Supplementary Explanation Materials for the Q3 Financial Summary for the Fiscal Year Ending May 2026

Overview of Financial Results

For the third quarter of the fiscal year ending May 2026, consolidated results were net sales of JPY 72,669 million (up 9.4% YoY), operating income of JPY 9,323 million (up 3.9% YoY), ordinary income of JPY 10,441 million (up 11.6% YoY), and net income attributable to owners of parent of JPY 8,696 million (up 11.2% YoY). The gross profit margin improved to 64.5%, up from 64.0% in the same period last year. Sales in the overseas wholesale segment performed well at JPY 56,762 million (up 11.8% YoY), with operating income also increasing to JPY 13,782 million (up 7.2% YoY). Conversely, the retail segment recorded net sales of JPY 2,566 million (down 14.4% YoY) and an operating loss of JPY 427 million, reflecting a decline in both revenue and income. Selling, general and administrative expenses rose 12.1% YoY to JPY 37,567 million, primarily due to increases in personnel expenses and research costs.

Regional and Product Trends and Future Outlook

By region, sales grew in Europe and the Middle East to JPY 18,195 million (up YoY), as well as in North and South America, with overseas markets driving overall sales growth. By product, vegetable seeds accounted for 74% of total sales, with particularly strong sales growth in Europe, the Middle East, and North America. While some effects of currency fluctuations were noted, overall performance remains steady. The company is expected to continue focusing on growth through expansion in overseas markets; however, no detailed revisions to earnings guidance are included in this document.