Slide 1: FY2026 Q2 Presentation Material
FY2026 Q2 Presentation Material (Jan. to Jun. 2026) July 31, 2026 Kanro Inc. （TSE：2216） Copyright © 2026 Kanro Inc.
Slide 2: Agenda
AGENDA 1 Review of FY2026 1H Consolidated Results 2 Full-Year Consolidated Forecast for FY2026 3 Market Analysis and Strategy 4 Progress on Growth Strategy 5 In Closing 6 Appendix * “Revised forecasts” refer to the figures released on July 31, 2026, and “initial forecasts” refer to the figures relea
Slide 3: Summary
Summary ◆ 1H: Net sales up 4.4% YoY; operating profit down 19.4% • Achievement rates against the initial 1H forecast announced in Feb. 2026: Net sales 97%; operating profit 93% • Price revisions implemented for some Hard Candy products (Feb. and Apr.) ◆ Full-year profit forecasts revised downward •
Slide 4: 1. Review of FY2026 1H Consolidated Results
1. Review of FY2026 1H Consolidated Results Copyright © 2026 Kanro Inc.
Slide 5: Candy market retail sales
Candy market retail sales (Jan. to Jun. 2026) Hard Candy declined 1.8%, while Gummies increased 2.8%. The Gummy market continued to grow despite slower growth momentum. Composition by type Other, 1.5% Caramel, 1.7% Soft candy Unit: JPY bn 10.7% Hard Candy Jan.–Jun. 2025 Jan.–Jun. 2026 YoY change JYP
Slide 6: Kanro market share
Kanro market share (Jan. to Jun. 2026) Kanro’s share increased in both Hard Candy and Gummies. Overall share of candy market 12.2％ (Previous year 11.8％) *1 Hard Candy market share Gummy market share 21.2％*2 (Previous year 19.5%) 15.1％*3 (Previous year 14.7%) *1 INTAGE Inc. SRI+ Candy market: Jan.–Ju
Slide 7: Status of mainstay products (Hard Candy)
Status of mainstay products (Hard Candy) up 5.1% YoY Non-Sugar Nodoame brand and Kenko Nodoame series brand – Reflecting a decline in market demand for throat drops, sales of the Non-Sugar Nodoame brand and Kenko Nodoame brand decreased YoY Kinno Milk candy (No. 1 milk candy brand by sales*) – Limit
Slide 8: Status of mainstay products (Gummies)
Status of mainstay products (Gummies) up 5.1% YoY Puré Gummy – Despite TV advertising (Apr.), the impact was limited, resulting in a YoY decline in sales Candemina Gummy – Reflecting intensified competition with other companies, the brand struggled, resulting in a YoY decline in overall brand sales
Slide 9: 1H performance summary
1H performance summary (vs. Initial forecast/YoY) Unit: JPY mn FY2025 1H FY2026 1H (consolidated) (non- consolidated) Change Compared Initial forecast from initial YoY Actual (1) to initial YoY % Actual (3) (2) forecast (1)-(3) forecast (1)-(2) Net sales 17,454 18,000 (545) (3.0%) 729 4.4% 16,725 Op
Slide 10: Main factors behind changes
Main factors behind changes (vs. Initial forecast/YoY) Vs. Initial forecast: Decrease in net sales, decrease in profits – Net sales: Gummies declined slightly, but a larger decline in Hard Candy (throat drops) caused overall net sales to fall short of plan – Operating profit: Fell short of plan due
Slide 11: Details of net sales to operating profit
Details of net sales to operating profit Unit: JPY mn FY2026 1H (consolidated) FY2025 1H (non-consolidated) Actual % of total YoY YoY % Actual % of total Net sales 17,454 100.0% 729 4.4% 16,725 100.0% Cost of sales 10,165 58.2% 594 6.2% 9,570 57.2% Freight and storage costs 1,135 6.5% 164 16.9% 971
Slide 12: Factors of changes in OP
Factors of changes in OP (FY2025 1H Result (non-consolidated) vs FY2026 1H Result (consolidated)) Unit: JPY mn Increase factors Decrease factors (V) Variable cost (F) Fixed cost FY2025 1H Result FY2026 1H Result (non-consolidated) 2,664 (consolidated) 2,146 11 Copyright © 2026 Kanro Inc.
Slide 13: 2. Full-Year Consolidated Forecast for FY2026
2. Full-Year Consolidated Forecast for FY2026 Copyright © 2026 Kanro Inc.
Slide 14: FY2026 revised full-year consolidated forecast
FY2026 revised full-year consolidated forecast Net sales remain unchanged, while profit forecasts have been revised downward from the initial forecasts announced in Feb. Unit: JPY mn FY2026 FY2025 Change Compared Revised Initial forecast from initial to initial YoY YoY % Actual forecast forecast for
Slide 15: Main factors behind changes
Main factors behind changes (vs. Initial forecast) Vs. Initial forecast – Net sales: Unchanged ✓ 1H sales shortfalls in both Hard Candy and Gummies are expected to be recovered in 2H, leaving the full-year forecast unchanged ✓ Higher sales volume driven by promotional initiatives and other factors ✓
Slide 16: FY2026 revised full-year consolidated forecast
FY2026 revised full-year consolidated forecast (Details of net sales to operating profit vs. initial forecast) See Appendix for year-on-year comparisons. Unit: JPY mn FY2026 Revised forecast FY2026 Full-year Change Compared 2H revised Initial 1H results revised % of total from initial to initial % o
Slide 17: Factors behind changes in OP
(Reference) Factors behind changes in OP: FY2026 Initial forecast vs. Revised forecast Unit: JPY mn Raw material Decrease Other cost Price Higher Advertising Other Personnel Other factors in net sales of sales revisions distribution expenses selling expenses expenses factors expense expenses ratio I
Slide 18: 2022 to 2026: Trends in net sales / operating profit
2022 to 2026: Trends in net sales / operating profit and the composition of net sales Net sales 40 7 Operating profit (JPY bn) (JPY bn) Gummies Hard Candy Healthy snacks 36.5 34.7 35 6 31.7 30 29.0 4.6 5 25.1 4.2 25 4.2 4 49% 50% 20 52% 53% 17.4 3 15 3.3 48% 2 10 1.9 48% 49% 46% 5 44% 50% 1 * The ma
Slide 19: Balance sheet management
Balance sheet management Achieve sustainable growth and enhance corporate value through optimal balance sheet management and improved capital efficiency FY2026 1H-end balance sheet Balance sheet management Assets Liabilities (1) Growth (2) Shareholder Capital investments Total: JPY12,153 mn investme
Slide 20: Shareholder returns
Shareholder returns Despite a projected YoY profit decline in FY2026, enhance shareholder returns by maintaining the initial forecast of an annual dividend of JPY33 per share (year-end dividend: JPY18) and through treasury share repurchases and cancellations ¥50 50% JPY33 per year 46.4% Dividends Di
Slide 21: Advancing toward the achievement of our medium-term financial targets
Medium-term Corporate Strategy 2030: Financial targets Advancing toward the achievement of our medium-term financial targets Indicators 2025 Actual 2026 Revised forecasts 2030 Target Net sales JPY34.7 bn JPY36.5 bn JPY50.0 bn or more (up 5.0% YoY) (CAGR: 7.8% or higher) Operating profit margin 13.5%
Slide 22: Publication of Integrated Report 2026
Publication of Integrated Report 2026 Deepening understanding of Kanro’s initiatives and approach toward achieving the Medium-term Corporate Strategy 2030 The cover portrays Kanro’s Puré Gummy, CEO Message explains the CEO’s A candid exchange on Kanro’s growth which has expanded overseas, being view
Slide 23: 3. Market Analysis and Strategy
3. Market Analysis and Strategy Copyright © 2026 Kanro Inc.
Slide 24: Candy market retail sales
Candy market retail sales (Jan. to Jun. 2026) Hard Candy declined 1.8%, while Gummies increased 2.8%. The Gummy market continued to grow despite slower growth momentum. Composition by type Caramel, 1.7% Other, 1.5% Soft candy Unit: JPY bn 10.7% Hard Candy Jan.–Jun. 2025 Jan.–Jun. 2026 YoY change JYP
Slide 25: Long-term trends in major candy categories
Long-term trends in major candy categories Tablet candies continue to grow; Hard Candy and Gummies show moderate trends JPY bn 12-month rolling cumulative sales amount Annual market size 1,300 130 (as of Jun. 2026) 飴 Hard Candy グミ Gummies 錠菓 Tablet candies 120 1,200 Gummies 110 JPY131.6 bn 1,100 (10
Slide 26: Gummy market
Market Analysis and Strategy Gummy market 25 Copyright © 2026 Kanro Inc.
Slide 27: Gummy market | Sales amount, volume, and unit price indices
Gummy market | Sales amount, volume, and unit price indices The Gummy market remains a growth market despite recent moderation in growth 5-year index changes [Gummies] * Index with the annual market size five years earlier set at 1 Index Market size (JPY bn) 市場規模 Market size 金額指数 Sales amount index
Slide 28: Gummy market size forecast
Gummy market size forecast Gummy market: Entering the next phase of growth －Toward a JPY150 bn market by 2030－ * Based on the market size forecast in the Medium-term Corporate Strategy 2030 announced in 2025. Trends in Gummy market size and forecasts for future Context for fluctuations in Gummy mark
Slide 29: Gummy market: Current analysis and strategy | Market growth potential
Gummy market: Current analysis and strategy | Market growth potential As product choices broaden, continue refining value provision to drive further market growth [Current analysis] Refining the value provision As SKUs increase, novelty alone is less likely to drive repeat purchases. for further gro
Slide 30: Existing brand growth strategy
Gummy market: Current analysis and strategy│Existing brand growth strategy Driving the market through a customer-driven approach and differentiation in value provision across existing Kanro brands Through the Lifetime Puré proposal and value enhancement, aiming beyond No. 1 in Japan to become a glob
Slide 31: Market expansion strategy through new brands
Gummy market: Current analysis and strategy│Market expansion strategy through new brands Phased expansion of test products aligned with enhanced production capabilities Development of products offering diverse textures and experiences Areas of 提供価値 value 領域 provision More to Come 30 Copyright © 2026
Slide 32: Hard Candy market
Market Analysis and Strategy Hard Candy market 31 Copyright © 2026 Kanro Inc.
Slide 33: Hard Candy market | Sales amount, volume, and unit price indices
Hard Candy market | Sales amount, volume, and unit price indices Unit prices rose over the past year, but both volume and sales amount declined 5-year index changes [Hard Candy] * Index with the annual market size five years earlier set at 1 Index Market size (JPY bn) 市場規模 Market size 金額指数 Sales amo
Slide 34: Hard Candy market size forecast
Hard Candy market size forecast A category highly susceptible to external factors Aiming for further share expansion amid a broadly flat market * Based on the market size forecast in the Medium-term Corporate Strategy 2030 announced in 2025. Trends in Hard Candy market size and forecasts for future
Slide 35: Hard Candy market: Value creation initiatives
Hard Candy market: Current analysis and strategy│Value creation initiatives Pursuing the creation of new value resilient to changes in the external environment Co-creating the value of Hard Candy with Product value enhancement younger consumers Co-creation project with the Masuda Seminar, Co-creatio
Slide 36: Test rollout of KAORITO, a new aroma-focused candy
Hard Candy market: Current analysis and strategy│Challenge of developing new categories Test rollout of KAORITO, a new sensory, aroma-focused candy designed to meet refreshment needs as an alternative to tablet candies Concept survey KAORITO Whether refreshment through natural aromas, without Citrus
Slide 37: Market shifts from organic inflow to a phase requiring value redefinition
Summary Market shifts from organic inflow to a phase requiring value redefinition - Gummies - - Hard Candy - • Shift from expanding trial purchases to creating • Highly affected by temperature, dry conditions, lasting value and viral outbreaks • Provide value beyond novelty, addressing snacking need
Slide 38: 4. Progress on Growth Strategy
4. Progress on Growth Strategy Copyright © 2026 Kanro Inc.
Slide 39: New Gummy production line | Expansion progress
New Gummy production line | Expansion progress New Gummy line expansion on track for Jul. 2027 start-up Production capacity to increase by approximately 50% upon completion [Photo taken in Jul. 2026] Expansion of building (new Gummy line to be installed) Expansion of building; Investment constructio
Slide 40: Global business | Progress update
Global business│Progress update Store count exceeded 400, reaching the Medium-term Corporate Strategy minimum target in one year ● ● ● Roadmap May 2025 Sep. Nov. FY25–26 FY27–28 FY29–30 Established Launched sales of Launched sales of Store count local subsidiary, Puré Gummy in the U.S. Puré Gummy Pr
Slide 41: Global business | Recent highlights and upcoming plans
Global business│Recent highlights and upcoming plans Upcoming Initiatives Exhibited at Anime Expo 2026, one of the ◼ Event participation largest Japanese anime and pop culture Head in the Clouds music festival (Aug.) events in North America Expand awareness of Puré Gummy through sampling Los Angeles
Slide 42: HITOTUBU KANRO business | Recent highlights
HITOTUBU KANRO business│Recent highlights Opened a new permanent store at Isetan Shinjuku Gransta Tokyo Store to reopen after renovation in mid-September, expanding HITOTUBU KANRO to three locations HITOTUBU KANRO business FY2030 net sales target: JPY2.5 billion HITOTUBU KANRO Isetan Shinjuku Store
Slide 43: 5. In Closing
5. In Closing Copyright © 2026 Kanro Inc.
Slide 44: Toward becoming a company of choice through stronger branding
Toward becoming a company of choice through stronger branding Launched a corporate advertising campaign featuring Keisuke Kuwata in Jun. 2026 In 2H, invest in advertising for product brands to enhance the overall Kanro brand FY–24 FY25–26 FY27–28 FY29–30 • Produced a TV commercial featuring Keisuke
Slide 45: Today's key points
Today’s key points Continuing efforts to exceed the current forecast while FY2026 is 1 expected to deliver year-on-year net sales growth and lower profit Gummies: Refining the value provision to drive further growth 2 Hard Candy: Pursuing the creation of new value resilient to changes in the externa
Slide 46: 6. Appendix
6. Appendix Copyright © 2026 Kanro Inc.
Slide 47: FY2026 revised full-year consolidated forecast
FY2026 revised full-year consolidated forecast (Details of net sales to operating profit vs. prior-year results) Unit: JPY mn FY2026 Revised forecast FY2025 Full-year 2H revised 1H results revised % of total YoY YoY % Actual % of total forecast forecast Net sales 17,454 19,046 36,500 100.0% 1,728 5.
Slide 48: Past and planned price revisions and content changes for major products
Past and planned price revisions and content changes for major products * The actual retail price is the open price. * For the most up-to-date information, please refer to our website. Revision Main target brands Main target brands Notes month (Hard Candy) (Gummies) Kanro Ame, Kinno Milk candy, Sep.
Slide 49: Year-on-year change for mainstay brands (retail sales amount)
Year-on-year change for mainstay brands (retail sales amount) Jan.–Jun. 2026 Jan.–Jun. 2026 Hard Candy brand Gummy brand Actual Actual Kenko Nodoame series 98.9% Puré Gummy 97.1% Non-Sugar Nodoame 103.1% Candemina Gummy 97.1% Kinno Milk candy 108.5% - - Kanro Ame 104.5% - - * INTAGE Inc. SRI+ Hard C
Slide 50: Trends in size of Japan's candy market
Trends in size of Japan’s candy market (retail sales amount) Total JPY 381.8 bn Unit: JPY bn 52.5 Total JPY 262.2 50.7 71.0 bn 47.0 47.7 61.9 Other 46.7 43.9 (caramel, soft candies, etc.) 45.8 45.4 52.7 43.6 129.7 +14.0% YoY Tablet candies, 63.8 68.0 46.4 59.3 54.0 refreshing sweets 47.5 113.8 97.2
Slide 51: Trends in Kanro's share among manufacturers
Trends in Kanro’s share among manufacturers (retail sales amount) Gummies *1 Hard candy *2 Candy market overall *3 % 24.0 1st 1st 1st 22.0 20.7 1st 20.4 20.8 1st 1st 1st 1st 19.0 19.4 19.4 20.0 18.6 2nd 19.5 18.0 2nd 17.5 2nd 2nd 2nd 16.8 15.9 15.7 15.9 16.0 3rd 2nd 13.8 14.9 14.0 3rd 12.3 12.2 12.5
Slide 52: Hard candy + Gummies market: Trends by business category
Hard candy + Gummies market: Trends in sales amount by business category ◆Hard candy ◆Gummies Unit: JPY bn * INTAGE Inc. SRI+: Changes in sales amount by business category for Hard candy and Gummies, 2021–2025 (Jan.–Dec. total for each year) * GS: Grocery store, CVS: Convenience store, DRUG: Pharmac
Slide 53: Hard Candy market: YoY by category (Jan. to Jun.)
Hard Candy market: YoY by category (Jan. to Jun.) ◆ Sales amount / volume (units), YoY ◆ Sales amount composition Unit: % Healthy Other 3.8% 2.4% Fancy 5.0% Hard Throat Western- Japanese- Fruit Fancy Healthy Candy drop style style total gourmet Fruit 117.0 6.2% 111.9 105.3 103.8 Japanese- style Thro
Slide 54: Gummy market: YoY by category (Jan. to Jun.)
Gummy market: YoY by category (Jan. to Jun.) ◆ Sales amount / volume (units), YoY ◆ Sales amount composition Unit: % Gummy Hard Fruit Fancy Import Other total 18.3% 114.8 Hard 110.6 Import 38.9% 106.8 9.2% 104.4 102.8 100.0 100.0 Fancy 12.3% 95.1 95.6 95.3 Fruit 91.7 21.4% Sales amount Sales volume
Slide 55: Disclaimer
Disclaimer IR information URL: Forward-looking statements related to Kanro’s current plans, outlook and strategy, etc. contained https://www.kanro.co.jp/en/ir/ within these materials are based on judgments made by Kanro management using information QR code for the above: available at hand at the tim