Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( Under Japanese GAAP ) Company name : CRESCO LTD . Listing : Tokyo Stock Exchange Securities code : 4674 URL : https://www.cresco.co.jp/ja/index.html Representative : Hiroshi Tominaga , President , Executive Officer Inquiries : Takashi Sawada , Executive Officer , Investor Relations Telephone : + 81-03 ) 5769-8011 Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : None Holding of financial results briefing : Yes August 5 , 2026 ● 财团 法人 FASF ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Profit attributable to owners of parent Three months ended June 30 , 2026 Net sales Millions of yen 16,682 Operating profit Ordinary profit % Millions of yen % June 30 , 2025 15,080 10.6 9.6 1,149 13.3 Millions of yen 1,254 % Millions of yen % 1,014 16.6 1,095 14.5 6.6 864 14.6 754 ( 0.2 ) Note : Comprehensive income For the three months ended June 30 , 2026 : For the three months ended June 30 , 2025 : ¥ 1,740 million [ 30.4 % ] ¥ 1,334 million ( 4.0 ) % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 ( 2 ) Consolidated financial position 21.46 18.33 As of June 30 , 2026 March 31 , 2026 Reference : Equity Total assets Net assets Equity - to - asset ratio Millions of yen 47,443 47,899 Millions of yen 33,425 % 70.5 69.9 As of June 30 , 2026 : As of March 31 , 2026 : 33,479 ¥ 33,425 million ¥ 33,479 million 2. Cash dividends Annual dividends First quarter - end per share Second end quarter- Third quarter - end Fiscal year - end Total Yen Yen Yen Yen Yen Fiscal year ended March 31 , 2026 Fiscal year ending 29.00 35.00 64.00 March 31 , 2027 Fiscal year ending March 31 , 2027 45.00 ( Forecast ) −1– 35.00 80.00
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―2― Note: Revisions to the forecast of cash dividends most recently announced: None Note: Breakdown of the second quarter dividend for the fiscal year ending March 31, 2027 : Ordinary dividend 35.00 yen Commemorative dividend 10.00 yen 3. Consolidated financial result 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 Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Six months ending September 30, 2026 34,360 11.0 2,920 7.3 2,990 4.3 2,085 1.5 51.94 Full year 71,500 10.5 8,000 21.1 8,200 17.5 5,530 4.8 137.76 Note: Revisions to the financial result forecast most recently announced: None * Notes (1) Significant changes in the scope of consolidation during the period: Yes Newly included: 1 companies( Officemation co.,Ltd. ) Excluded: - companies( ) (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 42,000,000 shares As of March 31, 2026 42,000,000 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 1,857,825 shares As of March 31, 2026 1,605,551 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 40,312,714 shares Three months ended June 30, 2025 41,156,655 shares
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―3― Quarterly Consolidated Financial Statements and Primary Notes Quarterly Consolidated Balance Sheet (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 15,478,999 15,072,645 Accounts receivable trade and contract 11,922,514 10,897,202 Electronically recorded monetary claims - operating 236,129 144,536 Securities 870,358 895,589 Merchandise and finished goods 113,572 115,256 Work in process 179,851 528,740 Supplies 47,721 16,485 Other 1,928,862 1,283,494 Total current assets 30,778,010 28,953,951 Non-current assets Property, plant and equipment 1,956,526 1,969,176 Intangible assets Goodwill 2,729,442 2,968,111 Software 354,156 456,428 Other 13,851 13,800 Total intangible assets 3,097,450 3,438,340 Investments and other assets Investment securities 8,998,997 9,951,008 Other 3,071,224 3,133,823 Allowance for doubtful accounts (2,314) (2,314) Total investments and other assets 12,067,906 13,082,516 Total non-current assets 17,121,883 18,490,032 Total assets 47,899,893 47,443,983
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―4― (Thousands of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Accounts payable - trade 3,122,990 3,142,885 Short-term borrowings 200,000 200,000 Current portion of long-term borrowings 398,336 393,332 Income taxes payable 1,385,532 276,600 Provision for bonuses 2,155,589 1,287,437 Provision for loss on orders received 119,513 86,728 Other 2,888,733 3,762,034 Total current liabilities 10,270,694 9,149,018 Non-current liabilities Long-term borrowings 761,938 696,715 Long-term accounts payable - other 41,397 44,588 Retirement benefit liability 1,542,361 1,559,197 Provision for retirement benefits for directors (and other officers) 530,440 712,797 Asset retirement obligations 411,843 414,764 Deferred tax liabilities 824,427 1,393,466 Other 37,407 47,648 Total non-current liabilities 4,149,816 4,869,177 Total liabilities 14,420,511 14,018,195 Net assets Shareholders' equity Share capital 2,514,875 2,514,875 Capital surplus 3,008,851 3,008,851 Retained earnings 25,852,555 25,303,734 Treasury shares (1,917,529) (2,298,304) Total shareholders' equity 29,458,752 28,529,157 Accumulated other comprehensive income Valuation difference on available-for-sale securities 3,840,754 4,729,597 Foreign currency translation adjustment 24,908 24,058 Remeasurements of defined benefit plans 154,966 142,974 Total accumulated other comprehensive income 4,020,629 4,896,630 Total net assets 33,479,382 33,425,788 Total liabilities and net assets 47,899,893 47,443,983
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―5― Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the Three-Month Period (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 15,080,518 16,682,784 Cost of sales 12,335,964 13,574,279 Gross profit 2,744,553 3,108,505 Selling, general and administrative expenses Advertising expenses 40,948 36,992 Remuneration, salaries and allowances for directors (and other officers) 631,982 691,820 Provision for bonuses 116,354 131,984 Retirement benefit expenses 15,860 16,633 Legal welfare expenses 100,506 119,153 Hiring expenses 93,063 97,379 Education Expense 110,211 123,163 Entertainment expenses 22,248 27,159 Rent expenses on land and buildings 68,110 75,058 Supplies expenses 22,020 14,823 Enterprise tax 53,038 60,954 Other 455,570 564,024 Total selling, general and administrative expenses 1,729,916 1,959,148 Operating profit 1,014,637 1,149,356 Non-operating income Interest income 17,349 59,098 Dividend income 36,625 45,749 Gain on sale of securities - 1,230 Gain on valuation of securities 11,678 - Subsidy income 8,436 2,968 Share of profit of entities accounted for using equity method 13,797 10,861 Other 16,331 17,258 Total non-operating income 104,217 137,167 Non-operating expenses Interest expenses 2,606 2,510 Investment advisory fee 18,676 28,169 Other 2,346 1,470 Total non-operating expenses 23,628 32,150 Ordinary profit 1,095,226 1,254,373
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―6― (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Extraordinary income Gain on sale of investment securities 55,343 106,748 Gain on redemption of investment securities 54,232 - Surrender value of insurance policies 3,395 5,853 Total extraordinary income 112,971 112,601 Extraordinary losses Loss on retirement of non-current assets 1,375 25 Loss on redemption of investment securities - 6,740 Office relocation expenses 8,158 - Retirement benefit expenses 46,642 - Other 4,000 - Total extraordinary losses 60,176 6,765 Profit before income taxes 1,148,021 1,360,209 Income taxes - current 70,819 236,555 Income taxes - deferred 322,723 258,668 Total income taxes 393,543 495,224 Profit 754,478 864,985 Profit attributable to non-controlling interests - - Profit attributable to owners of parent 754,478 864,985
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―7― Quarterly Consolidated Statement of Comprehensive Income For the Three-Month Period (Thousands of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 754,478 864,985 Other comprehensive income Valuation difference on available-for-sale securities 591,528 888,842 Foreign currency translation adjustment (3,515) (850) Remeasurements of defined benefit plans, net of tax (7,841) (11,991) Total other comprehensive income 580,171 876,000 Comprehensive income 1,334,650 1,740,985 Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,334,650 1,740,985 Comprehensive income attributable to non-controlling interests - -