Consolidated Financial Statements

(Millions of yen)

			February 28, 2026 Amount	May 31, 2026 Amount
ASSETS
Current assets			1,492,546	1,831,253
	Cash and bank deposits		438,634	661,456
	Notes and accounts receivable - trade, and contract assets		298,684	341,851
	Trade accounts receivable - financial services		42,214	50,363
	Merchandise and finished goods		223,018	243,012
	Work in process		94	151
	Raw materials and supplies		286	806
	Prepaid expenses		89,344	95,706
	Other		407,277	445,630
	Allowance for doubtful accounts		(7,008)	(7,725)
Non-current assets			7,650,015	7,734,087
	Property and equipment		4,497,967	4,576,242
		Buildings and structures, net	1,449,775	1,457,916
		Furniture, fixtures and equipment, net	435,334	447,518
		Land	902,246	917,490
		Right-of-use assets, net	1,451,665	1,488,160
		Construction in progress	231,458	233,681
		Other, net	27,487	31,475
	Intangible assets		2,469,026	2,482,716
		Goodwill	2,109,806	2,121,730
		Software	201,682	210,243
		Other	157,537	150,742
	Investments and other assets		683,021	675,128
		Investments in securities	363,740	356,985
		Long-term loans receivable	7,056	7,574
		Long-term leasehold deposits	157,112	155,725
		Net defined benefit asset	67,194	67,758
		Deferred tax assets	37,148	35,986
		Other	52,406	52,720
		Allowance for doubtful accounts	(1,637)	(1,622)
Deferred assets			395	363
	Bond issuance cost		395	363
TOTAL ASSETS			9,142,957	9,565,703

(Millions of yen)

		February 28, 2026 Amount	May 31, 2026 Amount
LIABILITIES
Current liabilities		1,900,670	1,947,698
	Notes and accounts payable, trade	416,083	527,319
	Short-term loans	135,580	59,300
	Current portion of bonds	255,657	60,000
	Current portion of long-term loans	190,456	244,983
	Income taxes payable	37,440	30,890
	Accrued expenses	258,979	271,458
	Contract liabilities	70,667	70,852
	Deposits received	177,934	328,795
	Lease obligations	164,772	167,678
	Allowance for loss on business of subsidiaries and associates	3,299	－
	Allowance for sales promotion expenses	335	379
	Allowance for bonuses to employees	5,388	10,685
	Allowance for bonuses to Directors and Audit & Supervisory Board Members	718	6
	Other	183,357	175,347
Non-current liabilities		3,594,091	3,901,340
	Bonds	929,828	945,465
	Long-term loans	718,495	956,447
	Deferred tax liabilities	224,633	233,830
	Allowance for retirement benefits to Directors and Audit & Supervisory Board Members	134	111
	Allowance for stock payments	1,504	1,665
	Net defined benefit liability	16,566	16,561
	Deposits received from tenants and franchised stores	13,796	14,043
	Lease obligations	1,398,990	1,444,788
	Asset retirement obligations	225,304	229,889
	Other	64,836	58,535
TOTAL LIABILITIES		5,494,762	5,849,039
NET ASSETS
Shareholders' equity		2,634,255	2,637,049
	Common stock	50,000	50,000
	Capital surplus	293,429	293,423
	Retained earnings	2,906,276	2,909,007
	Treasury stock, at cost	(615,450)	(615,381)
Total accumulated other comprehensive income		985,971	1,051,695
	Unrealized gains (losses) on available-for-sale securities, net of taxes	55,662	52,605
	Unrealized gains (losses) on hedging derivatives, net of taxes	4,622	4,628
	Foreign currency translation adjustments	884,784	954,919
	Remeasurements of defined benefit plans	40,900	39,542
Share award rights		225	300
Non-controlling interests		27,743	27,618
TOTAL NET ASSETS		3,648,195	3,716,664
TOTAL LIABILITIES AND NET ASSETS		9,142,957	9,565,703

(Millions of yen)

		Three Months Ended May 31, 2025 Amount	Three Months Ended May 31, 2026 Amount
Revenues from operations		2,777,370	2,378,819
	Net sales	2,373,218	2,024,015
	Cost of sales	1,959,725	1,653,834
Gross profit on sales		413,492	370,181
	Operating revenues	404,151	354,804
Gross profit from operations		817,644	724,985
	Selling, general and administrative expenses	752,568	619,946
Operating income		65,076	105,039
Non-operating income		4,617	7,708
	Interest income	2,659	3,059
	Equity in earnings of affiliates	－	3,435
	Other	1,958	1,213
Non-operating expenses		16,411	12,011
	Interest expenses	7,609	5,993
	Interest on bonds	5,026	4,697
	Equity in losses of affiliates	1,261	－
	Other	2,513	1,320
Ordinary income		53,281	100,735

(Millions of yen)

		Three Months Ended May 31, 2025 Amount	Three Months Ended May 31, 2026 Amount
Special gains		37,858	3,977
	Gain on sales of property and equipment	37,201	1,107
	Reversal of provision for loss on business of subsidiaries and associates	－	2,546
	Other	657	323
Special losses		13,169	19,548
	Loss on disposals of property and equipment	3,625	4,137
	Impairment loss	873	9,804
	Restructuring expenses	768	－
	Loss on business of subsidiaries and associates	704	－
	Other	7,196	5,605
Income before income taxes		77,971	85,164
Total Income taxes		26,990	24,312
	Income taxes - current	24,659	16,854
	Income taxes - deferred	2,330	7,457
Net income		50,981	60,852
Net income attributable to non-controlling interests		1,966	252
Net income attributable to owners of parent		49,014	60,600

(Millions of yen)

		Three Months Ended May 31, 2025 Amount	Three Months Ended May 31, 2026 Amount
Net income		50,981	60,852
Other comprehensive income
	Unrealized gains (losses) on available-for-sale securities, net of taxes	8,417	(2,812)
	Unrealized gains (losses) on hedging derivatives, net of taxes	(362)	5
	Foreign currency translation adjustments	(172,779)	69,984
	Remeasurements of defined benefit plans, net of taxes	(844)	(971)
	Share of other comprehensive income (loss) of entities accounted for using equity method, net of taxes	35	(382)
Total other comprehensive income (loss)		(165,533)	65,823
Comprehensive income (loss)		(114,551)	126,675
	Comprehensive income (loss) attributable to owners of parent	(115,325)	126,324
	Comprehensive income (loss) attributable to non-controlling interests	773	351

(Millions of yen)

		Three Months Ended May 31, 2025 Amount	Three Months Ended May 31, 2026 Amount
Cash flows from operating activities
	Income before income taxes	77,971	85,164
	Depreciation and amortization	105,212	92,423
	Impairment loss	873	9,804
	Amortization of goodwill	35,443	35,783
	Interest income	(2,659)	(3,059)
	Interest expenses and interest on bonds	12,636	10,691
	Equity in losses (earnings) of affiliates	1,261	(3,435)
	Gain on sales of property and equipment	(37,201)	(1,107)
	Loss on disposals of property and equipment	4,159	4,137
	Decrease (increase) in notes and accounts receivable, trade	(17,543)	(39,056)
	Decrease (increase) in trade accounts receivable, financial services	(6,218)	(8,148)
	Decrease (increase) in inventories	8,196	(15,584)
	Increase (decrease) in notes and accounts payable, trade	66,738	104,635
	Increase (decrease) in deposits received	162,219	150,830
	Net increase (decrease) in deposits received in banking business	(1,994)	ー
	Net increase (decrease) in call money in banking business	(90,000)	－
	Net decrease (increase) in ATM-related temporary accounts	(25,798)	－
	Other	(22,507)	(47,332)
	Subtotal	270,789	375,747
	Interest and dividends received	2,829	3,266
	Interest paid	(17,857)	(13,449)
	Income taxes paid	(21,280)	(22,161)
	Income taxes refund	859	98
	Net cash provided by operating activities	235,339	343,500

(Millions of yen)

		Three Months Ended May 31, 2025 Amount	Three Months Ended May 31, 2026 Amount
Cash flows from investing activities
	Acquisition of property and equipment	(92,784)	(74,249)
	Proceeds from sales of property and equipment	60,476	3,201
	Acquisition of intangible assets	(23,377)	(15,022)
	Payment for purchase of investments in securities	(15,962)	(1,280)
	Proceeds from sales of investments in securities	12,951	2,217
	Proceeds from sales of shares in subsidiaries resulting in change in scope of consolidation	－	13,184
	Payment for sales of shares in subsidiaries resulting in change in scope of consolidation	(1,908)	－
	Payment for long-term leasehold deposits	(1,616)	(919)
	Refund of long-term leasehold deposits	5,070	2,119
	Proceeds from deposits from tenants	588	318
	Refund of deposits from tenants	(791)	(122)
	Payment for acquisition of business	－	(70)
	Payment for time deposits	(209)	－
	Proceeds from withdrawal of time deposits	62	453
	Other	(4,218)	(2,287)
	Net cash used in investing activities	(61,719)	(72,458)
Cash flows from financing activities
	Net increase (decrease) in short-term loans	218,575	(76,480)
	Proceeds from long-term debts	12,000	324,224
	Repayment of long-term debts	(141,705)	(43,090)
	Proceeds from issuance of commercial papers	－	78,519
	Redemption of commercial papers	－	(78,519)
	Redemption of bonds	－	(196,200)
	Purchase of treasury stock	(90,083)	(0)
	Dividends paid	(51,550)	(57,348)
	Dividends paid to non-controlling interests	(801)	(476)
	Payment for changes in ownership interests in subsidiaries that do not result in change in scope of consolidation	(0)	－
	Other	(4,624)	(4,091)
	Net cash used in financing activities	(58,189)	(53,463)
Effect of exchange rate changes on cash and cash equivalents		(17,883)	4,904
Net increase (decrease) in cash and cash equivalents		97,547	222,484
Cash and cash equivalents at beginning of period		1,349,820	426,146
Cash and cash equivalents at end of period		1,447,367	648,630

Consolidated Quarterly Financial Statements

(1)Consolidated quarterly balance sheets

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

Consolidated quarterly statements of income

Consolidated quarterly statements of comprehensive income

(3) Consolidated quarterly statements of cash flows