Ohsho Food Service Corp.TSE: 9936

Notice of the 52st ordinary general meeting of shareholders（Items Not Listed in Paper-based Documents）

Jun 4, 2026 at 9:44 AM UTC · Issued by Ohsho Food Service Corp.

These documents have been translated from Japanese originals for reference purposes only. In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translations.

Securities Code 9936

To Shareholders with Voting Rights:

Naoto Watanabe President

OHSHO FOOD SERVICE CORP.

294-1 Ibanoue-cho, Nishinoyama, Yamashina-ku, Kyoto, Japan

NOTICE OF THE 52ND ORDINARY GENERAL MEETING OF SHAREHOLDERS (Items Not Listed in Paper-based Documents)

Notes to Consolidated Financial Statements on pages 2 to 15 Notes to Non-Consolidated Financial Statements on pages 16 to 22

In accordance with the provisions of laws and regulations and Article 18, paragraph 2

Articles of Incorporation, the Notes to Consolidated Financial Statements and Notes to Non-Consolidated Financial Statements are excluded from the paper-based documents delivered to shareholders (items subject to measures for electronic provision) who have made a request for delivery of such documents.

Notes to Consolidated Financial Statements

Notes on Important Matters that form the Basis for the Preparation of Consolidated Financial Statements
1. Scope of Consolidation
  1. Number of consolidated subsidiaries: 2
  2. Names of consolidated subsidiaries: OHSHO RESTAURANT SERVICE CO., LTD., OHSHO HEARTFUL CORP.
2. Application of Equity Method Not applicable
3. Fiscal Year-Ends of Consolidated Subsidiaries
  The closing date of OHSHO RESTAURANT SERVICE CO., LTD. and OHSHO HEARTFUL
  CORP. are December 31. In the preparation of consolidated financial statements, financial statements as of the above date are used, and adjustments necessary for consolidation are made for important transactions that occur between the above date and the date of the consolidation settlement of accounts.
4. Accounting Policies
  1. Standards and methods for valuation of important assets Securities
    Available-for-sale securities
    Securities other than available-for-sale securities without quoted market prices are stated at the market value based on quoted market prices, etc., on the balance sheet date. (Unrealized gains and losses are reported, net of applicable taxes, in a separate component of Net assets. The cost of securities sold is determined by the moving-average method.)
    Available-for-sale securities without quoted market prices are stated at cost determined by the moving-average method.
    Inventories
    Inventories are stated at cost determined by the weighted-average method. (The figures shown in the non-consolidated balance sheet have been calculated by writing them down based on a decline in profitability.)
  2. Depreciation or amortization method for important depreciable or amortizable assets Property, plant and equipment
    Straight-line method
    The useful life of principal assets is as below. Buildings and structures: 10 to 38 years Machinery, equipment and vehicles: 6 to 10 years Intangible assets
    Straight-line method
    Computer software for internal use is amortized evenly over the estimated internal useful life of 5 years.
  3. Accounting standards for important reserves Allowance for doubtful accounts
    An allowance for doubtful accounts is provided based on the historical write-off rate for ordinary receivables, and the estimated amount of irrecoverable debt is stated based on the recoverability of individual cases for specified receivables such as doubtful accounts.
    Provision for bonuses
    A provision for bonuses is stated at the estimated amount of bonuses to be paid to employees and part-time workers during the fiscal year under review.
    Provision for bonuses for directors (and other officers)
    A provision for bonuses for directors (and other officers) is stated at the estimated amount of bonuses to be paid to directors (and other officers) during the fiscal year under review.
  4. Accounting standards for revenue and cost
    The Group engages in the Chinese food business with the aim of operations of directly operated stores and sales of Chinese food to franchised stores.
    Revenue on directly operated stores is recognized when the food ordered by a customer, considering a user of the directly operated store to be a customer, is delivered, with the performance obligation satisfied at that time. If a customer uses coupons, etc., the amount covered by such coupons, etc., is deducted from the consideration. Based on the payment method selected by a customer, consideration is received at the same time with fulfillment of the performance obligation or within a short period of time after fulfillment of the performance obligation according to payment terms separately provided by credit card companies etc. and the amount of such consideration does not contain a significant financing component.
    Revenue from franchised stores is based on sales of Chinese food from the Company to the franchised stores based on franchise agreements, and is recognized when merchandise is transferred to the franchised stores with the performance obligation satisfied at that time.
    Considerations are received generally within one month and the amount of such considerations does not contain a significant financing component.
  5. Basis for the translation of important foreign currency assets and liabilities into Japanese currency
    The assets and liabilities of foreign subsidiaries are translated into yen based on the spot exchange rate on the closing date, while income and expenses are translated into yen based on the average exchange rate during the period under review. Any translation differences are included in Foreign currency translation adjustment difference under Net assets.
  6. Other important matters in the preparation of the consolidated financial statements Method of attributing the projected benefit obligations to periods
    Method of attributing the projected benefit obligations to periods:
    
    In the calculation of retirement benefit obligation, the benefit formula basis is applied to attribute the projected benefit obligations to periods of service until the end of the fiscal year under review.
    Method of amortizing actuarial differences
    
    Actuarial differences are amortized on a straight-line basis over the determined period (3 years) within the average remaining service years of employees when the differences occur, beginning from the fiscal year following the time of occurrence.
    Accounting treatment for unrecognized actuarial differences
    
    Regarding the treatment of unrecognized actuarial differences, after adjusting for the tax effect, they are recorded as Remeasurements of retirement benefits under Accumulated other comprehensive income under Net assets.

Notes on Accounting Estimates

Impairment of non-current assets

Amount recorded in the consolidated financial statements for the fiscal year under review

(Millions of yen)

	Carrying value on the consolidated balance sheet
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Intangible assets
Total *1

*1 Non-current assets of ¥29,256 million have been recorded on directly operated stores (551).

Notes to the Consolidated Statement of Income in the consolidated financial statements.

(Impairment loss concerning non-current assets for stores for the fiscal year under review amounts to ¥79 million)

Information regarding details of material accounting estimates for identified items

The Group owns assets that include directly operated stores, plants, and a head office in order to operate the Chinese restaurant business.

The asset group is mainly made on the basis of each store operating as an independent unit generating cash flow, and the Company identifies signs of impairment when the operating profit and loss for each store has deteriorated or when there has been a significant reduction in the

undiscounted future cash flows generated from the asset group and the book value, an impairment

loss is recognized on any asset group whose undiscounted future cash flows are lower than the book value.

The undiscounted future cash flows are estimated in accordance with the future profit and loss forecast based on the operation profit and loss performance. However, there is a possibility to recognize an impairment loss in the next fiscal year in case assumptions used in the estimation require a review due to a significant deterioration in the business environment or decision made to closing or moving of stores.

Notes on Changes in Presentation
(Regarding the Consolidated Statement of Income)
Insurance claim income separately stated -operating income in the previous consolidated fiscal year (¥169 million) Non-operating income from the consolidated fiscal year under review as it has become less than 10 hundredths of the total of non-operating income.
Notes to the Consolidated Balance Sheet
1. Accumulated depreciation of property, plant and equipment: ¥61,006 million
2. Application of the Act on Revaluation of Land
  The Company revalued its land for business use in accordance with the Act on Revaluation of Land (Law No. 34 enforced on March 31, 1998) and the Law for Partial Revision to the Act on Revaluation of Land (Law No. 19 enforced on March 31, 2001). Any difference resulting from the revaluation has
  
  Method of revaluation
  Revaluation was made based on the land price determined using the method established and published by the Director General of the National Tax Agency to calculate the land value that forms the basis for determining the taxable value for land value tax prescribed in Article 16 of the Land Value Tax Law (Law No. 69 enforced in 1991), which is stipulated in Article 2, Item 4, of the Ordinance for Enforcement of the Act on Revaluation of Land (Government Ordinance No. 119 enforced on March 31, 1998), reflecting reasonable adjustments, such as those concerning the land shape.
  Date of revaluation: March 31, 2002
  Difference between the fair value of the revalued land as of March 31, 2026, and its book value after revaluation: ¥(3,893) million

Notes to the Consolidated Statement of Income

Impairment loss

The Group records the impairment loss as follows.

Area	Usage	Type	Impairment loss (Millions of yen)
Kansai area	3 stores	Buildings and structures Tools, furniture and fixtures	6
Kanto area	2 stores	Buildings and structures Tools, furniture and fixtures	8
Koshinetsu area	1 store	Buildings and structures Tools, furniture and fixtures	64
Total			79

The grouping of assets is made mainly on the basis of stores. As to the stores for which operating profit has deteriorated or whose closure is scheduled, an impairment loss of ¥79 million (¥71 million for buildings and structures, and ¥7 million for tools, furniture and fixtures) was recorded by reducing their book value to their recoverable value. The recoverable value of assets for use at the stores was measured with the value in use at a discount rate of 5%.

Notes to the Consolidated Statement of Changes in Net Assets

Type and number of issued shares

Number of shares as

of April 1, 2025

Increase

Decrease

Number of shares as of

March 31, 2026

Common shares

69,858,690 shares

5,000,000 shares

64,858,690 shares

Note: The decrease of 5,000,000 common shares is due to cancellation of treasury shares.

Dividends of surplus

Dividends paid

Resolution

Type of shares

Total dividends

(millions of yen)

Dividend per

share (yen)

Record date

Effective date

Ordinary General Meeting of

Shareholders on June 26, 2025

Common shares

1,582

March 31, 2025

June 27, 2025

Extraordinary Board

of Directors meeting on October 31, 2025

Common shares

1,465

September 30,

2025

December 2,

2025

Dividends for which the record date falls within the fiscal year under review, but for which the effective date comes in the following fiscal year

Resolution

Type of shares

Total dividends

(millions of yen)

Dividend per

share (yen)

Record date

Effective date

Ordinary General Meeting of

Shareholders on June 26, 2025

Common shares

1,470

March 31, 2026

June 26, 2026

The following dividends on common shares will be proposed at the Ordinary General Meeting of Shareholders to be held on June 25, 2026.

The source for the payment of dividends will be Retained earnings.

Notes on Financial Instruments

Status of financial instruments
1. Policy for handing financial instruments
  The Group limits the financial instruments for fund management to short-term financial assets such as deposits, while using bank loans for financing. The Company uses derivatives to hedge the interest-rate risk associated with loans payable and does not engage in speculative transactions.
2. Components and risks of financial instruments and risk management structure
  Investment securities mostly consist of shares of the companies with which the Group has business relations, which are exposed to market price fluctuation risk. Such risk is controlled by
  list thereof and other means,
  
  the details of which are reported to the Board of Directors.
  Guarantee deposits primarily consist of the deposits and guarantee money for rented stores, which are exposed to the credit risk of the lessors. We are working to reduce such risk by making efforts to register and conserve the right to claim refund of deposits when entering into a lease contract.
  Loans payable are primarily intended to procure necessary operating funds and capital investment funds, and they are due within 5 years as a general rule. Borrowings with variable interest rates are exposed to interest-rate fluctuation risk, which is addressed by making proper financing plans.
  Liquidity risk associated with financing, that is, the risk of being unable to pay on the due date, is mitigated by the Finance Department formulating and updating financing plans when appropriate based on reports from each department and keeping sufficient liquidity on hand.
  Execution and management of derivative transactions are handled by the Finance Department after getting approval through the ringi internal approval system.
3. Supplementary explanation on the fair value of financial instruments
  Because variable factors are used to calculate such fair value, it is subject to change if different assumptions are used for the calculation of the fair value of financial instruments.

Fair value of financial instruments

The consolidated balance sheet amount and the fair value of financial instruments as of March 31, 2026, as well as any difference between the two, are as follows.

(Millions of yen)

	Carrying value on the consolidated balance sheet	Fair value	Difference
(1) Investment securities Available-for-sale securities (2) Guarantee deposits Allowance for doubtful accounts*2

Total assets
(1) Long-term loans payable (including the current portion thereof)
Total liabilities

*1 Cash and deposits are excluded due to that is cash and that deposits are settled within a short time and the fair value thereof is almost equal to the book value.

*2 Allowance for doubtful accounts, which is provided for guarantee deposits on an individual basis, is deducted from the amount of guarantee deposits.

Compositions etc. for each level of financial instrument fair value

Fair value of financial instruments is classified into following three levels based on observability and significance of inputs used to measure fair value.

Level 1: Fair value measured using observable inputs which are quoted price in active markets for identical assets or liabilities

Level 2: Fair value measured using observable inputs other than those included within Level 1 Level 3: Fair value measured using unobservable inputs

In case a fair value is measured using multiple inputs with significant impacts, the fair value is classified into the lowest priority level out of levels each input of the fair value measurement belongs to.

Financial instruments recorded in the consolidated balance sheet at fair value

(Millions of yen)

Title	Fair value
Title	Level 1	Level 2	Level 3	Total
Investment securities Available-for-sale securities Shares		-	-
Total assets		-	-

Financial instruments other than recorded in the consolidated balance sheet at fair value

Title	Fair value
Title	Level 1	Level 2	Level 3	Total
Guarantee deposits	-		-
Total assets	-		-
Long-term loans payable (including the current portion thereof)	-		-
Total liabilities	-		-

(Millions of yen)

Note: Descriptions for evaluation methods and inputs used for fair value measurement Investment securities

Listed shares are evaluated using quoted market prices. Listed shares are classified in Level 1 as they are traded in active markets.

Guarantee deposits

Guarantee deposits are divided by collection period, and the fair value of each group of guarantee deposits is based on the present value of their future cash flows discounted using appropriate discount rates, such as the yield of government bonds. The fair value of guarantee deposits is classified in Level 2. The fair value of doubtful accounts receivable is calculated based on the collectable amount thereof through collateral and guarantees.

Long-term loans payable

The fair value of long-term loans payable is based on the present value obtained by discounting the total of principal and interest using an interest rate that is reasonably estimated should a similar new loan be made, and is classified in Level 2.

Notes on Investment and Rental Properties

Status of investment and rental properties
The Company has rental properties, including rental commercial facilities and rental apartments (including land) in Hyogo Prefecture and other areas. For the fiscal year ended March 31, 2026, net income from these rental properties amounted to ¥28 million, of which revenue is included in Non-operating income and main rent expenses are included in Non-operating expenses.

Fair value of investment and rental properties

The carrying value of investment and rental properties on the consolidated balance sheet, the increase/decrease thereof for the fiscal year under review and the fair value thereof as of March 31, 2026, were as follows.

(Millions of yen)

Carrying value on the consolidated balance sheet			Fair value as of March 31, 2026
Balance as of April 1, 2025	Increase/Decrease	Balance as of March 31, 2026	Fair value as of March 31, 2026

Notes: 1. The carrying value on the consolidated balance sheet was obtained by deducting the accumulated depreciation from the acquisition cost

Increase/Decrease
The increase during the fiscal year under review mainly resulted from conversion and depreciation of the properties.
Calculation methods of fair value

The fair value of the major properties was based on a real estate appraisal value calculated by external real estate appraisers. The fair value of the other properties was internally determined according to the

the value of some was adjusted using indices or other

means.

Notes on Revenue Recognition

Information for breakdown of revenue from contracts with customers

(Millions of yen)

	Fiscal year under review (From April 1, 2025 to March 31, 2026)
Directly operated stores (domestic) Store food and beverage Takeout and delivery	81,180 25,492
Total
Franchised stores
Domestic subtotal
Directly operated stores (overseas)
Revenue from contracts with customers
Other revenue
Revenues from external customers

Basic information to understand revenue from contracts with customers

on Important Matters that form the Basis for the Preparation of Consolidated Financial Statements,
(4) Accounting Policies, 4) Accounting standards for reve

Information to understand the amount of revenue in the fiscal year under review and after the next fiscal year

Receivables from contracts with customers, etc.

(Millions of yen)

Fiscal year under review

(From April 1, 2025 to March 31, 2026)

Balance at the beginning of

the year

Balance at the end of the

year

Receivables from contracts with customers

Accounts receivable-trade

3,508

3,546

Contract liabilities are excluded due to its insignificance.

Transaction prices allocated to residual performance obligations
Transaction prices allocated to residual performance obligations are omitted because the Company and its consolidated subsidiaries have no material contracts with initially expected contract terms exceeding one year. Residual performance obligations mainly consist of sales of Chinese food ingredients and other products to franchisees. There are no material amounts of consideration arising from contracts with customers that are not included in the transaction prices.

Per Share Information
Net assets per share: ¥1,238.68
Basic earnings per share: ¥140.84
Other Notes
Retirement benefit accounting
1. Description of adopted retirement benefit plans
  -benefit pension
  
  plans. Retirement benefits are paid as lump-sum money or pension under the defined-benefit corporate pension plans (entirely funded type), based on the length of service years and other factors.
2. Defined-benefit pension plans
  1. Adjustments between the beginning and ending balances of the retirement benefit obligation
    (Millions of yen)
    Retirement benefit obligation at the beginning of the year
    Service cost Interest cost
    Actuarial differences generated Retirement benefits paid
    Retirement benefit obligation at the end of the year
  2. Adjustments between the beginning and ending balances of plan assets
    (Millions of yen)
    Plan assets at the beginning of the year
    Expected return on plan assets Actuarial differences generated Contribution from employers Retirement benefits paid
    Plan assets at the end of the year
  3. Adjustments between the ending balances of the retirement benefit obligation and plan assets and the net defined benefit asset reported on the consolidated balance sheet
    (Millions of yen)
    
    Retirement benefit obligation for funded plans Plan assets
    
    Net asset or liability reported on the consolidated balance
    sheet
    
    Net defined benefit asset
    
    Net asset or liability reported on the consolidated balance
    sheet
  4. Breakdown of retirement benefit expenses
    
    Service cost Interest cost
    Expected return on plan assets Amortization of actuarial differences
    Retirement benefit expenses for defined benefit plans
    (Millions of yen)
  5. Breakdown of remeasurements of defined benefit plans, net of tax
    The breakdown of items recorded under remeasurements of defined benefit plans, net of tax (before deductions of corporate taxes, etc. and the tax effect) is as follows.
    (Millions of yen)
    Actual differences
  6. Breakdown of remeasurements of defined benefit plans
    The breakdown of items recorded under remeasurements of defined benefit plans (before deductions of corporate taxes, etc. and the tax effect) is as follows.
    (Millions of yen)
    Unrecognized actual differences 1,183
  7. Plan assets
    
    Major components of plan assets: Plan assets consist of the following.
    
    Domestic bonds
    
    Foreign bonds Domestic stocks Foreign stocks Other
    Total
    Method for determining the long-term expected return on plan assets:
    
    To determine the long-term expected rate of return on plan assets, the current and expected portfolio of the plan assets, as well as the current and anticipated long-term return on various assets comprising the plan assets, are considered.
  8. Assumptions used in the actuarial calculations

The major assumptions used in the actuarial calculations as of March 31, 2026, were as follows.

Discount rate	3.2%
Long-term expected rate of return on plan assets	2.0%
Selection rate of lump-sum payment	100.0%

Asset retirement obligations

Asset retirement obligations recorded on the consolidated balance sheet

Description of these asset retirement obligations
These are the obligations for restoration to the original state required in lease contracts on buildings, including stores.
Method of calculating the amount of these asset retirement obligations
The periods of using the assets are estimated to be the respective contract terms for those under unrenewable contracts or 20 years for other assets. The distribution yields of government bonds corresponding to these estimated periods are used as discount rates for the calculation of asset retirement obligations.
Changes in the total amount of these asset retirement obligations during the fiscal year under review

(Millions of yen)

Balance at the beginning of the year

Increase due to the acquisition of property, plant and equipment

Adjustments associated with the passage of time Decrease due to the asset retirement obligations Foreign exchange differences

Increase (decrease) due to changes in estimates Balance at the end of the year

Notes to Non-Consolidated Financial Statements

Notes on Significant Accounting Policies
1. Standards and methods for valuation of important assets
  1. Securities
    Available-for-sale securities
    Securities other than available-for-sale securities without quoted market prices are stated at the market value based on quoted market prices, etc., on the balance sheet date. (Unrealized gains and losses are reported, net of applicable taxes, in a separate component of Net assets. The cost of securities sold is determined by the moving-average method.)
    Available-for-sale securities without quoted market prices are stated at cost determined by the moving-average method.
  2. Inventories
    Inventories are stated at cost determined by the weighted-average method. (The figures shown in the non-consolidated balance sheet have been calculated by writing them down based on a decline in profitability.)
2. Depreciation or amortization method for non-current assets Property, plant and equipment
  Straight-line method
  The useful life of principal assets is as below. Buildings: 10 to 38 years
  Structures: 10 to 20 years
  Machinery and equipment: 8 to 10 years Intangible assets
  Straight-line method
  Computer software for internal use is amortized evenly over the estimated internal useful life (5 years).
  Long-term prepaid expenses Depreciation based on the period
3. Accounting standards for reserves
  1. Allowance for doubtful accounts
    An allowance for doubtful accounts is provided based on the historical write-off rate for ordinary receivables, and the estimated amount of irrecoverable debt is stated based on the recoverability of individual cases for specified receivables such as doubtful accounts.
  2. Provision for bonuses
    A provision for bonuses is stated at the estimated amount of bonuses to be paid to employees and part-time workers during the fiscal year under review.
  3. Provision for bonuses for directors (and other officers)
    A provision for bonuses for directors (and other officers) is stated at the estimated amount of bonuses to be paid to directors (and other officers) during the fiscal year under review.
  4. Provision for retirement benefits
    To prepare for the payment of retirement benefits to employees, a provision for retirement benefits is provided based on the estimated amount of retirement benefit obligation and plan assets at the end of the fiscal year under review.
    Method of attributing the projected benefit obligations to periods:
    
    In the calculation of retirement benefit obligation, the benefit formula basis is applied to attribute the projected benefit obligations to periods of service until the end of the fiscal year under review.
    Method of amortizing actuarial differences:
    
    Actuarial differences are amortized on a straight-line basis over the determined period (3 years) within the average remaining service years of employees when the differences occur, beginning from the fiscal year following the time of occurrence.
    If the plan assets to be recognized at the end of the fiscal year under review exceed the amount obtained by deducting the unrecognized actuarial differences from the retirement
    estments and
    
    other assets.
    The treatment of unrecognized actuarial differences on the non-consolidated balance sheet is different from that on the consolidated balance sheet.
4. Accounting standards for revenue and cost
  The Company engages in Chinese food business with the aim of operations of the directly operated stores and sales of Chinese food to the franchised stores.
  Revenue on the directly operated store is recognized when the food ordered by a customer, considering a user of the directly operated store to be a customer, is delivered to him/her as the performance obligation is satisfied at such timing. If a customer uses coupons, etc., the amount covered by such coupons, etc., is deducted from the consideration. Based on the payment method selected by a customer, consideration is received at the same time with fulfillment of the performance obligation or within a short period of time after fulfillment of the performance obligation according to payment terms separately provided by credit card companies etc. and the amount of such consideration does not contain a significant financing component.
  Revenue from franchised stores is based on sales of Chinese food from the Company to the franchised stores based on franchise agreements, and is recognized when merchandise is transferred to the franchised stores with the performance obligation satisfied at that time.
  Considerations are received generally within one (1) month and the amount of such considerations does not contain a significant financing component.

Notes on Accounting Estimates

Impairment of non-current assets

Amount recorded in the financial statements for the fiscal year under review

(Millions of yen)

	Fiscal year under review
Buildings	14,705
Structures	1,027
Machinery and equipment	1,998
Vehicles	49
Tools, furniture and fixtures	2,661
Land	19,902
Intangible assets	531
Total *1	40,875

*1 Non-current assets of ¥29,250 million have been recorded on directly operated stores (549). Impairment loss recorded in the fiscal year under review is described in "(2) Impairment loss" in 5. Notes to the non-Consolidated Statement of Income in the non-consolidated financial statements. (Impairment loss concerning non-current assets for stores for the fiscal year under review amounts to ¥79 million)

Information regarding details of material accounting estimates for identified items

The method of calculating the amount in 1) is the same as for the "Impairment ofnon-current assets" in 2. Notes on Accounting Estimates in the consolidated financial statements.

Notes on Changes in Presentation
(Regarding the Non-consolidated Statement of Income)
Insurance claim income separately stated -operating income in the previous fiscal year (¥169 million) is Non-operating income from the fiscal year under review as it has become less than 10 hundredths of the total of non-operating income.
Notes to the Non-Consolidated Balance Sheet
1. Accumulated depreciation of property, plant and equipment: ¥60,801 million
2. Application of the Act on Revaluation of Land
  The Company revalued its land for business use in accordance with the Act on Revaluation of Land (Law No. 34 enforced on March 31, 1998) and the Law for Partial Revision to the Act on Revaluation of Land (Law No. 19 enforced on March 31, 2001). Any difference resulting from the revaluation has
  
  Method of revaluation
  Revaluation was made based on the land price determined using the method established and published by the Director General of the National Tax Agency to calculate the land value that forms the basis for determining the taxable value for land value tax prescribed in Article 16 of the Land Value Tax Law (Law No. 69 enforced in 1991), which is stipulated in Article 2, Item 4, of the Ordinance for Enforcement of the Act on Revaluation of Land (Government Ordinance No. 119 enforced on March 31, 1998), reflecting reasonable adjustments, such as those concerning the land shape.
  Date of revaluation: March 31, 2002
  Difference between the fair value of the revalued land as of March 31, 2026, and its book value after revaluation: ¥(3,893) million
3. Monetary claims and monetary obligations to subsidiaries and associates
  Besides items presented separately, the amount of monetary claims and monetary obligations to the said subsidiaries and associates are as follows.
  Short-term monetary claims: ¥1 million Short-term monetary obligations: ¥10 million
4. Total amount of monetary obligations to Directors: ¥7 million

Notes to the Non-Consolidated Statement of Income
1. Total turnover amount of operating transactions and non-operating transactions with subsidiaries and associates
  Operating transactions: ¥119 million
  Non-operating transactions: ¥8 million
2. Impairment loss

The Company records the impairment loss as follows.

Area	Usage	Type	Impairment loss (Millions of yen)
Kansai area	3 stores	Buildings Tools, furniture and fixtures	6
Kanto area	2 stores	Buildings Structures Tools, furniture and fixtures	8
Koshinetsu area	1 store	Buildings Structures Tools, furniture and fixtures	64
Total			79

The grouping of assets is made mainly on the basis of stores, and the assets to be disposed of are on the basis of items. As to the stores for which operating profit has deteriorated or whose closure is scheduled, and assets to be disposed of by sale, an impairment loss of ¥79 million (¥71 million for buildings, ¥0 million for structures, and ¥7 million for tools, furniture and fixtures) was recorded by reducing their book value to their recoverable value. The recoverable value of assets for use at the stores was measured with the value in use at a discount rate of 5%.

Notes to the Non-Consolidated Statement of Changes in Net Assets

Type and number of treasury shares

	Balance as of April 1, 2025	Increase	Decrease	Balance as of March 31, 2026
Common shares	13,348,629 shares	4,201,900 shares	5,223,100 shares	12,327,429 shares

Notes: 1. The increase of 4,201,900 treasury shares consisted of 4,200,000 shares acquired by resolution of the Board of Directors, 45 shares acquired in accordance with the purchase of fractional shares, and 1,855 shares acquired without consideration.

2. The decrease of 5,223,100 shares consisted of 5,000,000 shares cancelled due to cancellation of treasury shares, 38,175 shares granted to Directors and Executive Officers as restricted stock, and 184,925 shares granted to employees as restricted stock.

Tax-Effect Accounting

Major components of deferred tax assets and liabilities
Deferred tax assets: Provision for bonuses Enterprise taxes payable
Allowance for doubtful accounts Property, plant and equipment Accumulated impairment loss Asset retirement obligations Investment securities
Investment in capital of subsidiaries and associates Other
Total gross deferred tax assets Valuation allowance
Total deferred tax assets Deferred tax liabilities:
Expenses for fulfilling asset retirement obligations Prepaid pension cost
Reserve for advanced depreciation of non-current assets Valuation difference on available-for-sale securities Reserve of gains on insurance claims
Total deferred tax liabilities Net deferred tax assets

(Millions of yen)

Breakdown of items that caused the difference between the statutory tax rate and the effective tax rate after the adoption of tax-effect accounting

Statutory tax rate	30.5%
(Adjustment)
Per capita taxes	2.5%
Entertainment expenses, etc.	0.5%
Tax credit for wage increase promotion	(3.7)%