Financial Results for the Fiscal Year Ended February 28, 2026 presentation

1. Financial Results for FY Ended Feb 2026

   (FY2025)
2. Forecasts for FY Ending Feb 2027 (FY2026)
3. Progress and Revisions of the Medium-Term Management Plan (FY2024 - FY2026)
4. Path to Profit Growth and Evolution of Capital

Toward the 200th Anniversary of Takas himaya in 2031

Introduction of profit indicator unique to Takashimaya called “business profit” (from FY2025)

1. Calculation formula

   Business profit = Operating profit + Equity in earnings of affiliates + Dividend income

2. Purpose

   • We are promoting ROIC management to realize a well-balanced business portfolio that can flexibly respond to changes in the operating environment (Japan/Overs eas/Department

     stores /Non-department stores)

   • We plan to increase NOPAT [EBIT], which is the numerator for ROIC calculation (*), in the future, including dividend income from the Vietnam business, positioned as a growth driver

   • We will improve the effectivenes s of ROIC management by introducing a proprietary profit indicator called “business profit” (KPI setting)

*ROIC (Return on invested capital) = NOPAT ÷ Invested capital

NOPAT = EBIT (Ordinary profit + Interest expense - Interest income) x (1 - Effective tax rate)

1. Financial Results for FY Ended Feb 2026 (FY2025)
   1. Key Points of Results
   2. Consolidated Results
   3. Results by Segment
   4. Consolidated Balance Sheet
   5. Consolidated Cash Flows
      1. Key Points of FY2025 Results

         • Total operating revenue remained at the same level as FY2024 at ¥1.0 tn despite the pullback in inbound demand from FY2024

         • Operating profit, business profit, and ordinary profit all came in at levels exceeding the forecasts

         • Purchased and cancelled the Zero Coupon Convertible Bonds (CB) due 2028 to alleviate concerns about EPS dilution and enhance medium- to long-term shareholder value

           Net profit improved compared to the forecast despite a temporary extraordinary loss as a result of the CB purchase and cancellation

           • Excluding the impact of that extraordinary loss, net profit was higher than initially forecast (¥40.0 billion as of Oct. 2025)

      2. Consolidated Results

      • Total operating revenue increased in H2 and exceeded the forecast despite a decrease due to the pullback in inbound demand in H1

      • Operating profit, business profit, and ordinary profit all increased in H2 to beat the forecasts

        YoY FY2025 Change
        1,032.3	(0.0%)
        299.6	+0.2
        246.1	+4.2
        23.8%	+0.4
        53.5	(4.0)
        5.2%	(0.4)
        59.6	(3.7)
        56.9	(3.5)
        (8.2)	(47.7)

        Change from forecast

        +1.7%

        +2.5

        +1.5

        (0.3)

        +1.0

        +0.0

        +2.6

        +3.9

        +2.3

        YoY H1 Change
        487.2	(3.9%)
        143.5	(3.4)
        119.8	+1.7
        24.6%	+1.3
        23.7	(5.1)
        4.9%	(0.8)
        25.2	(6.4)
        22.0	(8.2)
        21.2	+2.1

        YoY H2 Change
        545.1	+3.6%
        156.1	+3.6
        126.2	+2.5
        23.2%	(0.4)
        29.9	+1.1
        5.5%	+0.0
        34.5	+2.6
        34.9	+4.7
        (29.4)	(49.9)

      • Net profit improved by ¥2.3 bn compared to the forecast that had factored in the impact of the extraordinary loss as a result of the CB purchase and cancellation

        (billion JPY)

        Total operating revenue Gross profit

        SG&A expenses

        SG&A to total operating revenue ratio

        Operating profit

        Operating profit to total operating revenue ratio

        *Business profit

        Ordinary profit

        Profit attributable to owners of parent

        *Business profit : Operating profit + Share of profit of equity method affiliates + Dividend income

        Excluding the impact of the extraordinary loss as a result of the CB purchase and cancellation, net profit (approx. ¥42.0 bn) exceeded the forecast as of Oct. 2025 (¥40.0 bn)

• The main reason for both the ¥4.0 bn fall in operating profit and the ¥1.0 bn outperformance of the forecast was the Department Stores in Japan segment

• The Commercial Property Development (in Japan / Overseas) segment is in a phase until FY2026 under the current Medium-Term Management Plan

• The Finance segment, positioned as a growth driver, is steadily growing

  YoY FY2025 Change
  322.0	(4.1%)
  24.9	(3.7)
  35.2	(0.1%)
  8.5	+ 0.2
  52.0	+2.0%
  6.6	(0.3)
  16.4	+2.1%
  5.8	(0.1)

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Department Stores in Japan

  (billion JPY)

  Change from forecast

  (0.9%)

  + 1.8

  (0.6%)

  (0.4)

  +0.0%

  + 0.4

  +0.7%

  + 0.0

  YoY FY2025 Change
  25.2	+8.8%
  5.6	+ 0.7
  37.8	+12.9%
  2.5	+ 0.4
  59.1	+4.3%
  2.0	+ 0.0
  492.4	(1.2%)
  53.5	(4.0)

  Change from forecast

  +0.3%

  + 0.2

  +6.8%

  + 0.1

  (1.9%)

  (0.5)

  +0.2%

  + 1.0

  Finance

  Overseas Department

  Stores

  Construction &

  Design

  Commercial Property

  Development in Japan

  Others

  Overseas Commercial

  Property Development

  +2.6

  59.6 (3.7)

  Business profit

Additions to

Operating profit

Share of profit of equity method affiliates

Dividend income from affiliates in Vietnam

4.2 +0.5 +2.0

1.3 (0.2) (0.4)

• Total operating revenue beat the forecast driven by steady revenue from domestic customers who account for the majority of revenue

• The gross margin ratio fell short of the forecast due to a change in the composition ratio as a result of an expansion in the share of high-ticket items among domestic customers

  YoY FY2025 Change
  850.2	(1.0%)
  21.98%	(0.13)
  192.9	(3.8)
  168.0	(0.1)
  19.8%	+0.2
  24.9	(3.7)
  2.9%	(0.4)

  Change from forecast

  +1.7%

  (0.35)

  +1.2

  (0.6)

  (0.4)

  +1.8

  +0.2

  YoY H1 Change
  401.8	(4.9%)
  22.23%	+0.12
  92.0	(4.4)
  82.4	+0.5
  20.5%	+1.1
  9.6	(4.8)
  2.4%	(1.0)

  YoY H2 Change
  448.4	+2.7%
  21.76%	(0.35)
  100.9	+0.6
  85.6	(0.6)
  19.1%	(0.7)
  15.3	+1.2
  3.4%	+0.2

• By controlling overall SG&A expenses, we kept them at the same level as in FY2024, and also saw an improvement compared to the forecast

  (billion JPY)

  Gross margin ratio

  [% of in-store Total sales]

  Total operating revenue

  Gross profit SG&A expenses

  SG&A to total operating revenue ratio

  Operating profit

  Operating profit ratio

  [% of Total operating revenue]

  3-2. [Department Stores in Japan] SG&A Expenses

• Expenses for promoting human capital management, such as base pay increases, etc., are being allocated continuously

• Expenses for strengthening sales, such as new event development, etc., will be appropriately allocated after determining effectiveness

• Cost reductions amounted to ¥6.4 bn compared to the forecast of ¥5.8 bn to contribute to a ¥0.6 bn improvement from the overall forecast

  Breakdown of YoY change

  (billion JPY)

  FY2025

  YoY change

  Human capital investments

  Measures for making department stores more profitable

  Inflation

  Variable costs

  Change from forecast

  (0.3)

  +0.1

  +0.8

  (1.2)

  (0.6)

  Cost optimization program

  Personnel related expenses

  Advertising expenses

  54.0 (0.2)

  11.7 (0.5)

  +1.7

  +0.9

  +0.9

  Incl. impact of changes to the

  reward point program +0.2

  (2.9)

  (1.4)

  G&A expenses

  Total

  Rent and tax expenses

  75.2 +1.0

  27.1 (0.4)

  19.8% +0.2

168.0 (0.1)

+1.7

+2.3

+4.1

+1.0

+0.3

+1.4

(0.9)

(0.9)

(1.4)

(0.7)

(6.4)

SG&A to total operating revenue ratio

6.3 increase

• Singapore: Profit was down s lightly due to stagnant consumption and ris ing costs amid prolonged inflation

• Shanghai: Revenue was down and in the red due to the prolonged economic s lump / Siam:

  Revenue was down and in the red due to the impact of a strong currency, etc.

• Vietnam: Revenue and profit were up and accumulated losses were eliminated as a result of the effect from revamping cosmetics etc. and curbing cost increases

  FY2025	YoY Change	Foreign Currency Effects
  26.5	(0.9%)	—
  7.7	(0.0)	+ 0.1
  2.1	(6.6%)	—
  (0.0)	+ 0.1	+ 0.0
  4.2	+14.4%	—
  1.2	+ 0.2	(0.1)
  2.4	(6.0%)	—
  (0.3)	+ 0.0	(0.0)
  35.2	(0.1%)	—
  8.5	+ 0.2	(0.0)

  YoY Change in Local Currency
  (1.8%)
  —
  (5.4%)
  —
  +20.2%
  —
  (11.0%)
  —

  Change from forecast
  (0.8%)
  (0.1)
  +0.1%
  + 0.0
  +6.4%
  + 0.1
  (8.8%)
  (0.3)
  (0.6%)
  (0.4)

  H1 (Jan.-Jun.)	YoY Change
  12.5	(3.6%)
  3.5	(0.1)
  1.1	(10.0%)
  (0.1)	(0.0)
  1.9	+10.6%
  0.5	+ 0.1
  1.0	(15.1%)
  (0.2)	(0.0)
  16.5	(3.4%)
  3.8	(0.1)

  H2 (Jul.-Dec.)	YoY Change
  14.0	+1.6%
  4.2	+ 0.1
  1.1	(2.6%)
  0.0	+ 0.1
  2.3	+17.8%
  0.6	+ 0.1
  1.3	+2.4%
  (0.1)	+ 0.0
  18.7	+3.1%
  4.7	+ 0.3

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Takashimaya Singapore Ltd.

  Shanghai Takashimaya Co., Ltd.

  Takashimaya Vietnam Ltd.

  Siam Takashimaya (Thailand) Co., Ltd.

  Total of Overseas Department Stores

• In the Commercial Property Development in Japan segment, revenue was up from strengthened sales strategies, but profit was down as a result of an increase in outsourcing expenses etc.

• In the Overseas Commercial Property Development segment, revenue was up s lightly in Singapore due to the effect of the exchange rate despite the impact of revamping work, but profit was down as a result of an increase in facility operating costs while revenue and profit were up in Vietnam to

  exceed forecasts both domestically and overseas

  YoY FY2025 Change

  52.0 +2.0%

  6.6 (0.3)

  Change from forecast

  +0.0%

  + 0.4

  YoY H1 Change

  25.7 +1.0%

  3.4 (0.5)

  YoY H2 Change

  26.3 +3.0%

  3.1 + 0.2

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Total of Commercial Property Development in Japan

  [Toshin Development Co., Ltd.]

Subsidiaries in Vietnam

+0.2%

Operating profit + Dividend income from

affiliates in Vietnam

7.6 + 0.4

6.1 (1.0)

+ 0.1

13.7 (0.6)

Toshin Development Singapore Pte. Ltd. (TDS)

• In the Finance segment, revenue and profit were up as a result of higher card transaction volume and growing annual fee income to exceed the forecast

• In the Construction & Design segment, revenue and profit were up, as forecast, as a result of an improved profit ratio due to strengthened cost management in addition to increased orders

• In addition, the restaurant and staffing businesses also saw higher revenue and profit to be generally at the same level as the forecasts

  YoY FY2025 Change
  24.0	+7.2%
  5.5	+ 0.7
  37.8	+12.9%
  2.6	+ 0.4
  15.4	+9.3%
  0.6	+ 0.1
  9.2	+6.7%
  0.6	+ 0.2
  7.6	+5.4%
  0.9	(0.0)
  4.4	(6.3%)
  0.2	(0.1)

  Change from forecast
  +0.8%
  + 0.2
  +6.8%
  + 0.1
  (2.0%)
  (0.1)
  (1.2%)
  + 0.1
  (7.8%)
  (0.2)
  (4.8%)
  (0.1)

  YoY H1 Change
  11.7	+6.1%
  2.7	+ 0.4
  17.9	+4.2%
  1.5	+ 0.4
  7.7	+8.9%
  0.3	+ 0.1
  4.4	+8.5%
  0.3	+ 0.1
  3.6	+11.8%
  0.4	+ 0.0
  1.6	(24.9%)
  (0.1)	(0.2)

  YoY H2 Change
  12.3	+8.2%
  2.8	+ 0.3
  19.9	+22.0%
  1.0	+ 0.0
  7.7	+9.8%
  0.3	+ 0.0
  4.7	+5.0%
  0.3	+ 0.1
  4.0	+0.3%
  0.5	(0.1)
  2.8	+9.6%
  0.3	+ 0.1

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Takashimaya Financial Partners Co., Ltd. (TFP)	Finance
  Takashimaya Space Create Co., Ltd. (TSC)	Construction & Design
  R.T. Corporation Co., Ltd.	Others
  CENTURY & Co., Ltd.	Others
  All Takashimaya Agency Co., Ltd.	Others
  Good Live Co., Ltd.	Others

  4. Consolidated Balance Sheet

• Total assets increased by ¥50.2 bn because, despite non-current asset sales, accounts receivable increased and growth investments were executed.

• Non-current liabilities (convertible bonds) decreased due to the CB purchase and cancellation, but

  current liabilities (loans) used as the source of funds for those purchases increased

• Shareholders’ equity decreased by ¥31.0 bn due to a temporary net loss, share buybacks, and payment of dividends

  (Billions of yen)	Total assets +50.2
  1,400 1,346.2 1,296.0 79.2 Cash and deposits (11.4) 90.5 1,200 Other Current assets 285.2 +42.1 243.0 (Increase in accounts receivable etc.) 1,000 800 Property, plant and 600 759.8 759.1 equipment (0.6) (Sales of non-current assets) 400 200 Intangible assets +1.2 Investments and other 165.7 184.5 assets +18.8 (securities) 0 Feb. 28, 2025 Feb. 28, 2026

  	Liabilities and net assets +50.2
  1,400 1,346.2 1,296.0 1,200 Current liabilities +127.2 415.5 542.8 (Increase in borrowings) 1,000 800 Non-current liabilities (54.4) 380.1 (Decrease in convertible 600 325.7 bonds: (60.1)) Shareholders‘ equity (31.0) (Decrease due to net losses) (Decline due to dividend 400 payments) (Decrease due to share 426.7 395.7 buybacks) 200 54.1 Other comprehensive 46.4 income, etc. +7.7 (Valuation difference 0 27.3 28.0 on securities etc.) Feb. 28, 2025 Feb. 28, 2026 Non-controlling interests: +0.7

  5. Consolidated Cash Flows

• Operating cash flows were s ignificantly impacted by the pre-tax net loss due to the CB purchase and cancellation and thus decreased by ¥18.7 bn compared to FY2024

• Investing cash flows increased by ¥4.8 bn from FY2024 due to income from sale of non-current assets, etc., despite an increase in growth investments

• Financing cash flows increased by ¥10.0 bn from FY2024 due to the debt utilization, despite share buybacks and increased dividend payments

  (Billions of yen)

  Operating cash flows -18.7

80

60

40

20

0

-20

-40

-60

72.5

53.8

-34.9

-39.7 -41.8

-31.8

100

90

80

70

60

50

88.6

77.4

Cash and cash equivalents

Operating CF Investing CF Financing CF

FY2024 FY2025

2025 beginning of period

2025 end of period

1. Forecasts for FY Ending Feb 2027 (FY2026)
   1. Key Points of Forecast
   2. Consolidated Performance Forecasts
   3. Forecasts by Segment
   4. Specific Measures to Achieve the Forecasts
   5. Consolidated Balance Sheet
   6. Consolidated Cash Flows

1. Key Points of FY2026 Forecast

   • In the final year of the current Medium-Term Management Plan, the forecast calls for an increase in total operating revenue even under an uncertain external environment.

   • Operating profit, business profit, and ordinary profit are all expected to increase with no revision to operating profit and business profit revised upward from the levels announced in October 2025

   • Net profit has been forecast based on a steady level that takes into

     consideration the rebound from the gain on the sale of non-current assets and the extraordinary loss resulting from the CB purchase and cancellation while incorporating extraordinary income in FY2026 (gain on sale of cross -shareholdings etc.)

     • An increase in profit is expected when compared to the actual net profit in FY2025 that excludes the aforementioned special elements

2. Consolidated Performance Forecas ts

• In addition to increased revenue, operating profit is expected to rise by controlling SG&A expenses while business profit will be boosted by increased dividends in the Vietnam business

• Ordinary profit is expected to grow at a s lower pace due increased interest expenses from debt utilization; interest rate trends will continue to be monitored closely

  Full-year forecast	YoY Change
  1,055.0	+2.2%
  308.8	+9.2
  251.3	+5.3
  23.8%	(0.0)
  57.5	+4.0
  5.5%	+0.3
  64.3	+4.7
  57.0	+0.1
  38.0	+46.2

  H1 forecast	YoY Change
  503.0	+3.2%
  149.7	+6.2
  123.3	+3.4
  24.5%	(0.1)
  26.4	+2.7
  5.2%	+0.4
  28.6	+3.4
  24.1	+2.1
  15.3	(5.9)

  H2 forecast	YoY Change
  552.0	+1.3%
  159.2	+3.1
  128.1	+1.8
  23.2%	+0.0
  31.1	+1.2
  5.6%	+0.2
  35.7	+1.2
  32.9	(2.0)
  22.7	+52.1

• Net profit is forecast to be ¥38.0 bn in light of the extraordinary loss in FY2025 (CB extraordinary loss) and the extraordinary income in FY2026 (gain on the sale of shares etc.)

  (billion JPY)

  Total operating revenue Gross profit

  SG&A expenses

  Operating profit

  Operating profit to total operating revenue ratio

  *Business profit

  Ordinary profit

  Profit attributable to owners of parent

  SG&A to total operating revenue ratio

  *Business profit : Operating profit + Share of profit of equity method affiliates + Dividend income

  3-1. Forecas ts by Segment (Overview)

• The main reason for the ¥4.0 bn increase in operating profit is the Department Stores (in Japan / Overseas) segment

• The Commercial Property Development (in Japan / Overseas) segment remains in the phase and is expected to contribute to revenue from FY2027 onward

• The Finance segment is expected to see sustained growth with an increase in revenue and profit

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Department Stores in Japan

  Overseas Department Stores

  Commercial Property Development in Japan

  Overseas Commercial Property Development

  Finance

  Full-year forecast	YoY Change
  328.5	+2.0%
  27.7	+ 2.8
  38.0	+7.9%
  9.7	+ 1.1
  53.1	+2.0%
  6.4	(0.1)
  18.0	+9.7%
  6.3	+ 0.5

  Full-year forecast	YoY Change
  27.0	+7.0%
  5.9	+ 0.3
  38.1	+0.9%
  2.5	(0.0)
  61.0	+3.3%
  2.2	+ 0.2
  503.0	+2.2%
  57.5	+ 4.0

  Construction & Design

  Consolidated Total

Others

64.3 +4.7

Additions to Operating profit

Share of profit of equity method affiliates

Dividend income from affiliates in Vietnam

4.0 (0.2)

2.2 +0.9

• Total operating revenue is expected to be up 2% YoY with revenue from domestic customers (existing stores) up 6% and revenue from inbound customers down 11%

• The gross margin ratio factors in improvements driven by strengthening in the high-margin fashion

  domain

  Full-year forecast	YoY Change
  867.5	+2.0%
  22.23%	+0.25
  197.2	+4.3
  169.5	+1.5
  19.5%	(0.2)
  27.7	+2.8
  3.2%	+0.3

  H1 forecast	YoY Change
  414.5	+3.2%
  22.29%	+0.06
  94.9	+2.9
  82.7	+0.3
  19.9%	(0.6)
  12.3	+2.7
  3.0%	+0.6

  H2 forecast	YoY Change
  453.0	+1.0%
  22.17%	+0.41
  102.3	+1.4
  86.8	+1.2
  19.2%	+0.1
  15.4	+0.2
  3.4%	+0.0

• The increase in SG&A expenses from FY2025 is expected to be kept to the minimum through cost reductions to lead to an improvement in the SG&A expenses ratio

  (billion JPY)

  Total operating revenue

  Gross margin ratio

  [% of in-store Total sales]

  SG&A to total operating revenue ratio

  Operating profit

  Gross profit SG&A expenses

  Operating profit ratio

  [% of Total operating revenue]

  Details of the Forecasts for In-store Net Sales by Customer

  Domestic customers: Up 6% for the full year (up 7% for H1 and up 6% for H2)

  Inbound customers: Down 11% for the full year (down 3% for H1 and down 18% for H2) (¥84.5 bn for the full year, ¥42.5 bn for H1, and ¥42.0 bn for H2)

  3-2. [Department Stores in Japan] SG&A Expenses

• Investing to promote human capital management and strengthen sales capabilities will continue

• The impact of ris ing prices due to heightened geopolitical risks has been factored in to a certain extent

• Cost reduction measures, such as promoting efficiency improvements, will continue to be strengthened

  Breakdown of YoY change

(billion JPY)

Personnel related expenses

Advertising expenses G&A expenses

Rent and tax expenses

Total

(0.2)

19.5%

SG&A to total operating revenue ratio

6.0 increase

• Singapore is expected to see an increase in revenue and profit in anticipation of increased net sales from strengthening product appeal and promoting customer policies

• Shanghai and Siam are expected to see an increase in revenue and a return to profitability, while

  Vietnam is predicted to suffer a s light decrease in profit due to exchange rate fluctuations

• The impact from ris ing geopolitical risks (exchange rates, cost of living, and consumption) in the Middle East on each store is being closely monitored

  *Top row : Operating revenue, Bottom row : Operating profit

  YoY Change in Local Currency

  +6.6%

  —

  +0.5%

  —

  +9.9%

  —

  +18.3%

  —

  H1 forecast	YoY Change
  13.6	+8.6%
  3.7	+ 0.2
  1.1	(0.7%)
  0.2	+ 0.3
  2.0	+5.0%
  0.5	(0.0)
  1.4	+30.9%
  (0.0)	+ 0.2
  18.0	+9.0%
  4.4	+ 0.6

  H2 forecast	YoY Change
  15.0	+7.0%
  4.6	+ 0.4
  1.1	+2.9%
  0.0	(0.0)
  2.4	+3.7%
  0.6	(0.0)
  1.5	+14.9%
  0.0	+ 0.2
  20.0	+7.0%
  5.3	+ 0.5

  (billion JPY)		Full-year YoY (Jan.-Dec.) Change forecast		Foreign Currency Effects
  		28.6	+7.8%	—
  		8.4	+ 0.7	+ 0.1
  		2.2	+1.1%	—
  		0.2	+ 0.2	+ 0.0
  		4.4	+4.3%	—
  		1.1	(0.1)	(0.1)
  Siam Takashimaya (Thailand) Co.,		2.9	+21.9%	—
  Ltd.		0.0	+ 0.3	+ 0.0
  Total of Overseas Department		38.0	+7.9%	—
  Stores		9.7	+ 1.1	+ 0.0

  Takashimaya Singapore Ltd.

  Shanghai Takashimaya Co., Ltd.

  Takashimaya Vietnam Ltd.

  exchange rate		1SGD	1CNY	1VND	1THB
  JPY	Forecast	116.00	21.00	0.0056	4.70
  	Previous FY	114.75	20.87	0.0059	4.56

  3-4. [Commercial Property Development (in Japan / Overseas)] Forecast

• In the Commercial Property Development in Japan segment, a decrease in profit is forecast due to the impact of revamping work and increased costs despite continued strengthening of sales strategies

• In the Overseas Commercial Property Development segment, Singapore is expected to see an increase in revenue and profit driven by improvements in rent income despite increased costs

• The forecast for the Overseas Commercial Property Development segment anticipates an increase in revenue and profit with a dividend of ¥2.2 bn expected in the Vietnam business (¥1.3 bn in FY2025)

  Full-year YoY forecast Change

  53.1 +2.0%

  6.4 (0.1)

  H1 YoY forecast Change

  26.3 +2.3%

  3.3 (0.1)

  H2 YoY forecast Change

  26.7 +1.6%

  3.1 (0.0)

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Total of Commercial Property Development in Japan

  [Toshin Development Co., Ltd.]

Toshin Development Singapore Pte. Ltd. (TDS)

Subsidiaries in Vietnam

+ 0.2

6.3

+ 1.3

15.0

8.6 + 1.0

Operating profit + Dividend income from affiliates in Vietnam(1.7 billion JPY)

• In the Finance segment, having factored in the growth in net card transactions and the contribution to revenue from the and Lending business, growth investments aimed at expanding customers and business domains will be executed as planned even amid uncertain financial market trends

• Initiatives will proceed to build a stable revenue base in the Construction & Design segment and other segments as well

  Full-year forecast	YoY Change
  25.2	+4.8%
  5.5	+ 0.1
  38.1	+0.9%
  2.6	+ 0.1
  16.4	+6.7%
  0.8	+ 0.2
  9.2	+0.0%
  0.3	(0.3)
  7.7	+1.5%
  0.9	(0.0)
  4.7	+7.6%
  0.4	+ 0.1

  H1 forecast	YoY Change
  12.4	+6.1%
  2.7	+ 0.1
  18.6	+3.7%
  1.1	(0.4)
  8.1	+5.9%
  0.4	+ 0.1
  4.4	+0.0%
  0.2	(0.1)
  3.7	+2.9%
  0.4	+ 0.0
  2.0	+22.0%
  0.1	+ 0.1

  H2 forecast	YoY Change
  12.8	+3.5%
  2.8	+ 0.0
  19.6	(1.6%)
  1.5	+ 0.5
  8.3	+7.5%
  0.4	+ 0.1
  4.7	+0.0%
  0.2	(0.2)
  4.0	+0.3%
  0.5	(0.0)
  2.7	(0.7%)
  0.3	(0.0)

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Takashimaya Financial Partners Co., Ltd. (TFP)	Finance
  Takashimaya Space Create Co., Ltd. (TSC)	Construction & Design
  R.T. Corporation Co., Ltd.	Others
  CENTURY & Co., Ltd.	Others
  All Takashimaya Agency Co., Ltd.	Others
  Good Live Co., Ltd.	Others

  4-1. Specific Measures to Achieve the Forecasts:

  Department Stores in Japan

• Strengthen people-centered marketing using customer data

• Improve experience value and customer LTV by making the optimal proposals that capture the likes and preferences of customers

• Establish essential sales capabilities unaffected by the external environment through organizational development and institutionalization

  VIP

  customers

  Net sales per person: +8%

  New accounts opened

  by VIP customers: +10%

  People-

  centered marketing

  Non VIP customers

  Number of

  registered app members: +50%

  Inbound customers

  Number of

  registered inbound

  customers: 10,000

  Strengthen sales capabilities and improve operational efficiency through the sales force automation (SFA) system

  • Convert customers to VIP customers through an in-house card upgrade scheme

  • Systematically cultivate the next-generation of customers  through alliances

  • Evolve  from department store VIP customers  to group VIP customers

    Strengthen product assortment and hold appealing events

    • Expand and deepen customer contact points  through the use of the app

      ・Increase number of members by introducing digital points

      ・Promote a seamless customer policy centered on the app

      Expand our unique customer referral scheme that uses our store network

  • Engage in individualized sales through CRM by using inbound customer data

  • Deepen customer contact points  by introducing communication tools

  • Strengthen approaches to affluent inbound customers through alliances

  4-1. Specific Measures to Achieve the Forecas ts :

                              ESG   Management                             

• Continue symbolic efforts such as TSUNAGU ACTION and Depart de Loop

• Taking a broader view of business continuity, promote initiatives to preserve traditions

  and cultures and increase the robustness of supply chains

  Increase the Robustness of Supply Chains
  *Trademark registration pending Launched a project to continue protecting the goodwill created by the philosophy, trust, and technology, etc. of companies Century Heritage ‘Noren’		ICJ No. 1 Fund of Search Fund Investing in outstanding next-generation business leader candidates (searchers) to support business succession and revitalization of SMEs Search Fund

  CASA TATSUMURA New brand from TATSUMURA TEXTILE CO., LTD. and Takashimaya Participated at the FUORI SALONE design festival		maison de F Revitalizing local producing areas through co- creation with local manufacturers Considering horizontal expansion of the operational scheme in the future
  Preserve traditions and culture

  5. Consolidated Balance Sheet

• Total assets will increase through investments aimed at sustainable profit growth etc.

• Liabilities continue to be used while promoting diverse financing methods to reduce capital costs

• Shareholders’ equity will increase due to improved net profit while cash and cash equivalents will be

  1

  2

  427.9

  460.1

  422.9

  542.8

  325.7

  395.7

  allocated to growth investments etc. after ascertaining the appropriate level

  (Billions of yen)	Total assets +41.8
  1,400 1,346.2 1,388.0 79.6 Cash and deposits 79.2 +0.4 1,200 Other current assets 285.2 286.6 +1.4 1,000 800 779.8 Property, plant and 600 759.1 equipment +20.7 400 200 Intangible assets +1.1 184.5 202.7 Investments and other assets +18.2 0 Feb. 28, 2026 Feb. 28, 2027

  	Liabilities and net assets +41.8
  1,400 1,346.2 1,388.0 1,200 Current liabilities (114.9) 1,000 800 Non-current liabilities +134.4 600 Shareholders' equity 400 +27.2 200 48.1 54.1 Other comprehensive income, etc. (6.0) 0 28.0 29.0 Feb. 28, 2026 Feb. 28, 2027Non-controlling interests: +1.0

  6. Consolidated Cash Flows

• Operating cash flows will increase by ¥22.2 bn from the previous year due to improvements in profit before income taxes etc.

• Investing cash flows will decrease by ¥52.6 bn from the previous year due to the execution of growth investments in the final year of the Medium-Term Management Plan

• Financing cash flows will increase by ¥50.3 bn from the previous year due to the continued utilization

  of debt despite the increase in dividend payments

  (Billions of yen)

  Operating cash flows +22.2

100

50

76.0

80 77.4 78.1

53.8

18.5

-34.9

-31.8

75

70

0 65

-50

-100

-87.5

Operating CF Investing CF Financing CF

FY2025 FY2026

60

55

50

Cash and cash equivalents

2026 beginning of period

2026 end of period

Ⅲ.

1. Key Points of the Progress and Revisions
2. Operating Profit, Business Profit and ROIC
3. Growth Investment
4. Cash Allocation
5. Financial KPIs

1. Key Points of the Progress and Revisions of the Medium-Term

                Management  Plan   (FY2024  -  FY2026)                     

   • Investments in the Commercial Property Development (in Japan / Overseas) and Finance segments , which are positioned as growth drivers, and profit distribution and investments to multi-stakeholders, which are the essence of management, such as investments in human capital and ESG, are progressing as planned

   • In terms of cash allocation, while ensuring financial health, a shift is underway from debt reduction to utilization and flexible capital policy adjustments are being made, such as share buybacks and the CB purchase and cancellation

   • The year-end dividend for FY2025 was ¥17 to maintain the latest forecast

     despite a temporary net loss (annual: ¥34)

     The annual dividends per share for FY2026 will increase to ¥40 for a dividend payout ratio of 30%

   • In FY2026, in addition to improving net profit, the appropriate use of financial leverage focused on capital efficiency will be promoted with an ROE of 8.3% expected

2. Operating Profit, Business Profit and ROIC

• Phase until FY2026 and then a revenue generation phase from FY2027 onward

• Promote ROIC management to improve ROIC and realize an expanded spread with the WACC

  in the next Medium-Term Management Plan

  FY2026

(Billions of yen)

4.9%

(WACC) 4.8% 4.8% 4.8% 5.0%

* ROIC (Return on invested capital) = NOPAT ÷ Invested capital (Note: NOPAT = EBIT (Ordinary profit + Interest expenses - Interest income)

x (1 - Effective tax rate)

                             Inves  tments                             

• The level of business profit in FY2031, when we will celebrate the 200th anniversary of Takas himaya, is projected to be between ¥75.0 bn and ¥80.0 bn

• To increase the share other than department stores to 46% and the overseas share to 32%,

  is being focused on the conversion to next-generation shopping centers, the Vietnam business, and the Finance segment in the current Medium-Term Management Plan

  (Billions of yen)

  80

  ¥75.0 bn to ¥80.0 bn

  FY2025

  FY2031

  Busines s profit

  70

  60

  Commercial Property Development, Finance, and Others

  Department

  Stores

  59％

  Commercial Property Development, Finance, and Others

  Department Stores

  Finance Overseas

  50 Commercial

  Property Development

  40 Overseas

  Department Stores

  Commercial

  30 Property

  Development in

  Japan

  20

  10

  41％

  Overseas

  Overseas

  26％

  In Japan

  74％

  32％

  In Japan

  68％

  By Business

  46％ 53％

  0

  FY2024

  FY2025

  FY2026

  FY2031

  3-2. Growth Inves tment: Conversion to Next-generation Shopping

         Centers  (Commercial Property Development in Japan)         

• Promote the conversion to next-generation shopping centers to maximize the value of core commercial facilities

• Expand domains to short-term return business models and restructure portfolio to improve capital efficiency

  Conversion to Next-generation Shopping Centers: Maintaining the Revenue Base

FY2027

Renovate and fully open  Tamagawa Takashimaya Shopping  Center

Time-

consuming

content

Food floors that

embody

seamlessness

Next Medium-Term Management Plan Onward

Fund investment

Private REIT and asset management research

32

       Centers  (Commercial Property Development in Japan)         

• Enhance the appeal of commercial facilities and maintain profits with fund investments etc. a growth domain overall

• Replace assets with the aim of improving capital efficiency for non-commercial real estate

• Increase dividend income by accelerating in high-performing and growth areas, such as private lodging and healthcare

  Funds etc.

  Dividends

  +¥1.5 bn

Business Profit under the Current Medium-Term Management Plan and in FY2031

Amount of investment: ¥38.0 bn

¥10.0 bn

0.1

0.1 0.1

Commercial

Non-commercial

Dividends

(Billions of yen)

FY2024

actual results

FY2025

actual results

FY2026

forecast

FY2031

33 target

*Change from the actual results in FY2025

• Continue to expand revenue base by newly opening and expanding department store-focused shopping centers

• Accelerate expansion of business domains to non-commercial property development and short-term return investments that will become the next growth strategy

  Department Store-focused Shopping Centers: Expand Revenue Base

Scheduled to open in FY2027

Hanoi Takashimaya S.C.

Third phase expanded facility opening from

FY2030 onward

Saigon Centre / Ho Chi Minh City Takashimaya

School Real Estate and

Operation Business

Residential Property Business

FY2024: Haiphong FY2026: Ho Chi Minh City

34

• All domains – department stores, commercial and non-commercial real estate, and residential – will grow in a well-balanced manner

  1.2

• Opening Hanoi Takas himaya S.C. and expanding Saigon Centre will strengthen the foundations of the department store and shopping center businesses

  Residential (Short-term returns)

  +¥1.3 bn

• Short-term return residential business will generate profit from FY2026 onward and the school business will continue to grow ¥10.0 bn

1.2

1.1

～

Business Profit under the Current Medium-Term Management Plan and in FY2031

Residential

Non-commercial real estate

SC and mixed use

Amount of investment: ¥51.0 bn

¥4.4 bn

Department stores

¥3.9 bn

¥3.7 bn

(Billions of yen)

2024

FY2024

actual results

FY2025

2025

actual results

FY2026

2026

forecast

FY2031

2031

35 target

*Change from the actual results in FY2025

• Expand financial services centered on the Card business and grow core businesses by

  maximizing LTV

  Core businesses

• Invest profits of core businesses to expand business domains and build a comprehensive financial platform

  Finance domain

*Trademark registration pending

Next Medium-Term Management Plan Onward

Social lending

Corporate loans

Fund

conception

Fund formation

36

• Accelerate growth by adding and lending and other recurring-revenue businesses to card-centric one-off transaction businesses

• Acquire expertise and know-how through M&As and expand contact points with stakeholders and revenue opportunities

  Investment and Lending business

  +¥2.0 bn

• Increase customer and external revenue by is suing new cards etc. in the core Card business

  Business Profit under the Current Medium-Term Management Plan and in FY2031

  ¥10.0 bn

  1.0

Amount of investment: ¥20.0 bn

Investment and Loan

LP

Card

¥4.8 bn

0.3

¥5.6 bn

0.3

¥5.9 bn

0.4

～

(Billions of yen)

FY2024

actual results

FY2025

actual results

FY2026

forecast

FY2031

37 target

*Change from the actual results in FY2025

• There are no changes to allocations to growth investments, human capital, ESG, and DX investments, etc., or other investments

• Flexible capital policy adjustments will be made through asset sales and debt utilization

• Shareholder returns will continue to be expanded as well with dividend increases, share buybacks, and the CB purchase and cancellation, etc.

  Shareholder returns

  180.0 to 190.0

  As of April 2026 (Final Year of the Current Medium-Term Management Plan)

  As of April 2024 (Initial Year of the Current

  Medium-Term Management Plan)

The amounts given include expenses

Investments

Growth investment Progres s as planned

(Billions of yen)

Growth investment

147.0 (60%)

Key Revision Points

Operating cash flows

250.0

220.0

(80 to

90%)

Debt

reduction

Overseas Commercial Property Development 51.0

Commercial Property Development in Japan 38.0

Department Stores 31.0

Finance 20.0

Others 7.0

Other investments

73.0 (30%)

Safety & security 30.0

Systems (Maintenance) 20.0 Digital Transformation

(DX) 8.0

Human capital 12.0

ESG 3.0

10.0 (3 to 5%)

〇Asset sales

• FY2024: Cross-shareholdings

• FY2025: Non-current assets

• FY2026: Cross-shareholdings

  〇Debt reduction ⇒ Utilization

  ・FY2025:

  Source of funds for CB purchase

  and cancellation Debt utilization

  〇Strengthened shareholder returns

  ・FY2024: Dividend increase of ¥6.0 Share buybacks of ¥15.0 bn

  ・FY2025: Dividend increase of ¥9.5 Share buybacks of ¥15.0 bn

  CB purchase and cancellation of

  ¥130.0 bn

  ・FY2026: Dividend increase of ¥6.0

  Operating cash flows

  250.0

  Asset sa

  Debt

  Other investments

  Progres s as planned

  les

  -25.0 to 30.0

  utilization

-130.0 to 170.0

Shareholder returns

20.0

(7 to 10%)

* After taking into consideration the 2-for-1 stock split (Sep. 2024)

• Achieved the initially forecast stock price and PBR level ahead of schedule and will continue to

  realize a stable PBR of over 1x in the future

• To achieve the financial KPIs , will promote a flexible capital policy with an ROE in FY2026 of 8.3% expected

• EPS will increase under the next Medium-Term Management Plan by alleviating concerns about dilution despite the impact of the CB purchase and cancellation (net loss)

~ Level excluding the impact of the net loss from the CB purchase and cancellation

*1: Core operating profit = Operating profit + Equity in earnings of affiliates + Dividend income

*2: The Company conducted a two for one stock split of common stock that took effect on September 1, 2024.

Ⅳ.

1. Cash Allocation
2. Concept of Assets
3. Financial KPIs
4. Governance to Support the