Interim report
Page 1
Disclaimer: This document is a translation of the original Japanese version and is provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail. Consolidated Financial Results for the Three Months Ended August 20, 2026 [Japanese GAAP]* September 15, 2026 Company name: ASKUL Corporation Stock exchange listing: Tokyo Code number: 2678 URL: https://www.askul.co.jp/corp/english/investor Representative: Takeshi Narimatsu Representative Director, President and Chief Executive Officer (CEO) Contact: Tsuguhiro Tamai Director and Chief Financial Officer (CFO) Phone: +81-3-4330-5130 Scheduled date of commencing dividend payments: - Preparation of supplementary materials for financial results: Yes Schedule of financial results briefing session: Yes (for institutional investors and analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Three Months Ended August 20, 2026 (May 21, 2026 to August 20, 2026) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Million yen % Million yen % Million yen % Million yen % August 20, 2026 112,345 (8.2) (418) - (452) - (508) - August 20, 2025 122,324 3.3 1,053 (59.1) 938 (62.6) 344 (77.7) (Note) Comprehensive income: Three months ended August 20, 2026: ¥(412) million [-%] Three months ended August 20, 2025: ¥426 million [(73.7)%] Basic earnings per share Diluted earnings per share Three months ended Yen Yen August 20, 2026 (5.68) - August 20, 2025 3.73 3.69 (2) Consolidated Financial Position Total assets Net assets Capital adequacy ratio As of Million yen Million yen % August 20, 2026 219,920 50,160 21.1 May 20, 2026 229,907 51,455 20.8 (Reference) Equity: As of August 20, 2026: ¥46,379 million As of May 20, 2026: ¥47,805 million 2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended May 20, 2026 - 0.00 - 10.00 10.00 Fiscal year ending May 20, 2027 - Fiscal year ending May 20, 2027 (Forecast) 10.00 - 10.00 20.00 (Note) Revision to the forecast for dividends announced most recently: No
Page 2
3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 20, 2027 (May 21, 2026 to May 20, 2027) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 490,000 22.4 7,000 - 6,300 - 4,000 - 44.68 (Note) Revision to the financial results forecast announced most recently: No * Notes: (1) Significant changes in the scope of consolidation during the period under review: No (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (4) Number of outstanding shares (common stocks) 1) Number of outstanding shares at the end of the period (including treasury stock): August 20, 2026: 89,771,300 shares May 20, 2026: 89,771,300 shares 2) Number of treasury stock at the end of the period: August 20, 2026: 238,228 shares May 20, 2026: 237,728 shares 3) Average number of shares during the period: Three months ended August 20, 2026: 89,533,259 shares Three months ended August 20, 2025: 92,408,211 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No * Notes for using forecasted information and others Earnings forecasts and other forward-looking statements contained in this document are based on the information ASKUL has obtained to date and on certain assumptions it considers reasonable. As such, these forecasts and statements are not intended as a com mitment by the Company to achieve them. Note also that actual results and other future events may differ materially from these forecasts and statements due to a variety of factors. For the assumptions on which earnings forecasts are based and notes and information on the use of earnings forecasts, see “1. Qualitative Information on Financial Results (3) Explanation of Consolidated Forecasts and Other Forward-Looking Information” on Page 4 of Attached Materials.
Page 3
1 Table of Contents for Attached Materials 1. Qualitative Information on Financial Results ................................ ................................ ................................ ................... 2 (1) Explanation of Operating Results ................................ ................................ ................................ .............................. 2 (2) Explanation of Financial Position ................................ ................................ ................................ .............................. 4 (3) Explanation of Consolidated Forecasts and Other Forward-Looking Information ................................ ......................... 4 2. Quarterly Consolidated Financial Statements and Notes ................................ ................................ ................................ 5 (1) Quarterly Consolidated Balance Sheet ................................ ................................ ................................ ...................... 5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ................................ ............................... 7 (3) Notes to Quarterly Consolidated Financial Statements ................................ ................................ .............................. 9 (Notes to Going Concern Assumption) ................................ ................................ ................................ ........................ 9 (Notes to Significant Changes in Shareholders’ Equity) ................................ ................................ ............................... 9 (Segment Information, etc.) ................................ ................................ ................................ ................................ ........ 9 (Notes to Statement of Cash Flows) ................................ ................................ ................................ ......................... 10 3. Other ................................ ................................ ................................ ................................ ................................ .......... 11 Details of Selling, General and Administrative Expenses (Consolidated) ................................ ................................ ....... 11
Page 4
2 1. Qualitative Information on Financial Results (1) Explanation of Operating Results During the three months ended August 20, 202 6 (from May 21, 202 6 to August 20, 202 6), the Japanese economy remained on a gradual recovery trend, with improving employment and income conditions, partly due to increased inbound demand. On the other hand, the outlook remains uncertain due to rising prices of raw materials and energy amid the unstable international situation, including the situation in the Middle East, as well as concerns about rising interest rates, further depreciation of the yen, the impact of U.S. trade policy developments, and other factors. Under such circumstances, the Group achieved an early restoration of service levels following the ransomware attack targeting the Company that occurred on October 19, 2025, and is implementing measures aiming at the re-growth of its retail business and establishment of an area to provide new values, toward achievement of the targets of the Medium- Term Management Plan (from the fiscal year ended May 20, 2026 to the fiscal year ending May 20, 2029) announced in July 2025. Positioning the fiscal year ending May 20, 2027 as the starting point for reaccelerated growth, we are promoting AI- driven sales support for ASKUL sales agents (sales representatives) and personalized sales promotions to recover the number of customers, while also improving our earnings structure, including reducing fixed costs through the reorganization of logistics bases and company-wide operational efficiency improvements. The financial performance of the Group for the three months ended August 20, 2026 was net sales of 112,345 million yen, an 8.2% decrease year-on-year, operating loss of 418 million yen, as opposed to an operating profit of 1,053 million yen a year earlier, ordinary loss of 452 million yen, as opposed to an ordinary profit of 938 million yen a year earlier, and loss attributable to owners of parent of 508 million yen, as opposed to a profit attributable to owners of parent of 344 million yen a year earlier. Operating results by segment are outlined below. <E-commerce Business> (Million yen) For the three months ended August 20, 2025 For the three months ended August 20, 2026 Change (amount) Change (percentage) Net sales 120,249 110,700 (9,548) (7.9)% ASKUL Business 91,003 79,898 (11,105) (12.2)% LOHACO Business 10,100 8,862 (1,238) (12.3)% Group companies and elimination of intra-group transactions 19,145 21,939 +2,794 +14.6% Operating profit (loss) 1,064 (393) (1,458) - (Note) Net sales include intra-segment sales or transfers. In the E-commerce Business during the three months ended August 20, 2026, net sales were 110,700 million yen, a 7.9% decrease year-on-year. They were in line with the initial plan, but did not recover to the sales level seen prior to the ransomware attack. Although the one -off expenses recorded in the same period of the previous fiscal year were no t incurred, the gross profit margin dec reased due to the impact of pricing initiatives for sales recovery that were implemented in the previous fiscal year. As a result, operating loss was 393 million yen, as opposed to an operating profit of 1,064 million yen a year earlier, and both sales and profit decreased. Net sales and operating loss are outlined below. (1) Net sales a. ASKUL Business • Net sales decreased 12.2% year-on-year, as sales were still in the process of recovering from the ransomware attack, sales of seasonal products (such as beverages, food, and heatstroke prevention products) did not grow due to the rebound from the extremely hot weather in the same period of the previous fiscal year, and there
Page 5
3 was also a rebound from the special demand arising from the situation in the Middle East in the fourth quarter of the previous fiscal year • Although the number of customers among small and medium -sized enterprises is still in the process of recovering, the number of customers among large and medium-sized companies recovered to a level close to that prior to the ransomware attack b. LOHACO Business • Net sales decreased 12.3% year-on-year due to the impact of the extremely hot weather, as was the case with the ASKUL Business, and the rebound from sales of government-stockpiled rice in the same period of the previous fiscal year c. Group companies and elimination of intra-group transactions • Net sales of AlphaPurchase Co., Ltd. and FEED Corporation remained strong, with a growth rate of 14.6% year-on-year (2) Operating loss Operating loss was 393 million yen, as opposed to an operating profit of 1,064 million yen a year earlier. This was due to a 1.5-point year-on-year decrease in gross profit margin, standing at 23.3%, while the ratio of selling, general and administrative expenses improved by 0.3 points year-on-year to 23.7%, partly due to the absence of one -off expenses recorded in the same period of the previous fiscal year, as outlined below. • As a result of promoting sales recovery, the gross profit margin decreased because the impact of the pricing initiatives implemented in the previous fiscal year continued into the three months ended August 20, 2026 • The ratio of selling, general and administrative expenses improved despite the decrease in sales, partly due to the absence of one-off expenses recorded in the same period of the previous fiscal year, including the startup costs for ASKUL Kanto DC <Logistics Business> Net sales of the contracted logistics business that ASKUL LOGIST Corporation received from outside the Group decreased, resulting in decreases in both sales and profit, partly due to revisions to certain service agreements. As a result, net sales in the three months ended August 20, 2026 were 1,420 million yen, a 25.7% decrease year-on- year, and operating loss was 53 million yen, as opposed to an operating loss of 33 million yen a year earlier. <Other> Due to the rebound from the extremely hot weather in the same period of the previous fiscal year, sales of bottled water of TSUMAGOI MEISUI CORPORATION, mainly to ASKUL, struggled to grow, resulting in decreases in both sales and profit. As a result, net sales in the three months ended August 20, 2026 were 509 million yen, a 5.7% decrease year-on-year, and operating profit was 13 million yen, a 27.0% decrease year-on-year.
Page 6
4 (2) Explanation of Financial Position (Assets) Total assets stood at 219,920 million yen at the end of the first quarter of the fiscal year under review, a decrease of 9,987 million yen from the end of the preceding fiscal year. This was mainly due to decreases of 4,412 million yen in cash and deposits, 4,176 million yen in consumption taxes refund receivable included in other under c urrent assets, 1,675 million yen in software in progress, and 1,050 million yen in leased assets, while software increased 1,100 million yen. (Liabilities) Total liabilities stood at 169,760 million yen at the end of the first quarter of the fiscal year under review, a decrease of 8,691 million yen from the end of the preceding fiscal year. This was primarily due to decreases of 3,104 million yen in electronically recorded obligations - operating, 2,759 million yen in accounts payable - other, 2,136 million yen in notes and accounts payable - trade, and 1,102 million yen in lease liabilities. (Net assets) Net assets stood at 50,160 million yen at the end of the first quarter of the fiscal year under review, a decrease of 1,295 million yen from the end of the preceding fiscal year. This was mainly due to a decrease of 1,403 million yen in retained earnings due to dividend paid of 895 million yen and recognition of loss attributable to owners of parent of 508 million yen. Consequently, the capital adequacy ratio was 21.1% (20.8% at the end of the preceding fiscal year). (3) Explanation of Consolidated Forecasts and Other Forward-Looking Information The consolidated financial results forecast for the fiscal year ending May 20, 2027, which was announced on July 3, 2026, remains unchanged.
Page 7
5 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet (Millions of yen) As of May 20, 2026 As of August 20, 2026 Assets Current assets Cash and deposits 49,332 44,920 Notes and accounts receivable - trade, and contract assets 54,503 53,461 Merchandise and finished goods 24,402 24,718 Raw materials and supplies 420 226 Costs on construction contracts in progress 43 114 Accounts receivable - other 13,932 14,585 Other 7,383 3,380 Allowance for doubtful accounts (12) (13) Total current assets 150,005 141,393 Non-current assets Property, plant and equipment Buildings and structures 13,414 14,117 Accumulated depreciation (6,167) (6,357) Buildings and structures, net 7,246 7,760 Land 257 257 Leased assets 40,656 40,643 Accumulated depreciation (17,701) (18,739) Leased assets, net 22,954 21,903 Construction in progress 290 154 Other 13,414 13,724 Accumulated depreciation (9,153) (9,474) Other, net 4,261 4,249 Total property, plant and equipment 35,011 34,325 Intangible assets Software 14,912 16,012 Software in progress 3,308 1,632 Goodwill 722 663 Customer-related intangible assets 5,199 5,094 Other 10 10 Total intangible assets 24,152 23,413 Investments and other assets Investment securities 487 487 Deferred tax assets 12,994 13,480 Other 7,940 7,505 Allowance for doubtful accounts (685) (685) Total investments and other assets 20,738 20,788 Total non-current assets 79,902 78,527 Total assets 229,907 219,920
Page 8
6 (Millions of yen) As of May 20, 2026 As of August 20, 2026 Liabilities Current liabilities Notes and accounts payable - trade 57,204 55,067 Electronically recorded obligations - operating 19,275 16,171 Short-term borrowings 27,280 27,875 Current portion of long-term borrowings 4,374 4,549 Accounts payable - other 15,118 12,358 Income taxes payable 448 605 Accrued consumption taxes 150 596 Provisions 436 547 Other 7,509 7,386 Total current liabilities 131,796 125,157 Non-current liabilities Long-term borrowings 13,360 12,548 Lease liabilities 20,917 19,802 Retirement benefit liability 4,831 4,895 Asset retirement obligations 3,190 3,190 Deferred tax liabilities 1,816 1,781 Other 2,539 2,384 Total non-current liabilities 46,655 44,602 Total liabilities 178,452 169,760 Net assets Shareholders' equity Share capital 21,233 21,233 Capital surplus 14,830 14,834 Retained earnings 11,670 10,267 Treasury shares (362) (362) Total shareholders' equity 47,372 45,973 Accumulated other comprehensive income Deferred gains or losses on hedges 3 3 Remeasurements of defined benefit plans 429 402 Total accumulated other comprehensive income 432 406 Non-controlling interests 3,650 3,780 Total net assets 51,455 50,160 Total liabilities and net assets 229,907 219,920
Page 9
7 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income (For the Three-Month Ended August 20, 2026) (Millions of yen) For the three months ended August 20, 2025 For the three months ended August 20, 2026 Net sales 122,324 112,345 Cost of sales 92,011 86,173 Gross profit 30,312 26,171 Selling, general and administrative expenses 29,258 26,590 Operating profit (loss) 1,053 (418) Non-operating income Interest income 56 23 Subsidy income 4 1 Dividend income of insurance 20 21 Reversal of expenses for system failure - 88 Other 14 48 Total non-operating income 95 183 Non-operating expenses Interest expenses 157 189 Other 53 27 Total non-operating expenses 210 216 Ordinary profit (loss) 938 (452) Extraordinary income Gain on sale of non-current assets 0 0 Other 0 - Total extraordinary income 1 0 Extraordinary losses Loss on sale of non-current assets - 0 Loss on retirement of non-current assets 4 22 Other 0 0 Total extraordinary losses 4 22 Profit (loss) before income taxes 935 (474) Income taxes - current 311 418 Income taxes - deferred 185 (507) Total income taxes 497 (88) Profit (loss) 438 (386) Profit attributable to non-controlling interests 94 122 Profit (loss) attributable to owners of parent 344 (508)
Page 10
8 Quarterly Consolidated Statement of Comprehensive Income (For the Three-Month Ended August 20, 2026) (Millions of yen) For the three months ended August 20, 2025 For the three months ended August 20, 2026 Profit (loss) 438 (386) Other comprehensive income Deferred gains or losses on hedges - 0 Remeasurements of defined benefit plans, net of tax (12) (26) Total other comprehensive income (12) (26) Comprehensive income 426 (412) Comprehensive income attributable to Comprehensive income attributable to owners of parent 332 (534) Comprehensive income attributable to non- controlling interests 94 122
Page 11
9 (3) Notes to Quarterly Consolidated Financial Statements (Notes to Going Concern Assumption) Not applicable. (Notes to Significant Changes in Shareholders’ Equity) Not applicable. (Segment Information, etc.) [Segment Information] I. First Three Months of the Previous Fiscal Year (From May 21, 2025 to August 20, 2025) Information on amounts of net sales and profit (loss) by reporting segment and information on disaggregation of revenue (Million yen) Reporting Segment Other (Note 1) Total Adjustments (Note 2) Amount recorded in quarterly statement of income (Note 3) E-commerce Business Logistics Business Total Net sales ASKUL Business 91,002 - 91,002 - 91,002 - 91,002 LOHACO Business 10,100 - 10,100 - 10,100 - 10,100 Group companies and elimination of intra- group transactions 19,144 - 19,144 - 19,144 - 19,144 Logistics Business - 1,912 1,912 - 1,912 - 1,912 Other - - - 163 163 - 163 Revenue from contracts with customers 120,248 1,912 122,160 163 122,324 - 122,324 Sales to external customers 120,248 1,912 122,160 163 122,324 - 122,324 Intra-segment sales or transfer 1 - 1 377 378 (378) - Total 120,249 1,912 122,161 540 122,702 (378) 122,324 Segment profit (loss) 1,064 (33) 1,031 18 1,049 3 1,053 (Notes) 1. “Other” represents business segments that do not fall under the Reporting Segment and includes the manufacturing business. 2. The adjustment of 3 million yen to segment profit (loss) represents the elimination of inter-segment transactions of 3 million yen. 3. Segment profit (loss) is adjusted with operating profit reported in the quarterly consolidated statement of income.
Page 12
10 II. First Three Months of the Current Fiscal Year (From May 21, 2026 to August 20, 2026) Information on amounts of net sales and profit (loss) by reporting segment and information on disaggregation of revenue (Million yen) Reporting Segment Other (Note 1) Total Adjustments (Note 2) Amount recorded in quarterly statement of income (Note 3) E-commerce Business Logistics Business Total Net sales ASKUL Business 79,897 - 79,897 - 79,897 - 79,897 LOHACO Business 8,862 - 8,862 - 8,862 - 8,862 Group companies and elimination of intra-group transactions 21,939 - 21,939 - 21,939 - 21,939 Logistics Business - 1,420 1,420 - 1,420 - 1,420 Other - - - 225 225 - 225 Revenue from contracts with customers 110,699 1,420 112,120 225 112,345 - 112,345 Sales to external customers 110,699 1,420 112,120 225 112,345 - 112,345 Intra-segment sales or transfer 0 - 0 284 285 (285) - Total 110,700 1,420 112,120 509 112,630 (285) 112,345 Segment profit (loss) (393) (53) (447) 13 (433) 14 (418) (Notes) 1. “Other” represents business segments that do not fall under the Reporting Segment and includes the manufacturing business. 2. The adjustment of 14 million yen to segment profit (loss) represents the elimination of inter-segment transactions of 14 million yen. 3. Segment profit (loss) is adjusted with operating loss reported in the quarterly consolidated statement of income. (Notes to Statement of Cash Flows) The quarterly consolidated statement of cash flows for the three months ended August 20, 2026 has not been prepared. Depreciation (including amortization of intangible assets other than goodwill and customer -related intangible assets), amortization of goodwill, and amortization of customer-related intangible assets for the three months ended August 20 are as follows. (Million yen) For the three months ended August 20, 2025 For the three months ended August 20, 2026 Depreciation 3,062 3,182 Amortization of goodwill 139 59 Amortization of customer -related intangible assets 130 104
Page 13
11 3. Other Details of Selling, General and Administrative Expenses (Consolidated) Item First Three Months of the Previous Fiscal Year (From May 21, 2025 through August 20, 2025) First Three Months of the Fiscal Year Under Review (From May 21, 2026 through August 20, 2026) (Reference) Fiscal Year Ended May 20, 2026 (From May 21, 2025 through May 20, 2026) Amount (Million yen) Ratio to Sales (%) Amount (Million yen) Ratio to Sales (%) Year-on-Year Change (%) Amount (Million yen) Ratio to Sales (%) Personnel expenses 7,037 5.8 6,640 5.9 94.4 26,273 6.6 Shipment expenses 6,010 4.9 5,836 5.2 97.1 20,968 5.2 Subcontract expenses 1,652 1.4 1,548 1.4 93.7 7,204 1.8 Business consignment expenses *1 3,066 2.5 2,405 2.1 78.4 10,615 2.7 Rents 3,206 2.6 3,089 2.8 96.4 13,251 3.3 Provision of allowance for doubtful accounts (3) (0.0) 0 0.0 - 18 0.0 Depreciation 1,539 1.3 1,491 1.3 96.9 5,210 1.3 Amortization of software *2 1,391 1.1 1,591 1.4 114.4 5,643 1.4 Other expenses *3 5,357 4.4 3,987 3.5 74.4 17,572 4.4 Total 29,258 23.9 26,590 23.7 90.9 106,758 26.7 *1. Compared with the same period of the previous fiscal year, business consignment expenses for the three months ended August 20, 2026 decreased. This was mainly due to the impact of decreased costs related to operations at distribution centers associated with lower net sales. 2. Compared with the same period of the previous fiscal year, amortization of software for the three months ended August 20, 2026 increased. This was mainly due to the impact of core system replacement in August 2025. 3. Compared with the same period of the previous fiscal year, other expenses for the three months ended August 20, 2026 decreased. This was mainly due to the impacts of the incurred expenses for the launch of “ASKUL Kanto DC” and publication of a new catalog in the ASKUL Business in the same period of the previous fiscal year.