Slide 1: Financial Results, Fiscal Year Ending Feb. 2026
Fiscal year ending Feb. 2026 (February 21, 2025 - February 20, 2026) Financial Results Heiwado Co., Ltd. (Securities Code 8276) Financial Results Briefing April 2 and 3, 2026 Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepa
Slide 2: Performance Summary
Fiscal year ending Feb. 2026 Performance Summary ©2026 HEIWADO CO.,LTD. All rights reserved 1
Slide 3: Financial Results Summary
Financial Results Summary Consolidated: Increase in revenue, decrease in profits. Non-Consolidated: Increase in revenue and profits. Record-high operating revenues on both a consolidated and non-consolidated basis. Operating Operating Ordinary Profit Attributable to Owners of Consolidated Revenue Pr
Slide 4: Group Companies: Operating Revenue and Operating Profit
Group Companies: Operating Revenue and Operating Profit ⚫ The JPY7,454 ｍillion gap between consolidated and non-consolidated YoY operating revenue growth is primarily driven by subsidiary mergers and business transfers (totaling JPY7,958 ｍillion), including Maruzen, Yell and YU-ING. [Unit：Millions o
Slide 5: Consolidated and Non-Consolidated Profits Figures
Consolidated and Non-Consolidated Profits Figures ⚫ Primary factor for the difference between consolidated and non-consolidated extraordinary income is a JPY 1,312 million gain from the cancellation of shares following the merger with our subsidiary, Yell. [Unit：Millions of yen,％] Consolidated Non-C
Slide 6: Extraordinary Income and Losses: Consolidated and Non-Consolidated
Extraordinary Income and Losses: Consolidated and Non-Consolidated ⚫ Non-Consolidated: Profit before income taxes increased YoY, as a JPY 1,392 million gain from a subsidiary merger fully offset a JPY 949 million negative impact from lower gains on sales of investment securities and disaster-related
Slide 7: Performance Summary (Non-Consolidated)
Fiscal year ending Feb. 2026 Performance Summary (Non-Consolidated) ©2026 HEIWADO CO.,LTD. All rights reserved 6
Slide 8: Non-Consolidated Operating Revenue and Operating Profit
Non-Consolidated Operating Revenue and Operating Profit ⚫ Operating revenue grew 4.6% YoY, driven by a 4.5% rise in net sales (+JPY16,890 million) and a 5.4% increase in other operating revenues (+JPY1,675 million). (See tables A and B on the right for breakdowns of net sales and other operating rev
Slide 9: Non-Consolidated Analysis: Same-Store Sales Composition
Non-Consolidated Analysis: Same-Store Sales Composition ⚫ Although the number of unique customers declined due to population decrease, total transaction volume increased, driven by higher visit frequency (including a (0.2)% leap-year impact). ⚫ In the food category, the average cost per item rose si
Slide 10: Non-Consolidated Net Sales by Department
Non-Consolidated Net Sales by Department ⚫ Strategic pricing in the food category secured solid sales, with surging rice prices and other factors further boosting overall topline growth. ⚫ Apparel and household goods sales underperformed both YoY and against the target. [Unit：Millions of yen,％] FYE
Slide 11: Non-Consolidated Gross Profit Margin by Department
Non-Consolidated Gross Profit Margin by Department ⚫ Despite ongoing strategic pricing and efforts to control gross profit margins, recovery remains below target, although the downward trend in the margin has stabilized. ⚫ In the fresh foods category, the use of pre-packaged products (outsourced pro
Slide 12: Non-Consolidated Analysis: Selling, General and Administrative Expenses
Non-Consolidated Analysis: Selling, General and Administrative Expenses ⚫ The JPY6,554 million YoY increase in SG&A expenses was driven primarily by a JPY3,776 million impact from expansion, consisting of 10 new store openings (+JPY2,166 million) and the Yell and Maruzen mergers (+JPY1,610 million).
Slide 13: YoY Change in Non-Consolidated Operating Profit
YoY Change in Non-Consolidated Operating Profit ⚫ While the gross profit margin for the food category fell short of the plan, gross profit increased by JPY4,524 million YoY, driven by strong growth in net sales. ⚫ Gross profit for apparel and household goods fell by JPY476 million YoY due to lower n
Slide 14: Progress of the 5th Medium-Term Management Plan
Progress of the 5th Medium-Term Management Plan ©2026 HEIWADO CO.,LTD. All rights reserved 13
Slide 15: Fifth Medium-Term Management Plan
Fifth Medium-Term Management Plan Quantitative Targets for 2030 Operating Revenue (Consolidated) ¥500 billion or more Operating Profit Margin (Consolidated) 4.5% or more ROE 8.0% Percentage of Women in Management 20% or more CO2 Emissions 46% reduction (Scope 1 and 2) (compared to FYE 2/2014) 50% re
Slide 16: Fifth Medium-Term Management Plan
Fifth Medium-Term Management Plan Millions of yen ％ Operating Revenue Operating Margin 550,000 5.0 ① Increase Operating Revenue ・Dominant market expansion / renovations 500,000 ・Finalizing store formats 4.5 ・Driving footfall / focus on young families ・Reviving apparel & household goods 450,000 4.0 4
Slide 17: 2030 Long-term Vision
2030 Long-term Vision ⚫ Establishing and expanding the 'HOP Economic Zone' by leveraging our unique dominant model and a multi-format approach tailored to diverse consumer needs. ⚫ Further enhancing existing customer loyalty while driving deeper engagement with young families. Building Customer Domi
Slide 18: Dominant Area Strategy
Building Customer HOP Economic Cost Structure Dominant Area Strategy Allegiance Zone Reform Dominant areas (GMS+SM)： Lead in both spending and market share. GMS-only areas: High growth potential in market share. SM-only areas: Significant upside for increasing annual customer spending. Mobile Retail
Slide 19: Dominant Area Strategy: New Stores
Building Customer HOP Economic Cost Structure Dominant Area Strategy Allegiance Zone Reform FM＝Friend Mart FYE 2/2026 New Stores AP＝AL PLAZA Shiga Pref. Aichi Pref. 【New】 【New】 【Rebuilding】 【Rebuilding】 【 Existing Building 】 FM Yokaichi- FM Imakatata FM Nango FM Moriyama- Nikke Town Myohoji store st
Slide 20: Dominant Area Strategy: Renovation Results
Building Customer HOP Economic Cost Structure Dominant Area Strategy Allegiance Zone Reform FYE 2/2026 Renovation Results Full Renovation of the Sales Floor Food Floor Renovation Takatomi store AP Moriyama AP Komatsu FM Notogawa store AP Tsukashin ⚫ Strategic renovations of core large-scale stores:
Slide 21: Dominant Area Strategy: FM Imakatata Opening
Building Customer HOP Economic Cost Structure Dominant Area Strategy Allegiance Zone Reform Strengthening dominance: Opened FM Imakatata (Oct 2025). Objective: To fill a market gap within our core trade area. Location: Strategically positioned between AP Katata (1 km north) and Wani store (4 km sout
Slide 22: Product and Merchandising Strategy: Apparel & Household Goods
Product and Merchandising Building Customer Allegiance HOP Economic Zone Cost Structure Reform Strategy Sales Expansion Initiatives for Apparel & Household Goods ■Format Transformation: ⚫ Among our model stores, while flagship shopping centers (SCs) Apparel & Household Goods [Unit：％] have achieved s
Slide 23: Product and Merchandising Strategy: Food Sales Expansion
Product and Merchandising Building Customer Allegiance HOP Economic Zone Cost Structure Reform Strategy Food Sales Expansion Initiatives ■Sales Growth Rate: Food Format Transformation (Model Stores) ％ 120 Year 2 Stores Year 1 Stores All Stores <The Concept of Format Transformation> Driving sustainab
Slide 24: Improving Food Gross Profit & Customer Traffic
Product and Merchandising Building Customer Allegiance HOP Economic Zone Cost Structure Reform Strategy Improving Food Gross Profit & Strategies to Increase Customer Traffic ■Strengthening Sales of Key Value Items (KVIs) FYE 2/2025 FYE 2/2026 Unit:% Ratio Ratio YoY Ratio YoY Ratio ⚫ Reinforcing comp
Slide 25: Utilizing Processing and Delicatessen Centers
Product and Merchandising Building Customer Allegiance HOP Economic Zone Cost Structure Reform Strategy Utilizing Processing and Delicatessen Centers Taga Food Processing Kumiyama Food Delicatessen Center Center（Mainly Meat and Processing Center （Mainly Delicatessen） Fish）Relocated （Mainly Meat and
Slide 26: Creating a More Attractive Heiwado Group: Banking Collaboration
Creating a More Attractive Building Customer Allegiance HOP Economic Zone Cost Structure Reform Heiwado Group ⚫ Collaborating with banks presents a significant opportunity for the retail industry to evolve its business model from mere transactional product sales to a comprehensive service provider t
Slide 27: Creating a More Attractive Heiwado Group: Data Analytics
Creating a More Attractive Building Customer Allegiance HOP Economic Zone Cost Structure Reform Heiwado Group ⚫ Advancing data analytics represents a strategic turning point, enabling us to move beyond management based on intuition and experience toward a highly efficient, data-driven business model
Slide 28: Plan for the FYE 2/2027
Plan for the FYE 2/2027 ©2026 HEIWADO CO.,LTD. All rights reserved 27
Slide 29: Consolidated Capital Expenditure Plan for the FYE 2/2027
Consolidated Capital Expenditure Plan for the FYE 2/2027 ⚫ Store Openings: 2 New Stores planned for 2H. ⚫ IT Investment: Expanding 'Network & Security' focus due to rising Cyber Risks; leveraging 'Information Integration Infrastructure' for data-driven Management. ⚫ Subsidiaries: Capex increase driv
Slide 30: FYE 2/2027 New Store and Renovation Plan
Consolidated Capital Expenditure Plan for the FYE 2/2027 ⚫ FYE 2/2027 New Store Plan ⚫ FYE 2/2027 Renovation Plan ◆Alpla Foods Market Toyama Kakeo store (Tentative) ◼ AL PLAZA Daigo (Kyoto City) (Toyama City) ◼ Adogawa store（Takashima City, Shiga） Opening Autumn 2026 | Total Investment: JPY845 milli
Slide 31: Forecast for the FYE 2/2027
Forecast for the FYE 2/2027 ⚫ We forecast Higher Non-Consolidated Earnings, underpinned by progress in Sales and Productivity Enhancements within our 5th Medium-Term Management Plan. To address performance issues from the previous fiscal year (FYE 2/2026), we are intensifying our focus on Gross Marg
Slide 32: Management Conscious of Cost of Capital and Stock Price
Action to Implement Management that is Conscious of Cost of Capital and Stock Price ©2026 HEIWADO CO.,LTD. All rights reserved 31
Slide 33: Fifth Medium-Term Management Plan
Fifth Medium-Term Management Plan Quantitative Targets for 2030 Operating Revenue (Consolidated) ¥500 billion or more Operating Profit Margin (Consolidated) 4.5% or more ROE 8.0% Percentage of Women in Management 20% or more CO2 Emissions 46% reduction (Scope 1 and 2) (compared to FYE 2/2014) 50% re
Slide 34: Fifth Medium-Term Management Plan
Fifth Medium-Term Management Plan Millions of yen ％ Operating Revenue Operating Margin 550,000 5.0 ① Increase Operating Revenue ・Dominant market expansion / renovations 500,000 ・Finalizing store formats 4.5 ・Driving footfall / focus on young families ・Reviving apparel & household goods 450,000 4.0 4
Slide 35: Progress of the 5th Medium-Term Management Plan (ROE)
Progress of the 5th Medium-Term Management Plan(ROE) ⚫ Given that our PBR has remained below 1.0x for an extended period, we are committed to further enhancing our Corporate Value in line with 'Management Conscious of Cost of Capital and Stock Price'. ⚫ We aim to achieve an ROE of 8.0%, based on our
Slide 36: Analysis and Evaluation of Current Situation
Analysis and Evaluation of Current Situation FYE FYE FYE FYE FYE FYE 2/2021 2/2022 2/2023 2/2024 2/2025 2/2026 Operating Revenue (Millions of yen) 439,326 439,740 415,675 425,424 444,898 456,010 Operating Profit (Millions of yen) 14,037 15,362 11,279 13,257 13,360 13,313 Ordinary Profit (Millions of
Slide 37: Analysis and Evaluation of Current Situation
Analysis and Evaluation of Current Situation ⚫ Factors Contributing to Low PBR Fundamental Earnings Net Profit Ratio(%) ROE(%) Improvement is an Urgent Priority 8.0％ Decomposition. 2.4 2.4 2.2 2.1 6.0 6.2 5.7 1.8 4.9 1.6 4.5％ 1.4 4.2 3.9 3.7 2/2020 2/2021 2/2022 2/2023 2/2024 2/2025 2/2026 Capital C
Slide 38: Policy and Targets
Policy and Targets ⚫ In our Medium-Term Management Plan, we will enhance Sales Capabilities and improve Productivity, aiming to achieve an Operating Profit Margin of 4.5% or higher and an ROE of 8.0% by 2030. ⚫ We will aim to strengthen Shareholder Returns and improve Capital Efficiency through Shar
Slide 39: Challenges and Responses
Challenges and Responses ⚫ We aim to achieve an 8.0% ROE through Enhanced Profitability and Strategic Capital Allocation Net Profit Total Assets Financial Ratio Turnover Leverage 1.4~2.4⇒3.2～ 1.4~1.5⇒1.4 1.7~1.9⇒1.8 ＝ ＝ ＝ Net Profit↑↑ Net Sales↑ Total Assets↓ ROE • Enhancing Sales • Enhancing Sales
Slide 40: Challenges and Responses: Strategic Roadmap
Challenges and Responses *Figures exclude the impact of the New Lease Accounting Standard. Strategic Roadmap Progress of the 5th Medium-Term 2/2024 Management Plan 3/2027-2/2030 2/2031 2/2025 2/2026 2/2027 2/2028 2/2029 2/2030 Revenue Enhancement Realizing the Business Portfolio Improving Operationa
Slide 41: Engagement with Investors
Engagement with Investors ⚫ The content of the dialogues with investors is fed back to the Board of Directors. ⚫ We actively welcome inquiries from institutional investors to enhance communication. ⚫ We plan to explore increasing the number of briefings for individual investors for the FYE 2/2027. ⚫
Slide 42: Shareholder Return Policy
Shareholder Return Policy FYE FYE FYE FYE FYE FYE FYE 2/2021 2/2022 2/2023 2/2024 2/2025 2/2026 2/2027 Net Profit (Millions of yen) 9,724 10,647 7,516 6,774 10,727 9,409 9,800 Dividend per Share (yen) 38 42 42 42 63 66 66 Dividend Payout Ratio (%) 20.5 20.7 29.3 32.5 30.1 34.9 33.3 ⚫ For the FYE 2/2
Slide 43: Supplementary Materials (Consolidated)
Supplementary Materials (Consolidated) ©2026 HEIWADO CO.,LTD. All rights reserved 42
Slide 44: Consolidated Operating Results Quarterly Changes
Consolidated Operating Results Quarterly Changes for the FYE 2/2026 ⚫ 1Q, retail sales declined by approximately 0.8% YoY, affected by the leap-year fallback. However, strategic pricing initiatives successfully drove an increase in customer traffic. Average spend per customer rose, bolstered by high
Slide 45: Consolidated Results by Major Company
Consolidated Results by Major Company Operating Profit & Ordinary Profit, Increase/Decrease Factors [Unit：Millions of yen,％] Operating Profit Ordinary Profit Increase/Decrease Factors Results YoY Results YoY Total Consolidated Yell JPY(3,467) million,Maruzen JPY(2,756) million, Subsidiaries 89,709 9
Slide 46: Consolidated Selling, General and Administrative Expenses
Consolidated FYE 2/2025 Selling, General and Administrative Expenses ⚫ Personnel expenses on a non-consolidated basis increased by JPY3,041 million, including a JPY1,706 million increase attributable to new store openings. ⚫ The increase in 'other expenses' was primarily driven by higher payment pro
Slide 47: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 45,000 [Unit：Millions of yen] 35,000 25,000 ＋17,784 (16,473) Profit before Income Taxes Capital (3,716) Investment-Related ＋13,684 Non-Financial Profit and Loss (17,481) Other (5,129) Interest-Bearing 15,000 ＋15,098 ＋1,007 Debt-Related Increase (Decrease) in Tra
Slide 48: Consolidated Key Financial Indicators
Consolidated Key Financial Indicators ⚫ While strategic pricing initiatives drove growth in operating revenue, profit margins declined as the increase in SG&A expenses outpaced gross profit growth. FYE 2/2025 FYE 2/2026 Operating Profit Margin(%) 3.0 2.9 Ordinary Profit Margin(%) 3.3 3.2 ROE 5.7 4.9
Slide 49: Supplementary Materials (Non-Consolidated)
Supplementary Materials (Non-Consolidated) ©2026 HEIWADO CO.,LTD. All rights reserved 48
Slide 50: Non-Consolidated Financial Results Quarterly Changes
Non-Consolidated Financial Results Quarterly Changes for the FYE 2/2026 ⚫ 1Q, same-store sales reached 102.9% YoY. Although the leap year fallback created a high hurdle (approx. 0.8% negative impact), robust food sales covered the overall performance. SG&A expenses were managed as planned, resulting
Slide 51: Non-Consolidated Net Sales Factors for Change
Non-Consolidated Net Sales Factors for Change ⚫ (New Stores) FY2/2025 : 5 stores + 6 stores integrated from Maruzen. FY2/2026 : 5 stores + 2 stores integrated from Yell. ⚫ (Store Closures) FY2/2025: 3 stores. FY2/2026: 1 store + 2 external shops. 400,000 [Unit：Millions of yen] Other New Store Food P
Slide 52: Non-Consolidated Net Sales by Region Same-Store Sales YoY
Non-Consolidated Net Sales by Region Same-Store Sales YoY [Unit：Millions of yen,％] FYE 2/2025 FYE 2/2026 Same-Store Sales Stores Net Sales Stores Net Sales YoY YoY Total for Stores 166 397,739 170 413,673 104.0 102.7 Shiga Pref. 80 162,934 84 170,317 104.5 101.6 Total for Keihanshin Region 44 138,02
Slide 53: Supplementary Materials (Earnings Forecast)
Supplementary Materials (Earnings Forecast) ©2026 HEIWADO CO.,LTD. All rights reserved 52
Slide 54: Non-Consolidated Same-Store Sales Target YoY
Non-Consolidated Same-Store Sales Target YoY ⚫ Progress on our 5th Medium-Term Management Plan allows us to project accelerated sales growth. ⚫ Our plan to renovate approximately 8 stores in 1H and 9 stores in 2H is designed to drive revenue growth across existing locations. [Unit：％] 1Q 2Q 3Q 4Q Qua
Slide 55: Forecast for the First Half of the FYE 2/2027
Forecast for the First Half of the FYE 2/2027 ⚫ Renovation of 8 Existing stores is scheduled for completion. ⚫ Budgeted electricity costs assume that price levels at the time of the results briefing will persist. [Unit：Millions of yen,％] Consolidated Non-Consolidated Forecast YoY Change Forecast YoY
Slide 56: Non-Consolidated March 2026 Net Sales by Department
Non-Consolidated March 2026 Net Sales by Department ⚫ Same-store sales YoY: No. of customers 101.4%, average spend per customer 100.9%, No. of items purchased 98.1%, average cost per item 102.9% ⚫ There was no impact from the day-of-the-week calendar effect. Same-store sales reached 102.3% YoY, exce
Slide 57: Notes
Notes. ⚫ This material is provided for informational purposes only and is not intended as a solicitation for any investment or action. While this material, including performance plans and future projections, has been prepared based on reliable information currently available, it inherently contains