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 . ZÉNSHO FASE Company Name : Code Number : Representative : Inquiries : Summary of Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31 , 2027 ( Japanese Accounting Standards ) Zensho Holdings Co. , Ltd. 7550 August 7 , 2026 Stock Listings URL Tokyo Stock Exchange https://www.zensho.co.jp/ ( TEL ) + 81-3-6833-1600 Mr. Yohei Ogawa , Representative Director , President & CEO Mr. Gen Iwamoto , Chief Financial Officer , Executive Officer , Senior General Manager of Group Finance and Accounting Division Scheduled date for payment of dividends : Supplementary documents for financial results Financial results briefing : Yes : None ( Figures rounded down to the nearest million yen ) 1. Consolidated Financial Results for the First Quarter ( April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Financial Results ( Percentages ( % ) indicate changes from the previous year ) Profit attributable to Net Sales Operating Profit Ordinary Profit owners of parent Three months ended June 30 , 2026 June 30 , 2025 Million yen 324,808 278,151 % 16.8 4.3 Million yen 24,815 15,754 % 57.5 ( 8.7 ) Million yen % Million yen % 23,762 52.6 15,172 89.2 15,570 ( 8.5 ) 8,020 ( 25.7 ) Note : Comprehensive income Three months ended June 30 , 2026 Three months ended June 30 , 2025 21,846 million yen ( 2,158 million yen ( 912.2 % ) ( 91.3 ) % ) Basic earnings Diluted earnings per share per share Three months ended June 30 , 2026 Yen Yen June 30 , 2025 ( 2 ) Consolidated Financial Position 91.20 48.61 Shareholders ' Equity Total Assets Net Assets Net Assets per share Ratio As of June 30 , 2026 Million yen 994,181 March 31 , 2026 960,362 Million yen 355,060 341,449 % 35.7 35.5 Yen 1,758.27 1,665.94 Reference : Shareholders ' Equity : June 30 , 2026 354,506 million yen March 31 , 2026 340,963 million yen 2. Dividends Dividend per Share End of Q1 End of Q2 End of Q3 Year - end Full year Fiscal Year ended March 31 , 2026 Fiscal Year ending March 31 , 2027 Yen Yen Yen 35.00 Yen 40.00 Yen 75.00 Fiscal Year ending March 31 , 2027 ( forecast ) 40.00 Note : Revisions to dividend forecasts published recently : 40.00 80.00 None 3. Consolidated Forecasts for the Fiscal Year Ending March 31 , 2027 ( April 1 , 2026 to March 31 , 2027 ) ( Percentages ( % ) indicate changes from the previous year ) Net Sales Operating Profit Ordinary Profit Profit attributable to owners of parent Profit attributable to owners of parent per share Million yen % Q2 ( Cumulative ) Full year 686,000 16.6 1,402,000 15.6 Million yen 53,000 31.1 102,000 25.2 % Million yen 50,000 % 27.3 Million yen 30,900 32.9 % Yen 185.89 94,600 20.9 54,000 17.9 321.99 Note : Revisions to consolidated financial forecasts published recently : Yes
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Notes (1) Significant changes in the scope of consolidation during the period ： None (2) Application of particular accounting procedures in the preparation of quarterly consolidated financial statements ： None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies caused by revision of accounting standards ： None (ii) Changes in accounting policies other than (i) ： Yes (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 160,733,225 shares As of March 31, 2026 160,733,225 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 4,271,016 shares As of March 31, 2026 4,270,938 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026 156,462,278 shares Three months ended June 30, 2025 156,663,675 shares Note: In the calculation of the number of treasury stocks at the end of the period and the average number of shares outstanding during the term, the number of shares of the Company’s common stock held by Custody Bank of Japan, Ltd. (Trust Account) as assets in the Board Benefit Trust (BBT) are treated as treasury shares to be deducted. * Review of the Japanese -language originals of the attached quarterly consolidated financial statements by certified accountants and/or auditing firms ： None * Explanation and other special notes concerning the appropriate use of forecasted business performance (Notes on forecast business performance and others) The forecast figures indicated above are projections based on the information available at the time of the announcement and certain assumptions include some degree of uncertainty. Actual business performance and other results may differ from the forecast depending on the changes in business conditions and others. Please refer to p.4 of the Appendix for information on the above forecast.
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Dividends for Class Shares The details of dividends per share for class shares with different rights from common stock are as follows. Class A preferred share Dividend per Share End of Q1 End of Q2 End of Q3 Year-end Full year Fiscal Year ended Yen Yen Yen Yen Yen March 31, 2026 － 2,707,397.26 － 2,692,602.74 5,400,000.00 Fiscal Year ending March 31, 2027 － Fiscal Year ending March 31, 2027 (forecast) 2,707,397.26 － 2,692,602.74 5,400,000.00 Note: Class A preferred share was issued on September 29, 2023. Series 1 Bond-type class share Dividend per Share End of Q1 End of Q2 End of Q3 Year-end Full year Fiscal Year ending Yen Yen Yen Yen Yen March 31, 2026 － － － 99.72 99.72 Fiscal Year ending March 31, 2027 － Fiscal Year ending March 31, 2027 (forecast) 100.27 － 99.72 199.99 Note: Series 1 Bond-type class share was issued on October 1, 2025. Policy on acquisition of preferred/class share The Company may acquire (call) the Series 1 Bond -type class share s in exchange for cash pursuant to term of acquisition on or after October 1, 2030. Additionally, the Company may acquire (call) the Class A preferred shares on or after September 29, 2028 in exchange for cash pursuant to term of acquisition. Whether the Company will acquire (call) the Series 1 Bond-type class shares and the Class A preferred shares will be determined based on a comprehensive assessment of factors including its business and financial strategy and market conditions at that time. The Company recognizes that many investors (including the Series 1 Bond -type class shareholders and Class A preferred shareholders) expect the Series 1 Bond -type class shares and the class A preferred shares will be acquired (called) promptly at the time when the acquisition (call) becomes possible, as a market practice for hybrid financing.
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- 1 - Appendix: Table of contents 1. Qualitative Information on Results for the First Quarter Ended June 30, 2026 2 (1) Details of Consolidated Financial Results 2 (2) Details of Consolidated Financial Position 4 (3) Information on Future Outlook, Including Consolidated Business Performance Forecast 4 2. Quarterly Consolidated Financial Statements and Major Notes 5 (1) Quarterly Consolidated Balance Sheets 5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income 7 (3) Notes on Quarterly Consolidated Financial Statements 9 (Notes on Going Concern Assumptions) 9 (Notes on Case Where Shareholders’ Equity Underwent Significant Changes in Value) 9 (Changes in Accounting Policies) 9 (Segment Information) 10 (Notes on Statements of Cash Flows) 13 (Matters related to business combination, etc.) 14
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- 2 - 1. Qualitative Information on Results for the First Quarter Ended June 30, 2026 The Group has applied a change in accounting policy relating to revenue recognition in the “Global Prepared Food” segment from the beginning of the current fiscal year. This change in accounting policy has been applied retrospectively, and the quarterly consolidated financial statements for the first quarter of the previous fiscal year are presented following retrospective application. For details of the impact of this change in accounting policy on the Group’s financial position and operating results, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes on Quarterly Consolidated Financial Statements (Changes in Accounting Policies).” (1) Details of Consolidated Financial Results In the three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026), consolidated business performance was net sales of 324,808 million yen (up 16.8％ year-on-year), operating profit of 24,815 million yen (up 57.5％ year-on-year), ordinary profit of 23,762 million yen (up 52.6％ year-on-year), and profit attributable to owners of parent of 15,172 million yen (up 89.2％ year- on-year). The business environment surrounding the Group remained uncertain due to the prolonged impact of the situation in the Middle East, as well as developments in U.S. trade policy and fluctuations in foreign exchange rates and financial markets. In the domestic economy, although improvements were seen in employment and income conditions, consumer sentiment remained weak amid persistent inflation . Under these circumstances, fluctuations in raw material prices, together with increases in various costs, including labor expenses, affected the Group’s business operations. Under these circumstances, year-on-year comparisons of the same restaurant and store sales in each reporting segment were 112.9％ in Global Sukiya, 109.8％ in Global Hamasushi, 103.8％ in Global Fast Food, 107.1％ in Restaurants, and 98.8％ in Retail. As of the end of the first quarter ended June 30, 2026, the number of restaurants and stores was 15,122 (including 8,265 franchised stores), the result of 366 restaurant and store openings and 191 closures. An overview of conditions by business segment is provided below. Additionally, references to net sales are net sales to external customers. (Global Sukiya) Net sales of Global Sukiya during the three months ended June 30, 2026, were 81,075 million yen (up 22.7％ year-on-year) with operating profit of 2,372 million yen (operating loss of 768 million yen in the three months ended June 30, 2025). “Sukiya” has locations in Japan, China, Southeast Asia, and Central and South America, providing its mainstay Gyudon to families and groups with safety, good flavor, and reasonable pricing. As part of its product initiatives, domestic “Sukiya,” provided “Gyudon with Tender-crisp Veggies,” “Spicy Keema Curry Rice Bowl ,” “Gyudon with Mekabu Seaweed,” “Pork Miso Soup Ramen,” and “Bibimbap-Style Gyudon w/ Soft-Boiled Egg,” among others. The number of restaurants in this reporting segment as of the end of the first quarter ended June 30, 2026, was 2,656 (2,010 domestic, 646 overseas), the result of 26 restaurant openings and 20 closures. (Global Hamasushi) Net sales of Global Hamasushi during the three months ended June 30, 202 6, were 93,515 million yen (up 32.2％ year-on- year) with operating profit of 8,808 million yen (up 70.4％ year-on-year). “Hamasushi” has locations mainly in Japan and China. In addition to sushi using fresh seafood, it offers a wide range of side dishes such as noodles, desserts, and drinks, which are enjoyed by both children and adults. These foods are enjoyed by everyone, from children to adults. The number of restaurants in this reporting segment as of the end of the first quarter ended June 30, 2026, was 914 (677 domestic, 237 overseas), the result of 52 restaurant openings. (Global Prepared Food) Net sales of Global Prepared Food during the three months ended June 30, 202 6, were 48,102 million yen (up 10.7％ year- on-year) with operating profit of 8,567 million yen (up 10.3％ year-on-year). As main brands,“AFC (ZENSHI),” “SNOWFOX,” “YO!,” “Bento” and “Sushi Circle” provide sushi and other takeout foods mainly in North America and Europe. The number of stores in this reporting segment as of the end of the first quarter ended June 30, 2026, was 9,088 (including 8,134 franchises), the result of 274 store openings and 156 closures.
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- 3 - (Global Fast Food) Net sales of Global Fast Food during the three months ended June 30, 2026, were 28,728 million yen (up 5.8％ year-on-year) with operating profit of 604 million yen (down 32.2％ year-on-year). “Nakau,” a Japanese fast food chain, provides a wide variety of foods at affordable prices, mainly with oyakodon rice bowl dishes and Kyoto style udon noodles. This reporting segment also includes “Zetteria,” a hamburger restaurant chain, “Katsuan,” a tonkatsu specialty restaurant, “Kyubeiya,” which serves Musashino style udon noodles and “The Chicken Rice Shop,” a halal certified chicken rice specialty restaurant. The number of restaurants and stores in this reporting segment as of the end of the first quarter ended June 30, 2026, was 1,140 (877 domestic, 263 overseas; including 55 franchises), the result of 7 restaurant openings and 12 closures. (Restaurants) Net sales of Restaurants during the three months ended June 30, 2026, were 43,147 million yen (up 7.5％ year-on-year) with operating profit of 2,799 million yen (down 5.6％ year-on-year). “Coco’s,” a standard restaurant chain, has made efforts to improve its business performance by enhancing product competitiveness through active introduction of fair menus with a focus on seasonality, pursuing authentic taste rivaling specialty restaurants, and improving the standard of services to enable customers to enjoy meals with satisfaction. This reporting segment also includes “Jolly Pasta,” a pasta specialty restaurant chain, “Big Boy,” a chain of hamburger steak and steak restaurants, “Jukusei Yakiniku Ichiban,” a barbeque chain that offers carefully selected beef, “OLIVE HILL,” a casual Italian restaurant chain, and "Hanaya Yohei,” a Japanese cuisine chain. The number of restaurants in this reporting segment as of the end of the first quarter ended June 30, 2026, was 1,184 (1,183 domestic, 1 oversea; including 76 franchises), the result of 6 restaurants opening and 3 closures. (Retail) Net sales of Re tail during the three months ended June 30, 202 6, were 19,212 million yen ( up 0.3 ％ year-on-year) with operating loss of 174 million yen (operating loss of 599 million yen in the three months ended June 30, 2025). This reporting segment includes “Joy Foods” and “Maruya,” supermarkets with locations primarily in the North Kanto area, and “United Veggies,” which operates fruit and vegetable stores. The number of stores in this reporting segment as of the end of the first quarter ended June 30, 2026, was 121, the result of 1 store opening. (Corporate and Support) Net sales of Corporate and Support during the three months ended June 30, 2026, were 2,808 million yen (up 54.3％ year-on- year) with operating profit of 1,719 million yen (operating loss of 3 million yen in the three months ended June 30, 2025). This reporting segment includes GFF Co., Ltd, which manufactures and processes food, Global Fresh Supply Co., Ltd., which handles logistics functions, and Global Table Supply Co., Ltd., which procures uniforms, equipment, etc. (Others) Net sales of Others during the three months ended June 30, 202 6, were 8,217 million yen (down 14.7％ year-on-year) with operating loss of 84 million yen (operating profit of 27 million yen in the three months ended June 30, 2025). This segment includes Tolona Japan Co., Ltd., which plans, develops, and sells frozen foods for home use, etc., Sanbishi Co., Ltd., which manufactures and sells soy sauce and dressing, etc., Kagayaki Co., Ltd., which operates the nursing business, and Zensho Rice Co., Ltd., which sells brown and milled rice.
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- 4 - (2) Details of Consolidated Financial Position (Assets) Assets amounted to 994,181 million yen as of the end of the first quarter ended June 30, 2026, an increase of 33,818 million yen compared with the previous fiscal year-end. This was mainly due to increases in property, plant and equipment. (Liabilities) Liabilities amounted to 639,120 million yen as of the end of the first quarter ended June 30, 2026, an increase of 20,208 million yen compared with the previous fiscal year-end. This was mainly due to an increase in interest-bearing liabilities. (Net Assets) Net Assets came at 355,060 million yen as of the end of the first quarter ended June 30, 2026, an increase of 13,610 million yen compared with the previous fiscal year -end. This was mainly due to increases in retained earnings and foreign currency translation adjustment. (3) Information on Future Outlook, Including Consolidated Business Performance Forecast For the consolidated business performance forecasts for the fiscal year ending March 31, 20 27, please refer to 「Notice Concerning Revisions to Consolidated Forecasts for the Fiscal Year Ending March 31, 2027」 announced on August 7, 2026.
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- 5 - 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance sheets (Million yen) End of Previous fiscal year (As of March 31, 2026) End of 1Q Current fiscal year (As of June 30, 2026) Assets Current Assets Cash and deposits 128,054 123,285 Accounts receivable - trade 58,676 63,213 Securities 15,011 7,082 Merchandise and finished goods 4,763 5,041 Work in process 3,488 3,319 Raw materials and supplies 78,858 79,614 Other 31,227 35,978 Allowance for doubtful accounts (472) (490) Total current assets 319,606 317,046 Non-current assets Property, plant and equipment, net Buildings and structures 317,944 331,213 Accumulated depreciation (164,651) (167,702) Buildings and structures, net 153,292 163,511 Machinery, equipment and vehicles 34,979 37,278 Accumulated depreciation (17,590) (19,186) Machinery, equipment and vehicles, net 17,388 18,091 Other 315,535 340,369 Accumulated depreciation (144,082) (150,398) Other, net 171,453 189,971 Total property, plant and equipment 342,134 371,573 Intangible assets Trade mark right 212,331 214,981 Goodwill 10,096 16,789 Other 6,845 7,134 Total intangible assets 229,274 238,904 Investments and other assets Investment securities 1,198 634 Guarantee deposits 41,158 41,756 Other 26,533 23,909 Allowance for doubtful accounts (61) (61) Total investments and other assets 68,828 66,239 Total non-current assets 640,237 676,717 Deferred assets 518 417 Total assets 960,362 994,181
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- 6 - (Million yen) End of Previous fiscal year (As of March 31, 2026) End of 1Q Current fiscal year (As of June 30, 2026) Liabilities Current Liabilities Accounts payable - trade 58,790 63,909 Short-term borrowings 3,942 6,449 Current portion of bonds payable 5,000 15,000 Current portion of long-term borrowings 22,582 24,366 Income taxes payable 9,815 5,770 Contract liabilities 860 881 Provisions 5,147 2,871 Other 94,972 97,424 Total current liabilities 201,111 216,674 Non-current liabilities Bonds payable 50,000 40,000 Long-term borrowings 228,518 238,222 Provisions 216 261 Retirement benefit liability 383 438 Asset retirement obligations 8,300 8,404 Other 130,381 135,118 Total non-current liabilities 417,801 422,446 Total liabilities 618,912 639,120 Net assets Shareholders’ equity Share capital 47,497 47,497 Capital surplus 122,613 122,613 Retained earnings 147,070 153,876 Treasury shares (15,632) (15,632) Total shareholders’ equity 301,548 308,354 Accumulated other comprehensive income Deferred gains or losses on hedges 341 413 Foreign currency translation adjustment 39,073 45,738 Total accumulated other comprehensive income 39,414 46,151 Non-controlling interests 486 554 Total net assets 341,449 355,060 Total liabilities and net assets 960,362 994,181
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- 7 - (2) Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statements of Income) (Three months ended June 30) (Million yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Net sales 278,151 324,808 Cost of sales 121,958 138,262 Gross profit 156,193 186,546 Selling, general and administrative expenses 140,438 161,731 Operating profit 15,754 24,815 Non-operating income Interest income 589 748 Dividend income 9 3 Foreign exchange losses 978 113 Share of profit of entities accounted for using equity method 8 8 Other 467 639 Total non-operating income 2,054 1,512 Non-operating expenses Interest expenses 1,587 1,981 Other 650 583 Total non-operating income 2,238 2,565 Ordinary profit 15,570 23,762 Extraordinary income Gain on sale of non-current assets 19 1 Other 6 12 Total extraordinary income 26 14 Extraordinary losses Loss on retirement of non-current assets 371 917 Loss on withdrawal from business 2,910 － Other 367 617 Total extraordinary losses 3,649 1,534 Profit before income taxes 11,947 22,242 Income taxes - current 2,521 5,442 Income taxes - deferred 1,421 1,639 Total income taxes 3,943 7,082 Profit 8,003 15,159 Profit (loss) attributable to non-controlling interests (16) (12) Profit attributable to owners of parent 8,020 15,172
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- 8 - (Quarterly Consolidated Statements of Comprehensive Income) (Three months ended June 30) (Million yen ) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Profit 8,003 15,159 Other comprehensive income Valuation difference on available-for-sale securities (0) － Deferred gains or losses on hedges (129) 35 Foreign currency translation adjustment (5,701) 6,645 Share of other comprehensive income of entities accounted for using equity method (13) 5 Total other comprehensive income (5,845) 6,687 Comprehensive income 2,158 21,846 (Breakdown) Comprehensive income attributable to owners of parent 2,165 21,858 Comprehensive income attributable to non-controlling interests (7) (11)
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- 9 - (3) Notes on Quarterly Consolidated Financial Statements (Notes on Going Concern Assumptions) Not applicable. (Notes on Case Where Shareholders’ Equity Underwent Significant Changes in Value) Not applicable. (Changes in Accounting Policies) (Revenue recognition for the “Global Prepared Food” segment) In the “Global Prepared Food” segment, the Group operates directly-managed and franchised takeout sushi stores, etc. within food retail stores, mainly in North America and Europe. Effective from the first quarter of the current fiscal year, certain consolidated subsidiaries in this segment have changed the accounting policy for certain revenue arising from franchise agreements. Under the new policy, rent paid to food retail stores, which had previously been recognized as cost of sales, is deducted from net sales (net presentation). This change follows the Group’s decision, prompted by the restructuring of the management structure overseeing the brands in the “Global Prepared Food” segment, to standardize its management and operating policies for matters such as store continuation within the segment from the first quarter of the current fiscal year and, in conjunction with this, to commence a review of the related franchise agreements. As a result, the principal role of the relevant subsidiaries in relation to franchisees has changed from securing and maintaining store space to arranging store leases. Accordingly, the Group determined that presenting transactions under franchise agreements on a net basis more appropriately reflects the substance of those transactions, and therefore adopted the new accounting policy from the first quarter of the current fiscal year. This change in accounting policy has been applied retrospectively, and the quarterly consolidated financial statements for th e first quarter of the previous fiscal year are presented following retrospective application. As a result, net sales and cost of sales in the quarterly consolidated statement of income for the first quarter of the previous fiscal year each decreased by 12,270 million yen compared with amounts prior to retrospective application. There was no impact on gross profit, operating profit, o rdinary profit, profit before income taxes, or per share information. The impact on segment information is described in “Notes (Segment Information).”
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- 10 - (Segment Information) I Three months ended June 30, 2025 (April 1, 2025 to June 30, 2025) 1. Information on net sales, profit or loss by reporting segment (Million yen) Reporting segment Global Sukiya Global Hamasushi Global Prepared Food Global Fast Food Restaurants Retail Corporate and Support Total Net sales Net sales to external customers 66,088 70,726 43,444 27,153 40,126 19,161 1,820 268,520 Intersegment sales or transfers (Note 4) 82 44 － 3 85 190 107,136 107,541 Total 66,171 70,770 43,444 27,156 40,211 19,351 108,957 376,062 Segment profit (loss) (768) 5,169 7,767 892 2,966 (599) (3) 15,423 Other (Note 1) Total Adjustment (Note 2) Amount recorded on Quarterly Consolidated Statements of Income (Note 3) Net sales Net sales to external customers 9,631 278,151 － 278,151 Intersegment sales or transfers (Note 4) 3,858 111,399 (111,399) － Total 13,489 389,551 (111,399) 278,151 Segment profit (loss) 27 15,451 302 15,754 (Notes) 1. The “Other” category is a business segment not included in the reporting segments, and includes the Manufacturing and wholesaling business for external sales, Nursing care business, and Livestock and aquaculture business. 2. The adjustment of 302 million yen to segment profit (loss) primarily consists of elimination of intersegment transactions and inventory adjustments. 3. The total amount of segment profit (loss) is adjusted with the operating profit in the quarterly consolidated statements of income. 4. Intersegment sales or transfers amounts are calculated based on prevailing market prices. 2. Information by reporting segment on impairment loss or goodwill on non-current assets (Significant impairment loss on non-current assets) Not applicable. (Significant change in goodwill) Not applicable. (Significant profit on negative goodwill) Not applicable.
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- 11 - II Three months ended June 30, 2026 (April 1, 2026 to June 30, 2026) 1. Information on net sales, profit or loss by reporting segment (Million yen) Reporting segment Global Sukiya Global Hamasushi Global Prepared Food Global Fast Food Restaurants Retail Corporate and Support Total Net sales Net sales to external customers 81,075 93,515 48,102 28,728 43,147 19,212 2,808 316,591 Intersegment sales or transfers (Note 4) 104 49 － 2 59 368 129,684 130,268 Total 81,180 93,565 48,102 28,730 43,206 19,580 132,492 446,859 Segment profit (loss) 2,372 8,808 8,567 604 2,799 (174) 1,719 24,699 Other (Note 1) Total Adjustment (Note 2) Amount recorded on Quarterly Consolidated Statements of Income (Note 3) Net sales Net sales to external customers 8,217 324,808 － 324,808 Intersegment sales or transfers (Note 4) 4,817 135,085 (135,085) － Total 13,034 459,894 (135,085) 324,808 Segment profit (loss) (84) 24,614 201 24,815 (Notes) 1. The “Other” category is a business segment not included in the reporting segments, and includes the Manufacturing and wholesaling business for external sales, Nursing care business, and Livestock and aquaculture business. 2. The adjustment of 201 million yen to segment profit (loss) primarily consists of elimination of intersegment transactions and inventory adjustments. 3. The total amount of segment profit (loss) is adjusted with the operating profit in the quarterly consolidated statements of income. 4. Intersegment sales or transfers amounts are calculated based on prevailing market prices. 2. Information by reporting segment on impairment loss or goodwill on non-current assets (Significant impairment loss on non-current assets) Not applicable. (Significant change in goodwill) Not applicable. (Significant profit on negative goodwill) Not applicable.
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- 12 - 3. Matters concerning changes to reporting segments, etc. As described in “Changes in Accounting Policies,” effective from the first quarter of the current fiscal year, certain consolidated subsidiaries in the “Global Prepared Food” segment have changed the accounting policy for certain revenue arising from franchise agreements. Under the new policy, rent paid to food retail stores, which had been recognized as cost of sales, is deducted from net sales (net presentation). This change in accounting policy has been applied retrospectively, and the segmen t information for the first quarter of the previous fiscal year is presented following retrospective application. As a result, net sales to external customers for the first quarter of the previous fiscal year decreased by 12,270 million yen compared with the amounts before retrospective application. There was no impact on segment profit.
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- 13 - (Notes on Statements of Cash Flows) Quarterly consolidated statements of cash flows for the three months ended June 30, 2026 have not been prepared. Depreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30, 2026 are as follows. (Million yen) Three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025) Three months ended June 30, 2026 (From April 1, 2026 to June 30, 2026) Depreciation 12,278 15,288 Amortization of goodwill 301 286
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- 14 - (Matters related to business combination, etc.) (Business combination through acquisition (Sushi & Food Factor Sp. z o.o.)) Wonderfield Group Limited, a wholly owned subsidiary of the Company, entered into a share transfer agreement to acquire all shares of Sushi & Food Factor Sp. z o.o. (hereinafter, “SFF”) at a meeting of its Board of Directors held on March 17, 2026, and acquired all shares on May 29, 2026. 1. Overview of business combination (1) Name and description of business of acquired company Name of acquired company Details of business Sushi & Food Factor Sp. z o.o. Manufacture and wholesale of Asian food products (2) Primary reasons for the business combination Under its corporate philosophy of taking responsibility for the stability and development of human society through food and eradicating hunger and poverty from the world, the Group operates a wide range of food businesses and expands globally with the mission of providing safe and delicious food at affordable prices to people around the world. In addition to its food service businesses, including Sukiya and Hamasushi, the Group has in recent years been expanding its Global Prepared Food business, which consists of takeout sushi businesses in North America and Europe. This acquisition of shares further advances the Group’s strategy for its Global Prepared Food business. SFF counts major retail chains , etc., in Europe among its customers and operates one of the largest packaged sushi manufacturing plants in the region. The Group acquired SFF, having determined that, by incorporating SFF’s production capacity and network into the Group and realizing synergies between SFF and the Group in areas such as menu development, ingredient procurement, and logistics, it could expect further expansion of its business. (3) Date of the business combination May 29, 2026 (Deemed acquisition date: June 30, 2026) (4) Legal form of the business combination Acquisition of shares for cash consideration (5) Name of the entity after the business combination No change. (6) Percentage of voting rights acquired Percentage of voting rights held immediately before the business combination: – Percentage of voting rights acquired at the date of the business combination: 100.0% Percentage of voting rights held after the acquisition: 100.0% (7) Primary basis for determining the acquiring entity The acquiring entity was determined based on the acquisition of shares for cash consideration. 2. Period of the acquired company’s operating results included in the quarterly consolidated statement of income for the three months ended June 30, 2026 As June 30, 2026 was used as the deemed acquisition date, only the acquired company’s quarterly balance sheet was included in the consolidation, and its operating results were not included in the quarterly consolidated statement of income for the three months ended June 30, 2026. 3. Acquisition cost of the acquired company and breakdown by type of consideration Consideration for the acquisition Cash 8,094 million yen Acquisition cost 8,094 million yen
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- 15 - 4. Amount of goodwill recognized, reason for recognition, amortization method, and amortization period (1) Amount of goodwill recognized 6,974 million yen The amount of goodwill is provisional because the allocation of the acquisition cost had not been completed as of the end of the first quarter ended June 30, 2026. (2) Reason for recognition The goodwill arose from the excess earning power expected from future business development. (3) Amortization method and amortization period The goodwill will be amortized using the straight-line method over the period during which its effects are expected to be realized.