Interim report
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Consolidated Financial Results for the Fiscal Year Ended July 31, 2025 [Japanese GAAP] September 12, 2025 Company name: JM HOLDINGS CO., LTD. Stock exchange listing: Tokyo Stock Exchange Code number: 3539 URL: https://jm-holdings.co.jp/ Representative: Masahiro Sakai, President Contact: Kaori Maeda, Managing Director, General Manager of Administration Division Phone: +81-3-6453-6810 Scheduled date of annual general shareholders’ meeting: October 29, 2025 Scheduled date of commencing dividend payments: October 30, 2025 Scheduled date of filing securities report: October 30, 2025 Availability of supplementary explanatory materials on annual financial results: Available Schedule of annual financial results briefing session: Scheduled (for institutional investors and analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Fiscal Y ear Ended July 31, 2025 (August 1, 2024 - July 31, 2025) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Million yen % Million yen % Million yen % Million yen % July 31, 2025 186,207 8.1 10,048 9.8 10,144 8.9 6,457 18.2 July 31, 2024 172,331 11.3 9,149 26.3 9,318 25.6 5,465 23.7 (Note) Comprehensive income: Fiscal year ended July 31, 2025: ¥6,392 million [13.8%] Fiscal year ended July 31, 2024: ¥5,619 million [26.6%] Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Fiscal year ended Yen Yen % % % July 31, 2025 252.05 – 14.6 14.1 5.4 July 31, 2024 204.86 – 13.2 13.6 5.3 (Reference) Investment profit (loss) on equity method: Fiscal year ended July 31, 2025: ¥– million Fiscal year ended July 31, 2024: ¥– million (2) Consolidated Financial Position Total assets Net assets Equity-to-asset ratio Net assets per share Million yen Million yen % Yen As of July 31, 2025 72,721 45,347 62.1 1,771.26 As of July 31, 2024 71,359 43,768 61.1 1,633.61 (Reference) Equity: As of July 31, 2025: ¥45,129 million As of July 31, 2024: ¥43,582 million (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended Million yen Million yen Million yen Million yen July 31, 2025 6,641 (6,424) (5,718) 12,396 July 31, 2024 9,660 (5,342) (2,239) 17,897 Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.
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2. Dividends Annual dividends Total dividend paid (annual) Payout ratio (consolidated) Ratio of total amount of dividends to net assets (consolidated) 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal Year-end Total Yen Yen Yen Yen Yen Million yen % % Fiscal year ended July 31, 2024 – 20.00 – 22.00 42.00 1,120 20.5 2.7 Fiscal year ended July 31, 2025 – 22.00 – 24.00 46.00 1,172 18.3 2.7 Fiscal year ending July 31, 2026 (Forecast) – 12.00 – 12.00 24.00 17.5 * At a Board of Directors meeting held on September 12, 2025, it was resolved to conduct a stock split at a ratio of two shares for each common share of the Company, effective November 1, 2025. The annual dividend per share for the fiscal year ending July 31, 2026 (forecast) is stated after taking into account the said stock split. If the stock split is not taken into account, the annual dividend per share for the fiscal year ending July 31, 2026 (forecast) will be ¥48. 3. Consolidated Financial Results Forecast for the Fiscal Year Ending July 31, 2026 (August 1, 2025 - July 31, 2026) (% 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 196,000 5.3 10,900 8.5 11,000 8.4 7,000 8.4 137.37 * The basic earnings per share for the fiscal year ending July 31, 2026 (forecast) is stated after taking into account the stock split noted in “2. Dividends.” If the stock split is not taken into account, the basic earnings per share for the fiscal year ending July 31, 2026 (forecast) will be ¥274.74.
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* Notes: (1) Significant changes in the scope of consolidation during the fiscal year: None Newly included: – Excluded: – (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued and outstanding shares (common shares) 1) Total number of issued and outstanding shares at the end of the fiscal year (including treasury shares): July 31, 2025: 25,479,500 shares July 31, 2024: 26,679,500 shares 2) Total number of treasury shares at the end of the fiscal year: July 31, 2025: 559 shares July 31, 2024: 559 shares 3) Average number of shares during the fiscal year: Fiscal year ended July 31, 2025: 25,620,310 shares Fiscal year ended July 31, 2024: 26,679,077 shares * These consolidated financial results are outside the scope of audit by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes Earnings forecasts and other forward-looking statements herein are based on the information currently available to the Company and certain assumptions that the Company regards as reasonable, and do not represent a commitment by the Company that they will be achieved. Actual earnings results, etc. may differ significantly from them due to wide- ranging factors. For the assumptions used for the financial results forecasts and precautions on the use of these forecasts, please refer to “1. Overview of Operating Results, etc., (4) Future Outlook” on page 5 of the attachment.
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1 Table of Contents - Attachments 1. Overview of Operating Results, etc. ........................................................................................................ 2 (1) Overview of Operating Results for the Fiscal Year under Review ...................................................... 2 (2) Overview of Financial Position for the Fiscal Year under Review ...................................................... 4 (3) Overview of Cash Flows for the Fiscal Year under Review ................................................................ 4 (4) Future Outlook ..................................................................................................................................... 5 2. Basic Policy regarding Selection of Accounting Standards ..................................................................... 5 3. Consolidated Financial Statements and Principal Notes ......................................................................... 6 (1) Consolidated Balance Sheets .............................................................................................................. 6 (2) Consolidated Statements of Income and Comprehensive Income ......................................................... 8 Consolidated Statements of Income ................................................................................................... 8 Consolidated Statements of Comprehensive Income ..................................................................... 9 (3) Consolidated Statements of Changes in Equity ................................................................................. 10 (4) Consolidated Statements of Cash Flows ........................................................................................... 12 (5) Notes to Consolidated Financial Statements ......................................................................................... 13 (Notes on going concern assumption) ........................................................................................... 13 (Change in presentation method) .................................................................................................. 13 (Segment information, etc.) .......................................................................................................... 13 (Per share information) ................................................................................................................. 17 (Significant subsequent events) .................................................................................................... 17
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2 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Fiscal Year under Review In the fiscal year ended July 31, 2025, the Japanese economy saw gradual progress with improvement in the employment and income environment. However, the economic outlook remains uncertain due to factors such as the prolonged conflict in Ukraine, the increased tensions in the Middle East, the economic policy of the United States, and the slowdown of the Chinese economy. In the food retail industry, the business environment remained severe as consumers had an even more firmly rooted savings-oriented and low-cost mindset due to increases in various costs such as labor costs and transportation costs, as well as continuous rises in food prices due to factors such as the depreciation of the yen and soaring raw material prices. Regarding the operating results for the fiscal year ended July 31, 2025, thanks to favorable performance at existing stores of our supermarket business and restaurants business, as well as contribution from the sales of 11 new stores, net sales increased by ¥13,875 million (8.1%) year on year to ¥186,207 million, operating profit increased by ¥899 million (9.8%) year on year to ¥10,048 million, ordinary profit increased by ¥825 million (8.9%) year on year to ¥10,144 million, and profit attributable to owners of parent increased by ¥992 million (18.2%) year on year to ¥6,457 million. The Group’s situation for each business segment is as follows: (Supermarket Business) The supermarket business comprises six store types, fruit and vegetable wholesaling business, and rice retailer. (a) Stores operated by JAPAN MEAT CO., LTD. in large commercial facilities: “Japan Meat Seisenkan” We operate 17 stores at JOYFUL HONDA, etc., which are large commercial facilities with a wide commercial sphere and strong ability to attract customers. We strive to build a selling area where people can enjoy shopping mainly with their families, by having the meat section at the core while emphasizing our specialty in fruits and vegetables, fresh fish, and side dishes, and filling shelves with products that are widely supported by customers. (b) Standalone stores operated by JAPAN MEAT CO., LTD. in the Kanto region: “Japan Meat Oroshiuri Ichiba,” “POWER MART” and “Shokuniku Oroshiuri Center MEAT Meet” Regarding roadside stores in the Kanto region, we have 14 Japan Meat Oroshiuri Ichiba stores, three POWER MART stores, and four Shokuniku Oroshiuri Center MEAT Meet stores. These standalone stores are a miniaturized version of Japan Meat Seisenkan. We are striving for differentiation through our product lineup and product capabilities, by capitalizing on our stores’ distinct characteristic of emphasizing our specialty in fresh food. (c) Urban-style wholesale stores operated by HANAMASA CO., LTD.: “Niku no Hanamasa” We operate 64 stores of wholesale supermarkets such as Niku no Hanamasa mainly in Tokyo. In addition to selling products in large volumes so that professionals working in restaurants can use our stores for their daily purchase of ingredients, we also develop and provide products of our private brand The Professional Way to clarify our distinct characteristics. At the same time, we provide a product lineup that can meet the demand for groceries from ordinary household customers. In this way, we operate “urban-style wholesale stores” differentiated from ordinary supermarkets. (d) Supermarket Mirabel, a community-based food supermarket operated by Supermarket Mirabel, K.K. We operate 12 food supermarkets, Supermarket Mirabel stores mainly in the northern part of Tokyo. Supermarket Mirabel, K.K. operates its stores with close ties to the community, selling mainly fresh produce at reasonable prices. The Company expects to demonstrate a synergetic effect in terms of expansion of the store network in the northern part of Tokyo, product procurement, and sales know-how. (e) Fruit and vegetable wholesaling business operated by JM Seika Co., Ltd. JM Seika Co., Ltd. operates a fruit and vegetable wholesaling business in Mito City, Ibaraki Prefecture. They support the Group’s fruit and vegetable department’s product procurement, contributing to enhancing freshness, affordability, and product lineup of fruits and vegetables and ensuring stable product supply.
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3 (f) Rice retailer operated by Yanagida Shoten Co., Ltd. Yanagida Shoten Co., Ltd. operates rice retail business in Higashi-Ibaraki County, Ibaraki Prefecture. Enhancing the quality, price, and lineup of the rice we sell within the Group leads to stable procurement of products and contributes to increased sales volume. As for the status of stores, we opened Niku no Hanamasa PLUS Kujo Ekimae Store (Osaka City, Osaka) and Niku no Hanamasa PLUS Daikokucho Store (Osaka City, Osaka) in October 2024, Niku no Hanamasa PLUS Horie Store (Osaka City, Osaka) and Niku no Hanamasa PLUS Kawasaki Store (Kawasaki City, Kanagawa Prefecture) in January 2025, Niku no Hanamasa PLUS Nipponbashi Store (Osaka City, Osaka) in February 2025, Niku no Hanamasa PLUS Kyoubashi Store (Osaka City, Osaka) and Niku no Hanamasa PLUS Chiyozaki Store (Osaka City, Osaka) in March 2025, Japan Meat Oroshiuri Ichiba Kasukabe Store (Kasukabe City, Saitama Prefecture) in June 2025, and Niku no Hanamasa PLUS Warabi Store (Warabi City, Saitama Prefecture) and Niku no Hanamasa PLUS Abiko Store (Osaka City, Osaka) in July 2025. As a result, the number of stores in the supermarket business as of the end of the fiscal year ended July 31, 2025 was 114. Regarding the operating results of the supermarket business for the fiscal year ended July 31, 2025, net sales increased by ¥13,805 million (8.2%) year on year to ¥181,497 million, and segment profit (operating profit) increased by ¥985 million (11.5%) year on year to ¥9,568 million. (Others) The Others segment consists of the restaurants business, the event-related business, the outsourcing business, and the facilities operation and management business. (a) Restaurants business operated by Japandelika Co., Ltd.: “Manyutei” In the restaurants business, we mainly operate “Yakinikuya Manyutei.” We have endeavored to provide fresh, high-quality dishes at a low price by capitalizing on our strengths: our meat procurement capabilities and know-how. Furthermore, in accordance with the basic policy of providing delicious products and comfortable dining spaces, we have promoted the development of new dishes, differentiated ourselves from other restaurants, and worked to create restaurants where customers can have an enjoyable time while dining. As for the status of stores, we opened Oshiage store (Sumida City, Tokyo) of Yakinikuya Manyutei in November 2024. As a result, the number of stores in the restaurants business as of the end of the fiscal year ended July 31, 2025 was 19. (b) Event-related business featuring events such as the “Niku Festival” organized by AATJ, INC. In the event-related business, we organize food-related events such as the Niku Festival, and are engaged in the production, operation and such of domestic and overseas events. As one of the activities during the fiscal year ended July 31, 2025, we held “Niku Festival 2025 TOKYO Steak King Championship” (Koto City, Tokyo). We will continue to disseminate the appeal of meat and the local food culture. (c) Outsourcing business operated by Active Marketing System Co., Ltd. In the outsourcing business, we provide contracted and agent services for cash register operations in the supermarket industry. Through our unique know-how based on our operational experience with supermarkets, we will provide high-quality services that meet the needs of our customers. (d) Shopping center operated and managed by Nico Mall Co., Ltd.: “Nico Mall” In the facilities operation and management business, we operate and manage the shopping center Nico Mall in Ota City, Gunma Prefecture. Nico Mall has various specialized tenants, including the Japan Meat Seisenkan Nitta Store operated by JAPAN MEAT CO., LTD., and is patronized by locals who view it as an indispensable form of living infrastructure.
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4 Regarding the operating results of the Others segment for the fiscal year ended July 31, 2025, net sales increased by ¥445 million (6.3%) year on year to ¥7,480 million, and segment profit (operating profit) increased by ¥71 million (13.6%) year on year to ¥596 million. (2) Overview of Financial Position for the Fiscal Year under Review (Assets, Liabilities and Net Assets) Total assets at the end of the fiscal year ended July 31, 2025 increased by ¥ 1,362 million from the end of the previous fiscal year to ¥72,721 million. Current assets decreased by ¥ 1,079 million and non-current assets increased by ¥2,441 million. The main factor was a decrease of ¥4,100 million in cash and deposits, which was offset by an increase of ¥2,209 million in inventories, an increase of ¥2,167 million in property, plant and equipment, and an increase of ¥341 million in intangible assets. Total liabilities decreased by ¥216 million from the end of the previous fiscal year to ¥27,374 million. The main factors were a decrease of ¥387 million in current liabilities and a decrease of ¥294 million in long-term borrowings, which were offset by an increase of ¥583 million in asset retirement obligations. Total net assets increased by ¥1,578 million from the end of the previous fiscal year to ¥45,347 million. The main factor was an increase of ¥1,644 million in retained earnings, owing to factors such as the recording of profit attributable to owners of parent. (3) Overview of Cash Flows for the Fiscal Year under Review Cash and cash equivalents (hereinafter the “funds”) as of July 31, 2025 was ¥12,396 million (¥17,897 million as of July 31, 2024). The status of cash flows as of July 31, 2025 and their contributing factors are as follows. (Cash flows from operating activities) Funds provided by operating activities for the fiscal year ended July 31, 2025 amounted to ¥6,641 million (a year-on-year decrease of 31.2%). This was mainly due to depreciation of ¥2,534 million, amortization of goodwill of ¥205 million, impairment losses of ¥277 million, and profit before income taxes of ¥9,866 million (a year-on-year increase of 13.4%), which offset income taxes paid of ¥4,079 million and an increase in inventories of ¥2,209 million. (Cash flows from investing activities) Funds used in investing activities for the fiscal year ended July 31, 2025 amounted to ¥6,424 million (a year- on-year increase of 20.2%). This was mainly due to purchase of property, plant and equipment of ¥4,026 million (a year-on-year increase of 43.6%) and a decrease of ¥1,400 million in funds caused by the difference between payments into time deposits and proceeds from withdrawal of time deposits. (Cash flows from financing activities) Funds used in financing activities for the fiscal year ended July 31, 2025 amounted to ¥5,718 million (a year- on-year increase of 155.4%). This was mainly due to purchase of treasury shares of ¥3,666 million, dividends paid of ¥1,147 million (a year-on-year increase of 7.5%), repayments of long-term borrowings of ¥753 million (a year-on-year decrease of 2.2%), and repayments of lease liabilities of ¥451 million (a year-on-year increase of 7.9%).
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5 (4) Future Outlook As for the future outlook, the Group has set the assumption of net sales in existing stores of the supermarket business at 100.4% year on year. In order to achieve this, we will continuously take measures to increase the number of products purchased by implementing “ijochihanbai,” our unique sales method, and create selling spaces that pursue our specialty in fresh food. In addition, by taking into account the projected contribution to sales of the 11 stores that opened in the fiscal year ended July 31, 2025, as well as one supermarket scheduled to open in the fiscal year ending July 31, 2026, the Group projects net sales of ¥196,000 million (a year-on-year increase of 5.3%), operating profit of ¥10,900 million (a year-on-year increase of 8.5%), ordinary profit of ¥11,000 million (a year-on-year increase of 8.4%), and profit attributable to owners of parent of ¥7,000 million (a year-on-year increase of 8.4%). 2. Basic Policy regarding Selection of Accounting Standards With regard to accounting standards, the Group has adopted Japanese GAAP to ensure comparability with other companies in the same industry in Japan.
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6 3. Consolidated Financial Statements and Principal Notes (1) Consolidated Balance Sheets (Million yen) As of July 31, 2024 As of July 31, 2025 Assets Current assets Cash and deposits 22,405 18,305 Accounts receivable - trade 3,544 4,216 Inventories 7,631 9,841 Other 2,422 2,562 Allowance for doubtful accounts (1) (1) Total current assets 36,002 34,923 Non-current assets Property, plant and equipment Buildings and structures, net 14,818 16,775 Machinery, equipment and vehicles, net 1,283 1,397 Tools, furniture and fixtures, net 887 998 Land 6,315 6,315 Leased assets, net 1,074 1,007 Construction in progress 161 213 Total property, plant and equipment 24,539 26,706 Intangible assets Goodwill 1,487 1,282 Other 782 1,328 Total intangible assets 2,270 2,611 Investments and other assets Investment securities 1,201 1,020 Leasehold and guarantee deposits 5,138 5,344 Deferred tax assets 1,188 1,261 Other 1,031 867 Allowance for doubtful accounts (13) (13) Total investments and other assets 8,547 8,480 Total non-current assets 35,357 37,798 Total assets 71,359 72,721
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7 (Million yen) As of July 31, 2024 As of July 31, 2025 Liabilities Current liabilities Accounts payable - trade 8,452 9,013 Short-term borrowings 3,753 3,553 Current portion of long-term borrowings 695 736 Lease liabilities 403 418 Accounts payable - other 3,661 3,489 Income taxes payable 2,242 1,678 Provision for bonuses 406 458 Other 1,448 1,328 Total current liabilities 21,063 20,676 Non-current liabilities Long-term borrowings 3,625 3,330 Lease liabilities 906 801 Retirement benefit liability 688 691 Asset retirement obligations 641 1,224 Other 665 649 Total non-current liabilities 6,527 6,698 Total liabilities 27,590 27,374 Net assets Shareholders’ equity Share capital 2,229 2,229 Capital surplus 2,399 2,399 Retained earnings 38,674 40,318 Treasury shares (1) (1) Total shareholders’ equity 43,301 44,946 Accumulated other comprehensive income Valuation difference on available-for-sale securities 278 152 Remeasurements of defined benefit plans 1 31 Total accumulated other comprehensive income 280 183 Non-controlling interests 185 217 Total net assets 43,768 45,347 Total liabilities and net assets 71,359 72,721
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8 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Million yen) For the fiscal year ended July 31, 2024 For the fiscal year ended July 31, 2025 Net sales 172,331 186,207 Cost of sales 123,122 132,767 Gross profit 49,209 53,440 Selling, general and administrative expenses 40,060 43,391 Operating profit 9,149 10,048 Non-operating income Royalty income 20 20 Dividend income 14 17 Commission income 101 32 Surrender value of insurance policies 13 25 Other 80 66 Total non-operating income 231 162 Non-operating expenses Interest expenses 42 58 Other 18 8 Total non-operating expenses 61 66 Ordinary profit 9,318 10,144 Extraordinary income Extraordinary losses Impairment losses 616 277 Total extraordinary losses 616 277 Profit before income taxes 8,701 9,866 Income taxes - current 3,664 3,460 Income taxes - deferred (450) (83) Total income taxes 3,214 3,376 Profit 5,487 6,489 Profit attributable to non-controlling interests 22 32 Profit attributable to owners of parent 5,465 6,457
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9 Consolidated Statements of Comprehensive Income (Million yen) For the fiscal year ended July 31, 2024 For the fiscal year ended July 31, 2025 Profit 5,487 6,489 Other comprehensive income Valuation difference on available-for-sale securities 110 (126) Remeasurements of defined benefit plans, net of tax 21 29 Total other comprehensive income 131 (97) Comprehensive income 5,619 6,392 Comprehensive income attributable to Comprehensive income attributable to owners of parent 5,597 6,360 Comprehensive income attributable to non-controlling interests 22 32
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10 (3) Consolidated Statements of Changes in Equity Fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 2,229 2,377 34,275 (0) 38,881 Changes during period Dividends of surplus (1,067) (1,067) Profit attributable to owners of parent 5,465 5,465 Purchase of treasury shares (0) (0) Cancellation of treasury shares – Change in ownership interest of parent due to transactions with non-controlling interests 22 22 Net changes in items other than shareholders’ equity Total changes during period – 22 4,398 (0) 4,420 Balance at end of period 2,229 2,399 38,674 (1) 43,301 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available-for- sale securities Remeasure- ments of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 168 (19) 149 385 39,416 Changes during period Dividends of surplus (1,067) Profit attributable to owners of parent 5,465 Purchase of treasury shares (0) Cancellation of treasury shares – Change in ownership interest of parent due to transactions with non-controlling interests 22 Net changes in items other than shareholders’ equity 110 21 131 (199) (68) Total changes during period 110 21 131 (199) 4,352 Balance at end of period 278 1 280 185 43,768
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11 Fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) (Million yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Balance at beginning of period 2,229 2,399 38,674 (1) 43,301 Changes during period Dividends of surplus (1,147) (1,147) Profit attributable to owners of parent 6,457 6,457 Purchase of treasury shares (3,666) (3,666) Cancellation of treasury shares (3,666) 3,666 – Change in ownership interest of parent due to transactions with non-controlling interests – Net changes in items other than shareholders’ equity Total changes during period – – 1,644 – 1,644 Balance at end of period 2,229 2,399 40,318 (1) 44,946 Accumulated other comprehensive income Non- controlling interests Total net assets Valuation difference on available-for- sale securities Remeasure- ments of defined benefit plans Total accumulated other comprehensive income Balance at beginning of period 278 1 280 185 43,768 Changes during period Dividends of surplus (1,147) Profit attributable to owners of parent 6,457 Purchase of treasury shares (3,666) Cancellation of treasury shares – Change in ownership interest of parent due to transactions with non-controlling interests – Net changes in items other than shareholders’ equity (126) 29 (97) 31 (65) Total changes during period (126) 29 (97) 31 1,578 Balance at end of period 152 31 183 217 45,347
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12 (4) Consolidated Statements of Cash Flows (Million yen) For the fiscal year ended July 31, 2024 For the fiscal year ended July 31, 2025 Cash flows from operating activities Profit before income taxes 8,701 9,866 Depreciation 2,224 2,534 Impairment losses 616 277 Amortization of goodwill 262 205 Decrease (increase) in trade receivables (95) (672) Decrease (increase) in inventories (371) (2,209) Increase (decrease) in trade payables 385 560 Decrease (increase) in deposits paid 57 41 Increase (decrease) in accounts payable - other (25) (47) Increase (decrease) in provision for bonuses (0) 51 Increase (decrease) in retirement benefit liability 25 3 Other, net 434 121 Subtotal 12,215 10,732 Interest and dividends received 16 29 Interest paid (25) (42) Income taxes paid (2,927) (4,079) Income taxes refund 381 1 Net cash provided by (used in) operating activities 9,660 6,641 Cash flows from investing activities Payments into time deposits (6,315) (7,964) Proceeds from withdrawal of time deposits 3,827 6,564 Purchase of property, plant and equipment (2,803) (4,026) Proceeds from sale of property, plant and equipment and intangible assets 22 0 Payments of leasehold and guarantee deposits (196) (418) Proceeds from refund of leasehold and guarantee deposits 231 207 Other, net (108) (787) Net cash provided by (used in) investing activities (5,342) (6,424) Cash flows from financing activities Net increase (decrease) in short-term borrowings 217 (200) Proceeds from long-term borrowings – 500 Repayments of long-term borrowings (771) (753) Purchase of treasury shares (0) (3,666) Repayments of lease liabilities (418) (451) Dividends paid (1,066) (1,147) Purchase of shares of subsidiaries not resulting in change in scope of consolidation (199) – Net cash provided by (used in) financing activities (2,239) (5,718) Net increase (decrease) in cash and cash equivalents 2,078 (5,500) Cash and cash equivalents at beginning of period 15,819 17,897 Cash and cash equivalents at end of period 17,897 12,396
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13 (5) Notes to Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Change in presentation method) (Consolidated Statements of Income) In the fiscal year ended July 31, 2024, “dividend income” and “surrender value of insurance policies,” which were included in and reported under “other” within “non-operating income,” are presented as separate items starting from the fiscal year under review due to their increased materiality. To reflect this change in the presentation method, the consolidated financial statements for the fiscal year ended July 31, 2024 have been reclassified. As a result, in the Consolidated Statements of Income for the fiscal year ended July 31, 2024, ¥109 million that had been presented under “other” within “non-operating income” has been reclassified as ¥14 million in “dividend income,” ¥13 million in “surrender value of insurance policies,” and ¥80 million in “other.” (Segment information, etc.) [Segment information] 1. Overview of reportable segments The Company’s reportable segments consist of the business units for which separate financial information is available and which are subject to regular review by the Board of Directors in order to determine the allocation of management resources and to assess business performance. Centered on the Supermarket Business, the Group conducts its group management by incorporating relevant businesses. Therefore, the Group’s reportable segment is the Supermarket Business, based on its products and services. In the Supermarket Business, the Company sells meat, food, fruits and vegetables, fresh fish, and prepared food as an operator of food supermarkets. 2. Method of calculation of net sales, profit (loss), assets, liabilities, and other items by reportable segment The method of accounting for the reported business segment follows the accounting policies used for preparing consolidated financial statements. The reportable segment profit is based on operating profit. Intersegment revenues or transfers are based on actual market prices.
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14 3. Information on net sales, profit (loss), assets, liabilities, and other items by reportable segment (1) For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) (Million yen) Reportable segment Others (Note 1) Total Adjustments (Note 2) Amount recorded in Consolidated Financial Statements (Note 3) Supermarket Business Net sales Net sales to outside customers 166,992 5,339 172,331 – 172,331 Intersegment net sales or transfers 699 1,695 2,394 (2,394) – Total 167,692 7,034 174,726 (2,394) 172,331 Segment profit 8,583 525 9,109 39 9,149 Segment assets 55,628 5,344 60,972 10,386 71,359 Other items Depreciation 1,986 180 2,166 57 2,224 Amortization of goodwill 225 37 262 – 262 Increases in property, plant and equipment and intangible assets 3,908 429 4,338 5 4,343 (Notes) 1. The Others segment is a business segment that is not included in the reportable segment and includes the restaurants business, the event-related business, the outsourcing business, and the facilities operation and management business. 2. The ¥39 million adjustment to segment profit includes the elimination of intersegment transactions of ¥1,114 million and corporate expenses of ¥1,074 million. Corporate expenses mainly refer to expenses related to the operation of the holding company, which do not belong to the reportable segment. The ¥10,386 million adjustment to segment assets includes the elimination of intersegment receivables and payables of ¥706 million and corporate assets of ¥11,093 million. 3. Segment profit has been adjusted with operating profit in the Consolidated Financial Statements. (2) For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) (Million yen) Reportable segment Others (Note 1) Total Adjustments (Note 2) Amount recorded in Consolidated Financial Statements (Note 3) Supermarket Business Net sales Net sales to outside customers 180,558 5,649 186,207 – 186,207 Intersegment net sales or transfers 939 1,831 2,770 (2,770) – Total 181,497 7,480 188,978 (2,770) 186,207 Segment profit 9,568 596 10,165 (117) 10,048 Segment assets 61,086 5,723 66,809 5,912 72,721 Other items Depreciation 2,297 182 2,479 54 2,534 Amortization of goodwill 167 37 205 – 205 Increases in property, plant and equipment and intangible assets 4,899 609 5,508 155 5,663 (Notes) 1. The Others segment is a business segment that is not included in the reportable segment and includes the restaurants business, the event-related business, the outsourcing business, and the facilities operation and management business. 2. The ¥(117) million adjustment to segment profit includes the elimination of intersegment transactions of ¥1,007 million and corporate expenses of ¥1,124 million. Corporate expenses mainly refer to expenses related to the operation of the holding company, which do not belong to the reportable segment.
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15 The ¥5,912 million adjustment to segment assets includes the elimination of intersegment receivables and payables of ¥696 million and corporate assets of ¥6,608 million. 3. Segment profit has been adjusted with operating profit in the Consolidated Financial Statements. [Relevant information] For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) 1. Information by product and service Description is omitted as the net sales of a single product or service segment to external customers exceed 90% of the net sales on the consolidated statements of income. 2. Information by region (1) Net sales Not applicable as there were no net sales to external customers located in regions other than Japan. (2) Property, plant and equipment Not applicable as there was no property, plant and equipment located in regions other than Japan. 3. Information by major customer Description is omitted as there were no external customers to whom net sales account for not less than 10% of the net sales on the consolidated statements of income. For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) 1. Information by product and service Description is omitted as the net sales of a single product or service segment to external customers exceed 90% of the net sales on the consolidated statements of income. 2. Information by region (1) Net sales Not applicable as there were no net sales to external customers located in regions other than Japan. (2) Property, plant and equipment Not applicable as there was no property, plant and equipment located in regions other than Japan. 3. Information by major customer Description is omitted as there were no external customers to whom net sales account for not less than 10% of the net sales on the consolidated statements of income.
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16 [Information on impairment losses on non-current assets by reportable segment] For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) (Million yen) Reportable segment Others Corporate and elimination Total Supermarket Business Impairment losses 553 53 9 616 For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) (Million yen) Reportable segment Others Corporate and elimination Total Supermarket Business Impairment losses 107 170 – 277 [Information on amortization of goodwill and balance of unamortized goodwill by reportable segment] For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) (Million yen) Reportable segment Others Adjustments Total Supermarket Business Balance at end of period 1,200 287 – 1,487 (Note) The amortization of goodwill is omitted as similar information is disclosed in Segment information. For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) (Million yen) Reportable segment Others Adjustments Total Supermarket Business Balance at end of period 1,032 250 – 1,282 (Note) The amortization of goodwill is omitted as similar information is disclosed in Segment information. [Information on gain on bargain purchase by reportable segment] Not applicable.
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17 (Per share information) For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) Net assets per share ¥1,633.61 ¥1,771.26 Basic earnings per share ¥204.86 ¥252.05 (Notes) 1. Data on diluted earnings per share is not presented above, as there were no potential shares with a dilutive effect. 2. Basic earnings per share has been calculated based on the following: For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) Profit attributable to owners of parent (Million yen) 5,465 6,457 Amount not attributable to common shareholders (Million yen) – – Profit attributable to owners of parent relating to common shares (Million yen) 5,465 6,457 Average number of common shares outstanding during the fiscal year (Shares) 26,679,077 25,620,310 (Significant subsequent events) (Stock split) At a Board of Directors meeting held on September 12, 2025, a resolution was passed to conduct a stock split. 1. Purpose of the stock split The purpose of the stock split is to reduce the price per investment unit of the Company’s shares and create an environment that makes it easier for investors to invest in the Company’s shares, thereby increasing the liquidity of the Company’s shares and further expanding the investor base. 2. Outline of the stock split (1) Method of the split With Friday, October 31, 2025, as the record date, each common share of the Company held by the shareholders listed or recorded in the shareholder register as of the record date will be split into two shares. (2) Increase in number of shares resulting from the split Number of shares issued before the stock split 25,479,500 shares Increase in the number of shares due to the stock split 25,479,500 shares Number of shares issued after the stock split 50,959,000 shares Number of shares that can be issued after the stock split 85,000,000 shares 3. Schedule Date of public notice for record date: Friday, October 10, 2025 (planned) Record date: Friday, October 31, 2025 Effective date: Saturday, November 1, 2025
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18 4. Impact on per share information If the stock split had been conducted at the beginning of the fiscal year ended July 31, 2024, the per share information would have been as follows: For the fiscal year ended July 31, 2024 (from August 1, 2023 to July 31, 2024) For the fiscal year ended July 31, 2025 (from August 1, 2024 to July 31, 2025) Basic earnings per share (Yen) 102.43 126.02 5. Other Change in the amount of capital There will be no change in the amount of capital as a result of this stock split.