Results Briefing: FY Ending Feb. 2022

Results Briefing: FY Ending Feb. 2022

14th April 2022

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AGENDA

Results Overview FY Ending Feb. 2022

Business Situation

About Situation by Channel

About Balance Sheet

Full-year Consolidated Business Plan for FY Ending Feb. 2023

6 Reference Data

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Covid-19 Impact on 2ND Half Results of 2022 Ending Feb.

In the first half of 2H of the fiscal year, there were signs of a recovery in business performance following a temporary end to the COVID-19 infection, but the infection spread explosively again in January of Q4. The number of new infections reached a record high on January 18.

The impact is not limited to the retail trends affected by the domestic infection but began with the disruption of product procurement because of COVID-19 at overseas production sites, and the entire supply chain challenges due to soaring oil prices, yen depreciation, and the conflict are affecting business management.

Number of new infections nationwide

At least 26,000 people (Past record high)

2.6万人以上（過去最多超）

５千人以上

At least 5,000 people

５Le千ss人th未an満5,000 people

100000 80000 60000 40000

Q3 of FY02/2022 (Sep.-Nov.)

Lifting of the declaration of a state of emergency and measures to contain the spread of COVID-19 for all prefectures on September 30, 2021

20000

0 2021/9/1

2021/10/1

2021/11/1

2021/12/1

2022/1/1

2022/2/1

2022/3/1

Dec. 22

First confirmation of community-acquired Omicron strain

Jan. 9

Measures to contain the spread of COVID-19 taken in 3 prefectures, Okinawa, Yamaguchi, Hiroshima （the measures spread to 34 prefectures on Jan. 27）

Jan. 16

32,197 new infections per day, a new record high (previous record was marked on Aug. 20, 2021)

Mar. 22

Lifting of the measures to contain the spread for 18 prefectures and for the first time in about 2 months with no area where the measures are taken

Source: the website of the Ministry of Health, Labour and Welfare

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Results Overview FY Ending Feb. 2022

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2nd Half Result Highlights for FY Ending Feb. 2022

Net sales were affected by the fifth and sixth waves of COVID-19 and by strategic efforts to curb discount sales. As a result, they were lower than the previous year, standing at -2.17 billion yen. However, existing businesses, excluding businesses withdrawn in the previous period, achieved 100.7%.

Operating income increased 4.68 billion yen because of the improved gross profit margin and reduced SG&A expenses, leading to a significant improvement in profitability.

Current Net Income

-0.86 Billion yen

YoY Change -19.16 Billion yen

Compared to year before last Change -1.99 Billion yen