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1 /26 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. 1 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Sep. 25, 2026 ASAHI CO., LTD. TSE Prime Market (Securities code: 3333) EXPLANATORY MATERIAL ON FINANCIAL RESULTS FOR THE SIX MONTHS ENDED AUG. 20, 2026
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2 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. INDEX 01 Financial Results for the Six Months Ended Aug. 20, 2026 02 Plan for the Fiscal Year Ending Feb. 20, 2027
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3 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. R e c o g n i t i o n o f t h e B u s i n e s s E n v i r o n m e n t a n d I n i t i a t i v e s u n d e r M e d i u m- Te r m M a n a g e m e n t P l a n "VISION 2028" Macro environment • Decline in consumer sentiment caused by rising prices Market changes • Growing demand for switching to electric-assist bicycles with enhanced performance features and high unit prices • Lengthening of replacement cycle against a backdrop of growing interest in saving money Recognition of Issues • A business model that is not dependent solely on new bicycle sales or the opening of new stores • CRM and branding to strengthen our customer base VISION 2028 Theme • Expanding into new bicycle service domains and providing platforms for e-commerce, logistics, etc. • Building a circular business that supports customers through their long-term bicycle life Strategies responding to change • Deepening OMO*1, Strengthening CRM*2 • Building a circular business including reuse, Expanding strategic partners *1 OMO is the abbreviation for Online Merges with Offline. OMO is an approach that merges e-commerce and stores to offer customer experience value, enabling customers to obtain information, shop, and use such channels. *2 CRM is the abbreviation for Customer Relationship Management. We are strengthening our customer relations by providing information via the official Cycle Base Asahi smartphone application to make their bicycle life more convenient and comfortable.
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4 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Changes in Net Sales 41,725 43,763 46,420 45,900 46,230 2.6％ Compound annual growth rate (CAGR) over the past four years Net sales: millions of yen Six months ended Aug. 20, 2022 Six months ended Aug. 20, 2023 Six months ended Aug. 20, 2024 Six months ended Aug. 20, 2025 Six months ended Aug. 20, 2026
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5 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. C h a n g e s ( Y / Y ) i n N e t S a l e s , N u m b e r o f C u s t o m e r s , a n d S a l e s p e r C u s t o m e r o f E x i s t i n g S t o r e s 102.7% 103.0% 105.1% 97.4% 99.4% 98.8% 98.4% 99.9% 96.3% 98.0% 104.0% 104.6% 105.2% 101.2% 101.4% 94% 96% 98% 100% 102% 104% 106% Net sales Number of customers Sales per customer Six months ended Aug. 20, 2022 Six months ended Aug. 20, 2023 Six months ended Aug. 20, 2024 Six months ended Aug. 20, 2025 Six months ended Aug. 20, 2026 Number of customers Sales per customer Net Sales
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6 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. (Millions of yen, %) Six Months Ended Aug. 20, 2025 Results Six Months Ended Aug. 20, 2026 Results Amount Ratio to net sales Amount Ratio to net sales Y/Y change Factors Net sales 45,900 100.0 46,230 100.0 100.7 • Strong sales of electric-assist bicycles and children's bicycles • Increase sales of parts, repair and maintenance services • Impact of price adjustments Gross profit 21,486 46.8 21,837 47.2 101.6 Operating profit 3,756 8.2 3,231 7.0 86.0 • Wage increases, upfront investment in employee training, and increased operating costs associated with opening new stores Ordinary profit 3,923 8.5 3,327 7.2 84.8 Profit 2,630 5.7 2,193 4.7 83.4 Financial Results for the Six Months Ended Aug. 20, 2026
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7 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Net Sales by Item (Millions of yen, %) Six Months Ended Aug. 20, 2025 Results Six Months Ended Aug. 20, 2026 Results Amount Ratio to net sales Amount Ratio to net sales Y/Y change Net sales 45,900 100.0 46,230 100.0 100.7 Stores / E -commerce 44,452 96.8 44,662 96.6 100.5 New bicycle sales 32,316 70.4 32,009 69.2 99.0 Electric-assist bicycles 13,680 29.8 14,124 30.6 103.2 Parts / services 12,135 26.4 12,653 27.4 104.3 Peripheral businesses 1,448 3.2 1,568 3.4 108.3
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8 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. SG&A Expenses and Capital Expenditures Six Months Ended Aug. 20, 2025 Results Six Months Ended Aug. 20, 2026 Results (Millions of yen, %) Amount Ratio to net sales Amount Ratio to net sales Y/Y change Factors SG&A expenses 17,730 38.6 18,605 40.2 104.9 Personnel expenses 8,338 18.2 8,940 19.3 107.2 • Due to wage increases and business expansion Transport and storage expenses 1,234 2.7 1,265 2.7 102.5 Depreciation 880 1.9 904 2.0 102.7 • Increase in the number of stores Capital expenditures 1,100 832 75.6 • Controlled investment in new store openings
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9 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. 3,756 ▲ 875 3,231 ＋154 ＋196 Analysis of Changes in Operating Profit Operating profit : millions of yen • Strong sales of electric- assist bicycles and children's bicycles • Increase sales of parts, repair and maintenance services • Impact of price adjustments • Cost reduction efforts • Improvement driven by a favorable product mix • Wage increase • Increase in fixed costs due to an increase in the number of stores Six months ended Aug. 20, 2025 Change in sales Impact of changes in cost and product mix Changes in SG&A expenses Six Months Ended Aug. 20, 2026 ◼ Increase ◼ Decrease ◼ Total
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10 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. As of Feb. 20, 2026 Number of stores opened Number of stores closed As of Aug. 20, 2026 Number of stores * 1 557 +5 ▲2 *2 560 Of which, urban stores 14 +1 0 15 Store Openings and Closures *1 Includes 19 franchise stores (7 stores in Osaka, 1 store in Hyogo, 4 stores in Kyoto, 4 stores in Mie, and 3 stores in Kagoshima) *2 Chofu and Itoshima stores (expiration of lease contracts) 6/12 OPEN Kamiikedai Store 7/17 OPEN Sekime Store 7/17 OPEN Hamadera Store
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11 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Financial and Capital Strategy Deepening OMO Ⅰ Ⅱ Ⅲ Growth Strategy Business Strategy Strengthening CRM Ⅱ Expanding peripheral businesses Ⅲ Expanding strategic partners Ⅳ Reinforcing our business foundations Ⅴ Human capital management Ⅵ Sustainability Management Ⅶ Efforts to Centralize Inventory Information for Stores, E - commerce, and Warehouses Strengthening the production (repair) system at the purchase and support center for reused products Started business alliances with three companies to expand strategic partnerships Strengthening the customer base through customer -centric product planning and lineup expansion Improvement of employee treatment through wage increases, certification as a Health & Productivity Management Outstanding Organization 2026 Promoting circular business utilizing the "Asahi Business Platform" Balancing strategic investments for future growth and enhancing shareholder value Establishing ongoing customer engagement by promoting the Asahi Maintenance Pack and car wash services M a i n I n i t i a t i v e s u n d e r M e d i u m- Te r m M a n a g e m e n t P l a n " V I S I O N 2 0 2 8 " ( F i r s t H a l f o f F i s c a l Y e a r E n d i n g F e b r u a r y 2 0 2 7 )
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12 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Asahi's competitive advantage 557 stores nationwide, Asahi membership 5.23 million members ※ Nationwide logistics network (Efficient Logistics and Inventory optimization) Specialized human resources (Technical expertise and customer-centric service) Governance framework for sustainable growth ※ As of Feb. 20, 2026 Customer Circulation cycle 循環 IT infrastr uctureCircular Logistics network Quality and environmental management Strengths Human resources and technical capabilities OMO Asahi brand Customer Base and CRM SPA value chain SPA Value chain CollectionPlanning and design Development and procurement Logistics /store network Reuse/ new bicycle sales Service Asahi’s strategic partners Asahi’s strategic partners Bicycle owned in Japan 60 Target New bicycle/ Secondhand bicycle purchase Repair and inspection Parts sales Bicycle sharing Bicycle wash Event Reusable bicycle buybackAsahi Business Platform Expand customer base Growth of the Asahi membership base Fostering long-term customer relationships Maximize customer LTV Supporting customers across the entire customer lifecycle Contribute to a low-carbon society and a circular economy Developing the reuse market Enhance our corporate value Enhancing revenue, profitability, and ROE Decarboni - zation Growing demand for low-carbon mobility Health promotion Providing opportunities for exercise Regional transportation Addressing local mobility challenges Resource circulation Reuse Business Promotion Human capital Financial capital Social capital Intellectual capital M a n u f a c t u r i n g capital Natural capital 12 A C i r c u l a r a n d R e c u r r i n g R e v e n u e G r o w t h M o d e l E n a b l e d b y t h e A s a h i B u s i n e s s P l a t f o r m Starting with the social value of bicycles, we will use the Asahi Business Platform to develop a circular business model connecting sales through reuse and create a virtuous cycle of social and corporate value together with our strategic partners. Bicycles for vibrant lives—everywhere together for a lifetime Input The Social Value of Bicycles Business Model (Asahi's Circular Growth Model) Value Creation Asahi’s strategic partners Management foundation million units
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13 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. S t r e n g t h e n i n g t h e A s a h i S u p p o r t C e n t e r : T h e E n g i n e o f O u r R e u s e B u s i n e s s Collection Appraisal Purchase Repair Information provision Reuse value chain Sales OMO Store infrastructure Safety Quality Enhancing the repair capacity of the Asahi Support Center in response to growing demand Engine of the business Place with functions and human resources playing active roles in business - Repair of bicycles to be reused (maintenance for resale) - Repair and inspections of bicycle sharing - Assembly of bicycles to be used for bicycle sharing services and bicycles sold via e-commerce - Disassembly of bicycles to be disposed of and collected (recycling) Production, repair, inspection, and new bicycle assembly functions A s a h i S u p p o r t C e n t e r Appraisal and purchasing by certified bicycle technicians 2+ point inspection, maintenance, and professional cleaning Unlimited free inspections for one year after purchase Asahi Reuse | Three Key Advantages Cleaning Parts replacement Damage inspection & documentation Safety Check Asahi's logistics infrastructure
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14 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. A n E x a m p l e o f a R e c u r r i n g R e v e n u e B u s i n e s s M o d e l B u i l d i n g C o n t i n u o u s C u s t o m e r E n g a g e m e n t T h r o u g h B i c y c l e W a s h i n g S e r v i c e s Number of bicycle washing service orders 4.5 × YoY By encouraging store visits through our bicycle washing service, we establish ongoing customer touchpoints and long-term customer engagement. By creating opportunities for customers to visit our stores, we aim to enhance LTV and capture future replacement demand. ※As of Sep. 25, 2026.
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15 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. C u s t o m e r- C e n t r i c P r o d u c t P l a n n i n g a n d E x p a n d e d L i n e u p t o S u p p o r t D i v e r s e C y c l i n g L i f e s t y l e s ENERSYS compact モデルチェンジ Electric-assist bicycle combining sporty performance with everyday practicality ENERSYS compact Model updates Junior mountain bike series that inspires children's adventurous spirit J24 / J22 / J20 GRIND9.0 DISC GRIND8.0 Mountain bike with the capability to handle not only urban riding but also trail adventures City-friendly mountain bike designed for smaller riders, including women and juniors, with enhanced accessibility and ease of use ENERSYS CITY Model updates Model updates Model updates New models Compact and easy-to-handle electric-assist bicycle designed to support urban daily mobility SETTER7.0 New models A classical cross bike for adults, blending nostalgic charm with refined quality
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16 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. INDEX 01 Financial Results for the Six Months Ended Aug. 20, 2026 02 Plan for the Fiscal Year Ending Feb. 20, 2027
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17 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Plan for the Fiscal Year Ending Feb. 20, 2027 (Millions of yen, %) FY ended Feb. 20, 2026 Results FY ending Feb. 20, 2027 Plan Amount Ratio to net sales Amount Ratio to net sales Y/Y change Factors Net sales 81,374 100.0 86,278 100.0 106.0 • Strengthen links between OMO and CRM • Increase sales of parts, repair and maintenance services • Price adjustments • Activities to reduce costs Gross profit 38,791 47.7 41,627 48.2 107.3 Operating profit 3,937 4.8 4,300 5.0 109.2 • Improve productivity • Enhance digital and IT platforms Ordinary profit 4,169 5.1 4,440 5.1 106.5 Profit 2,268 2.8 2,730 3.2 120.3
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18 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Net Sales by Item (Millions of yen, %) FY ended Feb. 20, 2026 Results FY ending Feb. 20, 2027 Plan Amount Ratio to net sales Amount Ratio to net sales Y/Y change Net sales 81,374 100.0 86,278 100.0 106.0 Stores/E -commerce 78,555 96.5 82,917 96.1 105.6 New bicycle sales 55,561 68.3 57,657 66.8 103.8 Electric-assist bicycles 24,051 29.6 25,423 29.5 105.7 Parts and services 22,993 28.3 25,260 29.3 109.9 Peripheral businesses 2,819 3.5 3,361 3.9 119.2 Market share* 25% 26% * Our own estimate: Market share = Asahi bicycles sold ÷ bicycles sold on domestic market (sources: Trade Statistics of Japan; Current Survey of Production, METI)
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19 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. SG&A Expenses and Capital Expenditures FY ended Feb. 20, 2026 Results FY ending Feb. 20, 2027 Plan (Millions of yen, %) Amount Ratio to net sales Amount Ratio to net sales Y/Y change Factors SG&A expenses 34,853 42.8 37,327 43.3 107.1 Personnel expenses 16,673 20.5 17,859 20.7 107.1 • Increase wages, enhance training of store staff • Optimize personnel due to increased service revenue Transport and storage expenses 2,174 2.7 2,484 2.9 114.2 • Increase in transport expenses due to increased number of bicycles sold Depreciation 1,840 2.3 1,991 2.3 108.2 • Start system operation, open new stores Capital expenditures 2,254 2,554 113.3 • Growth foundations for stores and systems
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20 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. ▲ 2,473 4,3003,937 ＋1,500 ＋1,335 Analysis of Changes in Operating Profit Operating profit : millions of yen ◼ Increase ◼ Decrease ◼ Total FY ended Feb. 20, 2026 operating profit Impact of prices, costs, and exchange rates Impact of Changes in Product Mix Changes in SG&A expenses FY ending Feb. 20, 2027 operating profit (plan) • Price adjustments • Cost reduction • Adverse exchange rate movements • Increase in repairs and parts • Wage increase • Increase in fixed costs due to new store openings • Replacement of the core systems
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21 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. Investment Plan Accelerate investment in foundations that support future growth (digital and IT platforms, logistics infrastructure, stores) ▍Breakdown of major capital investments * Includes 18 franchise stores (as of Feb. 20, 2026) (6 stores in Osaka, 1 store in Hyogo, 4 stores in Kyoto, 4 stores in Mie, and 3 stores in Kagoshima) DX, infrastructure development, system investment (logistics, CRM) Investment in growth foundations Renewal of 16 stores per year and relocation of 1 store per year for revitalization of existing stores Investment in maintenance and renewal 10 new store openings per year, including 2 urban stores Investment in increasing profits As of Feb. 21, 2026 Number of stores to open As of Feb. 20, 2027 Number of stores* 557 +10 567 Of which, urban stores 14 +2 16
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22 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved.28yen 45yen 50yen 50yen 50yen Stock price and capital cost conscious management • Dividend per share will be 50 yen (plan) • Continue positive investment in foundations supporting profitability and future growth • Maintain a stable shareholder return policy with a basic target of a dividend payout ratio of 35% or more and a DOE of 3% Dividend per share FY ended Feb. 20, 2023 FY ended Feb. 20, 2024 FY ended Feb. 20, 2025 FY ended Feb. 20, 2026 FY ending Feb. 20, 2027 (Plan)
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23 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved. • The financial results forecast and other forward-looking statements contained in this document are based on information currently available to the Company and certain assumptions that are deemed reasonable, and do not constitute a promise that the Company will achieve them. Actual results may differ materially from these statements due to various factors. • The reader should note that internal factors in the Company and external factors such as changes in the business environment surrounding the Company may have a direct or indirect impact on the Company’s performance and that the forecasts contained in this document may change. • Please refrain from copying or reproducing this document. Disclaimer
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24 Copyright © 2026 ASAHI CO.,LTD. All Rights Reserved.