Interim report
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This document is a translation of the original Japanese document for reference purposes only . In the event of any discrepancy between this document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 < under Japanese GAAP > Company name : MatsukiyoCocokara & Co. Tokyo Stock Exchange https://www.matsukiyococokara.com/ Kiyoo Matsumoto , President and Representative Director Listing : Securities code : 3088 URL : Representative : Inquiries : TEL : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results presentation meeting : Shingo Obe , Senior Managing Director and Head of Group Management + 81-3-6845-0005 Yes RAM FASF August 10 , 2026 None ( Amounts less than one million yen are rounded down ) 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 EBITDA Operating profit Ordinary profit Profit attributable to owners of parent Millions of Three months ended % yen Millions of yen % June 30 , 2026 June 30 , 2025 289,348 273,643 5.7 5.3 27,662 25,406 8.9 11.5 Millions of yen 21,487 19,808 % Note : Comprehensive income Three months ended June 30 , 2026 Three months ended June 30 , 2025 8.5 14.6 ¥ 14,345 million [ 14.3 % ] ¥ 12,554 million [ 5.0 % ] Millions of yen 22,822 20,981 Millions of % % yen 8.8 14,865 14.4 12,939 14.9 10.8 Basic earnings per share Diluted earnings per share Three months ended June 30 , 2026 Yen 37.59 32.30 June 30 , 2025 Note : EBITDA = Operating profit + Depreciation and Amortization of goodwill ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 Reference : Equity Yen 37.58 32.29 Total assets Net assets Equity ratio Net assets per share Millions of yen 736,953 755,831 Millions of yen 537,838 544,451 % Yen 72.9 71.9 1,365.01 1,365.78 As of June 30 , 2026 As of March 31 , 2026 ¥ 536,872 million ¥ 543,480 million
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2. Cash dividends Annual cash 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 – 24.00 – 26.00 50.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (forecast) 28.00 – 28.00 56.00 Note: Revisions to dividends forecasts most recently announced: None 3. Consolidated earnings forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales EBITDA 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 % Millions of yen % Yen For the six months ending September 30, 2026 572,000 4.2 52,000 0.4 39,500 (2.3) 41,500 (2.9) 27,000 1.8 68.27 Full year 1,155,000 3.4 113,000 4.1 87,500 3.0 91,500 1.8 59,000 5.8 149.18 Note: Revisions to earnings forecasts most recently announced: None
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* Notes (1) Significant changes in the scope of consolidation during the three months ended June 30, 2026: Yes Newly included: 2 companies (UNIVERSAL DRUG CO., LTD. and AppBrew Inc.) Excluded: – companies (Company names) (2) Adoption of special accounting treatments for preparing quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement a. Changes in accounting policies due to revisions to accounting standards and other regulations: None b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None d. Restatement: None (4) Number of issued shares (common shares) a. Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 405,658,130 shares As of March 31, 2026 410,275,830 shares b. Number of treasury shares at the end of the period As of June 30, 2026 12,346,335 shares As of March 31, 2026 12,350,320 shares c. Average number of shares during the period Three months ended June 30, 2026 395,496,115 shares Three months ended June 30, 2025 400,586,062 shares Note: The number of treasury shares at the end of each period includes shares of the Company held by the BIP (Board Incentive Plan) Trust Account and the Share Grant ESOP (Employee Stock Ownership Plan) Trust Account (650,136 shares as of June 30, 2026 and 662,640 shares as of March 31, 2026). The shares of the Company held by the BIP Trust Account and the Share Grant ESOP Trust Account are included in the number of treasury shares deducted in the calculation of average number of shares during each period. * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: No * Proper use of earnings forecasts, and other special matters (Caution regarding forward-looking statements and others) The earnings forecasts shown above are prepared based on the information available to us as of the date of this release. Actual results may be different from these forecasts due to various factors. For the assumptions related matters concerning the earnings forecasts, please refer to page 4.
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 1 - 1. Qualitative Information (1) Details of operating results During the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026), the Japanese economy picked up moderately due to improving employment and income environments. However, factors including prolonged geopolitical risks including the situation in the Middle East and fluctuations in the financial and capital markets mean that unpredictability of future outlook persists. The drugstore industry in which the Company operates also continues to face a challenging business environment, with new store openings by competitors across industries and business categories. This is also due to entrance into new areas aimed at commercia l area expansion, expansion of scale through M&A, competition with different industries that are becoming homogenous, as well as the narrowing of the commercial area of individual stores caused by all of these factors. In such an environment, we are promoting the following three key strategies in line with our basic approach of “Co- creating and sharing value.” These strategies have been formulated to achieve the Group management targets for the fiscal year ending March 31, 2031. (1) Differentiation strategy: Strengthen our unique platform business Aiming to continue being the company customers choose, we deliver new forms of value that we alone can provide in our business domain comprising the health and beauty fields. To that end, we are committed to enhancing customer convenience through seamless coordination between our drugstore and dispensing pharmacy businesses and driving the expansion of our unique domains including our own unique B-to-B business. In striving to achieve these aims, we leverag e our strengths including the attractive merchandise, services, value, and experiences we offer; our store network concentrated mainly in major metropolitan regions; and the closed (proprietary, exclusive, or unique) information accumulated from numerous customer contact points. (2) Investment strategy: Invest in business infrastructure for co-creating value Aiming to earn sustained profits, we are actively investing in the infrastructure that underpins our platform. In specific terms, we are undertaking proactive investment in systems to improve customer convenience and operational efficiency through digital technology, and to expand our business domains. We are boosting store openings in our priority areas mainly in major metropolitan regions, and opening of dispensing pharmacies next to drugstores. We are also advancing our “alliance concept” aimed at increasing our operational scale by promoting M&A activities, and are establishing a system that facilitates participation in the Group. As part of this effort, through And Company Co., Ltd., which is an intermediate holding company newly established in the previous fiscal year, we made UNIVERSAL DRUG CO., LTD., which operates 19 drugstores and dispensing pharmacies in Tokyo Metropolitan and Saitama Prefecture, a subsidiary on April 1, 2026, thereby expanding our store network. As a result of these efforts , as of June 30, 2026, the number of stores in Japan for the Group totaled 3,650 (including 1,123 dispensing pharmacies). In addition, we are expanding our overseas operations primarily in the ASEAN countries. At the same time, we are investing in human capital by developing a workplace environment that is easy for employees to work in and offers job satisfaction and motivation. We are also continually seeking to nurture professional, global human resources and increase employee engagement. (3) Social contribution and returning profit to society: Practice sustainable management that contributes to the enhancement of corporate value Aiming to practice sustainable management that helps to achieve our Management Philosophy and Group Vision, and to enhance corporate value, we are undertaking the following initiatives: make stable returns to stakeholders; enhance corporate governance; take action for the benefit of the environment and society (respond to climate change and support for community healthcare); and respond to the demands of the capital markets (practice ma nagement conscious of the cost of capital and consider our optimal capital structure).
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 2 - As a result, key operating results during the three months ended June 30, 2026 were as follows. Three months ended June 30, 2025 (Millions of yen) Three months ended June 30, 2026 (Millions of yen) Change (Millions of yen) Change (%) Net sales 273,643 289,348 15,705 5.7 Operating profit 19,808 21,487 1,679 8.5 Ordinary profit 20,981 22,822 1,841 8.8 Profit attributable to owners of parent 12,939 14,865 1,926 14.9 Overview of operating results by segment <Matsumotokiyoshi Group business> In the Matsumotokiyoshi Group business, the Matsumotokiyoshi Group is pursuing a differentiation strategy by leveraging 172.54 million customer contact points. This includes promoting measures to integrate its physical stores, apps, and e-commerce; enhancing customer convenience through seamless coordination between its drugstore and dispensing pharmacy businesses; and improving operational efficiency through digital technology. As for the private brand product lineup, the Matsumotokiyoshi Group has taken the first step toward evolving into a brand that delivers products offering newness and surprise by adopting the new brand vision “Go for WOW!” to mark the 10th anniversary of the “matsukiyo” brand. The Matsumotokiyoshi Group has also completely renewed product packaging with a new design and is gradually proceeding with their introduction. In addition, to increase the environmentally conscious private brand product ratio, the Matsumotokiyoshi Group has formulated new “Environmentally Conscious Product Guidelines” and is strengthening our sustainability initiatives, including starting to grant the original environmentally conscious logomark, the “FACE to EARTH Mark,” to products that meet the criteria. Furthermore, the Matsumotokiyoshi Group has continuously promoted the launch of joint products and exclusives as part of initiatives with manufacturers, including the launch of the new diet and daily care brand “SPICA,” the release of the new “matsukiyo MEDIVEIL+” series, and the rebranding of the matsukiyo LAB “SUSTAINABLE LOCABO Line” as the new brand “LO CA BOTIÉR.” The Matsumotokiyoshi Group is working to enhance profitability and maximize brand value by leveraging its enormous customer contact points and ability for highly precise analysis, developing new markets, and updating existing products. Additionally, the Matsumotokiyoshi Group is advancing its Investment Strategy, including boosting store openings in our priority areas mainly in major metropolitan regions, promoting the opening of dispensing pharmacies next to drugstores, and expanding our overseas operations by moving into new markets primarily in the ASEAN countries. As of June 30, 2026 , the number of stores in Japan for the Matsumotokiyoshi Group business totaled 1,992 (including 488 dispensing pharmacies). The number of stores overseas totaled 105, with 37 stores in Thailand, 24 stores in Taiwan, 21 stores in Vietnam, 19 stores in Hong Kong, one store in Guam, and three stores in Malaysia. <Cocokarafine Group business> In the Cocokarafine Group business, the Cocokarafine Group is engaging in efforts similar to those taken on by the Matsumotokiyoshi Group business under the key domestic strategies, including differentiation and investment strategies. For the current fiscal year, the Cocokarafine Group is promoting the reallocation of human capital and a scrap-and-build approach to further improve profitability. In addition, to further improve the efficiency of the Group’s operations, cocokarafine Healthcare Inc. merged with IWASAKI KOHKENDO Co., Ltd. effective April 1, 2026. As of June 30, 2026, the number of stores in Japan for the Cocokarafine Group business totaled 1,527 (including 538 dispensing pharmacies). <And Company business> In the And Company business , by combining Shinseidoyakkyoku co. ltd.’s strengths with the know -how and resources of the Group, we aim to expand our share in dominant areas and enhance customer convenience. To generate synergies, we are introducing private brand products and making preparations for system integration and the optimization of the products portfolio. Additionally, on April 1, 2026, we made UNIVERSAL DRUG CO., LTD. a subsidiary. As a result, as of June 30, 2026, the number of stores in Japan for And Company business totaled 131 (including 97 dispensing pharmacies).
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 3 - [Numbers of store openings and closures in Japan] Numbers of store openings and closures in Japan were as follows. (Number of stores) Number of stores as of March 31, 2026 Acquired as a subsidiary, etc. Openings Closings Number of stores as of June 30, 2026 Matsumotokiyoshi Group business 1,970 － 28 6 1,992 Cocokarafine Group business 1,536 － 8 17 1,527 And Company business 112 19 0 0 131 Total 3,618 19 36 23 3,650 <Management support business> In the management support business, the scope of the Company’s business activities has been expanded to include management support business, which refers to the purchase of products handled by the Company’s group companies, business management and control of the Company’s group companies, c ontracted back-office services, dividend income from the Company’s group companies, supply of products to companies other than the Company’s group companies, construction operations, advertising, etc. For the current fiscal year, we have newly included AppBrew Inc. in the scope of consolidation. Through the collaboration between “LIPS,” the cosmetics media platform operated by the company, and the Group’s customer base, we are working to deepen understanding of customers and advance marketing measures, thereby promoting the strengthening of our advertising business and platform strategy. As a result, operating results by segment were as follows: Three months ended June 30, 2025 (Millions of yen) Three months ended June 30, 2026 (Millions of yen) Change (Millions of yen) Change (%) Matsumotokiyoshi Group business Net sales 175,393 183,891 8,498 4.8 Segment profit 14,339 16,100 1,760 12.3 Cocokarafine Group business Net sales 97,496 97,453 (42) (0.0) Segment profit 4,989 5,436 447 9.0 And Company business Net sales － 6,181 6,181 － Segment profit － 12 12 － Management support business Net sales 184,656 216,330 31,673 17.2 Segment profit 17,445 43,060 25,615 146.8 Adjustments Net sales (183,902) (214,509) (30,606) － Segment profit (16,966) (43,122) (26,155) － Total Net sales 273,643 289,348 15,705 5.7 Segment profit 19,808 21,487 1,679 8.5
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 4 - (2) Details of financial position Total assets as of the end of the first quarter ended June 30, 2026 decreased by ¥18,878 million from the end of the previous fiscal year to ¥736,953 million. This was mainly due to decreases of ¥18,273 million in cash and deposits, ¥5,814 million in investment securities, and ¥3,510 million in accounts receivable – trade, despite an increase of ¥6,453 million in merchandise. Total liabilities decreased by ¥12,265 million to ¥199,114 million. This was mainly due to decreases of ¥12,236 million in income taxes payable and ¥2,496 million in provision for bonuses, despite increases of ¥1,294 million in other under non-current liabilities and ¥1,301 million in accounts payable – trade. Net assets decreased by ¥6,612 million to ¥537,838 million. This was mainly due to decreases of ¥10,544 million in capital surplus and ¥681 million in valuation difference on available -for-sale securities, despite an increase of ¥4,726 million in retained earnings. (3) Consolidated earnings forecasts and other forward-looking statements No changes have been made to the consolidated earnings forecasts for the fiscal year ending March 31, 202 7 that were announced on May 13, 2026.
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 5 - 2. Quarterly Consolidated Financial Statements and Significant Notes Thereto (1) Quarterly consolidated balance sheet (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 119,746 101,473 Accounts receivable - trade 74,520 71,009 Electronically recorded monetary claims － 13 Merchandise 159,996 166,449 Supplies 911 869 Other 47,073 46,575 Allowance for doubtful accounts (1,119) (1,113) Total current assets 401,128 385,277 Non-current assets Property, plant and equipment Land 50,439 50,252 Other 65,480 66,476 Total property, plant and equipment 115,919 116,729 Intangible assets Goodwill 98,308 100,175 Other 31,320 32,841 Total intangible assets 129,629 133,016 Investments and other assets Investment securities 28,974 23,159 Leasehold and guarantee deposits 62,161 62,359 Other 18,679 17,068 Allowance for doubtful accounts (660) (657) Total investments and other assets 109,154 101,930 Total non-current assets 354,703 351,675 Total assets 755,831 736,953
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 6 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 119,691 120,993 Income taxes payable 18,893 6,656 Short-term borrowings 1,880 1,516 Provision for bonuses 5,942 3,446 Provision for point card certificates 245 296 Contract liabilities 4,543 5,018 Asset retirement obligations 12 39 Other 30,486 30,065 Total current liabilities 181,696 168,031 Non-current liabilities Provision for retirement benefits for directors (and other officers) 342 － Provision for loss on guarantees 70 57 Provision for share awards 363 482 Provision for share awards for directors (and other officers) 39 39 Retirement benefit liability 462 530 Asset retirement obligations 15,278 15,551 Other 13,126 14,421 Total non-current liabilities 29,683 31,082 Total liabilities 211,380 199,114 Net assets Shareholders’ equity Share capital 22,051 22,051 Capital surplus 166,745 156,200 Retained earnings 374,508 379,235 Treasury shares (27,998) (28,175) Total shareholders’ equity 535,307 529,312 Accumulated other comprehensive income Valuation difference on available-for-sale securities 7,781 7,099 Foreign currency translation adjustment 391 460 Total accumulated other comprehensive income 8,172 7,560 Share acquisition rights 43 43 Non-controlling interests 928 922 Total net assets 544,451 537,838 Total liabilities and net assets 755,831 736,953
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 7 - (2)Quarterly consolidated statement of income and consolidated statement of comprehensive income Quarterly consolidated statement of income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 273,643 289,348 Cost of sales 179,360 185,973 Gross profit 94,283 103,375 Selling, general and administrative expenses Salaries and allowances 25,569 27,661 Provision for bonuses 3,142 3,309 Retirement benefit expenses 578 636 Rent expenses on land and buildings 19,584 20,413 Other 25,600 29,866 Total selling, general and administrative expenses 74,474 81,887 Operating profit 19,808 21,487 Non-operating income Interest income 43 32 Dividend income 166 173 Gain on receipt of donated non-current assets 105 140 Order processing commission 487 542 Research fee income 158 160 Other 242 307 Total non-operating income 1,204 1,357 Non-operating expenses Interest expenses 16 13 Foreign exchange losses 3 － Other 11 9 Total non-operating expenses 31 22 Ordinary profit 20,981 22,822 Extraordinary income Gain on sale of non-current assets 0 151 Total extraordinary income 0 151 Extraordinary losses Loss on sale of non-current assets 13 0 Loss on retirement of non–current assets 67 69 Loss on store closings 43 240 Impairment losses 89 115 Compensation for damage 65 － Total extraordinary losses 279 426 Profit before income taxes 20,701 22,547 Income taxes - current 5,646 5,730 Income taxes - deferred 2,040 1,860 Total income taxes 7,687 7,590 Profit 13,014 14,957 Profit attributable to non-controlling interests 75 91 Profit attributable to owners of parent 12,939 14,865
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 8 - Quarterly consolidated statement of comprehensive income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 13,014 14,957 Other comprehensive income Valuation difference on available-for-sale securities (765) (681) Foreign currency translation adjustment 305 69 Total other comprehensive income (460) (612) Comprehensive income 12,554 14,345 Comprehensive income attributable to Comprehensive income attributable to owners of parent 12,478 14,253 Comprehensive income attributable to non-controlling interests 75 91
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 9 - (3) Notes to quarterly consolidated financial statements (Notes on going concern assumption) Not applicable. (Changes in scope of consolidation or equity method) During the three months ended June 30 , 202 6, AppBrew Inc. , which had previously been a non -consolidated subsidiary, was included in the scope of consolidation due to its increased materiality. UNIVERSAL DRUG CO., LTD. was also included in the scope of consolidation due to the acquisition of its all shares on April 1, 2026, which resulted in its becoming a subsidiary. (Notes when there are significant changes in amounts of shareholders’ equity) (Acquisition of own shares) Pursuant to the resolution passed at the meeting of the Board of Directors held on May 13, 2026, the Company acquired 4,617,700 of its own shares. As a result of this acquisition, treasury shares increased by ¥10,745 million as of June 30, 2026. (Cancellation of treasury shares) Pursuant to the resolution passed at the meeting of the Board of Directors held on May 13, 2026, the Company cancelled 4,617,700 of its treasury shares effective May 29, 2026. As a result, capital surplus and treasury shares each decreased by ¥10,544 million as of June 30, 2026. (Quarterly consolidated balance sheet) Overdraft agreements The Company has concluded overdraft agreements with 13 counterparty financial institutions as of March 31, 2026 and with 12 counterparty financial institutions as of June 30, 2026 , for the efficient procurement of funds. The balance of unexecuted borrowings as of June 30, 2026 based on these agreements is as follows. (Millions of yen) As of March 31, 2026 As of June 30, 2026 Total amount of overdraft agreements 53,900 53,500 Less amounts executed – – Unexecuted balance 53,900 53,500 (Quarterly consolidated statement of cash flows) * The Company has not prepared a quarterly consolidated statement of cash flows for the three months ended June 30, 2026. Depreciation (including amortization of intangible assets excluding goodwill) and amortization of good will for the three months ended June 30, 2025 and the three months ended June 30, 2026 are as follows. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 3,963 4,381 Amortization of goodwill 1,618 1,793
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 10 - (Segment information) [Segment information] I Three months ended June 30, 2025 1. Disclosure of net sales and profit (loss) by reportable segment (Millions of yen) Matsumotokiyoshi Group business Cocokarafine Group business And Company business Management support business Total Adjustments (Note 1) Amounts in the quarterly consolidated statement of income (Note 2) Net sales Sales to external customers 175,208 97,482 － 952 273,643 － 273,643 Intersegment sales or transfers 184 13 － 183,704 183,902 (183,902) － Total 175,393 97,496 － 184,656 457,545 (183,902) 273,643 Segment profit 14,339 4,989 － 17,445 36,775 (16,966) 19,808 Notes: 1. The adjustment of negat ive ¥ 16,966 million for segment profit includes negative ¥ 16,966 million of intersegment transaction elimination. 2. Segment profit is adjusted with operating profit stated in the quarterly consolidated statement of income. 2. Disclosure of impairment loss on non-current assets or goodwill for each reportable segment (Significant impairment loss on non-current assets) The Group primarily regards stores as a base unit for its minimum cash flow -generating unit, while grouping idle assets according to each property unit. With regard to the asset groups whose operating profit has consistently been negative and asset groups for which the market prices fell considerably, such as land, the Group wrote off their carrying amount to the recoverable amount and recognized the amount of the write-off of ¥89 million as an impairment loss under extraordinary losses. The breakdown of the impairment loss is ¥22 million for the Matsumotokiyoshi Group business and ¥67 million for the Cocokarafine Group business.
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 11 - II Three months ended June 30, 2026 1. Disclosure of net sales and profit (loss) by reportable segment (Millions of yen) Matsumotokiyoshi Group business Cocokarafine Group business And Company business Management support business Total Adjustments (Note 1) Amounts in the quarterly consolidated statement of income (Note 2) Net sales Sales to external customers 183,746 97,430 6,181 1,990 289,348 － 289,348 Intersegment sales or transfers 145 23 0 214,339 214,509 (214,509) － Total 183,891 97,453 6,181 216,330 503,857 (214,509) 289,348 Segment profit 16,100 5,436 12 43,060 64,609 (43,122) 21,487 Notes: 1. The adjustme nt of negative ¥ 43,122 million for segment profit includes negative ¥ 43,122 million of intersegment transaction elimination. 2. Segment profit is adjusted with operating profit stated in the quarterly consolidated statement of income. 3. During the three months ended June 30, 2026, UNIVERSAL DRUG CO., LTD. was made a consolidated subsidiary. Consequently, the company has been included in the “And Company business” segment. In addition, following the inclusion of AppBrew Inc. in the scope of consolidation, the company has been included in the “Management support” segment. 2. Disclosure of impairment loss on non-current assets or goodwill for each reportable segment (Significant impairment loss on non-current assets) The Group primarily regards stores as a base unit for its minimum cash flow -generating unit, while grouping idle assets according to each property unit. With regard to the asset groups whose operating profit has consistently been negative and asset groups for which the market prices fell considerably, such as land, the Group wrote off their carrying amount to the recoverable amount and recognized the amount of the write-off of ¥115 million as an impairment loss under extraordinary losses. The breakdown of the impairment loss is ¥85 million for the Matsumotokiyoshi Group business and ¥30 million for the Cocokarafine Group business. 3. Disclosure of changes, etc. for each reportable segment During the previous fiscal year, the Group acquired all shares of Shinseidoyakkyoku co. ltd., making it a wholly owned subsidiary. Consequently, the “And Company business” has been added to the reportable segments. Segment information for the three months ended June 30, 2025 has been restated in accordance with the new segment classification.
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 12 - (Revenue recognition) Information on disaggregation of revenue from contracts with customers In information on disaggregation of revenue from contracts with customers, net sales in each reportable segment are disaggregated into revenue from contracts with customers and other income, and revenue from contracts with customers is further disaggregated into net sales from retail sales and other net sales. Three months ended June 30, 2025 (Millions of yen) Reportable segment Total Matsumotokiyoshi Group business Cocokarafine Group business And Company business Management support business Retail Medical and pharmaceutical products 51,538 40,349 － － 91,887 Cosmetics 64,604 30,462 － － 95,067 General merchandise 31,271 17,072 － － 48,343 Food 17,171 7,267 － － 24,439 Other (Note 1) 10,147 2,117 － 895 13,160 Revenue from contracts with customers 174,733 97,269 － 895 272,898 Other revenue (Note 2) 474 213 － 57 744 Sales to external customers 175,208 97,482 － 952 273,643 Notes: 1. Includes net sales from the wholesale business, net sales from advertising, etc. 2. Includes real estate rental income pursuant to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13). Three months ended June 30, 2026 (Millions of yen) Reportable segment Total Matsumotokiyoshi Group business Cocokarafine Group business And Company business Management support business Retail Medical and pharmaceutical products 53,402 40,638 4,109 － 98,150 Cosmetics 69,554 30,698 890 － 101,142 General merchandise 32,259 17,012 713 － 49,985 Food 17,660 6,769 415 － 24,845 Other (Note 1) 10,392 2,078 35 1,934 14,439 Revenue from contracts with customers 183,269 97,197 6,164 1,934 288,565 Other revenue (Note 2) 476 233 17 56 783 Sales to external customers 183,746 97,430 6,181 1,990 289,348 Notes: 1. Includes net sales from the wholesale business, net sales from advertising, etc. 2. Includes real estate rental income pursuant to the “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13).
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 13 - (Significant events after reporting period) Not applicable.
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MatsukiyoCocokara & Co. (code#3088) - Financial Results for the Three Months Ended June 30, 2026 - 14 - 3. Supplementary Information Net sales and purchases (1) Net sales by operating segment Net sales by segment for the three months ended June 30, 2026 are as follows: Segments Three months ended June 30, 2026 Amount (Millions of yen) Changes from the corresponding period of the previous fiscal year (%) Matsumotokiyoshi Group business 183,746 104.9 Cocokarafine Group business 97,430 99.9 And Company business 6,181 － Management support business 1,990 209.0 Total 289,348 105.7 Note: Intersegment transactions are eliminated. (2) Net sales by product Net sales by product for the three months ended June 30, 2026 are as follows: Products Three months ended June 30, 2026 Amount (Millions of yen) Changes from the corresponding period of the previous fiscal year (%) Medical and pharmaceutical products 98,150 106.8 Cosmetics 101,142 106.4 General merchandise 49,985 103.4 Food 24,845 101.7 Total 274,125 105.5 Note: Net sales by product do not include sales of the management support business. In addition, the amounts above do not include operating revenue (rent income from tenants and royalty income from franchisees). (3) Purchases by product Purchases by product for the three months ended June 30, 2026 are as follows: Products Three months ended June 30, 2026 Amount (Millions of yen) Changes from the corresponding period of the previous fiscal year (%) Medical and pharmaceutical products 58,812 106.3 Cosmetics 67,589 108.5 General merchandise 35,051 102.3 Food 21,641 103.8 Total 183,094 106.0 Note: Purchases by product do not include purchases of the management support business.