MediPal : Consolidated Financial Statements for the Fiscal Year Ended March 31, 2026

May 14, 2026

The financial statements herein have been prepared in accordance with accounting principles and practices widely accepted in Japan, and are for reference purposes only.

Stock exchange listing: Tokyo Stock Exchange Stock exchange code: 7459

Website: https://www.medipal.co.jp/english/

Representative: Shuichi Watanabe, Representative Director, President and CEO

Contact: Toshiyuki Ikeuchi, Executive Officer and Head of Corporate Communications Department Telephone: +81-3-3517-5171

Annual general meeting of shareholders (scheduled): June 24, 2026 Start of distribution of dividends (scheduled): June 2, 2026

Filing of securities report (Yuka Shoken Hokokusho) (scheduled): June 23, 2026 Supplementary materials for the financial statements: Yes

Presentation to explain the financial statements: Yes (for institutional investors and securities analysts)

(All amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (April 1, 2025, to March 31, 2026)

   1. Sales and Profits (The year-on-year change refers to the previous fiscal year)

      	Net sales (Millions of yen)	Year-on-year change (%)	Operating profit (Millions of yen)	Year-on-year change (%)	Ordinary profit (Millions of yen)	Year-on-year change (%)
      Year ended March 31, 2026	3,817,354	4.0	53,182	(4.4)	75,723	16.0
      Year ended March 31, 2025	3,671,328	3.2	55,609	17.5	65,255	1.1

      Note: Comprehensive income increased by 42.6% to ¥66,766 million in the year ended March 31, 2026, and decreased by 27.6% year on year to ¥46,832 million in the year ended March 31, 2025.

      	Profit attributable to owners of parent (Millions of yen)	Year-on-year change (%)	Earnings per share (Yen)	Diluted earnings per share (Yen)	Return on equity (%)	Ordinary profit to total assets (%)	Operating profit to net sales (%)
      Year ended March 31, 2026 Year ended March 31, 2025	42,534 40,279	5.6 (2.9)	206.67 193.20	- -	6.7 6.6	4.0 3.6	1.4 1.5

      (Reference) The share of profit of entities accounted for using the equity method increased by ¥3,907 million in the year ended March 31, 2026, and decreased by ¥3,768 million in the year ended March 31, 2025.

   2. Financial Position

      	Total assets (Millions of yen)	Net assets (Millions of yen)	Net worth ratio* (%)	Net assets per share (Yen)
      As of March 31, 2026 As of March 31, 2025	1,922,002 1,824,984	795,399 757,947	33.9 33.9	3,186.01 2,979.39

      (Reference)Calculated based on net worth of ¥652,172 million as of March 31, 2026, and ¥619,564 million as of March 31, 2025.

   3. Consolidated Cash Flows

   	Cash flows from operating activities (Millions of yen)	Cash flows from investing activities (Millions of yen)	Cash flows from financing activities (Millions of yen)	Cash and cash equivalents at end of period (Millions of yen)
   Year ended March 31, 2026	46,552	9,299	(29,397)	286,539
   Year ended March 31, 2025	60,559	(3,363)	(25,947)	259,337

2. Dividend Payments

   	Dividends per share (Yen)					Total dividends paid (full year) (Millions of yen)	Payout ratio (consolidated) (%)	Dividends to net assets ratio (consolidated) (%)
   	1st quarter	2nd quarter	3rd quarter	Year-end	Full year
   Paid for the year ended March 31, 2025 Paid for the year ended March 31, 2026	- -	30.00 32.00	- -	32.00 34.00	62.00 66.00	12,892 13,530	32.1 31.9	2.1 2.1
   Planned for the year ending March 31, 2027	-	34.00	-	34.00	68.00		35.7

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2027 (April 1, 2026, to March 31, 2027)

   (The year-on-year change refers to the previous fiscal year)

   	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Earnings per share
   	(Millions of yen)	YoY change	(Millions of yen)	YoY change	(Millions of yen)	YoY change	(Millions of yen)	YoY change	(Yen)
   Full fiscal year	3,944,000	3.3	55,000	3.4	71,500	(5.6)	39,000	(8.3)	190.52

   Notes

   1. Significant changes in scope of consolidation in the fiscal year ended March 31, 2026: Yes Subsidiaries added to the scope of consolidation: 2 (Cygni Holdings, Inc., and Cygni Corporation) Subsidiaries removed from the scope of consolidation: 2 (MVC Co., Ltd., and PharField Corporation)

      Note: MVC Co., Ltd., was removed from the scope of consolidation because it was absorbed by the Company's wholly owned subsidiary, ATOL Co., Ltd. (the surviving company of the merger) effective from April 1, 2025. PharField Corporation was removed from the scope of consolidation because it transferred its business during the current fiscal year and resolved to dissolve in March 2026, and therefore no longer has a material impact on the consolidated financial statements. Cygni Holdings, Inc., and Cygni Corporation were added to the scope of consolidation since the former was acquired on January 30, 2026, and the latter is its subsidiary. Since the date of the deemed acquisition was at the end of the fiscal year, only the balance sheet was affected.

   2. Changes in accounting policies and estimates, and restatements of accounting estimates

      1. Changes in accounting policies due to revisions of accounting standards: None

      2. Changes in accounting policies other than (a) above: None

      3. Changes in accounting estimates: None

      4. Restatements: None

   3. Number of shares issued and outstanding (common stock)

      Year ended March 31, 2026	215,975,042	Year ended March 31, 2025	219,226,042
      Year ended March 31, 2026	11,276,403	Year ended March 31, 2025	11,275,805
      Year ended March 31, 2026	205,804,884	Year ended March 31, 2025	208,490,602

      1. Number of shares issued at the end of the period (including treasury stock)

      2. Number of treasury shares at the end of the period

      3. Average number of shares outstanding during the period

(Reference) Summary of Unconsolidated Financial Results

1. Sales and Profits (The year-on-year change refers to the previous fiscal year.)

   	Net sales (Millions of yen)	Year-on-year change (%)	Operating profit (Millions of yen)	Year-on-year change (%)	Ordinary profit (Millions of yen)	Year-on-year change (%)
   Year ended March 31, 2026	31,204	2.7	17,014	(10.5)	23,177	13.2
   Year ended March 31, 2025	30,383	0.3	19,017	47.9	20,467	45.4

   	Profit (Millions of yen)	Year-on-year change (%)	Earnings per share (Yen)	Diluted earnings per share (Yen)
   Year ended March 31, 2026 Year ended March 31, 2025	16,002 20,762	(22.9) (1.5)	77.75 99.58	- -

2. Financial Position

(Reference)Calculated based on net worth of ¥343,438 million as of March 31, 2026, and ¥345,083 million as of March 31, 2025.

* This summary of consolidated results is exempt from audits by certified public accountants or audit corporations.

* Cautionary Remarks Regarding Proper Use of Projected Results and Other Items

The forecast of consolidated results is based on information at the time of this announcement. Actual results may differ from the figures in the forecast owing to a wide range of factors. See page 10 of the attached materials for information regarding projected results.

Note that impact of the tender offer described in the "Notice Regarding Launch of Tender Offer for Shares of PALTAC Co., Ltd. (Stock Code: 8283)" announced on May 11, 2026 has not been factored in at this time, and some results may vary depending on the outcome of said offer. The earnings forecast after the conversion into a wholly-owned subsidiary will be disclosed at an appropriate time.

(How to Access Supplemental Materials for Financial Results)

The materials will be posted in "IR Library" on the MEDIPAL HOLDINGS CORPORATION ("MEDIPAL") website.

1

(i) Business Overview

Based on its management philosophy, "Contributing to people's health and the advancement of society through creation of value in distribution," the MEDIPAL Group is developing our business in the Pharmaceuticals, Health, and Beauty fields across three segments: Prescription Pharmaceutical Wholesale Business, Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business, and Animal Health Products and Food Processing Raw Materials Wholesale and Related Business. These businesses handle products that are essential for people's livelihoods and healthy living, including prescription pharmaceuticals, medical equipment, clinical diagnostic reagents, daily necessities, cosmetics, and food processing raw materials. Accordingly, the MEDIPAL Group recognizes that it has an important duty as an enterprise responsible for social infrastructure to maintain a logistics and distribution network that can reliably ensure product shipments not only in normal times but also during emergencies.

Based on this commitment, the MEDIPAL Group formulates business continuity plans (BCP) and strives to make further improvements to its logistics platform.

In line with these strategies, the MEDIPAL Group worked to enter overseas markets during the fiscal year under review. For example, it carried out research and development aimed at the global launch of new drugs for ultra-rare diseases in collaboration with JCR Pharmaceuticals Co., Ltd. (Ashiya-shi, Hyogo; hereinafter, "JCR"). As part of this joint development, a therapeutic drug for mucopolysaccharidosis type IIIB (JR-446) developed by JCR was designated as an orphan drug by the U.S. Food and Drug Administration (FDA) in April 2025 and the European Commission (EC)in June 2025. It was also designated as a drug for treating rare diseases by Ministry of Health, Labour and Welfare (MHLW) in September of the same year. Along with these important milestones, MEDIPAL HOLDINGS CORPORATION concluded a global licensing deal and a joint-development and commercialization partnership in Japan in August 2025 for a candidate drug (JR-479) being developed by JCR for treating GM2 gangliosides, a group of ultra-rare lysosomal storage disorders.

In January 2026, the MEDIPAL Group's consolidated subsidiary, MP AGRO CO., LTD. (Kitahiroshima-shi, Hokkaido; hereinafter, "MP AGRO") acquired all shares of Cygni Holdings, Inc. (Chuo-ku, Tokyo; hereinafter "Cygni Holdings"), which owns all shares of Cygni Corporation (Koto-ku, Tokyo; hereinafter "Cygni"), an operator of an e-commerce business targeting veterinary clinics. By making Cygni, which sells to veterinary clinics throughout Japan, a wholly owned subsidiary of MP AGRO, the Group intends to leverage the strengths of both firms to generate synergies. In that way, it aims to boost sales to veterinary clinics nationwide and broaden online sales channels while expanding businesses involved in companion animal1 products, an area of the MEDIPAL Group's AGRO & FOOD Business.

In addition, the MEDIPAL Group has been investing in startups in Japan through the MEDIPAL Innovation Fund, with the goals of expanding its revenue base and maximizing corporate value while contributing build a more sustainable economy and society.

Definition of terms:

1 Companion animal: An animal that has a companion-like presence and a close relationship with people in daily life.

2