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1/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. EXPLANATORY MATERIAL ON FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED FEBRUARY 20, 2025 ASAHI CO., LTD. TSE Prime Market (Securities code: 3333) April 4, 2025
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2/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. CONTENTS 1 Financial Results for the Fiscal Year Ended Feb. 20, 2025 2 Plan for the Fiscal Year Ending Feb. 20, 2026
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3/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. CONTENTS 1 Financial Results for the Fiscal Year Ended Feb. 20, 2025 2 Plan for the Fiscal Year Ending Feb. 20, 2026
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4/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. Overview of Financial Results ■ Net sales steadily increased as a result of strengthening OMO*1 and CRM*2, and establishing a system for providing repair and maintenance, and other services ■ Profitability improved due to the strengthened three growth foundations*3 from previous fiscal years *1 OMO is the abbreviation for Online Merges with Offline. OMO is an approach that merges e-commerce and stores to offer customer experience value, enabling customers to obtain information, shop, and use such channels. *2 CRM is the abbreviation for customer relationship management. We are strengthening our customer relations by providing information via the official Cycle Base Asahi smartphone application to make their bicycle life more convenient and comfortable. *3 Three foundations of “enhancement and optimization of supply chain management,” “enhancement of digital and IT platforms,” and “enhancement of brand management” to be focused on in realizing the achievement of the Medium-Term Management Plan “VISION 2025.” Market changes Strengthen growth foundations Strategies responding to change ・ Growing demand for switching to electric-assist bicycles with enhanced performance features and high unit prices ・ Lengthening of the replacement cycle against a backdrop of a growing interest in saving money ・Strengthened three growth foundations ・Refined the SPA business model ・Strengthened OMO and CRM ・Improved profitability other than new bicycle sales
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5/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 (Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) has been applied since the beginning of the fiscal year ended Feb. 20, 2023. 71,398 74,712 78,076 81,593 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 82,000 84,000 2022年２月期 2023年２月期 2024年２月期 2025年２月期FY ended Feb. 20, 2022 FY ended Feb. 20, 2023 FY ended Feb. 20, 2024 FY ended Feb. 20, 2025 104.6% 104.5% 104.5% Changes in Net Sales of the Entire Company ■Achieving record highs in net sales consecutively since our listing in 2004 ■114.3% compared with the fiscal year ended Feb. 20, 2022, with average annual growth rate of 4.5% (Net sales: millions of yen)
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6/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 99.7% 102.6% 102.5% 103.3% 95.7% 96.9% 100.2% 98.9% 104.1% 105.9% 102.3% 104.4% 92.0% 94.0% 96.0% 98.0% 100.0% 102.0% 104.0% 106.0% 108.0% 2022年２月期 2023年２月期 2024年２月期※ 2025年2月期 売上高 客数 客単価Net sales Changes (Y/Y) in Net Sales, Number of Customers, and Sales per Customer of Existing Stores ■ Growth rate of net sales of existing stores steadily increased due to an increase in sales per customer with transition to electric-assist bicycles and other merchandise with enhanced performance features and high unit prices ■ For existing stores in the fiscal year ended Feb. 20, 2025, net sales 103.3%, number of customers 98.9%, sales per customer 104.4% Number of customers Sales per customer FY ended Feb. 20, 2022 FY ended Feb. 20, 2023 FY ended Feb. 20, 2024 FY ended Feb. 20, 2025 (Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) has been applied since the beginning of the fiscal year ended Feb. 20, 2023.
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7/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. FY ended Feb. 20, 2024 Results FY ended Feb. 20, 2025 Results Com- parison with planAmount Ratio to net sales Amount Ratio to net sales Y/Y change Major factors Net sales 78,076 100.0 81,593 100.0 104.5 Strengthened OMO and CRM Captured demand for repair and maintenance services Sales per customer increased (104.4% Y/Y) amid weak new bicycles sales 98.9 Gross profit 37,305 47.8 38,739 47.5 103.8 97.8 Operating profit 4,912 6.3 5,485 6.7 111.7 Control of SG&A expenses 99.7 Ordinary profit 5,192 6.7 5,626 6.9 108.4 97.0 Profit 3,113 4.0 3,555 4.4 114.2 96.6 Financial Results for the Fiscal Year Ended Feb. 20, 2025 ■ Net sales steadily increased as sales of electric-assist bicycles and repair and maintenance services increased ■ SG&A expenses have been optimized through proper personnel allocation and improved productivity ■ Sales and profits increased from the previous fiscal year (Millions of yen, %)
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8/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 ◎ Comparison with the plan for the first half and second half of the fiscal year ended Feb. 20, 2025 Fiscal Year Ended Feb. 20, 2025 Analysis in Comparison with the Plan ■ Net sales for the full year failed to meet the plan due to lower net sales in September, November, and February ■ Operating profit for the full year was at the same level as planned due to decreased net sales in the second half (Millions of yen) FY ended Feb. 20, 2025 Major factors First half Second half Full year Net sales Results 46,420 35,172 81,593 Factors accounting for decreased net sales in the second half September : Impact of typhoons November : Temporary inventory taken February : Impact of heavy snow Plan 46,000 36,500 82,500 Difference 420 (1,327) (906) Operating profit Results 4,763 722 5,485 Sales and profits increased compared with the plan through the first half Operating profit for the full year was at the same level as planned due to decreased net sales in the second half Plan 4,400 1,100 5,500 Difference 363 (377) (14)
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9/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. * Transport + Storage FY ended Feb. 20, 2024 Results FY ended Feb. 20, 2025 Results Amount Ratio to net sales Amount Ratio to net sales Y/Y change Factors SG&A expenses 32,393 41.5 33,253 40.8 102.7 Control of SG&A expense ratio Proper personnel allocation, improved productivity Breakdown Personnel expenses 15,595 20.0 15,880 19.5 101.8 Advertising expenses 715 0.9 794 1.0 111.2 Effective sales promotion, 75th anniversary measures Logistics expenses* 1,761 2.3 2,071 2.5 117.7 Increase in the number of bicycles sold, relocation of West Japan bases Depreciation 1,583 2.0 1,688 2.1 106.6 Opened new stores and renovated existing stores Other 12,737 16.3 12,817 15.7 100.6 Opened new stores Fees for cashless payment, electricity rates Capital expenditures 3,219 2,774 86.2 Core systems Results of SG&A Expenses and Capital Expenditures ■ Although personnel expenses increased due to the impact of wage increases, ratio to net sales decreased as a result of proper personnel allocation and improved productivity ■ Logistics expenses increased as a result of temporary parallel operations of new and old centers due to the relocation of West Japan Logistics Center (Millions of yen, %)
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10/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円】 4,912 1,669 -235 -861 5,485 2024年２月期 営業利益 販売の増加 販売の構成比変化 販管費の増減 2025年２月期 営業利益 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 増加 減少 合計 ・ Strong sales of electric- assist bicycles ・ Increase in repairs (Factors that increased expenses) ・ Wages increased ・ Fixed costs increased due to new store openings ・ Logistics expenses increased (Factors that decreased expenses) ・ Reviewed personnel allocation Analysis of Changes in Operating Profit ■ Gross profit increased as sales of electric-assist bicycles and repair and maintenance services increased ■ Although SG&A expenses increased due to wage increases, new store openings, and temporary parallel operations of logistics warehouses, operating profit increased by 573 million yen due to the optimization of personnel allocation (Operating profit: millions of yen) ・ Gross profit margin decreased 0.3% due to change in sales mix (235) (860) FY ended Feb. 20, 2024 operating profit Increase in sales Change in sales mix Changes in SG&A expenses FY ended Feb. 20, 2025 operating profit Increase Decrease Total
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11/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. FY ended Feb. 20, 2024 Results FY ended Feb. 20, 2025 Results Amount Retail share*1 Amount Retail share*1 Y/Y change Factors Stores 65,566 86.4 66,643 84.0 101.6 E-commerce share grew significantly due to strengthened OMO platformE- commerce 10,321 13.6 12,705 16.0 123.1 Retail (subtotal) 75,887 100.0 79,348 100.0 104.6 Sales per customer (104.4% year on year) Other*2 2,188 - 2,244 - 102.6 Total 78,076 - 81,593 - 104.5 Market share*3 24% - 25% - - *1 Ratio of stores and e-commerce in retail. *2 Royalty income, product sales to franchise stores and wholesale customers, out-of-store sales, etc. *3 Our own estimate: Market share = Asahi bicycles sold÷bicycles sold on the domestic market (sources: Trade Statistics of Japan and Current Survey of Production by the Ministry of Economy, Trade and Industry) Net Sales by Division ■ In stores, net sales repair and maintenance services increased ■ In e-commerce, net sales increased due to enhancing the content of website and securing popular merchandise (Millions of yen, %)
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12/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. Net Sales by Item ■ Sales of Asahi brand bicycles increased in the category of sports bicycles, children’s bicycles, and electric-assist bicycles ■ In the parts/other category, sales of repair and maintenance services increased even after the price revisions in the previous year FY ended Feb. 20, 2024 Results FY ended Feb. 20, 2025 Results Amount Share Amount Share Y/Y change Factors Ordinary bicycles 13,117 16.8 13,312 16.3 101.5 Sports bicycles 9,580 12.3 10,076 12.4 105.2 Strong sales of Asahi brand Children’s bicycles 8,320 10.7 8,632 10.6 103.8 Strengthened product lineup Electric-assist bicycles 21,148 27.1 23,278 28.5 110.1 Strong sales of Asahi brand’s ENERSYS Other bicycles 2,611 3.3 2,487 3.0 95.3 Parts/Other 23,298 29.8 23,805 29.2 102.2 Decrease: Special demand for helmets in the previous year Increase: Repair and maintenance services Total 78,076 100.0 81,593 100.0 104.5 Asahi brand net sales 36,947 47.3 39,763 48.7 107.6 Highly competitive product lineup offered to meet customers’ needs (Millions of yen, %)
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13/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 Results from Strengthening Growth Foundations (E-commerce Conversion Ratio and Asahi Brand Ratio) 8,300 10,321 12,705 11.4% 13.6% 16.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2023年２月期 2024年２月期 2025年２月期 EC売上高 EC化率E-commerce net sales E-commerce conversion ratio ■ Average annual growth rate of e-commerce net sales: 23.7% 32,996 36,947 39,76344.2% 47.3% 48.7% 36.0% 38.0% 40.0% 42.0% 44.0% 46.0% 48.0% 50.0% 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 2023年２月期 2024年２月期 2025年２月期 あさひブランド売上高 あさひブランド比率 ■ Average annual growth rate of Asahi brand net sales: 9.8% Customer convenience improved (Strengthened OMO and CRM) Pursued customers’ needs and high profitability (Created a wide variety of products) (Net sales: millions of yen) (Net sales: millions of yen) Asahi brand net sales Asahi brand ratio FYE Feb. 20, 2023 FYE Feb. 20, 2024 FYE Feb. 20, 2025 FYE Feb. 20, 2023 FYE Feb. 20, 2024 FYE Feb. 20, 2025 (Note) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) has been applied since the beginning of the fiscal year ended Feb. 20, 2023.
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14/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 Refining the SPA business model Partner that supports customers’ comfortable bicycle lifestyle Refining the SPA Business Model: Examples of Initiatives Planning Design Created through product planning by a project team of employees mainly in their 20s, based on customer feedback New strategic brand “COOSA”* (Products and services that appropriately meet customers’ needs) “People power” that provides a wide variety of services “Store network” throughout Japan ◎ Develop products that reflect customer feedback Development Procurement Quality control Sales Service Logistics ・ Improve delivery efficiency ・ Strengthen management of loading and unloading efficiency ・ Reduce environmental impact ◎ Relocate “West Japan Logistics Center,” our main logistics warehouse ◎ Reduce costs and strengthen the development foundations (Taiwan office) Aim to reduce procurement costs and strengthen development functions through process management of procurement partners and review of existing procurement routes * Origin of the brand name “COOSA” incorporates the following aspiration: we provide moments of interaction between people and bicycles, just like people interacting each other, hoping to bring bicycles that make communication even more fun for young people who value self-expression
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15/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 ・ Improved productivity due to increased e- commerce share by strengthening OMO ・ Improved customer convenience ・ Stores supporting repair and maintenance services EffectsStrengthening OMOMarket changes E-commerce strategies Store opening strategies Expand bases for in-store pickup through e-commerce ・Increased costs of store openings ・Addressing population decline & labor shortage ・Expansion of e-commerce market Improved profitability Break away from traditional store opening strategies Store Opening Strategy in Response to Market Changes ■ Responded to market changes such as increased costs of store openings and labor shortage ■ Profitability improved as a result of accelerating store openings in areas with high e-commerce usage rate, as part of our efforts to strengthen OMO
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16/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. As of Feb. 21, 2024 Number of stores opened As of Feb. 20, 2025 Number of stores* 533 +12 545 Of which, urban stores 9 +2 11 * Includes 17 franchise stores (6 stores in Osaka, 1 store in Hyogo, 4 stores in Kyoto, 4 stores in Mie, and 2 stores in Kagoshima) Promoted Expansion of Urban Format Osaka Honjonishi store, the second urban store in Kansai region (Kita-ku, Osaka) ■ List of urban stores Tokyo (9 stores): Kamiochiai store, Takadanobaba store, Minamisenju store, Hikifune store, Minamikamata store, Kiyosumishirakawa store, Honancho store, Ryogoku Kamezawa store, and Ikejiri store Osaka (2 stores): Naniwasaiwaicho store and Osaka Honjonishi store ◎ Progress of urban stores (Bases for in-store pickup through e-commerce sales, stores supporting demand for repairs) Increased awareness ⇒ number of customers increased ⇒ increase in profit Established as a second format
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17/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. CONTENTS 1 Financial Results for the Fiscal Year Ended Feb. 20, 2025 2 Plan for the Fiscal Year Ending Feb. 20, 2026
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18/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 VISION2025 Target value Net sales ¥85,000M Operating profit ¥6,800M Number of stores 560 E-commerce share 15% Market share 26% Plan for the Fiscal Year Ending Feb. 20, 2026 Plan for the fiscal year ending Feb. 20, 2026 Target value Evaluation* Key points ¥85,800M 〇 ¥5,620M × 561 〇 16.9% 〇 27% 〇 ◎ Revised plan for the final year of the Medium-Term Management Plan “VISION 2025” [Changes since the plan was formulated] ・Weakening of the yen ・Rising construction and labor costs ・Market size in terms of units has declined well below expectations Expected profit will be significantly lower due to the deviation from the assumptions * Evaluation 〇： VISION 2025 targets are expected to be achieved ×： VISION 2025 targets are not expected to be achieved
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19/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. Item FY ending Feb. 20, 2026 Market conditions Number of bicycle imports will gradually decline Replacement cycle will be prolonged Repair and maintenance services will be concentrated in specialty bicycle stores Initiatives Strengthen links between OMO and CRM ⇒ improve LTV* Improve expertise ⇒ increase in sales of repair and maintenance services and parts Net sales increase 105% year on year = sales per customer 100% x number of customers 105% Market conditions and initiatives Assumptions for the Plan for the Fiscal Year Ending Feb. 20, 2026 * Lifetime value, or LTV, is the total value provided throughout the customer’s full lifetime.
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20/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. FY ended Feb. 20, 2025 Results FY ending Feb. 20, 2026 Plan Amount Share Amount Share Y/Y change Factors Net sales 81,593 100.0 85,800 100.0 105.2 Strengthen links between OMO and CRM Increase sales of parts, repair and maintenance services Activities to reduce costs Gross profit 38,739 47.5 41,500 48.4 107.1 Operating profit 5,485 6.7 5,620 6.6 102.4 Improve human productivity Enhance digital and IT platforms Ordinary profit 5,626 6.9 5,750 6.7 102.2 Profit 3,555 4.4 3,650 4.3 102.6 Plan for the Fiscal Year Ending Feb. 20, 2026 ■ Net sales will increase by improving e-commerce share and expanding business domain other than new bicycle sales ■ Gross profit margin will improve through cost reduction initiatives for Asahi brand ■ In SG&A expenses, personnel expenses and system-related expenses will increase (Millions of yen, %)
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21/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. FY ended Feb. 20, 2025 Results FY ending Feb. 20, 2026 Plan Amount Retail share*1 Amount Retail share*1 Y/Y change Factors Stores 66,643 84.0 69,400 83.1 104.1 Strengthen links between OMO and CRM Increase sales of reused products, parts, and repair and maintenance services E- commerce 12,705 16.0 14,100 16.9 111.0 Retail (subtotal) 79,348 100.0 83,500 100.0 105.2 Other*2 2,244 - 2,300 - 102.5 Total 81,593 - 85,800 - 105.2 Market share*3 25% - 27% - - Net Sales by Division ■ In stores, promote the expansion of business domain with high customer needs other than new bicycle sales ■ In e-commerce sales, further promote OMO strategy by building a highly convenient website and using the store and logistics network *1 Ratio of stores and e-commerce in retail. *2 Royalty income, product sales to franchise stores and wholesale customers, out-of-store sales, etc. *3 Our own estimate: Market share = Asahi bicycles sold÷bicycles sold on the domestic market (sources: Trade Statistics of Japan and Current Survey of Production by the Ministry of Economy, Trade and Industry) (Millions of yen, %)
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22/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. FY ended Feb. 20, 2025 Results FY ending Feb. 20, 2026 Plan Amount Share Amount Share Y/Y change Ordinary bicycles 13,312 16.3 13,800 16.1 103.7 Sports bicycles 10,076 12.4 10,800 12.6 107.2 Children’s bicycles 8,632 10.6 9,000 10.5 104.3 Electric-assist bicycles 23,278 28.5 24,500 28.6 105.2 Other bicycles 2,487 3.0 2,600 3.0 104.5 Parts/Other 23,805 29.2 25,100 29.3 105.4 Total 81,593 100.0 85,800 100.0 105.2 Net Sales by Item ■ Number of bicycles sold will increase as the competitiveness of Asahi brand will improve in each item, particularly electric-assist bicycles ■ Sales of parts/other will increase by strengthening repair and maintenance systems (Millions of yen, %)
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23/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. FY ended Feb. 20,2025 Results FY ending Feb. 20, 2026 Plan Amount Ratio to net sales Amount Ratio to net sales Y/Y change Factors SG&A expenses 33,253 40.8 35,880 41.8 107.9 Breakdown Personnel expenses 15,880 19.5 17,223 20.1 108.5 Increase wages, enhance training of store staff Optimize personnel due to increased service revenue Advertising expenses 794 1.0 805 0.9 101.4 Continue to run more online advertisements Transport and storage expenses* 2,234 2.7 2,336 2.7 104.6 Increase in transport expenses due to increased number of bicycles sold Depreciation 1,688 2.1 1,880 2.2 111.4 Start system operation, open new stores Other 12,655 15.5 13,635 15.9 107.7 Increase in the number of stores, increase in utility expenses Capital expenditures 2,774 3,504 126.3 Growth foundations for stores and systems SG&A Expenses and Capital Expenditures ■ Although personnel expenses will increase due to wage increases for the second consecutive fiscal year, they will be optimized through proper personnel allocation and improved human productivity ■ The amount of other items will increase due to the impact of increased number of stores and reduction in subsidies for utility expenses * From the fiscal year ending Feb. 20, 2026, “logistics expenses” will be changed to “transport and storage expenses” due to a change in the standard of account item. (Millions of yen, %)
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24/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 2,035 726 -2,627 5,485 5,620 2025年２月期 営業利益 販売の増加 原価改善活動 販売の構成比変化 販管費の増減 2026年２月期 営業利益 (計画) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 増加 減少 合計(Operating profit: millions of yen) Analysis of Changes in Operating Profit ■ Gross profit will increase due to an increase in sales of electric-assist bicycles and categories other than new bicycle sales ■ Gross profit will increase due to the outcome of cost reduction activities and an increase in sales of categories with higherprofit other than new bicycle sales ■ In SG&A expenses, personnel expenses will increase due to wage increases and the optimization of personnel associated with expansion of services, as well as enhancement of training to store staff. Fixed costs will also increase due to an increase in the number of stores ・ Increase in sales of electric-assist bicycles ・ Increase in sales of parts, repair and maintenance services, and reused products ・ Improved margin due to cost reduction activities ・ Increase in sales of categories with higher profit such as parts as well as repair and maintenance services ・ Increase in personnel expenses due to wage increases, optimization of personnel associated with expansion of services, and enhancement of training ・ Increase in fixed costs due to an increase in the number of stores (2,626) FY ended Feb. 20, 2025 operating profit Increase in sales Cost improvement activities Change in sales mix Changes in SG&A expenses FY ending Feb. 20, 2026 operating profit (plan) Increase Decrease Total 2,034 725
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25/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 Medium-Term Management Plan “VISION 2025” As the most reliable partner for everyone’s bicycle lifestyle, we will support the happiness of people Our Vision Four Key Strategies Three Growth Foundations Strengthen our customer relationship management Refresh our existing physical and online stores Develop new store formats Expand our business domain Enhancement of digital and IT platforms Enhancement and optimization of supply chain management Enhancement of brand management Strengthen “Three Growth Foundations” in promoting “Four Key Strategies” Toward achieving VISION 2025, implement “Four Key Strategies” Bicycles for vibrant lives— everywhere together for a lifetime
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26/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. Everywhere together for a lifetime Purchase of/switching to a new bicycle Repair/inspection Purchase of parts Content Sending out information Use/enjoyPurchase * Concept of our service type ・Goods: Consumption of goods. A form of offering products and services such as bicycles, parts, accessories, and repair services. ・Services: Consumption of services. A form of experiential services such as travel business and touring that use bicycles. ・Experience: Consumption of experience. A form of services that allow people to share the excitement that can only be experienced at that time and place, referring to bicycle events such as bicycle riding instructional sessions and kids’ schools. Management Vision of the Medium-Term Management Plan “VISION 2025” [Initiative 3] Sending out information on goods, services, and experience* through comprehensive bicycle ride information website “Chiririn,” which proposes fun of bicycle life [Initiative 4] Expand customer base (Asahi membership) [Initiative 5] Provide information on special offers and services (official app) [Initiative 6] Strengthen service structure to respond to customer issues [Initiative 2] System of purchase and sale of bicycles (reuse business) [Initiative 1] Balance “safety and peace of mind” and “recycling-oriented society” Bicycles for vibrant lives—everywhere together for a lifetime Proposal tailored to customers’ life stages
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27/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 Adopt BAA for the purchase of ordinary bicycles for reuse Add safety standards at the time of purchase [Initiative 1]: Balance “Safety and Peace of Mind” and “Recycling-Oriented Society” ■ Create values based on growing awareness of reducing environmental impact and safety awareness following the revision of the Road Traffic Act ■ Promote existing initiatives such as the spread of bicycles affixed with BAA* mark, which indicates industry safety standards, and add purchase criteria for reuse Balance “safety and peace of mind” and “recycling-oriented society” * Bicycle Association (Japan) certification mark. BAA is the abbreviation of Bicycle Association Approved. This mark can be affixed to bicycles that have passed inspections of bicycle safety standards set by the Bicycle Association.These bicycle safety standards are based on the Japanese Industrial Standards (JIS), which are used as a basis for designing and manufacturing bicycles in Japan, and are even more stringent, with approximately 90 items subject to inspection. Value of safety and peace of mind as our top priority Handle bicycles that meet BAA only, and promote the spread of BAA (excluding some sports bicycles)
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28/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. Further expand our business scale by strengthening the integrated system of purchase ⇒ productization ⇒ sales No. of bicycles sold: approx. 150% Y/Y, No. of used bicycles purchased: approx. 180% Y/Y [Initiative 2]: System of Purchase and Sales of Bicycles (Expansion of Reuse Business) ■ Started purchasing ordinary bicycles, and now, we purchase all types of bicycles ■ Leverage our strengths, such as our nationwide store network and e-commerce, to strengthen the system of purchasing used bicycles and selling reused bicycles ■ Expand the support center and strengthen productization function of purchased bicycles Integrated management form purchase to sale Appraisal and purchase Sales Repair and productization
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29/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. Enhance the content of experiential events Comprehensive bicycle ride information website “Chiririn” Bicycle riding classes for children Kids’ Schools Use of digital tools × Useful information × Content on bicycles [Initiatives 3, 4, and 5]: Strengthen Our Customer Relationship Management (CRM) ■ Improve push notifications through linkage with Asahi official app ■ Provide various values on goods, services, and experience through the enhancement of our comprehensive bicycle ride information website “Chiririn,” which proposes fun of bicycle life Status of app use Number of Cycle Mate subscribers FY ended Feb. 20, 2025 Results Number of members: approx. 130% year on year Number of monthly users: approx. 140% year on year Approx. 120% year on year
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30/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 【単位：百万円、％】 Train specialists with repair skills, develop service provision systems [Initiative 6]: Strengthen Service Structure to Respond to Customer Issues ■ Respond to the increased demand for repairs ■ Respond to the increased customers’ awareness of safety
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31/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. * Includes 17 franchise stores (as of Feb. 20, 2026) (6 stores in Osaka, 1 store in Hyogo, 4 stores in Kyoto, 4 stores in Mie, and 2 stores in Kagoshima) As of Feb. 21, 2025 Number of stores to open As of Feb. 20, 2026 Number of stores* 545 +16 561 Of which, urban stores 11 +4 15 Investment Plan ■ Accelerate investment in foundations that support future growth (digital and IT platforms, logistics infrastructure, stores) ◎ Breakdown of major capital investments ・ Investment in growth foundations: DX, infrastructure development, system investment (logistics, CRM) ・ Investment in maintenance and renewal: Store renewal and relocation for revitalization of existing stores (18 stores, 1 store increase from the previous fiscal year) ・ Investment in increasing profits: 16 new store openings per year, including 4 urban stores
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32/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. 28 28 28 45 50 50 20 25 30 35 40 45 50 55 2021年２月期 2022年２月期 2023年２月期 2024年２月期 2025年２月期 2026年２月期 (計画) FY ended Feb. 20, 2021 FY ended Feb. 20, 2022 FY ended Feb. 20, 2023 FY ended Feb. 20, 2024 FY ended Feb. 20, 2025 FY ending Feb. 20, 2026 (Plan) ・ Continue positive investments in foundations that support profitability and future growth ・ Continue shareholder return with a target dividend payout ratio of 35% to increase dividends based on increased sales and profits Management That is Conscious of Cost of Capital and Stock Price ■ Dividend per share will be 50 yen to strengthen investment in growth foundations ■ For the fiscal year ended Feb. 20, 2025, ROE was 9.3% (dividend payout ratio of 36.6%) against cost of shareholders’ equity (considered to be 5-6%) (Dividend per share: yen)
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33/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved. • The financial results forecast and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that are deemed reasonable, and do not constitute a promise that the Company will achieve them. Actual results may differ materially from these statements due to various factors. • The reader should note that internal factors in the Company and external factors such as changes in the business environment surrounding the Company may have a direct or indirect impact on the Company’s performance and that the forecasts contained in this document may change. • Please refrain from copying or reproducing this document. Disclaimer
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34/34Copyright © 2025 ASAHI CO.,LTD. All Rights Reserved.