Supplementary Materials for the Financial Results Briefing for the Fiscal Year Ending February 2026

Overview of Financial Results

Net sales for the fiscal year ending February 2026 were JPY 45,084 million, marking a 2.9% increase year-over-year but a decrease of JPY 664 million compared to the plan. Operating income was JPY 1,418 million, down JPY 275 million YoY and JPY 571 million below plan. Ordinary income increased by JPY 15 million YoY to JPY 1,598 million but was JPY 395 million below plan. Net income attributable to owners of parent was JPY 1,727 million, up JPY 759 million YoY and JPY 496 million above plan. The cost of sales ratio rose 0.2 points YoY to 34.3%. Personnel expenses and selling, general and administrative expenses showed an increasing trend.

Segment Results and Future Outlook

The Champon business posted net sales of JPY 36,884 million and operating income of JPY 1,145 million, with operating income decreasing by JPY 220 million year-over-year. The Tonkatsu business recorded net sales of JPY 8,008 million and operating income of JPY 140 million, a decline of JPY 149 million in operating income. For the fiscal year ending February 2027, the plan anticipates net sales of JPY 47,300 million (YoY +4.9%) and operating income of JPY 2,200 million (YoY +55.1%), but net income attributable to owners of parent is expected to drop significantly by 69.5% to JPY 1,200 million. The continuous rise in raw material and logistics costs foresees a challenging environment despite price revisions.