Slide 1: Financial Results for FYE May 2026
Financial Results for FYE May 2026 July 16, 2026 The earnings forecasts in this document are based on the business environment as of the time of writing. Actual results may differ from projections due to a variety of factors. Note also that inquiries should be submitted in Japanese. Inquiries: Sator
Slide 2: Consolidated Results for FYE May 2026 / FYE May 2027 Plan
Consolidated Results for FYE May 2026 1. Consolidated Financial Highlights 2. Consolidated Statement of Income 3. Consolidated Balance Sheet 4. Consolidated Statements of Cash Flows 5. Store Openings/Closings 6. Performance Highlights (CSD* Non-consolidated) * CSD: CREATE SD CO., LTD. FYE May 2027 P
Slide 3: Consolidated Results for FYE May 2026
Consolidated Results for FYE May 2026 3
Slide 4: 1. Consolidated Financial Highlights
1. Consolidated Financial Highlights FYE May 2026 Results Net sales Ordinary profit 497.1 billion yen 25.2 billion yen (108.8% YoY) (107.8% YoY) Ordinary profit margin: 5.1% Business Overview ▸ Driven by the food products and prescriptions segments, sales at existing stores continued to perform stro
Slide 5: 2. Consolidated Statement of Income
2. Consolidated Statement of Income for FYE May 2026 FYE May 2025 FYE May 2026 Results Results Net sales YoY Share Share Vs plan ▸ Continued promotion of the (Millions of yen) (Millions of yen) change (%) (%) (%) everyday low price (EDLP) strategy (%) and expansion of in-store pharmacies led to cont
Slide 6: 3. Consolidated Balance Sheet
3. Consolidated Balance Sheet for FYE May 2026 May 31, 2025 May 31, 2026 (Millions of yen) Total assets Total assets 236,561 255,350 ■ Current assets +5,959 (+18,789) Cash and deposits –647 Accounts receivable – trade +3,275 Current Total Merchandise +689 Total assets liabilities Current liabilities
Slide 7: 4. Consolidated Statements of Cash Flows
4. Consolidated Cash Flows for FYE May 2026 ■ Consolidated Statements of Cash Flows FYE May 2025 FYE May 2026 (Millions of yen) (Millions of yen) Change Net cash provided by operating activities 23,625 25,435 +1,810 Net cash used in investing activities –20,700 –20,405 +295 Net cash used in financin
Slide 8: 5. Store Openings/Closings
5. Store Openings/Closings ■ Store openings/closings and renovations No. of store openings Kanagawa Tokyo Chiba Saitama Gunma Ibaraki Tochigi Shizuoka Aichi Subtotal Total in FYE May 2026 Drug stores 13 3 2 3 3 3 2 3 1 33 M&A 41 Store (Supermarkets) — — — — — — 8 — — 8 open- Prescription ing drug st
Slide 9: 6. Performance Highlights (CSD Non-consolidated)
6. Performance Highlights (CSD Non-consolidated) ■ YoY net sales comparison at existing stores: 104.1% (H1: 103.8%; H2: 104.3%) └ OTC:103.1% Prescriptions:111.0% 10 9 FYE May 2026 8 FYE May 2025 6.7 6.6 7 6.0 6 4.6 5 4.9 4.0 4.0 3.9 4.3 3.6 4 2.9 5.0 3 3.7 1.8 3.6 3.3 3.9 2 3.1 0.7 2.3 1 1.5 0 1.0 0
Slide 10: Performance Highlights: Net sales by segment
6. Performance Highlights (CSD Non-consolidated) ■ Net sales by segment FYE May 2025 FYE May 2026 Results Results YoY Net sales Share Net sales Share change (Millions of yen) (%) (Millions of yen) (%) (%) Medical and health products OTC Medical and health products 119,079 26.3 127,846 26.2 107.4 ▸ D
Slide 11: Performance Highlights: Prescription drug store department
6. Performance Highlights (CSD Non-consolidated) ■ Prescription drug store department YoY FYE May 2025 FYE May 2026 change No. of prescriptions Results Results (%) ▸ Growth in the number of prescriptions has slowed due to longer prescription Sales at all stores (millions of yen) 57,211 65,730 114.9
Slide 12: Performance Highlights: Gross profit margin / SG&A ratio
6. Performance Highlights (CSD Non-consolidated) ■ Gross profit margin / SG&A ratio FYE May 2025 Results FYE May 2026 Results YoY Change Result Share Result Share Change (millions of yen) (%) (millions of yen) (%) (%) YoY (%) Gross profit margin ▸ Declined by 0.6 points due to Amount of sales 452,31
Slide 13: FYE May 2027 Plan
FYE May 2027 Plan 13
Slide 14: 1. Growth Strategy
1. Growth Strategy ■ Store opening and store closing strategy ▸ New store openings and store closings Drug stores: 50 store openings (8 store closings) Prescription drug stores: 45 store openings (4 store closings) ▸ Diversification of store formats ・Promote store formats and store development tailo
Slide 15: 1. Growth Strategy: Drug stores business
1. Growth Strategy ■ Drug stores business ▸ Response to the revision of the Act on Pharmaceuticals and Medical Devices TC1 ・Strengthen responses to tighter sales regulations for designated abuse-prevention pharmaceuticals → Ensure continued placement of qualified personnel in the health section to e
Slide 16: 1. Growth Strategy: Prescription drug store business
1. Growth Strategy ■ Prescription drug store business ▸ Deepen dominance in the prescription drug stores business ・Promote the addition of in-store pharmacies to drug stores → FYE May 2025: 53.0% → FYE May 2026: 54.5% ・Proactively pursue M&A, primarily in existing dominant areas ▸ Response to revisi
Slide 17: 1. Growth Strategy: Strengthening the earnings structure
1. Growth Strategy ■ Initiatives to strengthen the earnings structure ▸ Review of product assortment and merchandising based on customer needs ・Renovate stores through conversion to the Cremo + CREATE format → Review existing merchandising and improve profit margins by strengthening the health and b
Slide 18: 2. Financial Strategy: Capital Investment Plan
2. Financial Strategy ■ Capital Investment Plan ▸ To support sustainable growth, we will continue to actively invest in capital expenditures of over 20–30 billion yen. → Capital investment in FYE May 2026 fell slightly short of the initial plan of 25 billion yen From FYE May 2027 onward, we will con
Slide 19: 2. Financial Strategy: Shareholder Return Policy
2. Financial Strategy ■ Shareholder Return Policy ▸ We will go beyond our previous approach of stable and continuous dividend increases to further enhance and strengthen shareholder returns. → For FYE May 2026, we plan to increase the dividend by 15 yen from the initial plan of 90 yen, resulting in
Slide 20: 3. Sustainability Management
3. Sustainability Management ■ Creating a comfortable and rewarding work environment ▸ Development and empowerment of Indicators for promoting women’s advancement human resources Achievement Target Indicator Result ・ Introduce an internal recognition (incentive) year value program Ratio of women ・ C
Slide 21: 4. FYE May 2027 Full-Year Plan (Consolidated)
4. FYE May 2027 Full-Year Plan (Consolidated) FYE May 2026 Results FYE May 2027 Plan Full-year YoY change YoY change (Millions of yen) Share (%) (Millions of yen) Share (%) (%) (Millions of yen) Net sales 497,128 100.0 541,000 100.0 108.8 +43,871 Gross profit 126,953 25.5 137,000 25.3 107.9 +10,046