Okuwa Co., Ltd. · TSE:8217

Okuwa — FY2025 Earnings Presentation

44 slides from Okuwa's earnings presentation, Apr 7, 2026

1. Slide 1: Financial Results Presentation Material

   Fiscal Year Ended February 20, 2026 Financial Results Presentation Material OKUWA Co., Ltd. (8217) April 7, 2026 Presenter: Hirotsugu Okuwa, President and Representative Director Copyright © OKUWA Co., Ltd. All Rights Reserved. -1-

2. Slide 2: Results for the Fiscal Year Ended February 20, 2026

   Results for the Fiscal Year Ended February 20, 2026 Copyright © OKUWA Co., Ltd. All Rights Reserved. -2-

3. Slide 3: Consolidated Sales Results

   Consolidated Sales Results (Million yen, %) Fiscal year ended Fiscal year ended Comparison Initial February 20, February 20, YoY change against forecast 2025 2026 forecast Operating revenue 250,150 252,655 259,000 101.0 97.6 Operating profit 1,328 1,878 2,100 141.4 89.5 Ordinary profit 1,442 1,973 2

4. Slide 4: Consolidated Operating Revenue by Company

   Consolidated Operating Revenue by Company Fiscal year ended Fiscal year ended YoY (Million yen, %) February 20, 2025 February 20, 2026 change OKUWA 248,636 251,094 101.0 OAK FOODS 1,370 1,444 105.4 Retail Backoffice Support 308 314 101.9 SUNRISE 5,403 4,012 74.3 Consolidation adjustment (5,568) (4,2

5. Slide 5: Consolidated Ordinary Profit by Company

   Consolidated Ordinary Profit by Company Fiscal year ended Fiscal year ended (Million yen, %) YoY change February 20, 2025 February 20, 2026 OKUWA 1,341 1,785 133.1 OAK FOODS 87 97 112.1 Retail Backoffice Support 41 35 84.6 SUNRISE 40 66 163.0 Consolidation adjustment (42) (42) － Share of profit of e

6. Slide 6: Consolidated Management Indicators

   Consolidated Management Indicators Fiscal year ended Fiscal year ended Fiscal year ended February 20, 2024 February 20, 2025 February 20, 2026 Operating profit/Operating revenue (%) 1.17 0.53 0.74 Ordinary profit/Operating revenue (%) 1.25 0.58 0.78 Return on equity (ROE, %) 1.28 (3.12) 0.36 Return

7. Slide 7: Consolidated Cash Flows

   Consolidated Cash Flows Fiscal year ended Fiscal year ended (Million yen) YoY change February 20, 2025 February 20, 2026 Cash and cash equivalents at 16,182 11,152 (5,030) beginning of period Operating CF 6,596 7,619 1,022 Investing CF (8,741) (5,751) 2,989 Financing CF (2,885) (2,020) 864 Cash and

8. Slide 8: Non-consolidated Sales Results

   Non-consolidated Sales Results (Million yen, %) Comparison Fiscal year ended Fiscal year ended Initial YoY against February 20, 2025 February 20, 2026 forecast change forecast Operating revenue 248,636 251,094 258,000 101.0 97.3 Net sales from direct 241,913 243,712 － 100.7 － operation Gross profit

9. Slide 9: Non-consolidated Same-Store Sales

   Non-consolidated Same-Store Sales Average Same-store YoY change Customer Net sales spend per (%) traffic Items per Average customer transaction selling price 1H 100.1 97.4 102.8 97.8 105.1 2H 99.3 97.3 102.1 98.3 103.9 Full year 99.7 97.3 102.5 98.0 104.5 ％ 105 104 103 102 101 100 99 98 97 96 95 94

10. Slide 10: Non-consolidated Net Sales by Region

    Non-consolidated Net Sales by Region (Million yen, %) Fiscal year ended Fiscal year ended YoY Same-store February 20, 2025 February 20, 2026 change YoY change Wakayama 76,855 76,104 99.0 99.3 Nara 47,373 48,479 102.3 100.9 Osaka 35,575 35,948 101.0 98.5 Hyogo 588 257 43.8 83.7 (Kinki area) 160,393 1

11. Slide 11: Non-consolidated Net Sales by Business Type

    Non-consolidated Net Sales by Business Type (Million yen, %) Fiscal year ended Fiscal year ended YoY Same-store February 20, 2025 February 20, 2026 change YoY change SC 9,772 9,543 97.7 97.7 SSM 115,071 117,664 102.3 99.6 SM 8,745 8,959 102.4 102.4 Regular 133,590 136,168 101.9 99.7 Super Center 81,

12. Slide 12: Non-consolidated Net Sales by Department

    Non-consolidated Net Sales by Department (Million yen, %) Fiscal year ended Fiscal year ended YoY Same-store February 20, 2025 February 20, 2026 change YoY change Fresh foods 102,945 104,067 101.1 99.8 Processed foods 105,026 106,434 101.3 100.4 Foods 207,972 210,501 101.2 100.1 Household supplies 2

13. Slide 13: Non-consolidated Gross Profit Margin by Department

    Non-consolidated Gross Profit Margin by Department (Million yen, %) Fiscal year ended Fiscal year ended YoY February 20, 2025 February 20, 2026 change Fresh foods 31.5 32.1 +0.6 Processed foods 23.0 23.2 +0.2 Foods 27.2 27.6 +0.4 Household supplies 28.2 28.0 (0.2) Clothing 35.6 35.2 (0.4) Total 27.6

14. Slide 14: Non-consolidated SG&A Expenses

    Non-consolidated SG&A Expenses (Million yen, %) Ratio to net sales Fiscal year ended Fiscal year ended YoY Ratio to net （fiscal year ended February 20, 2025 February 20, 2026 change sales February 20, 2025) Net sales 236,132 238,116 +1,984 100.0 100.0 Selling expenses 1,976 1,914 (62) 0.8 0.8 Person

15. Slide 15: Non-consolidated Capital Expenditures

    Non-consolidated Capital Expenditures (Million yen, %) (Plan) Fiscal year ended Fiscal year ended YoY Fiscal year ending February 20, 2025 February 20, 2026 change February 20, 2027 New stores 5,083 2,638 51.9 100 Existing stores, etc. 3,359 2,440 72.6 6,450 Systems 1,271 1,025 80.6 650 Construction

16. Slide 16: Non-consolidated Store Distribution

    Non-consolidated Store Distribution (As of Feb. 20, 2026) Total by region Wakayama 31 7 7 (-1) 3 48 (-1) Nara 22 5 5 1 33 Osaka 18 2 1 － 21 Hyogo － － －(-1) － － (-1) (Kinki area) 71 14 13 (-2) 4 102 (-2) Mie 14 3 5 － 22 Gifu 4 (PM: 1) 10 － － 14 Aichi 9 (PM: 3, +1) 2 － 2 (PM: 2) 13 (+1) Shizuoka 1 (PM

17. Slide 17: New Store Openings

    New Store Openings New store openings: 2 stores June 20, 2025 Okuwa Toyoake Store (Aichi) ➢ Opening of the 13th Store in Aichi ➢ Projected annual sales: 2.1 billion yen August 30, 2025 Okuwa Sakai-Shi Ekimae Store (Osaka) ➢ Opening of the 21st Store in Osaka ➢ Projected annual sales: 1.7 billion yen

18. Slide 18: Summary of Financial Results

    Summary of Financial Results Same-store sales indicators (Plan) *Illustrative target outcome Customer traffic 100.0% Average selling price Same-store sales 101.8% 102.8% Average spend per customer 101.8% Items per transaction 99.0% (Results) Customer traffic 97.3% Average selling price Same-store sa

19. Slide 19: Management Policy for Fiscal Year Ending February 20, 2027

    Management Policy for Fiscal Year Ending February 20, 2027 Copyright © OKUWA Co., Ltd. All Rights Reserved. -19-

20. Slide 20: Management Policy: Two Pillars

    Management Policy for Fiscal Year Ending February 20, 2027： Two Pillars Non-consolidated operating profit: 2.0 billion yen Operating revenue: Up 1.2% YoY Business Reform Marketing Cost reduction X Resource optimization ID‐POS utilization X Product and store strategies “Execution of cost reduction an

21. Slide 21: Priority Strategy (1): Marketing

    Management Policy for Fiscal Year Ending February 20, 2027： Two Pillars Priority strategy (1) Marketing 2024 2025 2026 and beyond Development phase Penetration phrase Execution and expansion phase Assignment of Increase in the number of Led by buyers in charge; buyers in charge, utilization Marketin

22. Slide 22: Priority Strategy (2): Business Reform

    Management Policy for Fiscal Year Ending February 20, 2027： Two Pillars Priority strategy (2) Business reform Working hours: down 7% (YoY) Cost reduction Productivity improvement Lower the break-even point to support profit generation Copyright © OKUWA Co., Ltd. All Rights Reserved. -22-

23. Slide 23: Financial Results Forecast (Non-consolidated)

    Financial Results Forecast for Fiscal Year Ending February 20, 2027 (Non-consolidated) Breakdown (Non-consolidated) Top line Efficiency Bottom line Operating revenue: Gross profit margin: Ordinary profit: 254.0 billion yen 28.1% (+0.3 ppt) 2.0 billion yen * Before application of the “Accounting Stan

24. Slide 24: Organizational Reform to Sustainability Management

    1．Organizational Reform 2．Store Strategy 3．Product Strategy 4．Marketing Strategy 5．Sales Promotion Measures 6．Use of Digital Technologies 7．Capital Policy and Financial Strategy, and Shareholder Return 8．Sustainability Management Copyright © OKUWA Co., Ltd. All Rights Reserved. -24-

25. Slide 25: Organizational Reform

    １ Organizational Reform Selective and focused allocation of management resources Thorough operational reform and labor saving Small-sized stores Reallocation of limited resources Focus on profitable (small and PRC type) (people, goods, and capital) SuC and SSM types Maximize profitability across the

26. Slide 26: Store Strategy

    2 Store Strategy Set clear missions by business type and further develop the business SSM SuC (medium- to large-sized supermarkets) PRC (Super Center) Maximize profitability (small stores) A leading store Establish a new in each area Become a key profit division engine across to promote reform the C

27. Slide 27: Store Strategy: SuC type

    2 Store Strategy SuC type 2024-2025 2026 Implement price appeal without relying on margin reduction Lower margins to maximize sales volume Continue price appeal in agricultural product and daily food categories Copyright © OKUWA Co., Ltd. All Rights Reserved. -27-

28. Slide 28: Store Strategy: SSM type

    2 Store Strategy SSM type 2024-2025 2026 Refine the brand and establish flagship stores Establish a model for small- and medium-sized stores Fresh food share: 50% or higher Develop store models based on sales volume Copyright © OKUWA Co., Ltd. All Rights Reserved. -28-

29. Slide 29: Store Strategy: PRC type (small stores)

    2 Store Strategy PRC type (small stores) 2024–2025 2026 SL Retail Division (newly established) Optimized existing- store format Driving labor savings and operational efficiency Sustaining sales and improving profitability Copyright © OKUWA Co., Ltd. All Rights Reserved. -29-

30. Slide 30: Store Strategy: Major renovation

    2 Store Strategy Major renovation Build a sustainable customer attraction and profit base by redefining large stores (1H) (2H) Wakuwaku City SuC Palm City Ozaki Store Wakayama Store Copyright © OKUWA Co., Ltd. All Rights Reserved. -30-

31. Slide 31: Expansion of stores dedicated to delicatessen

    2 Store Strategy Expansion of openings of stores dedicated to delicatessen, ANDDELICA Suminodo Store opened in January; Hirakata Store opened in March. Accelerated store Enhanced product expansion development capabilities Enhancement and Growth in sales, differentiation of gross profit, and the deli

32. Slide 32: Product Strategy: Branding strategy

    3 Product Strategy Branding strategy Kurashi More Okuwa Brand O-SOZAi Value creation by positioning A key tool for price appeal three distinct brands: In-house manufactured by clearly differentiating it Premium, Select, and Marche products from Okuwa brand Target composition ratio in Target composit

33. Slide 33: Product Strategy: Category strategy

    3 Product Strategy Category strategy 重点カテゴリー Priority category Core product category Enhancement 部門内の主力商品で within each department category 核となるカテゴリー Category targeted for 5% growth 部門内で明確な意思を持って 強化カテゴリー Development based on clear strategic intent category 5%以上売上伸長を目指すカテゴリー Product category 部門内でのトレンド

34. Slide 34: Marketing Strategy: Regional strategies

    4 Marketing Strategy Regional strategies: Kinki area and Tokai area Kinki area Tokai area Kinki: focus on value and price appeal Tokai: focus on maximizing premium (“treat”) demand Copyright © OKUWA Co., Ltd. All Rights Reserved. -34-

35. Slide 35: Expand the number of pilot stores to 26

    4 Marketing Strategy Expand the number of pilot stores to 26, positing them as a key driver of overall Group performance Number of pilot stores: 6 stores⇒26 stores Driving customer traffic and sales Pilot store Copyright © OKUWA Co., Ltd. All Rights Reserved. -35-

36. Slide 36: Before-and-after activities working alongside the frontline

    4 Marketing Strategy “Before-and-after activities” working alongside the frontline Step 1: Step 2: Driving analysis and action Embedding improvements Using data and survey results issued by Implementing continuous improvement the Marketing Office to identify causes initiatives across all stores on t

37. Slide 37: Expand active members of the Okuwa App

    5 Sales Promotion Measures Expand active members of the Okuwa App and promote usage through acquisition of new members Number of active app members Target for FY2030 Target for FY2028 App released in July 2024 0.60 million Target for FY2026 (composition ratio: 0.46 million ６０%) (composition ratio: 0

38. Slide 38: Expand the younger and middle-aged customer base

    5 Sales Promotion Measures Expand the younger and middle-aged customer base that will drive future growth (1) Child Care Club (2) Heartful Club Annual member Annual member acquisition target acquisition target 40 thousand 20 thousand Copyright © OKUWA Co., Ltd. All Rights Reserved. -38-

39. Slide 39: Use of Digital Technologies: Low-cost operations and customer satisfaction

    6 Use of Digital Technologies Low-cost operations and customer satisfaction Back-office Customer touchpoints Store operations infrastructure Member acquisitions & Tablet use, self-service Building out infrastructure digital coupons checkout, and AI ordering developed in-house Leveraging digital tool

40. Slide 40: Improve work styles and labor productivity

    6 Use of Digital Technologies Improve work styles and labor productivity Workforce optimization: Labor saving: Task allocation system Use of self-service checkout Determine standard working time for manufacturing and shelf stocking. Raise the adoption rate from 61.3% Check gaps between assigned and

41. Slide 41: Acquisition of treasury shares

    7 Capital Policy and Financial Strategy, and Shareholder Return Acquisition of treasury shares Plan to acquire treasury shares totaling approx. 4.0 billion yen over three years FY2024 (actual) 2.0 billion FY2025 (actual) FY2026 (planned) yen 1.0 1.0 billion billion yen yen Copyright © OKUWA Co., Ltd

42. Slide 42: Change in shareholder benefit program

    7 Capital Policy and Financial Strategy, and Shareholder Return Change in shareholder benefit program The long-term shareholder benefit program will be applied starting with the shareholder benefits based on the record date of February 20, 2027. Providing complementary gifts Long-term shareholder be

43. Slide 43: Sustainability Management: Reduce environmental impact

    8 Sustainability Management Reduce environmental impact OKUWA Co., Ltd. supports the Sustainable Development Goals (SDGs). Maintain a B score from CDP Reduce environmental impact We received a B score for the second consecutive year GHG emission reduction target: in CDP’s 2025 Climate Change Assessm

44. Slide 44: Financial Results Forecast

    Financial Results Forecast Fiscal year ended Fiscal year ending Growth rate Consolidated (Million yen, %) February 20, 2026 February 20, 2027 (%) Operating revenue 252,655 255,500 1.1 Operating profit 1,878 2,100 11.8 Ordinary profit 1,973 2,100 6.4 Profit* 264 650 145.8 *Profit represents profit at

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