Consolidated Financial Summary for the Third Quarter of the Fiscal Year Ending February 2026 (Japanese GAAP)

Overview of Business Performance

During the cumulative consolidated third quarter period of the fiscal year ending February 2026, operating revenue was 7,749.43 billion yen (up 3.7% YoY), and operating income was 144.737 billion yen (up 23.1% YoY), marking record highs. The net loss attributable to owners of the parent for the quarter was 10.928 billion yen, improving by 6.516 billion yen compared to the same period last year. Despite challenging economic conditions domestically and internationally, all segments achieved revenue growth through price reductions of private brand products, large-scale promotions, and promotion of digital shifts. Particularly in retail, customer numbers increased due to enhanced pricing strategies, with favorable performance from the developer and service/specialty store businesses contributing positively.

Overview of M&A and Capital Policy

During this period, we completed the consolidation of Tsuruha Holdings Co., Ltd. as a consolidated subsidiary. On December 1, 2025, it became a wholly-owned parent company through a stock exchange, the tender offer was completed on January 6, 2026, and consolidation as a subsidiary occurred on January 14. As a result, the voting rights ratio reached 50.3%, aiming to establish the largest drugstore alliance in Japan. Approximately 110 billion yen of borrowings were undertaken related to the acquisition, completing the financing. Going forward, we will promote management integration between Tsuruha HD and Welcia HD to strengthen competitiveness in the health and wellness field.