1. Consolidated financial results for the third quarter of the fiscal year ending May 2023 (May 16, 2022 to February 15, 2023)

(2) Consolidated financial position

2. 2. Dividend status

(Note) Whether or not there is any revision from the recently announced dividend forecast:Nothing

3. Consolidated earnings forecast for the fiscal year ending May 2023 (May 16, 2022 to May 15, 2023)

(Note) Whether or not there is any revision from the latest announced business forecast:Nothing

* Notes

(1) Changes in significant subsidiaries during the current quarterly consolidated cumulative period (changes in specified subsidiaries due to changes in the scope of consolidation):Nothing

(2) Application of accounting treatment specific to the preparation of quarterly consolidated financial statements:Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatements of revisions

① Changes in accounting policies due to revisions to accounting standards, etc .:Nothing

(2) Changes in accounting policies other than (1):Nothing

③ Change of accounting estimateNothing

④ Correction redisplayNothing

(4) Number of issued shares (common stock)

* Quarterly financial statements are not subject to quarterly reviews by certified accountants or audit corporations.

* Explanation of proper use of business forecasts and other special notes

The forecast figures given in this material are forecasts based on the information available at this time and may contain uncertainties. Actual business results may differ from the above figures due to changes in business conditions. Please see page 2 of the attached document for matters related to the above forecast.

○ Contents of attached materials

1. Qualitative information on quarterly financial results

(1) Explanation of operating results

In the third quarter of the current consolidated cumulative period (May 16, 2022 to February 15, 2023), the economic situation is in a recovery trend despite the 7th and 8th waves of the spread of the new coronavirus infection. However, the economy showed signs of a gradual recovery. However, due to fluctuations in resource prices and exchange rates, prices for electricity and daily necessities continue to rise, making it difficult to expect an improvement in consumer sentiment for the time being. In the drugstore industry, competitors continued to expand their store openings, and although there was a temporary boost to COVID-19-related products, the business environment surrounding the Company remained severe.

Under these circumstances, the Group aims to achieve the goals of the new medium-term management plan. The store strategy is to improve the accuracy of store openings and promote renovations. We have worked to increase the sales composition ratio, and in the DX strategy, we have been working on sales promotion utilization of customer data, development of our own payment service, and IT system development. In addition, we have worked to improve profitability and reduce selling, general and administrative expenses by establishing a performance management system.

With regard to store development, we worked to further strengthen our dominance in existing areas and proceeded with the renovation and closure of unprofitable stores in order to strengthen competitiveness. Since the beginning of the fiscal year, we have opened 111 new stores, acquired the business of one store, and closed 63 stores. . As a result, the number of group stores as of the end of the third quarter was 2,571 directly managed stores.

The status of store openings and closures of the Group is as follows (unit: store)

In addition to the above, we have 17 overseas stores and 7 franchise stores.

As a result, the performance for the third quarter of the current consolidated cumulative period was 731,436 million yen in sales (up 5.7% year-on-year), 37,719 million yen in operating income (up 10.8% year-on-year), and 378 million yen in ordinary income. 49 million yen (up 11.6% year on year), and profit attributable to owners of parent of 21,712 million yen (up 14.9% year on year).

(2) Explanation of financial position

Total assets as of the end of the current third quarter consolidated accounting period decreased by 34,755 million yen from the end of the previous consolidated fiscal year to 527,608 million yen. This was mainly due to a decrease in cash and deposits and accounts receivable due to the fact that the end of the previous consolidated fiscal year was a holiday for financial institutions.

Total liabilities decreased by 51,170 million yen from the end of the previous consolidated fiscal year to 227,146 million yen. The main factors are

This was due to a decrease in accounts payable due to the impact of the financial institution holidays at the end of the previous consolidated fiscal year.

Total net assets increased ¥16,415 million from the end of the previous fiscal year to ¥300,461 million.

As a result of the above, the equity ratio increased by 5.9 percentage points to 51.8%.

(3) Explanation of future forecast information such as consolidated earnings forecasts

There is no change to the full-year earnings forecast announced on June 21, 2022.

2. 2. Quarterly consolidated financial statements and main notes

(2) Quarterly consolidated income statement and quarterly consolidated income statement

(Quarterly consolidated income statement)

(Quarterly Consolidated Comprehensive Income Statement)