Consolidated Financial Statements

Last update: April 10, 2026

Consolidated Financial Statements

(1) Consolidated balance sheets

(Millions of yen)

			February 28, 2025 Amount	February 28, 2026 Amount
ASSETS
Current assets			2,823,782	1,492,546
	Cash and bank deposits		1,368,663	438,634
	Notes and accounts receivable - trade, and contract assets		441,630	298,684
	Trade accounts receivable - financial services		111,029	42,214
	Merchandise and finished goods		312,739	223,018
	Work in process		46	94
	Raw materials and supplies		3,002	286
	Prepaid expenses		94,707	89,344
	ATM-related temporary payments		118,172	-
	Other		388,696	407,277
	Allowance for doubtful accounts		(14,905)	(7,008)
Non-current assets			8,561,745	7,650,015
	Property and equipment		4,981,298	4,497,967
		Buildings and structures, net	1,749,166	1,449,775
		Furniture, fixtures and equipment, net	538,598	435,334
		Land	1,172,559	902,246
		Right-of-use assets, net	1,289,807	1,451,665
		Construction in progress	206,223	231,458
		Other, net	24,941	27,487
	Intangible assets		2,711,382	2,469,026
		Goodwill	2,264,441	2,109,806
		Software	295,814	201,682
		Other	151,125	157,537
	Investments and other assets		869,065	683,021
		Investments in securities	321,086	363,740
		Long-term loans receivable	14,295	7,056
		Long-term leasehold deposits	264,136	157,112
		Net defined benefit asset	126,974	67,194
		Deferred tax assets	75,058	37,148
		Other	69,189	52,406
		Allowance for doubtful accounts	(1,675)	(1,637)
Deferred assets			582	395
	Bond issuance cost		582	395
TOTAL ASSETS			11,386,111	9,142,957

(Millions of yen)

		February 28, 2025 Amount	February 28, 2026 Amount
LIABILITIES
Current liabilities		3,316,615	1,900,670
	Notes and accounts payable, trade	519,497	416,083
	Short-term loans	172,497	135,580
	Current portion of bonds	210,000	255,657
	Current portion of long-term loans	290,128	190,456
	Income taxes payable	36,003	37,440
	Accrued expenses	282,395	258,979
	Contract liabilities	178,031	70,667
	Deposits received	146,967	177,934
	ATM-related temporary advances	73,388	-
	Lease obligations	180,624	164,772
	Allowance for loss on business of subsidiaries and associates	18,235	3,299
	Allowance for restructuring expenses	2,626	-
	Allowance for sales promotion expenses	815	335
	Allowance for bonuses to employees	14,249	5,388
	Allowance for bonuses to Directors and Audit & Supervisory Board Members	501	718
	Deposits received in banking business	813,388	-
	Call money	100,000	-
	Other	277,264	183,357
Non-current liabilities		3,846,283	3,594,091
	Bonds	1,244,036	929,828
	Long-term loans	778,068	718,495
	Deferred tax liabilities	233,635	224,633
	Allowance for retirement benefits to Directors and Audit & Supervisory Board Members	439	134
	Allowance for stock payments	4,947	1,504
	Net defined benefit liability	16,313	16,566
	Deposits received from tenants and franchised stores	44,178	13,796
	Lease obligations	1,223,438	1,398,990
	Asset retirement obligations	235,024	225,304
	Other	66,201	64,836
TOTAL LIABILITIES		7,162,898	5,494,762
NET ASSETS
Shareholders' equity		3,054,284	2,634,255
	Common stock	50,000	50,000
	Capital surplus	293,455	293,429
	Retained earnings	2,727,937	2,906,276
	Treasury stock, at cost	(17,108)	(615,450)
Total accumulated other comprehensive income		981,693	985,971
	Unrealized gains (losses) on available-for-sale securities, net of taxes	51,770	55,662
	Unrealized gains (losses) on hedging derivatives, net of taxes	5,035	4,622
	Foreign currency translation adjustments	901,059	884,784
	Remeasurements of defined benefit plans	23,827	40,900
Share award rights		-	225
Subscription rights to shares		80	-
Non-controlling interests		187,154	27,743
TOTAL NET ASSETS		4,223,212	3,648,195
TOTAL LIABILITIES AND NET ASSETS		11,386,111	9,142,957

(2) Consolidated statements of income and consolidated statements of comprehensive income

Consolidated statements of income

(Millions of yen)

		Year Ended February 28, 2025 Amount	Year Ended February 28, 2026 Amount
Revenues from operations		11,972,762	10,430,269
	Net sales	10,342,323	8,893,693
	Cost of sales	8,485,841	7,300,235
Gross profit on sales		1,856,482	1,593,457
	Operating revenues	1,630,439	1,536,575
Gross profit from operations		3,486,921	3,130,033
	Selling, general and administrative expenses	3,065,929	2,707,040
	Advertising and decoration expenses	93,224	81,673
	Salaries and wages	723,719	615,086
	Provision for bonuses to employees	14,276	14,953
	Pension expenses	12,765	10,856
	Legal welfare expenses	88,532	65,718
	Land and building rent	480,095	451,985
	Depreciation and amortization	422,032	370,926
	Utility expenses	192,189	172,591
	Store maintenance and repair expenses	182,536	152,505
	Other	856,557	770,743
Operating income		420,991	422,993
Non-operating income		25,705	18,782
	Interest income	10,372	11,098
	Dividend income	1,876	1,903
	Gain on valuation of investment securities	7,632	2,214
	Other	5,823	3,566
Non-operating expenses		72,110	64,363
	Interest expenses	40,841	29,773
	Interest on bonds	20,541	19,709
	Equity in losses of affiliates	450	5,304
	Other	10,277	9,576
Ordinary income		374,586	377,411

(Millions of yen)

		Year Ended February 28, 2025 Amount	Year Ended February 28, 2026 Amount
Special gains		115,706	142,915
	Gain on sales of property and equipment	91,933	94,599
	Gain on sales of property and equipment related to restructuring	3,118	-
	Gain on change in equity in superstore business	-	26,946
	Gain on sales of investments in securities	11,807	5,485
	Insurance income	4,623	344
	Other	4,223	15,540
Special losses		220,941	85,762
	Loss on disposals of property and equipment	23,165	22,525
	Impairment loss	98,260	32,829
	Restructuring expenses	25,605	873
	Loss on business of subsidiaries and associates	46,416	-
	Loss on transfer of subsidiary	4,782	-
	Other	22,711	29,534
Income before income taxes		269,351	434,564
Total Income taxes		86,331	135,472
	Income taxes - current	80,171	114,352
	Income taxes - deferred	6,160	21,120
Net income		183,020	299,091
Net income attributable to non-controlling interests		9,952	6,330
Net income attributable to owners of parent		173,068	292,760

Consolidated statements of comprehensive income

(Millions of yen)

		Year Ended February 28, 2025 Amount	Year Ended February 28, 2026 Amount
Net income		183,020	299,091
Other comprehensive income
	Unrealized gains (losses) on available-for-sale securities, net of taxes	5,618	2,883
	Unrealized gains (losses) on hedging derivatives, net of taxes	697	(412)
	Foreign currency translation adjustments	294,534	(22,985)
	Remeasurements of defined benefit plans, net of taxes	2,416	7,881
	Share of other comprehensive income (loss) of entities accounted for using equity method, net of taxes	70	9,802
Total other comprehensive income (loss)		303,336	(2,830)
Comprehensive income (loss)		486,357	296,261
	Comprehensive income (loss) attributable to owners of parent	474,298	297,038
	Comprehensive income (loss) attributable to non-controlling interests	12,059	(777)

(3) Consolidated statements of cash flows

(Millions of yen)

		Year Ended February 28, 2025 Amount	Year Ended February 28, 2026 Amount
Cash flows from operating activities
	Income before income taxes	269,351	434,564
	Depreciation and amortization	436,593	382,009
	Impairment loss	143,993	32,829
	Amortization of goodwill	138,209	137,890
	Increase (decrease) in allowance for bonuses to employees	766	928
	Increase in net defined benefit asset	(9,806)	(6,967)
	Interest and dividends income	(12,249)	(13,002)
	Interest expenses and interest on bonds	61,382	49,482
	Equity in losses (earnings) of affiliates	450	5,304
	Insurance income	(4,623)	(344)
	Gain on sales of property and equipment	(95,052)	(94,599)
	Loss on disposals of property and equipment	24,744	23,122
	Loss on transfer of subsidiary	4,782	-
	Loss (gain) on sales of investments in securities	(11,723)	(5,458)
	Gain on change in equity in superstore business	-	(26,946)
	Decrease (increase) in notes and accounts receivable, trade	48,376	(17,694)
	Decrease (increase) in trade accounts receivable, financial services	(10,383)	(10,748)
	Decrease (increase) in inventories	7,911	12,049
	Increase (decrease) in notes and accounts payable, trade	(73,035)	5,962
	Increase (decrease) in deposits received	6,197	34,315
	Net increase (decrease) in borrowings in banking business	-	10,000
	Net increase (decrease) in bonds in banking business	(15,000)	-
	Net increase (decrease) in deposits received in banking business	9,625	28,797
	Net increase (decrease) in call money in banking business	60,000	(100,000)
	Net decrease (increase) in ATM-related temporary accounts	(5,937)	(41,969)
	Other	(26,729)	(51,108)
	Subtotal	947,843	788,419
	Interest and dividends received	11,399	14,209
	Interest paid	(57,962)	(52,505)
	Insurance income received	7,910	2,809
	Income taxes paid	(51,628)	(88,643)
	Income taxes refund	18,896	2,446
	Net cash provided by operating activities	876,458	666,736

(Millions of yen)

		Year Ended February 28, 2025 Amount	Year Ended February 28, 2026 Amount
Cash flows from investing activities
	Acquisition of property and equipment	(430,866)	(333,618)
	Proceeds from sales of property and equipment	130,005	143,587
	Acquisition of intangible assets	(108,151)	(70,705)
	Payment for purchase of investments in securities	(64,402)	(46,618)
	Proceeds from sales of investments in securities	43,208	56,047
	Payment for purchase of shares in subsidiaries resulting in change in scope of consolidation	(166,657)	-
	Proceeds from sales of shares in subsidiaries resulting in change in scope of consolidation	2,603	538,359
	Payment for sales of shares in subsidiaries resulting in change in scope of consolidation	(22,573)	(758,627)
	Payment for long-term leasehold deposits	(8,847)	(5,303)
	Refund of long-term leasehold deposits	25,645	20,776
	Proceeds from deposits from tenants	3,715	1,338
	Refund of deposits from tenants	(3,368)	(1,322)
	Payment for acquisition of business	(109,675)	(5,023)
	Payment for time deposits	(7,104)	(4,505)
	Proceeds from withdrawal of time deposits	5,036	6,381
	Other	(20,929)	(18,108)
	Net cash used in investing activities	(732,363)	(477,343)
Cash flows from financing activities
	Net increase (decrease) in short-term loans	82,447	(39,681)
	Proceeds from long-term debts	201,945	144,700
	Repayment of long-term debts	(146,693)	(271,746)
	Payment for redemption of bonds	(341,302)	(210,000)
	Proceeds from share issuance to non-controlling shareholders	619	-
	Purchase of treasury stock	(59,643)	(600,004)
	Dividends paid	(101,408)	(113,563)
	Dividends paid to non-controlling interests	(7,620)	(4,447)
	Payment for changes in ownership interests in subsidiaries that do not result in change in scope of consolidation	(367)	(0)
	Other	(20,625)	(15,137)
	Net cash used in financing activities	(392,648)	(1,109,880)
Effect of exchange rate changes on cash and cash equivalents		35,879	(3,185)
Net increase (decrease) in cash and cash equivalents		(212,673)	(923,673)
Cash and cash equivalents at beginning of period		1,562,493	1,349,820
Cash and cash equivalents at end of period		1,349,820	426,146