Interim report
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Translation Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Company name: Takashimaya Company, Limited Stock exchange listing: Tokyo Stock code: 8233 URL https://www.takashimaya.co.jp Representative: President Yoshio Murata Inquiries: General Manager, Public and Investor Relations Office Mariko Oe TEL (03)3211-4111 Scheduled date to file Interim Securities Report: October 15, 2026 Scheduled date to commence dividend payments: November 24, 2026 Preparation of supplementary material on interim financial results: Yes Holding of interim financial results meeting: Yes (for analysts) (1) Consolidated operating results (cumulative) Percentages indicate year-on-year changes Total operating revenue Operating revenue Operating profit Business profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ended August 31, 2026 517,465 6.2 244,131 3.7 27,521 16.4 30,474 21.2 28,066 27.5 16,014 (24.5) Six months ended August 31, 2025 487,186 (3.9) 235,362 (3.3) 23,653 (17.8) 25,153 (20.2) 22,010 (27.2) 21,219 11.2 Earnings per share Diluted earnings per share Yen Yen Six months ended August 31, 2026 54.65 54.65 Six months ended August 31, 2025 70.14 59.15 Note 1: Comprehensive income For the six months ended August 31, 2026 18,253 million yen [4.9%] For the six months ended August 31, 2025 17,393 million yen [(31.3)%] Total assets Net assets Equity ratio Millions of yen Millions of yen % As of August 31, 2026 1,359,233 490,444 34.0 As of February 28, 2026 1,346,229 477,749 33.4 Reference: Equity As of August 31, 2026 461,646 million yen As of February 28, 2026 449,788 million yen Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Year ended February 28, 2026 － 17.00 － 17.00 34.00 Year ending February 28, 2027 － 22.00 － － － Year ending February 28, 2027 (Forecast) － － － 22.00 44.00 Summary of Interim Consolidated Financial Results for the Six Months Ended August 31, 2026 (Based on Japanese GAAP) October 15, 2026 (Amounts less than one million yen are rounded down) 1. Interim Consolidated financial results for the six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) Note 2: Total operating revenue was calculated using the previous standard before the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations. Note 3: The term “Business profit” is the Company’s original indicator, calculated by adding share of profit of entities accounted for using equity method and dividend income to operating profit. (2) Consolidated financial position 2. Cash dividends Note : Revisions to the forecast of cash dividends most recently announced: Yes .
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Total operating revenue Operating revenue Operating profit Business profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 1,080,000 4.6 509,100 3.4 59,000 10.2 66,000 10.7 60,000 5.5 38,000 － 129.68 (1) Changes in significant subsidiaries during the six months ended August 31, 2026 (changes in specified subsidiaries resulting in the change in scope of consolidation): No (2) Application of special accounting methods for preparing interim consolidated financial statements: No Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No Changes in accounting estimates: No Restatement of prior period financial statements: No Total number of issued shares at the end of the period (including treasury shares) As of August 31, 2026 305,208,916 shares As of February 28, 2026 305,208,916 shares Number of treasury shares at the end of the period As of August 31, 2026 12,185,183 shares As of February 28, 2026 12,194,516 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) Six months ended August 31, 2026 293,022,398 shares Six months ended August 31, 2025 302,527,582 shares 3. Forecast of consolidated financial results for the year ending February 28, 2027 (from March 1, 2026 to February 28, 2027) Percentages indicate year-on-year changes Note 1: Revisions to the earnings forecasts most recently announced: Yes Note 2: Total operating revenue was calculated using the previous standard before the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations. Note 3: The term “Business profit” is the Company’s original indicator, calculated by adding share of profit of entities accounted for using equity method and dividend income to operating profit. 4. Notes (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements (4) Number of issued shares (common shares) * Interim financial results reports are exempt from interim review conducted by certified public accountants or an audit corporation. * Proper use of earnings forecasts, and other special matters (Cautionary statement regarding forward-looking statements, etc.) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Group and on certain assumptions deemed to be reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Group. Actual business and other results may differ substantially due to various factors. Please refer to 1. Qualitative Information about Consolidated Operating Results, (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements on page 5 of the attached materials for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.
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1. Qualitative Information about Interim Consolidated Operating Results ………………………………………………………………… 2 (1) Explanation of Operating Results …………………………………………………………………………………………………… 2 (2) Explanation of Financial Position …………………………………………………………………………………………………… 4 (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements ………………………………………… 5 2. Interim Consolidated Financial Statements and Major Notes …………………………………………………………………………… 6 (1) Interim Consolidated Balance Sheets ………………………………………………………………………………………………… 6 (2) Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income …………………… 8 Interim Consolidated Statements of Income ………………………………………………………………………………………… 8 Interim Consolidated Statements of Comprehensive Income ……………………………………………………………………… 9 (3) Interim Consolidated Statements of Cash Flows ……………………………………………………………………………………… 10 (4) Notes to Interim Consolidated Financial Statements ………………………………………………………………………………… 11 [Notes on Premise of Going Concern] ………………………………………………………………………………………………… 11 [Changes in Presentation] ……………………………………………………………………………………………………………… 11 [Notes on Substantial Changes in the Amount of Shareholders’ Equity] ……………………………………………………………… 11 [Changes in Significant Subsidiaries During the Interim Consolidated Period] ……………………………………………………… 11 [Segment Information] ………………………………………………………………………………………………………………… 12 [Significant Subsequent Events] ……………………………………………………………………………………………………… 14 ○ Table of Contents of the Attachment - 1 -
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1. Qualitative Information about Interim Consolidated Operating Results (1) Explanation of Operating Results In terms of Japanese socio-economics during the cumulative first six months under review (March 1 to August 31, 2026), there was an improvement in real wages and the moderate recovery, driven mainly by consumer spending, continued. On the other hand, we need to continue closely monitoring the impact of prolonged geopolitical risks, particularly in the Middle East, on the global economy, Japanese financial markets (interest rates, exchange rates, and stock prices), and the economy (cost of living, consumer spending, and inbound demand). We (the Takashimaya Group) established a vision for the milestone of our 200th anniversary in 2031 to be "a familiar platform that helps achieve fulfilling lifestyles for all our stakeholders, including our customers, employees, shareholders, and local communities.” We announced this vision as our Grand Design in the first year of our current Medium-Term Management Plan (FY2024 to FY2026). Furthermore, we began fully implementing seamlessness within our group to realize this Grand Design in the previous fiscal year. The sum total of the products and services we handle in our group's commercial facilities, e-commerce, finance, and other operations inside and outside Japan is our unique competitive advantage. We will build structures and mechanisms that allow us to seamlessly provide products and services transcending various boundaries, such as between department stores and specialty stores, domestic and overseas, and brick-and-mortar stores and online stores. Through these efforts, we will aim to maximize the value we provide to our customers. Moreover, looking beyond our 200th anniversary, we will work to continue expanding our business domains and creating new value by leveraging our three strengths: multiple profit-generating bases in major cities in Japan and Asia, the collective strengths of our group companies, and our broad customer base cultivated in each of our locations and organizations. Against this backdrop, our management target for this fiscal year is to “make certain to achieve the Medium-Term Management Plan through the full utilization of the collective strengths of our group companies: lay the groundwork to realize the Grand Design in 2031.” As such, we are working to “strengthen the Machi-dukuri Strategy by achieving seamlessness within our group,” “transform work (reform organizational culture and utilize digital technology),” and “enhance management foundations (practice ESG management and human capital management).” Our consolidated financial results for the first six months under review were consolidated operating revenue of 244,131 million yen (increase of 3.7% YoY), consolidated operating profit of 27,521 million yen (increase of 16.4% YoY), consolidated business profit of 30,474 million yen (increase of 21.2% YoY), and consolidated ordinary profit of 28,066 million yen (increase of 27.5% YoY). On the other hand, interim profit attributable to owners of parent was 16,014 million yen (decrease of 24.5% YoY) due to the pullback in gain on sale of non- current assets recorded in the previous fiscal year. Segment-specific earnings for each business were as follows. <Department Stores in Japan> Operating revenue from the Department Stores in Japan segment was 149,134 million yen (increase of 1.9% YoY) and operating profit was 12,458 million yen (increase of 30.2% YoY). Net sales exceeded those in the previous year. This was thanks to an increase in inbound demand driven by a weak yen as well as strong net sales from customers in Japan who account for the majority of our sales. The gross margin ratio based on total sales was lower than in the previous year. This was mainly because, while net sales from domestic customers and demand from inbound customers remained solid, there was a change in the sales composition ratio as a result of net sales from luxury brands and other products with a low-profit ratio being significantly higher than in the previous year. On the other hand, we secured higher total gross profit thanks to an increase in net sales. In terms of SG&A expenses, we allocated funds on an ongoing basis to promote human capital management, such as by increasing base pay. Together with this, we also appropriately invested funds to help strengthen sales capabilities while ascertaining their effectiveness. Meanwhile, although there were factors that caused unavoidable increases, such as heating and lighting expenses, we improved upon the figures in the previous year by simultaneously promoting cost cutting initiatives. As a result of those efforts, the segment as a whole saw increased revenue and profit. We will continue to steadily promote initiatives to increase profit while taking into account risks in the external environment in the future. We will strengthen efforts to realize an attractive merchandise assortment focused on our five large stores in the east and west of Japan, one of our strengths, as a part of our product policy. Furthermore, we will continue to strengthen our unique item spaces, self-curated sales spaces, and e-commerce, and develop new products and services. With such efforts, we will aim to improve customer satisfaction. We will drive an improvement in our gross margin ratio by strengthening operations in the fashion domain focused on clothing products and miscellaneous goods with a high-profit ratio through collaboration with key business partners. In terms of our customer policy, we will advance initiatives to strengthen our foundation. We will strive to improve the satisfaction of our existing VIP customers by providing new services in finance and other areas. In addition, we will work to capture the next generation of customers by lowering our target age range and strengthening alliances. Additionally, we will take advantage of having outstanding overseas stores to undertake efforts aimed at establishing a base of overseas customers and creating loyal customers. Furthermore, we will work to strengthen our engagement with customers and enhance convenience with regards to the Takashimaya app, which is seeing a steady increase in members, through an expansion in features, including the Digital Points service we launched on September 16, 2026. In terms of cost cutting, we will continue to consider additional measures according to the situation, including further improving the efficiency of our store operation structure, while factoring in the risk of increases in procurement costs in the future. <Overseas Department Stores> Operating revenue from the Overseas Department Stores segment was 18,636 million yen (increase of 15.8% YoY) and operating profit - 2 -
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was 4,601 million yen (increase of 21.4% YoY). At Singapore Takashimaya, revenue and profit declined in local currency terms, but increased when converted into yen due to the depreciation of the yen. Going forward, in addition to enhancing our lifestyle-related offerings (foods, living, and cafes, etc.), one of our strengths, we will revitalize our merchandising through an expansion in promotions, events, and other activities focused on the fashion sector. Through these efforts, we will seek to attract more domestic customers and tourists at Takashimaya Singapore. Shanghai Takashimaya achieved an increase in revenue and a return to profit. This was partly thanks to the effect of initiatives aimed at strengthening the revenue base, such as by attracting new tenants. We will continue to promote cost cutting in conjunction with those efforts to lead to a further increase in profit. Having celebrated its 10th anniversary since opening, Ho Chi Minh City Takashimaya recorded increased revenue and profit by strengthening merchandising, such as for children’s merchandise, a growth field, and cosmetics, a highly popular product category among customers, as well as by minimizing the increase in costs. We will promote the restructuring of product categories and brands and the strengthening of promotions and events with the aim of further increasing net sales. Siam Takashimaya (Thailand) saw strong net sales from domestic customers. In addition, the store promoted measures to control costs. That resulted in an increase in revenue and a reduction in the size of losses. Going forward, we will strive to maximize the benefits of the revamp to the luxury zone and other areas to lead to a return to profit. <Commercial Property Development in Japan> Operating revenue from the Commercial Property Development in Japan segment was 21,240 million yen (increase of 3.0% YoY) and operating profit was 3,455 million yen (increase of 1.0% YoY). Despite the impact of the work to revamp Tamagawa Takashimaya Shopping Center (S.C.), Toshin Development Co., Ltd. recorded an increase in revenue. That was because strengthening sales measures, including those for other facilities, led to an increase in customer traffic and net sales (percentage rent and credit card fee income, etc.). Meanwhile, although we promoted greater cost efficiencies, operating profit remained at the same level as the previous year due in part to rising outsourcing costs and other expenses relating to facility operation The revamp of Tamagawa Takashimaya S.C. is steadily progressing toward the shopping center fully opening in FY2027. We are also working to enhance the overall appeal of our shopping centers at each facility, including Kyoto Takashimaya Shopping Center, Kashiwa Takashimaya Station Mall, and Nagareyama Otakanomori Shopping Center. Please refer to the news release issued on October 15, 2026 for information on future revamp plans for Tamagawa Takashimaya S.C. ※ https://www.takashimaya.co.jp/base/corp/topics/261015f.pdf (In Japanese only) <Overseas Commercial Property Development> Operating revenue from the Overseas Commercial Property Development segment was 8,684 million yen (increase of 15.1% YoY) and operating profit was 3,197 million yen (increase of 19.2% YoY). Toshin Development Singapore Pte. Ltd. recorded an increase in revenue and profit. This was achieved thanks to the revamp effects as well as by minimizing the increase in costs. Our Vietnam business, which is a growth driver for our group, is seeing an increase in profit. In addition to a mixed-use development in Hanoi scheduled to open in the fall of 2027, we will be fully putting into effect our expansion plan for the Saigon Centre in Ho Chi Minh City in the future. Having continued to grow since its opening in 2016, the Saigon Centre will now further evolve. We will develop the facility into our second ASEAN base to put it on par with our Takashimaya Singapore Shopping Centre that has been highly praised internationally since opening in 1993. We will also appropriately control the size of our assets by combining participation in core businesses that realize sustainable growth through long-term asset holding with participation in short-term return businesses (residential projects in Ho Chi Minh City, etc.) from the perspective of improving capital efficiency. <Finance> Operating revenue from the Finance segment was 10,917 million yen (increase of 8.6% YoY) and operating profit was 3,145 million yen (increase of 17.0% YoY). In our Finance segment, we are involved in the Card & Payment business, the Life Partner business, and the Investment and Lending business. We operate these businesses through companies centered on Takashimaya Financial Partners Co., Ltd. and also including Vaste Culture & Cie., with its strengths in private banking services, and Takashimaya Clay Capital Co., Ltd., with its strengths in lending to SMEs. As a result of promoting initiatives in each of these companies and businesses, we increased revenue and profit in this segment. In the Card & Payment business, Takashimaya Financial Partners Co., Ltd. is striving to acquire new members toward strengthening the customer base under the Group-wide Machi-dukuri Strategy. In particular, we are working to leverage our strengths in terms of store locations and real-world customer contact points. To realize this, we are engaging in efforts such as to save labor and improve efficiency in processing at card counters in each of our stores by using digital technologies to promote a shift of human resources to in-store sales activities. As a result, the number of new members we acquired and the number of active accounts steadily increased. Together with this, in addition to promoting use of our services both inside and outside our company, expanding use of the “Ato Kara (Pay Later)” installment payment service we updated in the previous year, and expanding the acquisition and use of the Takashimaya Card (Business Platinum) for corporate owner customers, we have engaged in initiatives such as reviewing various service fees. These efforts have also led to an increase in transaction volume, as well as revenue from annual membership fees and other fees. The six-month course we introduced in the previous year for the SUGO-TSUMI payment service that uses Takashimaya NEOBANK has proved effective. This has helped to lead to an increase in the number of users and transaction volume. - 3 -
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Changes in the social environment continue to affect the Life Partner business. These include fluctuations in financial and foreign exchange markets and revisions to the Insurance Business Act in light of trends in the insurance industry. Under these circumstances, we have been taking advantage of customer contact points at Takashimaya financial counters under the concept of “Comprehensive Consultation on Your Finances for the Future” to enhance support for consultations at counters and seminars. Through these efforts, the number of accounts, the balance of assets under management, and other metrics are steadily increasing. We are also advancing initiatives to expand our customer base for the Takashimaya version of private banking services through cooperation between the Takashimaya VIP Customers Department and Vaste Culture & Cie. In the Investment and Lending business, Takashimaya Financial Partners Co., Ltd. is leveraging the know-how and corporate network it has cultivated through social lending to expand its borrowers and projects in corporate loans. In concrete terms, business revenue has been steadily increasing through measures such as providing loans to SanitasI LLC, a private real estate fund that began operations in March 2026, as part of our group’s Finance segment. Takashimaya Clay Capital Co., Ltd. is also steadily expanding its corporate loans for SMEs, backed by strengthened governance as a result of joining our group. We resolved at a Board of Directors' meeting convened on October 15, 2026 to establish an intermediate holding company through a company split (a simplified incorporation-type company split) and then transfer the shares we hold in Takashimaya Financial Partners Co., Ltd., Vaste Culture & Cie., Takashimaya Clay Capital Co., Ltd., and Hogaraka Trust Co., Ltd. to the intermediate holding company. We have scheduled March 1, 2027 as the date of the split (effective date). As the environment surrounding the financial industry undergoes significant changes, it has become increasingly important to address not only the diversification of customer needs and the advancement of digitalization, but also the ever more sophisticated governance and risk management required of financial institutions. Moreover, to place the Finance segment on a sustainable growth trajectory, we need to establish a structure that consolidates the management resources and know-how currently dispersed across various companies to make it possible to drive business in a more agile and strategic manner. We will centralize our strategic planning and business management functions for the Finance segment by establishing this intermediate holding company. In doing so, we will pursue the establishment and increase in sophistication of our governance and risk management structures. Together with this, we will promote faster decision-making and effective utilization of management resources, such as human resources, expertise, and our customer base, while working to develop new services and create new revenue opportunities. Furthermore, by integrating our group's customer base and commercial assets with financial services, we will realize growth in the Finance segment and a group-wide expansion in earnings, thereby enhancing our corporate value. <Construction & Design> Operating revenue from the Construction & Design segment was 16,151 million yen (increase of 3.6% YoY) and operating profit was 1,061 million yen (decrease of 30.6% YoY). Takashimaya Space Create Co., Ltd. recorded an increase in revenue. However, profit decreased due to the revision of plans for some projects scheduled to be ordered as a result of soaring construction costs and the impact of rising costs, including personnel related expenses. Moving forward, in addition to acquiring new orders by strengthening our forward-looking proposals that leverage our strengths, such as our sales and design capabilities, we will promote cost reductions and efficiency improvements to build a platform for stable revenue. <Others> Operating revenue from other businesses was 19,367 million yen (increase of 1.6% YoY) and operating profit was 641 million yen (decrease of 20.3% YoY). The “Others” as a whole recorded increased revenue and profit. Our restaurant business R.T. Corporation Ltd. and our staffing business CENTURY & Co., Ltd. recorded an increase in revenue and profit. We will continue to strengthen our management foundations by promoting efforts to enhance our industry competitiveness in each business. Upon comprehensively evaluating performance and our operating environment, we have adopted a basic dividend policy of implementing progressive dividends to enhance profit returns to shareholders. Based on this policy, we decided at a Board of Directors' meeting convened on October 15, 2026 to increase the interim dividend for the fiscal year ending February 2027 by 2 yen per share, above our most recent forecast (announced on April 14, 2026), to 22 yen. We have also decided to increase the year-end dividend forecast by 2 yen per share to 22 yen. This results in a full-year dividend forecast of 44 yen, which is 4 yen above our previous forecast. (2) Explanation of Financial Position (i) Status of Assets, Liabilities and Net Assets Total assets as of August 31, 2026 amounted to 1,359,233 million yen, up 13,003 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase of 16,711 million yen in cash and deposits, and an increase of 6,482 million yen in investment securities relating to additional purchases of shares of affiliates, etc. Liabilities amounted to 868,788 million yen, up 308 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase of 123,982 million yen in bonds payable and long-term borrowings, despite a decrease of 120,609 million yen in short-term borrowings. Net assets amounted to 490,444 million yen, up 12,695 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase of 16,014 million yen in retained earnings from profit attributable to owners of parent, a decrease of 4,981 million yen in retained earnings due to dividends paid, and an increase of 1,634 million yen in foreign currency translation adjustment at overseas - 4 -
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subsidiaries. As a result, the equity ratio was 34.0% (up 0.6 points from the end of the previous consolidated fiscal year). (ii) Status of Cash Flows Net cash provided by operating activities was 48,555 million yen, an increase of 33,994 million yen from 14,560 million yen provided in the same period of the previous consolidated fiscal year. This was mainly due to a decrease of 45,082 million yen in trade receivables, despite a decrease of 6,246 million yen in trade payables. Net cash used in investing activities was 28,312 million yen, an increase in outflow (a decrease in inflow) of 14,825 million yen from 13,487 million yen in cash used in the same period of the previous consolidated fiscal year. This was mainly due to a decrease of 16,880 million yen in proceeds from sale of property, plant and equipment and intangible assets, despite a decrease of 4,403 million yen in purchase of property, plant and equipment and intangible assets. Net cash used in financing activities was 8,126 million yen, a decrease in outflow (an increase in inflow) of 5,369 million yen from 13,496 million yen used in the same period of the previous consolidated fiscal year. This was mainly due to an increase of 56,429 million yen in proceeds from long-term borrowings, an increase of 50,000 million yen in proceeds from issuance of bonds, a decrease of 21,000 million yen in repayments of long-term borrowings, and a decrease of 5,132 million yen in decrease (increase) in cash segregated as deposits for purchase of treasury shares, despite a decrease of 129,391 million yen in net increase (decrease) in short-term borrowings. When exchange differences are added to the above cash flows, cash and cash equivalents as of August 31, 2026 amounted to 91,417 million yen, up 13,976 million yen from the end of the previous consolidated fiscal year. Total operating revenue Operating revenue Operating profit Business profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Yen Forecasts announced on April 14 1,055,000 503,000 57,500 64,300 57,000 38,000 129.68 Forecasts revised on October 15 1,080,000 509,100 59,000 66,000 60,000 38,000 129.68 Change (amount) 25,000 6,100 1,500 1,700 3,000 － － Change (%) 2.4 1.2 2.6 2.6 5.3 － － Results for the previous year (Year ended February 28, 2026) 1,032,287 492,370 53,516 59,624 56,879 (8,194) (27.44) (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements With regard to our consolidated earnings forecast, following the announcement of our forecast figures when we announced our financial results on April 14, 2026, we have revised as follows our total operating revenue, operating revenue, operating profit, business profit, and ordinary profit. This revision takes into account trends in net sales and SG&A expenses in the Department Stores in Japan segment, first-half performance in the Finance segment and Overseas Commercial Property Development, and other factors. Consolidated earnings forecasts for the year ending February 28, 2027 (from March 1, 2026 to February 28, 2027) - 5 -
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(Millions of yen) As of February 28, 2026 As of August 31, 2026 Assets Current assets Cash and deposits 79,187 95,899 Notes and accounts receivable - trade, and contract assets 195,762 173,242 Operating loans 10,695 12,975 Merchandise and finished goods 35,233 34,141 Real estate for sale － 3,684 Work in process 366 409 Raw materials and supplies 1,050 1,026 Other 42,614 47,297 Allowance for doubtful accounts (558) (542) Total current assets 364,353 368,134 Non-current assets Property, plant and equipment Buildings and structures, net 194,601 192,205 Land 422,536 420,927 Leased assets, net 409 318 Right-of-use assets, net 114,879 112,957 Other, net 26,713 31,267 Total property, plant and equipment 759,140 757,675 Intangible assets Goodwill 2,729 2,554 Leasehold interests in land 11,183 11,276 Right-of-use assets 6,180 5,844 Other 18,093 19,692 Total intangible assets 38,187 39,369 Investments and other assets Investment securities 131,966 138,449 Guarantee deposits 23,595 23,262 Retirement benefit asset 3,349 10,937 Other 28,395 26,658 Allowance for doubtful accounts (2,759) (5,252) Total investments and other assets 184,547 194,054 Total non-current assets 981,876 991,099 Total assets 1,346,229 1,359,233 2. Interim Consolidated Financial Statements and Major Notes (1) Interim Consolidated Balance Sheets - 6 -
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(Millions of yen) As of February 28, 2026 As of August 31, 2026 Liabilities Current liabilities Notes and accounts payable - trade 132,817 128,735 Short-term borrowings 140,748 20,139 Current portion of bonds payable 10,495 10,485 Lease liabilities 9,760 10,372 Asset retirement obligations 71 671 Income taxes payable 3,508 5,022 Contract liabilities 105,865 105,334 Gift certificates 37,483 36,600 Provision for point card certificates 2,244 2,184 Other 99,765 94,195 Total current liabilities 542,760 413,743 Non-current liabilities Bonds payable 10,000 60,000 Long-term borrowings 120,170 194,153 Lease liabilities 123,297 121,704 Asset retirement obligations 5,495 4,428 Retirement benefit liability 28,559 34,599 Provision for retirement benefits for directors (and other officers) 341 349 Other 37,854 39,809 Total non-current liabilities 325,719 455,045 Total liabilities 868,480 868,788 Net assets Shareholders' equity Share capital 66,025 66,025 Capital surplus 37,528 37,528 Retained earnings 307,042 318,073 Treasury shares (14,886) (14,875) Total shareholders' equity 395,709 406,752 Accumulated other comprehensive income Valuation difference on available-for-sale securities 12,930 12,684 Deferred gains or losses on hedges 0 0 Revaluation reserve for land 2,463 2,463 Foreign currency translation adjustment 31,576 33,211 Remeasurements of defined benefit plans 7,109 6,534 Total accumulated other comprehensive income 54,079 54,894 Non-controlling interests 27,960 28,797 Total net assets 477,749 490,444 Total liabilities and net assets 1,346,229 1,359,233 - 7 -
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(Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Operating revenue 235,362 244,131 Net sales 191,987 197,154 Cost of sales 91,874 92,175 Gross profit 100,112 104,978 Other operating revenue 43,375 46,977 Operating gross profit 143,487 151,956 Selling, general and administrative expenses Advertising expenses 5,258 5,117 Provision for point card certificates 990 1,062 Provision of allowance for doubtful accounts 525 595 Remuneration, salaries and allowances for directors (and other officers) 32,200 33,297 Retirement benefit expenses 189 21 Rent expenses on real estate 11,688 11,916 Other 68,980 72,422 Total selling, general and administrative expenses 119,834 124,434 Operating profit 23,653 27,521 Non-operating income Interest income 910 780 Dividend income 434 826 Gain on adjustment of unused certificates 1,103 1,198 Share of profit of entities accounted for using equity method 1,066 2,126 Foreign exchange gains － 1,025 Gain on receipt of donated non-current assets 392 312 Other 204 343 Total non-operating income 4,111 6,613 Non-operating expenses Interest expenses 3,835 5,428 Foreign exchange losses 1,079 － Other 839 641 Total non-operating expenses 5,754 6,069 Ordinary profit 22,010 28,066 Extraordinary income Gain on sale of non-current assets 12,606 405 Subsidy income － 41 Other 90 － Total extraordinary income 12,697 446 Extraordinary losses Loss on retirement of non-current assets 2,097 1,663 Loss on store closings 265 14 Impairment losses 368 589 Provision of allowance for doubtful accounts － 2,652 Other 6 125 Total extraordinary losses 2,738 5,045 Profit before income taxes 31,968 23,466 Income taxes - current 4,710 3,343 Income taxes - deferred 5,580 2,902 Total income taxes 10,290 6,246 Profit 21,677 17,219 Profit attributable to non-controlling interests 458 1,205 Profit attributable to owners of parent 21,219 16,014 (2) Interim Consolidated Statements of Income and Interim Consolidated Statements of Comprehensive Income (Interim Consolidated Statements of Income) - 8 -
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(Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Profit 21,677 17,219 Other comprehensive income Valuation difference on available-for-sale securities 1,152 (283) Deferred gains or losses on hedges (4) 0 Revaluation reserve for land (264) － Foreign currency translation adjustment (3,575) 872 Remeasurements of defined benefit plans, net of tax (364) (587) Share of other comprehensive income of entities accounted for using equity method (1,228) 1,031 Total other comprehensive income (4,284) 1,033 Comprehensive income 17,393 18,253 Comprehensive income attributable to Comprehensive income attributable to owners of parent 18,162 16,829 Comprehensive income attributable to non-controlling interests (769) 1,423 (Interim Consolidated Statements of Comprehensive Income) - 9 -
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(Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Cash flows from operating activities Profit before income taxes 31,968 23,466 Depreciation 16,338 17,498 Impairment losses 368 589 Amortization of goodwill 179 223 Increase (decrease) in allowance for doubtful accounts 328 2,470 Increase (decrease) in retirement benefit asset and liability, net (2,387) (1,765) Increase (decrease) in provision for retirement benefits for directors (and other officers) 10 7 Increase (decrease) in provision for point card certificates (100) (59) Interest and dividend income (1,345) (1,607) Interest expenses 3,835 5,428 Share of loss (profit) of entities accounted for using equity method (1,066) (2,126) Loss (gain) on sale of non-current assets (12,606) (405) Loss on retirement of non-current assets 2,097 1,663 Decrease (increase) in trade receivables (24,821) 20,260 Decrease (increase) in inventories 45 559 Increase (decrease) in trade payables 2,235 (4,010) Increase (decrease) in deposits received (409) (1,152) Increase (decrease) in accounts payable - other 1,270 (2,989) Increase (decrease) in contract liabilities 2,583 (817) Other, net 1,754 (6,240) Subtotal 20,279 50,994 Interest and dividends received 3,306 3,758 Interest paid (3,744) (4,839) Income taxes refund (paid) (5,281) (1,357) Net cash provided by (used in) operating activities 14,560 48,555 Cash flows from investing activities Payments into time deposits (2,124) (2,704) Proceeds from withdrawal of time deposits 390 105 Purchase of short-term and long-term investment securities (1,306) (1,970) Proceeds from liquidation of subsidiaries 360 － Purchase of property, plant and equipment and intangible assets (24,625) (20,221) Proceeds from sale of property, plant and equipment and intangible assets 17,546 665 Payments for asset retirement obligations (87) (560) Purchase of shares of subsidiaries and associates (1,013) (3,767) Net decrease (increase) in short-term loans receivable (2,479) 317 Long-term loan advances (86) (981) Other, net (62) 805 Net cash provided by (used in) investing activities (13,487) (28,312) Cash flows from financing activities Net increase (decrease) in short-term borrowings － (129,391) Proceeds from long-term borrowings 30,000 86,429 Repayments of long-term borrowings (24,500) (3,500) Proceeds from issuance of bonds － 50,000 Redemption of bonds － (759) Repayments of lease liabilities (4,490) (5,335) Purchase of treasury shares (4,866) (0) Decrease (increase) in cash segregated as deposits for purchase of treasury shares (5,132) － Dividends paid (3,943) (4,981) Other, net (562) (587) Net cash provided by (used in) financing activities (13,496) (8,126) Effect of exchange rate change on cash and cash equivalents (1,928) 1,860 Net increase (decrease) in cash and cash equivalents (14,352) 13,976 Cash and cash equivalents at beginning of period 88,559 77,441 Cash and cash equivalents at end of period 74,207 91,417 (3) Interim Consolidated Statements of Cash Flows - 10 -
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(4) Notes to Interim Consolidated Financial Statements [Notes on Premise of Going Concern] Not applicable. [Changes in Presentation] (Interim Consolidated Balance Sheets) Asset retirement obligations, which had been included in “Other” of “Current liabilities” in the previous consolidated fiscal year, are presented as “Asset retirement obligations” (71 million yen for the previous consolidated fiscal year) from the interim consolidated period under review due to increased materiality. [Notes on Substantial Changes in the Amount of Shareholders’ Equity] Not applicable. [Changes in Significant Subsidiaries During the Interim Consolidated Period] (i) Significant changes in the scope of consolidation During the six months ended August 31, 2026, the following one company was excluded from the scope of consolidation. Liquidation completed: Gifu Takashimaya Co., Ltd. (ii) Significant changes in the scope application of the equity method During the six months ended August 31, 2026, the following two companies were newly included in the scope of equity method accounting. New investmet: Sanitas I LLC Share acquisition: Hoang Nam Project Investment Corporation - 11 -
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Department Stores in Japan Overseas Department Stores Commercial Property Development In Japan Overseas Commercial Property Development Finance Construction & Design Total of Reportable Segments Others (Note 1) Total Adjustments (Note 2) Consolidated (Note 3) Operating revenue: Outside Customers 146,401 16,093 20,616 7,544 10,056 15,592 216,304 19,058 235,362 － 235,362 Intersegment 9,381 432 5,123 286 2,121 2,307 19,652 7,847 27,499 (27,499) － Total 155,782 16,525 25,739 7,831 12,177 17,900 235,956 26,905 262,862 (27,499) 235,362 Segment profit 9,571 3,790 3,419 2,683 2,688 1,530 23,684 804 24,488 (835) 23,653 [Segment Information] (i) Six months ended August 31, 2025 (from March 1, 2025 to August 31, 2025) a). Information about amounts of operating revenue and profit by reportable segment (Millions of yen) Notes: 1. The “Others” segment refers to business segments not included in reportable segments, such as the home shopping business, the wholesale business, the advertising and promotion business and restaurant business. 2. Adjustments to segment profit of (835) million yen consist of (303) million yen in eliminations of intersegment transactions and (531) million yen in depreciation of company-wide assets not allocated to each reportable segment. 3. Segment profit is adjusted with operating profit in the interim consolidated statements of income. b). Information about impairment loss of non-current assets or goodwill, etc. by reportable segment (Significant impairment loss on non-current assets) An impairment loss of 173 million yen was recorded in the “Department Stores in Japan” segment, 133 million yen in the “Commercial Property Development in Japan” segment, and 62 million yen in the “Others” segment. - 12 -
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Department Stores in Japan Overseas Department Stores Commercial Property Development In Japan Overseas Commercial Property Development Finance Construction & Design Total of Reportable Segments Others (Note 1) Total Adjustments (Note 2) Consolidated (Note 3) Operating revenue: Outside Customers 149,134 18,636 21,240 8,684 10,917 16,151 224,764 19,367 244,131 － 244,131 Intersegment 9,105 433 5,220 278 2,153 1,315 18,506 7,926 26,432 (26,432) － Total 158,239 19,069 26,460 8,963 13,070 17,467 243,271 27,293 270,564 (26,432) 244,131 Segment profit 12,458 4,601 3,455 3,197 3,145 1,061 27,919 641 28,560 (1,038) 27,521 (ii) Six months ended August 31, 2026 (from March 1, 2026 to August 31, 2026) a). Information about amounts of operating revenue and profit by reportable segment (Millions of yen) Notes: 1. The “Others” segment refers to business segments not included in reportable segments, such as the home shopping business, the wholesale business, the advertising and promotion business and restaurant business. 2. Adjustments to segment profit of (1,038) million yen consist of (455) million yen in eliminations of intersegment transactions and (583) million yen in depreciation of company-wide assets not allocated to each reportable segment. 3. Segment profit is adjusted with operating profit in the interim consolidated statements of income. b). Information about impairment loss of non-current assets or goodwill, etc. by reportable segment (Significant impairment loss on non-current assets) An impairment loss of 277 million yen was recorded in the “Department Stores in Japan” segment, 273 million yen in the “Commercial Property Development in Japan” segment, and 37 million yen in the “Others” segment. - 13 -
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Splitting company Newly incorporated company (1) Name Takashimaya Company, Limited Takashimaya Financial Holdings Co., Ltd. (2) Location 1-5, 5-chome, Namba, Chuo-ku, Osaka Chuo-ku, Tokyo (planned) (3) Representative President Yoshio Murata President (to be determined) (4) Description of business Department store business Corporate business Home shopping business Group business Management of Group companies in the Finance segment and ancillary activities, fund investment business, and consulting business, etc. (5) Share capital 66,025 million yen 100 million yen (6) Date of establishment August 20, 1919 March 1, 2027 (scheduled) (7) Number of issued shares 305,208,916 shares 20,000 shares (8) Fiscal year-end End of February End of February (9) Major shareholders and shareholding ratios The Master Trust Bank of Japan, Ltd. (trust account), etc. Takashimaya Company, Limited: 100% [Significant Subsequent Events] (Establishment of an Intermediate Holding Company by Company Split) The Company resolved at the meeting of the Board of Directors held on October 15, 2026 to establish an intermediate holding company by company split. 1. Objective of establishing an intermediate holding company It is to centralize the strategic planning functions and business management functions related to the Group’s Finance segment, and to strengthen the governance structure and risk management system. 2. Overview of the Companies Involved in the Company Split 3. Overview of the Companies Involved in the Company Split (1) Split method A simplified incorporation-type split solely by the Company in which the Company will be the splitting company and the newly established company will be the successor company. (2) Content of the business to be succeeded Based on the incorporation-type company split plan, on the effective date of this company split, the newly established company will succeed to all the shares held by the Company in Takashimaya Financial Partners Co., Ltd., Vaste Culture & Cie., Takashimaya Clay Capital Co., Ltd., and Hogaraka Trust Co., Ltd., as well as the other rights and obligations relating to the management of the business activities of subsidiaries involved in the Finance segment and ancillary activities, fund investment business, consulting business, and other businesses. 4. Effective date March 1, 2027 (scheduled) - 14 -