Interim report
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DISCLAIMER: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. August 3, 2026 Consolidated Financial Results for the Three Months Ended June 30, 2026 (Under Japanese GAAP) Company name: Shou Spirits Inc. Listing: Tokyo Stock Exchange Securities code: 2222 URL: https://www.kotobukispirits.co.jp/ Representative: Please refer to the website. Inquiries: Please refer to the website. Telephone: +81-859-22-7477 Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30, 2026 18,668 10.0 4,152 20.7 4,178 20.3 2,731 18.6 June 30, 2025 16,976 9.3 3,439 0.3 3,472 0.7 2,303 1.7 Note: Comprehensive income For the three months ended June 30, 2026: ¥2,756 million [19.6%] For the three months ended June 30, 2025: ¥2,304 million [1.0%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30, 2026 17.69 - June 30, 2025 14.92 - (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share As of Millions of yen Millions of yen % Yen June 30, 2026 56,299 45,290 80.4 293.22 March 31, 2026 60,142 47,936 79.7 310.37 Reference: Equity As of June 30, 2026: ¥45,283 million As of March 31, 2026: ¥47,931 million 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 - 0.00 - 35.00 35.00 Fiscal year ending March 31, 2027 - Fiscal year ending March 31, 2027 (Forecast) 10.00 35.00 45.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes 2. For the dividend forecast for the fiscal year ending March 31, 2027, please refer to the "Notice Regarding a Partial Change to the Dividend Policy (Implementation of an Interim Dividend) and Revision of the Dividend Forecast" announced today (August 3, 2026). 3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 38,300 7.0 8,190 10.1 8,220 9.3 5,500 9.6 35.61 Fiscal year ending March 31, 2027 84,500 7.3 20,550 10.5 20,610 10.0 13,810 10.0 89.42 Note: Revisions to the earnings forecasts most recently announced: None
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* Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 1 company (Hakone Toki Only) (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 155,658,402 shares As of March 31, 2026 155,658,402 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,225,385 shares As of March 31, 2026 1,225,366 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 154,433,031 shares Three months ended June 30, 2025 154,362,605 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm:None * Proper use of earnings forecasts, and other special matters (Cautions on forward-looking statements, etc.) The forward-looking statements, including forecasts of financial results, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ due to a variety of factors. For the conditions on which earnings forecasts are predicated and precautions for using earnings forecasts, please refer to "1. Summary of Operating Results, etc. (3) Explanation of Forward-Looking Information such as Consolidated Earnings Forecasts." (How to obtain supplementary explanatory materials for financial results) Supplementary financial results materials will be disclosed on TDnet on the same day and posted on the Company's website.
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Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 32,200 28,811 Notes and accounts receivable - trade 8,257 6,570 Merchandise and finished goods 3,015 3,417 Work in process 155 163 Raw materials and supplies 889 925 Other 257 347 Allowance for doubtful accounts (0) (0) Total current assets 44,775 40,236 Non-current assets Property, plant and equipment Buildings and structures, net 5,188 5,210 Machinery, equipment and vehicles, net 3,164 3,133 Tools, furniture and fixtures, net 520 559 Land 2,885 2,905 Leased assets, net 14 13 Construction in progress 606 1,195 Total property, plant and equipment 12,380 13,017 Intangible assets 141 136 Investments and other assets Other 2,850 2,914 Allowance for doubtful accounts (5) (5) Total investments and other assets 2,845 2,909 Total non-current assets 15,367 16,063 Total assets 60,142 56,299
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(Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 2,067 2,206 Accounts payable - other 1,865 1,694 Income taxes payable 3,488 1,455 Provision for bonuses 1,298 631 Other 1,383 2,876 Total current liabilities 10,102 8,863 Non-current liabilities Retirement benefit liability 1,882 1,924 Other 220 220 Total non-current liabilities 2,103 2,145 Total liabilities 12,206 11,008 Net assets Shareholders' equity Share capital 1,263 1,263 Capital surplus 1,350 1,350 Retained earnings 47,892 45,218 Treasury shares (2,842) (2,842) Total shareholders' equity 47,663 44,989 Accumulated other comprehensive income Valuation difference on available-for-sale securities 94 126 Foreign currency translation adjustment 33 37 Remeasurements of defined benefit plans 140 129 Total accumulated other comprehensive income 267 293 Non-controlling interests 5 7 Total net assets 47,936 45,290 Total liabilities and net assets 60,142 56,299
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Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 16,976 18,668 Cost of sales 6,670 7,118 Gross profit 10,305 11,549 Selling, general and administrative expenses 6,865 7,397 Operating profit 3,439 4,152 Non-operating income Interest income 1 5 Dividend income 3 5 Rental income from land and buildings 12 8 Insurance claim income 8 - Other 8 8 Total non-operating income 34 27 Non-operating expenses Depreciation 0 0 Other 0 0 Total non-operating expenses 1 1 Ordinary profit 3,472 4,178 Extraordinary income Gain on sale of non-current assets 0 - Total extraordinary income 0 - Extraordinary losses Loss on retirement of non-current assets 2 1 Total extraordinary losses 2 1 Profit before income taxes 3,469 4,177 Income taxes 1,166 1,446 Profit 2,303 2,731 Loss attributable to non-controlling interests (0) (0) Profit attributable to owners of parent 2,303 2,731
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Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 2,303 2,731 Other comprehensive income Valuation difference on available-for-sale securities (7) 32 Foreign currency translation adjustment 15 4 Remeasurements of defined benefit plans, net of tax (7) (10) Total other comprehensive income 0 25 Comprehensive income 2,304 2,756 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,304 2,757 Comprehensive income attributable to non-controlling interests (0) (0)
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(Notes on segment information, etc.) Segment Information I. The three months of the previous fiscal year (April 1, 2025 to June 30, 2025) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Sucrey Group KCC Group Kotobukiseika Group sales subsidiary Total Sales Revenues from external customers 7,739 4,801 2,588 1,746 16,876 Transactions with other segments 340 90 1,229 32 1,692 Total 8,079 4,891 3,818 1,779 18,568 Segment profit (△ indicates loss) 1,306 869 835 208 3,218 Other (Note) 1 Total Adjustment amount (Note) 2 Quarterly Consolidated Statements of Income (Note)3 Sales Revenues from external customers 100 16,976 - 16,976 Transactions with other segments 0 1,692 (1,692) - Total 100 18,668 (1,692) 16,976 Segment profit (△ indicates loss) (13) 3,205 234 3,439 Note: 1. The "Other" category is a business segment that is not included in the reporting segments, and includes the non -life insurance agency business, the health food business, and the confectionery business overseas (Taiwan). 2. Segment profit (△ indicates loss) of 234 million yen consists of 552 million yen of elimination of internal transactions between the Company an d segments, 7 million yen of elimination of inter-segment transactions, (3) million yen of adjustment of inven tories, and (321) million yen of company-wide expenses not allocated to each reporting segment. Company-wide expenses are mainly related to group management at the submitting company. 3. Segment profit (△ indicates loss) is adjusted to operating income in the quarterly consolidated statements of income. 2. Information on impairment losses or goodwill on fixed assets by reporting segment Not applicable. II. The three months of the current fiscal year (April 1, 2026 to June 30, 2026) 1. Information on sales and the amount of profit or loss for each reported segment (Millions of yen) Reportable segments Sucrey Group KCC Group Kotobukiseika Group sales subsidiary Total Sales Revenues from external customers 8,413 5,255 2,917 1,933 18,519 Transactions with other segments 216 121 1,376 19 1,732 Total 8,629 5,376 4,293 1,952 20,252 Segment profit (△ indicates loss) 1,641 1,016 1,033 276 3,968 Other (Note) 1 Total Adjustment amount (Note) 2 Quarterly Consolidated Statements of Income (Note)3 Sales Revenues from external customers 148 18,668 - 18,668 Transactions with other segments 0 1,733 (1,733) - Total 148 20,401 (1,733) 18,668 Segment profit (△ indicates loss) (3) 3,965 186 4,152 Note: 1. The "Other" category is a business segment that is not included in the reporting segments, and includes the non -life insurance agency business, the health food business, and the confectionery business overseas (Taiwan). 2. The 186 million yen adjustment for segment profit ( △ indicates loss) consists of 600 million yen in the elimination of internal transactions between the Company and segments, 7 million yen in the elimination of inter-segment transactions, 5 million yen in inventory adjustments, and (426) million yen in company -wide expenses that have not been allocated to each reporting segment. Company-wide expenses are mainly related to group management at the submitting company. 3. Segment profit (△ indicates loss) is adjusted to operating income in the quarterly consolidated statements of income. 2. Changes to Reporting Segments With the establishment of Hakone Tokinomi Co., Ltd. on April 1, 2026 with a 100% stake, the name of the reporting segment that was "K CC" has been changed to "KCC Group" from the first quarter of the current fiscal year. 3. Information on impairment losses or goodwill on fixed assets by reporting segment Not applicable.