United Arrows : Consolidated Financial Results for the Fiscal Year Ended March 31,2026

May 11, 2026

Company name: UNITED ARROWS LTD.

Listing: The Prime Market of the Tokyo Stock Exchange Securities code: 7606

URL: https://www.united-arrows.co.jp/en/

Representative: Yoshinori Matsuzaki, Representative Director, President and CEO Inquiries: Takeo Nakazawa, Director, Executive Vice President and CFO

Telephone: +81-3-6804-2820

Scheduled date of annual general meeting of shareholders: June 22, 2026 Scheduled date to commence dividend payments: June 23, 2026 Scheduled date to file annual securities report: June 19, 2026 Preparation of supplementary material on financial results: Yes

Holding of presentation of financial results: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	164,603	9.1	9,126	14.3	9,313	9.1	6,112	42.7
      March 31, 2025	150,910	12.4	7,984	18.5	8,539	14.1	4,282	(12.2)

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥6,117 million	[42.7%]
      	For the fiscal year ended March 31, 2025:	¥4,288 million	[(10.0)%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	221.34	-	15.3	13.2	5.5
      March 31, 2025	155.13	-	11.8	13.1	5.3

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2026: ¥(23) million For the fiscal year ended March 31, 2025: ¥357 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	71,507	42,135	58.9	1,525.54
      March 31, 2025	70,142	37,821	53.9	1,369.92

      Reference: Equity

      As of March 31, 2026: ¥42,135 million

      As of March 31, 2025: ¥37,821 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2026	5,551	(9,626)	842	3,445
   March 31, 2025	7,097	(6,240)	(699)	6,655

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Fiscal year ended March 31, 2025	-	17.00	-	46.00	63.00	1,747	40.6	4.8
   Fiscal year ended March 31, 2026	-	20.00	-	69.00	89.00	2,468	40.2	5.8
   Fiscal year ending March 31, 2027 (Forecast)	-	32.00	-	60.00	92.00		41.2

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Significant changes in the scope of consolidation during the period: Yes

   Newly included: Excluded: COEN CO., LTD.

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	30,213,676 shares
      As of March 31, 2025	30,213,676 shares

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

      As of March 31, 2026	2,593,396 shares
      As of March 31, 2025	2,605,286 shares

   3. Average number of shares outstanding during the period

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   March 31, 2026	154,109	10.6	9,510	15.0	9,947	23.8	6,136	37.4
   March 31, 2025	139,355	12.7	8,266	20.1	8,032	9.2	4,466	(10.5)

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2026	222.19	-
   March 31, 2025	161.79	-

2. Non-consolidated financial position

Reference: Equity

As of March 31, 2026: ¥42,158 million

As of March 31, 2025: ¥37,825 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

The forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document. Actual results may differ

significantly from these forecasts due to a wide range of factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the proper use thereof, please refer to the attachments below.

Consolidated Financial Statements

1. Consolidated Balance Sheet

   (Millions of yen)

   As of March 31, 2025		As of March 31, 2026
   Assets
   Current assets
   Cash and deposits	6,665	3,461
   Accounts receivable - trade	185	190
   Merchandise	24,191	26,940
   Supplies	539	498
   Accounts receivable - other	12,301	12,058
   Short-term loans receivable from subsidiaries and associates	3	-
   Other	930	1,143
   Total current assets	44,816	44,292
   Non-current assets
   Property, plant and equipment
   Buildings and structures	20,632	21,144
   Accumulated depreciation and impairment	(14,713)	(13,367)
   Buildings and structures, net	5,919	7,777
   Machinery and equipment	1,364	2,223
   Accumulated depreciation and impairment	(895)	(1,115)
   Machinery and equipment, net	469	1,108
   Land	569	569
   Construction in progress	230	59
   Other	3,951	4,352
   Accumulated depreciation and impairment	(2,935)	(2,953)
   Other, net	1,016	1,399
   Total property, plant and equipment	8,205	10,914
   Intangible assets
   Software	1,663	4,820
   Software in progress	4,113	60
   Other	28	26
   Total intangible assets	5,804	4,908
   Investments and other assets
   Shares of subsidiaries and associates	-	199
   Long-term loans receivable	-	1,000
   Long-term loans receivable from subsidiaries and associates	23	19
   Guarantee deposits	7,624	6,595
   Deferred tax assets	2,204	2,127
   Other	1,464	1,448
   Allowance for doubtful accounts	(2)	-
   Total investments and other assets	11,314	11,391
   Total non-current assets	25,325	27,214
   Total assets	70,142	71,507

   (Millions of yen)

   As of March 31, 2025		As of March 31, 2026
   Liabilities
   Current liabilities
   Accounts payable - trade	11,636	11,771
   Electronically recorded obligations - operating	929	1,286
   Short-term borrowings	1,028	1,900
   Accounts payable - other	7,133	5,547
   Income taxes payable	2,633	247
   Provision for bonuses	2,043	2,528
   Provision for bonuses for directors (and other officers)	48	44
   Provision for share awards	-	116
   Asset retirement obligations	211	129
   Other	2,103	1,457
   Total current liabilities	27,767	25,028
   Non-current liabilities
   Asset retirement obligations	4,407	4,181
   Provision for share awards	92	23
   Other	53	137
   Total non-current liabilities	4,552	4,342
   Total liabilities	32,320	29,371
   Net assets
   Shareholders' equity
   Share capital	3,030	3,030
   Capital surplus	4,538	4,538
   Retained earnings	37,594	41,876
   Treasury shares	(7,040)	(7,012)
   Total shareholders' equity	38,122	42,432
   Accumulated other comprehensive income
   Foreign currency translation adjustment	(300)	(296)
   Total accumulated other comprehensive income	(300)	(296)
   Total net assets	37,821	42,135
   Total liabilities and net assets	70,142	71,507

2. Consolidated Statements of Income and Comprehensive Income

   Consolidated Statement of Income

   (Millions of yen)

   For the fiscal year ended March 31, 2025		For the fiscal year ended March 31, 2026
   Net sales	150,910	164,603
   Cost of sales	72,281	78,373
   Gross profit	78,629	86,230
   Selling, general and administrative expenses	70,645	77,103
   Operating profit	7,984	9,126
   Non-operating income
   Interest income	4	11
   Dividend income of insurance	21	35
   Foreign exchange gains	-	146
   Rental income	11	8
   Share of profit of entities accounted for using equity method	357	-
   Compensation for forced relocation	194	-
   Other	127	118
   Total non-operating income	717	320
   Non-operating expenses
   Interest expenses	14	40
   Foreign exchange losses	90	-
   Rental expenses	12	1
   Share of loss of entities accounted for using equity method	-	23
   Other	45	68
   Total non-operating expenses	162	133
   Ordinary profit	8,539	9,313
   Extraordinary losses
   Loss on retirement of non-current assets	299	137
   Impairment losses	543	713
   Head office relocation expenses	233	70
   Loss on sale of shares of subsidiaries and associates	-	1,050
   Loss on sale of investment in affiliated companies	379	-
   Other	-	2
   Total extraordinary losses	1,456	1,974
   Profit before income taxes	7,082	7,339
   Income taxes - current	2,876	1,149
   Income taxes - deferred	(76)	77
   Total income taxes	2,800	1,226
   Profit	4,282	6,112
   Profit attributable to owners of parent	4,282	6,112

   Consolidated Statement of Comprehensive Income

   (Millions of yen)

   For the fiscal year ended March 31, 2025		For the fiscal year ended March 31, 2026
   Profit	4,282	6,112
   Other comprehensive income
   Foreign currency translation adjustment	5	4
   Total other comprehensive income	5	4
   Comprehensive income	4,288	6,117
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	4,288	6,117
   Comprehensive income attributable to non-controlling interests	-	-

3. Consolidated Statement of Changes in Equity

   Fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)

   (Millions of yen)

   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	3,030	4,538	34,837	(7,069)	35,336
   Changes during period
   Dividends of surplus			(1,525)		(1,525)
   Profit attributable to owners of parent			4,282		4,282
   Purchase of treasury shares				(0)	(0)
   Disposal of treasury shares by stocks payment trust				29	29
   Net changes in items other than shareholders' equity
   Total changes during period	-	-	2,756	28	2,785
   Balance at end of period	3,030	4,538	37,594	(7,040)	38,122

   	Accumulated other comprehensive income		Total net assets
   	Foreign currency translation adjustment	Total accumulated other comprehensive income
   Balance at beginning of period	(306)	(306)	35,030
   Changes during period
   Dividends of surplus			(1,525)
   Profit attributable to owners of parent			4,282
   Purchase of treasury shares			(0)
   Disposal of treasury shares by stocks payment trust			29
   Net changes in items other than shareholders' equity	5	5	5
   Total changes during period	5	5	2,791
   Balance at end of period	(300)	(300)	37,821

   Fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

   (Millions of yen)

   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	3,030	4,538	37,594	(7,040)	38,122
   Changes during period
   Dividends of surplus			(1,830)		(1,830)
   Profit attributable to owners of parent			6,112		6,112
   Purchase of treasury shares				(0)	(0)
   Disposal of treasury shares by stocks payment trust				27	27
   Net changes in items other than shareholders' equity
   Total changes during period	-	-	4,282	27	4,309
   Balance at end of period	3,030	4,538	41,876	(7,012)	42,432

   	Accumulated other comprehensive income		Total net assets
   	Foreign currency translation adjustment	Total accumulated other comprehensive income
   Balance at beginning of period	(300)	(300)	37,821
   Changes during period
   Dividends of surplus			(1,830)
   Profit attributable to owners of parent			6,112
   Purchase of treasury shares			(0)
   Disposal of treasury shares by stocks payment trust			27
   Net changes in items other than shareholders' equity	4	4	4
   Total changes during period	4	4	4,314
   Balance at end of period	(296)	(296)	42,135

4. Consolidated Statement of Cash Flows

(Millions of yen)

(Millions of yen)