Heiwado Co., Ltd. · TSE:8276

Heiwado — Q2 FY2026 Earnings Presentation

44 slides from Heiwado's earnings presentation, Oct 2, 2025

Slide 1: Financial Results Q2 Fiscal Year Ending Feb. 2026
Fiscal year ending Feb. 2026 2nd Quarter (February 21, 2025 - August 20, 2025) Financial Results Heiwado Co., Ltd. (Securities Code 8276) Note : This document has been translated from the Japanese original for reference purposes only. In the event of any Financial Results Briefing discrepancy betwee
Slide 3: Financial Results Summary
Financial Results Summary Both consolidated and non-consolidated results show increased operating revenue and profit. ⚫ Both consolidated and non-consolidated operating revenues increased. Both achieved record highs for an interim period. ⚫ Operating profit, ordinary profit, and interim net profit i
Slide 5: Consolidated Major Subsidiaries' Performance
Consolidated Major Subsidiaries' Performance Operating Revenue and Operating Profit [Unit：Millions of yen,％] Operating revenue Ordinary profit Q2 FYE 2/2025 Q2 FYE 2/2026 Q2 FYE 2/2025 Q2 FYE 2/2026 Results Results YoY Results Results YoY Heiwado 194,495 204,927 105.4 6,023 6,500 107.9 Consolidated
Slide 6: Consolidated Segment Profit
Consolidated Segment Profit ⚫ Extraordinary income increased due to a gain of ¥239 million from the sale of YU-ING. ⚫ Extraordinary losses increased by approximately ¥89 million due to the Closing of the 「Northwest Store」. [Unit：Millions of yen,％] Q2 FYE 2/2025 Q2 FYE 2/2026 Results Results YoY Chan
Slide 8: Non-consolidated Operating Revenue and Operating Profit
Non-consolidated Operating Revenue and Operating Profit ⚫ Existing stores sales increasing by ¥5,636 million (103.1% YoY). New stores: +¥6,039 million (six new stores: ¥3,177 million and Merger of six Maruzen stores:¥2,862 million)、 Closing: ¥(2,188) million. ⚫ Selling, general, and administrative e
Slide 9: Non-consolidated Analysis: Net Sales by Department
Non-consolidated Analysis: Net Sales by Department ⚫ Due to the impact of the leap year in the previous period, there was a downward effect of approximately 0.4%. ⚫ Strategic food pricing secured customer volume. Rising rice prices and other factors boosted Net sales revenue. [Unit：Millions of yen,％
Slide 10: Non-consolidated Analysis: Existing Stores Sales Composition
Non-consolidated Analysis: Existing storesSales Composition ⚫ Strategic pricing and enhanced product assortment drove customer growth (leap year effect reduced growth by approximately 0.4%). ⚫ In addition to the ongoing upward trend in prices, the average cost price per item has increased compared t
Slide 11: Non-consolidated Analysis: Gross Profit Margin
Non-consolidated Analysis: Gross Profit Margin ⚫ Continue strategic pricing measures. Implement profit control based on previous period's challenges. ⚫ The fresh food division utilizes Bestone. to improve productivity, resulting in a decline in the purchase price ratio. However, this has a positive
Slide 12: Non-consolidated Analysis: SG&A Expenses
Non-consolidated Analysis: Selling, General, and Administrative Expenses ⚫ Of the ¥3,132 million increase in SG&A expenses, ¥1,350 million was attributable to new stores (New stores: six (previous period: five and current period: one) ¥696 million and Merger of Maruzen stores: ¥654 million). ⚫ Perso
Slide 14: Fifth Medium-Term Management Plan
Fifth Medium-Term Management Plan Quantitative Targets for 2030 Operating Revenue ¥500 billion or more (consolidated) Operating Profit Margin 4.5% or more (consolidated) ROE 8% Percentage of Women in 20% or more Management CO2 Emissions 46% reduction (Scope 1 and 2) (compared to FYE 2/2014) 50% redu
Slide 15: Fifth Medium-Term Management Plan
Fifth Medium-Term Management Plan [Unit：Millions of yen,％] Operating revenue 550 5.0 Operating profit ①Increase 500 4.5 operating revenue 450 4.0 400 3.5 350 ②Improvement 3.0 in profitability 300 2.5 FYE2/2023 FYE2/2024 FYE2/2025 FYE2/2031 ©2025 HEIWADO CO.,LTD. All rights reserved 14
Slide 16: Needs of the child-rearing generation
Needs of the child-rearing generation HOP App・・・After its release in July 2024, it steadily expanded and surpassed one million users. HOP Money Charge・・・HOPVISA and direct debit from ten bankscover the business domain. Number of app Financial institutions where you The Hokuriku can charge HOP Money
Slide 17: Needs of the child-rearing generation
Needs of the child-rearing generation Frequently purchased items' prices,Large-capacity food packs PB:Private brand ■Price-focused private brand「KURASHI-more」、 Our signature private brand｢E-WA!｣ FY2024 Q2 of FY2025 Unit:% Ratio Ratio YoY Ratio YoY Ratio YoY YoY PB total 108.1 12.9 0.0 110.1 13.5 ＋0.
Slide 18: Dominant Strategy
Dominant Strategy Dominant strengthening sccompanying Friendmart Notogawa Store renovation (February 28, 2025) and Friendmart Yokaichi Myohoji Store opening (April 18, 2025) ＜Before＞June–August 2024 ＜After＞June–August 2025 Friend mart Notogawa Renovation Friend mart Yokaichi-Myohoji OPEN ・In Higashi
Slide 19: Dominant Strategy
Dominant Strategy To advance our regional strategy, initiatives for “potential stores” aimed at maximizing sales/profit January 2025 Friendmart Yawata Ichinotsubo Store closed.July 2025 Another company's SM store opens on the site of the former store. FM Kuzuha To prevent a decline in market share i
Slide 20: Dominant Strategy
Dominant Strategy Increase points of contact with local communities and customers to respond to changing needs. 【Home Support Service】・100% Household Coverage in Shiga Pref. ・Expansion to three stores in Fukui Pref. (Household Coverage: 31.5%) 【Mobile Grocery Store】・Mobile services facilitate comm
Slide 21: Dominant Strategy
Dominant Strategy FM＝Friendmart 2025 New Store Plan AP＝AL PLAZA Shiga Pref. Aichi Pref. 【New】【New】【Rebuilding】【Rebuilding】【Vacant Lot】 FM Yokaichi-Myohoji FM Imakatata FM Nango FM Moriyama- Nikke Town store store store Ekimae store Inazawa （2025/4OPEN） (2025/Autumn) (2025/Autumn) (2025/Autumn) （
Slide 22: Productivity Improvement and Cost Structure Reform
Productivity Improvement and Cost Structure Reform Utilizing the Process Center Taga Food Processing Center Kumiyama Food Processing Delica Machining Center （Mainly meat and fish） Center （Mainly meat and （Mainly delicatessen） 2014Relocation and Expansion fish）2019Newly established 2023Relocation and
Slide 23: Productivity Improvement and Cost Structure Reform
Productivity Improvement and Cost Structure Reform Utilizing Part-Time Employees as a strategic asset Work items Previous person in New contact person charge Sales Plan/Human Resource Development Chief Chief (Full-time employees, (Full-time employees, part-time employees) part-time employees) Respon
Slide 25: Forecast for the FYE 2/2026
Forecast for the FYE 2/2026 ⚫ We anticipate profit growth in the Non-consolidated segment as a result of 'Sales Growth Initiatives' and 'Productivity Improvement' measures under the 5th Mid-Term Management Plan. Based on FYE 2/2025 performance challenges, we are forecasting increased operating profi
Slide 26: Consolidated Capital Expenditure Plan for the FYE 2/2026
Consolidated Capital Expenditure Plan for the FYE 2/2026 ⚫ New stores: one store in 1st half , four stores in 2nd half. ⚫ To mitigate the operational disruptions caused by recent cyber threats, we are allocating more IT resources to 'Network Security.' We will further drive the implementation of the
Slide 27: IR inquiries
• IR inquiries Heiwado Co., Ltd. Corporate Planning Department E-mail：kessan-hato@heiwado.co.jp ※Reception is in Japanese only ・ Financial results materials and information are disclosed below. Heiwado Homepage（Corporate Website） …Documents (Japanese and English)、Financial Results Summary （Japanese
Slide 29: Consolidated Operating Results Quarterly Changes
Consolidated Operating Results Quarterly Changes for the FYE 2/2026 ⚫ Q1:the retail division saw a 0.8% decrease due to the leap year effect from the previous period, but customer numbers increased through strategic pricing. Rising fruit and vegetable prices and sustained surges in rice prices have
Slide 30: Consolidated Results by Major Company: Operating Revenue Factors
Consolidated Results by Major Company Operating Revenue Increase/Decrease Factors [Unit：Millions of yen] Q2 FYE 2/2026 Increase/Decrease Factors Results Change Total consolidated subsidiary 45,261 (2,356) 1st-half variance factors: Maruzen ¥(2,862) million, YU-ING ¥(379) million Increased revenue du
Slide 31: Consolidated Results by Major Company: Ordinary Profit Factors
Consolidated Results by Major Company Ordinary profit Increase/Decrease Factors [Unit：Millions of yen] Q2 FYE 2/2026 Increase/Decrease Factors Results Change Total consolidated subsidiary 1,777 （78) Increased sales were accompanied by a rise in related SG&A expenses, but Bestone 370 20 profits incre
Slide 32: Consolidated Results SG&A Expenses
Consolidated Results Selling, general and administrative expenses ⚫ Personnel expenses increased by ¥871 million due to Heiwado new store openings. This aligns with initial projections. ⚫ Temporary renovation expenses were impacted by a decrease in new store openings (three stores in the previous pe
Slide 33: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 40,000 [Unit：Millions of yen] 30,000 ＋11,297 (6,878) (2,393) 20,000 Profit before income taxes Capital investment- (6,575) ＋7,588 related Interest-bearing debt- Non-financial profit and loss (7,290) related ＋6,829 Other (2,175) Increase (decrease) in trade ＋411
Slide 34: Consolidated Key Financial Indicators
Consolidated Key Financial Indicators ⚫ Operating revenue increased through continued strategic pricing and other measures, while gross profit margins were secured and SB&A expenses were controlled, leading to improvements in each profit margin. ⚫ Per-share metrics rose due to increased profits and
Slide 36: Non-Consolidated Operating Results Quarterly Changes
Non-Consolidated Operating Results Quarterly Changes for the FYE 2/2026 ⚫ Q1: Existing stores sales up 2.9% year-on-year. Despite a roughly 0.8% downward impact from the leap year effect in the prior period, robust food sales performance drove growth. SA&B expenses were managed as initially planned,
Slide 37: Non-Consolidated Net Sales by Department
Non-Consolidated Net Sales by Department ⚫ Due to the impact of the leap year in the previous period, there was a downward effect of approximately 0.4%. ⚫ Strategic food pricing secured customer volume. Rising rice prices and other factors boosted Net sales revenue. [Unit：Millions of yen,％] Manageme
Slide 38: Non-consolidated Net Sales Factors for Change
Non-consolidated Net sales Factors for change ⚫ New Stores: five stores in the previous period, six stores incorporated from Maruzen, and FriendMart Yokaichi Myohoji Store (April 2025) in the current period. ⚫ Closed” were Friendmart Nango Store, Friendmart Yawata Ichinotsubo Store, and Friendmart K
Slide 39: Non-Consolidated Net Sales by Region Existing Stores YoY
Non-Consolidated Net Sales by Region Existing Stores YoY [Unit：Millions of yen,％] Q2 FYE 2/2025 Q2 FYE 2/2026 Management accounting figures Existing Stores Net sales Stores Net sales YoY stores YoY Total for stores 158 187,883 165 197,394 105.1 103.1 Shiga Pref. 74 78,478 81 82,707 105.4 102.1 Total
Slide 40: YoY Change in Non-Consolidated Operating Profit
YoY Change in Non-Consolidated Operating Profit ⚫ SG&A expenses increased by 5.5% compared to the previous period, but remained within the initial budget. ⚫ Strong sales growth secured gross profit, leading to an increase in operating profit. Increase in [Unit：Millions of yen] 9,000 Rental and SG&A
Slide 42: Non-Consolidated Existing Stores Sales Target YoY
Non-Consolidated Existing stores Sales target YoY ⚫ High sales growth is expected due to the progress of the 5th Mid-Term Management Plan. ⚫ Yell Corporation will be merged into a single entity as of August 21, 2025, but will not be treated as an existing store ⚫ Existing stores boosted by planned r
Slide 43: Non-Consolidated September 2025 Net Sales by Department
Non-Consolidated September 2025 Net Sales by Department ⚫ Store Performance: Existing stores saw a 101.4% increase in number of customers compared to the same period last year, a 102.6% increase in average spend per customer , a 98.5% decrease in number of items purchased, and a 104.1% increase in a
Slide 44: Dividend Policy
Dividend Policy ⚫ For the FYE 2/2026, due to our profit growth plan and our policy of returning 30% or more of net profit to shareholders as dividends, the interim dividend and year-end dividend will each be 33 yen, for an estimated annual dividend of 66 yen. ⚫ Our dividend policy will be "progressi

Heiwado — Q2 FY2026 Earnings Presentation on 6ix

Heiwado — Q2 FY2026 Earnings Presentation

Slide 1: Financial Results Q2 Fiscal Year Ending Feb. 2026

Slide 2: February 2026, 2nd Quarter Performance Summary

Slide 3: Financial Results Summary

Slide 4: Performance Summary (Consolidated)

Slide 5: Consolidated Major Subsidiaries' Performance

Slide 6: Consolidated Segment Profit

Slide 7: Performance Summary (Non-Consolidated)

Slide 8: Non-consolidated Operating Revenue and Operating Profit

Slide 9: Non-consolidated Analysis: Net Sales by Department

Slide 10: Non-consolidated Analysis: Existing Stores Sales Composition

Slide 11: Non-consolidated Analysis: Gross Profit Margin

Slide 12: Non-consolidated Analysis: SG&A Expenses

Slide 13: Progress of the 5th Medium-Term Management Plan

Slide 14: Fifth Medium-Term Management Plan

Slide 15: Fifth Medium-Term Management Plan

Slide 16: Needs of the child-rearing generation

Slide 17: Needs of the child-rearing generation

Slide 18: Dominant Strategy

Slide 19: Dominant Strategy

Slide 20: Dominant Strategy

Slide 21: Dominant Strategy

Slide 22: Productivity Improvement and Cost Structure Reform

Slide 23: Productivity Improvement and Cost Structure Reform

Slide 24: Plan for the FYE 2/2026

Slide 25: Forecast for the FYE 2/2026

Slide 26: Consolidated Capital Expenditure Plan for the FYE 2/2026

Slide 27: IR inquiries

Slide 28: Supplementary Materials (Consolidated)

Slide 29: Consolidated Operating Results Quarterly Changes

Slide 30: Consolidated Results by Major Company: Operating Revenue Factors

Slide 31: Consolidated Results by Major Company: Ordinary Profit Factors

Slide 32: Consolidated Results SG&A Expenses

Slide 33: Consolidated Statements of Cash Flows

Slide 34: Consolidated Key Financial Indicators

Slide 35: Supplementary Materials (Non-consolidated)

Slide 36: Non-Consolidated Operating Results Quarterly Changes

Slide 37: Non-Consolidated Net Sales by Department

Slide 38: Non-consolidated Net Sales Factors for Change

Slide 39: Non-Consolidated Net Sales by Region Existing Stores YoY

Slide 40: YoY Change in Non-Consolidated Operating Profit

Slide 41: Supplementary Materials (Earnings Forecast)

Slide 42: Non-Consolidated Existing Stores Sales Target YoY

Slide 43: Non-Consolidated September 2025 Net Sales by Department

Slide 44: Dividend Policy