Interim report
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Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Consolidated Financial Results for the Fiscal Year Ended August 31, 2026 [Japanese GAAP] October 9, 2026 Company name: JINS HOLDINGS Inc. Stock exchange listing: Tokyo Stock Exchange Code number: 3046 URL: https://jinsholdings.com Representative: Ryo Tanaka, Representative Director, President and COO Contact: Motoaki Nakatani, Executive Officer and Head of IR Office Phone: +81-3-6890-4800 Scheduled date of Annual General Meeting of Shareholders: November 26, 2026 Scheduled date of commencing dividend payments: November 27, 2026 Scheduled date of filing of Annual Securities Report: November 25, 2026 Availability of supplementary briefing material on annual financial results: Available Schedule of annual financial results briefing session: Scheduled (for analysts and institutional investors) (Amounts of less than one million yen are rounded down) 1. Consolidated Financial Results for the Fiscal Year Ended August 31, 2026 (September 1, 2025 to August 31, 2026) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Fiscal year ended Million yen % Million yen % Million yen % Million yen % August 31, 2026 111,220 14.4 11,454 (5.3) 11,510 (5.0) 7,797 (6.4) August 31, 2025 97,215 17.1 12,093 54.3 12,121 56.7 8,330 78.3 (Note) Comprehensive income: Fiscal year ended August 31, 2026: ¥8,140 million [(1.8) %] Fiscal year ended August 31, 2025: ¥8,292 million [72.2%] Earnings per share Diluted earnings per share Rate of return on equity Ordinary profit to total assets Operating profit to net sales Fiscal year ended Yen Yen % % % August 31, 2026 334.00 - 22.6 18.2 10.3 August 31, 2025 356.89 - 29.1 21.7 12.4 (Reference) Share of gain (loss) of entities accounted for using equity method: Fiscal year ended August 31, 2026: - Fiscal year ended August 31, 2025: - (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share Million yen Million yen % Yen As of August 31, 2026 68,409 37,329 54.6 1,598.81 As of August 31, 2025 57,866 31,742 54.9 1,359.91 (Reference) Equity: As of August 31, 2026: ¥37,329 million As of August 31, 2025: ¥31,742 million (3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Fiscal year ended Million yen Million yen Million yen Million yen August 31, 2026 10,898 (8,145) (3,922) 11,337 August 31, 2025 10,533 (7,864) (9,425) 11,977
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2. Dividends Annual dividends Total dividends Payout ratio (consolidated) Dividends to net assets (consolidated) 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Fiscal year ended Yen Yen Yen Yen Yen Million yen % % August 31, 2025 - 50.00 - 59.00 109.00 2,576 30.5 8.9 August 31, 2026 - 47.00 - 57.00 104.00 2,458 31.1 7.0 Fiscal year ending August 31, 2027 (forecast) - 35.00 - 69.00 104.00 31.1 3. Forecast of Consolidated Financial Results for the Fiscal Year Ending August 31, 2027 (September 1, 2026 to August 31, 2027) (% indicates changes from the previous corresponding period) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Million yen % Million yen % Million yen % Million yen % Yen Half year 57,500 13.8 3,860 (21.7) 3,740 (23.7) 2,630 (22.5) 112.65 Full year 124,270 11.7 11,500 0.4 11,300 (1.8) 7,800 0.0 334.10 * Notes: (1) Significant changes in the scope of consolidation during the period: Yes Newly included company: 1 (JINS Vietnam Co., Ltd.), Excluded companies: - (Name) (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: None 2) Changes in accounting policies other than the above 1): None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury stock): August 31, 2026: 23,980,000 shares August 31, 2025: 23,980,000 shares 2) Total number of treasury stock at the end of the period: August 31, 2026: 631,864 shares August 31, 2025: 638,379 shares 3) Average number of shares during the period: Fiscal year ended August 31, 2026: 23,346,249 shares Fiscal year ended August 31, 2025: 23,341,062 shares (Note) The Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets of “Stock Granting Trust (J -ESOP)” are included in the treasury stock deducted in the calculation of the total number of treasury stock at the end of the period and the average number of shares during the period. * This financial report is outside the scope of audit by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes Forward-looking statements in this document, such as the financial results forecast, are based on information currently available to the Group and certain assumptions that the Group has deemed reasonable. These statements are not intended as the Group’s commitment to achieve them, and actual performance may differ significantly due to various factors. For the assumptions for the financial results forecast and precautions for using the financial results forecast, please refer to “(4) Future Outlook” on page 6 of the attached document. The Company plans to hold a financial results briefing for analysts and institutional investors on October 9, 2026. Financial results materials to be used at the briefing will be available on the Company’s website immediately after the session.
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1 Table of Contents 1. Overview of Business Results, etc. ......................................................................................................................... 2 (1) Overview of Business Results for the Fiscal Year Under Review .................................................................... 2 (2) Overview of Financial Position for the Fiscal Year Under Review .................................................................. 4 (3) Overview of Cash Flows for the Fiscal Year Under Review ............................................................................ 5 (4) Future Outlook ................................................................................................................................................. 6 2. Basic Stance on Selection of Accounting Standards ............................................................................................... 6 3. Consolidated Financial Statements and Primary Notes .......................................................................................... 7 (1) Consolidated Balance Sheets............................................................................................................................ 7 (2) Consolidated Statements of Income and Comprehensive Income ................................................................... 9 Consolidated Statements of Income ................................................................................................................. 9 Consolidated Statements of Comprehensive Income ..................................................................................... 10 (3) Consolidated Statements of Changes in Net Assets ........................................................................................11 (4) Consolidated Statements of Cash Flows ........................................................................................................ 13 (5) Notes to Consolidated Financial Statements .................................................................................................. 15 (Notes on Going Concern Assumption) .......................................................................................................... 15 (Segment Information) ................................................................................................................................... 15 (Per Share Information) .................................................................................................................................. 18 (Significant Subsequent Events) ..................................................................................................................... 18 4. Other Notes ......................................................................................................................................................... 19 (1) Changes of Officers ....................................................................................................................................... 19
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2 1. Overview of Business Results, etc. (1) Overview of Business Results for the Fiscal Year Under Review During the fiscal year ended August 31, 2026 (September 1, 2025 to August 31, 2026), the Japanese economy continued a moderate recovery trend, although sufficient attention should be paid to the impact of the situation in the Middle East and natural disast ers. Inflation still has a significant impact on private consumption, and although consumer sentiment has bottomed out, the situation continues to warrant attention. In addition, attention needs to be paid to the impact of fluctuations in financial and capital markets. Looking at the global economy, although uncertainty has increased due to concerns over the prolonged situation in the Middle East, the economy continues to show a moderate recovery. However, overall global uncertainty continues to rise, and the impact on each country and region remains significant. Under this market environment, in the eyewear business, the Company and its consolidated subsidiaries (collectively, the “Group”) continued such initiatives as strengthening development of innovative products , advancing store development, and expanding the overseas business, which they identified as management issues. With regard to product development, we are working from a global perspective to develop products that are both functional and fashionable in accordance with customer needs and usage scenarios. We are further refining our global SPA model, in which planning, production and sales are conducted in-house in an integrated manner. As for store strategies, we have promoted store openings at locations taking into account customer convenience based on the market environment. In Japan, we are opening stores in shopping malls, station buildings, and roadside locations, in accordance with customer and regional characteristics. In addition, we are creating new customer experiences, such as “delivery of products in as little as 30 minutes” and “JINS AI Lens Adviser” to meet inbound demand. Additionally, JINS Ginza, which opened as our first global flagship store, and JINS Shinjuku, which features JINS’ largest product lineup covering about 1,000 square meters, have achieved results that exceed our initial plans. For JINS Ginza, which focuses on concepts such as once-in-a-lifetime encounters and broadcasting to the world, about 80% of customers are inbound visitors from overseas, giving us confidence to take the first step toward major growth of the JINS brand with a view to future overseas expansion. For overseas locations, based on the Japanese store model, we have been developing stores tailored to the market environment and competitive situation in each region. In China, our business restructuring has led to a solid performance recovery. In Taiwan, in response to the Executive Yuan's “Healthy Taiwan Deep Cultivation Plan,” we opened our first store inside a hospital, and the JINS brand in Taiwan has begun to grow significantly as an eyewear brand. Regarding business expansion in Southeast Asia, along with expanding store development in Vietnam, we converted our previous franchise operations in the Philippines into directly operated stores, transitioning to a stage that will accelerate further growth. In principle, we operate overseas stores directly through our own subsidiaries, maintaining flexible control and financial soundness even amid changes in the external environment. Building on this foundation, we are making appropriate investments in stores and systems to create new value through eyewear on a global scale. Going forward, in addition to strengthening store operations, we will implement store -opening strategies based on the market environment and expand to new countries to achieve rapid growth in each country and region. In terms of store development, the number of stores as of August 31, 2026, was 878, including 591 stores in Japan and 287 stores overseas (161 in China, 103 in Taiwan, 13 in Hong Kong, 6 in the United States, and 4 in Vietnam). As a result, for the fiscal year ended August 31, 2026, the Company posted net sales of ¥111,220 million (up 14.4% year on year), mainly due to higher net sales at existing stores in the domestic eyewear business. Operating profit was ¥11,454 million (down 5.3% year on year), ordinary profit came to ¥11,510 million (down 5.0% year on year) and profit attributable to owners of parent was ¥7,797 million (down 6.4% year on year).
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3 Business results by segment are as follows: Net sales by business segment Segment For the fiscal year ended August 31, 2026 (September 1, 2025 to August 31, 2026) Percentage of the Company’s net sales Year-on-year change Domestic eyewear business ¥84,707 million 76.2% 10.5% Overseas eyewear business ¥26,512 million 23.8% 29.0% Total ¥111,220 million 100.0% 14.4% <Domestic Eyewear Business> In the domestic eyewear business, net sales remained strong, driven by strong sales of high-priced lenses and frames due to continuous sales promotion campaigns along with the acceleration in store openings. In terms of store development, the number of stores in Japan was 591 (55 openings and 4 closures). As a result, net sales of the domestic eyewear business were ¥84,707 million (up 10.5% year -on-year), and segment operating profit was ¥9,235 million (down 18.6% year-on-year). <Overseas Eyewear Business> In the overseas eyewear business, in China, our business restructuring efforts progressed, leading to the Company's solid business performance. In Taiwan, we are accelerating further store openings as our business performance remains steady. In Hong Kong, ongoing structural reforms continue to progress smoothly, and business performance is expected to recover. In the United States, the new store performed well, and business performance remained solid. In terms of store development, the total number of stores overseas was 287 as of the end of the period under review, including 161 stores in China (15 openings and 10 closures), 103 in Taiwan (25 openings and no closures), 13 in Hong Kong ( 3 openings and no closures), 6 in the United States (1 opening and no closures) , and 4 in Vietnam (4 openings and no closures). As a result, net sales of the overseas eyewear business were ¥ 26,512 million (up 29.0% year on year), and segment operating profit was ¥2,219 million (up 197.8% year on year).
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4 (2) Overview of Financial Position for the Fiscal Year Under Review (Status of Assets, Liabilities and Net Assets) Assets, liabilities and net assets at the end of the fiscal year under review are as follows. (Millions of yen) End of the previous fiscal year (August 31, 2025) End of the fiscal year under review (August 31, 2026) Change Change (%) Total assets 57,866 68,409 10,543 18.2 Liabilities 26,124 31,080 4,956 19.0 Net assets 31,742 37,329 5,586 17.6 (a) Assets Current assets grew ¥1,835 million from the end of the previous fiscal year to ¥30,486 million. This was mainly due to a decrease of ¥6 39 million in cash and deposits, despite increases of ¥1,761 million in merchandise and finished goods and ¥102 million in work in process. Non-current assets grew ¥8,707 million from the end of the previous fiscal year to ¥37,923 million. This was mainly due to increases of ¥ 3,473 million in property, plant and equipment such as buildings and structures and ¥ 785 million in leasehold and guarantee deposits, as well as an increase of ¥ 4,612 million in intangible assets due to system development, etc. As a result, total assets increased ¥10,543 million from the end of the previous fiscal year to ¥68,409 million. (b) Liabilities Current liabilities grew ¥254 million from the end of the previous fiscal year to ¥21,972 million. This was mainly due to increases of ¥893 million in accounts payable - trade and ¥1,019 million in accounts payable - other, and accrued expenses, despite decreases of ¥1,160 million in income taxes payable and ¥398 million in accrued consumption taxes. Non-current liabilities increased ¥4,701 million from the end of the previous fiscal year to ¥9,108 million. This was mainly due to increases of ¥4,516 million in long-term accounts payable - other. As a result, total liabilities increased ¥4,956 million from the end of the previous fiscal year to ¥31,080 million. (c) Net assets Net assets were up ¥5,586 million from the end of the previous fiscal year to ¥37,329 million. This was mainly due to the recording of ¥ 7,797 million in profit attributable to owners of parent, despite a decrease of ¥2,505 million due to the payment of dividends.
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5 (3) Overview of Cash Flows for the Fiscal Year Under Review Cash flows in the fiscal year under review were as follows. Cash and cash equivalents as of the end of the fiscal year under review amounted to ¥11,337 million. (Millions of yen) Previous fiscal year Fiscal year under review Change Cash flows from operating activities 10,533 10,898 365 Cash flows from investing activities (7,864) (8,145) (280) Cash flows from financing activities (9,425) (3,922) 5,502 (a) Cash flows from operating activities Net cash provided by operating activities increased ¥365 million year on year to ¥10,898 million. This was mainly due to an increase in funds resulting from the recording of ¥ 10,426 million in profit before income taxes and ¥ 4,148 million in depreciation, despite a decrease in funds due to ¥ 3,824 million of income taxes paid. (b) Cash flows from investing activities Net cash used in investing activities increased ¥280 million year on year to ¥8,145 million. This was mainly due to expenditures of ¥2,952 million in purchase of property, plant and equipment in line with the store openings and renovations and ¥4,907 million in purchase of intangible assets. (c) Cash flows from financing activities Net cash used in financing activities decreased ¥5,502 million year on year to ¥3,922 million. This was mainly due to a net decrease in short -term borrowings of ¥242 million, repayments of installment payables of ¥1,006 million, and dividends paid of ¥2,503 million. (d) Trends in cash-flow-related indicators The trends in cash-flow-related indicators of the Group are as follows. Fiscal year ended August 31, 2022 Fiscal year ended August 31, 2023 Fiscal year ended August 31, 2024 Fiscal year ended August 31, 2025 Fiscal year ended August 31, 2026 Equity ratio (%) 37.3 48.5 47.4 54.9 54.6 Equity ratio on market value basis (%) 186.9 183.9 230.7 330.3 210.0 Cash flows to interest-bearing liabilities ratio (%) 519.6 206.7 112.6 54.4 52.4 Interest coverage ratio (times) 30.0 43.3 82.5 75.0 53.9 Equity ratio: Equity/Total assets Equity ratio on market value basis: Market capitalization/Total assets Cash flows to interest-bearing liabilities ratio: Interest-bearing liabilities/Cash flows Interest coverage ratio: Cash flows/Interest payments (Notes) 1. Market capitalization is calculated by multiplying the final value of the share price at the end of the fiscal year by the total number of outstanding shares. 2. Among the liabilities recorded on the Consolidated Balance Sheets, interest -bearing liabilities refer to liabilities for which interest is paid. 3. Figures used for cash flows and interest payments are the figures of “Cash flows from operating activities” and “Interest paid” recorded on the Consolidated Statements of Cash Flows.
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6 (4) Future Outlook Although the overall global economy continues to show a moderate recovery, economic trends indicate a moderate recovery and inflation concerns in the United States, as well as an economic slowdown caused by the slump in the real estate market in China , which is expected to keep the outlook uncertain. The increase in the interest burden on households and corporations caused by global inflation and interest rate hikes in various countries has begun to have an impact on domestic demand in each country. Consumer preference for essential goods and products with intrinsic value has become more evident in customers' purchasing behavior. Amid these changes in the business environment, the Group is committed to “promoting globalization,” “creating new customer experiences, ” and “enhancing management efficiency and strengthening financial foundation” to achieve further growth. In our efforts to promote globalization, starting with JINS Ginza, we will introduce creativity and innovation originating in Japan to the world and continue our challenge to establish our position as a global brand. In China, although our business performance remains affected by the economic downturn, we will further advance the transition to a structure that generates steady revenue as the effects of our business restructuring become visible. In Taiwan, we will seek to further penetrate the JINS brand while aiming to become a community -rooted No. 1 brand. In the United States, we will strive to improve profitability by accelerating store openings that have continued since the previous fiscal year. In Southeast Asian regions including Vietnam and the Philippines, we will promote new store openings while seeking to establish a profitable business model, aiming to achieve profitability. Furthermore, we will actively recruit global talent, both dom estically and overseas, to further expand our business activities. To create a new customer experience, we will strive to provide innovative solutions through store openings, attractive products, effective promotions, and in-store purchasing experiences. In terms of store strategies, we will continue to strengthen new store openings in areas where we have not yet opened stores and in suburban roadside areas, while promoting the establishment of stores that not only have high profitability and productivity but also can provide customers with an optimal purchasing experience. In addition, we will focus on our standard products and work to strengthen planning and proposals for optional lenses that cater to customers’ usage scenarios, as well as pursuing a pricing strategy with a balanced approach to improve gross profit margin s. Furthermore, we will continue to strengthen the development of innovative products and promote business development that provides new value to our customers, while establishing a system to properly protect the Company’s intellectual property rights. Regarding the enhancement of management efficiency and strengthening of financial foundation, as cost increases stemming from rising labor costs and soaring consumer goods prices have become evident, we will review Head Office operations in addition to ongoing efforts to improve store operations. Through strategic IT investments, such as the introduction of AI (artificial intelligence) and a global core system, we will further digitalize business processes and promote optimization and efficiency. At the sam e time, we will maintain financial soundness through agile capital control, using these as a solid foundation to strive for further enhancement of corporate value. For the fiscal year ending August 31, 2027, our forecast for the full year consolidated financial results is as follows: net sales of ¥124,270 million, operating profit of ¥11,500 million, ordinary profit of ¥11,300 million, and profit attributable to owners of parent of ¥7,800 million. 2. Basic Stance on Selection of Accounting Standards In consideration of the comparability of consolidated financial statements between periods as well as the comparability between corporations, the Group has decided to continue preparing its consolidated financial statements based on Japanese accounting standards for the time being. Regarding the application of IFRS, the Group will take appropriate actions by considering various circumstances both in Japan and overseas.
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7 3. Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheets (Millions of yen) As of August 31, 2025 As of August 31, 2026 Assets Current assets Cash and deposits 11,977 11,337 Accounts receivable - trade 7,968 8,036 Merchandise and finished goods 5,838 7,600 Raw materials and supplies 495 557 Work in process 31 133 Other 2,339 2,820 Total current assets 28,650 30,486 Non-current assets Property, plant and equipment Buildings and structures 22,207 26,738 Accumulated depreciation (11,410) (12,864) Buildings and structures, net 10,796 13,873 Machinery, equipment and vehicles 159 164 Accumulated depreciation (124) (116) Machinery, equipment and vehicles, net 34 47 Tools, furniture and fixtures 3,837 4,914 Accumulated depreciation (2,950) (3,544) Tools, furniture and fixtures, net 886 1,369 Leased assets 3,057 3,145 Accumulated depreciation (2,641) (2,743) Leased assets, net 415 402 Construction in progress 284 199 Other 312 312 Total property, plant and equipment 12,731 16,205 Intangible assets Software 2,415 8,157 Software in progress 3,261 2,132 Other 0 - Total intangible assets 5,677 10,290 Investments and other assets Investment securities 1,623 964 Long-term loans receivable 1,364 1,458 Deferred tax assets 1,608 1,697 Leasehold and guarantee deposits 5,913 6,698 Other 297 609 Total investments and other assets 10,807 11,427 Total non-current assets 29,216 37,923 Total assets 57,866 68,409
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8 (Millions of yen) As of August 31, 2025 As of August 31, 2026 Liabilities Current liabilities Accounts payable - trade 3,178 4,071 Short-term borrowings 5,449 5,363 Current portion of long-term borrowings 10 5 Lease obligations 152 133 Accounts payable - other, and accrued expenses 7,905 8,925 Income taxes payable 2,393 1,233 Accrued consumption taxes 532 133 Contract liabilities 927 1,151 Provision for bonuses 302 275 Provision for product warranties 322 355 Allowance for business structure reform expenses 43 - Other 498 322 Total current liabilities 21,717 21,972 Non-current liabilities Long-term borrowings 14 9 Provision for share awards 153 97 Lease obligations 103 197 Asset retirement obligations 1,321 1,490 Long-term accounts payable - other 2,557 7,074 Other provisions 233 175 Other 22 64 Total non-current liabilities 4,406 9,108 Total liabilities 26,124 31,080 Net assets Shareholders’ equity Share capital 3,202 3,202 Capital surplus 3,201 3,201 Retained earnings 28,996 34,231 Treasury stock (4,033) (4,004) Total shareholders’ equity 31,367 36,631 Accumulated other comprehensive income Valuation difference on available-for-sale securities 66 59 Foreign currency translation adjustment 308 638 Total accumulated other comprehensive income 375 697 Total net assets 31,742 37,329 Total liabilities and net assets 57,866 68,409
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9 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statements of Income (Millions of yen) For the fiscal year ended August 31, 2025 For the fiscal year ended August 31, 2026 Net sales 97,215 111,220 Cost of sales 21,400 24,037 Gross profit 75,814 87,182 Selling, general and administrative expenses 63,720 75,728 Operating profit 12,093 11,454 Non-operating income Interest income 25 23 Foreign exchange gains 123 171 Subsidy income 66 45 Other 45 136 Total non-operating income 260 377 Non-operating expenses Interest expenses 155 240 Settlement payments - 42 Other 77 37 Total non-operating expenses 232 320 Ordinary profit 12,121 11,510 Extraordinary income Gain on sale of investment securities 442 - Total extraordinary income 442 - Extraordinary losses Loss on retirement of non-current assets 282 276 Impairment loss 221 741 Loss on store closings 27 26 Loss on sale of investment securities - 17 Loss on valuation of investment securities 405 22 Total extraordinary losses 936 1,083 Profit before income taxes 11,628 10,426 Income taxes - current 3,515 2,670 Income taxes - deferred (217) (41) Total income taxes 3,297 2,629 Profit 8,330 7,797 Profit attributable to non-controlling interests - - Profit attributable to owners of parent 8,330 7,797
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10 Consolidated Statements of Comprehensive Income (Millions of yen) For the fiscal year ended August 31, 2025 For the fiscal year ended August 31, 2026 Profit 8,330 7,797 Other comprehensive income Valuation difference on available-for-sale securities (10) (7) Foreign currency translation adjustment (27) 350 Total other comprehensive income (37) 343 Comprehensive income 8,292 8,140 Comprehensive income attributable to owners of parent 8,292 8,140 Comprehensive income attributable to non-controlling interests - -
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11 (3) Consolidated Statements of Changes in Net Assets For the Fiscal Year Ended August 31, 2025 (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at beginning of period 3,202 3,201 22,818 (4,041) 25,180 Changes during period Dividends of surplus (2,151) (2,151) Profit attributable to owners of parent 8,330 8,330 Purchase of treasury stock (0) (0) Change in scope of consolidation - Disposal of treasury stock to stock granting trust 8 8 Net changes in items other than shareholders’ equity Total changes during period - - 6,178 7 6,186 Balance at end of period 3,202 3,201 28,996 (4,033) 31,367 Accumulated other comprehensive income Total net assets Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Balance at beginning of period 77 335 413 25,593 Changes during period Dividends of surplus (2,151) Profit attributable to owners of parent 8,330 Purchase of treasury stock (0) Change in scope of consolidation - Disposal of treasury stock to stock granting trust 8 Net changes in items other than shareholders’ equity (10) (27) (37) (37) Total changes during period (10) (27) (37) 6,148 Balance at end of period 66 308 375 31,742
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12 For the Fiscal Year Ended August 31, 2026 (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at beginning of period 3,202 3,201 28,996 (4,033) 31,367 Changes during period Dividends of surplus (2,505) (2,505) Profit attributable to owners of parent 7,797 7,797 Purchase of treasury stock (0) (0) Change in scope of consolidation (57) (57) Disposal of treasury stock to stock granting trust 30 30 Net changes in items other than shareholders’ equity Total changes during period - - 5,234 29 5,263 Balance at end of period 3,202 3,201 34,231 (4,004) 36,631 Accumulated other comprehensive income Total net assets Valuation difference on available-for-sale securities Foreign currency translation adjustment Total accumulated other comprehensive income Balance at beginning of period 66 308 375 31,742 Changes during period Dividends of surplus (2,505) Profit attributable to owners of parent 7,797 Purchase of treasury stock (0) Change in scope of consolidation (20) (20) (78) Disposal of treasury stock to stock granting trust 30 Net changes in items other than shareholders’ equity (7) 350 343 343 Total changes during period (7) 330 322 5,586 Balance at end of period 59 638 697 37,329
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13 (4) Consolidated Statements of Cash Flows (Millions of yen) For the fiscal year ended August 31, 2025 For the fiscal year ended August 31, 2026 Cash flows from operating activities Profit before income taxes 11,628 10,426 Depreciation 2,946 4,148 Impairment loss 221 741 Increase (decrease) in provision for bonuses (126) (26) Increase (decrease) in provision for share awards 102 (56) Increase (decrease) in provision for product warranties 72 30 Interest and dividend income (25) (23) Interest expenses 155 240 Foreign exchange losses (gains) (54) (268) Loss on retirement of non-current assets 282 276 Loss on store closings 27 26 Decrease (increase) in trade receivables (1,405) 10 Decrease (increase) in inventories (1,338) (1,767) Decrease (increase) in other assets (527) (571) Increase (decrease) in trade payables 455 831 Loss (gain) on sale of investment securities (442) 17 Loss (gain) on valuation of investment securities 405 22 Increase (decrease) in accrued consumption taxes (4) (408) Increase (decrease) in accounts payable - other 300 501 Increase (decrease) in accrued expenses 586 525 Increase (decrease) in other liabilities 477 202 Other 56 22 Subtotal 13,793 14,901 Interest and dividends received 39 23 Interest paid (140) (202) Income taxes paid (3,158) (3,824) Net cash provided by (used in) operating activities 10,533 10,898 Cash flows from investing activities Purchase of property, plant and equipment (2,006) (2,952) Purchase of intangible assets (3,431) (4,907) Purchase of investment securities (1,139) (20) Proceeds from sale of investment securities 467 192 Loan advances (192) (188) Collection of loans receivable 88 97 Payments of leasehold and guarantee deposits (1,831) (621) Proceeds from refund of leasehold and guarantee deposits 179 255 Net cash provided by (used in) investing activities (7,864) (8,145)
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14 (Millions of yen) For the fiscal year ended August 31, 2025 For the fiscal year ended August 31, 2026 Cash flows from financing activities Net increase (decrease) in short-term borrowings 3,697 (242) Repayments of long-term borrowings (27) (10) Redemption of convertible bond-type bonds with share acquisition rights (10,000) - Repayments of installment payables (696) (1,006) Repayments of lease obligations (249) (165) Purchase of treasury stock (0) (0) Proceeds from sale of treasury stock - 7 Dividends paid (2,149) (2,503) Net cash provided by (used in) financing activities (9,425) (3,922) Effect of exchange rate change on cash and cash equivalents 60 255 Net increase (decrease) in cash and cash equivalents (6,695) (913) Cash and cash equivalents at beginning of period 18,673 11,977 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation - 273 Cash and cash equivalents at end of period 11,977 11,337
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15 (5) Notes to Consolidated Financial Statements (Notes on Going Concern Assumption) Not applicable. (Segment Information) I. General information of reportable segments 1. Method of classifying reportable segments The Group’s reportable segments are components for which separate financial information is available and whose operating results are regularly reviewed by the Board of Directors to decide on the allocation of management resources and assess their performance. The Group consists of segments by business based on operating companies and regions under the Company which is the holding company that controls the entire Group. The Group has two reportable segments: “domestic eyewear business” and “overseas eyewear business.” 2. Type of products and services under reportable segments The “domestic eyewear business” and “overseas eyewear business” engage in sales mainly of eyewear and each subsidiary is in charge of sales of eyewear via stores, online, and other channels. II. Measurement method of net sales, profit (loss), assets, and other items by reportable segment The accounting policies of reportable segments are generally consistent with those followed in the preparation of the consolidated financial statements. Segment profit represents operating profit for the segment. Intersegment sales and transfers are determined primarily based on prevailing market prices.
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16 III. Information about net sales, profit (loss), assets and other items, and information on disaggregation of revenue by reportable segment For the Fiscal Year Ended August 31, 2025 (Millions of yen) Reportable segment Adjustments (Note 1) Consolidated (Note 2) Domestic eyewear business Overseas eyewear business Total Net sales Revenue from contracts with customers 76,659 20,556 97,215 - 97,215 Sales to outside customers 76,659 20,556 97,215 - 97,215 Intersegment sales or transfers 1,269 91 1,361 (1,361) - Total 77,928 20,647 98,576 (1,361) 97,215 Segment profit 11,348 745 12,093 - 12,093 Segment assets 38,275 13,401 51,677 6,189 57,866 Other: Depreciation 2,145 801 2,946 - 2,946 Increase in property, plant and equipment and intangible assets 6,592 1,273 7,866 - 7,866 (Notes) 1. The adjustment of segment assets of ¥6,189 million mainly includes elimination of investments and capital of ¥(5,120) million, elimination of intercompany receivables and payables of ¥(7,073) million, adjustments to allowance for doubtful accounts of ¥1,309 million, and corporate assets, etc. that are not attributable to any reportable segments of ¥17,357 million. 2. Segment profit is reconciled to operating profit in the consolidated statements of income. For the Fiscal Year Ended August 31, 2026 (Millions of yen) Reportable segment Adjustments (Note 1) Consolidated (Note 2) Domestic eyewear business Overseas eyewear business Total Net sales Revenue from contracts with customers 84,707 26,512 111,220 - 111,220 Sales to outside customers 84,707 26,512 111,220 - 111,220 Intersegment sales or transfers 1,872 84 1,956 (1,956) - Total 86,580 26,597 113,177 (1,956) 111,220 Segment profit 9,235 2,219 11,454 - 11,454 Segment assets 41,992 16,886 58,878 9,531 68,409 Other: Depreciation 3,134 1,013 4,148 - 4,148 Increase in property, plant and equipment and intangible assets 10,849 1,888 12,737 - 12,737 (Notes) 1. The adjustment of segment assets of ¥9,531 million mainly includes elimination of investments and capital of ¥(6,636) million, elimination of intercompany receivables and payables of ¥(5,816) million, adjustments to allowance for doubtful accounts of ¥1,983 million, and corporate assets, etc. that are
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17 not attributable to any reportable segments of ¥20,348 million. 2. Segment profit is reconciled to operating profit in the consolidated statements of income. IV. Information about loss on impairment of non-current assets and goodwill by reportable segment For the Fiscal Year Ended August 31, 2025 (Significant loss on impairment of non-current assets) Impairment loss amounted to ¥128 million in the “domestic eyewear business” segment and ¥92 million in the “overseas eyewear business” segment. (Significant changes in goodwill) Not applicable. (Significant gain on negative goodwill) Not applicable. For the Fiscal Year Ended August 31, 2026 (Significant loss on impairment of non-current assets) Impairment loss amounted to ¥409 million in the “domestic eyewear business” segment and ¥332 million in the “overseas eyewear business” segment. (Significant changes in goodwill) Not applicable. (Significant gain on negative goodwill) Not applicable.
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18 (Per Share Information) Item For the fiscal year ended August 31, 2025 For the fiscal year ended August 31, 2026 Net assets per share ¥1,359.91 ¥1,598.81 Earnings per share ¥356.89 ¥334.00 (Notes) 1. In calculating net assets per share, the Company's shares held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets of the “Stock Benefit Trust (J-ESOP)” are included in the treasury stock to be deducted from the total number of issued shares at the end of the period. They are also included in the treasury stock to be deducted in the calculation of the average number of shares during the period for calculating basic earnings per share. 2. Diluted earnings per share is not stated as there are no dilutive shares outstanding. 3. The basis for calculating basic earnings per share is as follows. Item For the fiscal year ended August 31, 2025 For the fiscal year ended August 31, 2026 Earnings per share ¥356.89 ¥334.00 Profit attributable to owners of parent (millions of yen) 8,330 7,797 Profit not attributable to common shareholders (millions of yen) - - Profit attributable to owners of parent related to common stock (millions of yen) 8,330 7,797 Weighted-average number of shares of common stock outstanding during the year (shares) 23,341,062 23,346,249 4. Net assets per share is calculated as follows. Item End of the previous fiscal year (August 31, 2025) End of the fiscal year under review (August 31, 2026) Net assets (millions of yen) 31,742 37,329 Amount deducted from net assets (millions of yen) - - Net assets at the year-end related to common stock (millions of yen) 31,742 37,329 Number of shares of common stock at the year end used for the calculation of net assets per share (shares) 23,341,621 23,348,136 (Significant Subsequent Events) Not applicable.
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19 4. Other Notes (1) Changes of Officers (i) Changes of Representative Directors Not applicable. (ii) Changes of Other Officers This information will be disclosed once the disclosure details are finalized.