Summary of Consolidated Financial Results for the Fiscal Year Ended February 28, 2025

3. Forecast of consolidated financial results for the fiscal year ending February 28, 2026 (from March 1, 2025 to February 28, 2026) Percentages indicate year-on-year changes

1. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: None

2. Forecast of non-consolidated financial results for the fiscal year ending February 28, 2026 (from March 1, 2025 to February 28, 2026) Percentages indicate year-on-year changes

• These financial results are outside the scope of review by a certified public accountant or an auditing corporation.
• Explanation regarding appropriate use of business forecasts and other special instructions

The forward-looking statements such as the forecasts of financial results stated in this document are based on the information currently available to the Company and certain assumptions that the Company judges as rational. Actual results may differ materially, depending on a range of factors. See "1. Overview of Operating Results, etc. (4) Future outlook" on page 10 of the attached document for the conditions on which financial results forecasts are based and the notes on the use of these forecasts.

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1. Overview of Operating Results, etc.

The forward-looking statements herein are based on the judgments of the Group as of the end of the fiscal year under review.

(1) Overview of Operating Results

In the fiscal year ended February 28, 2025, the Japanese economy achieved a moderate recovery, driven by an improvement in employment and income levels. However, consumers became more cost-conscious regarding daily necessities due to prolonged inflation stemming from the rising prices of raw materials and energy and the weaker yen. The business environment in the retail industry continued to be unclear due to challenges in recruitment and increasing costs.

In this environment, the Izumi Group, guided by its management philosophy of instilling pride and joy in its employees while contributing to the enhancement of the lives of communities and our customers, has set the long-term goal of creating livable communities and fostering the growth of the population. The Group has been implementing the strategies set out in the Second Medium-term Management Plan formulated in April 2021 (the strategies and target figures were updated in April 2023).

The growth strategy focuses on reducing the number of new store openings and investing in existing stores to revitalize them while expanding into new business areas through mergers, acquisitions and alliances. The Group aims to achieve both organic and inorganic growth to realize its long-term vision. To rapidly execute these initiatives, Izumi Co., Ltd. established the Investment Promotion Division reporting directly to the Executive Vice President in May. This division is responsible for overseeing mergers and acquisitions as well as developing new operations. Additionally, the Company hired external experts to enhance its organizational structure and support the implementation of the initiatives.

In May, the Company made Sunlife Co., Ltd. (Oita, Oita) a wholly owned subsidiary. Sunlife is a community-based food supermarket that has maintained a presence in a small trade area for a long time. Sunlife operates four stores primarily in Oita, an area not served by the existing store network. The Company believes that the acquisition of Sunlife will assist the Group in executing its area strategy such as entering a new market and expanding its market share.

In June, the Company and Maruyoshi Center Inc. (Takamatsu, Kagawa) began integrating their product procurement, logistics, and other systems in the Shikoku region under their capital and business alliance agreement. This integration allows the Company to streamline business processes and reduce costs in the Shikoku region. The Company aims to

developing its logistics and delivery system, ensuring that goods are delivered promptly and accurately.

In August, consolidated subsidiary Youme Mart Kumamoto Co., Ltd. (Higashi-ku, Kumamoto) took over the supermarket business of by Seiyu Co., Ltd. (Musashino, Tokyo) in the Kyushu region through a company split (absorption-type company split). Youme Mart Kumamoto aims to establish dominance primarily in Fukuoka prefecture, achieve economies of scale in product procurement, promote sales, and streamline logistics. The Group will utilize the knowledge of efficient operations gained in the supermarket business that Youme Mart Kumamoto has taken over to establish a new profitable supermarket business. The goal of this initiative is to enhance the profitability of the entire Group.

The Company has been steadily implementing initiatives to achieve its environmental KPIs in its Basic Sustainability Policy. For more information about sustainability and the current status of the Company's sustainability activities, please visit the sustainability webpage. Sustainability website

https://www.izumi.co.jp/sustainability/

In June, the Company announced initiatives for implementing management practices that take into account the cost of capital and the stock price. This announcement includes the Company's analysis of its current cost of capital and return on capital and its policy on improvement initiatives. For details, please refer to:

https://www.izumi.co.jp/corp/ir/pdf/2024/0704news.pdf

In its core retail business, system failures were caused by a ransomware attack that occurred on February 15, 2024. The ransomware attack impacted the ordering system, making it difficult to provide certain products. Some sales promotions and services were temporarily suspended, including the distribution of insert fliers from individual stores, the delivery of Youme App coupons, the e- commerce site Youme Online and the online supermarket Youme Delivery. The Company resolved these problems, the systems were restored and services returned to normal by May 1, with some exceptions. The Company then instituted measures to increase the number of customers, which had declined following the ransomware attack. To prepare for rising electricity prices, the Company

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undertook a company-wide initiative aimed at reducing electricity usage to cut costs. At the same time, the Company actively invested in growth, specifically in the opening of new stores, renovations and mergers and acquisitions.

Following the ransomware attack, the entire Group is reviewing its business processes and developing systems to increase productivity under the theme, "creative restoration."

As a result, operating results for the fiscal year under review were as shown below.

Key factors contributing to operating results

(i) Operating revenue and operating gross profit

Operating revenue rose 52,976 million yen (11.2%) year on year to 524,142 million yen. This is primarily due to consolidated subsidiary Youme Mart Kumamoto taking over the supermarket business of Seiyu Co., Ltd. in the Kyushu region.

Operating gross profit was 207,602 million yen (up 12,238 million yen year on year). This is 39.6% of operating revenue, a decrease of 1.9 percentage points from one year ago.

(ii) Selling, general and administrative expenses and operating profit

Selling, general and administrative expenses increased 18,238 million yen (11.1%) year on year to 182,177 million yen. This increase was primarily due to increased personnel expenses and other selling expenses related to the acquisition of the supermarket business. This is 34.8% of operating revenue, remaining flat compared to the previous fiscal year.

Consequently, operating profit declined 6,000 million yen (19.1%) to 25,425 million yen. This is 4.9% of operating revenue, a 1.8 percentage point decrease from the previous year.

(iii) Non-operating income and expenses and ordinary profit

Non-operating income declined by 79 million yen (5.9%) year on year, to 1,272 million yen. Non-operating expenses climbed 533 million yen (117.3%) to 989 million yen, primarily due to increased interest expenses connected to a syndicated loan arrangement. As a result, ordinary profit decreased 6,613 million yen (20.5%) year on year, to 25,708 million yen. This is 4.9% of operating revenue, a decrease of 2.0 percentage point from the previous year.

1. Extraordinary income and losses, income taxes, profit attributable to non-controlling interests, and profit attributable to owners of parent

Extraordinary income stood at 3,028 million yen (an increase of 1,608 million yen from the previous year), reflecting gain on sale of investment securities of 2,343 million yen due to the sale of cross-shareholdings. Extraordinary losses came to 8,238 million yen (an increase of 3,983 million yen from the previous year), reflecting impairment losses of 7,755 million yen.

Income taxes amounted to 7,745 million yen (a decrease of 1,111 million yen from a year ago).

Profit attributable to non-controlling interests was 834 million yen (an increase of 689 million yen from a year ago), chiefly due to gain on sale of investment securities recorded by consolidated subsidiaries.

As a consequence, profit attributable to owners of parent declined 8,566 million yen (41.8%) year on year to 11,919 million yen. This is 2.3% of operating revenue, a decrease of 2.0 percentage point from the previous year.

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(i) Retail operations

In its core retail business, system failures were caused by a ransomware attack that occurred on February 15, 2024. The ransomware attack impacted the ordering system, making it difficult to provide certain products. Some sales promotions and services were temporarily suspended, including the distribution of insert fliers from individual stores, the delivery of Youme App coupons, the e- commerce site Youme Online, and the online supermarket Youme Delivery. The Company quickly addressed these failures, and the systems and most services were returned to normal by May 1, with a few exceptions. The Company then instituted measures to increase the number of customers, which had declined following the ransomware attack.

While working to restore the systems, the Company sought to ensure its ability to supply products to minimize the customer inconvenience caused by the impact the ordering system failure had on the product line. By May 1, the Company had arranged to consistently supply products. It then focused on responding to the increasing polarization of consumption.

The Company also stepped up its collaboration in product procurement with the Nichiryu Group (Fukushima-ku, Osaka), which it joined in February 2024. In the lifestyle division, which the Company manages directly, it is introducing high-value-added, price- competitive products. The Company plans to increase the number of these products from the next fiscal year. In September, Youme Mart Kumamoto Co., Ltd. introduced Kurashi More, a private brand of the Nichiryu Group. Through these initiatives, the Group will improve its ability to meet the demand for low-priced products which is increasing due to prolonged inflation.

In April, Youme Mart Shin-Omura opened in Omura, Nagasaki. This store is located in Sakura Mirai Shin Omura, a complex that includes a Muji which provides offering household goods, a Starbucks Coffee café, and condominiums. It aims to provide "the pleasure of everyday visits" as a supportive space for everyday life and fostering connections within the local community. The Group is opening Youme Mall neighborhood shopping centers. In May, it opened Youme Mall Koshi (Koshi, Kumamoto). In September, it rebuilt Youme Town Itsukaichi (Saeki-ku, Hiroshima) and opened Youme Mall Itsukaichi (Saeki-ku, Hiroshima). Youme Malls are retail facilities that includes Youme Mart, a supermarket, and specialty tenants, such as apparel shops and restaurants. The key phrase there is "a place where people visit, meet, and rest." The Group aims to create malls that are hubs for local communities and environmentally friendly, convenient, and comfortable community-based malls designed to support healthy lifestyles.

The Group remodeled existing stores. In March, Sundrug became a tenant of Youme Town Hirajima (Higashi-ku, Okayama). In April, Muji became a tenant of Youme Town Gakuen (Higashihiroshima, Hiroshima). The Group solicits reputable tenants for its medium-term general merchandise stores to enhance their ability to attract customers. The Group added value to its large general merchandise stores by strengthening the food and beauty and drug sections of Youme Town Takamatsu (Takamatsu, Kagawa) and Youme Town Hakata (Higashi-ku, Fukuoka) in October and November, respectively. The Group expanded the sales floors that it directly operates to better meet the needs of local customers. Additionally, it solicited new food tenants to enhance the food section

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as a whole. The Group consolidated its beauty and health floors into the beauty and drug section and created new sales floors and product lines to attract new customers.

As a result of these initiatives, sales trends were as follows.

In March and April, sales activities were limited due to failures in the ordering system, which led to problems with merchandise and the suspension of activities such as the distribution of insert fliers and the delivery of app coupons. This meant fewer customers in the food and lifestyle departments directly managed by the Group, resulting in a decrease in sales. In May, the systems were restored and sales activities normalized. As a result, the number of customers increased and sales increased. The impact of the system failures on tenants was limited, and restaurants and other services performed well.

In June, the Group launched its "All-out low prices" campaign, offering discounts of up to 30% on 60 daily necessities. The goal of this initiative was to attract more customers and address the growing demand for low-priced goods due to the prolonged inflation. At the same time, the Group responded to the polarization of consumption by promoting sales of products under its own manufacturing brand Zehi as well as high value-added items, including those carefully selected in an internal evaluation process under the Kore-uma brand. These and other Group initiatives led to a further rebound in customer numbers.

Starting the beginning of fall, clothing sales in the directly managed lifestyle department were sluggish, as the drop in temperatures was delayed, resulting in persistent heat. In the directly managed food department, the Group took steps to address the polarization of consumption with a focus on low-priced products. As a result, the number of customers increased, and sales were strong. Like the directly managed lifestyle department, clothing tenants faced challenges. Meanwhile, tenants in the food and leisure categories, including restaurants and amusement facilities, had their sales increase significantly.

In the winter, as temperatures fell, in the directly managed lifestyle department, sales of underwear and clothing for women were brisk and sales of pharmaceuticals grew significantly. In the directly managed food department, customers' budget-minded behaviors intensified amid the continued rise of prices of processed food items and the increase of prices of fresh food items. There were fewer same-store customers than in the previous fiscal year. At the same time, average sales per customer rose, which helped achieve a year-on-year increase in same-store sales.

As a consequence, same-store sales (including specialty tenants' sales) in the fiscal year under review increased 0.7% year on year (before the application of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29)). Same-store sales, excluding tenant sales, declined 0.8% year on year.

Costs were affected by a company-wide review of business processes and system development aimed at enhancing productivity under the theme "creative restoration" following the system failures. The Company has made active investments in growth, including store openings, renovations, and mergers and acquisitions while implementing a company-wide initiative aimed at reducing electricity usage to prepare for rising electricity prices.

As a result, operating revenue stood at 506,985 million yen (up 11.6% year on year) and operating profit was 19,671 million yen (down 22.6% year on year).

(ii) Retail-peripheral operations

In retail-peripheral operations, the financial business and facility management business, in particular, were significantly affected by the system failures caused by the ransomware attack. However, revenue rose as the systems were restored.

In the financial business, Youme Card Co., Ltd. suffered a revenue slide, due mainly to a sales drop in the retail business following the system failures and to a contraction in fee revenue reflecting a decline in the ratio of payments using the Youme Card electronic money. The cumulative number of Youme Cards issued increased to 10,670,000 at the end of the fiscal year under review from 10,230,000 at the end of the previous fiscal year.

In the facility management business, the system failures delayed the start of renovations at Group companies. However, a major recovery in and after the second half allowed Izumi Techno Co., Ltd. to achieve an increase in revenue and profit.

Operating revenue at Izumi Food Service Co., Ltd., which operates restaurant businesses, rose compared with the previous year, when operating revenue exceeded the level in FY2019, before the COVID-19 pandemic, reflecting the progress in the normalization of social and economic activity. Sales of key brands such as Mister Donut and BR 31 Ice Cream continued to be brisk, leading to the growth of profit.

As a result, operating revenue stood at 47,927 million yen (up 7.4% year on year) and operating profit was 5,510 million yen (down 3.4% year on year).

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(iii) Other businesses

In the wholesale business, sales were weak, and the cost of sales increased chiefly due to the weak yen. Rental income in the real estate lease business was stable.

As a result, operating revenue amounted to 4,968 million yen (down 6.2% year on year) and operating profit was 574 million yen (down 11.7% year on year).

(2) Overview of Financial Position

Total assets, liabilities, and net assets at the end of the fiscal year ended February 28, 2025, year-on-year changes and major factors for the changes are as stated below.

Total assets

• Goodwill increased 54,879 million yen primarily due to the acquisition of the supermarket business operated by Seiyu Co., Ltd. in the Kyushu region. As allocation of the acquisition costs has not been completed, the amounts of goodwill are provisional estimates.
• Capital expenditures during the fiscal year under review reached 14,976 million yen, chiefly due to investments in new store openings, the revitalization of existing stores, and digital transformation. Property, plant and equipment increased 10,025 million yen after depreciation, principally due to the acquisition of the said business.
• Notes and accounts receivable - trade, and contract assets rose 7,256 million yen, mainly due to an increase in the credit transaction volume.

Liabilities

• Short-termand long-term borrowings increased 61,726 million yen, primarily due to financing for the acquisition.
• Other current liabilities increased 6,349 million yen, chiefly due to increases in accrued consumption taxes and sales deposits received from specialty tenants.

Net assets

• Retained earnings rose 5,446 million yen, indicating an increase in internal reserves.
• As a result, the equity ratio was 50.1%, a 7.2 percentage point decline from 57.3% at the end of the previous fiscal year.

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(3) Overview of Cash Flows

Cash flows from operating activities

• The main cash inflows were profit before income taxes of 20,499 million yen, depreciation of 18,109 million yen and impairment losses of 7,755 million yen.
• The major cash outflows were income taxes paid of 9,929 million yen and an increase in accounts receivable - trade and contract assets of 7,200 million yen.

Cash flows from investing activities

• The primary cash outflows were 77,676 million yen related to an absorption-type company split and purchase of property, plant and equipment totaling 17,745 million yen. The purchase of property, plant and equipment mainly involved investments in new store openings, the revitalization of existing stores, and digital transformation.

Cash flows from financing activities

• The main cash inflows were proceeds from long-term borrowings of 79,500 million yen. This cash inflow was due chiefly to a syndicated loan arrangement associated with the business acquisition.
• The major cash outflows were repayments of long-term borrowings of 15,573 million yen and dividends paid of 6,438 million yen.

As a result, the balance of cash and cash equivalents increased 3,719 million yen from the end of the previous fiscal year, to 15,717 million yen.

(Reference) Trends in cash flows-related indicators

(Notes) 1. Individual indicators are calculated using the following methods. Equity ratio: Equity/total assets

Equity ratio based on market value: Market capitalization/total assets

Debt repayment period: Interest-bearing liabilities/cash flow

Interest coverage ratio: Cash flow/interest paid

1. All the indicators are calculated using consolidated financial figures.
2. The total market value of shares are calculated on the basis of the number of issued shares excluding treasury shares.
3. The cash flow used in the above calculation is the value calculated by subtracting increases and decreases in receivables and payables arising from operating activities from cash flows from operating activities in the consolidated statement of cash flows. The interest paid used in the above calculation is that stated in the consolidated statement of cash flows.

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(4) Future Outlook

In the future, the economy is expected to recover moderately following the continued improvement of the employment and income situations. However, in view of the continued rise of the prices of goods, consumers will be increasingly cost-conscious. Regarding corporate activities, the increase in the cost of construction, logistics, procurement and other expenses makes stricter cost management necessary. There is a concern that the business environment will remain difficult.

In these circumstances, the Group announced it would revise its Second Medium-term Management Plan (from the fiscal year ended February 28, 2022 to the fiscal year ending February 28, 2026) in April 2023 and it has since implemented this revised plan. This plan defines investments in the revitalization of existing stores and initiatives for mergers, acquisitions and alliances as pillars of the growth strategy. The Group will step up these initiatives to increase its presence in the region and address social issues through its business activities. In doing this, the Group will practice its management philosophy, instilling pride and joy in its employees while contributing to the enhancement of the lives of communities and our customers. In addition to continuing to strengthen the GMS business, its main source of revenue, the Group will introduce the knowledge of efficient operations and other matters possessed by the SUNNY business, which it took over from Seiyu Co., Ltd. in August 2024, in its existing SM business to create a new highly profitable SM business. The Group will thus increase the profitability of its operations as a whole.

Through these initiatives, the Group will achieve customer satisfaction and continuously expand and strengthen its dominance in regional markets with a view toward increasing management efficiency and continuing to grow as a corporation.

(5) Basic Policy for Profit Distribution and Dividends for the Fiscal Year under Review and the Next Fiscal Year

The Company's basic policy on dividends of surplus is to have a payout ratio of 30% or more and pay progressive dividends, paying dividends twice a year as an interim dividend and a year-end dividend. Interim dividends are paid in line with a resolution by the Board of Directors and year-end dividends are paid in line with a resolution at a General Meeting of Shareholders. The Company stipulates in its articles of incorporation that it may pay interim dividends as prescribed in paragraph (5) of Article 454 of the Companies Act.

Regarding the dividends of surplus in the fiscal year under review, the Company paid an interim dividend of 45 yen per share (44 yen per share in the previous fiscal year) and it has determined that it will pay a year-end dividend of 45 yen per share (45 yen per share in the previous fiscal year) in comprehensive consideration of the financial results for the fiscal year under review, future business conditions and other factors. This totals an annual dividend of 90 yen per share (89 yen per share in the previous fiscal year).

Regarding retained earnings, the Company will maintain fiscal discipline and respond to shareholders' expectations by investing in growing areas for the medium- and long-term growth of corporate value and shareholder return. In the next fiscal year, the Company expects to pay an interim dividend of 45 yen per share and a year-end dividend of 45 yen per share, totaling an annual dividend of 90 yen per share.

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