1. Consolidated results for the third quarter of the fiscal year ending May 2024 (May 16, 2023 to February 15, 2024)

(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 2024 (May 16, 2023 to May 15, 2024)

(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 contained in this document are forecasts based on currently available information and contain many uncertainties. Actual results may differ from the above figures due to changes in business conditions. Please refer to page 3 of the attached materials for matters related to the above forecasts.

○ Contents of attached materials

1. Qualitative information on quarterly financial results

(1) Explanation of operating results

Regarding the economic situation during the current third quarter consolidated cumulative period (May 16, 2023 to February 15, 2024), the economy is recovering moderately, and stock prices are expected to rise due to solid corporate performance and improved capital efficiency. You can see it. Although incomes are on the rise due to improvements in the employment environment, prices, especially food, continue to rise, and consumption remains polarized due to a decline in real wages.

In the drugstore industry, sales of cosmetics and foods are growing amid a recovery in the flow of people and inbound demand, and the business performance of each company is trending favorably. On the other hand, the population of commercial areas is decreasing due to competition to open new stores, and as the competitive environment becomes increasingly severe, there are some moves toward industry reorganization.

Under these circumstances, our group aims to achieve the new medium-term management plan by improving the accuracy of store openings and promoting renovations, and by expanding the number of affiliated stores, securing the number of prescriptions by using online, and promoting PB (PB). For the private brand strategy, we have been working on increasing the sales composition ratio by developing new products and promoting sales of existing products, and for the DX strategy, we have been working on introducing our own payment service, utilizing purchase history data using MA tools, and developing IT systems. . In terms of performance management, we have also worked to control expenses by improving the accuracy of forecast and actual analysis.

Regarding store development, we are striving to further strengthen our dominance in existing areas and proceed with the revision and closure of unprofitable stores to strengthen our competitiveness.From the beginning of the fiscal year, we have opened 103 new stores, made 5 stores into subsidiaries, and closed 57 stores. Ta. As a result, the number of directly managed Group stores at the end of the fiscal year was 2,640. Regarding our group stores in Thailand, we opened two new stores and closed one store, bringing the number of stores in the country to 19 as of February 15, 2024.

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

In addition to the above, we have 19 overseas stores and 7 FC member stores.

*From the beginning of the current fiscal year, we have revised the counting standards for the number of stores such as EC stores and FC stores, and there are some differences between the number of stores at the beginning of the fiscal year and the number of stores at the end of the previous fiscal year.

As a result, our business results for the third quarter of the current consolidated cumulative period were as follows: Sales of 774,113 million yen (5.8% increase from the same period of the previous year), operating income of 40,267 million yen (6.8% increase from the same period of the previous year), and ordinary income of 406 million yen. Net income attributable to owners of parent amounted to 23,557 million yen (up 8.5%).

(2) Explanation of financial position

(Status of assets, liabilities and net assets)

Total assets at the end of the third quarter of the current consolidated fiscal year were 542,875 million yen, an increase of 3,044 million yen compared to the end of the previous consolidated fiscal year. Current assets decreased by 19,104 million yen compared to the end of the previous fiscal year, to 266,184 million yen. This was mainly due to a decrease of 27,728 million yen in cash and deposits and an increase of 6,796 million yen in merchandise.

Fixed assets increased by 22,148 million yen compared to the end of the previous fiscal year, to 276,690 million yen. This was mainly due to an increase of 18,593 million yen in tangible fixed assets due to new store openings, a decrease of 802 million yen in intangible fixed assets, and an increase of 3,969 million yen in the market value of investment securities held. This is due to yen, etc.

Total liabilities increased by 629 million yen from the end of the previous fiscal year to 236,315 million yen. This was mainly due to an increase of 5,932 million yen in accounts payable due to new store openings, a decrease of 3,150 million yen in long-term loans due to be repaid within one year, and a decrease of 2,250 million yen in long-term loans payable. It is.

Total net assets increased by 2,415 million yen compared to the end of the previous fiscal year, to 306,559 million yen. This was mainly due to a decrease in capital surplus of 8,050 million yen due to the additional acquisition of shares in consolidated subsidiary Drug Eleven Co., Ltd., a decrease in non-controlling interests of 2,564 million yen, and an increase in retained earnings of 10,000 million yen. This was mainly due to an increase of 91 million yen and an increase in valuation difference on other securities of 2,670 million yen.

As a result of the above, the equity ratio increased by 0.6 points to 51.8%.

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

There are no changes to the full-year business forecast announced on June 23, 2023.

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)