Notice Regarding Revision of Earnings Guidance

Overview of the Revision to Earnings Guidance

The consolidated earnings guidance for the fiscal year ending February 2026 has been revised, expecting net sales of JPY 93,290 million, a 1.2% increase from the previous forecast, and net income attributable to owners of parent of JPY 2,750 million, a 10.0% increase. Conversely, operating income has been downwardly revised by 16.4% to JPY 6,100 million. The domestic business saw approximately a 6% improvement in existing store sales primarily in the prize division, with new format openings contributing to increased sales. In the ASEAN region, sales expanded due to store area expansion, but operating income declined due to decreased profitability at existing stores. In China, structural reforms reduced operating losses. Ordinary income exceeded the previous forecast due to foreign exchange gains.

Status of Non-Consolidated Earnings Guidance and Extraordinary Losses

The non-consolidated earnings guidance anticipates net sales approximately 3% above the previous forecast at JPY 75,500 million, with operating income expected to set a new record high at around JPY 7 billion. Ordinary income is projected to exceed the previous forecast by JPY 1.8 billion due to foreign exchange gains; however, net income is expected to decline due to the booking of extraordinary losses of approximately JPY 850 million for allowance for doubtful accounts and loss provisions for affiliated company business. On a consolidated basis, although impairment losses of approximately JPY 2 billion are recorded as extraordinary losses, net sales, ordinary income, and net income are all expected to exceed previous forecasts.