of the Companies. Therefore, on April 6, 2026, the Boards of Directors of the Companies resolved to proceed with the Business Integration and concluded the Share Exchange Agreement between the Companies.

The specific synergies that the Companies expect to achieve through the Business Integration are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Synergy in store openings and business format development

Approximately two thirds of the Company's stores are located in Tokyo, significantly contributing to the expansion of the PPIH group's store network in the Tokyo metropolitan area. As a result of considerations based on catchment area and location, it has been determined that cases where competition with the PPIH group's existing stores is expected are limited, allowing for the expansion of the store network.

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It is expected that the conversion of these stores to the "Don Quijote," "MEGA Don Quijote," or other store brands will contribute to achieving PPIH's plan to open approximately 250 stores in the next ten years.

Additionally, for the new format "Robin Hood," which PPIH plans to open 200 to 300 stores by 2035, the Share Exchange is expected to enable comprehensive regional expansion centered around the Kanto area, and is anticipated to accelerate both the launch of the new format and the pace of store openings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Synergy with existing businesses (in terms of MD and operations)

The Company believes that integrating the price competitiveness in food products and daily necessities possessed by both the PPIH group and the Company's group with the Company's group's expertise in non-food categories is expected to lead to the strengthening of competitiveness in the non-food category, for the entire PPIH group.

An improvement in profitability, primarily for the Company's group, is anticipated from the cost reduction effects through the unification of purchase agreements and other measures. Additionally, acquiring human resources with a high affinity for the Discount Store Business and non-food specialized category, along with promoting post-merger integration (PMI) that leverages the performance at UNY and Nagasakiya, will actualize integration effects ahead of schedule.

2. Summary of the content of the Share Exchange Agreement

The content of the Share Exchange Agreement entered into on April 6, 2026 between the Company and PPIH is as follows:

Share Exchange Agreement

Pan Pacific International Holdings Corporation ("PPIH") and Olympic Group Corporation ("Olympic Group") hereby agree as follows and enter into a share exchange agreement (this "Agreement") as of April 6, 2026 (the "Execution Date of this Agreement").

Article 1 (Share Exchange)

PPIH and Olympic Group conduct a share exchange (the "Share Exchange") whereby PPIH shall become a wholly owning parent company and Olympic Group shall become a wholly owned subsidiary, in accordance with the provisions of this Agreement. As a result of the Share Exchange, PPIH shall acquire all of the issued shares of Olympic Group.

Article 2 (Trade Names and Addresses of Wholly Owning Parent Company and Wholly Owned Subsidiary Resulting from the Share Exchange)

The trade names and addresses of PPIH and Olympic Group are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) PPIH (wholly owning parent company resulting from the share exchange)

Trade Name: Pan Pacific International Holdings Corporation

Address: 2-25-12 Dogenzaka, Shibuya-ku, Tokyo

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Olympic Group (wholly owned subsidiary resulting from the share exchange)

Trade Name: Olympic Group Corporation

Address: 4-12-1 Honcho, Kokubunji-shi, Tokyo, Japan

Article 3 (Shares to be Issued and Allotted in the Share Exchange)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In the Share Exchange, PPIH shall issue, to the shareholders of Olympic Group (meaning the shareholders after
the cancellation of treasury shares by Olympic Group under Article 9; hereinafter the same applies in this Article) existing immediately prior to the time when PPIH acquires all of the issued shares of Olympic Group as a result of the Share Exchange
(the "Record Time"), the common shares of PPIH in a number obtained by multiplying the total number of the common shares of Olympic Group held by such shareholders by 1.18.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the Share Exchange, PPIH shall allocate to the shareholders of Olympic Group as of the Record Time the
common shares of PPIH at a ratio of 1.18 for each one common share of Olympic Group held by such shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the number of the common shares of PPIH that PPIH delivers to the shareholders of Olympic Group as of the
Record Time pursuant to the preceding two paragraphs includes fractional shares less than one share, PPIH shall handle such fractional shares under the provisions of Article 234 of the Companies Act and any other relevant laws and regulations.

Article 4 (Matters Concerning Amount of PPIH's Capital and Reserves)

The amount of PPIH's capital and reserves to be increased resulting from the Share Exchange shall be determined by PPIH as appropriate under Article 39 of the Regulation on Corporate Accounting.

Article 5 (Effective Date)

The effective date of the Share Exchange (the "Effective Date") shall be July 1, 2026; provided, however, that if it is necessary due to the procedural requirements of the Share Exchange or any other reasons, PPIH and Olympic Group may change the Effective Date by mutual agreement upon consultation.

Article 6 (Approval of Shareholders' Meeting)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. PPIH shall conduct the Share Exchange without obtaining the approval of a Shareholders' Meeting as
stipulated in Article 795, paragraph 1 of the Companies Act with respect to this Agreement, under the provisions of the main clause of Article 796, paragraph 2 of the Companies Act; provided, however, that if approval concerning this Agreement by a
resolution of a Shareholders' Meeting of PPIH becomes necessary pursuant to Article 796, paragraph 3 of the Companies Act, PPIH shall seek approval by a resolution of the Shareholders' Meeting for this Agreement and any other matters
necessary for the Share Exchange by the day immediately before the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Olympic Group shall, by the day immediately before the Effective Date, seek approval by a resolution of the
Shareholders' Meeting for this Agreement and any other matters necessary for the Share Exchange at a Shareholders' Meeting as stipulated in Article 783, paragraph 1 of the Companies Act.

Article 7 (Management of Company Assets, etc.)

PPIH and Olympic Group shall, by themselves or through their respective subsidiaries, from the Execution Date of this Agreement until the Effective Date, conduct their business and manage and operate their assets with the due care of a prudent administrator, and if they intend to conduct any act that may materially affect their assets or rights and obligations or the execution of the Share Exchange or the terms and conditions of the Share Exchange, they shall do so only after prior consultation with, and obtaining the prior consent of, the other party.

Article 8 (Distribution of Surplus)

From the Execution Date of this Agreement, neither PPIH nor Olympic Group shall: (i) adopt any resolution for the distribution of surplus with the Record Date prior to the Effective Date; or (ii) adopt any resolution for the acquisition of treasury shares with an acquisition date prior to the Effective Date (except where such acquisition of treasury shares is required in response to the exercise of shareholders' rights in accordance with applicable laws and regulations).

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Article 9 (Cancellation of Treasury Shares)

Olympic Group shall, by resolution of its Board of Directors held by the day immediately before the Effective Date, cancel all treasury shares held by Olympic Group at the Record Time (including the treasury shares acquired by Olympic Group as a result of the purchase of shares pursuant to the dissenting shareholders' appraisal rights under Article 785, paragraph 1 of the Companies Act exercised in connection with the Share Exchange).

Article 10 (Modification of Terms of the Share Exchange and Termination of this Agreement)

If, during the period from the Execution Date of this Agreement to the Effective Date, any material change occurs in the assets or financial condition of PPIH or Olympic Group; any situation arises that significantly impedes the execution of the Share Exchange; or achieving the purpose of this Agreement otherwise becomes difficult, due to natural disasters, acts of God, or any other reasons, PPIH and Olympic Group may, by mutual agreement upon consultation, modify the terms and conditions of the Share Exchange and other matters set forth in this Agreement, or terminate this Agreement.

Article 11 (Effect of this Agreement)

This Agreement shall cease to be effective in any of the following cases:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If approval by a resolution of the PPIH's Shareholders' Meeting is required pursuant to the
provisions of the proviso to Article 6, paragraph 1, and such approval by resolution of PPIH's Shareholders' Meeting is not obtained by the day immediately before the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If approval by resolution of Olympic Group's Shareholders' Meeting as stipulated in Article 6,
paragraph 2 is not obtained by the day immediately before the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If PPIH or Olympic Group fails to obtain, by the Effective Date, any approval, consent or other authorization
from the relevant governmental authorities or agencies required under laws and regulations to implement the Share Exchange; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If this Agreement is terminated pursuant to the provisions of the immediately preceding Article.

Article 12 (Governing Law and Jurisdiction)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Agreement, and all rights and obligations of PPIH and Olympic Group under or in connection with this
Agreement, shall be governed by and construed in accordance with the laws of Japan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For any and all disputes between PPIH and Olympic Group arising under or in connection with this Agreement, the
Tokyo District Court shall have exclusive jurisdiction as the court of first instance.

Article 13 (Matters for Consultation)

In addition to the matters provided for in this Agreement, any matters necessary for the Share Exchange shall be determined through good-faith consultation and agreement between PPIH and Olympic Group in accordance with the purpose of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate by affixing their names and seals thereon, and each party shall keep one copy of the originals.

April 6, 2026

PPIH:

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Pan Pacific International Holdings Corporation

2-25-12 Dogenzaka, Shibuya-ku, Tokyo, Japan

Hideki Moriya, President & CEO, Representative Director

Olympic Group:

Olympic Group Corporation

4-12-1 Honcho, Kokubunji-shi, Tokyo, Japan

Toru Oshitanai, President and Representative Director

3. Matters related to the appropriateness of the consideration for the exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters related to the total number of the consideration for the exchange and the appropriateness of the
allocation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The detail of allotment of shares in the Share Exchange

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| | | |
|:---|:---|:---|
|  | PPIH<br> (wholly owning parent company<br> resulting from a share exchange) | The Company<br> (wholly owned subsidiary<br>resulting from a share exchange) |
| Allotment ratio in the Share Exchange | 1 | 1.18 |
| Number of shares to be delivered through the Share Exchange | Common shares of PPIH: 27,105,250 shares (planned) | Common shares of PPIH: 27,105,250 shares (planned) |

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(Note 1) Allotment ratio of shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 shares of the common shares of PPIH (hereinafter the "PPIH's Shares") shall be allotted and delivered per Company's Share. The aforementioned allotment ratio in the Share Exchange (hereinafter the "Share Exchange Ratio") may be modified in the event of a material change in the terms and conditions on which the calculation is based through mutual consultation and agreement of the Companies.

(Note 2) The number of the PPIH's Shares to be delivered through the Share Exchange

The aforementioned number of the PPIH's Shares is calculated based on the total number of the issued shares of the Company (23,354,223 shares) and its treasury shares (383,672 shares) as of November 30, 2025.

In the Share Exchange, PPIH will allot and deliver 27,105,250 shares (planned) of the PPIH's Shares to the shareholders of the Company (meaning shareholders after the cancellation of treasury shares as described below) as of the time immediately prior to PPIH's acquisition of all the issued shares of the Company (hereinafter the "Record Time"). PPIH intends to use treasury shares held by PPIH as the shares to be delivered.

The Company plans to cancel, at the Record Time, all the treasury shares held by it as of the Record Time (including shares acquired in response to share purchase demands from dissenting shareholders in connection with the Share Exchange under Article 785, paragraph (1) of the Companies Act) by resolution at its Board of Directors meeting to be held on or before the day preceding the effective date of the Share Exchange. The number of shares to be allotted and delivered in the Share Exchange is subject to change due to acquisition or cancellation of the Company's treasury shares or for other reasons.

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(Note 3) Treatment of shares less than one unit

The Company's shareholders who will hold less than one unit (less than 100 shares) of the PPIH's Shares subsequent to the Share Exchange may use the following systems for the PPIH's Shares on and after the effective date of the Share Exchange. The shareholders, however, cannot sell such shares less than one unit in financial instruments exchange markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) System of request for purchase of shares less than one unit (sale of shares less than 100 shares)

This is a system whereby shareholders of the PPIH's Shares can request PPIH to purchase the shares less than one unit held by such shareholders under the provisions of Article 192, paragraph (1) of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) System of request for additional purchase of shares less than one unit (additional purchase to reach 100
shares)

This is a system whereby shareholders holding less than one unit of the PPIH's Shares can request PPIH to sell the number of shares that would, together with the number of shares less than one unit held by such shareholders, constitute one unit (100 shares) and purchase such shares from PPIH under the provisions of Article 194, paragraph (1) of the Companies Act and PPIH's Articles of Incorporation.

(Note 4) Method of treating fractional shares less than one share

For the Company's shareholders who will be allotted fractional shares less than one PPIH's Share in the Share Exchange, PPIH will sell the PPIH's Shares equivalent to the total sum of such fractional shares (shares less than one share included in the total sum shall be rounded down) and pay the proceeds of such sale to the aforementioned shareholders in proportion to the fractional shares attributed to them, under the provisions of Article 234 of the Companies Act and other applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Basis for the details of allotment of shares in the Share Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Basis and reason for details of allotment

In order to ensure the fairness and appropriateness of the calculation of the Share Exchange Ratio mentioned above in (A) "The detail of allotment of shares in the Share Exchange," the Companies separately requested a third-party appraiser independent from the respective company to calculate the Share Exchange Ratio. PPIH appointed PLUTUS CONSULTING Co., Ltd. (hereinafter "Plutus"), and the Company appointed Deloitte Tohmatsu LLC (hereinafter "Deloitte Tohmatsu"), as their respective third-party appraisers.

With respect to PPIH, as described below in (4)(A) "Measures to secure fairness," PPIH had careful discussions and deliberations on the Share Exchange Ratio based on, among other things, the valuation report on the share exchange ratio received from Plutus, PPIH's independent third-party appraiser, the advice received from its legal advisor, Nagashima Ohno & Tsunematsu, and the results of the due diligence conducted by PPIH on the Company. In addition, PPIH took into consideration its track record of expanding the business base of the PPIH group through past M&A transactions and generating synergies by leveraging the acquired companies' brands, merchandise, procurement and logistics functions, and operational expertise, including whether concrete synergies can be expected from the Business Integration. As a result, PPIH concluded that the Share Exchange Ratio is appropriate and will contribute to the interests of the shareholders of PPIH, even though the Share Exchange Ratio exceeds the upper end of the range calculated based on the market share price method as set forth in the valuation report dated April 3, 2026 obtained from Plutus. This is because the Share Exchange Ratio falls within the range of share exchange ratios calculated based on the discounted cash flow method (hereinafter the "DCF Method") using the business plan that includes synergies expected to be realized through the Business Integration, as described below in (ii) "Matters concerning calculation." Accordingly, PPIH determined that it is appropriate to implement the Share Exchange based on the Share Exchange Ratio.

------

Meanwhile, the Company also had careful discussions and deliberations, as described below in (4)(A) "Measures to secure fairness," based on, among other things, the valuation report on the share exchange ratio obtained from its third-party appraiser, Deloitte Tohmatsu, the advice from its legal advisor, City-Yuwa Partners, and the results of the due diligence conducted by the Company on PPIH. As a result, the Company concluded that the Share Exchange Ratio is appropriate, because the Share Exchange Ratio exceeds the upper end of the range of share exchange ratios calculated based on the market share price method and the DCF method as set forth in the valuation report dated April 3, 2026 obtained from Deloitte Tohmatsu. On this basis, the Company concluded that the Share Exchange Ratio will contribute to the interests of the shareholders of the Company and, therefore, determined that it is appropriate to implement the Share Exchange based on the Share Exchange Ratio.

As described above, the Companies held multiple negotiations and consultations on the Share Exchange Ratio while referring to the valuation results concerning the share exchange ratio submitted by the respective third-party appraisers and comprehensively taking into account the financial conditions, asset statuses, future outlooks, and other factors of the Companies. As a result, the Companies have reached the decision that the Share Exchange Ratio is appropriate and will contribute to the interests of their respective shareholders, and therefore have determined that the implementation of the Share Exchange at the Share Exchange Ratio would be appropriate. The Share Exchange Ratio may, in line with the Share Exchange Agreement, be modified in the event of a material change in the terms and conditions on which the calculation is based through mutual consultation and agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Matters concerning calculation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)* Names of the appraisers and relationships with the Companies

Neither PPIH's third-party appraiser, Plutus, nor the Company's third-party appraiser, Deloitte Tohmatsu, is a related party of either of the Companies. The appraisers are independent from the Companies, and none of the appraisers has a significant interest that must be disclosed in relation to the Share Exchange.

Fees payable to Plutus for the Share Exchange are a fixed fee only and do not include a success fee that is contingent upon, among others, the successful completion of the Share Exchange. With respect to the fees payable to Deloitte Tohmatsu in connection with the Share Exchange, such fees include, in addition to a fixed fee payable regardless of whether the Share Exchange is consummated, a success fee contingent upon, among other things, the public announcement of the Share Exchange. However, the Company has determined that the inclusion of such a success fee does not impair the independence of Deloitte Tohmatsu, taking into consideration that making a portion of the fees contingent upon success is reasonable because it enables the limitation of transaction costs in the event that the Share Exchange is not consummated, and that such a fee structure is also a general market practice in similar transactions.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)* Overview of calculation

Plutus conducted its valuation as follows. With respect to PPIH, since the PPIH's Shares are listed on the Prime Market of the Tokyo Stock Exchange and have an available market price, Plutus employed the market share price method, using April 3, 2026 as the calculation reference date, and adopted the closing price of the PPIH's Shares on the Tokyo Stock Exchange on the calculation reference date, as well as the simple average closing prices for the periods of the last one month, three months, and six months preceding such calculation reference date. With respect to the Company, since the Company's Shares are listed on the Standard Market of the Tokyo Stock Exchange and have an available market price, Plutus employed the market share price method, using March 31, 2026 as the calculation reference date, and adopted the closing price of the Company's Shares on the Tokyo Stock Exchange on the calculation reference date, as well as the simple average closing prices for the periods of the last one month, three months, and six months preceding such calculation reference date. In addition, in order to reflect the status of future business activities in the valuation, Plutus also employed the DCF Method. In order to exclude the impact on the share price caused by Speculative Reporting by a magazine regarding the sale of the Company's Shares dated April 1, 2026 (hereinafter the "Speculative Reporting"), March 31, 2026 was set as the reference date for the market share price of the Company. For the DCF Method, based on past financial information of the Company, the share value was calculated by discounting future cash flows to the present value at a certain discount rate, using the business plan prepared by PPIH with the advice of ProFinX Co., an independent management strategy advisor to PPIH and the Company (hereinafter the "Business Plan"). The Business Plan includes synergies expected to be realized through the Business Integration and contains one or more fiscal years in which a significant increase or decrease in profit and free cash flow as compared with the previous fiscal year is expected. Specifically, from the fiscal year ending February 28, 2029 through the fiscal year ending February 28, 2031, as a result of the effects of capital investments made in prior fiscal years in connection with the conversion of store formats to "Don Quijote," "MEGA Don Quijote," or "Robin Hood," profit growth is expected of 71.2% year-over-year for the fiscal year ending February 28, 2029, 443.4% year-over-year for the fiscal year ending February 28, 2030, and 82.3% year-over-year for the fiscal year ending February 28, 2031. In addition, due to an increase in capital investments associated with such store format conversions, free cash flow is expected to decrease 928.9% year-over-year for the fiscal year ending February 28, 2027. It is also assumed that the Company will not pay a year-end dividend with a record date of February 28, 2026.

The calculation results for the share exchange ratio where the per-share value of the PPIH's Shares using the above valuation methods is 1, are as follows:

---

| | |
|:---|:---|
| Adopted method | Calculated share exchange ratio range |
| Market share price method | 0.44 to 0.48 |
| DCF method | 1.05 to 2.37 |

---

In calculating the share exchange ratio, Plutus has assumed that all publicly available information and information provided to Plutus are accurate and complete, and it has not made any independent verification as to the accuracy and completeness of that information. Plutus has not made any independent evaluation, appraisal or assessment, and has not requested any third-party institution to conduct any appraisal or assessment, in connection with any assets or liabilities (including financial derivatives, off-balance-sheet assets and liabilities, and other contingent liabilities) of the Companies and their affiliates. Plutus has assumed the future financial forecasts and other forward-looking information of the Company has been reasonably examined or prepared by the management of the Company based on the best forecasts and judgments available at that time. Plutus has also assumed that the Business Plan has been prepared based on the information currently available to PPIH and assumptions PPIH deemed reasonable. The calculation performed by Plutus reflects the information available to it and the economic conditions as of April 3, 2026. The calculation by Plutus was performed with the sole purpose of providing it as reference for the Board of Directors of PPIH to examine the Share Exchange Ratio.

Regarding the calculation by Deloitte Tohmatsu, for PPIH, Deloitte Tohmatsu conducted the calculation of the PPIH's Shares employing the market share price method, since the PPIH's Shares are listed on the Tokyo Stock Exchange Prime Market and their market prices are available.

------

For the Company, Deloitte Tohmatsu conducted the calculation of the Company's Shares employing the market share price method, since the Company's Shares are listed on the Tokyo Stock Exchange Standard Market and their market prices are available. In addition, the DCF method was employed in order to reflect the future business activities in the valuation.

For the market share price method, with respect to PPIH, April 3, 2026 was set as the calculation reference date, and the valuation was conducted using the closing price of the PPIH's Shares on the Tokyo Stock Exchange Prime Market on the calculation reference date, as well as the simple average closing prices for the periods of the last one month, three months, and six months preceding such calculation reference date. With respect to the Company, April 3, 2026, which was the business day immediately preceding the public announcement of the Share Exchange (Reference Date (i)), and March 31, 2026, which was the last trading day prior to the Speculative Reporting dated April 1, 2026 for the purpose of excluding the impact of the Speculative Reporting on the share price (Reference Date (ii)), were set as calculation reference dates. The valuation was conducted using the closing prices of the Company's Shares on the Tokyo Stock Exchange Standard Market on each calculation reference date, as well as the simple average closing prices for the periods of the last one month, three months, and six months preceding each calculation reference date. For the DCF method, the share value was calculated by discounting future cash flows, which are based on financial forecasts provided by the Company, to the present value using a certain discount rate. Additionally, the financial forecasts of the Company that formed the basis of the DCF method calculation by Deloitte Tohmatsu include one or more fiscal years for which a significant change in profit or free cash flow is expected compared with the preceding fiscal year. Specifically, through revisions to pricing policies, increased sales resulting from enhanced customer attracting power and increased sales volumes through strengthened collaboration among group companies and between business divisions, and improvements in profit margins through the consolidation of business partners and the review of transportation routes, operating profit is expected to improve by approximately 3.4 billion yen from the fiscal year ending February 28, 2026 to the fiscal year ending February 28, 2027. In addition, profit growth is expected of 82.7% year-over-year for the fiscal year ending February 28, 2028, 46.2% year-over-year for the fiscal year ending February 28, 2029, and 36.4% year-over-year for the fiscal year ending February 28, 2030. In addition, free cash flow is expected to increase 66.6% year-over-year for the fiscal year ending February 28, 2029, and 37.0% year-over-year for the fiscal year ending February 28, 2030. The synergy effects that are expected to be realized as a result of the Share Exchange are not reflected in the above financial forecasts, as it is difficult to reasonably estimate such effects at this time. It is also assumed that the Company will not pay a year-end dividend with a record date of February 28, 2026.

The valuation range of the Company where the per-share value of the PPIH's Shares using the above valuation methods is 1, is as follows:

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| | |
|:---|:---|
| Adopted method | Calculated share exchange ratio range |
| Market share price method 1 | 0.44 to 0.65 |
| Market share price method 2 | 0.43 to 0.48 |
| DCF method | 0.75 to 1.01 |

---

In calculating the share exchange ratios above, Deloitte Tohmatsu has, in principle, used information provided to it by the Companies and publicly available information as presented, and has assumed that all of such materials and information are accurate and complete. Additionally, Deloitte Tohmatsu has not made any independent verification as to the accuracy or completeness thereof, having assumed that there are no undisclosed facts to Deloitte Tohmatsu that could potentially have a significant impact on the calculation of the share exchange ratios. Furthermore, Deloitte Tohmatsu has not made any independent evaluation, appraisal or assessment, and has not requested any third-party institution to conduct any appraisal or assessment, in connection with any assets or liabilities (including financial derivatives, off-balance-sheet assets and liabilities, and other contingent liabilities) of the Companies and their affiliates. Deloitte Tohmatsu has assumed the information related to financial forecasts of the Company referenced for the calculation has been reasonably prepared by the management of the Company based on the best forecasts and judgments available at that time. The calculation of the share exchange ratios by Deloitte Tohmatsu reflects the information available to it and the economic situation as of April 3, 2026.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters concerning the appropriateness of the amounts of PPIH's capital and reserves

The amounts of PPIH's capital and reserves to be increased resulting from the Share Exchange shall be determined by PPIH as appropriate under the provisions of Article 39 of the Regulation on Corporate Accounting. This handling is determined within the scope of applicable laws and regulations after comprehensive consideration and review of PPIH's financial condition, capital policy, and other circumstances, and the Company believes that it is appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Reasons for selecting the PPIH's Shares as consideration for the exchange

The Company and PPIH have selected shares of PPIH, the wholly owning parent company resulting from a share exchange, as consideration for the Share Exchange.

The Company considers this selection appropriate, taking into account: (1) the PPIH's Shares are listed on the Prime Market of the Tokyo Stock Exchange, and trading opportunities will continue to be available on that market even after the Share Exchange is effective; and (2) the Company's shareholders can also expect to benefit from the synergies described in 1. "Reasons for Conducting the Share Exchange" above by receiving the PPIH's Shares as consideration for the exchange.

On the effective date of the Share Exchange (scheduled for July 1, 2026), the Company will become a wholly owned subsidiary of PPIH. Therefore, the Company's Shares are scheduled to be delisted as of June 29, 2026 (the final trading day is scheduled for June 26, 2026) through prescribed procedures in accordance with the delisting criteria of the Tokyo Stock Exchange.

Following the delisting, it will no longer be possible to trade the Company's Shares on the Tokyo Stock Exchange. However, the PPIH's Shares to be allotted to the Company's shareholders through the Share Exchange are listed on the Prime Market of the Tokyo Stock Exchange. Therefore, although some of the Company's shareholders may only receive an allotment of shares constituting less than one unit, the PPIH's Shares constituting one or more units can be traded on a financial instruments exchange market on or after the effective date of the Share Exchange. Accordingly, the Companies believe that the liquidity of the shares will continue to be provided.

The Company's shareholders who will hold less than one unit of the PPIH's Shares subsequent to the Share Exchange will not be able to sell such shares less than one unit on a financial instruments exchange market, but will be able to use the systems of request for purchase and additional purchase of shares less than one unit. For details of such handling, please refer to (Note 3) "Treatment of shares less than one unit" in (1)(A) "The detail of allotment of shares in the Share Exchange" above. Also, for details regarding the handling of fractional shares less than a single PPIH's Share allotted in the Share Exchange, please refer to (Note 4) "Method of treating fractional shares less than one share" in (1)(A) "The detail of allotment of shares in the Share Exchange" above.

------

The Company's shareholders can trade the Company's Shares held by them as usual until June 26, 2026 (scheduled), which is the last trading date, on the Tokyo Stock Exchange Standard Market, and can also execute their legal rights provided for in the Companies Act and other related laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Matters considered to ensure that the interests of the Company's shareholders are not impaired

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Measures to secure fairness

Through the Business Integration brought about by the Share Exchange, the Company, which is a listed company, will become a wholly owned subsidiary resulting from a share exchange of PPIH. Therefore, the Companies have taken the following measures to secure fairness in the Share Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Implementation of bidding procedures

As stated above in 1. "Reasons for conducting the Share Exchange", in January 2026, the Company initiated the Bidding Process through Mizuho Bank. Later, in late January 2026, after receiving letters of intent from five companies, including PPIH, the Company carefully compared and evaluated each candidate's understanding of the Company, assessment of share value, strategies leading to business expansion, acquisition structures, and other factors based on the content of each of their letters of intent. As a result, the Company chose PPIH as the final candidate for a strategic partner.

As stated above, the Company implemented the Bidding Process and secured opportunities to obtain a wide range of proposals of strategic options for its future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Obtaining valuation reports from independent third-party appraisers

PPIH appointed Plutus, which is a third-party appraiser independent from the Companies, and obtained a valuation report on the share exchange ratio dated April 3, 2026. For an outline of the valuation report, please refer to (1)(B)(ii) "Matters concerning calculation" above. The Company appointed Deloitte Tohmatsu, which is a third-party appraiser independent from the Companies, and obtained a valuation report on the share exchange ratio dated April 3, 2026. For an outline of the valuation report, please refer to (1)(B)(ii) "Matters concerning calculation" above. Neither of the Companies has obtained an opinion (fairness opinion) from the respective third-party appraisers stating that the Share Exchange Ratio is appropriate or fair from a financial viewpoint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Advice from an independent law firm

PPIH appointed Nagashima Ohno & Tsunematsu, and the Company appointed City-Yuwa Partners as their respective legal advisors for the Business Integration including the Share Exchange, and they respectively obtained advice from a legal perspective concerning various procedures for the Share Exchange and the decision-making method. Nagashima Ohno & Tsunematsu and City-Yuwa Partners are independent from, and have no material interests in the Companies in relation to the Business Integration including the Share Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Measures to avoid conflicts of interest

As of April 6, 2026, when PPIH and the Company decided to conduct the Share Exchange, they do not hold shares in each other, have no personnel relationships such as dispatching officers to each other, and have no special capital, personnel, and business relationships. Therefore, it is considered that no particular conflict of interest arises between the Companies in the decision-making process of the Boards of Directors regarding the Share Exchange. Consequently, no special measures have been taken other than those mentioned in (A) "Measures to secure fairness" above.

------

4. Matters to be considered regarding consideration for the exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Provisions of Articles of Incorporation of PPIH

In accordance with laws and regulations and Article 13, paragraph (2) of the Company's Articles of Incorporation, the PPIH's Articles of Incorporation are not included in the document provided to shareholders who have requested a hard copy (the document containing matters subject to electronic provision); however, they are posted on the Company's website (https://www.olympic-corp.co.jp/ir/meeting), the website for materials for the Shareholders' Meeting (https://d.sokai.jp/8289/teiji/), and the Tokyo Stock Exchange website (https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters concerning the method of realizing the consideration for the exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Market for trading the consideration for the exchange

The PPIH's Shares are traded on the Prime Market of the Tokyo Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Persons acting as intermediaries, brokers, or agents for trading the consideration for the exchange

The PPIH's Shares are traded through financial instruments dealers (securities firms, etc.) nationwide, including brokerage and agency services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If there are restrictions on the transfer or other disposition of the consideration for the exchange, the
details thereof

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters concerning the market price of the consideration for the exchange

The average closing prices of the PPIH's Shares on the Prime Market of the Tokyo Stock Exchange calculated over the one-month, three-month, and six-month periods, one business day prior to the announcement date (April 6, 2026) of the execution of the Share Exchange Agreement as a reference date, were 997.9 yen, 968.4 yen, and 958.8 yen, respectively. The market price and other information of the PPIH's Shares can be viewed on the Tokyo Stock Exchange's website (https://www.jpx.co.jp/) and other sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Content of PPIH's balance sheets for each fiscal year ended in the past five years

PPIH has submitted Annual Securities Report for each fiscal year pursuant to Article 24, paragraph 1 of the Financial Instruments and Exchange Act; therefore, the information is not included herein.

5. Matters concerning the appropriateness of provisions regarding stock acquisition rights related to the Share
Exchange

Not applicable.

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6. Matters concerning financial statements, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Content of financial statements for PPIH's most recent fiscal year

In accordance with laws and regulations and Article 13, paragraph (2) of the Company's Articles of Incorporation, the contents of the financial statements, etc., for PPIH's most recent fiscal year (July 1, 2024 to June 30, 2025) are not included in the document delivered to shareholders who have requested a hard copy (the document containing matters subject to electronic provision); however, they are posted on the Company's website (https://www.olympic-corp.co.jp/ir/meeting), the website for materials for the Shareholders' Meeting (https://d.sokai.jp/8289/teiji/), and the Tokyo Stock Exchange website (https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters concerning dispositions of significant assets, incurrence of major liabilities, or other events
occurring after the end of the most recent fiscal year of the Company and PPIH that significantly affect the status of company assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At a meeting of its Board of Directors held on April 6, 2026, the Company resolved to conduct the Share
Exchange with PPIH, whereby PPIH will become the wholly owning parent company resulting from a share exchange and the Company will become the wholly owned subsidiary resulting from a share exchange, and entered into the Share Exchange Agreement on
the same date. The contents of the Share Exchange Agreement are as described in "2. Summary of the Share Exchange Agreement" above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company plans to cancel all treasury shares held as of the reference time (including shares acquired in
response to share repurchase requests from dissenting shareholders pursuant to Article 785, paragraph 1 of the Companies Act concerning the Share Exchange) by the Record Time, based on a resolution of the Board of Directors to be held by the day
before the effective date of the Share Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) PPIH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) PPIH implemented a stock split at a ratio of five (5) shares for each one (1) PPIH's Share,
with an effective date of October 1, 2025, pursuant to a resolution of its Board of Directors dated August 18, 2025. PPIH had previously granted points for "majica," the PPIH group's electronic money, to shareholders
holding 100 shares or more whose names were recorded in PPIH's shareholder register as of June 30 or December 31 of each year prior to the stock split. However, in connection with the stock split, PPIH has applied the following
criteria to shareholder benefits for shareholders whose names are recorded in PPIH's shareholder register as of December 31, 2025, based on the number of shares held after the stock split.

---

| | |
|:---|:---|
| Number of Shares Held | Details of the Benefits |
| 100 shares or more but less than 300 shares | Grant of 300 yen worth of majica points |
| 300 shares or more but less than 500 shares | Grant of 1,000 yen worth of majica points |
| 500 shares or more | Grant of 2,000 yen worth of majica points |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At a meeting of its Board of Directors held on April 6, 2026, PPIH resolved to conduct the Share Exchange
with the Company, whereby PPIH will become the wholly owning parent company resulting from a share exchange and the Company will become the wholly owned subsidiary resulting from a share exchange, and entered into the Share Exchange Agreement on the
same date. The contents of the Share Exchange Agreement are as described in 2. "Summary of the Share Exchange Agreement" above.

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**Business Report** 

(From March 1, 2025 to February 28, 2026)

**1.** **Matters concerning the current status of the Corporate Group** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Business performance for the fiscal year under review

1) Business progress and its results

During the fiscal year under review, Japan's economy showed a gradual recovery trend against the backdrop of a recovery in inbound demand and active capital investment in DX and labor-saving. In the retail industry, while increased inbound demand contributed to the growth, consumers became more budget-minded due to geopolitical risks, the continued depreciation of the yen, and high raw material costs resulting in soaring prices that outpaced real wages. On the management side, soaring energy and logistics costs and increased labor costs associated with higher minimum wages put pressure on earnings, creating a difficult business environment that challenged the balance between price pass-through and customer attraction.

In this environment, the Group has implemented various measures to further improve management efficiency and establish a foundation for new growth while responding to customer needs.

In the food products field, we have promoted the creation of distinctive stores, talent, and products chosen by customers under the three brands of Olympic, Amaike, and Miuraya, while reorganizing prices and items. In Olympic, we integrated manufacture and sales to build a system that enabled us to respond quickly to customer needs. In Amaike, we sought to create local community-based supermarkets that will be popular with customers while reducing costs by standardizing store operations. In Miuraya, we have been offering product lineups only available at Miuraya including local confectionery brands, while enjoying benefits from the grouping such as system integration. In the outside sales segment (school lunch business), we are working to strengthen new sales by newly establishing Hachioji Sales Office.

In the non-food products field, we have been meeting customer needs in a wide range of fields including discount stores, pets, DIY and gardening, home facilities, and bicycles. In the discount store business, we responded to seasonal and regional customer needs with product lineups centered on daily necessities, and worked to improve management efficiency by reducing inventories. In the pet business, Your Petia, Animal General Medical Center, and Your Petia Salon worked together to establish a service system that can provide high customer satisfaction. In the DIY and gardening business, Ouchi DEPO has responded to demand from both professional and general customers in a meticulous manner. In the housing facility field, OSC Home Facility focused on solving inconvenience in housing such as installation of an air conditioner, while strengthening its home appliance and interior/exterior remodeling businesses, resulting in a significant expansion in the scale of its business. In the bicycle business, Cycle Olympic and OSC Cycle are working together to differentiate themselves from competitors by developing proprietary products such as private brand products and strengthening sales, including e-commerce websites.

As seen above, we promoted aggressive sales activities in each field such as remodeling the sales floors of existing stores, and closed 10 stores to concentrate management resources for better management efficiency.

------

On the administration side, we have continued high-level wage increase from the previous year, and proceeded with the enhancement of operational efficiency by improving store operations throughout the Group to thoroughly reduce expenditures.

As a result, operating revenue for the fiscal year under review, which is the sum of net sales and sales from services, amounted to ¥98,157 million, down 0.5% year on year, while gross operating income was ¥36,848 million, down 1.2% year on year, due to a recovery in the number of customers, price reductions of mainstay products as a measure against competitors, and clearance sales at closed stores. Operating loss was ¥2,372 million, compared to operating income of ¥51 million in the previous fiscal year, and ordinary loss amounted to ¥2,621 million, compared to ordinary loss of ¥164 million in the previous fiscal year. Loss attributable to owners of parent was 3,798 million yen, compared to loss attributable to owners of parent of ¥67 million in the previous fiscal year, due to loss on store closings and impairment losses, despite the receipt of operating compensation and settlement payment related to store closings.

Net sales of the Group as a whole by segment are as follows.

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| | | | |
|:---|:---|:---|:---|
| Segment name | Consolidated net sales<br>(Millions of yen) | Composition ratio<br>(%) | YoY change<br>(%) |
|  Foods | 62179 | 68.5 | 103.3 |
|  Non-food | 28630 | 31.5 | 91.3 |
|  Total | 90809 | 100.0 | 99.2 |

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2) Capital investments

The total amount of capital investments made by the Group in the fiscal year under review was ¥969 million. Among them, major investments are shown below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Major facilities acquired during the fiscal year under review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishment of Miuraya Hachioji Sales Office

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. New installation and expansion of major facilities that were ongoing during the fiscal year under review

There are no special matters to be noted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Sale, removal, or loss of significant non-current assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Removal of Mitaka Store

3) Financing activities

Not applicable.

4) Business transfers, absorption-type company splits, and incorporation-type company splits

Not applicable.

5) Acquisitions of other companies' businesses

Not applicable.

6) Succession of the rights and obligations of the businesses of other corporations, etc. under absorption-type mergers or absorption-type company splits

Olympic Co., Ltd., OSC Meat Co., Ltd. and OSC Fish Co., Ltd., wholly-owned subsidiaries of the Company, were merged through an absorption-type merger, effective September 1, 2025, with Olympic Co., Ltd. as the surviving company and OSC Meat Co., Ltd. and OSC Fish Co., Ltd. as the absorbed companies. As a result of this merger, Olympic Co., Ltd. succeeded to all rights and obligations related to the businesses of OSC Meat Co., Ltd. and OSC Fish Co., Ltd.

7) Acquisition or disposal of shares, other equity, share acquisition rights, etc. of other companies (including overseas companies)

Not applicable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Trend in financial position and results of operations for the past three fiscal terms

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Category | 51st fiscal term<br>(Fiscal year ended<br>February 2023) | 52nd fiscal term<br>(Fiscal year ended<br>February 2024) | 53rd fiscal term<br>(Fiscal year ended<br>February 2025) | 54th fiscal term<br>(Fiscal year under<br>review)<br>(Fiscal year ended<br>February 2026) |
|  Net sales | (Millions of yen) | 85906 | 84562 | 91557 | 90809 |
|  Ordinary profit (loss) | (Millions of yen) | 156 | 51 | (164) | (2621) |
|  Profit (loss) attributable to owners of parent | (Millions of yen) | 108 | (477) | (67) | (3798) |
|  Basic earnings (loss) per share | (Yen) | 4.73 | (20.79) | (2.94) | (165.37) |
|  Total assets | (Millions of yen) | 64961 | 65003 | 69723 | 64648 |
|  Net assets | (Millions of yen) | 26585 | 25784 | 25155 | 21062 |
|  Net assets per share | (Yen) | 1157.37 | 1122.47 | 1095.12 | 916.93 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Significant parent and subsidiaries

1) Parent company

Not applicable.

2) Significant subsidiaries

---

| | | | | |
|:---|:---|:---|:---|:---|
| Company name | Head office<br> location | Share<br>capital | Voting<br>rights ratio<br>held by<br>the<br>Company | Principal contents of business |
| Olympic Co., LTD. | Kokubunji-shi, Tokyo | ¥100 million | 100% | Sales of food products, household goods, sporting goods and leisure goods, etc. |
| OSC Amaike Co., Ltd. | Higashikurume-shi, Tokyo | ¥10 million | 100%<br> (100%) | Sales of food products |
| Miuraya Co., Ltd. | Suginami-ku, Tokyo | ¥100 million | 100%<br> (100%) | Sales of food products |
| OSC Foods Co., Ltd. | Kokubunji-shi, Tokyo | ¥100 million | 100% | Manufacture and wholesale of prepared foods, etc. |
| OSC Bakery Co., Ltd. | Kokubunji-shi, Tokyo | ¥10 million | 100%<br> (100%) | Manufacture and wholesale of bread |
| Olympic Cellar Co., Ltd. | Kokubunji-shi, Tokyo | ¥10 million | 100%<br> (100%) | Sales of alcoholic beverages |
| OSC Fast Food Service Co., Ltd. | Kokubunji-shi, Tokyo | ¥10 million | 100% | Operation of food courts |
| Grain Coffee Roaster Co., Ltd. | Kokubunji-shi, Tokyo | ¥10 million | 100% | Operation of coffee shops, manufacture and wholesale of coffee products |
| GOUT Co., LTD. | Shibuya-ku, Tokyo | ¥100 million | 100% | Manufacture and retail of prepared foods, etc. |
| Cycle Olympic Corporation | Kokubunji-shi, Tokyo | ¥100 million | 100% | Sales of bicycles and related goods |
| OSC Cycle Corporation | Kokubunji-shi, Tokyo | ¥30 million | 100% | Planning and development of bicycles and related goods |
| Your Petia Corporation | Kokubunji-shi, Tokyo | ¥100 million | 100% | Sales of pets and related products, operation of pet etiquette classes |
| Your Petia Salon Corporation. | Kokubunji-shi, Tokyo | ¥10 million | 100%<br> (100%) | Operation of trimming salons and pet hotels |
| Animal General Medical Center Corporation | Kokubunji-shi, Tokyo | ¥30 million | 100% | Operation of veterinary hospitals |
| Ouchi DEPO Corporation | Kokubunji-shi, Tokyo | ¥100 million | 100% | Sales of DIY and gardening products |
| OSC Home Facility Co., Ltd. | Kokubunji-shi, Tokyo | ¥20 million | 100% | Building and facility construction, and sales and installation of housing facilities |
| Shoes Forest Corporation | Kokubunji-shi, Tokyo | ¥10 million | 100% | Sales of shoes |
| FOLME Corporation | Kokubunji-shi, Tokyo | ¥100 million | 100% | Store development |
| OSC Cleanness Co., Ltd. | Kokubunji-shi, Tokyo | ¥10 million | 100% | Cleaning business |
| Kirara Corporation | Akishima-shi, Tokyo | ¥300 million | 100% | Administration and operation of logistics centers |
| Score Corporation | Kokubunji-shi, Tokyo | ¥30 million | 100% | Proposal and development of systems, operation and support after deployment |
| Avance Corporation | Suginami-ku, Tokyo | ¥100 million | 100% | Insurance agency |

---

------

(Notes) 1. The figures in parentheses in the "Voting rights ratio of the Company" field are the indirect holding ratios included in the figures outside the parentheses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. OSC Meat Co., Ltd. and OSC Fish Co., Ltd., which were consolidated subsidiaries in the previous fiscal year,
were dissolved through an absorption-type merger on September 1, 2025, with Olympic Co., Ltd., a wholly-owned subsidiary of the Company, as the surviving company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. As of the last day of the fiscal year under review, there are no specified wholly-owned subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Issues to be addressed

In FY2026, Japan's economy is expected to see a gradual recovery in personal consumption due to an increase in real wages, while the soaring energy, raw material, and logistics costs associated with geopolitical risks are expected to continue. Due to these factors combined with competition intensified by new competitors entering from other industries, the business environment in the retail industry is expected to remain challenging. In this environment, the Group positions the increase of customers it attracts and the improvement of management efficiency through structural reforms as its top priorities, and will vigorously promote measures to achieve the next growth.

In the food products field, Olympic will pursue (1) strengthening categories, (2) improving productivity, (3) strengthening procurement capabilities, (4) improving brand awareness, and (5) becoming No. 1 in the local community, while Amaike will focus on strengthening products chosen by customers, and Miuraya on providing special shopping experience unique to Miuraya. In addition, Miuraya's outside sales segment will focus on developing new users in the area surrounding the newly established Hachioji Sales Office, as well as seeking to enhance logistics efficiency to further improve profitability.

In the non-food products field, discount stores will constantly offer a wide variety of attractive products including miscellaneous household goods, interior goods, clothing, sporting and outdoor goods, shoes and bags, and will strive to create sales floors where customers can visit and buy goods comfortably through store remodeling and layout optimization. In the pet business, we will realize comprehensive pet-related services "from cradle to departure" through the collaboration among Your Petia, Animal General Medical Center and Your Petia Salon, as well as expand sales channels and strengthen customer contact by opening an e-commerce website specializing in our private brand products. In the DIY and gardening business, Ouchi DEPO will strive to create stores based on the concept of "convenient and affordable for craftsmen" and "easy shopping for general customers." In the housing facility business, OSC Home Facility will differentiate itself from its competitors by establishing a system to provide one-stop service from home appliance sales to facility installation and post-installation maintenance. In the bicycle business, Cycle Olympic and OSC Cycle will work together to further polish their proprietary products such as "Root One," introduce private-brand electrically power-assisted bicycles and expand product lineups, aiming to enhance market competitiveness.

On the administration side, we will continue to reduce costs through appropriate allocation of human resources and improvement of operational efficiency.

Through these initiatives, all the companies and employees of the Group will work together to enhance our corporate value, under the Group's basic philosophy "Sell in good faith" as our invariable promise to customers, so that customers will evaluate our products as safe to buy and trustworthy because they are Olympic's products.

------

**2.** **The current status of the Company** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Officers of the Company

1) Directors and Audit and Supervisory Board Members (as of February 28, 2026)

---

| | | |
|:---|:---|:---|
| Name | Status | Areas of responsibility and significant concurrent<br> positions |
| Toru Oshitanai | President and Representative Director | (Significant concurrent positions)<br> President and Representative Director of Olympic Co., LTD.<br> Chairman and Representative Director of Miuraya, Co., Ltd.<br> President and Representative Director of OSC Foods Co., Ltd.<br> President and Representative Director of OSC Bakery Co., Ltd.<br> President and Representative Director of Olympic Cellar Co., Ltd.<br> President and Representative Director of GOUT Co., LTD.<br> Chairman, President and Representative Director of OSC Life Products Co., Ltd. |
| Nobuyuki Kanazawa | Vice President and Representative Director | (Significant concurrent positions)<br> Vice President and Representative Director of Olympic Co., LTD.<br> President and Representative Director of Your Petia Corporation<br> President and Representative Director of Your Petia Salon Corporation.<br> Vice President and Representative Director of Animal General Medical Center Corporation |
| Yoshitaka Kanazawa | Director | (Significant concurrent positions)<br> Vice President and Representative Director of Olympic Co., LTD.<br> President and Representative Director of OSC Amaike Co., Ltd.<br> President and Representative Director of Miuraya, Co., Ltd. |
| Kunihiko Toyonaga | Director | (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., LTD. |
| Yoshio Kimura | Director | General Manager of General Affairs Department<br> (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., LTD.<br> Director of OSC Amaike Co., Ltd.<br> President and Representative Director of OSC Cleanness Co., Ltd. |
| Takefumi Mori | Director | General Manager of Human Resource Department<br> (Significant concurrent positions)<br> Senior Managing Director of Olympic Co., Ltd.<br> President and Representative Director of Score Corporation |

---

------

---

| | | |
|:---|:---|:---|
| Name | Status | Areas of responsibility and significant concurrent<br> positions |
| Toshiyuki Noda | Director |  |
| Hideo Mori | Director | (Significant concurrent positions)<br> Outside Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. |
| Satoru Koyama | Director | (Significant concurrent positions)<br> Senior Managing Director of Japan Construction Equipment Manufacturers Association |
| Chikashi Moteki | Full-time Audit and Supervisory Board Member | (Significant concurrent positions)<br> Audit and Supervisory Board Member of Olympic Co., Ltd.<br> Audit and Supervisory Board Member of OSC Foods Corporation<br> Audit and Supervisory Board Member of Shoes Forest Corporation<br> Audit and Supervisory Board Member of Cycle Olympic Corporation<br> Audit and Supervisory Board Member of OSC Cycle Corporation<br> Audit and Supervisory Board Member of Your Petia Salon Corporation<br> Audit and Supervisory Board Member of Your Petia Salon Corporation<br> Audit and Supervisory Board Member of Animal General Medical Center Corporation<br> Audit and Supervisory Board Member of Ouchi DEPO Co., Ltd.<br> Audit and Supervisory Board Member of OSC Home Facility Co., Ltd.<br> Audit and Supervisory Board Member of FOLME Corporation<br> Audit and Supervisory Board Member of OSC Cleanness Co., Ltd.<br> Audit and Supervisory Board Member of Kirara Corporation<br> Audit and Supervisory Board Member of Score Corporation<br> Audit and Supervisory Board Member of Avance Corporation |
| Hiroaki Takuma | Full-time Audit and Supervisory Board Member | (Significant concurrent positions)<br> Audit and Supervisory Board Member of OSC Amaike Co., Ltd.<br> Audit and Supervisory Board Member of Miuraya Co., Ltd.<br> Audit and Supervisory Board Member of OSC Foods Corporation<br> Audit and Supervisory Board Member of OSC Bakery Co., Ltd.<br> Audit and Supervisory Board Member of Olympic Cellar Co., Ltd.<br> Audit and Supervisory Board Member of OSC Fast Food Service Co., Ltd.<br> Audit and Supervisory Board Member of Grain Coffee Roaster Co., Ltd.<br> Audit and Supervisory Board Member of GOUT Co., LTD.<br> Audit and Supervisory Board Member of Animal General Medical Center Corporation |
| Eri Shigemasu | Audit and Supervisory Board Member | (Significant concurrent positions)<br> Professor of Aoyama Gakuin University |
| Shoji Tabata | Audit and Supervisory Board Member | (Significant concurrent positions)<br> President of Shoji Tabata Certified Public Tax Accountant Office |

---

(Notes) 1. Yoshiki Kanazawa, Chairman of the Board, retired because he passed away on September 5, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Toshiyuki Noda, Hideo Mori and Satoru Koyama, Directors, are candidates for Outside Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Eri Shigemasu and Shoji Tabata, Audit and Supervisory Board Members, are Outside Audit and Supervisory Board
Members. Shoji Tabata, Audit and Supervisory Board Member, has considerable knowledge on finance and accounting as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Shoji Tabata, Audit and Supervisory Board Member, has a license of Certified Public Tax Accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company has reported Toshiyuki Noda, Hideo Mori, Satoru Koyama, Eri Shigemasu, and Shoji Tabata as
independent officers that the Tokyo Stock Exchange requires to secure for the protection of general shareholders, and the said exchange accepted the report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Pursuant to Article 427, Paragraph 1 of the Companies Act, the Company has entered into agreements with Outside
Directors and Outside Audit and Supervisory Board Members to limit their liability for damages under Article 423, Paragraph 1 of the Companies Act. The maximum amount of liability for damages under such agreements is the minimum liability amount
stipulated by law.

2) Compensation, etc. for Directors and Audit and Supervisory Board Members

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Policy, etc. on determination of details of director compensation, etc.

At the Board of Directors meeting held on February 26, 2021, the Company resolved a policy regarding the determination of the details of individual compensation, etc. for Directors. The Board of Directors has confirmed that the details of individual compensation, etc. for Directors for the fiscal year under review were in line with the policy, and determined that such compensation, etc. was aligned with the said policy.

The contents of such policy are summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Basic compensation is determined as an annual salary based on the position, years of service, performance, and
other factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance-linked compensation, etc. and non-monetary compensation, etc.
will not be introduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The timing or conditions for granting compensation, etc. will be determined on the basis of monthly payment as an
annual salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In order to ensure that each Director is evaluated comprehensively and appropriately, the Company will delegate
to the Representative Directors all decisions on the details of individual compensation, etc.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Total amount, etc. of compensation, etc. for the fiscal year under review

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Total amount of<br>compensation, etc.<br>(Millions of yen) | Total amount of compensation, etc. by type | Total amount of compensation, etc. by type | Total amount of compensation, etc. by type | Number of<br>eligible officers |
| Category | Total amount of<br>compensation, etc.<br>(Millions of yen) | Basic<br>compensation<br>(Millions of<br>yen) | Performance-<br>linked<br>remuneration,<br>etc.<br> (Millions of<br>yen) | Non-monetary<br>remuneration,<br>etc.<br> (Millions of<br>yen) | Number of<br>eligible officers |
| Director<br> [Of which Outside Directors] | 46<br> (22) | 46<br> (22) | –<br> (–) | –<br> (–) | 6<br> (3) |
| Audit and Supervisory Board Member<br> [Of which Outside Audit and Supervisory Board Member] | 15<br> (6) | 15<br> (6) | –<br> (–) | –<br> (–) | 4<br> (2) |
| Total<br> [Of which Outside Directors] | 62<br> (28) | 62<br> (28) | –<br> (–) | –<br> (–) | 10<br> (5) |

---

(Notes) 1. Six (6) of the ten (10) Directors (including one (1) Director who retired during the fiscal year under review) receive compensation, etc. from the Company's subsidiaries where they concurrently hold positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The 26th Ordinary General Meeting of Shareholders held on May 28, 1998, resolved that the maximum
compensation amount for Directors be ¥300 million per year (excluding amounts paid as salaries for employees). The number of Directors as of the conclusion of the said General Meeting of Shareholders was 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The 21st Ordinary General Meeting of Shareholders held on May 27, 1993, resolved that the maximum
compensation amount for Audit and Supervisory Board Members be ¥30 million per year. The number of Audit and Supervisory Board Members as of the conclusion of the said General Meeting of Shareholders was 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In order to ensure that each Director is evaluated comprehensively and appropriately, the Board of Directors
has delegated to President and Representative Director Toru Oshitanai all decisions on the details of individual compensation, etc.

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<u>Venue Map for the General Meeting of Shareholders</u> 

1-12-1 Nishikicho, Tachikawa-shi, Tokyo

Hotel Nikko Tachikawa Tokyo, 3rd Floor "Atlantic"

TEL: 042-521-1111 (Main)

![LOGO](g115329dsp36.jpg)

7-minute walk from the South Exit of JR Tachikawa Station (Chuo, Ome, and Nambu Lines)

8-minute walk from Tachikawa-Minami Station (Tama Monorail)

Please note that parking is limited. We kindly ask that you use public transportation.

## Exhibit 99.3

**Exhibit 99.3** 

The business integration described in this document is made for the securities of a Japanese company. The business integration is subject to disclosure requirements of Japan that are different from those of the United States. Financial statements included in this document, if any, have been prepared in accordance with Japanese accounting standards that may not be comparable to the financial statements of United States companies.

It may be difficult for you to enforce your rights and any claim you may have arising under the U.S. federal securities laws, since the issuer is located in Japan and some or all of its officers and directors may be residents of countries other than the United States. You may not be able to sue a Japanese company or its officers or directors in a Japanese court for violations of the U.S. securities laws. It may be difficult to compel a Japanese company and its affiliates to subject themselves to a U.S. court's judgment.

You should be aware that the issuer may purchase securities otherwise than under the business integration, such as in open market or privately negotiated purchases.

This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects. All dates and times are stated in Japan Standard Time (JST) in this document.

**Materials for the 54th Ordinary General Meeting of Shareholders** 

Of the items subject to measures for electronic provision, in accordance with the laws and regulations and the Company's Articles of Incorporation, the following items are not included in the paper-based documents delivered upon request for the delivery of paper-based documents.

• Reference Documents for the General Meeting of Shareholders

---

| | |
|:---|:---|
| Proposal No. 1: | Election of Seven (7) Directors (Reference) |
| Proposal No. 3: | Approval of the Share Exchange Agreement Between the Company and Pan Pacific International Holdings Corporation "Articles of Incorporation of Pan Pacific International Holdings Corporation" "Pan Pacific International Holdings Corporation's Non-Consolidated Financial Statements for the Most Recent Fiscal Year (July 1, 2024, to June 30, 2025)" (Reference) |

---

• Business Report

1. Matters Concerning the Current Status of the Corporate Group

Main Business Activities, Major Business Locations, Employee Information, Major Lenders and Loan Amounts, Other Significant Matters Concerning the Current Status of the Corporate Group

2. Current Status of the Company

Status of Company Officers - Matters Concerning Outside Directors, Status of Shares, Status of Stock Acquisition Rights, etc., Accounting Auditor

3. System Ensuring the Appropriateness of Operations, the Operational Status of the System, etc.

4. Policy on the Distribution of Retained Earnings, etc.

5. Basic Policy on Corporate Governance

------

• Consolidated Financial Statements

• Non-Consolidated Financial Statements

• Accounting Audit Report on Consolidated Financial Statements

• Accounting Audit Report on Non-Consolidated Financial Statements

• Audit Report of the Audit and Supervisory Board

54th Fiscal Term

(March 1, 2025 to February 28, 2026)

**Olympic Group Corporation** 

In accordance with the laws and regulations and Article 13, Paragraph 2 of the Articles of Incorporation of the Company, the items described above has been omitted from the paper-based documents (documents outlining electronic provision measures) delivered to shareholders who have requested a paper-based copy.

**For this General Meeting of Shareholders, regardless of whether or not a request for the delivery of the paper-based documents has been made, a paper-based document containing the items subject to electronic disclosure, excluding the aforementioned items, will be sent to all shareholders.** 

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**Reference Documents for the General Meeting of Shareholders** 

Proposal No. 1: Election of Seven (7) Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Reference)

The skills and experience of each director candidate are as follows.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| No. | Name | Management | Management<br>of<br>Subsidiaries<br>Within the<br>Group | Finance/<br>Accounting | Human Resource<br>Management/<br>Labor Relations/<br>Human Resource<br>Development | Legal Affairs/<br>Compliance | IT<br>Digital | Sustainability | International<br>Experience |
| 1 | Toru Oshitanai | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> |
| 2 | Nobuyuki Kanazawa | <sup>○</sup> | <sup>○</sup> |  |  |  | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> |
| 3 | Kunihiko Toyonaga | <sup>○</sup> | <sup>○</sup> |  |  |  |  | <sup>○</sup> |  |
| 4 | Takashi Ando |  | <sup>○</sup> | <sup>○</sup> |  | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> |  |
| 5 | Toshiyuki Noda |  |  | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> |  | <sup>○</sup> |  |
| 6 | Hideo Mori | <sup>○</sup> |  | <sup>○</sup> | <sup>○</sup> | <sup>○</sup> |  | <sup>○</sup> |  |
| 7 | Satoru Koyama |  |  |  |  | <sup>○</sup> |  | <sup>○</sup> | <sup>○</sup> |

---

Proposal No. 3: Approval of the Share Exchange Agreement Between the Company and Pan Pacific International Holdings Corporation

(Reference)

"Articles of Incorporation of Pan Pacific International Holdings Corporation"

"Pan Pacific International Holdings Corporation's Non-Consolidated Financial Statements for the Most Recent Fiscal Year (July 1, 2024, to June 30, 2025)"

Please refer to the following pages.

------

Pan Pacific International Holdings Corporation Articles of Incorporation

------

**Chapter I** 

**General Provisions** 

Article 1 (Trade Name)

The name of the Company shall be "Kabushiki Kaisha Pan Pacific International Holdings" and in English it shall be "Pan Pacific International Holdings Corporation."

Article 2 (Purpose)

1. The purpose of the Company shall be, by holding shares or equity in companies that carry out the businesses
listed in the following items (including foreign companies), associations (including those equivalent to associations in foreign countries), and other similar business entities, to control or manage the business activities thereof, as well as to
engage in businesses incidental or related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Department store retail business and other commercial activities, as well as the manufacturing, processing,
consignment, and wholesale of related products

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Sale of daily necessities, furniture, bedding, and interior goods

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Sale and repair of household electrical appliances, information and communication devices, electronic computing
equipment, household gas and oil appliances, heating and cooling equipment, plumbing equipment, water heating equipment, and fire extinguishing equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Sale of clothing, fashion accessories, haberdashery, shoes, and footwear

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Sale, repair, and processing of automobiles, automobile accessories, and bicycles

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Sale of building materials, paints, lumber, electrical construction tools and equipment, and construction tools

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Sale of pets, pet supplies, horticultural trees and plants, gardening materials, fertilizers, feed, industrial
chemicals, and veterinary pharmaceuticals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Sale of toys, stationery, books, office supplies, sporting goods, fishing gear, records, audio software, video
software, and musical instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Sale of pharmaceuticals, quasi-drugs, medical devices, health equipment, sanitary products, cosmetics, and
measuring instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Sale of precious metals, jewelry, eyeglasses, optical equipment, and art and craft items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Sale of food products, alcoholic beverages, drinking water, grains, salt, tobacco, stamps, revenue stamps,
telephone cards, gift certificates, highway tickets, and similar items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Wholesale, appraisal, mail-order sales, sale of secondhand goods, rental, and import/export of the products
listed in the preceding items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Management guidance for companies whose objectives are the businesses listed in the preceding items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Construction, management, and operation of commercial facilities, entertainment facilities, and amusement parks
such as tenants, retail stores, restaurants, specialty shops, sports facilities, karaoke boxes, game centers, and exhibition/storage sites

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Production, sale, and leasing of computer software

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Leasing, sale, brokerage, and management of real estate, and operation of parking lots

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Real estate marketing research services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Non-life insurance agency business and life insurance solicitation
services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) Agency services for home delivery, photo development, printing and enlarging, cleaning, ticket sales, airline
ticket sales, and sales of tickets for movies, theater, concerts, and sports events

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) Agency services for the collection and payment of fees related to electricity, gas, water, telephone, and
broadcast reception

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) Planning, acquisition, maintenance, utilization, and sale of industrial property rights, copyrights, and other
intangible property rights, know-how, system engineering, and other software

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) Various information provision services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) Catalog mail-order business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) Planning, production, promotion, and sale of media such as advertising, publishing, printing, video, and audio

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) Pawnshop operations and money lending business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) Travel business under the Travel Agency Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) Acquisition, holding, investment, management, and trading of securities such as stocks and bonds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) Outsourcing of accounting and administrative services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) Purchase of receivables

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) Note discounting and note purchasing services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31) Sales promotion services using mobile devices and similar technologies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32) Consulting services related to franchise systems for the businesses listed in the preceding items

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33) All businesses relating or incidental to each of the preceding items.

2. The Company may engage in the businesses specified in each item of the preceding paragraph and businesses
incidental or related thereto.

Article 3 (Location of Head Office)

The head office of the Company shall be located at Shibuya-ku, Tokyo.

Article 4 (Organs)

The Company shall have, in addition to the general meeting of shareholders and Directors, the following organs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Audit and Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accounting Auditors

Article 5 (Method of Public Notice)

The method of public notices of the Company shall be electronic public notices. However, if it is impossible to post electronic public notices because of an accident or other unavoidable circumstances, the public notices shall be made by publication in the official gazette.

**Chapter II** 

**Shares** 

Article 6 (Total Authorized Shares)

The total number of authorized shares of the Company shall be 9,360,000,000 shares.

Article 7 (Purchase of Treasury Shares)

Pursuant to the provisions of Article 165, paragraph (2) of the Companies Act, the Company may purchase its treasury shares by resolution of the Board of Directors.

Article 8 (Number of Shares per Share Unit)

The number of shares per share unit of the Company shall be 100.

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Article 9 (Requests for Sale of Shares by Shareholders Holding Less Than One Unit)

A shareholder of the Company may request that the Company sell the number of shares that, together with the number of shares less than one unit held by the shareholder, will constitute one unit of shares (hereinafter, the "Additional Purchase").

Article 10 (Rights Regarding Shares Less Than One Unit)

A shareholder of the Company may not exercise any rights other than the rights listed below regarding shares less than one unit held by the shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Rights set forth in items of Article 189, paragraph (2) of the Companies Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Rights to request an acquisition of shares with put option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Right to receive the allotment of shares for subscription or share acquisition rights for subscription; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Right to request the Additional Purchase of shares less than one unit prescribed in the preceding Article.

Article 11 (Shareholder Register Administrator)

1. The Company shall have a shareholder register administrator.

2. The shareholder register administrator and the location of business thereof shall be designated by resolution
of the Board of Directors.

3. The preparation and retention of the shareholder register and the share acquisition right register of the
Company, as well as other administrations relating thereto, shall be outsourced to the shareholder register administrator and shall not be handled by the Company itself.

Article 12 (Share Handling Regulations)

Handling of the Company's shares and the fees therefor shall be in accordance with the Share Handling Regulations established by the Board of Directors, in addition to laws and regulations and these Articles of Incorporation.

Article 13 (Record Date)

1. Those shareholders who are listed or recorded in the final shareholder register as of June 30 of each year
shall be entitled to exercise the shareholder's rights at the annual general meeting of shareholders for such business year.

2. In addition to the items stipulated in these Articles of Incorporation, if necessary, the Company may specify
an extraordinary record date by a resolution of the Board of Directors and upon giving prior public notices.

**Chapter III** 

**General Meetings of Shareholders** 

Article 14 (Convocation)

An annual general meeting of shareholders of the Company shall be convened in September every year. An extraordinary general meeting of shareholders shall be convened whenever necessary.

Article 15 (Measures, etc. for Providing Information in Electronic Format)

1. When the Company convenes a general meeting of shareholders, it shall take measures for providing information
that constitutes the content of reference documents for the general meeting of shareholders, etc. in electronic format.

2. Among items for which the measures for providing information in electronic format will be taken, the Company
may exclude all or some of those items designated by the Ministry of Justice Order from statements in the paper-based documents to be delivered to shareholders who requested the delivery of paper-based documents by the record date of voting rights.

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Article 16 (Convener and Chairperson of General Meetings of Shareholders)

1. Unless otherwise provided for by laws and regulations, general meetings of shareholders shall be convened and
chaired by the Representative Director determined by resolution of the Board of Directors.

2. In cases where the Representative Director is unable to do so, another Director, designated in accordance with
an order of priority determined in advance by the Board of Directors, shall convene general meetings of shareholders and chair the meetings.

Article 17 (Method of Resolution)

1. Unless otherwise provided for by laws and regulations and these Articles of Incorporation, resolutions of a
general meeting of shareholders shall be adopted by a majority of the votes of the shareholders who are present at the meeting and entitled to exercise their voting rights at such meetings.

2. Special resolutions under Article 309, paragraph (2) of the Companies Act shall be adopted by at least two-thirds of the votes of the shareholders present at the meeting where the shareholders holding at least one-third of the voting rights of the shareholders entitled to
exercise their voting rights at such meeting are present.

Article 18 (Proxy Voting)

1. Shareholders may exercise their voting rights at a general meeting of shareholders by appointing as a proxy one
other shareholder of the Company with voting rights for such meeting.

2. A shareholder or a proxy must submit to the Company a document evidencing the proxy's authority at each
general meeting of shareholders.

Article 19 (Minutes)

The substance of proceedings at the general meeting of shareholders, the results thereof and other matters stipulated by laws and regulations shall be entered or recorded in the minutes of the general meeting of shareholders.

**Chapter IV** 

**Directors and Board of Directors** 

Article 20 (Number of Directors)

1. The number of Directors of the Company (excluding Directors serving as Audit and Supervisory Committee Members)
shall be no more than 20.

2. The number of Directors serving as Audit and Supervisory Committee Members shall be no more than seven.

Article 21 (Election)

1. Directors shall be elected by resolution of a general meeting of shareholders. Each Director shall be elected
at a general meeting of shareholders; provided, however, that Directors servings as Audit and Supervisory Committee Members shall be elected by distinguishing them and other Directors.

2. Resolutions on the election in the preceding paragraph shall be adopted by a majority of the votes of the
shareholders present at the meeting where the shareholders holding at least one-third of the voting rights of the shareholders entitled to exercise their voting rights at such meeting are present.

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3. Resolutions for the election of Directors shall not be conducted by cumulative voting.

Article 22 (Term of Office)

1. The term of office of a Director (excluding a Directors serving as an Audit and Supervisory Committee Members)
shall expire at the conclusion of the annual general meeting of shareholders for the last business year out of the business years terminating within one year after the election of the Director.

2. The term of office of a Director serving as an Audit and Supervisory Committee Member shall expire at the
conclusion of the annual general meeting of shareholders for the last business year out of the business years terminating within two years after the election of the Director.

3. The term of office of a Director (excluding a Director serving as an Audit and Supervisory Committee Members)
elected as a substitute due to an increase in the number of Directors or as a substitute for a Director who retired before the expiration of the term of office shall continue until the time when the term of the other incumbent Directors expires.

4. The term of office of a Director serving as an Audit and Supervisory Committee Member, elected as the
substitute for a Director serving as an Audit and Supervisory Committee Member who retired from office before the expiration of the term of office, shall continue until the time when the term of the retired Director serving as an Audit and
Supervisory Committee Member was set to expire.

Article 23 (Representative Director)

The Directors to represent the Company shall be elected by resolution of the Board of Directors from among Directors (excluding Directors serving as Audit and Supervisory Committee Members).

Article 24 (Directors With Special Titles)

The Board of Directors may appoint, by its resolution, one Director and Chair, one Director and President, one or a small number of Director and Vice Presidents, one or a small number of Senior Managing Directors, and one or a small number of Managing Directors.

Article 25 (Convener and Chairperson of Board of Directors Meetings)

1. Unless otherwise provided for by laws and regulations, the Representative Director determined by a resolution
of the Board of Directors shall convene the Board of Directors meetings and chair the meetings.

2. In cases where the Representative Director is unable to do so, another Director, designated in accordance with
an order of priority determined in advance by the Board of Directors, shall convene the Board of Directors meetings and chair the meetings.

Article 26 (Convocation Notice of Board of Directors Meetings)

1. The convocation notice of a Board of Directors meeting shall be dispatched to each Director at least three days
prior to the scheduled date of such meeting; provided, however, that this period may be reduced in case of urgency.

2. With the consent of all Directors, a Board of Directors meeting may be held without following the convening
procedures.

Article 27 (Delegation of Decisions on Execution of Important Operations)

Pursuant to the provisions of Article 399-13, paragraph (6) of the Companies Act, the Company may, by resolution of the Board of Directors, delegate all or part of decisions on the execution of important operations (excluding the matters listed in each item of paragraph (5) of the same Article) to Directors.

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Article 28 (Method of Resolutions of the Board of Directors)

1. Resolutions by the Board of Directors shall be attended by a majority of the Directors able to participate in
the resolution and passed by a majority of those present.

2. The Company deems that, in cases where directors submit a proposal with respect to a matter that is the purpose
of the resolution at a Board of Directors meeting, if all directors entitled to participate in votes express their consent to such proposal in writing or in an electronic or magnetic record, the resolution to approve such proposal has been passed at
the Board of Directors meeting.

Article 29 (Minutes of Board of Directors Meetings)

The summary of proceedings of the Board of Directors meetings, the results thereof, and other items provided for by laws and regulations shall be described or recorded in the minutes, and the Directors who are present shall affix their signatures and seals or electronic signatures thereto.

Article 30 (Regulations of the Board of Directors)

Items concerning the Board of Directors shall be in accordance with the Regulations of the Board of Directors established by the Board of Directors, in addition to laws and regulations and these Articles of Incorporation.

Article 31 (Remuneration, Etc.)

Remuneration, bonuses, and other economic benefits given by the Company in consideration for the execution of duties (hereinafter, the "Remuneration, Etc.") to Directors shall be determined by resolution of a general meeting of shareholders. However, the Remuneration, Etc. of Directors serving as Audit and Supervisory Committee Members shall be determined separately from that of other Directors by resolution of a general meeting of shareholders.

Article 32 (Exemption of Directors From Liability)

1. Pursuant to the provisions of Article 426, paragraph (1) of the Companies Act, the Company may, by
resolution of the Board of Directors, exempt a Director (including a person who was formerly a Director) from liability as set forth in Article 423, paragraph (1) of the same Act, to the extent permitted by laws and regulations.

2. Pursuant to the provisions of Article 427, paragraph (1) of the Companies Act, the Company may enter into
an agreement with a Director (excluding a person who is an executive director, etc.), limiting liability for damages as set forth in Article 423, paragraph (1) of the same Act; provided, however, that the maximum liability for damages under
such agreement shall be either an amount specified in advance that is not less than 5 million yen, or an amount as prescribed by laws and regulations, whichever is higher.

**Chapter V** 

**Audit and Supervisory Committee** 

Article 33 (Convocation Notice of Audit and Supervisory Committee)

1. The convocation notice of an Audit and Supervisory Committee meeting shall be dispatched to each Audit and
Supervisory Committee Member at least three days prior to the scheduled date of such meeting; provided, however, that this period may be reduced in case of urgency.

2. With the consent of all Audit and Supervisory Committee Members, an Audit and Supervisory Committee meeting may
be held without following the convening procedures.

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Article 34 (Regulations of the Audit and Supervisory Committee)

Items concerning the Audit and Supervisory Committee shall be in accordance with the Regulations of the Audit and Supervisory Committee established by the Audit and Supervisory Committee, in addition to laws and regulations and these Articles of Incorporation.

**Chapter VI** 

**Accounting Auditors** 

Article 35 (Election)

The Accounting Auditor shall be elected by resolution of a general meeting of shareholders.

Article 36 (Term of Office)

The term of office of the Accounting Auditor shall expire at the conclusion of the annual general meeting of shareholders for the last business year out of the business years terminating within one year after the election of the Accounting Auditor. However, unless otherwise resolved at the annual general meeting of shareholders at which the term of office expires, the Accounting Auditor shall be deemed to be reelected at the said annual general meeting of shareholders.

**Chapter VII** 

**Accounts** 

Article 37 (Business Year)

The business year of the Company shall commence on July 1 of each year and end on June 30 of the following year.

Article 38 (Year-end Dividends)

The Company shall, by resolution of the general meeting of shareholders, pay a dividend from surplus funds in cash (hereinafter, the "Year-end Dividends") to shareholders or registered pledgees of shares listed or recorded in the final shareholder registry as of June 30 of each year.

Article 39 (Interim Dividends)

The Company may pay a dividend of surplus as set forth in Article 454, paragraph (5) of the Companies Act (hereinafter, "Interim Dividends") to shareholders or registered pledgees of shares entered or recorded in the final shareholder register on December 31 each year by resolution of the Board of Directors.

Article 40 (Prescription for Payment of Year-end Dividends)

If Year-end Dividends and Interim Dividends are not received after three full years from the starting date of dividend payments, the Company shall be exempt from the obligation to pay the dividends.

Supplementary Provisions

Article 1 (Transitional Measures Concerning Exemption from Liability for Audit and Supervisory Board Members)

Pursuant to Article 426, paragraph (1) of the Companies Act, the Company may exempt, to the extent allowed by applicable laws and regulations, Audit and Supervisory Board Members (including persons who previously served as Audit and Supervisory Board Members) from the liabilities for damages arising from their failure to perform their duties prior to the taking effect of partial amendment of the Articles of Incorporation approved by resolution of the 36th Ordinary General Meeting of Shareholders.

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| | | |
|:---|:---|:---|
| Supplementary Provisions | 1. | Created: September 5, 1980 |
| Supplementary Provisions | 2. | Amended: July 20, 1982 |
| Supplementary Provisions | 3. | Amended: February 5, 1989 |
| Supplementary Provisions | 4. | Amended: September 30, 1994 |
| Supplementary Provisions | 5. | Amended: September 28, 1995 |
| Supplementary Provisions | 6. | Amended: January 31, 1996 |
| Supplementary Provisions | 7. | Amended: September 20, 1996 |
| Supplementary Provisions | 8. | Amended: September 26, 1997 |
| Supplementary Provisions | 9. | Amended: November 4, 1997 |
| Supplementary Provisions | 10. | Amended: September 25, 1998 |
| Supplementary Provisions | 11. | Amended: September 28, 1999 |
| Supplementary Provisions | 12. | Amended: September 25, 2002 |
| Supplementary Provisions | 13. | Amended: August 20, 2003 |
| Supplementary Provisions | 14. | Amended: September 25, 2003 |
| Supplementary Provisions | 15. | Amended: September 28, 2004 |
| Supplementary Provisions | 16. | Amended: September 29, 2005 |
| Supplementary Provisions | 17. | Amended: July 1, 2006 |
| Supplementary Provisions | 18. | Amended: September 28, 2006 |
| Supplementary Provisions | 19. | Amended: September 26, 2008 |
| Supplementary Provisions | 20. | Amended: September 25, 2009 |
| Supplementary Provisions | 21. | Amended: September 26, 2012 |
| Supplementary Provisions | 22. | Amended: December 2, 2013 |
| Supplementary Provisions | 23. | Amended: July 1, 2015 |
| Supplementary Provisions | 24. | Amended: September 28, 2016 |
| Supplementary Provisions | 25. | Amended: September 27, 2017 |
| Supplementary Provisions | 26. | Amended: February 1, 2019 |
| Supplementary Provisions | 27. | Amended: September 1, 2019 |
| Supplementary Provisions | 28. | Amended: September 28, 2022 |
| Supplementary Provisions | 29. | Amended: March 2, 2023 |
| Supplementary Provisions | 30. | Amended: September 27, 2024 |
| Supplementary Provisions | 31. | Amended: October 1, 2025 |

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**Business Report** 

(From July 1, 2024 to June 30, 2025)

**1.** **Current Status of the Corporate Group** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Business performance for the fiscal year under review

1) Business progress and results

During the fiscal year under review (July 1, 2024–June 30, 2025), Japan's economy continued to recover moderately amid improvements in the employment and income environment. However, the outlook remains uncertain in the face of unresolved challenges, such as a decline in personal consumption associated with rising prices, the impact of U.S. trade policies, and fluctuations in financial and capital markets.

The retail sector experienced an increase in domestic consumption owing to expansion in inbound demand. However, real wages continued to decline as a result of rising personnel expenses stemming from labor shortages, soaring logistics and utility costs, and price hikes for various goods such as food and daily necessities driven by inflation. Given this situation, price competition accelerated as consumers became increasingly cautious, keeping the business environment extremely challenging. Despite these circumstances, the Group pursued an aggressive management strategy based on proactive sales initiatives, maximizing its strengths grounded in the philosophy of store-level authority and thorough implementation of individual store operation—key differentiators that set it apart from rivals.

In the domestic business segment, tax-free sales grew significantly as the Group attracted many tourists from over 200 countries and regions by offering amusement-driven shopping experiences, a broad assortment of products, and enhanced promotional campaigns. Non-tax-free sales also grew, thanks to marketing initiatives targeting younger customers, increased media exposure, and merchandise strategies focusing on seasonal and trending demand, among other factors.

PB/OEM products increased as a percentage of sales as the Group strengthened product development capabilities to better capture customer needs and implemented strategies such as OEM conversion of staple shelf products, contributing to an increase in gross margin.

In the North America business segment, the Group actively opened new stores to pursue expansion. These new stores include DON DON DONKI VILLAGE OF DONKI, the first large-scale store in Guam; TOKYO CENTRAL PCH Torrance Store, a new location of the high-profit TOKYO CENTRAL format, which is gaining recognition as a niche Japanese specialty store; and DON DON DONKI Kapolei Store, the first DON DON DONKI format store in Hawaii.

In the Asia business segment, the Group implemented initiatives to expand sales, including enhanced product strategies that leveraged local distribution channels, spot purchasing, and price-focused marketing for products that are highly popular among inbound tourists in Japan.

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During the fiscal year under review, the Group opened 25 stores in Japan, all operated by Don Quijote Co., Ltd. The store openings by region were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Kanto region: Don Quijote Chofu Ekimae (Tokyo); Don Quijote Tanashiekimae (Tokyo); Don Quijote Shinjuku
Tonanguchi Bekkan (Tokyo); Don Quijote Tsuruminishiguchi (Kanagawa); Don Quijote Tateyama (Chiba); Don Quijote Makinohara More (Chiba); Don Quijote Tokiwadaira (Chiba); Don Quijote Seiyu Gyotoku (Chiba); Don Quijote Moriya (Ibaraki); Don Quijote
Ishioka (Ibaraki); Kirakira Donki Tonarie Utsunomiya (Tochigi); and Kirakira Donki Takasaki Nishiguchi (Gunma)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hokkaido region: Don Quijote Chitose (Hokkaido)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tohoku region: Don Quijote Kitakami (Iwate)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Chubu region: Don Quijote Sakudaira (Nagano); Don Quijote Shimizu (Shizuoka); and Don Quijote Hamamatsushitoro
(Shizuoka)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Kinki region: Don Quijote Sakaihigashi Ekimae (Osaka); Don Quijote Rinku (Osaka); Don Quijote Uzumasa Tenjingawa
(Kyoto); and Don Quijote Kyoto Fushimi (Kyoto)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shikoku region: Don Quijote Komatsushima Lupia (Tokushima); and Don Quijote Kochi (Kochi)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Kyushu region: Don Quijote Ohashi Ekimae (Fukuoka); and Don Quijote Kokusaidori Kumoji (Okinawa)

In the overseas business, the Group opened one store in California, U.S. (TOKYO CENTRAL PCH Torrance); two stores in Hawaii, U.S. (Fujioka's Wine Times Kapolei, DON DONKI Kapolei); one store in Guam (DON DONKI VILLAGE OF DONKI); one store in Singapore (DON DONKI Bukit Panjang Plaza); one store in Hong Kong (DON DON DONKI Mong Kok MPM); one store in Taiwan (DON DON DONKI Taoyuan Tonlin); and one store in Malaysia (JONETZ by DON DON DONKI NU Sentral). Additionally, in April 2025, the Group acquired all shares of Mikuni Restaurant Group, Inc., which operates sushi restaurants mainly in Sacramento, California, U.S., and made it a subsidiary. This resulted in the addition of nine new stores to the Group.

Meanwhile, the Group closed two domestic stores and three overseas stores, for a total of five stores.

Consequently, the Group operated a total of 779 stores worldwide as of June 30, 2025, comprising 655 domestic stores and 124 overseas stores, compared with 742 stores as of June 30, 2024.

As a result of the above, the Group recorded an increase in net sales and profits for the fiscal year under review, as follows:

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| | |
|:---|:---|
| Net sales | ¥2,246.758 billion<br> (up 7.2% year-over-year) |
| Operating income | ¥162.296 billion<br> (up 15.8% year-over-year) |
| Ordinary profit | ¥158.542 billion<br> (up 6.6% year-over-year) |
| Profit attributable to owners of parent | ¥90.512 billion<br> (up 2.0% year-over-year) |

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Sales by segment for the fiscal year under review were as follows:

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*Domestic Business* 

Net sales for the fiscal year under review increased by ¥133.051 billion from the previous fiscal year, reaching ¥1,896.113 billion, up 7.5% year-over-year. Operating income was ¥158.084 billion, up 15.7% year-over-year. In the domestic business segment, net sales and operating income grew owing to a 5.9% increase in same-store sales. This growth was attributable to an increase in tax-free sales, the contribution of PB/OEM products, strong performance of seasonal and trend-focused items, and various measures such as enhanced media exposure and pricing strategies.

*North America Business* 

Net sales for the fiscal year under review increased by ¥12.562 billion from the previous fiscal year, reaching ¥259.437 billion, up 5.1% year-over-year. Operating income was ¥2.283 billion, down 33.7% year-over-year. In the North America business segment, one store was destroyed by wildfire in Southern California. However, net sales and gross margin increased thanks to new store openings, improvements in manufacturing operations, and the success of new sales initiatives. Nevertheless, operating income decreased due to an increase in selling, general and administrative (SG&A) expenses driven by higher costs associated with new store openings, the recording of advisory fees related to M&A activities, and other factors.

*Asia Business* 

Net sales for the fiscal year under review increased by ¥6.069 billion from the previous fiscal year, reaching ¥91.209 billion, up 7.1% year-over-year. Operating income was ¥1.929 billion, compared with ¥146 million for the previous fiscal year. In the Asia business segment, while sales increased as a result of the weaker yen and aggressive store expansion, SG&A expenses also rose. However, operating income increased thanks to efficiency improvements achieved through productivity enhancements, including personnel expense management, in-house processing of operations, and back-office operations.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| By business segment | 44th fiscal term<br>(Fiscal year ended June 30, 2024) | 44th fiscal term<br>(Fiscal year ended June 30, 2024) | 45th fiscal term<br>(Fiscal year ended June 30, 2025) | 45th fiscal term<br>(Fiscal year ended June 30, 2025) | YoY<br>change |
| By business segment | Amount | Composition<br>ratio | Amount | Composition<br>ratio | YoY<br>change |
|  | Millions of yen | % | Millions of yen | % | % |
|  Domestic business |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Discount store business) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Home appliances | 90178 | 4.3 | 92391 | 4.1 | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Household goods | 345379 | 16.5 | 393490 | 17.5 | 13.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foods | 569108 | 27.2 | 613713 | 27.3 | 7.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Watches & fashion | 168431 | 8 | 182209 | 8.1 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sporting & leisure | 81124 | 3.9 | 92288 | 4.1 | 13.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 20902 | 1 | 21998 | 1 | 5.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (GMS business) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clothing | 44457 | 2.1 | 43789 | 1.9 | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Household goods | 65113 | 3.1 | 67551 | 3 | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foods | 301387 | 14.4 | 313828 | 14 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 197 | 0 | 986 | 0 | 400.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Others) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other revenue | 76786 | 3.7 | 73869 | 3.3 | (3.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 1763062 | 84.2 | 1896113 | 84.4 | 7.5 |
|  North America Business | 246875 | 11.8 | 259437 | 11.5 | 5.1 |
|  Asia Business | 85140 | 4.1 | 91209 | 4.1 | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 2095077 | 100 | 2246758 | 100 | 7.2 |

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2) Capital investments

The amount of capital investment implemented during the fiscal year under review totaled ¥53.223 billion, as a result of continuing aggressive store development efforts from the previous period.

This primarily consists of investments in buildings, equipment, and other assets related to new store openings and renovations during the fiscal year under review.

3) Financing activities

During the fiscal year under review, the Company secured a total of ¥40,000 million in loans from multiple financial institutions to fund loan repayments.

The Company and its consolidated subsidiaries entered into bank overdraft agreements with 39 banks totaling ¥36,910 million and loan commitment agreements with three banks totaling ¥30,000 million to ensure the procurement of efficient funds as working capital, respectively. As of the end of the fiscal year under review, there were no bank loans arranged under these agreements, including either bank overdraft agreements or loan commitment agreements.

The Company entered into syndicated loan agreements with 16 financial institutions totaling ¥20,000 million. The unused balance under these agreements at the end of the fiscal year under review is ¥20,000 million.

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4) Business transfers, absorption-type company splits, and incorporation-type company splits

Not applicable.

5) Acquisitions of other companies' businesses

Not applicable.

6) Succession of the rights and obligations of the businesses of other corporations, etc. under absorption-type mergers or absorption-type company splits

In May 2025, the Company resolved to conduct an absorption-type merger effective July 1, 2025, with its wholly-owned subsidiary, LN Corporation, as the dissolving company.

7) Acquisition or disposal of shares, other equity, share acquisition rights, etc. of other companies

The Company acquired all issued shares of Mikuni Restaurant Group, Inc., a U.S. corporation, in April 2025, and included it in the scope of consolidation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial position and results of operations for the past three fiscal terms

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Category | 42nd fiscal term<br>Fiscal year ended<br>June 30, 2022 | 43rd fiscal term<br>Fiscal year ended<br>June 30, 2023 | 44th fiscal term<br>Fiscal year ended<br>June 30, 2024 | 45th fiscal term<br>(Fiscal year under<br>review)<br>Fiscal year ended<br>June 30, 2025 |
|  Net sales | (Millions of yen) | 1831280 | 1936783 | 2095077 | 2246758 |
|  Ordinary profit | (Millions of yen) | 100442 | 110994 | 148709 | 158542 |
|  Profit attributable to owners of parent | (Millions of yen) | 61928 | 66167 | 88701 | 90512 |
|  Basic earnings per share | (Yen) | 102.64 | 110.94 | 148.64 | 151.59 |
|  Total assets | (Millions of yen) | 1383678 | 1481058 | 1498410 | 1511026 |
|  Net assets | (Millions of yen) | 399247 | 463539 | 547003 | 624044 |
|  Net assets per share | (Yen) | 657.75 | 759.75 | 898.72 | 1014.19 |

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| | |
|:---|:---|
| (Notes) 1. | Basic earnings per share are calculated based on the average number of shares outstanding during the period, after deducting treasury shares, and net assets per share are calculated based on the total number of issued shares at the end of the period, after deducting treasury shares.  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards
Board of Japan (ASBJ) Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations from the 42nd fiscal term, and key financial indicators for the 43rd fiscal term onward are those after applying the accounting standard and
relevant revised ASBJ regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Significant parent and subsidiaries

1) Parent company

Not applicable.

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2) Significant subsidiaries

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| | | | |
|:---|:---|:---|:---|
| Company name | Share capital | Voting rights ratio<br>held by the<br>Company | Principal contents of business |
| Don Quijote Co., Ltd. | ¥300 million | 100.0% | Discount store business |
| UNY Co., Ltd. | ¥100 million | 100.0% | GMS business |
| Nagasakiya Co., Ltd. | ¥300 million | 100.0%<br> (100.0%) | Discount store business |
| UD Retail Co., Ltd. | ¥300 million | 100.0%<br> (100.0%) | Discount store business |
| Japan Asset Marketing Co., Ltd. | ¥37,591 million | 100.0%<br> (19.1%) | Real estate leasing and management business |
| Pan Pacific International Financial Service Corporation | ¥10,100 million | 100.0% | Financial services business |
| UCS Co., Ltd. | ¥1,611 million | 100.0%<br> (100.0%) | Financial services business |
| Japan Commercial Establishment Co., Ltd. | ¥300 million | 100.0%<br> (100.0%) | Tenant leasing business |
| Pan Pacific Retail Management (Singapore) Pte. Ltd. | SGD 78 million | 65.0%<br> (65.0%)<br> [100.0%] | Discount store business |
| Pan Pacific Retail Management (Hong Kong) Co., Ltd. | HKD 1 million | 65.0%<br> (65.0%)<br> [100.0%] | Discount store business |
| Don Quijote (USA) Co., Ltd. | USD 92 million | 100.0%<br> (100.0%) | Discount store business |
| Gelson's Markets | USD<br>0.02 million | 100.0%<br> (100.0%) | Supermarket business |
| MARUKAI CORPORATION | USD<br>0.3 million | 100.0%<br> (100.0%) | Supermarket business |
| QSI, Inc. | USD<br>0.8 million | 100.0%<br> (100.0%) | Supermarket business |

---

(Notes) 1. The figures in parentheses are the indirect holding ratios included in the figures outside the parentheses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The figures in square brackets is the voting rights ratio held by those who are close to or agree with the
Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the fiscal year under review, Don Quijote Co., Ltd., Nagasakiya Co., Ltd., and UD Retail Co., Ltd.
conducted capital increases by transferring other capital surplus to share capital. As a result, the share capital of Don Quijote Co., Ltd. and Nagasakiya Co., Ltd. has increased from ¥100 million to ¥300 million each, while the
share capital of UD Retail Co., Ltd. has increased from ¥1.5 million to ¥300 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. As of the end of the fiscal year under review, there are no specified wholly-owned subsidiaries.

------

3) Other significant affiliates

---

| | | | |
|:---|:---|:---|:---|
| Company name | Share capital | Voting rights ratio<br>of the Company | Principal contents of business |
| Accretive Co., Ltd. | ¥100 million | 26.3% | Healthcare, FPS, and BPO business |
| Kanemi Co., Ltd. | ¥2,002 million | 39.4% | Retail sales of sushi, fried foods, prepared foods, and other items; and manufacturing and sales of boxed lunches for convenience stores |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Kanemi Co., Ltd. acquired a portion of its issued shares as treasury shares in August 2025, after the end of
the fiscal year under review. As a result, the Company's voting rights ratio in the company increased from 39.4% to 40.3%, and the company was therefore included in the scope of consolidation under the substantive control standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Issues to be addressed

1) Continuous growth in sales and profits over the medium to long term

In the retail sector, the external environment is expected to undergo significant changes. These include a shrinking market size associated with population decline resulting from a low birthrate and the aging of society, a decrease in real wages caused by rising prices, intensifying price competition, industry realignment, and an increase in foreign tourists and foreign residents.

The Group, viewing such environmental changes as revenue opportunities, has formulated a new long-term management plan, Double Impact 2035, to achieve further growth. Double Impact 2035 centers on the Group's domestic business segment, which offers numerous growth opportunities. Regarding the overseas business segment, the Group has determined that it is necessary to build a foundation characterized by stable operations and a clear business model. The Group will spend about a year finalizing its overseas strategy and will release it to the public at a later date.

The quantitative targets in Double Impact 2035 call for net sales of ¥4.2 trillion and operating income of ¥330.0 billion for the fiscal year ending June 30, 2035. The Group will support the daily lives of local customers and provide the joy of shopping as it seeks to achieve continuous growth by implementing the growth strategies outlined below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Store opening strategy

While store openings are progressing in all prefectures, there is still significant room for expansion. The Group will pursue its "cover Japan" strategy to enter areas where it is not yet present and expand market share through unique store opening methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Existing store strategy

The Group aims to achieve significant growth in top-line sales by strengthening efforts to motivate reluctant shoppers (those in the "passively averse" segment) to visit its stores, encourage existing customers to purchase items that they do not normally buy and visit its stores more frequently, in addition to expanding its presence in the retail market and capturing a larger share of the discount store market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Inbound strategy

The Group aims to establish tourist-oriented retail operations to solidify its brand position as the reason people visit Japan. This involves enhancing its unique amusement experience—not just shopping, but the joy of visiting its stores and experiencing Japanese culture—to create a unique in-store atmosphere no competitor can replicate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Development of new formats

The Group will expand its market reach to the "small-catchment-area food needs" segment, which it has not previously targeted, and develop a new format to leverage its diverse resources based on this formula: Food-focused Don Quijote = (Don Quijote's merchandising + UNY's fresh procurement capabilities) × discount pricing. The goal is to establish a unique business model that combines strong customer appeal with high profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) M&A strategy

The Group expects that the retail sector will undergo further realignment and become increasingly oligopolistic. For this reason, it will adopt M&A as one of its business strategies.

2) Balancing the resolution of environmental and social challenges with business growth

The Group, under "The Customer Matters Most" philosophy, prioritizes supporting the daily lives of local customers and providing them with the joy of shopping, while actively addressing environmental and social challenges through the core business of general retailing.

The Group has identified five materiality issues in light of the magnitude and importance of stakeholders' expectations and requests, as well as the scale of impact its operations may have on the economy, the environment, and society.

[PPIH Group important issues (materiality)]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Reduce the environmental impact of our business activities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accepting diversity and creating a rewarding workplace

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Sustainable procurement and responsible sales

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Resolving social issues through coexistence with local communities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Solid governance system

These materiality-related initiatives, planned and formulated by committees and divisions responsible for each domain under the leadership of respective officers, are reflected in the operations of Group companies.

[Promotion of human capital management]

The Group regards human capital as the source of its competitive advantage and its most important management resource. Recognizing that human capital is the driving force behind all its efforts to achieve sustainable growth, the Group promotes a human capital strategy closely aligned with its business strategy. Building on the internalization of its corporate philosophy, "The Source (*Genryu*) Management," the Group promotes each employee's autonomous growth and bold challenges, aiming to foster innovation across the entire organization.

As an initiative for the fiscal year under review, the Group established targets for "mate" (part-time/temporary) employees, recognizing that their contributions—supporting the operations of individual stores—are essential to strengthening customer loyalty. Furthermore, the Group introduced new compensation and recognition programs to create an environment where every mate enjoys working for the Group.

In addition, as the business environment changes in ways that are difficult to predict and customers' values continue to diversify, the Group believes that diversity is essential for winning customers and achieving growth. For this reason, the Group actively promoted diversity by implementing various measures, including the advancement of women in the workplace. The Group offered programs and seminars to cultivate female managers on an ongoing basis and conducted career design seminars for female employees in their 20s to foster future managerial candidates and improve retention. Additionally, to create a supportive work environment where employees navigating major life events, such as pregnancy, childbirth, child-rearing, and caregiving, can work with peace of mind, the Group provided training for managers on the relevant support systems.

------

[Initiatives for the fiscal year under review regarding other materiality issues] Regarding environmental issues, the Group promoted the use of renewable energy, including solar power, and installed renewable energy systems at five stores (bringing the total to 27 stores and one facility) as part of an effort to achieve the CO₂ reduction targets released in 2022. At the same time, aiming to reduce environmental impact across the entire supply chain, the Group held partner briefings to collect data on GHG emissions related to purchased merchandise. As for PB/OEM products, the Group worked to reduce environmental impact by using eco-friendly materials and technologies in packaging and containers.

With respect to social issues, the Group pursued initiatives aimed at reducing human rights violations and other risks based on international guidelines, including the United Nations' Guiding Principles on Business and Human Rights, as well as guidelines released by the government. This was due to the Group's increased responsibility within the supply chain as it expanded sales of PB/OEM products. The Group continued to conduct risk assessments, including third-party CSR audits, at factories contracted to manufacture PB/OEM products, covering issues such as workers' human rights, occupational safety and health, and environmental protection. The Group invited an external instructor to conduct partner training on the theme of human rights, thereby strengthening its efforts to build a sound supply chain.

As for governance, the Group conducted monthly compliance training for employees to ensure sound and fair business practices. Additionally, to strengthen its corporate governance framework, the Group held nine meetings of the Nomination and Compensation Committees to enhance the fairness, objectivity, and transparency of its nomination and compensation processes.

To further strengthen its materiality-related initiatives, the Group will engage with various stakeholders, reflect their expectations and requests in management and business operations, and build relationships of trust and collaboration.

As a retail format innovator guided by its unwavering corporate principle of "The Customer Matters Most," the Group is implementing a variety of initiatives to further strengthen its three key differentiators—convenience, discounts, and amusement—and to create stores that earn the support of customers.

The Group pioneered the night market and developed it in a flexible manner. It will continue to create attractive stores that provide high customer satisfaction and demonstrate a superior competitive advantage. The Group will focus on the key priorities outlined above and dedicate its full efforts to becoming a company that creates greater shareholder value by pursuing business growth while addressing environmental and social challenges at the same time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Principal contents of business (as of June 30, 2025)

The Group consists of the Company, a pure holding company, 73 consolidated subsidiaries, 11 non-consolidated subsidiaries, two equity-method affiliates, and five non-equity-method affiliates.

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The Group operates domestic business in Japan, primarily consisting of discount stores and GMS businesses; North American business centered in Hawaii and California, USA; and Asia business in Southeast Asia, including Singapore and Hong Kong.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Principal sales office and stores (as of June 30, 2025)

1) Stores of the Group

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Domestic business |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Discount store business) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Don Quijote Co., Ltd. | Hokkaido | 12 stores |
|  | Tohoku | 24 stores |
|  | Kanto | 162 stores |
|  | Hokuriku and Koshinetsu | 26 stores |
|  | Tokai | 41 stores |
|  | Kinki | 75 stores |
|  | Chugoku and Shikoku | 23 stores |
|  | Kyushu and Okinawa | 55 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nagasakiya Co., Ltd. | Hokkaido | 8 stores |
|  | Tohoku | 4 stores |
|  | Kanto | 21 stores |
|  | Hokuriku and Koshinetsu | 3 stores |
|  | Tokai | 3 stores |
|  | Kinki | 3 stores |
|  | Chugoku and Shikoku | 1 store |
|  | Kyushu and Okinawa | 1 store |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UD Retail Co., Ltd. | Tohoku | 1 store |
|  | Kanto | 9 stores |
|  | Hokuriku and Koshinetsu | 8 stores |
|  | Tokai | 40 stores |
|  | Kinki | 4 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tachibana Department Store Co., Ltd. | Kyushu and Okinawa | 1 store |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (GMS business) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UNY Co., Ltd. | Kanto | 12 stores |
|  | Hokuriku and Koshinetsu | 16 stores |
|  | Tokai | 100 stores |
|  | Kinki | 2 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; North America business |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Don Quijote (USA) Co., Ltd. | Hawaii, USA | 3 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MARUKAI CORPORATION | California, USA | 11 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MARUKAI HAWAII CO. LTD. | Hawaii, USA | 1 store |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QSI, Inc. | Hawaii, USA | 25 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gelson's Markets | California, USA | 26 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific Retail Management (Guam) Co., Ltd. | Guam | 1 store |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mikuni Restaurant Group, Inc. | California, USA | 9 stores |

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------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asia business |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific Retail Management (Singapore) Pte. Ltd. | The Republic of Singapore | 17 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DONKI (Thailand) Co., Ltd. | The Kingdom of Thailand | 8 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific Retail Management (Hong Kong) Co., Ltd. | Hong Kong | 11 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taiwan Pan Pacific Retail Management Co., Ltd. | Taiwan | 6 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific Retail Management (Malaysia) Sdn. Bhd. | Malaysia | 4 stores |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Macau Pacific Rim Retail Management Co., Ltd. | Macau | 2 stores |

---

2) Head office of the Company and its subsidiaries

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company | 2-25-12 Dogenzaka, Shibuya-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Don Quijote Co., Ltd. | 2-19-10 Aobadai, Meguro-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UNY Co., Ltd. | 1 Amaikegotanda-cho, Inazawa-shi, Aichi |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nagasakiya Co., Ltd. | 2-19-10 Aobadai, Meguro-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UD Retail Co., Ltd. | 2-19-10 Aobadai, Meguro-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan Asset Marketing Co., Ltd. | 4-14-1 Kitakasai, Edogawa-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific International Financial Service Corporation | 2-19-10 Aobadai, Meguro-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; UCS Co., Ltd. | 1 Amaikegotanda-cho, Inazawa-shi, Aichi |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan Commercial Establishment Co., Ltd. | 4-14-1 Kitakasai, Edogawa-ku, Tokyo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific Retail Management (Singapore) Pte. Ltd. | The Republic of Singapore |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pan Pacific Retail Management (Hong Kong) Co., Ltd. | Hong Kong |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Don Quijote (USA) Co., Ltd. | Hawaii, USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gelson's Markets | California, USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MARUKAI CORPORATION | California, USA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; QSI, Inc. | Hawaii, USA |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Employees (as of June 30, 2025)

1) Number of employees of the corporate group

---

| | | |
|:---|:---|:---|
| Business segment | Number of employees | Increase/decrease from the<br>previous fiscal year-end |
|  Domestic business | 11189 | Decrease of 84 |
|  North America business | 3380 | Increase of 541 |
|  Asia business | 2506 | Decrease of 550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 17075 | Decrease of 93 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The number of employees refers to the number of working personnel and does not include part-time workers or
other temporary employees.

2) Number of employees of the Company

Number of employees <u>Increase/decrease from<br>the previous fiscal year-end</u> <u>Average age</u> <u>Average length of service</u> <br> 3,580 Increase of 625 42.5 16.2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The number of employees refers to the number of working personnel and does not include part-time workers or
other temporary employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Major lenders (as of June 30, 2025)

---

| | | |
|:---|:---|:---|
| Lender | <u>(Millions of yen)</u><br>Outstanding loan balance | <u>(Millions of yen)</u><br>Outstanding loan balance |
|  Sumitomo Mitsui Banking Corporation |  | 65496 |
|  Resona Bank, Limited |  | 45431 |
|  Mizuho Bank, Ltd. |  | 43996 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The Company and its consolidated subsidiaries entered into bank overdraft agreements with 39 banks totaling
¥36,910 million and loan commitment agreements with three banks totaling ¥30,000 million to ensure the procurement of efficient funds as working capital, respectively. As of the end of the fiscal year under review, there were no
bank loans arranged under these agreements, including either bank overdraft agreements or loan commitment agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Other significant matters concerning the current status of the corporate group

Not applicable.

------

**2.** **The Company** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Shares (as of June 30, 2025)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) Total number of authorized shares | 1,872,000,000 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Total number of issued shares | 635,353,340 shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The total number of issued shares has increased by 324,800 shares due to the exercise of stock options.

3) Number of shareholders 65,002 persons

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The number of shareholders has increased by 846 compared to the end of the previous fiscal year.

4) Major shareholders

---

| | | |
|:---|:---|:---|
| Name of shareholders | Number of shares held | Ratio of shareholding (%) |
|  DQ WINDMOLEN B. V. | 134028000 | 22.44 |
|  The Master Trust Bank of Japan, Ltd. (Trust Account) | 68000400 | 11.39 |
|  Custody Bank of Japan, Ltd. (Trust Account) | 36575400 | 6.12 |
|  Anryu Shoji Co., Ltd. | 33120000 | 5.55 |
|  FamilyMart Co., Ltd. | 33057384 | 5.53 |
|  Yasuda Scholarship Foundation | 14400000 | 2.41 |
|  STATE STREET BANK AND TRUST COMPANY 505223 | 13118573 | 2.20 |
|  GOVERNMENT OF NORWAY | 12021684 | 2.01 |
|  STATE STREET BANK AND TRUST COMPANY 505001 | 10639802 | 1.78 |
|  GIC PRIVATE LIMITED - C | 9078739 | 1.52 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) The ratio of shareholding is calculated after deducting treasury shares (38,073,421 shares).

5) Other significant matters concerning shares

The Company conducted a 5-for-1 stock split of its common shares, effective October 1, 2025, and pursuant to the provisions of Article 184, paragraph (2) of the Companies Act, resolved to amend the total number of authorized shares as set forth in Article 6 of the Company's Articles of Incorporation to 9,360,000,000 shares, effective on the same date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Share acquisition rights, etc.

1) Share acquisition rights held by the Company's officers that were granted as compensation for the execution of their duties (as of June 30, 2025)

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| | | | |
|:---|:---|:---|:---|
| Name | Name | 1st Series of Share-based Compensation<br>Stock Acquisition Rights | 2nd Series of Share-based Compensation<br>Stock Acquisition Rights |
| Date of resolution to issue | Date of resolution to issue | June 10, 2015 | December 11, 2015 |
| Number of share acquisition rights | Number of share acquisition rights | 3 units | 6 units |
| Class and number of shares subject to the share acquisition rights | Class and number of shares subject to the share acquisition rights | Common shares: 2,400 shares (Note 4) | Common shares: 2,400 shares (Note 4) |
| Paid-in amount for the share acquisition rights | Paid-in amount for the share acquisition rights | ¥993,600 (Note 1) | ¥403,000 (Note 1) |
| Value of property to be contributed when the share acquisition rights are exercised | Value of property to be contributed when the share acquisition rights are exercised | ¥800 per share acquisition right<br> (¥1 per share) (Note 4) | ¥400 per share acquisition right<br> (¥1 per share) (Note 4) |
| Exercise period | Exercise period | From June 26, 2015 to June 25, 2045 | From December 28, 2015 to December 27, 2045 |
| Conditions for exercise | Conditions for exercise | (Notes 2 and 3) | (Notes 2 and 3) |
| Status of officers' share acquisition rights holding | Directors (excluding Directors serving as Audit and Supervisory Committee Members and Outside Directors) | • Number of share acquisition rights: 3 units<br>• Number of shares subject to rights: 2,400 shares<br>• Number of holders: 1 | • Number of share acquisition rights: 6 units<br>• Number of shares subject to rights: 2,400 shares<br>• Number of holders: 1 |
| Status of officers' share acquisition rights holding | Outside Directors (excluding Directors serving as Audit and Supervisory Committee Members)<br>|  |  |
| Status of officers' share acquisition rights holding | Directors serving as Audit and Supervisory Committee Members |  |  |

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| | | | |
|:---|:---|:---|:---|
| Name | Name | 3rd Series of Share-based Compensation<br>Stock Acquisition Rights | 4th Series of Share-based Compensation<br>Stock Acquisition Rights |
| Date of resolution to issue | Date of resolution to issue | May 16, 2017 | June 14, 2018 |
| Number of share acquisition rights | Number of share acquisition rights | 50 units | 100 units |
| Class and number of shares subject to the share acquisition rights | Class and number of shares subject to the share acquisition rights | Common shares: 20,000 shares (Note 4) | Common shares: 40,000 shares (Note 4) |
| Paid-in amount for the share acquisition rights | Paid-in amount for the share acquisition rights | ¥404,600 (Note 1) | ¥494,300 (Note 1) |
| Value of property to be contributed when the share acquisition rights are exercised | Value of property to be contributed when the share acquisition rights are exercised | ¥400 per share acquisition right<br> (¥1 per share) (Note 4) | ¥400 per share acquisition right<br> (¥1 per share) (Note 4) |
| Exercise period | Exercise period | From June 1, 2017 to May 31, 2047 | From June 29, 2018 to June 28, 2048 |
| Conditions for exercise | Conditions for exercise | (Notes 2 and 3) | (Notes 2 and 3) |
| Status of officers' share acquisition rights holding | Directors (excluding Directors serving as Audit and Supervisory Committee Members and Outside Directors) | • Number of share acquisition rights: 50 units<br>• Number of shares subject to rights: 20,000 shares<br>• Number of holders: 1 | • Number of share acquisition rights: 100 units<br>• Number of shares subject to rights: 40,000 shares<br>• Number of holders: 1 |
| Status of officers' share acquisition rights holding | Outside Directors (excluding Directors serving as Audit and Supervisory Committee Members)<br>|  |  |
| Status of officers' share acquisition rights holding | Directors serving as Audit and Supervisory Committee Members |  |  |

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| | | | |
|:---|:---|:---|:---|
| Name | Name | 5th Series of Share-based Compensation<br>Stock Acquisition Rights | 7th Series of Share-based Compensation<br>Stock Acquisition Rights |
| Date of resolution to issue | Date of resolution to issue | March 25, 2019 | July 13, 2023 |
| Number of share acquisition rights | Number of share acquisition rights | 200 units | 121 units |
| Class and number of shares subject to the share acquisition rights | Class and number of shares subject to the share acquisition rights | Common shares: 80,000 shares (Note 4) | Common shares: 12,100 shares |
| Paid-in amount for the share acquisition rights | Paid-in amount for the share acquisition rights | ¥647,500 (Note 1) | ¥255,400 (Note 1) |
| Value of property to be contributed when the share acquisition rights are exercised | Value of property to be contributed when the share acquisition rights are exercised | ¥400 per share acquisition right<br> (¥1 per share) (Note 4) | ¥100 per share acquisition right<br> (¥1 per share) |
| Exercise period | Exercise period | From April 10, 2019 to April 9, 2049 | From August 4, 2023 to August 3, 2053 |
| Conditions for exercise | Conditions for exercise | (Notes 2 and 3) | (Notes 2 and 3) |
| Status of officers' share acquisition rights holding | Directors (excluding Directors serving as Audit and Supervisory Committee Members and Outside Directors) | • Number of share acquisition rights: 200 units<br>• Number of shares subject to rights: 80,000 shares<br>• Number of holders: 1 | • Number of share acquisition rights: 121 units<br>• Number of shares subject to rights: 12,100 shares<br>• Number of holders: 5 (Note 5) |
| Status of officers' share acquisition rights holding | Outside Directors (excluding Directors serving as Audit and Supervisory Committee Members)<br>|  |  |
| Status of officers' share acquisition rights holding | Directors serving as Audit and Supervisory Committee Members |  |  |

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| | | |
|:---|:---|:---|
| (Notes) | 1. | The Company pays monetary compensation to persons eligible for allotment of share-based compensation stock acquisition rights, equivalent to the total paid-in amount for the share acquisition rights, and offsets this right to claim compensation against the obligation to pay the paid-in amount for the share acquisition rights. |
|  | 2. | Share acquisition rights holders may exercise all of their share acquisition rights at once during the exercise period only within ten days from the day following the day they lose their position as (i) Director of the Company, (ii) or, for the 7th Series of Share-based Compensation Stock Acquisition Rights, executive officer of the Company if they are executive officer of the Company on the allotment date of the share acquisition rights (excluding Directors of the Company). |
|  | 3. | In cases where a share acquisition rights holder deceases, an heir may exercise the share acquisition rights. In this case, notwithstanding Note 2 above, the heir may exercise the share acquisition rights all at once during the exercise period only within one year from the day following the day the rights are inherited. |
|  | 4. | The "Class and number of shares subject to the share acquisition rights" and the "Value of property to be contributed when the share acquisition rights are exercised" for the share-based compensation stock acquisition rights shown above have been adjusted to reflect the effect of a 2-for-1 stock split executed on July 1, 2015 and a 4-for-1 stock split executed on September 1, 2019. |
|  | 5. | Of the 7th Series of Share-based Compensation Stock Acquisition Rights, the share acquisition rights held by one Director were granted prior to such person's appointment as Director. |

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2) Share acquisition rights granted to employees, etc. as compensation for the execution of their duties during the fiscal year under review (as of June 30, 2025)

Not applicable.

3) Other Information on the share acquisition rights, etc. (as of June 30, 2025)

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| | | |
|:---|:---|:---|
| Name | 1st Series of Paid-in Share<br> Acquisition Rights | 2nd Series of Paid-in Share<br> Acquisition Rights |
| Allotment date | September 23, 2016 | December 1, 2022 |
| Number of share acquisition rights | 3,102 units | 33,103 units |
| Class and number of shares subject to the share acquisition rights | Common shares: 1,240,800 shares (Note 2) | Common shares: 3,310,300 shares |
| Amount to be paid for the share acquisition rights | ¥2,000 per share acquisition right | ¥3,300 per share acquisition right |
| Value of property to be contributed when the share acquisition rights are exercised | ¥370,000 per share acquisition right<br> (¥925 per share) (Note 2) | ¥256,000 per share acquisition right<br> (¥2,560 per share) |
| Exercise period | From October 1, 2018 to September 30, 2026 | From October 1, 2025 to November 30, 2029 |
| Conditions for exercise | (Note 1) | (Note 3) |
| Persons eligible for allotment of share acquisition rights | Officers and employees of the Company and its subsidiaries:<br> 642 persons | Officers and employees of the Company and its subsidiaries:<br> 2,014 persons |

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| | | |
|:---|:---|:---|
| Name | Name | 7th Series of Share-based Compensation Stock<br> Acquisition Rights |
| Date of resolution to issue | Date of resolution to issue | July 13, 2023 |
| Number of share acquisition rights | Number of share acquisition rights | 43 units |
| Class and number of shares subject to the share acquisition rights | Class and number of shares subject to the share acquisition rights | Common shares: 4,300 shares |
| Amount to be paid for the share acquisition rights | Amount to be paid for the share acquisition rights | ¥255,400 (Note 4) |
| Value of property to be contributed when the share acquisition rights are exercised | Value of property to be contributed when the share acquisition rights are exercised | ¥100 per share acquisition right<br> (¥1 per share) |
| Exercise period | Exercise period | From August 4, 2023 to August 3, 2053 |
| Conditions for exercise | Conditions for exercise | (Note 5) |
| Status of grants to employees, etc. | Executive officers | &nbsp;&nbsp;&nbsp;&nbsp; • Number of share acquisition rights: 43 units<br>• Number of shares subject to rights: 4,300 shares<br>• Number of holders: 3<br>|

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(Notes) 1. Conditions for exercising the 1st Series of Paid-in Share Acquisition Rights

1) The share acquisition rights holder must be a director, audit and supervisory board member, or employee of the Company or its subsidiaries and associates at the time the share acquisition rights are exercised. However, this condition shall not necessarily apply in the case of retirement due to the expiry of the term of office, compulsory retirement, or any other reason deemed valid by the Board of Directors. 

2) An heir of the share acquisition rights holder is not allowed to exercise the share acquisition rights.

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3) Share acquisition rights may not be exercised in the case where the total number of issued shares after the exercise of the share acquisition rights exceeds the authorized shares as of the date of exercise. 

4) Acquisition rights of less than one unit may not be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The "Class and number of shares subject to the share acquisition rights" and the "Value
of property to be contributed when the share acquisition rights are exercised" for the paid-in share acquisition rights shown above have been adjusted to reflect the effect of a 4-for-1 stock split executed on September 1, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Conditions for exercising the 2nd Series of Paid-in Share Acquisition
Rights

1) Share acquisition rights holder may exercise their share acquisition rights, if and only when the amounts of operating income in the consolidated statements of income stated in the annual securities report, which had been submitted by the Company pursuant to the Financial Instrument s and Exchange Act, satisfy the following conditions: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated operating income exceeds ¥120.0 billion for the fiscal year ended June 30, 2025.

However, in cases where a significant event, such as the major acquisition of a business, which has a significant impact on operating income on a consolidated basis, occurs during the period up to June 2025 and the Board of Directors of the Company determines that it is not appropriate to use the actual results stated in the annual securities report for such period, the Company may make adjustments to the actual results used for the conditions for vesting and exercise by reducing the impact of the event to the extent deemed reasonable.

2) The share acquisition rights holder must be a director, audit and supervisory board member, or employee of the Company or its subsidiaries and associates at the time the share acquisition rights are exercised. However, this condition shall not necessarily apply in the case of retirement due to the expiry of the term of office, compulsory retirement, or any other reason deemed valid by the Board of Directors. 

3) An heir of the share acquisition rights holder is not allowed to exercise the share acquisition rights.

4) Share acquisition rights may not be exercised in the case where the total number of issued shares after the exercise of the share acquisition rights exceeds the authorized shares as of the date of exercise. 

5) Acquisition rights of less than one unit may not be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company pays monetary compensation to persons eligible for allotment of share-based compensation stock
acquisition rights, equivalent to the total paid-in amount for the share acquisition rights, and offsets this right to claim compensation against the obligation to pay the paid-in amount for the share acquisition rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Conditions for exercising the 7th Series of Share-based Compensation Stock Acquisition Rights

1) Share acquisition rights holders may exercise all of their share acquisition rights at once during the exercise period only within ten days from the day following the day they lose their position as executive officer of the Company.

2) In cases where a share acquisition rights holder deceases, an heir may exercise the share acquisition rights. In this case, notwithstanding 1) above, the heir may exercise the share acquisition rights all at once during the exercise period only within one year from the day following the day the rights are inherited. 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Officers of the Company

1) Directors (as of June 30, 2025)

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| | | |
|:---|:---|:---|
| Position in the Company | Name | Areas of responsibility and significant concurrent<br> positions |
| President and CEO <br>Representative Director | Naoki Yoshida | President and Representative Director of Don Quijote Co., Ltd.<br> Director of UNY Co., Ltd. |
| Representative Director, Senior Managing Executive Officer, CSO | Hideki Moriya | Head of Management Strategy Headquarters and Head of Executive Committee<br> Director of Don Quijote Co., Ltd. |
| Representative Director, Senior Managing Executive Officer | Kosuke Suzuki | Head of Corporate Philosophy Promotion Headquarters and Head of New Format Development Headquarters Vice President and Representative Director of Don Quijote Co., Ltd.<br> President and Representative Director of UD Retail Co., Ltd. |
| Director and Senior Managing Executive Officer | Ken Sakakibara | Head of GMS Business and Domestic Co-CMO<br> President and Representative Director of UNY Co., Ltd. |
| Director, Managing Executive Officer and CMO (Global) | Kazuhiro Matsumoto | Head of Overseas Business and North America Business<br> Director of Pan Pacific Retail Management (Asia) Pte. Ltd.<br> President and CEO/Director of Pan Pacific Retail Management (USA) Co. |
| Director, Managing Executive Officer and CAO | Yuji Ishii | Head of Finance, Financial Accounting, Accounting and General Affairs<br> Audit and Supervisory Board Member of Don Quijote Co., Ltd.<br> Audit and Supervisory Board Member of Nagasakiya Co., Ltd.<br> Audit and Supervisory Board Member of UD Retail Co., Ltd. |
| Director and Executive Officer | Hitomi Ninomiya | Head of Diversity Management Committee and Head of Design |
| Director | Isao Kubo | Board Director, Senior Managing Executive Officer and Unit President of Corporate Administration Unit of SKY Perfect JSAT Corporation |
| Director (non-standing)<br> Founding Chairman and Supreme Advisor | Takao Yasuda | President/Director of Pan Pacific Strategy Institute Pte. Ltd.<br> Chairman/Director of Pan Pacific Retail Management (Asia) Pte. Ltd.<br> Chairman of Yasuda Scholarship Foundation |
| Director (non-standing) | Yusaku Yasuda | Director of Pan Pacific Retail Management (Asia) Pte. Ltd.<br> Director of Pan Pacific Retail Management (USA) Co.<br> Vice Chairman of Yasuda Scholarship Foundation<br> Director of Mikuni Restaurant Group, Inc. |

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| | | |
|:---|:---|:---|
| Position in the Company | Name | Areas of responsibility and significant concurrent<br> positions |
| Director (Audit and Supervisory Committee Member) | Yasunori Yoshimura | Chairman of YOSHIMURA BIOETHIC INSTITUTE<br> Professor Emeritus of Keio University (Department of Obstetrics and Gynecology)<br> Outside Director of mederi Inc. |
| Director (Audit and Supervisory Committee Member) | Jumpei Nishitani | Professor, College of Business Administration, Ritsumeikan University<br> Member of the Defense Procurement Council of the Acquisition, Technology & Logistics Agency |
| Director (Audit and Supervisory Committee Member) | Masaharu Kamo | Representative Director of Office Kamo Co., Ltd.<br> Outside Director of AGEST, Inc.<br> External Director of JERA Cross Co., Inc. |
| Director (Audit and Supervisory Committee Member) | Takaki Ono | Outside Director of First-corporation Inc. |
| Director (Audit and Supervisory Committee Member) | Naoko Kishimoto | Established Kishimoto Law Office, Representative |

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(Notes) 1. Directors Kosuke Suzuki, Ken Sakakibara, and Yusaku Yasuda, and Directors (Audit and Supervisory Committee Members) Takaki Ono and Naoko Kishimoto were newly appointed and assumed their positions at the 44th Ordinary General Meeting of Shareholders held on September 27, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Changes in areas of responsibility and positions of Directors during the fiscal year under review are as
follows.

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| | | | |
|:---|:---|:---|:---|
| Name | Before change | After change | Date of change |
| Hideki Moriya | Director, Managing Executive Officer, CSO and Acting CFO | Representative Director, Senior Managing Executive Officer, CSO | September 27, 2024 |
| Kazuhiro Matsumoto | Director, Senior Managing Executive Officer and CMO (Global) | Director, Managing Executive Officer and CMO (Global) | September 27, 2024 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Changes in significant concurrent positions during the fiscal year under review are as follows.

1) Naoki Yoshida, President and CEO, Representative Director, and Ken Sakakibara, Director and Senior Managing Executive Officer, retired from their positions as Directors of Nagasakiya Co., Ltd. in September 2024. Yuji Ishii, Director, Managing Executive Officer and CAO, has been appointed as Audit and Supervisory Board Member of Nagasakiya Co., Ltd. 

2) Kazuhiro Matsumoto, Director, Managing Executive Officer and CMO (Global), retired from his position as Director of Don Quijote Co., Ltd. in September 2024. Yuji Ishii, Director, Managing Executive Officer and CAO, has been appointed as Audit and Supervisory Board Member of Don Quijote Co., Ltd.

3) Yuji Ishii, Director, Managing Executive Officer and CAO, has been appointed as Audit and Supervisory Board Member of UD Retail Co., Ltd. in September 2024.

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4) Isao Kubo, Outside Director, has been appointed as Board Director, Senior Managing Executive Officer and Unit President of Corporate Administration Unit of SKY Perfect JSAT Corporation in April 2025.

5) Yusaku Yasuda, Director (non-standing), has been appointed as Director of Mikuni Restaurant Group, Inc. in April 2025.

6) Yasunori Yoshimura, Outside Director serving as an Audit and Supervisory Committee Member, retired from his position as Outside Director of ASKA Pharmaceutical Holdings Co., Ltd. in June 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Isao Kubo, Director, and Yasunori Yoshimura, Jumpei Nishitani, Masaharu Kamo, Takaki Ono, and Naoko Kishimoto,
Directors serving as Audit and Supervisory Committee Members, are Outside Directors. The Company has reported to the Tokyo Stock Exchange that they have been appointed as independent officers as stipulated by the said exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. As a company with an Audit and Supervisory Committee, the Audit and Supervisory Committee takes the lead in
conducting systematic audits through the internal control system. Therefore, since the selection of full-time members is not necessarily required, the Company has not appointed any full-time Audit and Supervisory Committee Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Jumpei Nishitani, Outside Director serving as an Audit and Supervisory Committee Member, possesses considerable
expertise in finance and accounting gained primarily through research in economics and business administration at universities and other institutions, as well as through experience as a professor. Masaharu Kamo, Outside Director serving as an Audit
and Supervisory Committee Member, has served in important positions at a consulting company and at an operating company, and possesses considerable expertise in finance and accounting as a result of being involved in corporate management for many
years. Takaki Ono, Outside Director serving as an Audit and Supervisory Committee Member, has served in important positions at a bank and possesses abundant experience and broad insight in the finance and financial fields. Naoko Kishimoto, Outside
Director serving as an Audit and Supervisory Committee Member, is a qualified attorney at law and possesses considerable expertise in corporate legal affairs.

2) Compensation, etc. for Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Total amount of compensation, etc. for the fiscal year under review

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Category | Total amount of<br>compensation,<br>etc.<br>(Millions of yen) | Total amount of compensation, etc. by type (Millions<br>of yen) | Total amount of compensation, etc. by type (Millions<br>of yen) | Total amount of compensation, etc. by type (Millions<br>of yen) | Number of<br>eligible officers |
| Category | Total amount of<br>compensation,<br>etc.<br>(Millions of yen) | Basic<br>compensation | Performance-<br>linked<br>remuneration,<br>etc. | Non-monetary<br>remuneration,<br>etc. | Number of<br>eligible officers |
|  Directors | 285 | 174 | 111 |  | 7 |
|  [Of which Outside Directors] | (9) | (9) | (–) | (–) | (1) |
|  Directors (Audit and Supervisory Committee Members) | 42 | 42 |  |  | 5 |
|  [Of which Outside Directors] | (42) | (42) | (–) | (–) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 327 | 216 | 111 |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Of which Outside Directors] | (51) | (51) | (–) | (–) | (6) |

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(Notes) 1. Matters concerning resolutions of the general meeting of shareholders regarding compensation, etc. for Directors are as follows.

1) 36th Ordinary General Meeting of Shareholders (held on September 28, 2016)

The compensation for Directors serving as Audit and Supervisory Committee Members of the Company has been resolved to be within ¥100 million per year. The number of Directors serving as Audit and Supervisory Committee Members at the conclusion of the relevant ordinary general meeting of shareholders is four (including three Outside Directors).

2) 37th Ordinary General Meeting of Shareholders (held on September 27, 2017)

The compensation for Directors (excluding Directors serving as Audit and Supervisory Committee Members) of the Company has been resolved to be within ¥600 million per year (excluding portion of employee salaries of directors who concurrently serve as employees). The number of Directors (excluding Directors serving as Audit and Supervisory Committee Members) at the conclusion of the relevant ordinary general meeting of shareholders is ten (including zero Outside Directors). Additionally, the compensation related to share-based stock options has been resolved separately from the above, to be within ¥400 million per year, with the maximum number of shares subject to the share acquisition rights set at 320,000 shares per year (note that the number of shares subject to the share acquisition rights above has been adjusted to reflect the effect of a 4-for-1 stock split executed on September 1, 2019). The number of eligible Directors (excluding Outside Directors and Directors serving as Audit and Supervisory Committee Members) at the conclusion of the relevant ordinary general meeting of shareholders is ten.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The performance-linked remuneration, etc., for Directors shown in the table above reflect the estimated amount
of performance-linked monetary remuneration (annual bonus) for the fiscal year under review, which is scheduled to be paid after the conclusion of this Ordinary General Meeting of Shareholders.

ii) Retirement benefits for directors (and other officers) paid during the fiscal year under review

The Company abolished its retirement benefit plan for Directors and Audit and Supervisory Board Members upon the conclusion of the 34th Ordinary General Meeting of Shareholders held on September 26, 2014. For Directors and Audit and Supervisory Board Members who remain in office following the conclusion of the same general meeting of shareholders, it has been resolved that retirement benefits corresponding to their period of service until the abolition of the retirement benefit plan shall be paid after their respective retirements.

No retirement benefits for directors (and other officers) were paid during the fiscal year under review.

iii) Total amount of director compensation, etc. received by Outside Directors from parent, subsidiaries, etc. 

Not applicable.

iv) Matters concerning to the delegation of authority for determining individual compensation, etc. for Directors for the fiscal year under review

The Company consulted the Nomination and Compensation Committees regarding the details of individual compensation, etc. for Directors of the Company for the fiscal year ended June 30, 2025, and the Board of Directors adopted a resolution based on the Committees' report.

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However, the Board of Directors of the Company delegated to the President and CEO, Representative Director (Naoki Yoshida) the authority to determine the final amount of basic compensation within the maximum and minimum amounts separately determined by the Board of Directors, as well as the authority to determine the final payment rate of the performance-linked monetary remuneration (annual bonus) for the individual performance-linked portion. The reason for delegating these authorities is that, after considering factors such as the roles and responsibilities of each individual Director, as well as difficulty and level of contribution, the Company determined that delegating them to the President and Representative Director was the most appropriate course of action for ensuring prompt decision-making.

To ensure that the delegated authority is properly exercised, the Board of Directors has determined that the President and Representative Director must fully consult with independent Outside Directors through the Nomination and Compensation Committees when determining the amount of individual compensation, etc. for Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) Reasons why the Board of Directors determined that the details of individual compensation, etc. for Directors
for the fiscal year under review were in line with the policy

Regarding the details of individual compensation, etc. for Directors of the Company for the fiscal year ended June 30, 2025, the Board of Directors has determined that the details are consistent with the policy on determination of individual compensation, etc. for Directors, based on the confirmation that consistency was established through discussions between independent Outside Directors and the President and Representative Director during the activities of the Nomination and Compensation Committees described in vi) below.

Note that the compensation for Directors serving as Audit and Supervisory Committee Members was determined through discussions among Directors serving as Audit and Supervisory Committee Members within the scope of the maximum amount resolved at the general meeting of shareholders.

vi) Activities of the Nomination and Compensation Committees in the process of determining individual compensation, etc. for Directors for the fiscal year under review

In the process of determining individual compensation, etc. for Directors of the Company for the fiscal year ended June 30, 2025, the Nomination and Compensation Committees held a total of nine meetings in July, August (twice), September, October, November 2024, and March (twice) and April 2025. The chair and all committee members attended every meeting, resulting in a 100% attendance rate.

The composition of the Nomination and Compensation Committees and the major matters deliberated regarding individual compensation, etc. for Directors for the fiscal year under review are as follows:

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| | |
|:---|:---|
| Chair (outside): | Jumpei Nishitani, Director |
| Member (outside): | Yasunori Yoshimura, Director |
| Member (internal): | Naoki Yoshida, President and Representative Director |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deliberation on the director compensation system

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deliberation on the performance evaluation and payment amounts for the performance-linked monetary remuneration
(annual bonus) for the fiscal year ended June 30, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deliberation on the incentive curve for the performance-linked monetary remuneration (annual bonus) for the
fiscal year ended June 30, 2025

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deliberation on the policy on determination of individual compensation, etc. for Directors of the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deliberation on the individual performance evaluation method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Deliberation on disclosure matters, etc.

vii) Method for determining the policy on determination of individual compensation, etc. for Directors and summary thereof

The Company has established the Nomination and Compensation Committees as voluntary advisory bodies of the Board of Directors to enhance fairness, objectivity, and transparency in the evaluation and decision-making processes related to the nomination and compensation of Directors and other officers, thereby strengthening the corporate governance system.

The roles of the Nomination and Compensation Committees are to deliberate on and submit recommendations regarding matters such as the nomination and dismissal of Directors, the nomination and dismissal of Representative Directors and other officers, compensation, etc. for Directors and other officers, and any other matters referred by the Board of Directors.

Each committee consists of three or more members, with the majority being independent Outside Directors. The chair of each committee is elected from among independent Outside Directors by resolution of the Board of Directors.

The details of the policy on determination of individual compensation, etc. for Directors of the Company and the summary thereof are as follows a. through c.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Basic policy on director compensation system

The compensation for the Company's Directors is designed to function as an incentive for the continuous enhancement of corporate value, taking into account shareholder interests. Additionally, the basic policy is to set compensation for individual Directors at an appropriate level based on their position and responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Structure of director compensation system

The compensation system for the Company's Directors (excluding Outside Directors and Directors serving as Audit and Supervisory Committee Members) consists of the following; the basic compensation as monthly fixed monetary compensation, performance-linked monetary remuneration (annual bonus) as short-term incentive compensation, and share-based stock options (non-monetary remuneration) for the purpose of sharing shareholder interests. The compensation system for the Company's Outside Directors consists solely of basic compensation, reflecting their roles. The compensation system for Directors serving as Audit and Supervisory Committee Members of the Company consists solely of basic compensation, reflecting their roles.

The basic compensation is a monthly fixed monetary compensation and is determined based on the position and responsibilities of each Director, taking into consideration the level of compensation for directors at other companies of the same size as the Company, as well as the level of employee salaries, and a comprehensive range of factors.

The performance-linked monetary remuneration (annual bonus) as a short-term incentive for the Representative Director shall be linked to the Company's performance for a single fiscal year. In the Company, the performance-linked KPI shall be 'consolidated operating income' from the perspective of improving earnings in the core business. The KPI target for "consolidated operating income" for the fiscal year ended June 30, 2025 was ¥150.0 billion, and the actual result was ¥162.3 billion.

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The amount to be paid shall be determined based on the degree of achievement of budget and shall vary in a ratio of 0% to 150% depending on the degree. Furthermore, for Directors other than the Representative Director, 50% of their compensation will be linked to the Company's performance, similar to the Representative Director. Additionally, 50% shall be linked to individual performance.

The individual performance-linked portion shall be, as a general rule, assessed based on budget target achievement, and reviewed by the Nomination and Compensation Committees. The President and Representative Director shall determine the final payment rate within the range of 0% to 150%.

Since the Company determines the necessity of granting share-based stock options on a case-by-case basis, taking into consideration the past results of stock option grants, etc., the Company does not clearly stipulate the ratio of share-based stock options or the timing of their payment. However, the Company will continue to consider the frequency of granting share-based stock options in the future in the context of an appropriate director compensation system.

The composition of compensation for Directors (excluding Outside Directors and Directors serving as Audit and Supervisory Committee Members) shall be designed based on 70% fixed remuneration as basic compensation and 30% performance-linked remuneration (annual bonus) as short-term incentive compensation.

Regarding the timing of remuneration payments, the fixed remuneration as basic compensation is paid monthly, while the performance-linked monetary remuneration (annual bonus) as short-term incentive compensation is paid after the Company's performance is confirmed and following the conclusion of the ordinary general meeting of shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Policy on determination of individual compensation, etc. for Directors

The Company consults the Nomination and Compensation Committees regarding the determination of individual compensation, etc. for Directors of the Company, and the Board of Directors adopts a resolution based on the Committees' report.

However, with respect to basic compensation for Directors other than the President and Representative Director, the Company delegates to the President and Representative Director the authority to determine the final amount of such compensation, taking into consideration the roles and responsibilities of each individual Director, within the maximum and minimum amounts separately determined by the Board of Directors. The Company also delegates to the President and Representative Director the authority to determine the final payment rate of the performance-linked monetary remuneration (annual bonus) for the individual performance-linked portion, taking into consideration factors such as difficulty and level of contribution. To ensure that the delegated authority is properly exercised, the President and Representative Director must fully consult with independent Outside Directors through the Nomination and Compensation Committees.

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3) Matters concerning outside officers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Significant concurrent positions held at other corporations, etc. and relationship between such corporations,
etc. and the Company

Isao Kubo, Outside Director, who previously held positions including Director, Senior Managing Executive Officer, and Chief Strategy Officer, as well as Advisor at FamilyMart Co., Ltd., retired from his positions at the company in June 2021. In addition, the company sold a portion of the shares it held in the Company in September 2021 and is no longer considered a major shareholder of the Company. For this reason, the Company believes that he possesses sufficient independence from the Company.

Yasunori Yoshimura, Outside Director serving as an Audit and Supervisory Committee Member, is Outside Director of mederi Inc. The Company subsidizes the costs of low-dose birth control pills for female employees and the partners of employees of Group companies in Japan as a benefit program through "mederi for biz," which is an online birth control pill prescription service provided by the said company. The Company introduced this program as part of its efforts to create a comfortable working environment for women as it believes this will support female employees in maintaining their mental and physical health and can create a workplace where they can further demonstrate their abilities. Furthermore, the amount of these expenses is negligible as it is approximately ¥6 million per year (less than 0.01% of the consolidated net sales and selling, general and administrative expenses of the Company), and the Company believes that Mr. Yoshimura has sufficient independence from the Company.

There are no special relationships between the companies where each of outside officers other than above holds a significant concurrent position and the Company.

ii) Main activities during the fiscal year under review

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| | |
|:---|:---|
|  | Attendance, remarks made, and summary of duties<br> regarding the roles expected of Outside Directors |
| Director<br> Isao Kubo | He attended 11 of the 13 Board of Directors meetings held during the fiscal year under review. He has been involved particularly in corporate management for many years. Drawing on the insights gained from these experiences, he actively contributes his opinions at the Board of Directors meetings. He has been fulfilling his role appropriately to ensure appropriateness and propriety of the Board of Directors' decision-making, including supervising and giving advice particularly concerning management strategy from an objective standpoint. |
| Director (Audit and Supervisory Committee Member)<br> Yasunori Yoshimura | He attended 12 of the 13 Board of Directors meetings held during the fiscal year under review. He possesses experience that includes serving in such important positions as Special Advisor to the Cabinet. Drawing on the insights gained from these experiences, he actively contributes his opinions at the Board of Directors meetings. He has been fulfilling his role appropriately to ensure appropriateness and propriety of the Board of Directors' decision-making, including supervising and giving advice particularly concerning the promotion of women's participation and advancement in the workplace and employee benefits from an objective standpoint.<br>He also attended 13 of the 14 Audit and Supervisory Committee meetings held during the fiscal year under review. He engages in matters such as exchanging opinions on audit findings and discussing important audit-related matters as needed. |

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| | |
|:---|:---|
|  | Attendance, remarks made, and summary of duties<br> regarding the roles expected of Outside Directors |
| Director (Audit and Supervisory Committee Member)<br> Jumpei Nishitani | He attended all 13 of the Board of Directors meetings held during the fiscal year under review. He possesses a high level of expertise and broad experience gained primarily as a professor of College of Business Administration at a university. Drawing on the insights gained from these experiences, he actively contributes his opinions at the Board of Directors meetings. He has been fulfilling his role appropriately to ensure appropriateness and propriety of the Board of Directors' decision-making, including supervising and giving advice particularly concerning accounting and economics from an objective standpoint.<br>He also attended all 14 of the Audit and Supervisory Committee meetings held during the fiscal year under review. He engages in matters such as exchanging opinions on audit findings and discussing important audit-related matters as needed. |
| Director (Audit and Supervisory Committee Member)<br> Masaharu Kamo | He attended all 13 of the Board of Directors meetings held during the fiscal year under review. He has served in important positions at a consulting company and at an operating company, and has been involved in corporate management for many years. Drawing on the insights gained from these experiences, he actively contributes his opinions at the Board of Directors meetings. He has been fulfilling his role appropriately to ensure appropriateness and propriety of the Board of Directors' decision-making, including supervising and giving advice particularly concerning corporate management from an objective standpoint.<br>He also attended all 14 of the Audit and Supervisory Committee meetings held during the fiscal year under review. He engages in matters such as exchanging opinions on audit findings and discussing important audit-related matters as needed. |
| Director (Audit and Supervisory Committee Member)<br> Takaki Ono | He attended all ten of the Board of Directors meetings held during the fiscal year under review following his appointment on September 27, 2024. He has served in important positions at a bank and possesses abundant experience in the finance and financial fields. Drawing on the insights gained from these experiences, he actively contributes his opinions at the Board of Directors meetings. He has been fulfilling his role appropriately to ensure appropriateness and propriety of the Board of Directors' decision-making, including supervising and giving advice particularly concerning the finance and financial fields from an objective standpoint.<br>He also attended all ten of the Audit and Supervisory Committee meetings held during the fiscal year under review following his appointment on September 27, 2024. He engages in matters such as exchanging opinions on audit findings and discussing important audit-related matters as needed. |
| Director (Audit and Supervisory Committee Member)<br> Naoko Kishimoto | She attended all ten of the Board of Directors meetings held during the fiscal year under review following her appointment on September 27, 2024. She possesses expert knowledge and broad experience as a qualified attorney at law, and also experience working at companies that operate globally. Drawing on the insights gained from these experiences, she actively contributes her opinions at the Board of Directors meetings. She has been fulfilling her role appropriately to ensure appropriateness and propriety of the Board of Directors' decision-making, including supervising and giving advice particularly concerning legal matters from an objective standpoint.<br>She also attended all ten of the Audit and Supervisory Committee meetings held during the fiscal year under review following her appointment on September 27, 2024. She engages in matters such as exchanging opinions on audit findings and discussing important audit-related matters as needed. |

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4) Overview of a directors and officers liability insurance policy

The Company has entered into a directors and officers liability insurance policy as set forth in Article 430-3, paragraph (1) of the Companies Act with an insurance company, covering directors (including directors serving as audit and supervisory committee members) and audit and supervisory board members (including those who served during the fiscal year under review) of the Company and its domestic subsidiaries, as well as the Company's executive officers, as insureds. The insurance expenses are fully borne by the Company.

The policy covers the litigation expenses and damages incurred by the insured due to third party lawsuits, shareholder representative lawsuits, corporate lawsuits, etc., and is renewed annually.

Under the policy, coverage does not apply to damages incurred by the insured resulting from criminal acts committed by the insured or acts performed by the insured with the knowledge that they violated laws or regulations. Furthermore, the policy includes provisions setting a cap on the amount of compensation to ensure that the proper execution of duties by the Company's officers is not compromised.

When the policy is renewed, the Company plans to renew the policy with the same details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Accounting Auditor

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| | | |
|:---|:---|:---|
| 1) | Name | UHY Tokyo & Co. |
| 2) | Amount of remuneration, etc. for the Accounting Auditor for the fiscal year under review | ¥93 million |
|  | Total money and other economic benefits to be paid to the Accounting Auditor by the Company and its subsidiaries | ¥277 million |

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| | | |
|:---|:---|:---|
| (Notes) | 1. | In its audit agreement with the Accounting Auditor, the Company makes no clear distinction between the remuneration, etc. that it pays for auditing services governed by the Companies Act and for auditing services governed by the Financial Instruments and Exchange Act. Consequently, the amount of remuneration, etc. for the Accounting Auditor for the fiscal year under review includes the amount of remuneration, etc. for auditing services governed by the Financial Instruments and Exchange Act. |
|  | 2. | Having conducted the necessary verification regarding the appropriateness of matters such as the content of the Accounting Auditor's audit plan, the performance of accounting audit duties, and the basis for calculating the estimated remuneration, the Audit and Supervisory Committee made a decision to approve the amount of remuneration, etc. for the Accounting Auditor. |
|  | 3. | Among significant subsidiaries of the Company, overseas subsidiaries are audited by certified public accountants or audit firms (including those holding qualifications equivalent to such qualifications in other countries) other than the Company's Accounting Auditor. |

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3) Policy for determining dismissal or non-reappointment of the Accounting Auditor

In the event that there is an obstacle preventing the Accounting Auditor from performing its duties, the Audit and Supervisory Committee, if it is deemed necessary, will determine the content of a proposal to be proposed to the general meeting of shareholders concerning the dismissal or non-reappointment of the Accounting Auditor.

Also, the Audit and Supervisory Committee will dismiss the Accounting Auditor if it judges that any of the items stipulated in Article 340, paragraph (1) of the Companies Act is applicable to the Accounting Auditor, based on the consent of all Audit and Supervisory Committee Members. In this case, an Audit and Supervisory Committee Member appointed by the Audit and Supervisory Committee will report the fact of dismissal and the reasons thereof at the first general meeting of shareholders convened after the dismissal.

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**3. System Ensuring the Appropriateness of Operations, the Operational Status of the System, Etc.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) System ensuring the appropriateness of operations

The following is an overview of the decisions regarding the system ensuring the execution of duties by Directors complies with the Company's Articles of Incorporation and prevailing laws and regulations, and the system ensuring the appropriateness of operations at the Company.

(Final revision date: October 1, 2021)

1) System ensuring the execution of duties by Directors complies with the Company's Articles of Incorporation and prevailing laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Directors must consistently ensure that the Company's management is undertaken in compliance with laws
and regulations and must take the initiative to promote awareness of compliance practices at the Company and at its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To ensure appropriate execution of duties by Directors, the Company continues to appoint Outside Directors to
its Board of Directors and strives to enhance the supervision of duties executed by Directors. In addition, the Audit and Supervisory Committee, which has the participation of Outside Directors, conducts thorough audits that ensure impartiality and
transparency from a position independent of influence of Directors (excluding Directors serving as Audit and Supervisory Committee Members).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Company establishes a Compliance Committee to oversee matters related to compliance (legal compliance) and
internal control. In addition, the Compliance Committee collaborates with lawyers and other outside experts to ensure that business activities are conducted in accordance with high ethical standards, and to ensure the legality of the corporate
governance system and its operation.

2) System for storing and managing information related to the execution of duties by Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The minutes of general meeting of shareholders, Board of Director's meetings and other important meetings
along with any and all related materials are stored and managed by a designated department and retained for a period of ten years under conditions that facilitate examination whenever necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company utilizes tools to improve the security of in-house information networks and performs careful and timely reviews of its Rules for Information Security Management. Concurrently, the Company encourages information sharing within the organization and maintains systems to prevent leaks of confidential
information.

3) Rules and system for managing the risk of loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Compliance Committee analyzes and evaluate lateral risks from a compliance standpoint for the entire Group
companies and examine potential measures for dealing with such risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Efforts are made to swiftly and accurately systemize rules and instruction manuals and standardize business
practices to minimize operational risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Organizational and operating structures are swiftly and effectively established to control risks associated
with procedures, including financial accounting, purchasing, sales, store operation, and legal issues, which serve to minimize operational risks.

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4) System ensuring efficient execution of duties by Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Rules related to organizational structures are reviewed and updated in a timely and appropriate manner to
clarify the division of Director's duties and respective oversight authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Organizational and administrative systems are revised when necessary to meet changes in the business
environment.

5) System ensuring the execution of duties by employees complies with the Company's Articles of Incorporation and prevailing laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Compliance Committee promotes compliance and ensures thorough adherence to stated practices, in accordance
with resolutions by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Compliance Committee formulates plans that include education on issues related to compliance, and the
Compliance Office handles the administrative aspect of these activities based on instructions from the Compliance Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Company maintains a whistle-blower system, dubbed "the Compliance Hotline," which enables
employees and business partners of the Group to directly report questionable conduct—which are possible violations of the law, regulations, or in-house rules—directly to an outside entity or an in-house point of contact with complete confidentiality. Concerted efforts are made to promote awareness of this system to ensure that it continues to function effectively. The Company makes it a top priority to
protect individuals that report an actual or possible violation from any sort of disadvantage for bringing potential infractions to light.

6) System ensuring the appropriateness of operations at the Company and at its subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The status of the execution of business by each Group company must be reported to the Board of Directors of the
Company in a timely and appropriate manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To confirm the proper execution of operations at Group companies, the Internal Audit Division works with each
company to determine progress in establishing internal controls. To further improve the internal control system, the Compliance Committee provides instruction and support as required, based on a shared understanding of internal control measures
within the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To confirm the proper execution of operations at Group companies, the Company has prepared "Rules for
Management of Affiliated Companies." These rules provide guidelines for monitoring business activities at Group companies.

7) Issues pertaining to employees that assist the Audit and Supervisory Committee when such assistance is required

The Company established an office of the Audit and Supervisory Committee (Auditors' Office) with staff exclusively dedicated to assisting the Audit and Supervisory Committee in its duty as required.

8) Matters related to the independence of employees that are to assist the Audit and Supervisory Committee with its duty from Directors (excluding Directors serving as Audit and Supervisory Committee Members) and matters related to ensuring the effectiveness of instruction from the Audit and Supervisory Committee to such employees 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any personnel matters (including treatment and disciplinary action) pertaining to Auditors' Office staff
must be reported first to the Audit and Supervisory Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If a staff member of the Auditors' Office concurrently performs administrative tasks in another division,
priority shall be given to requests from the Audit and Supervisory Committee when the instructions are deemed necessary in the course of auditing activities. In addition, the supervisor in the other division where the individual with concurrent
duties is assigned will extend the necessary support if requests are made to facilitate implementation of the Audit and Supervisory Committee's instructions.

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9) System for submitting reports to the Audit and Supervisory Committee, which includes the system for Directors (excluding Directors serving as Audit and Supervisory Committee Members) and employees to report to the Audit and Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Internal Audit Division provides the Audit and Supervisory Committee with timely and accurate updates on
the implementation of internal controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Directors (excluding Directors serving as Audit and Supervisory Committee Members) and employees of the Company
and of Group companies shall promptly inform the Audit and Supervisory Committee of any important issues that impact, or may impact, the operations of the Company or any Group company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Directors (excluding Directors serving as Audit and Supervisory Committee Members) and employees of the Company
and of Group companies must respond promptly when asked by the Audit and Supervisory Committee or the Auditors' Office to provide information about the status of operations, assets, or other corporate matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Company prohibits unfavorable treatment of anyone on the basis of a report given to the Audit and
Supervisory Committee concerning information related to the aforementioned matters.

10) Other: Systems for ensuring the effectiveness of audits by the Audit and Supervisory Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Opportunities are provided for the Audit and Supervisory Committee to communicate with Directors (excluding
Directors serving as Audit and Supervisory Committee Members) of the Company as well as the directors and audit and supervisory board members of Group companies to make audits as effective as possible. The Audit and Supervisory Committee keeps close
ties with the Internal Audit Division and looks over internal audit reports to complement standard audits performed in line with in-house rules. Also, when the Accounting Auditor submits an audit report, the
Audit and Supervisory Committee confirms the appropriateness of the content therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Audit and Supervisory Committee is informed on a regular basis of how the Compliance Hotline is operating.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Payments of costs incurred in the process of executing the required duties of a Director serving as an Audit
and Supervisory Committee Member shall be addressed promptly upon submission of a payment request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Overview of the operational status of the system ensuring the appropriateness of operations

The following is an overview of the operational status of the internal control system during the fiscal year under review based on the fundamental policy for its establishment.

1) System ensuring the execution of duties by Directors complies with the Company's Articles of Incorporation and prevailing laws and regulations

The Company has established the fundamental policy for the establishment of internal control system to ensure the appropriateness of operations at the Group. At the same time, the Company swiftly and accurately systemizes rules and instruction manuals and standardizes business practices, thereby working to ensure the appropriateness of operations and enhance corporate value.

The Company continuously establishes internal control system and monitors the operational status on an annual basis. Furthermore, based on the results of monitoring and other factors, the Company continuously works to improve and strengthen our internal control system. At its Board of Directors meeting held on October 1, 2021, the Company reviewed and adopted the fundamental policy for the establishment of internal control system, taking these factors into account.

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2) Compliance system and system for managing the risk of loss

The Company has appointed a Compliance Officer to oversee matters related to compliance (legal compliance) and internal control. The Compliance Officer, in cooperation with the Compliance Committee, lawyers, and other outside experts, analyzes and evaluates lateral risks from a compliance standpoint for the entire Group companies and provides training on issues related to compliance.

The Company has also maintained a whistle-blower system, dubbed "the Compliance Hotline," which enables employees and business partners of the Group to directly report questionable conduct—which are possible violations of the law, regulations, or in-house rules—directly to an outside entity or an in-house point of contact with complete confidentiality. The findings are then reported to the Board of Directors and the Audit and Supervisory Committee of the Company in a timely and appropriate manner. Moreover, accounting matters are regularly audited by the Accounting Auditor, and advice and guidance are provided in a timely manner by lawyers for legal matters and tax accountants for tax matters.

3) System ensuring the appropriateness of operations at the Company and at its subsidiaries

The status of the execution of business by each Group company is reported to the Board of Directors and the Audit and Supervisory Committee of the Company in a timely and appropriate manner and the Internal Audit Division works with each company to determine progress in establishing internal controls. To further improve the internal control system, the Compliance Committee provides instruction and support as required, based on a shared understanding of internal control measures within the Group. In addition, to confirm the proper execution of operations at Group companies, the Company has prepared "Rules for Management of Affiliated Companies." These rules provide guidelines for monitoring business activities at Group companies.

4) Other: Systems for ensuring the effectiveness of audits by the Audit and Supervisory Committee

Opportunities are provided for the Audit and Supervisory Committee to communicate with Directors (excluding Directors serving as Audit and Supervisory Committee Members) of the Company as well as the directors and audit and supervisory board members of Group companies and any important issues that impact, or may impact, the operations of the Company or any Group company are promptly reported to the Audit and Supervisory Committee to make audits as effective as possible.

The Audit and Supervisory Committee keeps close ties with the Internal Audit Division and looks over internal audit reports to complement standard audits performed in line with in-house rules. When the Accounting Auditor submits an audit report, the Audit and Supervisory Committee conducts a review of the appropriateness of the content therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Measures to prevent transactions with antisocial forces

The Group has defined the following policies for non-association with antisocial forces and has established internal systems in this regard.

1) Neither the Company nor any Group company will respond to inappropriate requests or any other form of request from antisocial forces and will cancel business dealings if the counterparty is found to be an individual, business, organization or any other type of entity with ties to antisocial forces. 

2) To deal with any persistent approach by antisocial forces to engage in inappropriate activity, the Company established the Risk Management Division to oversee measures to prevent relationships with antisocial forces and undertakes in-house training to address any questionable activities.

3) The Risk Management Division collects information through its close ties with the police, legal counsel and other external organizations specialized in dealing with antisocial forces. In addition, a special position has been set up within the Company to deal with inappropriate requests and an internal structure is in place, along with intranet, to expedite responses in the event a situation arises. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Amounts shown in this business report are rounded down to the unit used for presentation, and the ratios are
rounded to the nearest unit used for presentation.

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**Consolidated Balance Sheets** 

(As of June 30, 2025)

(Millions of yen)

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| | | | |
|:---|:---|:---|:---|
| Account items | Amount | Account items | Amount |
| **Assets** | **Assets** | **Liabilities** | **Liabilities** |
|  **Current assets** | **527990** | **Current liabilities** | **441593** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and deposits | 171958 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes and accounts payable - trade | 194883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes and accounts receivable - trade | 18956 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term borrowings | 56375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - installment | 57749 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of bonds payable | 20650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating loans | 9456 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable - other | 57483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise and finished goods | 224902 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 2839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 9476 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 29540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits paid | 5764 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits received | 13396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 35367 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 29299 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts | (5637) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for point card certificates | 1598 |
|  **Non-current assets** | **983036** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 20055 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Property, plant and equipment** | **717985** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 15475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures | 295714 | **Non-current liabilities** | **445389** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tools, furniture and fixtures | 37895 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds payable | 170425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 354219 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 156929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets | 24934 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 35370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5222 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 32077 |
|  **Intangible assets** | **103590** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 50588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 62853 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | **886982** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 40738 | **Net assets** | **Net assets** |
|  **Investments and other assets** | **161461** | **Shareholders' equity** | **590294** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities | 37901 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share capital | 23689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term prepaid expenses | 4460 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus | 17810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit asset | 18355 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 629753 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets | 28042 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury shares | (80957) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold and guarantee deposits | 68226 | **Accumulated other comprehensive income** | **15460** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5617 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation difference on available-for-sale securities | 3161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts | (1140) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustment | 11656 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plans | 643 |
|  |  | **Share acquisition rights** | **2080** |
|  |  | **Non-controlling interests** | **16210** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total net assets** | **624044** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | **1511026** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and net assets** | **1511026** |

---

(Note) Amounts shown are rounded to the nearest million yen.

------

---

| | | |
|:---|:---|:---|
| **Consolidated Statements of Income**<br>(From July 1, 2024 to June 30, 2025)<br> (Millions of yen) | **Consolidated Statements of Income**<br>(From July 1, 2024 to June 30, 2025)<br> (Millions of yen) | **Consolidated Statements of Income**<br>(From July 1, 2024 to June 30, 2025)<br> (Millions of yen) |
| **Account items** | **Amount** | **Amount** |
|  **Net sales** |  | **2246758** |
|  **Cost of sales** |  | **1530025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit** |  | **716733** |
|  **Selling, general and administrative expenses** |  | **554437** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** |  | **162296** |
|  **Non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividend income | 1326 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of profit of entities accounted for using equity method | 615 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Penalty income | 519 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5788 | 8249 |
|  **Non-operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses paid on loans and bonds | 6403 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange losses | 4619 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 981 | 12002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ordinary profit** |  | **158542** |
|  **Extraordinary income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of non-current assets | 216 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of provision for loss on store closings | 798 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 10 | 1023 |
|  **Extraordinary losses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses | 18467 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on retirement of non-current assets | 1507 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on store closings | 1745 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disaster | 52 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 884 | 22655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Profit before income taxes** |  | **136910** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes - current |  | 48276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes - deferred |  | (2718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Profit** |  | **91352** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to non-controlling interests |  | 840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Profit attributable to owners of parent** |  | **90512** |

---

(Note) Amounts shown are rounded to the nearest million yen.

------

**Consolidated Statements of Changes in Net Assets** 

(From July 1, 2024 to June 30, 2025)

(Millions of yen)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
|  | Share<br>capital | Capital<br>surplus | Retained<br>earnings | Treasury<br>shares | Total shareholders'<br>equity |
|  Balance at beginning of period | 23358 | 17659 | 559538 | (80956) | 519778 |
|  Changes of items during period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new shares | 151 | 151 |  |  | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  | (20297) |  | (20297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 90512 |  | 90512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury shares |  |  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital increase of consolidated subsidiaries |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in consolidated subsidiaries - non-controlling interests |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than shareholders' equity |  |  |  |  |  |
|  Total changes of items during period | 151 | 151 | 70215 | (1) | 70516 |
|  Balance at end of period | 23689 | 17810 | 629753 | (80957) | 590294 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Accumulated other comprehensive income | Accumulated other comprehensive income | Accumulated other comprehensive income | Accumulated other comprehensive income | Share<br>acquisition<br>rights | Non-controlling<br>interests | Total net<br>assets |
|  | Valuation<br>difference on<br>available-for-sale<br>securities | Foreign<br>currency<br>translation<br>adjustment | Remeasure-<br>ments of<br>defined<br>benefit<br>plans | Total<br>accumulated<br>other<br>comprehen-<br>sive income | Share<br>acquisition<br>rights | Non-controlling<br>interests | Total net<br>assets |
|  Balance at beginning of period | 2126 | 13857 | 733 | 16716 | 1442 | 9066 | 547003 |
|  Changes of items during period |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new shares |  |  |  |  |  |  | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  |  |  |  |  | (20297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  |  |  |  |  | 90512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury shares |  |  |  |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital increase of consolidated subsidiaries |  |  |  |  |  | 6120 | 6120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in consolidated subsidiaries - non-controlling interests |  |  |  |  |  | (86) | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than shareholders' equity | 1036 | (2201) | (90) | (1256) | 638 | 1111 | 492 |
|  Total changes of items during period | 1036 | (2201) | (90) | (1256) | 638 | 7144 | 77041 |
|  Balance at end of period | 3161 | 11656 | 643 | 15460 | 2080 | 16210 | 624044 |

---

(Note) Amounts shown are rounded to the nearest million yen.

------

Notes to the Consolidated Financial Statements

**1.** **Notes on Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements, Etc.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Scope of consolidation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Consolidated subsidiaries

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| | |
|:---|:---|
| Number of consolidated subsidiaries | 73 |
| Names of consolidated subsidiaries | Don Quijote Co., Ltd. |
|  | UNY Co., Ltd. |
|  | Nagasakiya Co., Ltd. |
|  | UD Retail Co., Ltd. |
|  | Japan Asset Marketing Co., Ltd. |
|  | Pan Pacific International Financial Service Corporation |
|  | UCS Co., Ltd. |
|  | Japan Commercial Establishment Co., Ltd. |
|  | Pan Pacific Retail Management (Singapore) Pte. Ltd. |
|  | Pan Pacific Retail Management (Hong Kong) Co., Ltd. |
|  | Don Quijote (USA) Co., Ltd. |
|  | MARUKAI CORPORATION |
|  | QSI, Inc. |
|  | Gelson's Markets |
|  | And 59 other consolidated subsidiaries |

---

During the fiscal year under review, the Company acquired all shares of Mikuni Restaurant Group, Inc. and included it in the scope of consolidation. In addition, the Company established Vanshow USA Co. and Vanshow California and included them in the scope of consolidation.

During the fiscal year under review, three companies were excluded from the scope of consolidation due to the completion of liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Non-consolidated subsidiaries

Number of non-consolidated subsidiaries 11

11 non-consolidated subsidiaries are excluded from the scope of consolidation due to the scale of their business, and total assets, net sales, profit or loss (amount corresponding to equity interest), and retained earnings (amount corresponding to equity interest) not having a material effect on the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Application of the equity method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Non-consolidated subsidiaries and affiliates accounted for using equity
method

---

| | |
|:---|:---|
| Number of affiliates accounted for using equity method | 2 |
| Names of affiliates accounted for using equity method | Accretive Co., Ltd. |
|  | Kanemi Co., Ltd. |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Non-consolidated subsidiaries and affiliates not accounted for using
equity method

11 non-consolidated subsidiaries and five affiliates are excluded from the scope of application of the equity method, because such exclusion has only an immaterial effect on the consolidated financial statements in terms of each company's profit or loss (amount corresponding to the Company's ownership interest) and retained earnings (amount corresponding to the Company's ownership interest), and they have no significance as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Fiscal year-ends of consolidated subsidiaries

Of the consolidated subsidiaries, Don Quijote (USA) Co., Ltd. and 25 other companies have fiscal year-ends that differ from the consolidated fiscal year-end, but as the gap among the respective closing dates is not more than three months, the financial statements of these subsidiaries are used in the preparation of the consolidated financial statements.

However, necessary adjustments are made for the effects of significant transactions that occur during the gap between the fiscal year-ends of these subsidiaries and the consolidated fiscal year-end on June 30.

Of the consolidated subsidiaries, seven companies have fiscal year-ends that differ from the consolidated fiscal year-end by more than three months. Consequently, financial statements based on a provisional settlement of accounts on the consolidated closing date are used in the preparation of the consolidated financial statements.

Of the consolidated subsidiaries, Japan Asset Marketing Co., Ltd. and 13 other companies have fiscal year-ends that differ from the consolidated fiscal year-end. Consequently, financial statements based on a provisional settlement of accounts on the consolidated closing date are used in the preparation of the consolidate financial statements, as this would provide more appropriate management information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Accounting policies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Basis and method of valuation of significant assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Basis and method of valuation of securities

---

| | |
|:---|:---|
| Shares of subsidiaries and affiliates | Cost method by determining the cost using the moving average method |
| Available-for-sale securities |  |
| Securities other than stocks that do not have quoted market prices | Securities other than stocks that do not have quoted market prices |
|  | Fair value method (The amounts of unrealized gains or losses from such securities, after accounting for tax effects, are presented in net assets. Costs of securities sold are calculated using the moving average method.) |
| Stocks that do not have quoted market prices | Stocks that do not have quoted market prices |
|  | Cost method by determining the cost using the moving average method |

---

------

ii) Basis and method of valuation of derivatives

Fair value method

iii) Basis and method of valuation of inventories

---

| | |
|:---|:---|
| Merchandise | Cost method by determining the cost mainly using the moving average method |
|  | (The amounts on the consolidated balance sheets are calculated using a method of writing down the book value due to a decline in profitability.) |
|  | For fresh food, cost method by determining the cost using the last purchased price method |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Depreciation method for significant depreciable assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Property, plant and equipment (excluding lease assets and right-of-use assets)

The declining-balance method is used for calculation of depreciation.

However, the Company and its domestic consolidated subsidiaries use the straight-line method for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016.

UNY Co., Ltd. and four other consolidated companies and foreign consolidated subsidiaries use the straight-line method.

The useful life and residual value are determined in accordance with the Corporation Tax Act of Japan.

ii) Intangible assets (excluding lease assets)

Straight-line method

Software for internal use is amortized using the straight-line method over an estimated internal useful life of five years.

iii) Lease assets and right-of-use assets

Lease assets and right-of-use assets are depreciated using the straight-line method over the lease term with no residual value.

iv) Long-term prepaid expenses Straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Accounting treatment for deferred assets

---

| | | |
|:---|:---|:---|
| i) | Share issuance costs | Expense as incurred |
| ii) | Bond issuance costs | Expense as incurred |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Basis for significant provision and allowance

---

| | | |
|:---|:---|:---|
| i) | Allowance for doubtful accounts | To prepare for bad debt expenses such as accounts receivable and loans receivable, an estimated uncollectable amount is provided at the amount estimated by either using the actual historical rate of credit loss and certain method based on the actual historical rate of credit loss for general receivables, or based on individual consideration of collectability for specific receivables such as highly doubtful receivables. For foreign consolidated subsidiaries, the estimated uncollectible amount is provided mainly for certain receivables. |
| ii) | Provision for point card certificates | Provision for point card certificates is provided for the use of points given to members of credit cards, etc. at the amount expected to be used. The amount is estimated based on historical redemption experience and other factors. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Accounting treatment for retirement benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Allocation method of attributing expected benefits to period

In calculating retirement benefit obligations, the benefit formula method is used to allocate expected retirement payments to the period up to the current fiscal year-end.

ii) Treatment for actuarial differences and past service costs

Past service cost is amortized by the straight-line method over a period of ten years which is shorter than the average remaining years of service of the eligible employees when incurred.

Actuarial differences are amortized commencing in the following years after the differences are recognized by the straight-line method over a period of ten years which are shorter than the average remaining years of service of the eligible employees when incurred in each fiscal year.

As of the end of the fiscal year under review, since the amount of pension assets exceeds the amount of retirement benefit obligations, the excess amount is recognized as a retirement benefit asset and presented on the consolidated balance sheets under investments and other assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Revenue and expense recognition standards

The details of the main performance obligations in the major businesses related to revenue from contracts with customers of the Company and its consolidated subsidiaries and the timing at which these performance obligations are typically satisfied (when revenue is typically recognized) are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Sale of products

Revenue from sale of products in the Domestic business, North America business, and Asia business is recognized when products are transferred to a customer.

Revenue from sale of products in which the Company and its consolidated subsidiaries are deemed to be an agent is recognized at the net amount of the amount received in exchange for the products provided by the other party less the amount to be paid to the other party concerned.

------

ii) Tenant leasing

In the Domestic business, North America business, and Asia business, the Company rents floor space in shopping malls and stores to tenants, and revenue is recognized from rental transactions in accordance with the Accounting Standards Board of Japan (ASBJ) Statement No. 13 "Accounting Standard for Lease Transactions" and other standards.

iii) Financial income

Financial income in the Domestic business consists of credit fees and commissions from finance services, and revenue is recognized in accordance with the ASBJ Statement No. 10 "Accounting Standards for Financial Instruments" and other standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Basis for foreign currency translation of significant assets and liabilities denominated in foreign currencies
into Japanese yen adopted in preparing financial statements of consolidated subsidiaries, which served as the basis for preparation of consolidated financial statements

Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot exchange rate prevailing as of the consolidated fiscal year-end date, and translation differences are accounted for as profit or loss.

Assets and liabilities of foreign consolidated subsidiaries are translated into Japanese yen at the spot exchange rate prevailing as of the consolidated fiscal year-end date, and their revenue and expenses are translated into Japanese yen at the average exchange rate during the period. Translation differences are recognized as foreign currency translation adjustment under net assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Method and period of amortizing goodwill

Goodwill is amortized using the straight-line method over the reasonably estimated period in which investment effects will be revealed.

**2.** **Notes on Changes in Accounting Policies** 

(Application of the "Accounting Standard for Current Income Taxes," etc.)

From the beginning of the fiscal year under review, the Group has adopted the "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; the "2022 Revised Accounting Standard"), etc.

Regarding the amendments to the classification of income taxes (taxation applicable to other comprehensive income), the Group has followed the transitional treatment prescribed in the proviso to paragraph 20-3 of the 2022 Revised Accounting Standard and the transitional treatment prescribed in the proviso to paragraph 65-2(2) of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022; the "2022 Revised Implementation Guidance"). This change in accounting methods has no impact on the consolidated financial statements.

------

In addition, with respect to the amendments related to the revision of the treatment in the consolidated financial statements when tax deferral is applied to gains and losses arising from the sale of shares of subsidiaries, etc. among consolidated companies, the Group has applied the 2022 Revised Implementation Guidance from the beginning of the fiscal year under review. This change in accounting methods has no impact on the consolidated financial statements.

**3.** **Notes on Significant Accounting Estimates** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Loss on valuation of inventories

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount presented on the consolidated statements of income for the fiscal year under review

---

| | | |
|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) |
|  | Fiscal year under review | Fiscal year under review |
|  Loss on valuation of inventories included in cost of sales |  | 1776 |

---

The book value of merchandise and finished goods on the consolidated balance sheets is ¥224,902 million.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information on the details of significant accounting estimates of identified item

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Method of calculating the amount of loss on valuation of inventories

If the net selling value of inventories is lower than their book value, the difference is recognized as a loss on valuation of inventories. The Company writes down the book value of inventories on a systematic basis that have been unsold and no longer part of the normal operating cycle process, and records a loss on valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Major assumptions used in significant accounting estimates

In calculating a loss on valuation of inventories that have been unsold and no longer part of the normal operating cycle process, the Company identifies products whose turnover ratio becomes lower than a certain ratio, and writes down the book value of the identified products on a systematic basis by a depreciation rate that is determined based on such factors as the previous sales record of the product group to which the identified products belong, the quantity of inventories, and future sales plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impacts on the consolidated financial statements for the following fiscal year

The aforementioned estimates and assumptions involve a high degree of uncertainty because they are affected by deterioration of market environments, changes in consumer preferences and lifestyles, and other factors. Therefore, depending on the future circumstances, an additional loss on valuation of inventories may arise in the following fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Impairment of non-current assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount presented on the consolidated statements of income for the fiscal year under review

---

| | | |
|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) |
|  | Fiscal year under review | Fiscal year under review |
|  Impairment losses |  | 18467 |

---

On the consolidated balance sheets, the book value of property, plant and equipment is ¥717,985 million, and the book value of intangible assets is ¥103,590 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information on the details of significant accounting estimates of identified item

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Method of calculating the amount of impairment loss

The Group categorizes its assets by store and operating division as the smallest group of assets that generates cash flows. The Group determines whether or not there is any indication of impairment of rental properties and idle assets on an individual property basis. If any such indication exists, the Group determines whether or not it needs to recognize an impairment loss. As a result of such determination, if the Group needs to recognize an impairment loss, it reduces the book value of the asset to its recoverable amount, and recognizes the reduction as an impairment loss.

The Group determines that its assets have an indication of impairment when a store's profitability declines due to a seriously deteriorating operating environment and other factors; a store continuously generates losses from its operating activities; a property or store whose market price significantly declines; and a store that has been newly opened or is scheduled to be newly opened generates losses from its operating activities that exceed initial expectations, and is expected to continue to generate losses from its operating activities.

------

The Group determines that it needs to recognize an impairment loss of a property or store that has any indication of impairment when the total amount of undiscounted future cash flows is lower than the book value of the property or store.

The recoverable amount of each asset is determined to be the higher of either its net selling value or value in use. The net selling value is calculated based on factors such as the appraisal value by a real estate appraiser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Major assumptions used in significant accounting estimates

Based on its past sales results, the Group takes into account changes in commercial zones, influences by competitors' stores, the operating environment, and other factors, forecasts future net sales and operating income and expenses by store, and calculates future cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impacts on the consolidated financial statements for the following fiscal year

The aforementioned estimates and assumptions involve a high degree of uncertainty because they are affected by the future operating environment and changes in market trends. Therefore, depending on the future circumstances, an additional impairment loss may arise in the following fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Recoverability of deferred tax assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount presented on the consolidated balance sheets for the fiscal year under review

---

| | | |
|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) |
|  | Fiscal year under review | Fiscal year under review |
|  Deferred tax assets |  | 28042 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information on the details of significant accounting estimates of identified item

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Method of calculating the amount of deferred tax assets

According to standards such as the "Accounting Standard for Tax Effect Accounting" and the "Implementation Guidance on Recoverability of Deferred Tax Assets," the Group assesses and calculates the recoverability of deferred tax assets for future deductible temporary differences and net operating loss carryforward, based on the estimates of the future taxable income predicted on a Group company basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Major assumptions used in significant accounting estimates

The Group calculates the future taxable income considering the impacts of such factors as individual sales initiatives and changes in customer trends based on the past sales results of each Group company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impacts on the consolidated financial statements for the following fiscal year

The aforementioned estimates and assumptions involve a high degree of uncertainty because they are affected by the future operating environment and changes in market trends. Therefore, depending on the future circumstances, deferred tax assets may fluctuate and impact income taxes - deferred in the following fiscal year.

------

**4.** **Notes to the Consolidated Balance Sheets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Assets pledged as collateral and liabilities corresponding to assets pledged as collateral

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Assets pledged as collateral

---

| | |
|:---|:---|
|  Cash and deposits | ¥2,651 million |
|  Merchandise and finished goods | ¥526 million |
|  Buildings and structures | ¥742 million |
|  Land | ¥2,190 million |
|  Other | ¥342 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥6,451 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Liabilities corresponding to assets pledged as collateral

---

| | |
|:---|:---|
|  Current liabilities (Other) | ¥67 million |
|  Non-current liabilities (Other) | ¥797 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥864 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accumulated depreciation of property, plant and equipment

¥ 326,048 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Retroactive obligations due to securitization of receivables

¥ 5,775 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Company and its consolidated subsidiaries entered into bank overdraft agreements with 39 banks to ensure
the procurement of efficient funds as working capital. The unused balance under these agreements at the end of the fiscal year under review is as follows:

---

| | |
|:---|:---|
|  Total credit line for bank overdraft | ¥36,910 million |
|  Bank loans arranged |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused balance | ¥36,910 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Company has entered into loan commitment agreements with three banks to ensure the procurement of efficient
funds as working capital. The unused balance under these agreements at the end of the fiscal year under review is as follows:

---

| | |
|:---|:---|
|  Total amount of loan commitment | ¥30,000 million |
|  Bank loans arranged |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused balance | ¥30,000 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) UCS Co., Ltd., a consolidated subsidiary of the Company, engages in the credit card cash advance service
business. The unused amount of credit lines given is as follows:

---

| | |
|:---|:---|
|  Total amount of loan commitment | ¥511,430 million |
|  Loan receivables from cash advances | ¥9,219 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused balance | ¥502,211 million |

---

As the credit lines are mostly given to credit card holders of UCS Co., Ltd. for cash advances of credit cards, the amount of all unused balance is not always executed as loan receivables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The Company signed syndicated loan agreements with 16 financial institutions totaling ¥20,000 million.
These agreements include financial covenants based on certain indices calculated from net assets on the consolidated balance sheets.

The unused balance under these agreements at the end of the fiscal year under review is as follows:

Balance of loan payables based on syndicated loan agreements ¥ 20,000 million

------

**5.** **Notes to the Consolidated Statements of Income** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The balance of inventories at the fiscal year-end shows the amount
after writing down the book value due to a decline in profitability. The following amount of loss on valuation of inventories is included in cost of sales.

¥ 1,776 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Breakdown of impairment losses

The Group recognized impairment loss on the following asset groups:

---

| | | | |
|:---|:---|:---|:---|
| Region | Usage | Asset Type | Impairment |
|  Hokkaido | Store facilities | Buildings and structures; tools, furniture and fixtures | ¥546 million |
|  Kanto | Store facilities | Buildings and structures; tools, furniture and fixtures; land; intangible assets (other); long-term prepaid expenses | ¥1,063 million |
|  Chubu | Store facilities | Buildings and structures; tools, furniture and fixtures | ¥138 million |
|  Kinki | Store facilities | Buildings and structures; tools, furniture and fixtures | ¥736 million |
|  Asia | Store facilities | Buildings and structures; tools, furniture and fixtures; intangible assets (other) | ¥1,029 million |
|  North America | Store facilities | Buildings and structures; tools, furniture and fixtures; property, plant and equipment (other); land; right-of-use assets; intangible assets (other) | ¥14,955 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥18,467 million |

---

The Group categorizes its assets by store and operating division, which are the minimum cash-generating units. For rental properties and idle assets, each property is regarded as a minimum cash-generating unit.

In the fiscal year under review, the Group reduced the book value of assets to their recoverable amounts for stores whose profitability declined or stores that continuously generated losses from their operating activities. The amounts of these reductions were recorded as an impairment loss (¥13,060 million for buildings and structures, ¥2,383 million for tools, furniture and fixtures, ¥2 million for property, plant and equipment (other), ¥109 million for land, ¥1,946 million for right-of-use assets, ¥962 million for intangible assets (other), ¥6 million for long-term prepaid expenses under extraordinary losses). The recoverable amounts of these asset groups were determined to be the higher of their net selling value or value in use. The net selling value was mainly based on the appraisal value by a real estate appraiser, whereas the value in use is calculated by discounting the estimated future cash flows by 5.1%. If the value in use based on estimated future cash flows was negative, the Group recognized the recoverable amounts as zero.

------

**6.** **Notes to the Consolidated Statements of Comprehensive Income** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters regarding total number of issued shares

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Class of shares | Beginning of the<br>fiscal year | Beginning of the<br>fiscal year | Increase during<br>the fiscal year | Increase during<br>the fiscal year | Decrease during the<br>fiscal year | Decrease during the<br>fiscal year | Number of shares at<br>end of the fiscal year | Number of shares at<br>end of the fiscal year |
|  Common shares |  | 635,028,540 shares |  | 324,800 shares |  | — shares |  | 635,353,340 shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Note: The breakdown of the increase is as follows. <br> Increase due to exercise of stock options 324,800 shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters regarding treasury shares

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Class of shares | Beginning of the<br>fiscal year | Beginning of the<br>fiscal year | Increase during<br>the fiscal year | Increase during<br>the fiscal year | Decrease during the<br>fiscal year | Decrease during the<br>fiscal year | Number of shares at<br>end of the fiscal year | Number of shares at<br>end of the fiscal year |
|  Common shares |  | 38,073,252 shares |  | 169 shares |  | — shares |  | 38,073,421 shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Note: The breakdown of the increase is as follows. <br> Increase due to the purchase of shares less than one unit 169 shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Matters regarding dividends of surplus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Dividends paid, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Matters regarding dividends by a resolution at the 44th Ordinary General Meeting of Shareholders held on
September 27, 2024

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Total amount of dividends<br>| ¥14,924 million |
| &nbsp;&nbsp;&nbsp;&nbsp; • Dividends per share<br>| ¥25.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Record date<br>| June 30, 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Effective date<br>| September 30, 2024 |

---

Note: The dividends per share include a commemorative dividend of ¥9.0 per share to celebrate consolidated net sales surpassing the ¥2 trillion mark.

ii) Matters regarding dividends by a resolution at the Board of Directors meeting held on February 13, 2025

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Total amount of dividends<br>| ¥5,374 million |
| &nbsp;&nbsp;&nbsp;&nbsp; • Dividends per share<br>| ¥9.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Record date<br>| December 31, 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Effective date<br>| March 25, 2025 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Dividends with a record date during the fiscal year under review, but with an effective date subsequent to the
fiscal year under review

The following proposal regarding dividends on common shares is scheduled to be submitted at the Ordinary General Meeting of Shareholders to be held on September 26, 2025.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Total amount of dividends<br>| ¥15,529 million |
| &nbsp;&nbsp;&nbsp;&nbsp; • Source of dividends<br>| Retained earnings |
| &nbsp;&nbsp;&nbsp;&nbsp; • Dividends per share<br>| ¥26.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Record date<br>| June 30, 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Effective date<br>| September 29, 2025 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Matters regarding share acquisition rights as of the end of the fiscal year under review (excluding those for
which the first day of the exercise period has not yet arrived)

---

| | | | |
|:---|:---|:---|:---|
|  | 1st Series of Share-based<br>Compensation Stock<br>Acquisition Rights | 2nd Series of Share-based<br>Compensation Stock<br>Acquisition Rights | 3rd Series of Share-based<br>Compensation Stock<br>Acquisition Rights |
|  Class of shares subject to rights | Common shares | Common shares | Common shares |
|  Number of shares subject to rights | 2,400 shares | 2,400 shares | 20,000 shares |

---

---

| | | | |
|:---|:---|:---|:---|
|  | 4th Series of Share-based<br>Compensation Stock<br>Acquisition Rights | 5th Series of Share-based<br>Compensation Stock<br>Acquisition Rights | 1st Series of Paid-in Share<br>Acquisition Rights |
|  Class of shares subject to rights | Common shares | Common shares | Common shares |
|  Number of shares subject to rights | 40,000 shares | 80,000 shares | 1,240,800 shares |

---

---

| | | |
|:---|:---|:---|
|  | 7th Series of Share-based<br>Compensation Stock<br>Acquisition Rights | 7th Series of Share-based<br>Compensation Stock<br>Acquisition Rights |
|  Class of shares subject to rights |  | Common shares |
|  Number of shares subject to rights |  | 16,400 shares |

---

------

**7.** **Notes on Financial Instruments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Status of financial instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Policy on financial instruments

The Group's basic policy for management of surplus funds is to give priority to low risk financial assets, investing only in short-term financial instruments. For fund procurement, the Group raises funds mainly through bank loans. The Group uses derivative instruments to minimize exposure to fluctuations in foreign currency exchange and interest rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Financial instruments, associated risks, and risk management systems

Notes and accounts receivable - trade are mainly due from credit companies. They are exposed to credit risk, although the Group believes that the credit risk related to these credit companies is minimal. For operating receivables other than those due from credit companies, the Group manages them individually through monitoring and other measures.

Accounts receivable - installment and operating loans are exposed to credit risk arising from customer default. The Group manages such risk by establishing the credit management system including credit approvals, credit limit setting, and credit information monitoring.

Securities are exposed mostly to market fluctuation risk, credit risk, and liquidity risk. The Group manages and controls exposures to the risks in accordance with its internal rules for managing securities. Significant transactions of securities require prior consultation with the Investment Committee and approval of the Board of Directors.

Lease liabilities are primarily for the purchase of right-of-use assets and exposed to liquidity risk.

Long-term borrowings and bond payable provide funds primarily for capital investment and for working capital. Some long-term borrowings denominated in foreign currencies are exposed to foreign exchange risk. In order to avoid any losses arising from the fluctuation of foreign currencies, derivatives (interest rate currency swaps) are utilized for individual contracts as hedging instruments.

With regard to the execution and management of derivative transactions, the Group manages and operates derivative transactions in accordance with its internal rules for managing securities. Significant transactions of derivative instruments require prior consultation with the Investment Committee and approval of the Board of Directors. The Group believes that the credit risk is limited since the only counterparties to such derivative transactions are financial institutions with a high credit rating.

Trade payables and borrowings are exposed to liquidity risk. The Group manages liquidity risk through such measures as monthly planning of cash flows by each Group company.

Leasehold and guarantee deposits are mainly related to leasing properties for stores. They are exposed to the credit risk of lessors. The Group performs credit checks before concluding lease agreements and monitors creditworthiness of their counterparts regularly to limit the credit risk.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Supplementary information on fair value, etc. of financial instruments

The fair value of financial instruments includes amounts based on quoted market prices, as well as amounts reasonably estimated when quoted market prices are not available. Since the estimate of such amounts takes into account variable factors, the amounts may change depending on the different assumptions and other factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Fair value, etc. of financial instruments

The carrying amounts on the consolidated balance sheets, fair values, and respective differences as of June 30, 2025 (consolidated fiscal year-end for the current period) are presented below. Please note that stocks that do not have quoted market prices are not included in the table below (see Note). Note that "Cash and deposits," "Notes and accounts receivable—trade," "Deposits paid," "Notes and accounts payable - trade," "Accounts payable - other," "Accrued expenses," "Deposits received," and "Income taxes payables" have been omitted, as these are cash-based and settled in a short period of time, and the carrying amounts therefore approximates fair value.

---

| | | | |
|:---|:---|:---|:---|
|  | Carrying amounts on<br>the consolidated<br>balance sheets<br>(Millions of yen) | Fair value<br>(Millions of yen) | Difference<br>(Millions of yen) |
| (1) Accounts receivable - installment | 57749 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts (\*1) | (4484) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred installment income (\*2) | (213) |  |  |
|  | 53053 | 60086 | 7034 |
| (2) Operating loans | 9456 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts (\*1) | (783) |  |  |
|  | 8673 | 10801 | 2128 |
| (3) Investment securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Available-for-sale securities | 17498 | 17498 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Shares of subsidiaries and associates | 12510 | 12674 | 164 |
| (4) Leasehold and guarantee deposits | 68226 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts (\*1) | (878) |  |  |
|  | 67348 | 66749 | (600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 159081 | 167808 | 8726 |

---

------

---

| | | | |
|:---|:---|:---|:---|
|  | Carrying amounts on the<br>consolidated balance<br>sheets (Millions of yen) | Fair value<br>(Millions of yen) | Difference<br>(Millions of yen) |
| (1) Current portion of long-term borrowings | 56375 | 56341 | (34) |
| (2) Current portion of bond payable | 20650 | 20597 | (53) |
| (3) Lease liabilities (Current liabilities) | 2839 | 2847 | 9 |
| (4) Bond payable | 170425 | 168590 | (1835) |
| (5) Long-term borrowings | 156929 | 156220 | (709) |
| (6) Lease liabilities (Non-current liabilities) | 35370 | 35176 | (194) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 442587 | 439771 | (2816) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative transactions (\*3) | [530] | [530] |  |

---

(\*1) Not including allowance for doubtful accounts corresponding to each item.

(\*2) Not including deferred installment income (liabilities account) related to accounts receivable - installment.

---

| | |
|:---|:---|
| (\*3) | Net credit (obligation) arising from derivative transactions is shown as a net amount. If the total is a net obligation, the figures are shown in brackets.  |

---

---

| | |
|:---|:---|
| Note: | Stocks that do not have quoted market prices are not included in "(3) Investment securities." The carrying amounts of these financial instruments on the consolidated balance sheets are as follows.  |

---

---

| | | |
|:---|:---|:---|
| Category | Fiscal year under review<br>(Millions of yen) | Fiscal year under review<br>(Millions of yen) |
|  Investment securities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unlisted shares |  | 2158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of non-consolidated subsidiaries and affiliates |  | 5735 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Expected redemption amounts of monetary claims and securities with a maturity after the consolidated fiscal year-end date

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Due within one<br>year<br>(Millions of yen) | Due after one<br>year and within<br>five years<br>(Millions of yen) | Due after five<br>years and within<br>ten years<br>(Millions of yen) | Due after ten years<br>(Millions of yen) |
|  Cash and deposits | 171958 |  |  |  |
|  Notes and accounts receivable - trade | 18956 |  |  |  |
|  Accounts receivable - installment (Note 1) | 28645 | 16158 | 5487 |  |
|  Operating loans | 4985 | 4437 | 34 |  |
|  Deposits paid | 5764 |  |  |  |
|  Leasehold and guarantee deposits (Note 2) | 1695 | 5352 | 4344 | 3153 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 232001 | 25947 | 9865 | 3153 |

---

---

| | | |
|:---|:---|:---|
| Notes: | 1. | The tables above do not include the amounts of accounts receivable - installment whose collections on maturity dates cannot be reasonably determined. |
|  | 2. | Of leasehold and guarantee deposits, only those confirmed to be collected are presented. Entries without a determined date for collection are not included in the amount to be collected. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Redemption schedule for bond payable, long-term borrowings, and lease liabilities

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Due within<br>one year<br>(Millions<br>of yen) | Due after one<br>year and<br>within two<br>years<br>(Millions of<br>yen) | Due after two<br>years and<br>within three<br>years<br>(Millions of<br>yen) | Due after three<br>years and<br>within four<br>years<br>(Millions of<br>yen) | Due after four<br>years and<br>within five<br>years<br>(Millions of<br>yen) | Due after five<br>years<br>(Millions of<br>yen) |
|  Bond payable | 20650 | 64425 | 10000 | 58000 |  | 38000 |
|  Long-term borrowings | 56375 | 37565 | 20308 | 5194 | 41348 | 52514 |
|  Lease liabilities | 2839 | 3261 | 2882 | 2440 | 2536 | 24251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 79863 | 105250 | 33191 | 65634 | 43884 | 114765 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Breakdown of financial instruments by level of fair value

The fair value of financial instruments is classified into the following three levels according to the observability and materiality of inputs used to measure fair value.

---

| | |
|:---|:---|
| Level 1 fair value: | Level 1 fair value: Fair values measured using observable inputs that are market prices formed in active markets for the assets or liabilities for which fair value is to be measured |
| Level 2 fair value: | Level 2 fair value: Fair values measured using observable inputs other than those used to calculate Level 1 fair value |
| Level 3 fair value: | Level 3 fair value: Fair values measured using unobservable inputs |

---

When multiple inputs that have a significant impact on the measurement of fair value are used, the fair value is categorized to the level with the lowest priority in the measurement of fair value among the levels to which each input belongs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Financial assets and financial liabilities recorded at fair value on the consolidated balance sheets

---

| | | | | |
|:---|:---|:---|:---|:---|
| Category | Fair value (Millions of yen) | Fair value (Millions of yen) | Fair value (Millions of yen) | Fair value (Millions of yen) |
| Category | Level 1 | Level 2 | Level 3 | Total |
|  Investment securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available-for-sale securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares | 17498 |  |  | 17498 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 17498 |  |  | 17498 |
|  Derivative transactions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currency related |  | 2 |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest rate and currency related |  | 528 |  | 528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | 530 |  | 530 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Financial assets and liabilities not recorded at fair value on the consolidated balance sheets

---

| | | | | |
|:---|:---|:---|:---|:---|
| Category | Fair value (Millions of yen) | Fair value (Millions of yen) | Fair value (Millions of yen) | Fair value (Millions of yen) |
| Category | Level 1 | Level 2 | Level 3 | Total |
|  Accounts receivable - installment |  | 60086 |  | 60086 |
|  Operating loans |  | 10801 |  | 10801 |
|  Investment securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of subsidiaries and associates |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares | 12674 |  |  | 12674 |
|  Leasehold and guarantee deposits |  | 66749 |  | 66749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 12674 | 137636 |  | 150310 |
|  Current portion of long-term borrowings |  | 56341 |  | 56341 |
|  Current portion of bond payable |  | 20597 |  | 20597 |
|  Lease liabilities (Current liabilities) |  | 2847 |  | 2847 |
|  Bond payable |  | 168590 |  | 168590 |
|  Long-term borrowings |  | 156220 |  | 156220 |
|  Lease liabilities (Non-current liabilities) |  | 35176 |  | 35176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | 439771 |  | 439771 |

---

Note: Description of the valuation techniques and inputs used in the fair value measurements

<u>Investment securities</u>

Listed shares are valued using quoted prices. As listed shares are traded in active markets, their fair value is classified as Level 1.

<u>Derivative transactions</u>

The fair value of interest rate swaps and forward exchange contracts is calculated mainly based on prices obtained from financial institutions and is classified as Level 2.

<u>Accounts receivable - installment and operating loans</u>

The fair value of these items is measured using the discounted cash flow method based on estimated future cash flows of collectible principal and interest using market rates adjusted by an interest rate for expenses of collecting receivables and is classified as Level 2. Doubtful receivables are stated at the book values after deducting allowance, since such amounts are assumed to approximate fair value.

<u>Leasehold and guarantee deposits</u>

The fair value of leasehold and guarantee deposits is measured using the discounted cash flow method reflecting future cash flows based on an interest rate of government bond yields, etc., and is classified as Level 2.

<u>Bond payable (including current portion)</u>

The fair value of bond payable issued by the Company is measured using the discounted cash flow method based on the sum of principal and interest, remaining bond payables and an interest rate reflecting credit risk and is classified as Level 2.

<u>Long-term borrowings (including current portion) and lease liabilities</u>

The fair value of these items is measured using the discounted cash flow method based on the sum of principal and interest, remaining maturities and an interest rate reflecting credit risk and is classified as Level 2.

------

**8.** **Notes on Business Combination** 

Business combination by acquisition

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Overview of business combination

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Name and business description of the acquired company

---

| | |
|:---|:---|
| Name of acquired company: | Mikuni Restaurant Group, Inc. |
| Business description: | Operation of sushi restaurants |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Main reason for business combination

The acquisition is intended to expand and streamline the food service operations of the Group in North America, and to contribute to the increased recognition and consumption of Japan-branded products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Date of business combination

April 1, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Legal form of business combination

Share acquisition in exchange for cash

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Name of the company after business combination

No change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Ratio of voting rights acquired

---

| | |
|:---|:---|
|  Voting rights ratio immediately before the business combination: | —% |
|  Ratio of voting rights acquired on the day of business combination: | 100% |
|  Voting rights ratio after the business combination: | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Basis for determining the acquiring company

Acquisition of shares in exchange for cash

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Period of the acquired company's results included in the consolidated financial statements

Mikuni Restaurant Group, Inc. has a fiscal year-end of December 31. For consolidation purposes, financial statements based on a provisional closing as of April 1, 2025 were used. Only the balance sheets is included in the fiscal year under review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The breakdown of the acquisition cost and the type of consideration given to acquire the acquired company

Consideration of acquisition <u>Cash</u> <u>¥10,592 million</u> <br> Acquisition cost ¥ 10,592 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The description and amount of major acquisition-related cost

Advisory fee, etc. ¥ 682 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Amount, reason for recognition, amortization method, and amortization period of goodwill

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount of goodwill recognized

¥10,050 million

The amount of goodwill is a provisional calculation, since the acquisition cost is not determined and the allocation of the acquisition cost has not been completed as of the end of the fiscal year under review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Reason for recognition

The acquisition cost exceeded the net amount allocated to acquired assets and assumed liabilities, and the excess was recorded as goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Amortization method and period

Straight-line amortization over 13 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Amounts of assets acquired and liabilities assumed on the date of business combination and their main
components

---

| | |
|:---|:---|
|  | (Millions of yen) |
|  Current assets | 666 |
|  Non-current assets | 3452 |
|  Total assets | 4117 |
|  Current liabilities | 1842 |
|  Non-current liabilities | 1733 |
|  Total liabilities | 3576 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Estimated impact on the consolidated statements of income for the fiscal year under review assuming the
business combination had been completed at the beginning of the consolidated fiscal year, and the basis for calculation

This information has been omitted due to its lack of significance. The calculation of the impact amount has not been subject to audit certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Details of contingent consideration provided for in the business combination contract and the accounting policy
for the relevant fiscal year and thereafter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Details of contingent consideration

The consideration for acquisition does not include contingent consideration. Since the contract stipulates that a contingent consideration (earn-out consideration) up to USD 6 million may be payable upon the fulfillment of certain conditions, the contingent consideration has not been determined at this time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accounting policy for the relevant fiscal year and thereafter

In the event of change in the consideration for acquisition, the acquisition cost will be modified, assuming that the change occurred upon acquisition, and the amount of goodwill and the amount of amortization of goodwill will be modified.

------

**9.** **Notes on Asset Retirement Obligations** 

Asset retirement obligations recorded on the consolidated balance sheets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Summary of asset retirement obligations

Asset retirement obligations recognized are mainly obligations to restore sites according to lease contracts for real estate used for stores.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Calculation method for asset retirement obligations

Asset retirement obligations are calculated on the basis of estimated period of use of one to 42 years and discount rates of 0.00%–3.22%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Changes in the total amount of asset retirement obligations during the fiscal year under review

---

| | |
|:---|:---|
|  Balance at beginning of period | ¥31,423 million |
|  Increase due to acquisition of property, plant and equipment | ¥709 million |
|  Adjustments over time | ¥320 million |
|  Decrease due to performance of asset retirement obligations | ¥(23) million |
|  Decrease due to settlement of asset retirement obligations | ¥(28) million |
|  Other decrease | ¥(12) million |
|  Balance at end of period | ¥32,389 million |

---

**10.** **Notes on Rental and Other Investment Properties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Status of rental and other investment properties

The Company and some of its consolidated subsidiaries own commercial facilities (including land) for lease in Tokyo and other areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Fair values of rental and other investment properties

---

| | | |
|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) |
| Carrying amounts on the consolidated balance sheets | Fair value | Fair value |
|  163,239 |  | 193625 |

---

---

| | | |
|:---|:---|:---|
| Notes: | 1. | The carrying amounts on the consolidated balance sheets are the acquisition cost minus accumulated depreciation and impairment. |
|  | 2. | The fair value at the end of the fiscal year under review is primarily an amount calculated by the Company based on Japanese Real Estate Appraisal Standards, including adjustments made using certain financial indicators. |

---

------

**11.** **Note on Revenue Recognition** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Disaggregation of revenue from contracts with customers

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) | (Millions of yen) | (Millions of yen) |
|  | Reportable segment | Reportable segment | Reportable segment | Reportable segment |
|  | Domestic<br>business | North America<br>business | Asia business | Total |
|  (Discount store business) |  |  |  |  |
|  Home appliances | 92391 |  |  | 92391 |
|  Household goods | 393490 |  |  | 393490 |
|  Foods | 613713 |  |  | 613713 |
|  Watches & fashion | 182209 |  |  | 182209 |
|  Sporting & leisure | 92288 |  |  | 92288 |
|  Others | 21998 |  |  | 21998 |
|  (GMS business) |  |  |  |  |
|  Clothing | 43789 |  |  | 43789 |
|  Household goods | 67551 |  |  | 67551 |
|  Foods | 313828 |  |  | 313828 |
|  Others | 986 |  |  | 986 |
|  (Overseas business) |  |  |  |  |
|  North America |  | 257088 |  | 257088 |
|  Asia |  |  | 91037 | 91037 |
|  Revenue from contracts with customers | 1822243 | 257088 | 91037 | 2170368 |
|  Revenue from other sources (Note) | 73869 | 2348 | 172 | 76390 |
|  Sales to external customers | 1896113 | 259437 | 91209 | 2246758 |

---

Note: "Revenue from other sources" includes revenue based on the ASBJ Statement No. 13 "Accounting Standard for Lease Transactions" and the ASBJ Statement No. 10 "Accounting Standards for Financial Instruments."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Basic information in understanding revenue from contracts with customers

Basic information in understanding revenue is as presented in "1. Notes on Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements, Etc., 4. Accounting policies, (6) Revenue and expense recognition standards" in the Notes to the Consolidated Financial Statements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Basic information in understanding the amount of revenue for the fiscal year under review and beyond

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Balance of receivables from contracts with customers and contract liabilities

Balance of receivables from contracts with customers and contract liabilities are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) | (Millions of yen) | (Millions of yen) |
|  | Fiscal year under review | Fiscal year under review | Fiscal year under review | Fiscal year under review |
|  | Balance at beginning of<br>period | Balance at beginning of<br>period | Balance at end of period | Balance at end of period |
|  Receivables from contracts with customers |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - trade |  | 16894 |  | 18703 |
|  Contract liabilities |  | 18966 |  | 20055 |

---

Contract liabilities include points given to customers when products, etc. are sold and advances received, etc. from payments into the Group's e-money service. These are balances for which the performance obligations have not been satisfied as of the fiscal year-end.

For points, contract liabilities are recognized when points are given to customers, and reversed when the performance obligation is satisfied upon their use or expiration.

For e-money, contract liabilities are recognized when payments into the service are made, and reversed when the performance obligation is satisfied upon products being transferred to a customer.

Revenue recognized in the under review that was included in the contract liability balance at the beginning of the period was ¥18,966 million. Contract liabilities increased by ¥1,089 million in the under review mainly due to an increase of ¥499 million in payments into the e-money service and ¥498 million in the issuance of company-issued gift certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Transaction price allocated to the remaining performance obligations

The description is omitted because the Group has applied the practical expedient as there are no significant transactions with an original expected contract duration of more than one year.

There are no material amounts of compensation from contracts with customers that are not included in the transaction price.

**12.** **Notes on Per Share Information** 

(1) Net assets per share ¥ 1,014.19 <br> (2) Basic earnings per share ¥ 151.59

------

**13.** **Notes on Significant Subsequent Events** 

(Stock split and partial amendment to the Articles of Incorporation associated with the stock split)

On August 18, 2025, the Company's Board of Directors resolved to conduct a stock split, to partially amend the Articles of Incorporation in connection with the split, and to revise the shareholder benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Purpose of stock split

The stock split is intended to enhance the liquidity of the Company's shares and broaden the investor base by lowering amount per trading unit price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Overview of stock split

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Method

Each share held by shareholders recorded in the final shareholder registry as of September 30, 2025, was split at a ratio of five shares for every one share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Increase in number of shares

---

| | |
|:---|:---|
|  Total shares issued before the split: | 635,370,940 shares |
|  Increase in shares due to the split: | 2,541,483,760 shares |
|  Total shares issued after the split: | 3,176,854,700 shares |
|  Total authorized shares after the split: | 9,360,000,000 shares |

---

---

| | |
|:---|:---|
| Note: | Total shares issued above are based on information as of July 31, 2025. However, the number of shares may increase due to the exercise of share acquisition rights or other reasons during the period up to the record date for the stock split.  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Schedule

---

| | |
|:---|:---|
|  Public notice of record date: | September 12, 2025 |
|  Record date: | September 30, 2025 |
|  Effective date: | October 1, 2025 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Impact on per share information

If the stock split had been effective as of the beginning of the under review, per share figures would have been as follows:

<u>As of June 30, 2024</u> <u>As of June 30, 2025</u> <br> Net assets per share ¥ 179.74 ¥ 202.84

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Fiscal year ended June 30, 2024 | Fiscal year ended June 30, 2024 | Fiscal year ended June 30, 2025 | Fiscal year ended June 30, 2025 |
|  Basic earnings per share | ¥ | 29.73 | ¥ | 30.32 |
|  Diluted earnings per share | ¥ | 29.62 | ¥ | 30.19 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Partial amendment to Articles of Incorporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Reason for the amendment

------

In accordance with Article 184, paragraph (2) of the Companies Act of Japan, the Company amended Article 6 of its Articles of Incorporation to reflect the change in authorized shares resulting from the stock split, effective as of October 1, 2025, pursuant to the Board resolution dated August 18, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Details of the amendment

The details of the amendment are as follows.

---

| | |
|:---|:---|
|  | (Amendments are underlined) |
| Current Articles of Incorporation | Amended Article of Incorporation |
|  (Total Authorized Shares)<br> Article 6:The total number of authorized shares of the Company shall be <u>1,872,000,000</u> shares. | (Total Authorized Shares)<br> Article 6:The total number of authorized shares of the Company shall be <u>9,360,000,000</u> shares. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Schedule

Effective date October 1, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Changes to shareholder benefit

The Company granted points for the Group's electronic money service "majica" to shareholders who held 100 shares or more and were listed in the shareholder register as of June 30 or December 31 each year. In connection with the stock split, the shareholder benefit was revised as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Details of change

Before change:

Number of shares held <u> Benefits details</u> <br> ≥100 shares ¥<u>2,000</u> worth of majica points

After change:

---

| | |
|:---|:---|
| Number of shares held | Benefits details |
|  100-300 shares | ¥<u>300</u> worth of majica points |
|  300-500 shares | ¥<u>1,000</u> worth of majica points |
|  ≥500 shares | ¥<u>2,000</u> worth of majica points |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Timing of change

The revised criteria will apply to the post-split number of shares held by shareholders recorded in the shareholder registry as of the record date, December 31, 2025.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Others

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Change in capital

No change in the amount of stated capital as a result of the stock split.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Adjustment to exercise price of share acquisition rights

In connection with the stock split, the exercise price per share of the Company's share acquisition rights was adjusted as follows, effective from October 1, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Board resolution date | Pre-adjustment<br>exercise price | Pre-adjustment<br>exercise price | Post-adjustment<br>exercise price | Post-adjustment<br>exercise price |
|  1st Series of Paid-in Share Acquisition Rights | June 30, 2016 | ¥ | 925 | ¥ | 185 |
|  2nd Series of Paid-in Share Acquisition Rights | October 3, 2022 | ¥ | 2560 | ¥ | 512 |

---

Notes: 1. The pre-adjustment exercise price of the 1st series of paid-in share acquisition rights reflects the 4-for-1 stock split conducted on September 1, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company has issued multiple share-based compensation stock acquisition rights, each with an exercise price
of ¥1 per share. As the resolutions authorizing these rights did not include provisions for adjustment of the exercise price in the event of a stock split, no adjustment to the exercise price has occurred as a result of the stock split.

(Acquisition of treasury shares by an equity-method affiliate)

Kanemi Co., Ltd., previously an equity-method affiliate of the Company, acquired a portion of its issued shares as treasury shares on August 20, 2025.

As a result, the Company came to hold 40.3% of its voting rights, and Kanemi Co., Ltd. was therefore included in the scope of consolidation under the substantive control standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Overview of business combination

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Name and business description of the acquired company

---

| | |
|:---|:---|
| Name of acquired company: | Kanemi Co., Ltd. |
| Business description: | Manufacture and sale of boxed lunches, sushi, rice balls, and prepared foods |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Main reason for business combination

The prepared food business operated by Kanemi Co., Ltd. is expected to achieve high growth in the future. By leveraging the strengths of both companies, we determined that the business combination would enhance corporate value for both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Date of business combination

August 20, 2025 (Deemed acquisition date: September 30, 2025)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Legal form of business combination

Acquisition of treasury shares by the acquired company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Name of the company after business combination

------

No change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Change in voting rights ratio

---

| | |
|:---|:---|
|  Voting rights ratio immediately before the business combination: | 39.4% |
|  Increase in voting rights ratio on the date of business combination: | 0.9% |
|  Voting rights ratio after the business combination: | 40.3% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Basis for determining the acquiring company

The Company's voting rights ratio increased as a result of Kanemi Co., Ltd.'s acquisition of treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters related to calculation of the acquired company, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Acquisition cost of the acquired company

Fair value of shares held immediately before the business combination as of the acquisition date: ¥12,846 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Difference between the acquisition cost of the acquired company and the total acquisition cost of transactions
leading to the acquisition

It has not been determined at this time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Amount, reason for recognition, amortization method, and amortization period of goodwill

It has not been determined at this time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Amounts of assets acquired and liabilities assumed on the date of business combination and their main
components

It has not been determined at this time.

------

**Non-Consolidated Balance Sheets** 

(As of June 30, 2025)

---

| | | | |
|:---|:---|:---|:---|
|  | | (Millions of yen) | (Millions of yen) |
| Account items | Amount | Account items | Amount |
| **Assets** | **Assets** | **Liabilities** | **Liabilities** |
|  **Current assets** | **179982** | **Current liabilities** | **210571** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and deposits | 77753 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term borrowings | 56125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits paid to subsidiaries and associates | 90920 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of bonds payable | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes refund receivable | 252 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 3076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 11060 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits received from subsidiaries and associates | 116953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts | (4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 14418 |
|  **Non-current assets** | **517961** | **Non-current liabilities** | **324163** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Property, plant and equipment** | **91853** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds payable | 170000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 26825 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 152237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 63723 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1306 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1120 |
|  **Intangible assets** | **25332** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | **534734** |
|  **Investments and other assets** | **400775** | **Net assets** | **Net assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities | 5947 | **Shareholders' equity** | **158623** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of subsidiaries and associates | 358676 | &nbsp;&nbsp;&nbsp;&nbsp; **Share capital** | **23689** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans receivable from subsidiaries and associates | 25499 | &nbsp;&nbsp;&nbsp;&nbsp; **Capital surplus** | **24995** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold and guarantee deposits | 3500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal capital surplus | 24995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance funds | 1746 | &nbsp;&nbsp;&nbsp;&nbsp; **Retained earnings** | **190896** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets | 2709 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal retained earnings | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 2700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other retained earnings | 190873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts | (2) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings brought forward | 190873 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; **Treasury shares** | **(80957)** |
|  |  | **Valuation and translation adjustments** | **2506** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; **Valuation difference on available-for-sale securities** | **2506** |
|  |  | **Share acquisition rights** | **2080** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total net assets** | **163209** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | **697943** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and net assets** | **697943** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) Amounts shown are rounded to the nearest million yen.

------

**Non-Consolidated Statements of Income** 

(From July 1, 2024 to June 30, 2025)

---

| | | |
|:---|:---|:---|
|  | (Millions of yen) | (Millions of yen) |
| **Account items** | **Amount** | **Amount** |
|  **Net sales** |  | **100069** |
|  **Operating expenses** |  | **60502** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** |  | **39567** |
|  **Non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividend income | 2339 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on derivatives | 481 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 387 | 3207 |
|  **Non-operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expenses paid on loans and bonds | 2705 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange losses | 3633 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 347 | 6685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ordinary profit** |  | **36088** |
|  **Extraordinary income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of non-current assets | 0 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on liquidation of subsidiaries | 282 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on reversal of share acquisition rights | 2 | 285 |
|  **Extraordinary losses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on retirement of non-current assets | 20 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 7 | 27 |
|  **Profit before income taxes** |  | **36346** |
|  Income taxes - current | 113 |  |
|  Income taxes - deferred | (511) | (399) |
|  **Profit** |  | **36745** |

---

(Note) Amounts shown are rounded to the nearest million yen.

------

**Non-Consolidated Statements of Changes in Net Assets** 

(From July 1, 2024 to June 30, 2025)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | (Millions of yen) |
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | Share capital | Capital surplus | Capital surplus | Retained earnings | Retained earnings | Retained earnings | Treasury<br>shares | Total<br>shareholders'<br>equity |
| | Share capital | Legal capital<br>surplus | Total capital<br>surplus | Legal<br>retained<br>earnings | Other<br>retained<br>earnings | Total retained<br>earnings | Treasury<br>shares | Total<br>shareholders'<br>equity |
| | Share capital | Legal capital<br>surplus | Total capital<br>surplus | Legal<br>retained<br>earnings | Retained<br>earnings<br>brought<br>forward | Total retained<br>earnings | Treasury<br>shares | Total<br>shareholders'<br>equity |
|  Balance at beginning of period | 23538 | 24844 | 24844 | 23 | 174426 | 174449 | (80956) | 141874 |
|  Changes of items during period |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new shares | 151 | 151 | 151 |  |  |  |  | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  |  |  | (20297) | (20297) |  | (20297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit |  |  |  |  | 36745 | 36745 |  | 36745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury shares |  |  |  |  |  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than shareholders' equity |  |  |  |  |  |  |  |  |
|  Total changes of items during period | 151 | 151 | 151 |  | 16447 | 16447 | (1) | 16749 |
|  Balance at end of period | 23689 | 24995 | 24995 | 23 | 190873 | 190896 | (80957) | 158623 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Valuation and translation adjustments | Valuation and translation adjustments | Share acquisition rights | Total net assets |
| | Valuation difference on<br>available-for-sale securities | Total valuation and<br>translation adjustments | Share acquisition rights | Total net assets |
|  Balance at beginning of period | 1767 | 1767 | 1442 | 145084 |
|  Changes of items during period |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new shares |  |  |  | 302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  |  | (20297) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit |  |  |  | 36745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury shares |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than shareholders' equity | 739 | 739 | 638 | 1377 |
|  Total changes of items during period | 739 | 739 | 638 | 18125 |
|  Balance at end of period | 2506 | 2506 | 2080 | 163209 |

---

(Note) Amounts shown are rounded to the nearest million yen.

------

Notes to the Non-Consolidated Financial Statements

**1.** **Notes on Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Basis and method of valuation of assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Basis and method of valuation of securities

Shares of subsidiaries and affiliates, and investments in other securities of subsidiaries and associates

Cost method by determining the cost using the moving average method

Available-for-sale securities

Securities other than stocks that do not have quoted market prices

Fair value method (The amounts of unrealized gains or losses from such securities, after accounting for tax effects, are presented in net assets. Costs of securities sold are calculated using the moving average method.)

Stocks that do not have quoted market prices

Cost method by determining the cost using the moving average method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Basis and method of valuation of derivatives

Fair value method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Depreciation method for non-current assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Property, plant and equipment (excluding lease assets)

Declining-balance method

However, the Company uses the straight-line method for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016.

The useful life and residual value are determined in accordance with the Corporation Tax Act of Japan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Intangible assets (excluding lease assets)

Straight-line method

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Lease assets

Lease assets and right-of-use assets are depreciated using the straight-line method over the lease term with no residual value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Basis for provision and allowance

Allowance for doubtful accounts

To prepare for bad debt expenses such as

------

accounts receivable and loans receivable, an estimated uncollectable amount is provided at the amount estimated by either using the actual historical rate of credit loss for general receivables, or based on individual consideration of collectability for specific receivables such as highly doubtful receivables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Revenue and expense recognition standards

Revenue of the Company primarily consists of dividends from subsidiaries, consulting fee income, outsourcing service income, and real estate rental income.

Dividend income is recognized as revenue on the effective date of the dividends.

Consulting fee income and outsourcing service income relate to contracted services provided to subsidiaries. Revenue is recognized at the point when the service is performed, as the Company's performance obligation is satisfied at that point.

Real estate rental income primarily relates to leases of properties owned by the Company to its subsidiaries, and revenue is recognized in accordance with the ASBJ Statement No. 13 "Accounting Standard for Lease Transactions" and other standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Accounting treatment for deferred assets

(i) Share issuance costs Expense as incurred <br> (ii) Bond issuance costs Expense as incurred

**2.** **Notes on Changes in Accounting Policies** 

(Application of the "Accounting Standard for Current Income Taxes," etc.)

From the beginning of the fiscal year under review, the Company has adopted the "Accounting Standard for Current Income Taxes" (ASBJ Statement No. 27, October 28, 2022; hereinafter the "2022 Revised Accounting Standard"), etc.

Regarding the amendments to the classification of income taxes, the Company has followed the transitional treatment prescribed in the proviso to paragraph 20-3 of the 2022 Revised Accounting Standard. This change in accounting methods has no impact on the non-consolidated financial statements.

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**3.** **Notes on Significant Accounting Estimates** 

(Impairment of non-current assets)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amount presented on the non-consolidated statements of income for the
fiscal year under review

---

| | |
|:---|:---|
|  | (Millions of yen) |
|  | Fiscal year under review |
|  Impairment losses |  |

---

On the non-consolidated balance sheets, the book value of property, plant and equipment is ¥91,853 million, and the book value of intangible assets is ¥25,332 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information on the details of significant accounting estimates of identified item

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Method of calculating the amount of impairment loss

The Company categorizes its assets by rental property and idle asset as the smallest group of assets that generates cash flows. The Company determines whether or not there is any indication of impairment of rental properties and idle assets on an individual property basis. If any such indication exists, the Company determines whether or not it needs to recognize an impairment loss. As a result of such determination, if the Company needs to recognize an impairment loss, it reduces the book value of the asset to its recoverable amount, and recognizes the reduction as an impairment loss.

The Company determines that its assets have an indication of impairment when a property's profitability declines due to a seriously deteriorating operating environment and other factors; a property continuously generates losses from its operating activities; and a property whose market price significantly declines.

The Company determines that it needs to recognize an impairment loss of a property that has any indication of impairment when the total amount of undiscounted future cash flows is lower than the book value of the property.

The recoverable amount of each asset is determined to be the higher of either its net selling value or value in use. The net selling value is calculated based on factors such as the appraisal value by a real estate appraiser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Major assumptions used in significant accounting estimates

The Company takes into account the real estate market conditions, the operating environment, and other factors for each individual property, and calculates future cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Impacts on the non-consolidated financial statements for the following
fiscal year

The aforementioned estimates and assumptions involve a high degree of uncertainty because they are affected by the future operating environment and changes in market trends. Therefore, depending on the future circumstances, an impairment loss may arise in the following fiscal year.

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**4.** **Notes to the Non-Consolidated Balance Sheets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Accumulated depreciation of property, plant and equipment¥11,404 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Monetary claims and obligations with subsidiaries and associates are as follows. (excluding those that are
presented separately)

(i) Short-term monetary claims ¥ 9,448 million

(ii) Long-term monetary claims ¥ 3,845 million

(iii) Short-term monetary obligations ¥ 9,688 million

(iv) Long-term monetary obligations ¥ 571 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Contingent obligations

Guarantee of obligation and guarantee booking

The Company provides guarantee of obligation for bonds and other debt instruments issued by the following subsidiaries, associates, etc.

---

| | | |
|:---|:---|:---|
| Guarantee recipient | Amount<br>(Millions of yen) | Description |
|  Koigakubo SC TMK | 100 | Debt on specific bonds payable |
|  Asset Property Management Co., Ltd. | 5000 | Requests for purchase of preferred stock |

---

In addition to the above, the Company provides joint and several guarantees for all obligations, including rent payments, incurred by subsidiaries, associates, etc. as the lessee under real estate lease agreements.

Joint and several guarantee for lessee obligations under land lease agreements ¥ 14 million per month

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Company entered into bank overdraft agreements with 25 banks to ensure the procurement of efficient funds
as working capital. The unused balance under these agreements at the end of the fiscal year under review is as follows:

---

| | |
|:---|:---|
|  Total credit line for bank overdraft | ¥34,500 million |
|  Bank loans arranged |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused balance | ¥34,500 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Company has entered into loan commitment agreements with three banks to ensure the procurement of efficient
funds as working capital. The unused balance under these agreements at the end of the fiscal year under review is as follows:

---

| | |
|:---|:---|
|  Total amount of loan commitment | ¥30,000 million |
|  Bank loans arranged |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unused balance | ¥30,000 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The Company signed syndicated loan agreements with 16 financial institutions totaling ¥20,000 million.
These agreements include financial covenants based on certain indices calculated from net assets on the consolidated balance sheets.

The unused balance under these agreements at the end of the fiscal year under review is as follows:

Balance of loan payables based on syndicated loan agreements ¥ 20,000 million

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**5.** **Notes to the Non-Consolidated Statements of Income** 

Transactions with subsidiaries and associates

---

| | | |
|:---|:---|:---|
|  Operating transactions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating income | ¥ | 100,028 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating expenses | ¥ | 3,082 million |
|  Transactions from non-operating transactions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-operating income | ¥ | 2,147 million |

---

**6.** **Notes to the Non-Consolidated Statements of Comprehensive Income** 

Number of treasury shares

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Class of shares | Beginning of the<br>fiscal year | Beginning of the<br>fiscal year | Increase during the<br>fiscal year | Increase during the<br>fiscal year | Decrease during the<br>fiscal year | Decrease during the<br>fiscal year | Number of shares at<br>end of the fiscal year | Number of shares at<br>end of the fiscal year |
|  Common shares |  | 38,073,252 shares |  | 169 shares |  | — shares |  | 38,073,421 shares |

---

Note: The breakdown of the increase is as follows.

Increase due to the purchase of shares less than one unit 169 shares

------

**7.** **Notes on Tax Effect Accounting** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Significant components of deferred tax assets and liabilities

---

| | |
|:---|:---|
|  Deferred tax assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued enterprise tax | ¥7 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued bonuses | ¥569 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Excess depreciation and amortization over tax purposes | ¥814 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses | ¥152 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of investment securities not deductible for tax purposes | ¥38 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | ¥249 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based payment expenses | ¥78 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commission expenses | ¥1,316 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax loss carryforwards | ¥395 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | ¥768 million |
|  Subtotal of deferred tax assets | ¥4,387 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for the total amount of deductible temporary differences | ¥(524) million |
|  Subtotal of valuation allowance | ¥(524) million |
|  Total of deferred tax assets | ¥3,863 million |
|  Deferred tax liabilities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation difference on available-for-sale securities | ¥(1153) million |
|  Total of deferred tax liabilities | ¥(1153) million |
|  Net deferred tax assets | ¥2,709 million |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Adjustments to deferred tax assets and deferred tax liabilities due to changes in rates for income taxes, etc.

In accordance with the enactment of the "Act on Partial Revision to the Income Tax Act" (Act No. 13 of 2025) by the Japanese Diet on March 31, 2025, the "Special Defense Corporate Tax" will be imposed from fiscal years beginning on or after April 1, 2026.

Accordingly, for deferred tax assets and deferred tax liabilities related to temporary differences expected to reverse in and after the fiscal year beginning on July 1, 2026, the statutory tax rate used in the calculations has been changed from 30.6% to 31.5%.

As a result of this change, in the fiscal year under review, deferred tax assets (the amount after deducting deferred tax liabilities) increased by ¥36 million, while income taxes—deferred decreased by ¥69 million and valuation difference on available-for-sale securities decreased by ¥33 million.

------

**8.** **Notes on Non-current Assets Held Under Leases** 

(As a lessee)

Operating lease transactions

Lease transactions under lease agreements

---

| | |
|:---|:---|
|  Future lease payments |  |
|  Due within one year | ¥316 million |
|  Due after one year | ¥2,894 million |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | ¥3,210 million |

---

Note: This contains information regarding lease agreements with non-cancellable clauses that the Company has entered into with property owners.

**9.** **Notes on Asset Retirement Obligations** 

Asset retirement obligations recorded on the non-consolidated balance sheets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Summary of asset retirement obligations

Asset retirement obligations recognized are obligations to restore sites according to business-purpose fixed-term land lease contracts for land and buildings for lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Calculation method for asset retirement obligations

Asset retirement obligations are calculated on the basis of estimated period of use of 11 to 34 years and discount rates of 1.19%–2.17%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Changes in the total amount of asset retirement obligations during the fiscal year under review

---

| | |
|:---|:---|
|  Balance at beginning of period | ¥829 million |
|  Adjustments over time | ¥4 million |
|  Decrease due to settlement of asset retirement obligations | ¥(28) million |
|  Balance at end of period | ¥806 million |

---

**10.** **Notes on Revenue Recognition** 

Basic information in understanding revenue from contracts with customers

Basic information in understanding revenue is as presented in "1. Notes on Significant Accounting Policies, (4) Revenue and expense recognition standards" in the Notes to the Non-Consolidated Financial Statements.

------

**11.** **Notes on Transactions With Related Parties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subsidiaries, etc.

(Millions of yen)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | Name | Address | Share<br>capital | Business or<br>occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Relationship<br>with related<br>parties | Detail of<br>transactions | Transaction<br>amount | Account<br>items | Balance at end<br>of period |
| Subsidiary | Don Quijote<br>Co., Ltd. | Meguro-ku,<br>Tokyo | 300 | Discount<br>store<br>business and<br>tenant<br>leasing<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 4 | Deposits<br>received<br>from the<br>CMS | 36459 | Affiliate<br> Deposits<br>received | (Note 1) |
| Subsidiary | Don Quijote<br>Co., Ltd. | Meguro-ku,<br>Tokyo | 300 | Discount<br>store<br>business and<br>tenant<br>leasing<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 4 | Outsourcing<br>service<br> income(Note 2) | 26056 |  |  |
| Subsidiary | Don Quijote<br>Co., Ltd. | Meguro-ku,<br>Tokyo | 300 | Discount<br>store<br>business and<br>tenant<br>leasing<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 4 | Receipt of<br>dividends | 28743 |  |  |
| Subsidiary | UNY Co.,<br>Ltd. | Inazawa-shi,<br>Aichi | 100 | GMS<br>business and<br>tenant<br>leasing<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 2 | Deposits<br>received<br>from the<br>CMS | 2947 | Affiliate<br> Deposits<br>paid | (Note 1) |
| Subsidiary | UNY Co.,<br>Ltd. | Inazawa-shi,<br>Aichi | 100 | GMS<br>business and<br>tenant<br>leasing<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 2 | Outsourcing<br>service<br> income(Note 2) | 12395 |  |  |
| Subsidiary | UNY Co.,<br>Ltd. | Inazawa-shi,<br>Aichi | 100 | GMS<br>business and<br>tenant<br>leasing<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 2 | Receipt of<br>dividends | 10600 |  |  |
| Subsidiary | Nagasakiya<br>Co., Ltd. | Meguro-ku,<br>Tokyo | 300 | Discount<br>store<br>business | Indirect<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 1 | Deposits<br>received<br>from the<br>CMS | 2193 | Affiliate<br> Deposits<br>received | (Note 1) |
| Subsidiary | Japan Asset<br>Marketing<br>Co., Ltd. | Edogawa-<br>ku, Tokyo | 37591 | Real estate<br>leasing and<br>management<br>business | Direct<br> 80.9%<br> Indirect<br> 19.1% | Directors<br>holding<br>concurrent<br>positions: 1 | Deposits<br>received<br>from the<br>CMS | 8801 | Affiliate<br> Deposits<br>received | (Note 1) |
| Subsidiary | Skygreen<br>Co., Ltd. | Meguro-ku,<br>Tokyo | 100 | Real estate<br>leasing and<br>management<br>business | Direct<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 1 | Deposits<br>received<br>from the<br>CMS | 198 | Affiliate<br> Deposits<br>received | (Note 1) |
| Subsidiary | UD Retail<br>Co., Ltd. | Meguro-ku,<br>Tokyo | 300 | Discount<br>store<br>business and<br>tenant<br>leasing<br>business | Indirect<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 2 | Deposits<br>received<br>from the<br>CMS | 4249 | Affiliate<br> Deposits<br>paid | (Note 1) |
| Subsidiary | Asset<br>Property<br>Management<br>Co., Ltd. | Edogawa-<br>ku, Tokyo | 100 | Real estate<br>leasing and<br>management<br>business | Indirect<br> 100.0% |  | Deposits<br>received<br>from the<br>CMS | 8626 | Affiliate<br> Deposits<br>paid | (Note 1) |
| Subsidiary | Japan<br>Commercial<br>Facilities<br>Co., Ltd. | Edogawa-<br>ku, Tokyo | 300 | Tenant<br>leasing<br>business | Indirect<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 1 | Deposits<br>received<br>from the<br>CMS | 3039 | Affiliate<br> Deposits<br>received | (Note 1) |
| Subsidiary | REALIT<br>Co., Ltd. | Shibuya-ku,<br>Tokyo | 100 | Advertising<br>and<br>promotion<br>business | Direct<br> 5.5%<br> Indirect<br> 94.5% |  | Deposits<br>received<br>from the<br>CMS | 626 | Affiliate<br> Deposits<br>received | (Note 1) |
| Subsidiary | Sakurano<br>DEPT<br>Sendai Co.,<br>Ltd. | Meguro-ku,<br>Tokyo | 10 | Real estate<br>leasing and<br>management<br>business | Direct<br> 100.0% |  | Lending of<br> funds(Note 3) | 430 | Affiliate<br> Long-<br>term<br>loans<br>receivable | 8960 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | Name | Address | Share capital | Business or<br>occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Relationship<br>with related<br>parties | Detail of<br>transactions | Transaction<br>amount | Account<br>items | Balance at end<br>of period |
| Subsidiary | Pan Pacific<br>Retail<br>Management<br>(USA) Co. | Delaware,<br>USA | USD<br>249 million | Strategic<br>planning,<br>management<br>guidance,<br>oversight, and<br>administration<br>of North<br>America<br>business | Indirect<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 2 | Decrease in<br>loans<br>receivable<br>due to<br>contribution<br> in kind(Note 4) | 53769 |  |  |
| Subsidiary | Pan Pacific<br>Strategy<br>Institute Pte.<br>Ltd. | The<br>Republic<br>of<br>Singapore | USD<br>1,073 million | Management<br>of overseas<br>group<br>companies<br>and related<br>operations | Direct<br> 71.2%<br> Indirect<br> 28.8% | Directors<br>holding<br>concurrent<br>positions: 2 | Contribution<br> in kind(Note 4) | 90560 |  |  |
| Subsidiary | Pan Pacific<br>Strategy<br>Institute Pte.<br>Ltd. | The<br>Republic<br>of<br>Singapore | USD<br>1,073 million | Management<br>of overseas<br>group<br>companies<br>and related<br>operations | Direct<br> 71.2%<br> Indirect<br> 28.8% | Directors<br>holding<br>concurrent<br>positions: 2 | Underwriting<br>of capital<br> increase(Note 5) | 26150 |  |  |
| Subsidiary | Pan Pacific<br>Strategy<br>Institute Pte.<br>Ltd. | The<br>Republic<br>of<br>Singapore | USD<br>1,073 million | Management<br>of overseas<br>group<br>companies<br>and related<br>operations | Direct<br> 71.2%<br> Indirect<br> 28.8% | Directors<br>holding<br>concurrent<br>positions: 2 | Decrease in<br>loans<br>receivable<br>due to<br>contribution<br> in kind(Note 4) | 17670 | Affiliate<br> Long-<br>term<br>loans<br>receivable | 341 |
| Subsidiary | Pan Pacific<br>Retail<br>Management<br>(Guam) Co.,<br>Ltd. | Guam,<br>USA | USD<br>35 million | Discount<br>store business | Indirect<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 1 | Decrease in<br>loans<br>receivable<br>due to<br>contribution<br> in kind(Note 4) | 19121 |  |  |
| Subsidiary | Pan Pacific<br>Retail<br>Management<br>(Guam) Co.,<br>Ltd. | Guam,<br>USA | USD<br>35 million | Discount<br>store business | Indirect<br> 100.0% | Directors<br>holding<br>concurrent<br>positions: 1 | Guarantee of<br>obligation | (Note 6) |  |  |

---

Terms and conditions of transactions and their decisions, etc.

---

| | |
|:---|:---|
| Notes: 1. | The Company has implemented a Cash Management System (CMS), and the transaction amounts related to deposits received from the CMS pertain to the CMS.  |

---

Interest rates are determined reasonably based on market rates, and no collateral has been provided. The transaction amount related to deposits received from the CMS reflects the net increase or decrease from the balance at the end of the previous period. In addition, the total balance of deposits paid in the CMS and the total balance of deposits received from the CMS were ¥86,093 million and ¥111,496 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Outsourcing service income are determined through consultation between the relevant company and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. With regard to the lending of funds, interest rates are determined reasonably based on market rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The contribution in kind was made through a debt-equity swap of a ¥17,670 million loan held against
Pan Pacific Strategy Institute Pte. Ltd., and in exchange for which the Company acquired an equity interest in the company. The Company also made a contribution in kind of ¥53,769 million in loans held against Pan Pacific Retail Management
(USA) Co. and ¥19,121 million in loans held against Pan Pacific Retail Management (Guam) Co., Ltd., and acquired an equity interest in Pan Pacific Strategy Institute Pte. Ltd. in exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The underwriting of capital increase involved the full underwriting of the capital increase carried out by the
relevant subsidiary.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Company has provided a joint and several guarantee of ¥14 million per month for all obligations,
including rent payments, incurred by the subsidiary as the lessee under a land lease agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Officers and major individual shareholders, etc.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | |  |  |  |  | | | (Millions of yen) |
| Category | Name | Address | Share<br>capital | Business<br>or<br>occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Relationship<br>with related<br>parties | Detail of<br>transactions | Transaction<br>amount | Account<br>items | Balance at end<br>of period |
| Foundation at which a director serves as chairman | Yasuda<br>Scholarship<br>Foundation | Shibuya-<br>ku,<br>Tokyo |  | (Note 1) | (Owned)<br> Direct2.4% | Directors<br>holding<br>concurrent<br>positions:<br>3 | Compensation<br>received for<br>seconded<br> employees(Note 2) | 14 |  |  |
| Company at which the majority of voting rights are held by a director and/or his/her close relatives | Palau Coral<br>Club Co.,<br>Ltd. | The<br>Republic<br>of Palau | USD<br>90 million | Hotel<br>business |  | Directors<br>holding<br>concurrent<br>positions:<br>1 | Outsourcing<br>service<br> income(Note 3) | 18 |  |  |

---

---

| | |
|:---|:---|
| Notes: 1. | The purpose of the foundation's activities is to provide scholarships to international students who face financial difficulties in pursuing their studies, to nurture talented individuals, and to contribute to the improvement of the quality of international students, thereby fostering friendship and goodwill between Japan and the home countries of international students.  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The secondment fee for the dispatch of seconded employees is determined by agreement through mutual
consultation based on the salary of the seconded employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Outsourcing fee income is determined by agreement through mutual consultation between the relevant company and
the Company.

**12.** **Notes on Per Share Information** 

(1) Net assets per share ¥ 269.77

(2) Basic earnings per share ¥ 61.54

**13.** **Notes on Significant Subsequent Events** 

The notes have been omitted as the same content is included in "13. Notes on Significant Subsequent Events" in the Notes to the Consolidated Financial Statements.

------

**Accounting Audit Report on Consolidated Financial Statements** 

**Independent Auditors' Report (Translation)** 

August 27, 2025

---

| |
|:---|
| To the Board of Directors of |
| Pan Pacific International Holdings Corporation |
| UHY Tokyo & Co. |
| Shinagawa-ku, Tokyo |
| Designated and Engagement Partner |
| Certified Public Accountant |
| Nobuyuki Hara |
| Designated and Engagement Partner |
| Certified Public Accountant |
| Shuichi Yatsuda |
| Designated and Engagement Partner |
| Certified Public Accountant |
| Hikoichi Inoue |

---

*Audit Opinion* 

Pursuant to Article 444, paragraph (4) of the Companies Act, we have audited the consolidated financial statements, comprising the consolidated balance sheets, the consolidated statements of income, the consolidated statements of changes in net assets and the notes to the consolidated financial statements of Pan Pacific International Holdings Corporation (the "Company") applicable to the fiscal year from July 1, 2024 through June 30, 2025.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position and results of operations of the Group, which consisted of the Company and its consolidated subsidiaries, as of the date and for the period for which the consolidated financial statements were prepared in accordance with the corporate accounting standards generally accepted in Japan.

*Basis for Audit Opinion* 

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its consolidated subsidiaries in accordance with the provisions related to professional ethics in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

------

*Other Information* 

Other information is the business report and supplementary schedules. Management is responsible for the preparation and disclosure of the other information. The Audit and Supervisory Committee is responsible for supervising the execution of duties by Directors regarding the establishment and implementation of a reporting process for other information.

The scope of our audit opinion on the consolidated financial statements does not cover the other information, and we do not express an opinion on the other information.

Our responsibility in the audit of the consolidated financial statements is to read the other information and, in the course of reading, to consider whether there are material inconsistencies between the other information and the consolidated financial statements or our knowledge obtained in the course of the audit, and to pay attention to whether there are any indications of material misstatements in the other information other than such material inconsistencies.

If, based on the work we have performed, we conclude that a material misstatement exists in other information, we are required to report that fact.

We have nothing to report with respect to the other information.

*Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial Statements* 

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan; this includes the maintenance and operation of such internal control as management determines is necessary to enable the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare the consolidated financial statements with the assumption of the entity's ability to continue as a going concern and disclosing matters related to going concern as applicable in accordance with accounting principles generally accepted in Japan.

The Audit and Supervisory Committee is responsible for supervising the execution of duties by Directors regarding the establishment and implementation of the financial reporting process.

*Auditor's Responsibilities for the Audit of the Consolidated Financial Statements* 

Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the decisions of users taken on the basis of the consolidated financial statements.

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

• Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the consolidated financial statements is not expressing an opinion on the effectiveness of the internal control.

------

• Evaluate the appropriateness of accounting policies used by management and their method of application, as well
as the reasonableness of accounting estimates by management and related notes thereto.

• Conclude on the appropriateness of management's use of the going concern basis for preparing the
consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we
conclude that a material uncertainty on the entity's ability to continue as a going concern exists, we are required to draw attention in our auditor's report to the related notes to the consolidated financial statements or, if the notes
to the consolidated financial statements on material uncertainty are inadequate, to express a qualified opinion with exceptions on the consolidated financial statements. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.

• Evaluate whether the presentation of the consolidated financial statements and the notes thereto are in
accordance with accounting principles generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the consolidated financial statements, including the related notes thereto, and whether the consolidated
financial statements fairly represent the underlying transactions and accounting events.

• Plan and perform audit of the consolidated financial statements to obtain sufficient and appropriate audit
evidence regarding the financial information of the Company and its consolidated subsidiaries to provide a basis for our opinion on the consolidated financial statements. We are responsible for the direction, supervision and inspection of the audit
of the consolidated financial statements. We remain solely responsible for our audit opinion.

We communicate with the Audit and Supervisory Committee regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit, and other matters required by auditing standards.

We also provide the Audit and Supervisory Committee with a statement that we have complied with the provisions related to professional ethics in Japan regarding independence, and communicate with it all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, convey details of any measures taken in order to eliminate obstruction factors or any safeguards applied in order to reduce obstruction factors to an acceptable level.

*Interest* 

Our firm and the designated engagement partners have no interest in the Company and its consolidated subsidiaries which should be disclosed in accordance with the Certified Public Accountants Act.

------

**Accounting Audit Report on Non-Consolidated Financial Statements** 

**Independent Auditors' Report (Translation)** 

August 27, 2025

---

| |
|:---|
|  To the Board of Directors of |
|  Pan Pacific International Holdings Corporation |
| UHY Tokyo & Co. |
| Shinagawa-ku, Tokyo |
| Designated and Engagement Partner |
| Certified Public Accountant |
| Nobuyuki Hara |
| Designated and Engagement Partner |
| Certified Public Accountant |
| Shuichi Yatsuda |
| Designated and Engagement Partner |
| Certified Public Accountant |
| Hikoichi Inoue |

---

*Audit Opinion* 

Pursuant to Article 436, paragraph (2), item (i) of the Companies Act, we have audited the non-consolidated financial statements, comprising the non-consolidated balance sheets, the non-consolidated statements of income, the non-consolidated statements of changes in net assets, the notes to the non-consolidated financial statements and the related supplementary schedules (the "non-consolidated financial statements, etc.") of Pan Pacific International Holdings Corporation (the "Company") applicable to the 45th fiscal term from July 1, 2024 through June 30, 2025.

In our opinion, the non-consolidated financial statements, etc. referred to above present fairly, in all material respects, the financial position and results of operations of the Company as of the date and for the period for which the non-consolidated financial statements were prepared in accordance with the corporate accounting standards generally accepted in Japan.

*Basis for Audit Opinion* 

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Non-Consolidated Financial Statements, Etc. section of our report. We are independent of the Company in accordance with the provisions related to professional ethics in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Other Information* 

Other information is the business report and supplementary schedules. Management is responsible for the preparation and disclosure of the other information. The Audit and Supervisory Committee is responsible for supervising the execution of duties by Directors regarding the establishment and implementation of a reporting process for other information.

------

The scope of our audit opinion on the non-consolidated financial statements, etc. does not cover the other information, and we do not express an opinion on the other information.

Our responsibility in the audit of the non-consolidated financial statements, etc. is to read the other information and, in the course of reading, to consider whether there are material inconsistencies between the other information and the non-consolidated financial statements, etc. or our knowledge obtained in the course of the audit, and to pay attention to whether there are any indications of material misstatements in the other information other than such material inconsistencies.

If, based on the work we have performed, we conclude that a material misstatement exists in other information, we are required to report that fact.

We have nothing to report with respect to the other information.

*Responsibilities of Management and the Audit and Supervisory Committee for the Non-Consolidated Financial Statements, Etc.* 

Management is responsible for the preparation and fair presentation of the non-consolidated financial statements, etc. in accordance with accounting principles generally accepted in Japan; this includes the maintenance and operation of such internal control as management determines is necessary to enable the preparation and fair presentation of non-consolidated financial statements, etc. that are free from material misstatement, whether due to fraud or error.

In preparing the non-consolidated financial statements, etc., management is responsible for assessing whether it is appropriate to prepare the non-consolidated financial statements, etc. with the assumption of the entity's ability to continue as a going concern and disclosing matters related to going concern as applicable in accordance with accounting principles generally accepted in Japan.

The Audit and Supervisory Committee is responsible for supervising the execution of duties by Directors regarding the establishment and implementation of the financial reporting process.

*Auditor's Responsibilities for the Audit of the Non-Consolidated Financial Statements, Etc.* 

Our responsibilities are to obtain reasonable assurance about whether the non-consolidated financial statements, etc. as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the non-consolidated financial statements, etc. based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the decisions of users taken on the basis of the non-consolidated financial statements, etc.

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Selecting audit procedures to be applied is at the discretion of the auditor. In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

• Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the non-consolidated financial statements, etc. is not expressing an opinion on the effectiveness of the internal
control.

• Evaluate the appropriateness of accounting policies used by management and their method of application, as well
as the reasonableness of accounting estimates by management and related notes thereto.

------

• Conclude on the appropriateness of management's use of the going concern basis for preparing the non-consolidated financial statements, etc. and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's
ability to continue as a going concern. If we conclude that a material uncertainty on the entity's ability to continue as a going concern exists, we are required to draw attention in our auditor's report to the related notes to the non-consolidated financial statements, etc. or, if the notes to the non-consolidated financial statements, etc. on material uncertainty are inadequate, to express a qualified
opinion with exceptions on the non-consolidated financial statements, etc. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or
conditions may cause the entity to cease to continue as a going concern.

• Evaluate whether the presentation of the non-consolidated financial
statements, etc. and the notes thereto are in accordance with accounting principles generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the non-consolidated financial statements, etc. including the related notes thereto, and whether the non-consolidated financial statements, etc., fairly represent the underlying transactions and accounting events.

We communicate with the Audit and Supervisory Committee regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit, and other matters required by auditing standards.

We also provide the Audit and Supervisory Committee with a statement that we have complied with the provisions related to professional ethics in Japan regarding independence, and communicate with it all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, convey details of any measures taken in order to eliminate obstruction factors or any safeguards applied in order to reduce obstruction factors to an acceptable level.

*Interest* 

Our firm and the designated engagement partners have no interest in the Company which should be disclosed in accordance with the Certified Public Accountants Act.

------

**Audit Report by Audit and Supervisory Committee** 

**Audit Report** 

The Audit and Supervisory Committee of Pan Pacific International Holdings Corporation (the "Company") has audited the execution of duties by Directors of the Company during the 45th fiscal term from July 1, 2024 through June 30, 2025. We report the methods and results of the audit as follows.

1. Methods and results of the audit

In regard to the contents of resolutions of the Board of Directors regarding the matters stated in Article 399-13, paragraph (1), items (i)(b) and (i)(c) of the Companies Act, as well as the systems developed pursuant to those resolutions (i.e. internal control systems), the Audit and Supervisory Committee periodically received reports from Directors, employees, etc. regarding the status of the establishment and operation of those systems and requested explanations as necessary, expressed our opinions in regard thereto, and conducted audits using the following methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In accordance with the audit policies, division of duties, etc. established by the Audit and Supervisory
Committee, we attended important meetings, received reports from Directors, employees, etc. regarding the matters concerning the execution of their duties, requested explanations as necessary, viewed important approved documents, etc., and inspected
the status of operations and assets at the head office and main business locations, in collaboration with the internal control division of the Company. Additionally, in regard to subsidiaries, we communicated and exchanged information with
directors, audit and supervisory board members, etc. of subsidiaries and received reports on business from subsidiaries as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) We oversaw and verified whether the Accounting Auditor maintained an independent position and conducted an
appropriate audit, received reports from the Accounting Auditor on the status of the execution of its duties, and requested explanations as necessary. Additionally, we received notification from the Accounting Auditor that, in accordance with the
"Quality Control Standards for Audits" (Business Accounting Council), etc., it had developed systems in order to ensure that its duties are appropriately performed (i.e., notification of the matters stated in the items of Article 131 of
the Regulations for Corporate Accounting) and requested explanations as necessary.

Using the methods above, we examined the business report, the supplementary schedules thereto, the non-consolidated financial statements (i.e., the non-consolidated balance sheets, non-consolidated statements of income, non-consolidated statements of changes in net assets, and notes to the non-consolidated financial statements), the supplementary schedules to the non-consolidated financial statements, and the consolidated financial statements (i.e., the consolidated balance sheets, consolidated statements of income, consolidated statements of changes in net assets, and notes to the consolidated financial statements) for the fiscal year ended June 30, 2025.

------

2. Results of audit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Results of audit of the Business Report, etc.

1) We find that the business report and the supplementary schedules thereto accurately present the status of the Company in accordance with laws, regulations, and the Articles of Incorporation.

2) We do not find any misconduct nor any material fact constituting a violation of any law, regulation, or the Articles of Incorporation in relation to the execution of duties by Directors.

3) We find the content of the resolutions of the Board of Directors regarding internal control systems to be reasonable. Additionally, we do not find any matters that should be commented upon in regard to the statements in the Business Report or the execution of duties by Directors relating to the internal control systems. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Results of audit of the non-consolidated financial statements and the
supplementary schedules thereto

We find the methods and results of the audit by the Accounting Auditor, UHY Tokyo & Co., to be reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Results of audit of the consolidated financial statements

We find the methods and results of the audit by the Accounting Auditor, UHY Tokyo & Co., to be reasonable.

September 1, 2025

---

| |
|:---|
| Audit and Supervisory Committee of |
| Pacific International Holdings Corporation |
| Yasunori Yoshimura (seal) |
| Audit and Supervisory Committee Member |
| Jumpei Nishitani (seal) |
| Audit and Supervisory Committee Member |
| Masaharu Kamo (seal) |
| Audit and Supervisory Committee Member |
| Takaki Ono (seal) |
| Audit and Supervisory Committee Member |
| Naoko Kishimoto (seal) |
| Audit and Supervisory Committee Member |

---

(Note) Audit and Supervisory Committee Members Yasunori Yoshimura, Jumpei Nishitani, Masaharu Kamo, Takaki Ono, and
Naoko Kishimoto are Outside Directors as stipulated in Article 2, item (xv) and Article 331, paragraph (6) of the Companies Act.

------

**Business Report** 

**1.** **Matters Concerning the Current Status of the Corporate Group** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Main Business Activities (as of February 28, 2026)

The Group is engaged in retail and retail related businesses and consists of the Company and 27 consolidated subsidiaries.

Furthermore, under a holding company structure, the Company oversees companies engaged in the following businesses and are responsible for formulating management strategies for the entire Group, allocating management resources, and managing and controlling the business execution of each operating company. In addition to undertaking administrative operations on behalf of these companies, the Company fosters new business initiatives throughout the entire group. Our primary sources of revenue include dividend income, real estate rental income, and administrative service commissions.

---

| | |
|:---|:---|
| Business Activities | Main Products |
| Retail business | Retail sales of processed foods, fresh foods, sports and leisure goods, watches, bags, shoes, interior goods, household goods, daily sundries, home appliances, pets, pet supplies, DIY and gardening supplies, bicycles, bicycle accessories, golf equipment, and automotive supplies, etc.; operation of grooming salons, pet hotels, and veterinary clinics; offering of services including home renovation, bicycle repair, and automotive repair |
| Retail related business | Services including transportation, storage, home delivery, and construction of goods; development of stores; management and operation of shopping centers; development of PB products; production and wholesale of prepared foods and boxed lunches; development and wholesale of bicycles; development, operation, and sales of computer systems, etc. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Major Business Locations (as of February 28, 2026)

---

| | |
|:---|:---|
| Olympic Group Corporation | Headquarters: Kokubunji-shi, Tokyo |
| Olympic Co., LTD. | Main office: Kokubunji-shi, Tokyo<br> Stores: 50 stores in Tokyo, 13 stores in Kanagawa, 7 stores in Chiba, 11 stores in Saitama, 1 store in Gunma |
| OSC Amaike Co., Ltd. | Main office: Higashikurume-shi, Tokyo<br> Stores: 10 stores in Tokyo, 1 store in Saitama |
| Miuraya Co., Ltd. | Main office: Suginami-ku, Tokyo<br> Stores: 7 stores in Tokyo<br> Offices: 2 offices in Tokyo, 1 office in Saitama |
| OSC Foods Co., Ltd. | Main office: Akishima-shi, Tokyo<br> Factories: Akishima-shi, Tokyo; Edogawa-ku, Tokyo |
| OSC Bakery Co., Ltd. | Main office: Kokubunji-shi, Tokyo<br> Factory: Kita-ku, Tokyo |
| Olympic Cellar Co., Ltd. | Main office: Kokubunji-shi, Tokyo<br> Store : 1 store in Kanagawa |
| OSC Trading Co., Ltd. | Main office: Kokubunji-shi, Tokyo |

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| | |
|:---|:---|
| OSC Fast Food Service Co., Ltd. | Main office: Kokubunji-shi, Tokyo<br> Stores: 5 stores in Tokyo, 7 stores in Kanagawa, 3 stores in Chiba, 4 stores in Saitama |
| Grain Coffee Roaster Co., Ltd. | Main office: Kokubunji-shi, Tokyo<br> Stores: 1 store in Tokyo, 1 store in Kanagawa, 1 store in Chiba |
| GOUT Co., Ltd. | Main office: Tokorozawa-shi, Saitama<br> Stores: 13 stores in Tokyo, 1 store in Chiba, 4 stores in Saitama, 4 stores in Hokkaido,<br> 2 stores in Miyagi, 1 store in Ibaraki, 1 store in Shizuoka |
| Cycle Olympic Corporation | Main office: Fuchu-shi, Tokyo<br> Stores: 15 stores in Tokyo, 5 stores in Kanagawa, 3 stores in Chiba, 5 stores in Saitama |
| OSC Cycle Corporation | Main office: Fuchu-shi, Tokyo |
| Your Petia Corporation | Main office: Niiza-shi, Saitama<br> Stores: 11 stores in Tokyo, 9 stores in Kanagawa, 4 stores in Chiba, 4 stores in Saitama |
| Your Petia Salon Corporation. | Main office: Niiza-shi, Saitama<br> Stores: 9 stores in Tokyo, 7 stores in Kanagawa, 3 stores in Chiba, 4 stores in Saitama |
| Animal General Medical Center Corporation | Main office: Niiza-shi, Saitama<br> Facilities: 2 facilities in Tokyo, 1 facility in Kanagawa, 1 facility in Chiba, 1 facility in Saitama |
| Ouchi DEPO Corporation | Main office: Yokohama-shi, Kanagawa<br> Stores: 8 stores in Tokyo, 6 stores in Kanagawa, 3 stores in Chiba, 2 stores in Saitama |
| OSC Home Facility Co., Ltd. | Main office: Kokubunji-shi, Tokyo<br> Stores: 10 stores in Tokyo, 4 stores in Kanagawa, 2 stores in Saitama |
| Shoes Forest Corporation | Main office: Kokubunji-shi, Tokyo<br> Store : 1 store in Kanagawa |
| FOLME Corporation | Main office: Kokubunji-shi, Tokyo |
| OSC Cleanness Co., Ltd. | Main office: Kokubunji-shi, Tokyo |
| Kirara Corporation | Main office: Akishima-shi, Tokyo<br> Distribution centers: Akishima-shi, Tokyo |
| Score Corporation | Main office: Kokubunji-shi, Tokyo |
| Avance Corporation | Main office: Shinjuku-ku, Tokyo |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Employee Information (as of February 28, 2026)

1) Status of employees of the corporate group

<u> Number of employees</u> <u> Increase/decrease from the previous fiscal year-end</u> <br> 1,457 (2,397) persons -46 (-186) persons

(Notes) The number of employees refers to full-time employees and the average annual number of contract employees,
part-time employees, and temporary workers, converted to an 8-hour workday, is shown in parentheses.

2) Status of employees of the Company

Number of employees <u> Change from the end of the previous fiscal year</u> <u> Average age</u> <u> Average length of service</u> <br> 30 (10) persons -1 (-1) persons 48.8 years old 16.8 years

(Notes) The number of employees refers to full-time employees and the average annual number of contract employees,
part-time employees, and temporary workers, converted to an 8-hour workday, is shown in parentheses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Major Lenders and Loan Amounts (as of February 28, 2026)

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| | | |
|:---|:---|:---|
| **Lender** | **Outstanding loan balance**<br>**(Millions of yen)** | **Outstanding loan balance**<br>**(Millions of yen)** |
|  Mizuho Bank, Ltd. |  | 11315 |
|  Sumitomo Mitsui Banking Corporation |  | 3401 |
|  MUFG Bank, Ltd. |  | 1987 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Other significant matters concerning the current status of the corporate group

Not applicable.

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**2.** **Current Status of the Company** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Officers of the Company

3) Matters concerning outside officers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Significant concurrent positions held as an executive officer at other corporations, etc. and relationship
between such corporations, etc. and the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Director Satoru Koyama is the Senior Managing Director of the Japan Construction Equipment Manufacturers
Association. There is no special relationship between the Company and Japan Construction Equipment Manufacturers Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Audit and Supervisory Board Member Eri Shigemasu is a professor at Aoyama Gakuin University. There is no special
relationship between the Company and Aoyama Gakuin University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Audit and Supervisory Board Member Shoji Tabata is the President of Shoji Tabata Certified Public Tax Accountant
Office. There is no special relationship between the Company and Shoji Tabata Tax Accountant Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Significant concurrent positions held as an outside director, etc. at other corporations, etc. and relationship
between such corporations, etc. and the Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Director Hideo Mori is an Outside Audit and Supervisory Board Member of Ginza Yamagataya Co., Ltd. Ginza
Yamagataya Co., Ltd. holds 4.13% of the Company's total outstanding shares (excluding treasury shares), and the Company holds 12.5% of Ginza Yamagataya's total outstanding shares (excluding treasury shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Main activities during the fiscal year under review

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| | | |
|:---|:---|:---|
| Name | Title | Attendance, remarks made, and summary of duties regarding the roles<br> expected of Outside Directors |
| Toshiyuki Noda | Outside Director | He attended all 11 of the Board of Directors meetings held during the fiscal year under review. At the meeting of the Board of Directors, he provides advice and recommendations, as necessary, from the standpoint of supervising business execution. He also attends meetings of the Audit and Supervisory Board and fulfills his supervisory duties based on his deep knowledge of accounting and legal principles. |
| Hideo Mori | Outside Director | He attended all 11 of the Board of Directors meetings held during the fiscal year under review. At the meeting of the Board of Directors, he provides advice and recommendations, as necessary, based on his experience in corporate management. He also attends meetings of the Audit and Supervisory Board and fulfills his supervisory duties based on his extensive knowledge as a management executive. |
| Satoru Koyama | Outside Director | He attended all 11 of the Board of Directors meetings held during the fiscal year under review. At the meeting of the Board of Directors, he provides advice and recommendations, as necessary, based on his extensive experience. He also attends meetings of the Audit and Supervisory Board and fulfills his supervisory duties based on the high level of insight he has cultivated over the course of his career. |
| Eri Shigemasu | Outside Audit and Supervisory Board Member | She attended all 11 of the Board of Directors meetings and all 12 Audit and Supervisory Board meetings held during the fiscal year under review. At the meeting of the Board of Directors, she provides advice and recommendations, as necessary, based on her extensive knowledge and experience. At the Audit and Supervisory Board meetings, she actively contributes her views regarding the execution of auditing duties. |
| Shoji Tabata | Outside Audit and Supervisory Board Member | He attended all 11 of the Board of Directors meetings and all 12 Audit and Supervisory Board meetings held during the fiscal year under review. At the meeting of the Board of Directors, he provides advice and recommendations, as necessary, drawing on his professional expertise as a certified public accountant. At the Audit and Supervisory Board meetings, he actively contributes his views regarding the execution of auditing duties. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Shares (as of February 28, 2026)

---

| | |
|:---|:---|
| 1) Total number of authorized shares | 33,200,000 shares |
| 2) Total number of issued shares | 23,354,223 shares |
|  | (including 383,712 shares of treasury shares) |
| 3) Number of shareholders | 5,840 persons |
| 4) Major Shareholders (Top 10) |  |

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---

| | | |
|:---|:---|:---|
| Name of shareholders | Number of shares held<br>(shares) | Ratio of shareholding<br>(%) |
|  Kaneyoshi Corporation | 6395500 | 27.85 |
|  Olympic Trading-Partner Shareholding Association | 2055719 | 8.95 |
|  Olympia Corporation | 1126500 | 4.90 |
|  Mr. Clean Co., Ltd. | 1104100 | 4.80 |
|  Ginza Yamagataya Co., Ltd. | 949408 | 4.13 |
|  Mizuho Bank, Ltd. | 918137 | 3.99 |
|  Healthcare Japan Co., Ltd. | 904860 | 3.94 |
|  FUJI Co., Ltd. | 646900 | 2.81 |
|  Katsuya Yugi | 500000 | 2.17 |
|  Olympic Employee Shareholding Association | 434282 | 1.85 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Notes) The ratio of shareholding is calculated after deducting treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Share acquisition rights, etc.

Not applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Accounting Auditor

1) Name Ernst & Young ShinNihon LLC

2) Total amount of compensation, etc. 

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| | |
|:---|:---|
|  | Amount paid<br>(Millions of yen) |
|  Amount of remuneration, etc. as Accounting Auditor for the fiscal year under review | 68 |
|  Total money and other economic benefits to be paid to the Accounting Auditor by the Company and its subsidiaries | 68 |

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| | | |
|:---|:---|:---|
| (Notes) | 1. | In its audit agreement with the Accounting Auditor, the Company makes no clear distinction between the remuneration, etc. that it pays for auditing services governed by the Companies Act and for auditing services governed by the Financial Instruments and Exchange Act and such distinction cannot be made in practice. Consequently, the amount of remuneration, etc. for the Accounting Auditor for the fiscal year under review is the sum of these amounts. |
|  | 2. | The Audit and Supervisory Board has reviewed the Accounting Auditor's audit plan, the status of the audit, and the basis for calculating the remuneration estimates, and, as a result of this review, has approved the remuneration, etc. of the Accounting Auditor. |

---

3) Details of non-audit services

Not applicable.

4) Policy for determining dismissal or non-reappointment of the Accounting Auditor

In the event that there is an obstacle preventing the Accounting Auditor from performing its duties, the Audit and Supervisory Board, if it is deemed necessary, will determine the content of a proposal to be proposed to the General Meeting of Shareholders concerning the dismissal or non-reappointment of the Accounting Auditor.

Also, the Audit and Supervisory Board will dismiss the Accounting Auditor if it judges that any of the items stipulated in Article 340, paragraph (1) of the Companies Act is applicable to the Accounting Auditor, based on the consent of all Audit and Supervisory Board members. In this case, an Audit and Supervisory Board member appointed by the Audit and Supervisory Board will report the fact of dismissal and the reasons thereof at the first General Meeting of Shareholders convened after the dismissal.

5) Outline of the contents of the limited liability agreement

Pursuant to Article 427, Paragraph 1 of the Companies Act, the Company has entered into an agreement with Ernst & Young ShinNihon LLC to limit their liability for damages under Article 423, Paragraph 1 of the Companies Act. The maximum amount of liability for damages under such agreement is the minimum liability amount stipulated by law.

------

**3.** **System Ensuring the Appropriateness of Operations, the Operational Status of the System, etc.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Overview of decisions regarding the system ensuring the appropriateness of operations

The following is an overview of the decisions regarding the system ensuring the execution of duties by Directors complies with the Company's Articles of Incorporation and prevailing laws and regulations, and the system ensuring the appropriateness of operations at the Company.

1) System ensuring the execution of duties by Directors complies with the Company's Articles of Incorporation and prevailing laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the execution of our duties, our fundamental policy is to base our corporate conduct on compliance with laws
and regulations as well as adherence to social principles, in accordance with our basic philosophy (Selling Honesty), laws and regulations, our Articles of Incorporation, and internal rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Directors will lead by example in establishing and implementing systems to ensure compliance with the
Group's basic philosophy, in accordance with the Code of Conduct based on our fundamental principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To ensure the proper conduct of our business and maintain public trust, we will establish an internal control
system in accordance with the Companies Act and develop the necessary operational framework.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has established "Rules of the Board of Directors" to ensure the proper operation of the
Board of Directors, and regular meetings of the Board of Directors are to be held once a month in principle, with extraordinary meetings held as needed. The Directors shall pass resolutions on matters for discussion in accordance with the Rules of
the Board of Directors, foster communication among themselves, seek opinions from outside experts as necessary, and implement a system to mutually supervise the execution of business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With regard to the execution of duties by Directors, as a company with an Audit and Supervisory Board, we will
ensure that the supervisory system functions effectively, with each Auditor conducting audits of their designated areas in accordance with the "Rules of the Audit and Supervisory Board" established by the Audit and Supervisory Board, the
audit policy, and the division of duties among Auditors. Furthermore, if a Director discovers that another Director has violated laws, regulations, or the Articles of Incorporation, they shall immediately report such violation to the Audit and
Supervisory Board, and the system will ensure that corrective measures are taken without delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Compliance Committee, headed by the Director in charge, will serve as the body overseeing our legal
compliance framework, deliberating on the development and operation of the framework, reporting to the Board of Directors, the Audit and Supervisory Board, the Audit Office (which reports directly to the President and Representative Director), and
relevant departments, and will work to ensure thorough implementation and adherence across the entire company.

2) System for storing and managing information related to the execution of duties by Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The storing and management of information related to the execution of duties by Directors shall be carried out in
accordance with the "Document Management Rules," with the Director in charge serving as the person with overall responsibility.

------

3) System to ensure reliability of financial reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We view compliance with the internal control reporting system under the Financial Instruments and Exchange Act as
part of our efforts to develop an infrastructure to strengthen our corporate foundation, and we are committed to establishing and operating effective and efficient internal controls to ensure the reliability of our financial reporting.

4) Rules and system for managing the risk of loss

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Director in charge shall serve as the person with overall responsibility of risk management and, together
with the other Directors, systematically manage risks by category in accordance with the "Rules on Administrative Authority," "Rules on Group Company Management," "Risk Management Rules," "Rules on
Acceptance of Requests for Information System Operation and Management," and "Rules on Internal Control over Financial Reporting."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each department conducts risk management in accordance with relevant rules, manuals, and guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Auditors and the Audit Office audit the risk management status of each department and report the results to the
Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Directors and the Group Management Committee shall periodically review the risk management system to
identify issues and implement improvements.

5) System ensuring efficient execution of duties by Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Director in charge shall serve as the person with overall responsibility of overseeing the efficient
execution of duties to ensure that each department meets its targets, which are based on the annual management plan approved by the Board of Directors. The Directors in charge of each department determine the specific measures to be implemented by
their respective departments and the most efficient operational structures, based on the annual management plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Director in charge shall require the Directors of each department to report regularly on the status of
implementation at Board of Directors meetings and Group Management Committee meetings, and shall analyze and address factors that hinder the implementation of initiatives and the establishment of an efficient operational framework.

6) System ensuring the execution of duties by employees complies with the Company's Articles of Incorporation and prevailing laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have established a "Code of Conduct" based on our basic philosophy, and our Representative
Director communicates the spirit of this Code to all employees, including executives and staff at our group companies to ensure that compliance with laws and regulations and adherence to social principles form the foundation of our corporate
conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Compliance Committee examines the status of rules and their implementation regarding major laws and
regulations relevant to the Company's operations and businesses. In collaboration with the Internal Control Committee and the Audit Office (the internal audit organization), it reports to and provides guidance to relevant departments and
organizational functions regarding the establishment and operation of operational systems, as well as specific implementation methods.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The relevant departments establishes rules and operational manuals, etc., and ensures that each employee
thoroughly implements best practice regarding relevant laws and regulations through each organization's headquarter functions, various meeting bodies, and information communication systems, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Furthermore, in accordance with the "Rules Concerning the Protection of Whistleblowers," we have
established a whistleblowing hotline to facilitate the early detection and correction of misconduct and other violations, and are committed to strengthening our compliance framework through our internal reporting system.

7) System ensuring the appropriateness of operations at the Company and at its subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With regard to the business execution of each company within our Group, the Director in charge and the General
Manager of the Corporate Planning Department oversee and manage these operations on a daily basis in accordance with the "Group Company Management Rules," "Group Compliance Rules," "Risk Management Rules," and
"Internal Control Rules for Financial Reporting." In addition, various meetings are held on a regular basis to facilitate the smooth exchange of information and promote group management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. System for reporting matters pertaining to the execution of duties by Directors, etc. of subsidiaries to the
Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In accordance with the "Group Company Management Rules," each company within our Group submits
reports and other documents to the Company and, as necessary, reports to relevant governing bodies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Rules and system for managing the risk of loss of subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has established a group-wide risk management framework based on rules such as the "Group
Company Management Rules," the "Risk Management Rules," and the "Rules on Administrative Authority" of each Group company, and manages the risks of subsidiaries within our organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. System ensuring efficient execution of duties by Directors, etc. of subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Group management meetings are held to report monthly P/L and B/S, to manage and execute tasks across the entire
group and at individual companies, and to manage monthly cash flow and identify issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. System ensuring the execution of duties by Directors, etc. and employees of subsidiaries complies with the
Articles of Incorporation and prevailing laws and regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Compliance Committee is managed by representatives from each company within our Group and deliberates on the
development and operation of the Group's overall legal compliance framework.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Auditors and the Audit Office conduct regular and ad hoc audits of the Group's management structure.

8) Issues pertaining to employees that assist Auditors when such assistance is required

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the event that Auditors requests the appointment of employees to assist them in their duties, the Board of
Directors shall designate members of the Audit Office as such staff.

9) Issues pertaining to the independence of employees from Directors in the event that Auditors requests the appointment of such employees to assist in the performance of their duties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Audit Office independently establishes its audit plan and conducts the audit upon obtaining approval from the
President and Representative Director, and submits audit reports and other documents to the President and Representative Director and the Board of Corporate Auditors.

------

10) Issues pertaining to the effectiveness of instructions given by Auditors to employees that assist the Auditors when such assistance is required 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Auditors shall be delegated the authority to direct the employees of the Audit Office who are designated to
assist the Auditors in the performance of their duties.

11) Systems for Directors and employees, as well as Directors, Auditors, and employees of subsidiaries, or persons receiving reports from such individuals, to report to the Auditors and other systems related to reporting to the Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Directors and employees of each company within our Group shall promptly report any business risks to the Auditors
through the appropriate decision-making channels, and any violations of laws and regulations through the Compliance Consultation Desk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With regard to violations of laws and regulations, not just the person in charge of handling the reports, but
anyone who receives such report shall endeavor to handle the matter in good faith in accordance with the rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a report of a violation of laws or regulations is received and an investigation confirms that such a violation
has occurred, the Directors shall take corrective action and report the facts to the Auditors.

12) System to ensure that individuals who report to the Auditors are not subject to any adverse treatment on the basis of such reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In accordance with the "Rules on the Protection of Whistleblowers," the Company will take appropriate
measures to ensure that individuals who report matters to the Auditors are not subjected to adverse treatment on the basis of their report, and that their work environment does not deteriorate as a result. In addition, the Company may impose
disciplinary action in accordance with the Rules of Employment against any person who subjects a whistleblower to adverse treatment, harassment, or similar conduct.

13) Matters concerning policies regarding the handling of expenses or liabilities arising from the performance of duties by Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company shall include in its budget, in advance, any expenses deemed necessary for the execution of the
duties of the Auditors, and may request reimbursement from the Company for any expenses incurred on an emergency or ad hoc basis.

14) Other systems for ensuring the effectiveness of audits by the Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• More than half of the Auditors shall consist of Outside Auditors to ensure transparency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Auditors shall meet regularly with the Representative Director, the Directors in charge, the Accounting Auditor,
the Audit Office, and the Internal Control Committee to exchange opinions on issues to be addressed by the Group, risks related to the Group, matters concerning the improvement of the auditing environment for the Auditors, and important auditing
issues. In addition, they shall attend the monthly meetings of the Board of Directors and strive to share with the Directors the matters discussed and reported at such meetings.

15) System for eliminating antisocial forces

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The "Group Compliance Code" and the "Olympic Group Compliance Guidelines" incorporate the
provisions stating that we will never have any relationship with antisocial forces and will not provide them with any funds under any circumstances, and we will ensure these provisions are thoroughly communicated both internally and externally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The General Affairs Department serves as the point of contact for handling cases involving unreasonable demands
from antisocial forces or situations where it is discovered that the Company has unwittingly engaged with such groups, and the General Manager of the General Affairs Department will work in coordination with external specialized agencies and other
relevant parties to sever any relations with antisocial forces. Regular updates will also be provided to the Board of Directors regarding this process.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The General Manager of the General Affairs Department shall cooperate with external specialized agencies to sever
relations with antisocial forces, develop internal systems to prevent problems from arising, and report the status of such activities to the Board of Directors on a regular basis. In addition, a full-time alumnus of the Metropolitan Police
Department will be assigned to this system, which will allow for close collaboration with external specialized agencies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Overview of the operational status of the system ensuring the appropriateness of operations

The overview of the operational status of the system ensuring the appropriateness of operations during the fiscal year under review is outlined below, and we have confirmed that the system is being properly operated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Directors held 11 meetings to resolve important matters, report on the status of execution of
duties, and supervise the execution of business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Corporate Auditors held 12 meetings, during which each Corporate Auditor reported on the status of
audits, received reports on internal audits from the Audit Office, and conducted audits the execution of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Internal Control Committee was convened to conduct an evaluation of internal controls related to financial
reporting and review the evaluation results, and the Compliance Committee was convened to deliberate on the operation and development of the Group's overall legal compliance framework.

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**4.** **Policy on the Distribution of Retained Earnings, etc.** 

The Company has been distributing dividends from retained earnings, based on the recognition that one of the most important management priorities is to ensure stable returns to our shareholders while securing the necessary internal reserves for future business development and strengthening of our financial foundation.

Going forward, we will adhere to this basic policy and provide a stable return of profits to shareholders, taking into consideration our future group business strategy, the strengthening of our financial position, and our business performance for each fiscal year, etc. Furthermore, retained earnings will be used for investments aimed at developing new businesses and improving the efficiency and vitality of existing businesses. In addition, the Company will appropriately implement share repurchases to improve capital efficiency and to enable the implementation of flexible capital policies in response to future changes in the business environment.

The Company's Articles of Incorporation stipulate that the Company may pay dividends from surplus by resolution of the Board of Directors pursuant to the provisions of Article 459, Paragraph 1 of the Companies Act, changed this to a resolution of the General Meeting of Shareholders from the previous fiscal year. With regard to the acquisition of treasury shares, the Company may acquire treasury shares by resolution of the Board of Directors pursuant to the provisions of Article 165, Paragraph 2 of the Companies Act.

The Company's Articles of Incorporation stipulate that the Company may pay dividends from surplus twice a year, as interim dividend and a year-end dividend, but the Company did not pay an interim dividend during the fiscal year under review.

Furthermore, with regard to the purchase of treasury shares, the Company did not carry out any purchases based on a resolution of the Board of Directors during the fiscal year under review.

**5.** **Basic Policy on Corporate Governance** 

The Company has not established any specific basic policy regarding corporate governance.

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**<u>Consolidated Balance Sheets</u>**

(As of February 28, 2026)

---

| | | | |
|:---|:---|:---|:---|
|  | | (Thousands of yen) | (Thousands of yen) |
| Assets | Assets | Liabilities | Liabilities |
| Account items | Amount | Account items | Amount |
|  **Current assets** | **18043840** | **Current liabilities** | **30254642** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and deposits | 4581743 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 8057027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - trade | 2067068 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 17978236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchandise | 9509505 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 147967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1885523 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued consumption tax, etc. | 560686 |
|  **Non-current assets** | **46604658** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for bonuses | 276736 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Property, plant and equipment** | **27278021** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 175653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings and structures | 10893812 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | **3058335** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery and transport equipment | 860516 | **Non-current liabilities** | **13331435** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 14482408 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 10075577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1041283 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 1220173 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Intangible assets** | **2496705** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit liabilities | 23279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 930895 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities | 35786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1565809 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 1088388 |
|  **Investments and other assets** | **16829930** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 888230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities | 899326 | **Total liabilities** | **43586077** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans receivable | 1191647 | **Net assets** | **Net assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retirement benefit asset | 355882 | **Shareholders' equity** | **20669608** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets | 428728 | &nbsp;&nbsp;&nbsp;&nbsp; **Share capital** | **9946386** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease and guarantee deposits | 13400551 | &nbsp;&nbsp;&nbsp;&nbsp; **Capital surplus** | **9829566** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 553794 | &nbsp;&nbsp;&nbsp;&nbsp; **Retained earnings** | **1186790** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; **Treasury shares** | **(293134)** |
|  |  | **Accumulated other comprehensive income** | **392811** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp; **Valuation difference on available-for-sale securities** | **392811** |
|  |  | **Total net assets** | **21062420** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | **64648498** | **Total liabilities and net assets** | **64648498** |

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------

**<u>Consolidated Statements of Income</u>**

(From March 1, 2025 to February 28, 2026)

---

| | | |
|:---|:---|:---|
|  | (Thousands of yen) | (Thousands of yen) |
| **Account items** | **Amount** | **Amount** |
|  **Net sales** |  | **90809482** |
|  **Cost of sales** |  | **61308528** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit** |  | **29500953** |
|  **Operating revenue** |  | **7348039** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating profit** |  | **36848992** |
|  Selling, general and administrative expenses |  | **39221950** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating loss** |  | **(2372957)** |
|  **Non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 24449 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends received | 13539 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gains on debt acceptance | 18709 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation income | 225000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsidy income | 24330 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 28618 | **334647** |
|  **Non-operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 477012 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental expense | 81721 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 24217 | **582951** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ordinary profit (loss)** |  | **(2621262)** |
|  **Extraordinary income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of non-current assets | 1438 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of investment securities | 1253 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlement income | 589600 | **592291** |
|  **Extraordinary losses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on retirement of non-current assets | 177753 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment losses | 685350 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on termination of lease contracts | 133549 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation losses | 102594 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on store closings | 587294 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Company funeral related expenses | 19596 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of memberships rights | 10000 | **1716139** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net loss before income taxes and distribution of profit/loss to silent partnerships** |  | **(3745109)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution of profit/loss to silent partnerships |  | **(39945)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net loss before income taxes** |  | **(3705164)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes - current | 143185 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes - deferred | (49824) | **93361** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) |  | **(3798525)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Profit (loss) attributable to owners of parent** |  | **(3798525)** |

---

------

**Consolidated Statements of Changes in Net Assets** 

(From March 1, 2025 to February 28, 2026)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | (Thousands of yen) | (Thousands of yen) | (Thousands of yen) | (Thousands of yen) | (Thousands of yen) |
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | Share capital | Capital<br>surplus | Retained<br>earnings | Treasury<br>shares | Total<br>shareholders'<br>equity |
|  Balance at beginning of period | 9946386 | 9829566 | 5444726 | (293116) | 24927562 |
|  Changes of items during period |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  | (459411) |  | (459411) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) attributable to owners of parent |  |  | (3798525) |  | (3798525) |
|  Purchase of treasury shares |  |  |  | (17) | (17) |
|  Net changes in items other than shareholders' equity |  |  |  |  |  |
|  Total changes of items during period |  |  | (4257936) | (17) | (4257954) |
|  Balance at end of period | 9946386 | 9829566 | 1186790 | (293134) | 20669608 |

---

---

| | | | |
|:---|:---|:---|:---|
| | Accumulated other comprehensive<br>income | Accumulated other comprehensive<br>income | Total net<br>assets |
| | Valuation<br>difference on<br>available-for-sale<br>securities | Total accumulated<br>other<br>comprehensive<br>income | Total net<br>assets |
|  Balance at beginning of period | 227853 | 227853 | 25155416 |
|  Changes of items during period |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  | (459411) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit (loss) attributable to owners of parent |  |  | (3798525) |
|  Purchase of treasury shares |  |  | (17) |
|  Net changes in items other than shareholders' equity | 164958 | 164958 | 164958 |
|  Total changes of items during period | 164958 | 164958 | (4092995) |
|  Balance at end of period | 392811 | 392811 | 21062420 |

---

------

**Notes to the Consolidated Financial Statements** 

**1.** **Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Scope of consolidation

1) Number of consolidated subsidiaries and names of major consolidated subsidiaries

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Number of consolidated subsidiaries<br>| 27 companies |
| &nbsp;&nbsp;&nbsp;&nbsp; • Names of major consolidated subsidiaries<br>| Olympic Co., Ltd. |
|  | OSC F/One Co., Ltd. |
|  | OSC Amaike Co., Ltd. |
|  | Miuraya Co., Ltd. |
|  | OSC Foods Co., Ltd. |
|  | OSC Bakery Co., Ltd. |
|  | Olympic Cellar Co., Ltd. |
|  | OSC Trading Co., Ltd. |
|  | OSC Fast Food Service Co., Ltd. |
|  | Grain Coffee Roaster Co., Ltd. |
|  | GOUT Co., Ltd. |
|  | Cycle Olympic Corporation |
|  | OSC Cycle Corporation |
|  | Your Petia Corporation |
|  | Your Petia Salon Corporation |
|  | Animal General Medical Center Corporation |
|  | Ouchi DEPO Corporation |
|  | OSC Home Facility Co., Ltd. |
|  | OSC Golf World Corporation |
|  | Shoes Forest Corporation |
|  | MK Cars Corporation |
|  | FOLME Corporation |
|  | OSC Cleanness Co., Ltd. |
|  | Kirara Corporation |
|  | Score Corporation |
|  | Avance Corporation |
|  | K Mart Corporation |
| &nbsp;&nbsp;&nbsp;&nbsp; • During the consolidated fiscal year under review, OSC Meat Corporation and OSC Fish Corporation were dissolved through an absorption-type merger with Olympic Co., Ltd. as the surviving company, and have been excluded from the scope of consolidation. | &nbsp;&nbsp;&nbsp;&nbsp; • During the consolidated fiscal year under review, OSC Meat Corporation and OSC Fish Corporation were dissolved through an absorption-type merger with Olympic Co., Ltd. as the surviving company, and have been excluded from the scope of consolidation. |

---

------

2) Names, etc. of major non-consolidated subsidiaries

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Names of major non-consolidated subsidiaries<br>|  |
|  | OSC Life Products Co., Ltd. |
| &nbsp;&nbsp;&nbsp;&nbsp; • Reason for exclusion from the scope of consolidation<br>|  |
|  | The company is small in scale, and its total assets, net sales, profit or loss (amount corresponding to the Company's ownership interest), and retained earnings (amount corresponding to the Company's ownership interest) do not have a material impact on the consolidated financial statements. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Application of the equity method

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Number of non-consolidated subsidiaries or affiliates accounted for using the equity method, and names of major companies<br>| Not applicable. |
| &nbsp;&nbsp;&nbsp;&nbsp; • Major non-consolidated subsidiaries and affiliates not accounted for using the equity method<br>| OSC Life Products Co., Ltd.<br> FREE POWER Co., Ltd.<br> OSC Pet Products Co., Ltd. |
| &nbsp;&nbsp;&nbsp;&nbsp; • Reasons for not applying the equity method to major non-consolidated subsidiaries and affiliates not accounted for using the equity method<br>| The companies are excluded from the scope of application of the equity method because such exclusion has only an immaterial effect on the consolidated financial statements in terms of each company's profit or loss (amount corresponding to the Company's ownership interest) and retained earnings (amount corresponding to the Company's ownership interest), and they have no significance as a whole. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Fiscal year-ends of consolidated subsidiaries

The fiscal year-end of all consolidated subsidiaries coincides with the end of the consolidated fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Accounting policies

1) Basis and method of valuation of significant assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Marketable securities

Available-for-sale securities

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities other than stocks that do not have quoted market prices<br>|  |
|  | Fair value method |
|  | (The amounts of unrealized gains or losses from such securities, after accounting for tax effects, are presented in net assets. Costs of securities sold are calculated using the moving average method.) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stocks that do not have quoted market prices<br>|  |
|  | Cost method by determining the cost using the moving average method |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Derivatives | Fair value method |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Inventories

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fresh foods and deli items, etc.<br>| Cost method based on the last purchase cost method<br> (The amounts on the consolidated balance sheets use a method of writing down the book value due to a decline in profitability) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In-store inventory<br>| Cost method based on the retail method<br> (The amounts on the consolidated balance sheets use a method of writing down the book value due to a decline in profitability) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Items in stock at the distribution center<br>| First-in, first-out (FIFO) cost method<br> (The amounts on the consolidated balance sheets use a method of writing down the book value due to a decline in profitability) |

---

2) Depreciation method for significant depreciable assets

---

| | |
|:---|:---|
| a. Property, plant and equipment (excluding leased assets) | Declining-balance method. However, the Company uses the straight-line method for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016. |
| b. Intangible assets (excluding leased assets) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software<br>| Straight-line method based on the estimated useful life within the Company (five years or less). |
| c. Lease assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leased assets related to finance leases involving a transfer of ownership<br>| The same depreciation method is used as that applied to proprietary fixed assets. |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leased assets related to finance leases that do not involve transfer of ownership<br>| Straight-line method over the lease term with no residual value. |
| d. Long-term prepaid expenses | Straight-line method. |

---

------

3) Basis for significant provision and allowance

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allowance for bonuses<br>| To provide for the payment of bonuses to employees, the Company accrues an estimated amount based on the estimated amount of payment. |
|  4) Accounting treatment for retirement benefits | Certain consolidated subsidiaries apply a simplified method for calculating retirement benefit liabilities and retirement benefit expenses, under which the amount payable at the end of the fiscal year is treated as the retirement benefit obligation.<br> In the event that the amount of pension assets exceeds the amount of retirement benefit obligations, the excess amount is recognized as a retirement benefit asset and presented under investments and other assets. |
|  5) Significant revenue and expense recognition standards |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue recognition on sales of goods<br>| Revenue arising from contracts with the Group's customers is derived from the sale of merchandise in our retail and retail-related businesses, and revenue from the sale of these goods are recognized at the time of delivery to the customer.<br> Furthermore, with regard to consignment sales, we determine that our Group acts as an agent and accordingly, we recognize revenue based on the net amount, calculated by deducting the amount paid to the supplier from the amount received from the customer. |
|  6) Significant matters for the preparation of consolidated financial statements |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Application of the group aggregation system<br>| The group aggregation system is applied. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Change in accounting policy

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Change of display method

Not applicable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Significant accounting estimates

(Impairment of fixed assets related to retail stores)

1) Amount presented on the consolidated statements of income for the fiscal year under review 

---

| | |
|:---|:---|
| Property, plant and equipment and intangible assets related to retail stores | 19,830,828 thousand yen |
|  Impairment losses | 938,858 thousand yen |
|  (Of which, 587,294 thousand yen is shown as loss on store closings.) | (Of which, 587,294 thousand yen is shown as loss on store closings.) |

---

2) Information on the details of significant accounting estimates of identified item

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Calculation method

The Group classifies fixed assets related to retail stores by grouping each retail store as the smallest unit capable of generating independent cash flows. For assets or groups of assets showing signs of impairment, we compare the total undiscounted future cash flows with their carrying amounts, and if we determine that an impairment loss should be recognized, the carrying amount is reduced to the recoverable amount and an impairment loss is recorded. The recoverable amount is based on the higher of the net sale value or value in use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Major assumptions used in significant accounting estimates

The estimates of future cash flows used to determine whether an impairment loss should be recognized and to measure the value in use are derived from business plans for each retail store. The key assumptions used in estimating future cash flows are sales, gross profit margin, and labor costs for each retail store, which form the basis of the business plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Impacts on the consolidated financial statements for the following fiscal year

Key assumptions in estimating future cash flows are subject to uncertainty. Therefore, depending on changes in market conditions or the success or failure of the business strategies, new impairment losses may arise in the consolidated financial statements for the following fiscal year.

------

**2.** **Notes to the Consolidated Balance Sheets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Collateralized assets and secured liabilities

1) Assets pledged as collateral

---

| | |
|:---|:---|
|  Cash and deposits | 843,938 thousand yen |
|  Buildings and structures | 4,659,404 thousand yen |
|  Land | 10,905,365 thousand yen |
|  Investment securities | 625,771 thousand yen |
|  Long-term loans receivable | 338,616 thousand yen |
|  Lease and guarantee deposits | 1,309,257 thousand yen |
|  Investments and other assets (Other) | 58,682 thousand yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 18,741,037 thousand yen |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) In addition to the above assets pledged as collateral, 2,705,188 thousand yen in shares of subsidiaries and affiliates offset in the consolidated financial statements are pledged as collateral.

2) Secured debt

---

| | |
|:---|:---|
|  Accounts payable | 325,856 thousand yen |
|  Short-term borrowings | 7,499,818 thousand yen |
|  Long-term borrowings (including current portion of long-term borrowings) | 14,665,305 thousand yen |
|  Total | 22,490,979 thousand yen |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accumulated depreciation of property, plant and equipment 41,699,988 thousand yen

------

**3.** **Notes to the Consolidated Statements of Comprehensive Income** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Matters regarding total number of issued shares

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Class of shares | Beginning of the<br>fiscal year | Beginning of the<br>fiscal year | Increase during the<br>fiscal year | Increase during the<br>fiscal year | Decrease during the<br>fiscal year | Decrease during the<br>fiscal year | Number of shares at<br>end of the fiscal<br>year | Number of shares at<br>end of the fiscal<br>year |
|  Common shares |  | 23,354,223 shares |  | – shares |  | – shares |  | 23,354,223 shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Matters regarding dividends of surplus

1) Dividends paid, etc.

Matters regarding dividends by a resolution at the Ordinary General Meeting of Shareholders held on May 29, 2025

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; • Total amount of dividends<br>| 459,411 thousand yen |
| &nbsp;&nbsp;&nbsp;&nbsp; • Dividends per share:<br>| 20 yen |
| &nbsp;&nbsp;&nbsp;&nbsp; • Record date:<br>| February 28, 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp; • Effective date:<br>| May 30, 2025 |

---

2) Dividends with a record date during the fiscal year under review, but with an effective date subsequent to the fiscal year under review

Not applicable.

------

**4.** **Notes on Financial Instruments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Status of financial instruments

The Group limits its investment to short-term deposits and similar instruments and for financing, the Group raises funds mainly through bank loans. The funds are used for working capital and capital expenditures. Derivative transactions are utilized in accordance with internal management rules to hedge against interest rate risk, and the Company's policy is not to engage in speculative transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Fair value, etc. of financial instruments

The carrying amounts on the consolidated balance sheets, fair values, and respective differences as of February 28, 2026 are presented below. Stocks and other securities that do not have quoted market prices (carrying amount on the consolidated balance sheet of 277,149 thousand yen) are not included in "Investment Securities."

---

| | | | |
|:---|:---|:---|:---|
|  | (Thousands of yen) | (Thousands of yen) | (Thousands of yen) |
|  | Carrying amounts<br>on the consolidated<br>balance sheets | Fair value | Difference |
|  1) Investment securities | 622176 | 622176 |  |
|  2) Long-term loans receivable | 1191647 | 1131404 | (60242) |
|  3) Lease and guarantee deposits | 13400551 | 9455779 | (3944771) |
|  4) Bonds payable (\*1) | (20000) | (19935) | (64) |
|  5) Long-term borrowings (\*2, \*3) | (16753995) | (16735074) | (18920) |
|  6) Lease liabilities (\*4) | (1742445) | (1711582) | (30862) |
|  7) Derivative transactions (\*2) |  |  |  |

---

(\*1) Includes bonds payable due within one year.

---

| | |
|:---|:---|
| (\*2) | The amount of derivative transactions is included in the amount of long-term borrowings.  |

---

(\*3) Includes current portion of long-term borrowings.

(\*4) Includes lease liabilities due within one year.

---

| | |
|:---|:---|
| (\*5) | "Cash and deposits," "Accounts receivable—trade," "Accounts payable," and "Short-term borrowings" are omitted because their fair values approximate their carrying amounts, given that they are settled within a short period of time.  |

---

(\*6) Items recorded in liabilities are shown in parentheses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Breakdown of financial instruments by level of fair value

The fair value of financial instruments is classified into the following three levels according to the observability and materiality of inputs used to measure fair value.

---

| | |
|:---|:---|
| Level 1 fair value: | Fair values measured using observable inputs that are market prices formed in active markets for the assets or liabilities for which fair value is to be measured |
| Level 2 fair value: | Fair values measured using observable inputs other than those used to calculate Level 1 fair value |
| Level 3 fair value: | Fair values measured using unobservable inputs |

---

------

When multiple inputs that have a significant impact on the measurement of fair value are used, the fair value is categorized to the level with the lowest priority in the measurement of fair value among the levels to which each input belongs.

1) Financial assets and financial liabilities recorded at fair value on the consolidated balance sheets

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | (Thousands of yen) |
| **Category** | **Fair value** | **Fair value** | **Fair value** | **Fair value** |
| **Category** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Investment securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available-for-sale securities Shares | 622176 |  |  | 622176 |

---

2) Financial assets and liabilities not recorded at fair value on the consolidated balance sheets

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | (Thousands of yen) |
| **Category** | **Fair value** | **Fair value** | **Fair value** | **Fair value** |
| **Category** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Long-term loans receivable |  | 1131404 |  | 1131404 |
|  Lease and guarantee deposits |  |  | 9455779 | 9455779 |
|  Bonds payable |  | 19935 |  | 19935 |
|  Long-term borrowings |  | 16735074 |  | 16735074 |
|  Lease liabilities |  | 1711582 |  | 1711582 |
|  Derivative transactions |  |  |  |  |

---

(Notes) Description of the valuation techniques and inputs used in the fair value measurements

1) Investment securities

As listed shares are valued using exchange prices and are traded in active markets, their fair value is classified as Level 1.

2) Long-term loans receivable

Among long-term loans receivable, construction cooperation funds are valued at present value using the discount method in accordance with the "Practical Guidelines on Accounting for Financial Instruments." The carrying amount is calculated based on the yield on Japanese government bonds at that time, while the fair value is calculated based on the current yield on Japanese government bonds corresponding to the remaining term. Fai value is classified as Level 2.

3) Lease and guarantee deposits

The fair value of security deposits and guarantee deposits is calculated based on their present value, discounted using an interest rate derived from appropriate benchmarks, and is classified as Level 3.

------

4) Bonds payable

The fair value of bonds payable is calculated by discounting the total amount of principal and interest using the interest rate assumed for similar financing, and is classified as Level 2.

5) Long-term borrowings

The fair value of long-term borrowings is calculated by discounting the total amount of principal and interest using the interest rate that would be applicable if a similar new borrowing were made, and is classified as Level 2. Among long-term borrowings with variable interest rates, those subject to interest rate swaps and caps are treated under a special accounting method. The amount is calculated by discounting the total amount of principal and interest, treated as a single unit with the relevant interest rate swaps and caps, at the interest rate that would be assumed if a similar new borrowing were made.

6) Lease liabilities

The fair value of lease liabilities is calculated by discounting the total amount of principal and interest using the interest rate that would be applicable if a similar new lease transaction were made, and is classified as Level 2.

7) Derivative transactions

With respect to long-term borrowings, those subject to special accounting treatment for interest rate swaps and interest rate caps are accounted for as a single unit with the long-term borrowings designated as hedged items. Therefore, their fair value is included in the fair value of the relevant long-term borrowings.

**5.** **Notes on Business Combination** 

Not applicable.

**6.** **Fair values of rental and other investment properties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Status of rental and other investment properties

The Company own commercial facilities (including land) for lease in Tokyo and other areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Fair values of rental and other investment properties

---

| | | |
|:---|:---|:---|
|  | (Thousands of yen) | (Thousands of yen) |
| Carrying amounts on the consolidated balance sheets | Fair value | Fair value |
|  3,235,078 |  | 3998935 |

---

(Notes) 1. The carrying amounts on the consolidated balance sheets are the acquisition cost minus accumulated depreciation.

2. The fair value at the end of the fiscal year under review is primarily an amount calculated by the Company based on Japanese Real Estate Appraisal Standards, including adjustments made using certain financial indicators.

------

**7.** **Note on Revenue Recognition** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Disaggregation of revenue from contracts with customers

Fiscal year under review (March 1, 2025 to February 28, 2026)

---

| | |
|:---|:---|
|  | (Thousands of yen) |
|  | Net sales |
|  Revenue from contracts with customers |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Food business (net sales) | 62179288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-food business (net sales) | 28630194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (operating revenue) (\*1) | 5561123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 96370605 |
|  Other revenue (operating revenue) (\*2) | 1786916 |
|  Operating revenue to external customers | 98157521 |

---

\*1 "Other (operating revenue)" primarily includes revenue from the veterinary clinics business, logistics business, and information processing services business.

\*2 "Revenue from other sources (operating revenue)" includes revenue based on the ASBJ Statement No. 13 "Accounting Standard for Lease Transactions."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Basic information in understanding revenue from contracts with customers

Basic information in understanding revenue from contracts with customers is as presented in "1. Notes on Significant Matters that Serve as the Basis for Preparation of Consolidated Financial Statements, Etc., (4) Accounting policies, 5) Significant revenue and expense recognition standards" in the Notes to the Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Information to understand the amount of revenue for the current and subsequent terms

Information regarding residual performance obligations is omitted because the Group has applied the practical expedient as there are no significant transactions with an original expected contract duration of more than one year. There are no material amounts of compensation from contracts with customers that are not included in the transaction price.

------

**8.** **Notes on Per Share Information** 

(1) Net assets per share ¥ 916.93 <br> (2) Net profit (loss) per share -¥ 165.37

**9.** **Notes on Significant Subsequent Events** 

(Conclusion of a Stock Exchange Agreement between the Company and Pan Pacific International Holdings Co., Ltd.)

the "Companies") resolved at their respective Board of Directors meetings held on April 6, 2026 to conduct a business integration through a share exchange with PPIH as the wholly owning parent company and the Company as the wholly owned subsidiary resulting from a share exchange, and on the same day, the Companies concluded a share exchange agreement. The Company and Pan Pacific International Holdings Co., Ltd. (hereinafter referred to as "PPIH," and together,

**10.** **Other Notes** 

Not applicable.

Amounts shown are rounded to the nearest thousand yen.

------

**Non-Consolidated Balance Sheets** 

(As of February 28, 2026)

---

| | | | |
|:---|:---|:---|:---|
| | | (Thousands of yen) | (Thousands of yen) |
| **Assets** | **Assets** | **Liabilities** | **Liabilities** |
| Account items | Amount | Account items | Amount |
|  **Current assets** | 7931159 | **Current liabilities** | **20973530** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and deposits | 2374194 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 11193136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 793057 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term borrowings | 6666178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 2451336 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 514433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term loans receivable from subsidiaries and associates | 1908914 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 172853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes refund receivable | 11828 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable - other | 1739066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 391829 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 28001 |
|  **Non-current assets** | **47601554** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 102894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Property, plant and equipment** | **26966739** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued consumption tax, etc. | 198417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 10531567 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance received | 121353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Structure | 475475 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits received | 154408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Machinery and equipment | 876733 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for bonuses | 6432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vehicles and transportation equipment | 12378 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 76354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tools, furniture and fixtures | 1024225 | **Non-current liabilities** | **13103705** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease assets | 12098 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 10034737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 14034259 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | 1210493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Intangible assets** | 1201378 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset retirement obligations | 995930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Patent rights | 62523 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term guarantee deposits received | 157901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasehold | 859742 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term security deposits | 700105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Software | 235168 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 4537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Telephone subscription rights | 43943 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | **34077236** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Investments and other assets** | **19433436** | **Net assets** | **Net assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities | 779117 | **Shareholders' equity** | **21064664** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of subsidiaries and associates | 1152923 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Share capital** | **9946386** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans receivable | 1190337 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Capital surplus** | **9829566** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans receivable from subsidiaries and associates | 9664460 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal capital surplus | 9829566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term prepaid expenses | 381454 | **Retained earnings** | **1581846** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease and guarantee deposits | 12148505 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Legal retained earnings** | **543622** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets | 39612 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Other retained earnings** | **1038223** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 86055 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Retained earnings brought forward** | **1038223** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts | (6009030) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Treasury shares** | **(293134)** |
|  |  | **Valuation and translation adjustments** | **390813** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Valuation difference on available-for-sale securities** | **390813** |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total net assets** | **21455477** |
|  **Total assets** | **55532714** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and net assets** | **55532714** |

---

------

**<u>Non-Consolidated Statements of Income</u>**

(From March 1, 2025 to February 28, 2026)

---

| | | |
|:---|:---|:---|
|  | (Thousands of yen) | (Thousands of yen) |
| Account items | Amount | Amount |
|  **Operating revenue** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income from real estate | 11778815 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1713792 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends received from subsidiaries and affiliates | 340186 | **13832793** |
|  **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental income from real estate | 11484484 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General administrative expenses | 1147976 | **12632460** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** |  | **1200333** |
|  **Non-operating income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividend income | 244870 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subsidy income | 22430 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 9398 | **276698** |
|  **Non-operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 468901 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 3224 | **472126** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Ordinary profit** |  | **1004905** |
|  **Extraordinary income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of non-current assets | 583 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of investment securities | 1253 | **1836** |
|  **Extraordinary losses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of non-current assets | 573 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on store closings | 587294 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Company funeral related expenses | 19596 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of memberships rights | 10000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on valuation of shares of subsidiaries and affiliates | 100000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for doubtful accounts | 3902930 | 4620395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Loss before income taxes** |  | **(3613652)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes - current | 96088 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes - deferred | (219598) | **(123510)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Loss** |  | **(3490142)** |

---

------

**<u>Non-Consolidated Statements of Changes in Net Assets</u>**

(From March 1, 2025 to February 28, 2026)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | | (Thousands of yen) |
| | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity | Shareholders' equity |
| | Share<br>capital | Capital surplus | Capital surplus | Retained earnings | Retained earnings | Retained earnings | Treasury<br>shares | Total shareholders'<br>equity |
| | Share<br>capital | Legal<br>capital<br>surplus | Total<br>capital<br>surplus | Legal<br>retained<br>earnings | Other<br>retained<br>earnings | Total<br>retained<br>earnings | Treasury<br>shares | Total shareholders'<br>equity |
| | Share<br>capital | Legal<br>capital<br>surplus | Total<br>capital<br>surplus | Legal<br>retained<br>earnings | Retained<br>earnings<br>brought<br>forward | Total<br>retained<br>earnings | Treasury<br>shares | Total shareholders'<br>equity |
|  Balance at beginning of period | 9946386 | 9829566 | 9829566 | 543622 | 4987776 | 5531399 | (293116) | 25014235 |
|  Changes of items during period |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  |  |  | (459411) | (459411) |  | (459411) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss |  |  |  |  | (3490142) | (3490142) |  | (3490142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury shares |  |  |  |  |  |  | (17) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than shareholders' equity |  |  |  |  |  |  |  |  |
|  Total changes of items during period |  |  |  |  | (3949553) | (3949553) | (17) | (3949570) |
|  Balance at end of period | 9946386 | 9829566 | 9829566 | 543622 | 1038223 | 1581846 | (293134) | 21064664 |

---

---

| | | | |
|:---|:---|:---|:---|
| | Valuation and translation<br>adjustments | Valuation and translation<br>adjustments | Total net<br>assets |
| | Valuation<br>difference on<br>available-for-sale<br>securities | Total<br>valuation and<br>translation<br>adjustments | Total net<br>assets |
|  Balance at beginning of period | 227326 | 227326 | 25241562 |
|  Changes of items during period |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends of surplus |  |  | (459411) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss |  |  | (3490142) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury shares |  |  | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than shareholders' equity | 163486 | 163486 | 163486 |
|  Total changes of items during period | 163486 | 163486 | (3786084) |
|  Balance at end of period | 390813 | 390813 | 21455477 |

---

------

**Notes to the Non-Consolidated Financial Statements** 

**1.** **Matters Pertaining to Significant Accounting Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Basis and method of valuation of assets

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) Shares of subsidiaries and affiliates | Cost method by determining the cost using the moving average method |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Available-for-sale securities |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities other than stocks that do not have quoted market prices<br>| Fair value method (The amounts of unrealized gains or losses from such securities, after accounting for tax effects, are presented in net assets. Costs of securities sold are calculated using the moving average method.) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stocks that do not have quoted market prices<br>| Cost method by determining the cost using the moving average method |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3) Derivatives | Fair value method |
| (2) Depreciation method for non-current assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) Property, plant and equipment (excluding lease assets) | Declining-balance method. However, the Company uses the straight-line method for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Intangible assets (excluding lease assets) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software<br>| Straight-line method based on the estimated useful life within the Company (five years or less). |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Patent rights<br>| Straight-line method (over eight years). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3) Lease assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leased assets related to finance leases involving a transfer of ownership<br>| The same depreciation method is used as that applied to proprietary fixed assets. |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leased assets related to finance leases that do not involve transfer of ownership<br>| Straight-line method over the lease term with no residual value. |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4) Long-term prepaid expenses | Straight-line method. |
| (3) Basis for provision and allowance |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) Allowance for doubtful accounts | To prepare for bad debt expenses, an estimated uncollectable amount is provided at the amount estimated by either using the actual historical rate of credit loss for general receivables, or based on individual consideration of collectability for specific receivables such as highly doubtful receivables. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Allowance for bonuses | To provide for the payment of bonuses to employees, the Company accrues an estimated amount based on the estimated amount of payment. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Revenue and expense recognition standards

The Company's revenue consists primarily of rental income from real estate owned by our subsidiaries, income from management outsourcing services, and dividend income. With regard to rental income from real estate, we apply the "Accounting Standard for Lease Transactions" (ASBJ Statement No. 13). With respect to revenue from management outsourcing services, the Company is obligated to provide management services to subsidiaries in accordance with the terms of the contract. Revenue is recognized at the point when the service is performed, as the Company's performance obligation is satisfied at that point. Dividend income is recognized on the effective date of the dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Other Matters that Serve as the Basis for Preparation of Non-Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Application of the group aggregation system The group aggregation system is applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Change in accounting policy

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Change of display method

Not applicable.

------

**2.** **Notes to the Non-Consolidated Balance Sheets** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Collateralized assets and secured liabilities

1) Assets pledged as collateral

---

| | |
|:---|:---|
|  Cash and deposits | 843,938 thousand yen |
|  Buildings | 4,502,002 thousand yen |
|  Land | 10,430,686 thousand yen |
|  Investment securities | 625,771 thousand yen |
|  Long-term loans receivable (construction cooperation funds) | 338,616 thousand yen |
|  Long-term prepaid expenses (construction cooperation funds) | 58,682 thousand yen |
|  Lease and guarantee deposits | 1,309,257 thousand yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 18,108,956 thousand yen |

---

2) Secured debt

---

| | |
|:---|:---|
|  Short-term borrowings | 6,769,818 thousand yen |
|  Long-term borrowings (including current portion of long-term borrowings) | 14,665,305 thousand yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 21,435,123 thousand yen |

---

Of the collateralized assets listed above, investment securities totaling 34,405 thousand yen are being used as collateral for accounts payable to affiliated companies amounting to 325,856 thousand yen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Accumulated depreciation of property, plant and equipment

38,980,668 thousand yen

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Monetary claims and obligations with subsidiaries and associates are as follows.

1) Short-term monetary claims 1,388,700 thousand yen <br> 2) Short-term monetary obligations 1,946,782 thousand yen

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Contingent obligations

The Company provides guarantee of obligation purchases made by the following affiliate from their business partners.

---

| | | |
|:---|:---|:---|
| Guarantee recipient | Amount | Description |
| Olympic Co., Ltd. | 306,327 thousand yen | Accounts payable |

---

------

**3.** **Notes to the Non-Consolidated Statements of Income** 

Transactions with subsidiaries and associates

---

| | |
|:---|:---|
|  1) Rental income from real estate | 10,242,812 thousand yen |
|  2) Management fees | 1,627,874 thousand yen |
|  3) Other operating transactions | 1,514,355 thousand yen |
|  4) Transactions from non-operating transactions | 217,218 thousand yen |

---

**4.** **Notes to the Non-Consolidated Statements of Comprehensive Income** 

Number of treasury shares

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Class of shares | Beginning of the<br>fiscal year | Beginning of the<br>fiscal year | Increase during the<br>fiscal year | Increase during the<br>fiscal year | Decrease during the<br>fiscal year | Decrease during the<br>fiscal year | Number of shares<br>at end of the fiscal<br>year | Number of shares<br>at end of the fiscal<br>year |
| Common shares |  | 383,672 shares |  | 40 shares |  | — shares |  | 383,712 shares |

---

**5.** **Notes on Tax Effect Accounting** 

Deferred tax assets and deferred tax liabilities are mainly due to impairment losses and asset retirement obligations.

**6.** **Notes on Business Combination** 

Not applicable.

------

**7.** **Notes on Transactions With Related Parties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Officers and major shareholders, etc.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | Name of<br> the<br> company,<br> etc. | Capital or<br> capital<br> contribution<br> (Thousands<br> of yen) | Business or<br> occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Relationship details | Relationship details | Detail of<br>transactions | Transaction<br>amount<br> (Thousands<br>of yen) | Account<br>items | Balance at<br> end of period<br> (Thousands<br>of yen) |
| Category | Name of<br> the<br> company,<br> etc. | Capital or<br> capital<br> contribution<br> (Thousands<br> of yen) | Business or<br> occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Directors<br>holding<br>concurrent<br>positions,<br>etc. | Business<br>relationship | Detail of<br>transactions | Transaction<br>amount<br> (Thousands<br>of yen) | Account<br>items | Balance at<br> end of period<br> (Thousands<br>of yen) |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | Healthcare Japan Co., Ltd. | 299000 | Management, operation, etc. of private nursing homes | (Owned)<br> Direct 3.9 |  | Lease of store | Lease of store<br> (Note) 1 | 77341 | Prepaid expenses<br>Lease and guarantee deposits | 7089<br>292960 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | Yamakin Co., Ltd. | 10000 | Warehousing business |  | Officer<br> 1 person | Lease of headquarters, stores, and parking lots | Lease of headquarters, stores, and parking lots (Note) 1 | 248459 | Prepaid expenses<br>Lease and guarantee deposits | 22756<br>548429 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | O.R.D. Co., Ltd. | 35000 | Real estate<br> management business |  | Officer<br> 2 persons | Lease of stores and parking lots | Lease of stores and parking lots (Note) 1 | 373781 | Prepaid expenses | 28593 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | O.R.D. Co., Ltd. | 35000 | Real estate<br> management business |  | Officer<br> 2 persons | Lease of stores and parking lots | Lease of stores and parking lots (Note) 1 | 34125 | Lease and guarantee deposits | 1517265 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | O.R.D. Co., Ltd. | 35000 | Real estate<br> management business |  | Officer<br> 2 persons | Lease of stores and parking lots | Collection of security deposits | 55986 | Long-term loans receivable | 722799 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | O.R.D. Co., Ltd. | 35000 | Real estate<br> management business |  | Officer<br> 2 persons | Lease of stores and parking lots | <br> Refund of security deposits | <br> 34023 | <br> Long-term prepaid expenses | <br> 273342 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | Tairi Co., Ltd. | 10000 | Real estate<br> management business |  |  | Lease of employee dormitory | Lease of employee dormitory<br> (Note) 1 | 23052 | Prepaid expenses<br> Lease and guarantee deposits | 1921<br>15000 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | Name of<br> the<br> company,<br> etc. | Capital or<br> capital<br> contribution<br> (Thousands<br> of yen) | Business or<br> occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Relationship details | Relationship details | Detail of<br>transactions | Transaction<br>amount<br> (Thousands<br>of yen) | Account<br>items | Balance at<br> end of period<br> (Thousands<br>of yen) |
| Category | Name of<br> the<br> company,<br> etc. | Capital or<br> capital<br> contribution<br> (Thousands<br> of yen) | Business or<br> occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Directors<br>holding<br>concurrent<br>positions,<br>etc. | Business<br>relationship | Detail of<br>transactions | Transaction<br>amount<br> (Thousands<br>of yen) | Account<br>items | Balance at<br> end of period<br> (Thousands<br>of yen) |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | Toto Uehara Co., Ltd. | 3000 | Real estate<br> management business |  |  | Lease of employee dormitory | Lease of employee dormitory<br> (Note) 1 | 17439 | Prepaid expenses<br>Lease and guarantee deposits | 1453<br>55880 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | Esprit Co., Ltd. | 10000 | Real estate<br> management business | (Owned)<br> Indirect 27.8 | Officer<br> 2 persons | Lease of warehouses and office space | Lease of warehouses and office space<br> (Note) 1 | 12600 | Prepaid expenses<br>Lease and guarantee deposits | 1155<br>2400 |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | OSC COMMUNICATE Inc. | 10000 | Planning, production, and distribution of video content, etc. |  |  | Creation of videos, etc. | Outsourcing costs related to video creation (Note) 3 | 42000 |  |  |
| Companies, etc. at which the majority of voting rights are held by a director and/or his/her close relatives | Wing Road Co., Ltd. | 50000 | Manufacture and retail of men's clothing | (Owned)<br> Indirect 4.1 |  | Lease of stores and parking lots | Lease of store<br> (Note 1) | 21840 |  |  |

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Terms and conditions of transactions and their decisions, etc.

(Notes) 1. Rent and security deposits are determined based on actual transaction prices in the neighborhood.

2. Sales of fixed assets are determined based on the appraisal value provided by a certified real estate appraiser.

3. Pricing and other terms of transactions are determined on a case-by-case basis through negotiation and taking into account prevailing market prices as well as other factors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Subsidiaries and affiliates, etc.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Category | Name of<br> the<br> company,<br> etc. | Capital or<br> capital<br> contribution<br> (Thousands<br> of yen) | Business or<br> occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Relationship details | Relationship details | Detail of<br>transactions | Transaction<br>amount<br> (Thousands<br>of yen) | Account<br>items | Balance at<br> end of period<br> (Thousands<br>of yen) |
| Category | Name of<br> the<br> company,<br> etc. | Capital or<br> capital<br> contribution<br> (Thousands<br> of yen) | Business or<br> occupation | Ratio of<br>owning<br>(owned)<br>voting<br>rights, etc. | Directors<br>holding<br>concurrent<br>positions,<br>etc. | Business<br>relationship | Detail of<br>transactions | Transaction<br>amount<br> (Thousands<br>of yen) | Account<br>items | Balance at<br> end of period<br> (Thousands<br>of yen) |
| Subsidiary | Olympic Co., Ltd. | 100000 | Retail | Direct ownership<br> 100.0 | Officer<br> 8 persons | Lease of stores, parking lots, and retail facilities; and financing transactions | Rental income from real estate<br> (Note) 1 | 8626334 | Accounts receivable | 772480 |
| Subsidiary | Olympic Co., Ltd. | 100000 | Retail | Direct ownership<br> 100.0 | Officer<br> 8 persons | Lease of stores, parking lots, and retail facilities; and financing transactions | Management fees<br> (Note) 2 | 1079189 | Short-term loans receivable from subsidiaries and associates<br>| 6031866 |
| Subsidiary | Olympic Co., Ltd. | 100000 | Retail | Direct ownership<br> 100.0 | Officer<br> 8 persons | Lease of stores, parking lots, and retail facilities; and financing transactions | Interest income | 113809 | Allowance for doubtful accounts<br>| (3530030) |
| Subsidiary | Olympic Co., Ltd. | 100000 | Retail | Direct ownership<br> 100.0 | Officer<br> 8 persons | Lease of stores, parking lots, and retail facilities; and financing transactions | Allowance for doubtful accounts<br> (Note) 3 | 3530030 | Other<br> Current assets | 1001 |
| Subsidiary | Olympic Co., Ltd. | 100000 | Retail | Direct ownership<br> 100.0 | Officer<br> 8 persons | Lease of stores, parking lots, and retail facilities; and financing transactions | Lending of funds<br> (Note) 3 | 173966 | Other<br> Current assets | 1001 |
| Subsidiary | Ouchi DEPO Corporation | 100000 | Sales of DIY and gardening products | Direct ownership<br> 100.0 | Officer<br> 1 person | Lease of stores, parking lots, and retail facilities and financing | Interest income (Note) 3 | 20411 | Short-term loans receivable from subsidiaries and associates<br>| 721706 |
| Subsidiary | Ouchi DEPO Corporation | 100000 | Sales of DIY and gardening products | Direct ownership<br> 100.0 | Officer<br> 1 person | Lease of stores, parking lots, and retail facilities and financing | Collection of loans receivable (Note) 3 | 221000 | Accounts payable | 13 |
| Subsidiary | OSC Foods Co., Ltd. | 100000 | Manufacture and wholesale of prepared foods, etc. | Direct ownership<br> 100.0 | Officer<br> 2 persons | Leasing of processed food factory equipment and lending of funds | Interest income (Note) 3<br> Allowance for doubtful accounts | 7767<br>120000 | Short-term loans receivable from subsidiaries and associates<br>Allowance for doubtful accounts | 704000<br>(661000) |
| Subsidiary | OSC Foods Co., Ltd. | 100000 | Manufacture and wholesale of prepared foods, etc. | Direct ownership<br> 100.0 | Officer<br> 2 persons | Leasing of processed food factory equipment and lending of funds | Lending of funds<br> (Note) 3 | 95435 | Short-term loans receivable from subsidiaries and associates<br>Allowance for doubtful accounts | 704000<br>(661000) |
| Subsidiary | OSC Home Facility Co., Ltd. | 20000 | Building and facility construction, and sales and installation of housing facilities | Direct ownership<br> 100.0 | Officer<br> 1 person | Maintenance and repair of facilities, leasing of store facilities, and lending of money | Interest income<br> (Note 3)<br>Allowance for doubtful accounts<br> Lending of funds<br> (Note) 3 | 11127<br>18000<br>413909 | Short-term loans receivable from subsidiaries and associates<br>Allowance for doubtful accounts | 604409<br>(18000) |
| Subsidiary | Miuraya Co., Ltd. | 100000 | Sales of food products | Indirect ownership<br> 100.0 | Officer<br> 3 persons | Debt guarantee | Acceptance of debt guarantees (Note 4) | 2310000 |  |  |

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Terms and conditions of transactions and their decisions, etc.

(Notes) 1. Rent is determined based on actual transaction prices in the neighborhood.

2. Management fees are determined through mutual agreement between the two companies.

3. With regard to the lending of funds, interest rates are determined reasonably based on market rates.

4. The debt guarantee is provided for bank loans.

------

**8.** **Note on Revenue Recognition** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Basic information in understanding revenue from contracts with customers

Basic information in understanding revenue is as presented in "1. Matters Pertaining to Significant Accounting Policies, (4) Revenue and expense recognition standards" in the Notes to the Non-Consolidated Financial Statements.

**9.** **Notes on Per Share Information** 

(1) Net assets per share ¥934.04 <br> (2) Basic earnings per share -¥151.94

**10.** **Notes on Significant Subsequent Events** 

(Conclusion of a Stock Exchange Agreement between the Company and Pan Pacific International Holdings Co., Ltd.)

The Company and Pan Pacific International Holdings Co., Ltd. (hereinafter referred to as "PPIH," and together, the "Companies") resolved at their respective Board of Directors meetings held on April 6, 2026 to conduct a business integration through a share exchange with PPIH as the wholly owning parent company and the Company as the wholly owned subsidiary resulting from a share exchange, and on the same day, the Companies concluded a share exchange agreement.

**11.** **Notes on Companies Subject to Consolidated Dividend Rules** 

Not applicable.

**12.** **Other Notes** 

Amounts shown are rounded to the nearest thousand yen.

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This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects. All dates and times are stated in Japan Standard Time (JST) in this document.

**Accounting Audit Report on Consolidated Financial Statements** 

**Independent Auditors' Report (Translation)** 

April 24, 2026

To: The Board of Directors of Olympic Group Corporation

Ernst & Young ShinNihon LLC

Tokyo Office

Designated Limited Liability Member

Certified Public Accountant

Hirohisa Fukuda

Designated Limited Liability Member

Certified Public Accountant

Naohiko Sawabe

*Audit Opinion* 

Pursuant to Article 444, paragraph (4) of the Companies Act, we have audited the consolidated financial statements, comprising the consolidated balance sheets, the consolidated statements of income, the consolidated statements of changes in net assets and the notes to the consolidated financial statements of Olympic Group Corporation (the "Company") applicable to the fiscal year from March 1, 2025 through February 28, 2026.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position and results of operations of the Group, which consisted of the Company and its consolidated subsidiaries, as of the date and for the period for which the consolidated financial statements were prepared in accordance with the corporate accounting standards generally accepted in Japan.

*Basis for Audit Opinion* 

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its consolidated subsidiaries in accordance with the provisions related to professional ethics in Japan, including those applicable to audits of financial statements of socially sensitive entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

------

*Emphasis of Matter* 

As stated in the notes on significant subsequent events in the consolidated financial statements, the Company resolved at its Board of Directors meeting on April 6, 2026, to integrate its business through a stock exchange, with Pan Pacific International Holdings Corporation as the wholly owning parent company and the Company as the wholly owned subsidiary, and entered into a stock exchange agreement on the same day.

Such matters do not affect our opinion.

*Other Information* 

Other information consists of the business report and supplementary schedules. Management is responsible for the preparation and disclosure of the other information. The Auditors and the Audit and Supervisory Board are responsible for supervising the execution of duties by Directors regarding the establishment and implementation of a reporting process for other information.

The scope of our audit opinion on the consolidated financial statements does not cover the other information, and we do not express an opinion on the other information.

Our responsibility in the audit of the consolidated financial statements is to read the other information and, in the course of reading, to consider whether there are material inconsistencies between the other information and the consolidated financial statements or our knowledge obtained in the course of the audit, and to pay attention to whether there are any indications of material misstatements in the other information other than such material inconsistencies.

If, based on the work we have performed, we conclude that a material misstatement exists in other information, we are required to report that fact.

We have nothing to report with respect to the other information.

*Responsibilities of Management, the Auditors and the Audit and Supervisory Board for the Consolidated Financial Statements* 

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan. This includes the maintenance and operation of such internal control as management determines is necessary to enable the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare the consolidated financial statements with the assumption of the entity's ability to continue as a going concern and disclosing matters related to going concern as applicable in accordance with accounting principles generally accepted in Japan.

The Auditors and the Audit and Supervisory Board are responsible for supervising the execution of duties by Directors regarding the establishment and implementation of the financial reporting process.

*Auditor's Responsibilities for the Audit of the Consolidated Financial Statements* 

Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the decisions of users taken on the basis of the consolidated financial statements.

------

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risk of material misstatement due to fraud or error. In addition, we design and perform
audit procedures to address significant risks of material misstatement. Selecting audit procedures to be applied is at the discretion of the auditor. In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion.

• Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the consolidated financial statements is not expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used by management and their method of application, as well
as the reasonableness of accounting estimates by management and related notes thereto.

• Conclude on the appropriateness of management's use of the going concern basis for preparing the
consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we
conclude that a material uncertainty on the entity's ability to continue as a going concern exists, we are required to draw attention in our auditor's report to the related notes to the consolidated financial statements or, if the notes
to the consolidated financial statements on material uncertainty are inadequate, to express a qualified opinion with exceptions on the consolidated financial statements. Our conclusions are based on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.

• Evaluate whether the presentation of the consolidated financial statements and the notes thereto are in
accordance with accounting principles generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the consolidated financial statements, including the related notes thereto, and whether the consolidated
financial statements fairly represent the underlying transactions and accounting events.

• Plan and perform audit of the consolidated financial statements to obtain sufficient and appropriate audit
evidence regarding the financial information of the Company and its consolidated subsidiaries to provide a basis for our opinion on the consolidated financial statements. We are responsible for the direction, supervision and inspection of the audit
of the consolidated financial statements. We remain solely responsible for our audit opinion.

We communicate with the Auditors and the Audit and Supervisory Board regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit, and other matters required by auditing standards.

We also provide the Auditors and the Audit and Supervisory Board with a statement that we have complied with the provisions related to professional ethics in Japan regarding independence, and communicate with it all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, convey details of any measures taken in order to eliminate obstruction factors or any safeguards applied in order to reduce obstruction factors to an acceptable level.

*Interest* 

Our firm and the designated engagement partners have no interest in the Company and its consolidated subsidiaries which should be disclosed in accordance with the Certified Public Accountants Act.

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This document has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects. All dates and times are stated in Japan Standard Time (JST) in this document.

**Accounting Audit Report on Non-Consolidated Financial Statements** 

**Independent Auditors' Report (Translation)** 

April 24, 2026

To: The Board of Directors of Olympic Group Corporation

Ernst & Young ShinNihon LLC

Tokyo Office

Designated Limited Liability Member

Certified Public Accountant

Hirohisa Fukuda

Designated Limited Liability Member

Certified Public Accountant

Naohiko Sawabe

*Audit Opinion* 

Pursuant to Article 436, paragraph (2), item (i) of the Companies Act, we have audited the non-consolidated financial statements, comprising the non-consolidated balance sheets, the non-consolidated statements of income, the non-consolidated statements of changes in net assets, the notes to the non-consolidated financial statements and the related supplementary schedules (the "non-consolidated financial statements, etc.") of Olympic Group Corporation (the "Company") applicable to the 54th fiscal term from March 1, 2025 through February 28, 2026.

In our opinion, the non-consolidated financial statements, etc. referred to above present fairly, in all material respects, the financial position and results of operations of the Company as of the date and for the period for which the non-consolidated financial statements were prepared in accordance with the corporate accounting standards generally accepted in Japan.

*Basis for Audit Opinion* 

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Non-Consolidated Financial Statements, Etc. section of our report. We are independent of the Company in accordance with the provisions related to professional ethics in Japan, including those applicable to audits of financial statements of socially sensitive entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Emphasis of Matter* 

As stated in the notes on significant subsequent events in the non-consolidated financial statements, the Company resolved at its Board of Directors meeting on April 6, 2026, to integrate its business through a stock exchange, with Pan Pacific International Holdings Corporation as the wholly owning parent company and the Company as the wholly owned subsidiary, and entered into a stock exchange agreement on the same day.

------

Such matters do not affect our opinion.

*Other Information* 

Other information consists of the business report and supplementary schedules. Management is responsible for the preparation and disclosure of the other information. The Auditors and the Audit and Supervisory Board are responsible for supervising the execution of duties by Directors regarding the establishment and implementation of a reporting process for other information.

The scope of our audit opinion on the non-consolidated financial statements, etc. does not cover the other information, and we do not express an opinion on the other information.

Our responsibility in the audit of the non-consolidated financial statements, etc. is to read the other information and, in the course of reading, to consider whether there are material inconsistencies between the other information and the non-consolidated financial statements, etc. or our knowledge obtained in the course of the audit, and to pay attention to whether there are any indications of material misstatements in the other information other than such material inconsistencies.

If, based on the work we have performed, we conclude that a material misstatement exists in other information, we are required to report that fact.

We have nothing to report with respect to the other information.

*Responsibilities of Management, the Auditors, and the Audit and Supervisory Board for the Non-Consolidated Financial Statements* 

Management is responsible for the preparation and fair presentation of the non-consolidated financial statements in accordance with accounting principles generally accepted in Japan. This includes the maintenance and operation of such internal control as management determines is necessary to enable the preparation and fair presentation of non-consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the non-consolidated financial statements, etc., management is responsible for assessing whether it is appropriate to prepare the non-consolidated financial statements, etc. with the assumption of the entity's ability to continue as a going concern and disclosing matters related to going concern as applicable in accordance with accounting principles generally accepted in Japan.

The Auditors and the Audit and Supervisory Board are responsible for supervising the execution of duties by Directors regarding the establishment and implementation of the financial reporting process.

*Auditor's Responsibilities for the Audit of the Non-Consolidated Financial Statements, etc.* 

Our responsibilities are to obtain reasonable assurance about whether the non-consolidated financial statements, etc. as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the non-consolidated financial statements, etc. based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected to influence the decisions of users taken on the basis of the non-consolidated financial statements, etc.

------

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risk of material misstatement due to fraud or error. In addition, we design and perform
audit procedures to address significant risks of material misstatement. Selecting audit procedures to be applied is at the discretion of the auditor. In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion.

• Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the non-consolidated financial statements, etc. is not expressing an opinion on the effectiveness of the internal
control.

• Evaluate the appropriateness of accounting policies used by management and their method of application, as well
as the reasonableness of accounting estimates by management and related notes thereto.

• Conclude on the appropriateness of management's use of the going concern basis for preparing the non-consolidated financial statements, etc. and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's
ability to continue as a going concern. If we conclude that a material uncertainty on the entity's ability to continue as a going concern exists, we are required to draw attention in our auditor's report to the related notes to the non-consolidated financial statements, etc. or, if the notes to the non-consolidated financial statements, etc. on material uncertainty are inadequate, to express a qualified
opinion with exceptions on the non-consolidated financial statements, etc. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or
conditions may cause the entity to cease to continue as a going concern.

• Evaluate whether the presentation of the non-consolidated financial
statements, etc. and the notes thereto are in accordance with accounting principles generally accepted in Japan, as well as evaluate the overall presentation, structure and content of the non-consolidated financial statements, etc. including the related notes thereto, and whether the non-consolidated financial statements, etc., fairly represent the underlying transactions and accounting events.

We communicate with the Auditors and the Audit and Supervisory Board regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit, and other matters required by auditing standards.

We also provide the Auditors and the Audit and Supervisory Board with a statement that we have complied with the provisions related to professional ethics in Japan regarding independence, and communicate with it all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, convey details of any measures taken in order to eliminate obstruction factors or any safeguards applied in order to reduce obstruction factors to an acceptable level.

*Interest* 

Our firm and the designated engagement partners have no interest in the Company which should be disclosed in accordance with the Certified Public Accountants Act.

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**Audit Report of the Audit and Supervisory Board** 

**Audit Report (Translation)** 

The Audit and Supervisory Board has compiled this audit report regarding the execution of duties by the Directors during the 54th fiscal term from March 1, 2025 through February 28, 2026, based on the audit reports prepared by each Auditor and following deliberation, and hereby reports as follows.

1. Method and details of audits by the Auditors and the Audit and Supervisory Board

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Audit and Supervisory Board established auditing policies, allocation of duties, etc., received reports
from each Auditor on the status and results of audits, received reports from Directors, etc. and the Accounting Auditor on the status of execution of their duties, and requested explanations as necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Each Auditor conducted audits in accordance with the auditing standards established by the Audit and
Supervisory Board, in compliance with audit policies and the division of duties, while communicating with Directors, the Internal Audit Department, and other employees, and strived to collect information and establish an appropriate audit
environment. The audits were conducted in the following manner.

1) Attended important meetings, received reports from Directors, employees, etc. regarding the matters concerning the execution of their duties, requested explanations as necessary, viewed important approved documents, etc., and inspected the status of operations and assets at the head office and main business locations. Additionally, in regard to subsidiaries, we communicated and exchanged information with Directors, etc. of subsidiaries and received reports on business from subsidiaries as necessary. 

2) Regularly received reports from Directors, employees, and other relevant personnel on the status of the establishment and operation of the system (internal control system) to ensure that the execution of duties by the Directors as stated in the Business Report complies with laws and regulations and the Articles of Incorporation, as well as reports on other systems stipulated in Article 100, Paragraphs 1 and 3 of the Enforcement Regulations of the Companies Act as necessary to ensure the properness of operations of the corporate group consisting of the Company and its subsidiaries based on board resolutions, and requested explanations and expressed its opinions as necessary. 

3) We oversaw and verified whether the Accounting Auditor maintained an independent position and conducted an appropriate audit, received reports from the Accounting Auditor on the status of the execution of its duties, and requested explanations as necessary. Additionally, we received notification from the Accounting Auditor that, in accordance with the "Quality Control Standards for Audits" (Business Accounting Council, October 28, 2005), etc., it had developed systems in order to ensure that its duties are appropriately performed (i.e., notification of the matters stated in the items of Article 131 of the Regulations for Corporate Accounting) and requested explanations as necessary. 

Using the methods above, we examined the business report, the supplementary schedules thereto, the non-consolidated financial statements (i.e., the non-consolidated balance sheets, non-consolidated statements of income, non-consolidated statements of changes in net assets, and notes to the non-consolidated financial statements), the supplementary schedules to the non-consolidated financial statements, and the consolidated financial statements (i.e., the consolidated balance sheets, consolidated statements of income, consolidated statements of changes in net assets, and notes to the consolidated financial statements).

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2. Results of audit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Results of audit of the Business Report, etc.

1) We find that the business report and the supplementary schedules thereto accurately present the status of the Company in accordance with laws, regulations, and the Articles of Incorporation.

2) We do not find any misconduct nor any material fact constituting a violation of any law, regulation, or the Articles of Incorporation in relation to the execution of duties by Directors.

3) We find the content of the resolutions of the Board of Directors regarding internal control systems to be reasonable. Additionally, we do not find any matters that should be commented upon in regard to the statements in the Business Report or the execution of duties by Directors relating to the internal control systems. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Results of audit of the non-consolidated financial statements and the
supplementary schedules thereto

We find the methods and results of the audit by the Accounting Auditor, Ernst & Young ShinNihon LLC, to be reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Results of audit of the consolidated financial statements

We find the methods and results of the audit by the Accounting Auditor, Ernst & Young ShinNihon LLC, to be reasonable.

3. Significant subsequent events

As stated in the notes on significant subsequent events, the Company resolved at its Board of Directors meeting on April 6, 2026, to integrate its business through a stock exchange, with Pan Pacific International Holdings Corporation as the wholly owning parent company and the Company as the wholly owned subsidiary, and entered into a stock exchange agreement on the same day.

April 24, 2026

To: The Board of Directors of Olympic Group Corporation Full-time Audit and Supervisory Board Member Chikashi Moteki Full-time Audit and Supervisory Board Member Hiroaki Takuma Outside Auditor Eri Shigemasu Outside Auditor Shoji Tabata