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Financial Results for the First Quarter of FY3 / 2027 ( Apr. 1 , 2026 - Mar. 31 , 2027 ) K's KENG 新 製品 が 安い ケーズデンキ KS ケーズデンキ 製品 が 安い ケーズデンキ あんしん パスポート KSK'S K'S HOLDINGS CORPORATION Announced on June 6 , 2026 Ver.1.0
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- 1 - - 1 - 1 1. Initiatives and Shareholder Returns 2. FY3/2027 Q1 Results 3. FY3/2027 Forecast (Apr. 2026 - Mar. 2027) 4. K’s Denki Initiatives Contents [note] First Quarter = Q1 = Apr. 1 – Jun. 30 Second Quarter = Q2 = Jul. 1 – Sep. 30 Third Quarter = Q3 = Oct.1 – Dec.31 Fourth Quarter = Q4 = Jan.1 – Mar.31 First Half = H1 = Apr. 1 – Sep. 30 Second Half = H2 = Oct. 1 – Mar. 31 Nine months ended Dec.31 = Q3YTD = Apr.1 – Dec.31 Full year = FY = Apr. 1 – Mar. 31 *No change from May 8, 2026
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- 2 - - 2 - 1. Initiatives and Shareholder Returns 2 *Excerpts from the “Medium-Term Management Plan 2027” announced on May 9, 2024 Generate stable profits by specializing in home appliance / electronics Medium-term Management Plan 2027 Pillars Streamline business processes and increase sales through DX Increase corporate value through enhanced capital efficiency Medium-term Management Plan 2027 – Principles １ ２ ３ Aim to lay the foundations for longer-term growth by re-examining existing store efficiency and boosting their customer service
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- 3 - - 3 - 1. Initiatives and Shareholder Returns (Dividend) 3 Dividend per share Total (yen) Fiscal year-end (yen) Second quarter-end (yen) 46.0024.0022.00FY3/2026 Actual 48.0024.0024.00FY3/2027 Forecast Shareholder return policy Target total payout : 80% Conduct flexible stock buybacks Target consolidated dividend payout ratio : 40% *Republished content announced on Nov. 6, 2025 Updated minimum dividend on May 8, 2026 Maintain a minimum annual dividend per share of 48 yen throughout the Medium-term Management Plan
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- 4 - - 4 - 110.63 103.13 96.22 182.66 141.70 110.17 41.64 57.08 91.31 129.43 0.00 40.00 80.00 120.00 160.00 200.00 FY3/18 FY3/19 FY3/20 FY 3/21 FY3/22 FY3/23 FY3/ 24 FY3/25 FY3/26 FY3/27 Forecast EPS 6.7 6.9 6.5 8.3 8.4 8.2 7.7 7.3 7.1 7.4 8.0 18.7 11.2 19.9 9.2 10.7 19.9 9.9 29.8% 62.8% 117.8% 50.6% 99.7% 82.9% 249.8% 286.8% 119.8% 37.1% -100.0% -25.0% 50.0% 125.0% 200.0% 275.0% 350.0% 0.0 37.5 75.0 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 Forecast Total cost of dividends, Purchase of treasury stocks and total return ratio dividends paid(left scale) purchases of treasury stocks(left scale) total return ratio(right scale) 15.0yen 15.0yen 15.0yen 15.0yen 20.0yen 22.0yen 22.0yen 22.0yen 22.0yen 24.0yen 16.5yen 15.0yen 15.0yen 25.0yen 23.0yen 22.0yen 22.0yen 22.0yen 24.0yen Total 31.5yen (Including a commemorative dividend of 1.5 yen) Total 30.0yen Total 30.0yen Total 40.0yen Total 43.0yen Total 44.0yen Total 44.0yen Total 44.0yen Total 46.0yen 28.5% 29.1% 31.2% 21.9% 30.3% 39.9% 105.7% 77.1% 50.4% 37.1% -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0.0yen 50.0yen 100.0yen FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 Forecast Transition of dividends per shares and dividend pay out ratio dividends per shares (middle) dividends per shares (term end) dividend payout ratio 4 1. Initiatives and Shareholder Returns (Dividend pay out ratio・Total payout ratio・EPS) *As of the end of March 2026 (yen) (billion yen)
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- 5 - - 5 - 59.8% 62.1% 64.6% 64.2% 62.5% 61.7% 61.4% 59.4% 58.9% 60.1% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 Forecast Equity Ratio 10.4% 9.6% 8.5% 14.7% 10.4% 7.6% 2.7% 3.7% 5.7% 7.8% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 Forecast ROE ROE Target 5 1. Initiatives and Shareholder Returns (ROE ・Equity Ratio) *As of the end of March 2026
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- 6 - - 6 - 6 1. Initiatives and Shareholder Returns (Dividend Yield・Shareholder Yield) Shareholder Yield Results Dividend Yield Results *Closing price as of the end of Mar. 2026 Dividend per share Dividend yield 46yen 2.75% Long-term holding not considered Mar. 31, 2026 Closing price 100 shares or more 500 shares or more 1,000 shares or more 3,000 shares or more 6,000 shares or more 10,000 shares or more 1,673.5yen Minimum Investment Amount Face value of the coupon Hospitality benefit yield Dividend yield +Hospitality benefit yield yen yen ％％ 167,350 2,000 1.20% 3.94% 836,750 6,000 0.72% 3.47% 1,673,500 10,000 0.60% 3.35% 5,020,500 20,000 0.40% 3.15% 10,041,000 40,000 0.40% 3.15% 16,735,000 60,000 0.36% 3.11% Long-term holding (1 year or more) considered Mar. 31, 2026 Closing price 100 shares or more 500 shares or more 1,000 shares or more 3,000 shares or more 6,000 shares or more 10,000 shares or more 1,673.5yen Minimum Investment Amount Face value of the coupon Hospitality benefit yield Dividend yield +Hospitality benefit yield yen yen ％％ 167,350 4,000 2.39% 5.14% 836,750 8,000 0.96% 3.70% 1,673,500 14,000 0.84% 3.59% 5,020,500 24,000 0.48% 3.23% 10,041,000 44,000 0.44% 3.19% 16,735,000 64,000 0.38% 3.13% (million yen) ( Total dividend (annual) ＋Amount of share buybac k)÷ Market capitalization *1 = FY3/2019 6,932 8,018 223,569 6.7% FY3/2020 6,566 18,780 217,584 11.6% FY3/2021 8,341 11,219 313,438 6.2% FY3/2022 8,454 19,999 240,491 11.8% FY3/2023 8,227 9,286 212,786 8.2% FY3/2024 7,723 10,713 234,015 7.9% FY3/2025 7,237 19,999 219,420 12.4% FY3/2026 3,717 9,999 258,573 5.3% *1 Market capitalization (excluding treasury stock) is calculated based on the share price at the end of the fiscal year. Shareholder Yield
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- 7 - - 7 - 7 1. Initiatives and Shareholder Returns (Past results) yen ％ yen ％ yen ×1,000 stock unit yen in million FY3/2000 5.00 15.5 633 0.79 32.21 FY3/2001 6.25 18.6 425 1.47 33.66 Share listed on the 2nd section of the TSE FY3/2002 5.00 14.5 324 1.54 34.45 299 405 Share listed on the 1st section of the TSE Share buyback resolution in February 2002 FY3/2003 5.00 18.0 350 1.43 27.76 1:1.2 FY3/2004 5.00 13.4 703 0.71 37.36 240 345 Share buyback resolution in June 2003 FY3/2005 5.00 12.3 691 0.72 40.78 1:1.2 Acquired GIGAS and KANSAI K'S as subsidiary FY3/2006 5.00 12.4 860 0.58 40.48 1:1.2 Acquired BIG ･S as subsidiary FY3/2007 7.50 18.5 785 0.96 40.53 Acquired Hokuetsu K'S as subsidiary,Kyushu K'S founded FY3/2008 7.50 17.0 497 1.51 44.20 2,927 6,973 Acquired Denkodo as subsidiary Share buyback resolution in November 2007 and March 2008 FY3/2009 7.50 13.8 330 2.27 54.53 FY3/2010 7.50 8.9 574 1.31 83.92 1:1.2 FY3/2011 11.25 10.7 600 1.88 104.99 3,827 8,894 Share buyback resolution in August 2010 and February 2011 FY3/2012 15.00 13.7 667 2.25 109.32 1,500 4,208 1st interim dividend begins Share buyback resolution in February 2012 FY3/2013 15.00 24.0 751 2.00 62.40 1,000 2,057 Share buyback resolution in November 2012 FY3/2014 17.50 21.1 717 2.44 82.87 1,500 4,624 Share buyback resolution in October 2013 FY3/2015 17.50 24.0 971 1.80 72.85 3,246 9,999 Share buyback resolution in December 2014 FY3/2016 20.00 24.6 933 2.14 81.16 1:2 June 2016 stock split implementation 3,881 7,999 Share buyback resolution in November 2016 Disposal of 10 million shares on March 31, 2017 FY3/2018 31.50 28.5 1,471 2.14 110.63 1:2 FY3/2019 30.00 29.1 982 3.05 103.13 7,000 8,018 Share buyback resolution in November 2018 FY3/2020 30.00 31.2 1,023 2.93 96.22 15,711 18,780 Share buyback resolution in August 2019 and February 2020 8,095 11,219 Share buyback resolution in February 2020 and Decenber 2020 Disposal of 10 million shares on March 31, 2021 FY3/2022 43.00 30.3 1,263 3.40 141.70 16,520 19,999 Share buyback resolution in August 2021 and February 2022 7,832 9,286 Share buyback resolution in February 2023 Disposal of 25 million shares on March 31, 2023 Share buyback resolution in February 2023 and May 2023 Disposal of acquisitions on December 31, 2023 Share buyback resolution in May 2024 Disposal of acquisitions on March 31, 2025 Share buyback resolution in May 2025 Disposal of acquisitions on March 31, 2026 FY3/2027 Forecast 48.00 37.1 129.43 * Dividend per stock, stock price and EPS are taking into consideration stock split in April 2018 13,609 19,999 44.00 77.1 1,362 44.00 39.9 FY3/2024 FY3/2023 10,713 1,340 3.28 41.64 8,320 FY3/2025 44.00 105.7 57.08 3.23 FY Dividend per stock *1 Dividend Ratio 21.9 40.00 FY3/2017 FY3/2021 Stock price *1 Dividend Yield 1,163 3.78 Stock buyback notesEPS *1 Stock split 100.28 182.66 2.631,521 110.17 27.50 27.4 1,021 2.69 91.31 6,721 9,999 FY3/2026 46.00 50.4 1,673.5 2.75
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- 8 - - 8 - 8 2. FY3/2027 Q1 Results Consolidated Profit and Loss Special demand for air conditioners at “The 2027 Air Conditioner Problem.” Sales and Profit growth. (million yen) Actual % of sales Actual % of sales ＋/－ %YoY 177,787 100.0 199,909 100.0 +22,121 112.4 Gross profit 50,491 28.4 59,228 29.6 +8,737 117.3 45,220 25.4 46,746 23.4 +1,526 103.4 Personnel expenses 18,064 10.2 18,818 9.4 +754 104.2 Advertising expenses 2,620 1.5 2,752 1.4 +132 105.0 Rent expenses on land and buildings 8,062 4.5 8,062 4.0 +0 100.0 Depreciation 3,264 1.8 3,031 1.5 △ 233 92.9 Commission expenses 2,275 1.3 2,753 1.4 +477 121.0 Outsourcing expenses 2,573 1.4 2,803 1.4 +230 108.9 Utilities expenses 1,697 1.0 1,492 0.7 △ 206 87.9 Other 6,662 3.7 7,033 3.5 +370 105.6 Operating profit 5,270 3.0 12,481 6.2 +7,211 236.8 5,955 3.3 13,396 6.7 +7,441 225.0 4,565 2.6 9,161 4.6 +4,595 200.7 Net sales SG&A Ordinary profit Profit attributable to owners of parent FY3/2026 Q1 (Apr.1-Jun.30, 2025) FY3/2027 Q1 (Apr.1-Jun.30, 2026)
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- 9 - - 9 - 4,000 6,000 8,000 10,000 12,000 14,000 16,000 9 2. FY3/2027 Q1 Results Operating profit Increase/decrease table (decrease from the previous year) “Personnel expenses” increase (754) “Other” increase (525) “Rents expenses on land and buildings” ±0 “Depreciation” decrease +233 “Commission expenses” increase (478) “Outsourcing expenses” increase (230) Increase due to an increase in credit card payments resulting from an increase in online shop sales Increase due to the growth of mobile barcode payment users “Utilities expenses” decrease +250 Decrease in unit price of electricity due to switching of electric power companies Increase in taxes and dues, supplies cost, freight charges, hygiene expense, and rent cost “Advertising expenses” increase (132) “SG & A” increase (1,526) FY3/2027 Q1 Operating profit 12,481 FY3/2026 Q1 Operating profit 5,270 +7,211 (million yen) “Gross profit” increase +8,737 160 new employees added Increase in basic salary due to wage increase Increase due to the increase in online shop sales. Decrease due to impairment loss Increased due to strong sales of large- scale products accompanying delivery and installation The improvement in the gross profit margin and the increase in net sales were successful. 0 Same level as previous year due to the impact of store openings and closings
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- 10 - - 10 - 10 Same-store sales Q1 112.7% ・There was a rush demand for air conditioners due to concerns about price hikes caused by the “The 2027 Air Conditioner Problem” ・TVs strong due to the World Cup ・PCs decreased in reaction to the end of Windows10 support. Gross profit margin Q1 29.6 ％ (YoY 28.4％) ・Air conditioners with relatively high gross margin performed well, pushing up the gross margin mix. ・Rebates were secured due to strong sales and steady purchases. ・Successful efforts to promote sales of high value-added products ・Competitive environment has not intensified. ・Personnel expenses increased from the previous year due to increase the basic wage follow the management policy of "treasure our employees.“ ・Advertising expenses increased due to the increase in online shop sales. ・Commission expenses increased due to an increase in credit card payments resulting from an increase in online shop sales and an increase in mobile barcode payment users. ・Outsourcing expenses increased due to strong sales of large-scale products that require delivery and installation. ・Utilities expenses decreased due to a decrease in electricity unit prices resulting from the switch of electric power companies. ・Depreciation decreased due to the impairment loss recorded at the end of the previous fiscal year. Net sales [YoY] Q1 112.4% SG & A [YoY] Q1 103.4% Gross profit [YoY] Q1 117.3% 2. FY3/2027 Q1 Results Consolidated Financial Highlights
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- 11 - - 11 - 11 2. FY3/2027 Q1 Results Impact of Undelivered Products 11 (million yen) Q1 Q2 H1 Q3 Q4 H2 Total Reversal +160 +170 +160 +130 +80 +130 +160 Recorded (170) (130) (130) (80) (190) (190) (190) Difference (10) 40 30 50 (110) (60) (30) Q1 Q2 H1 Q3 Q4 H2 Total Reversal +190 Recorded (230) Difference (40) FY3/2026 FY3/2027
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- 12 - - 12 - 12 2. FY3/2027 Q1 Results Consolidated Merchandise Sales *Net sales are rounded down to the nearest million yen and year-on-year comparisons are rounded to the first decimal place. (million yen) Sales % of sales Sales % of sales %YoY TV 12,885 7.2 13,949 7.0 108.3 Blu-ray/DVD/Other 3,206 1.8 3,122 1.6 97.4 Audio 3,058 1.7 3,134 1.6 102.5 Subtotal 19,150 10.8 20,206 10.1 105.5 PC・information device 10,796 6.1 10,059 5.0 93.2 PC peripheral device 7,426 4.2 7,814 3.9 105.2 Mobile phone 21,004 11.8 24,012 12.0 114.3 Other 5,069 2.9 5,296 2.6 104.5 Subtotal 44,296 24.9 47,183 23.6 106.5 Refrigerator 16,400 9.2 16,560 8.3 101.0 Washing machine 16,503 9.3 17,219 8.6 104.3 Vacuum cleaner 5,694 3.2 5,556 2.8 97.6 Cooking appliance 11,369 6.4 11,858 5.9 104.3 Beauty & health appliance 7,474 4.2 8,115 4.1 108.6 Other 5,909 3.3 6,511 3.3 110.2 Subtotal 63,352 35.6 65,821 32.9 103.9 Air conditioner 32,484 18.3 44,510 22.3 137.0 Other 4,158 2.3 3,486 1.7 83.8 Subtotal 36,642 20.6 47,996 24.0 131.0 14,345 8.1 18,701 9.4 130.4 177,787 100.0 199,909 100.0 112.4 Apr. 1-Jun. 30, 2026 Q1 Product ＼ FY Total Others Apr. 1-Jun. 30, 2025 Visual・Audio ITs Home AppliancesSeasonal
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- 13 - - 13 - 13 2. FY3/2027 Q1 Results POS Results (Preliminary monthly sales data) 【1．All-store sales (% Year on Year) 】 Apr. 2026 May 2026 Jun. 2026 Q1 Jul. 2026 Total Group Total 116.0 143.3 90.3 114.8 115.8 115.1 【2．Sales in products(% Year on Year) 】 Apr. 2026 May 2026 Jun. 2026 Q1 Jul. 2026 Total TV 106.8 116.7 103.4 108.6 108.7 108.6 PC, information device 94.0 93.9 92.9 93.6 77.3 89.6 Refrigerator 107.3 118.1 83.4 100.5 103.6 101.5 Washing machine 109.5 112.4 96.2 105.6 110.1 106.9 Vacuum cleaner 100.1 99.8 93.7 97.8 99.9 98.4 Cooking appliance 103.2 109.5 101.9 104.8 108.0 105.6 Beauty & Health appliance 109.7 112.2 107.8 109.9 113.4 110.8 Air conditioner 150.0 233.2 71.9 139.2 138.8 139.1 Product
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- 14 - - 14 - 14 ① Merchandise YoY (compared to Jun. 31, 2025) About +8 billion yen QoQ (compared to Mar. 31, 2026) About +13 billion yen ② Equity ratio 58.9% at end of Mar. 2026 → 58.1% at end of Jun. 2026 (0.8) points 14 2. FY3/2027 Q1 Results Consolidated Balance Sheet (million yen) Mar. 31, 2026 Jun. 30, 2026 +/- Mar. 31, 2026 Jun. 30, 2026 +/- 235,626 249,686 14,059 111,959 119,960 8,001 Cash & deposits 19,158 28,673 9,514 Accounts payable-trade 50,788 59,514 8,726 accounts receivable-trade 33,706 23,473 (10,233) Short-term borrowing 2,500 0 (2,500) Merchandise 175,116 187,970 12,853 ① Other 58,671 60,445 1,774 Other 7,644 9,570 1,925 61,647 62,973 1,325 186,856 187,593 737 Long-term borrowings 40,000 40,000 0 Property, plant & equipment 114,207 116,541 2,334 Lease liabilities 15,700 16,956 1,256 Intangible assets 5,107 5,229 121 Other 5,947 6,016 69 Investments & other assets 67,541 65,822 (1,718) 173,607 182,933 9,326 Long-term loans receivable 14,648 14,240 (407) 248,875 254,346 5,470 ② Lease & guarantee deposits 24,443 24,424 (19) Shareholders' equity 248,160 253,637 5,476 Other 28,448 27,157 (1,291) Other 715 709 (6) 422,482 437,279 14,797 422,482 437,279 14,797 Non-current assets Total assets Total liabilities and net assets Non-current liabilities Total net assets Current assets Current liabilities Total liabilities
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- 15 - - 15 - 15 2. FY3/2027 Q1 Results Details of store openings and closings Store Location Date Sales floor area Store Location Date Sales floor area Tokai Aichi 4/10/2026 2,730 ㎡ Niigata Minami Niigata 4/27/2026 3,345 ㎡ Fujieda Shizuoka 6/1/2026 3,341 ㎡ Mobara Honten Chiba 6/10/2026 4,960 ㎡ Mobara Chiba 6/11/2026 4,198 ㎡ Meike Inter Honten Niigata 6/25/2026 5,427 ㎡ Total 12,356 ㎡ Total 11,646 ㎡ End of Mar. 31, 2026 Total Number of Stores 556 Total Sales floor area 2,059,953 ㎡ YoY 100.0% Average s ales floor area per s tore 3,705 ㎡ (Reference) H1 Plan 21,300 ㎡ H1 Plan 18,521 ㎡ H2 Plan 16,571 ㎡ H2 Plan 7,293 ㎡ FY Plan 37,871 ㎡ FY Plan 25,814 ㎡ End of Mar. 31, 2026 (Plan ) Total Number of Stores 558 Total Sales floor area 2,071,301 ㎡ YoY 100.6% Average s ales floor area per s tore 3,712 ㎡ 5 store 5 store 4 store 2 store 9 store 7 store 3 stores 3stores Q1 Open Close
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- 16 - - 16 - ●Number of Stores (stores) Open Close Open Close Open Close Directly managed Stores 552 554297 5 5 4 Franchisee's 4 4 Total 556 554297 5 5 8 +/- + 2 stores ●Sales floor area (㎡) Open Close Open Close Open Close Directly managed Stores 2,051,201 21,300 18,521 16,571 7,293 37,871 25,814 2,063,258 Franchisee's 8,042 8,042 Total 2,059,244 21,300 18,521 16,571 7,293 37,871 25,814 2,071,301 +/- + 12,057 ㎡ Y o Y 100.6% Average sales floor area per store 3,712 ㎡ Mar. 31, 2026 H1 H2 FY Mar. 31, 2027 Mar. 31, 2026 H1 H2 FY Mar. 31, 2027 3. FY3/2027 Forecast (Apr.2026 - Mar.2027) Plans regarding Store Openings and Closings, FY3/2027 16 Store capital investment planning: 16 billion yen (including renovation) *No change from May 8, 2026
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- 17 - - 17 - 17 3. FY3/2027 Forecast (Apr.2026 - Mar.2027) Air conditioners are expected to drive the performance due to the "The 2027 Air Conditioner Problem.“* Forecast to Sales and Profit growth. Actual % of sales Plan % of sales %YoY Actual % of sales Plan % of sales %YoY 376,656 100.0 398,000 100.0 105.7% 759,710 100.0 785,000 100.0 103.3% 104,390 27.7 111,500 28.0 106.8% 210,213 27.7 219,500 28.0 104.4% 91,363 24.3 94,000 23.6 102.9% 183,414 24.1 189,000 24.1 103.0% Personnel expenses 36,154 9.6 37,700 9.5 104.3% 72,929 9.6 75,900 9.7 104.1% Advertising expenses 4,947 1.3 5,200 1.3 105.1% 10,321 1.4 11,000 1.4 106.6% Rent expenses on land and buildings 16,152 4.3 16,200 4.1 100.3% 32,300 4.3 32,500 4.1 100.6% Depreciation 6,581 1.7 6,050 1.5 91.9% 13,400 1.8 12,400 1.6 92.5% Commission expenses 4,748 1.3 5,100 1.3 107.4% 9,542 1.3 10,000 1.3 104.8% Outsourcing expenses 5,327 1.4 5,700 1.4 107.0% 10,503 1.4 11,200 1.4 106.6% Utilities expenses 3,937 1.0 3,980 1.0 101.1% 7,705 1.0 7,800 1.0 101.2% Other 13,513 3.6 14,070 3.5 104.1% 26,710 3.5 28,200 3.6 105.6% 13,026 3.5 17,500 4.4 134.3% 26,799 3.5 30,500 3.9 113.8% 14,571 3.9 18,800 4.7 129.0% 30,579 4.0 33,500 4.3 109.5% 10,501 2.8 13,100 3.3 124.7% 14,317 1.9 20,000 2.5 139.7% Ordinary profit Profit attributable to owners of parent FY3/2026 FY3/2027 ForecastFY3/2026 Net sales Gross profit SG&A Operating profit FY3/2027 Forecast (million yen) H1 (Apr.1-Sep.30) FY (Apr.1-Mar.31) *The 2027 Air Conditioner Problem is a concern about price increases due to the increase in the energy-saving standards in April 2027, becoming apparent toward the end of the fiscal year. *No change from May 8, 2026
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- 18 - - 18 - 18 3. FY3/2027 Forecast (Apr.2026 - Mar.2027) Highlights Net sales Gross profit SG & A [FY] All stores: 103.3 % YoY, Same-stores: 102.8 % YoY [FY] Gross profit margin: 28.0% (YoY 27.7%) [FY] YoY: 103.0%, SGA ratio: 24.1%, SGA ratio in previous year: 24.1% [H1] All stores: 105.7 % YoY, Same-stores: 105.2 % YoY [H2] All stores: 101.1 % YoY, Same-stores: 100.5 % YoY • Last-minute demand for air conditioners arose from concerns over price increases due to "The 2027 Air Conditioner Problem“ • The end of an inflationary mindset and a deflationary economy in which prices will fall +Uncertainty over the future due to reports of a semiconductor shortage and tensions in middle east ⇒Switch mindset to “Should buy now" rather than postponing replacement [H1] Gross profit margin: 28.0% (YoY 27.7%) [H2] Gross profit margin: 27.9% (YoY 27.6%) • We assume that the ratio of PCs and mobile phones, which have low gross profit margins, will decrease year on year. While the ratio of air conditioners, which have high gross profit margins, will increase. The result expect this to work in a direction to push up gross profits. Gross profit margin is planned to be + 0.3 points YoY. • The competitive environment will not intensify. • Continue to focus on increasing sales of high value-added products [H1] YoY: 102.9%, SGA ratio: 23.6% [H2] YoY: 103.2%, SGA ratio: 24.5% • Personnel expenses are planned at 104.1% due to basic wage increases and new hires • Advertising expenses are expected to increase compared to the previous fiscal year due to opening of new stores and increase in e-commerce sales (aiming to achieve the Medium-Term Plan target). However, the sales ratio will remain within 1.5% through combination with digital media. • Commission expenses increased 104.8% reflecting the increasing trend of cashless payment ratio and commission increase due to increase in EC sales. • Outsourcing expenses are planned to be 106.6% due to an increasing cost trend, such as an increase in allowances for delivery partner stores due to soaring gasoline prices and the enforcement of the "Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators". • Utilities expenses are planned to be 101.2%, although there is a strong sense of uncertainty due to the uncertain situation inmiddle east. *No change from May 8, 2026
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- 19 - - 19 - 19 Visual Home appliance PC and others Seasonal product 3. FY3/2027 Forecast (Apr.2026 - Mar.2027) product forecasts ●TV ・Expectations for excitement at the World Cup ・Replacement demand for large TVs of 65 inches or larger, which are easy to see on a large screen, will continue. ・High image quality models are expected to grow further with the appearance of "RGB MiniLED“ ●Audio ・The market for earphones that have high sound quality and can "hear while doing something" has expanded. ・Home theaters are also drawing attention as products related to large-screen, high-resolution TVs. ●Refrigerators ・Buyers with the 2010 eco-points have arrived at the replacement cycle. Expectations for increased demand ・Each local government has a subsidy program for energy-saving home appliances. Models with high energy-saving performance continue to be popular. ・Replacement demand for high-quality mid-sized units due to an increase in small-sized homes and small-sized households ●Washing machine ・Due to the appearance of the Front-Loading Washer-Dryer that is less than 100,000 yen, replacement from the vertical type has increased. ・The compact type is popular especially for those who want to buy it but have given up on the installation space. ・The unit price of vertical washing machines is also expected to increase due to an increase in replacement with value-added models such as automatic detergent insertion and low-height, easy-to-use large capacity washing machines. ●Vacuum cleaner ・The appearance of a small Roomba suitable for Japanese-style houses. Motivation for the first robot purchase ・Increase in replacement purchases of high-performance models such as those with high suction power and water wiping function among early robot purchasers ・Increase in variations such as clean-dock type and mist / handy pressure washers ●Cooking appliance ・Models equipped with an "infrared sensor" that can heat evenly are popular. ・High-grade rice cookers that "cook rice deliciously" continued to perform well. ●Beauty & Health appliance ・High quality hair dryers and curling irons performed well due to increased awareness of "beautiful hair" among both men and women ・Health concerns have led to an increase in demand for specially-designated medical equipment requiring maintenance, such as electrocardiographs that can be recorded using smartphones. ・Products for the senior generation, such as cuff-type hearing aids, and Hand Therapy Device, have appeared one after another. ●Computer ・Replacement demand will run its course due to the end of Windows 10 support in October 2025. ・Concerns about prolonged price increases due to the semiconductor shortage caused by global AI demand ・The lineup of AI PCs has been expanded and their use is gradually spreading. ●Mobile batteries ・Demand for next-generation models with low ignition risk, safety, long life, and high unit price is expected. ●Telephone & Fax ・Continued demand for models with fraudulent call protection functions due to increased awareness of crime prevention ●Mobile phone ・Although there are concerns about price increases due to semiconductor shortages, replacement of mobile phones purchased under the residual value method two years ago will continue. ●Air conditioners ・Concerns over price increases due to the increase in energy conservation standards in April 2027 Last-minute demand for the so-called "The 2027 Air Conditioner Problem“ ・Tokyo Zero Emission Points, the Tokyo metropolitan government's subsidy program for purchasing energy-saving home appliances, continued ・The Meteorological Agency predicts that summer temperatures will be high nationwide. ・Air conditioners as year-round products are increasingly recognized. Energy-saving and additional functions are popular. ・Ultra-energy-saving types and automatic cleaning types are popular due to the increasing awareness of electricity saving. ・The one rank higher class that can be used with plenty of power has become a trend. ●Seasonal product ・Personal small fans such as handy fans are popular ・Increased demand for spot coolers that can be used without installation work ・Replacement demand for sanitary steam-type humidifiers is expected. ・Personal heating tailored to individual usage environments is a hot topic, and demand is expected. ●Housing Equipment ・Value-added models are popular. ・Stimulate demand by continuing subsidy for water heater (Hot water energy saving 2026 project) Consumables ●Lighting fixtures ・Production and import/export of fluorescent lamps for general lighting will be phased out by the end of 2027, and the transition to LED lighting will proceed. *No change from May 8, 2026
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- 20 - - 20 - 4. K’s Denki Initiatives 20 Notice of Conclusion of Partnership Agreement between the Company’s Subsidiary and Link Academy Inc. K'S DENKI TECHNICAL SUPPORT CORPORATION(Head Office: Mito City, Ibaraki, President and Representative Director: Naoto Osaka) of the Company's subsidiaries which operates "Hiyoko Computer School" at K's Denki stores, and Link Academy Inc. (Head Office: Chuo-ku, Tokyo, President and Representative Director: Joji Yokoyama) which operates "Total Career School," concluded the partnership agreement. As a first step, from August 2026, we will be able to offer lesson contents of Link Academy Inc.'s "Computer School AVIVA" and "Qualification School DAIEI" at "Hiyoko Computer School" at five K's Denki stores.We aim to expand the development of IT, Digital Transformation, and specialist human resources in Japan by using the knowledge that both companies have cultivated through classroom management and corporate training. We will start with 5 locations, but we plan to expand the number of stores that offer it in the future. Operated by Link Academy Inc. It is a major career Ass course with more than 15,000 participants per year at over 100 locations nationwide and online. Operated by K’S DENKI TECHNICAL SUPPORT CORPORATION. A computer and IT school that operates in more than 80 K's Denki locations nationwide. Providing high-quality courses in AVIVA and DAIEI in community-based classrooms The AVIVA and DAIEI course aimed at acquiring practical cutting-edge IT skills and professional qualifications was held at five Hiyoko Computer School across Japan. Maebashi SchoolIsesaki School Gunma Ibaraki Hyogo Tsukubamirai School Hitachinaka School Tarumi School Isesaki City, Gunma Yoshioka-machi, Kitagunma-gun, Gunma Tsukubamirai City, Ibaraki Hitachinaka City, Ibaraki Tarumi-ku, Kobe City, Hyogo
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- 21 - - 21 - 4. K’s Denki Initiatives 21 Notice of introduction of AI Chatbot to Store Inquiries K'S HOLDINGS CORPORATION has introduced and commenced operation of a tool called "Support Chatbot," which is an automated tool for inquiries utilizing a generative AI developed by User Local, Inc. (Minato-ku, Tokyo), in place of telephone and e-mail inquiries from K's Denki stores to the head office. At the Company, the number of telephone and e-mail inquiries from stores to each department (operation when a system error occurs, how to process each slip, social insurance procedures, etc.) has increased as stores have expanded, and the time and effort required to respond to inquiries at both stores and headquarters has become an issue. To solve this issue, we have introduced the support chatbot of the User Local, Inc. and established an environment where business inquiries can be made at any time. This enables store staff to solve issues at any time, regardless of the operating hours of the head office or the presence or absence of respondents. The support chatbot adopts a hybrid type that combines a generative AI and a Q & A scenario. It responds immediately to general inquiries based on a fixed collection of FAQs, and the generative AI flexibly responds to highly specific and ambiguous questions after referring to the contents of internal regulations and manuals. As a result, store staff can quickly access the information they need, reducing the workload on staff in charge of handling inquiries at headquarters and increasing operational efficiency. We are also considering the use of accumulated question logs to continuously improve our FAQs and manuals.
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- 22 - - 22 - K’s Denki Anshin Passport 22 Guaranteed long-term free repair with simpler procedures, providing: Assurance regarding “after-sales service” “Purchased product search service”, providing: Assurance regarding “shopping for consumable supplies, etc.” Storage of sales data, providing: Assurance regarding “the off chance of a product recall” Cash discounts exclusive for passport members, providing: Assurance regarding “prices” The passport provides four Anshins (Some products are not eligible.) 22 4. K’s Denki Initiatives K’s Denki Anshin Passport ・App K’s Denki Anshin App Flyer Viewing Registeri ng Favorite Stores Members Only Coupon Recommended Products Register purchase history at “My Home Appliance Book”
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- 23 - - 23 - 23 4. K’s Denki Initiatives Flyer using a very popular SNS app in Japan
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- 24 - - 24 - Contact Us K’S HOLDINGS CORPORATION Corporate Planning Office TEL +81-29-215-9033 Every plan, prospect in this document is stated based on data we could gather as of the time of creation and may differ from the actual performance of K’s Denki. Homepage address https://www.ksdenki.co.jp/en/ir/ Note: This document has been translated from a part of 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.