Interim report
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Non-consolidated Financial Results for the Six Months Ended August 20, 2026 [Japanese GAAP] September 25, 2026 Company name: ASAHI CO., LTD. Stock exchange listing: Tokyo Stock Exchange Code number: 3333 URL: https://www.cb-asahi.co.jp/ Representative: Yoshifumi Shimoda, President and Representative Director Contact: Takeshi Soda, Executive Officer Phone: +81-6-6923-7900 Scheduled date of filing semi-annual securities report: September 30, 2026 Scheduled date of commencing dividend payments: November 11, 2026 Availability of supplementary explanatory materials on financial results: Available Schedule of financial results briefing session: Scheduled (for analysts and institutional investors) (Amounts of less than one million yen are rounded down.) 1. Non-consolidated Financial Results for the Six Months Ended August 20, 2026 (February 21, 2026– August 20, 2026) (1) Non-consolidated Operating Results (Cumulative) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit Six months ended Million yen % Million yen % Million yen % Million yen % August 20, 2026 46,230 0.7 3,231 (14.0) 3,327 (15.2) 2,193 (16.6) August 20, 2025 45,900 (1.1) 3,756 (21.1) 3,923 (19.0) 2,630 (19.4) Basic earnings per share Diluted earnings per share Six months ended Yen Yen August 20, 2026 84.22 – August 20, 2025 101.01 – (2) Non-consolidated Financial Position Total assets Net assets Equity ratio Million yen Million yen % As of August 20, 2026 56,634 41,644 73.5 As of February 20, 2026 56,077 40,159 71.6 (Reference) Equity: As of August 20, 2026: ¥41,644 million As of February 20, 2026: ¥40,159 million Disclaimer: This document is an English translation of the original document in Japanese and has been prepared solely for reference purposes. In the event of any discrepancy between this English translation and the original in Japanese, the original shall prevail in all respects.
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2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended February 20, 2026 – 25.00 – 25.00 50.00 Fiscal year ending February 20, 2027 – 25.00 Fiscal year ending February 20, 2027 (Forecast) – 25.00 50.00 (Note) Revisions to the most recently announced dividend forecast: None 3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2027 (February 21, 2026–February 20, 2027) (% indicates changes from the previous corresponding period.) Net sales Operating profit Ordinary profit Profit Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Full year 86,278 6.0 4,300 9.2 4,440 6.5 2,730 20.3 104.83 (Note) Revisions to the most recently announced financial results forecast: None
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* Notes: (1) Adoption of special accounting methods for the preparation of semi-annual non-consolidated financial statements: None (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 1) above: 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 shares): August 20, 2026: 26,240,800 shares February 20, 2026: 26,240,800 shares 2) Total number of treasury shares at the end of the period: August 20, 2026: 197,449 shares February 20, 2026: 198,881 shares 3) Average number of shares outstanding during the period: Six months ended August 20, 2026: 26,042,441 shares Six months ended August 20, 2025: 26,040,765 shares (Note) The Company has adopted the Executive Remuneration BIP Trust since June 19, 2014. The number of treasury shares at the end of the period includes the Company’s shares held by the trust (196,930 shares as of August 20, 2026, and 198,370 shares as of February 20, 2026). In addition, the Company’s shares held by the trust are included in the treasury shares to be deducted in the calculation of the average number of shares outstanding during the period (197,845 shares for the six months ended August 20, 2026, and 199,524 shares for the six months ended August 20, 2025). * These semi-annual non-consolidated financial results are outside the scope of review by certified public accountants or an audit firm. * Explanation of the proper use of financial results forecast and other notes (Cautions regarding forward-looking statements, etc.) 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. For the assumptions on which the financial results forecast is based, cautions on the use of the forecast, and other information, please refer to 1. Overview of Operating Results, etc., (3) Explanation of Financial Results Forecast and Other Forward-looking Information on page 4 of the Attachment. (Access to supplementary explanatory materials on financial results and details of financial results briefing session) The Company plans to hold a financial results briefing session for institutional investors and analysts today. The materials for the financial results briefing session to be used are disclosed on TDnet today and are also available on the Company’s website.
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-1- Table of Contents - Attachment 1. Overview of Operating Results, etc. ....................................................................................................................... 2 (1) Overview of Operating Results for the Semi-annual Period under Review ....................................................... 2 (2) Overview of Financial Position as of the End of the Semi-annual Period under Review .................................. 2 (3) Explanation of Financial Results Forecast and Other Forward-looking Information ........................................ 4 2. Semi-annual Non-consolidated Financial Statements and Principal Notes ............................................................ 5 (1) Semi-annual Non-consolidated Balance Sheets ................................................................................................. 5 (2) Semi-annual Non-consolidated Statements of Income ...................................................................................... 6 (3) Semi-annual Non-consolidated Statements of Cash Flows ................................................................................ 7 (4) Notes to the Semi-annual Non-consolidated Financial Statements .................................................................... 8 (Notes on segment information, etc.) ................................................................................................................. 8 (Notes in case of significant changes in shareholders’ equity)........................................................................... 8 (Notes on going concern assumption) ................................................................................................................ 8
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-2- 1. Overview of Operating Results, etc. (1) Overview of Operating Results for the Semi-annual Period under Review The Japanese economy during the six months ended August 20, 2026 called for careful attention to downside risks to business conditions, including an increase in the burden on household finances due to a prolonged rise in prices, the impact of the situation in the Middle East on resource prices, etc., and fluctuations in the financial and capital markets, although the employment and income environment was on a gradual recovery trend. In this situation, consumers became even more budget-conscious, and continued to manage their spending carefully. In the bicycle retail business, demand for replacement of old bicycles for new ones remained low against the backdrop of a longer replacement cycle resulting from a switch to higher -priced enhanced-performance products, such as electric -assist bicycles, and a slump in consumers’ willingness to spend due to high prices. Meanwhile, the trend of using the same bicycle for a long time while repairing and maintaining it strengthened further. Under a basic policy aimed at both “achieving a sustainable society” and “realizing sustainable growth for the Company” the Company’s medium-term management plan VISION 2028, covering the period from the fiscal year ending February 20, 2027 to the fiscal year ending February 20, 2029, sets out as key strategies refining the OMO platform(Note 1), enhancing CRM (Note 2), extending adjacent business domains, and expanding trade areas through closer collaboration with strategic partners. During the six months ended August 20, 2026, the Company worked to build a circular business model that does not rely solely on new bicycle sales, by promoting the creation of a platform on which various services are interlinked and strengthening its approach toward domestic bicycle ownership of 60 million units(Note 3). Additionally, against the backdrop of expanding reuse demand, the Company worked on strengthening its purchasing capabilities and enhancing its commercialization system by utilizing support centers. The Company also worked to create an organization where diverse talent can thrive and to develop talent equipped with highly specialized expertise. Regarding store openings and closures, the Company opened two new stores in the Kanto region, one new store in the Chubu region and two new stores in the Kinki region, while closing one store in the Kanto region and one store in the Kyushu region due to the expiration of its agreement. As a result, the total number of stores at the end of the semi -annual period under review was 560, consisting of 541 directly operated stores and 19 franchise stores. As a result of the above activities, net sales for the six months ended August 20, 2026 were ¥46,230,797 thousand (up 0.7% year on year). Operating profit was ¥3,231,397 thousand (down 14.0% year on year), ordinary profit was ¥3,327,580 thousand (down 15.2% year on year), and profit was ¥2,193,345 thousand (down 16.6% year on year). Since the Company has only one segment of the bicycle business, information by segment is not provided. (Notes) 1. OMO (Online Merges with Offline) is a marketing approach that integrates e -commerce and retail stores to provide customers with experiential value at each stage from gathering information to purchasing and using the products. 2. CRM (Customer Relationship Management) is an initiative for strengthening our customer relations by providing information via the Cycle Base Asahi official app to make their bicycle life more convenient and comfortable. 3. Estimated by the Company based on the Japan Bicycle Promotion Institute, “Report on 2021 Survey of Bicycle Ownership and Usage” and other sources. (2) Overview of Financial Position as of the End of the Semi-annual Period under Review 1) Status of assets, liabilities, and net assets (Assets) Current assets at the end of the semi -annual period under review were ¥33,457,035 thousand, an increase of ¥776,602 thousand (2.4%) from the end of the previous fiscal year. This was due mainly to an increase in cash and deposits of ¥3,003,980 thousand, wh ich was partially offset by decreases in merchandise of ¥1,881,916
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-3- thousand and goods in transit of ¥316,043 thousand. Non-current assets were ¥23,177,786 thousand, a decrease of ¥219,653 thousand (0.9%) from the end of the previous fiscal year. This was due mainly to decreases in guarantee deposits of ¥75,418 thousand, buildings of ¥65,943 thousand and software of ¥57,944 thousand, which were partially offset by an increase in deferred tax assets of ¥74,489 thousand. As a result, total assets were ¥56,634,821 thousand, an increase of ¥556,948 thousand (1.0%) from the end of the previous fiscal year. (Liabilities) Current liabilities at the end of the semi-annual period under review were ¥13,719,765 thousand, a decrease of ¥949,436 thousand (6.5%) from the end of the previous fiscal year. This was due mainly to a decrease in accounts payable - trade of ¥2,211,723 th ousand, which was partially offset by increases in income taxes payable of ¥767,096 thousand and accrued expenses of ¥323,530 thousand. Non -current liabilities were ¥1,270,566 thousand, an increase of ¥20,939 thousand (1.7%) from the end of the previous fiscal year. This was due mainly to increases in provision for share-based payments of ¥4,987 thousand and asset retirement obligations of ¥2,363 thousand. As a result, total liabilities were ¥14,990,331 thousand, a decrease of ¥928,496 thousand (5.8%) from the end of the previous fiscal year. (Net assets) Total net assets at the end of the semi -annual period under review were ¥41,644,489 thousand, an increase of ¥1,485,445 thousand (3.7%) from the end of the previous fiscal year. This was due mainly to an increase of ¥2,193,345 thousand due to the posting o f profit, which was partially offset by a decrease due to dividends of surplus of ¥656,007 thousand. As a result, the equity ratio stood at 73.5% (71.6% at the end of the previous fiscal year). 2) Status of cash flows Cash and cash equivalents (hereinafter referred to as “net cash”) at the end of the semi -annual period under review increased by ¥3,001,033 thousand from the end of the previous fiscal year (an increase of ¥5,058,632 thousand in the same period of the previous fiscal year) to ¥15,271,009 thousand. The details for cash flows in each area of activity and their contributing factors for the six months ended August 20, 2026 are as follows: (Cash flows from operating activities) Net cash provided by operating activities was ¥4,599,429 thousand (¥6,800,014 thousand provided for the same period of the previous fiscal year). The principal cash inflow factors included profit before income taxes of ¥3,280,530 thousand, a decrease in inventories of ¥2,228,866 thousand, and depreciation of ¥908,541 thousand. The principal cash outflow factors included a decrease in trade payables of ¥2,211,723 thousand and income taxes paid of ¥401,614 thousand. (Cash flows from investing activities) Net cash used in investing activities was ¥942,708 thousand (¥1,085,151 thousand used for the same period of the previous fiscal year). The principal cash outflow factors included purchase of property, plant and equipment of ¥828,038 thousand for new store openings, purchase of intangible assets of ¥97,778 thousand, and payments of guarantee deposits of ¥24,593 thousand.
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-4- (Cash flows from financing activities) Net cash used in financing activities was ¥655,687 thousand (¥656,230 thousand used for the same period of the previous fiscal year). The cash outflow factors included dividends paid of ¥655,677 thousand and purchase of treasury shares of ¥9 thousand. (3) Explanation of Financial Results Forecast and Other Forward-looking Information Our financial results forecast remains unchanged from the full year forecast published in the “Non-consolidated Financial Results for the Fiscal Year Ended February 20, 2026 [Japanese GAAP]” dated April 3, 2026.
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-5- 2. Semi-annual Non-consolidated Financial Statements and Principal Notes (1) Semi-annual Non-consolidated Balance Sheets (Thousands of yen) As of February 20, 2026 As of August 20, 2026 Assets Current assets Cash and deposits 12,302,700 15,306,680 Accounts receivable - trade 3,944,117 4,011,646 Merchandise 13,986,315 12,104,398 Goods in transit 1,454,843 1,138,800 Supplies 198,841 167,934 Other 794,935 728,894 Allowance for doubtful accounts (1,320) (1,320) Total current assets 32,680,432 33,457,035 Non-current assets Property, plant and equipment Buildings, net 9,809,710 9,743,766 Land 3,163,012 3,163,012 Other, net 1,787,946 1,763,484 Total property, plant and equipment 14,760,668 14,670,263 Intangible assets 832,788 788,907 Investments and other assets Guarantee deposits 5,244,685 5,169,266 Construction assistance fund receivables 559,280 510,883 Other 2,008,783 2,048,028 Allowance for doubtful accounts (8,767) (9,564) Total investments and other assets 7,803,982 7,718,614 Total non-current assets 23,397,439 23,177,786 Total assets 56,077,872 56,634,821 Liabilities Current liabilities Accounts payable - trade 5,038,013 2,826,290 Income taxes payable 559,605 1,326,701 Contract liabilities 4,127,384 4,229,204 Provision for bonuses 1,090,963 1,181,341 Other 3,853,234 4,156,226 Total current liabilities 14,669,201 13,719,765 Non-current liabilities Provision for share-based payments 176,400 181,387 Asset retirement obligations 830,917 833,281 Other 242,309 255,897 Total non-current liabilities 1,249,626 1,270,566 Total liabilities 15,918,828 14,990,331 Net assets Shareholders’ equity Share capital 2,061,356 2,061,356 Capital surplus 2,165,171 2,165,171 Retained earnings 36,155,000 37,692,338 Treasury shares (284,566) (282,514) Total shareholders’ equity 40,096,961 41,636,351 Valuation and translation adjustments Deferred gains or losses on hedges 62,082 8,138 Total valuation and translation adjustments 62,082 8,138 Total net assets 40,159,044 41,644,489 Total liabilities and net assets 56,077,872 56,634,821
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-6- (2) Semi-annual Non-consolidated Statements of Income (Thousands of yen) Six months ended August 20, 2025 Six months ended August 20, 2026 Net sales 45,900,919 46,230,797 Cost of sales 24,414,150 24,393,434 Gross profit 21,486,768 21,837,363 Selling, general and administrative expenses 17,730,168 18,605,966 Operating profit 3,756,599 3,231,397 Non-operating income Interest income 19,014 39,663 Rental income from buildings 53,477 54,331 Foreign exchange gains 37,814 – Commission income 52,606 24,394 Other 60,817 96,829 Total non-operating income 223,730 215,219 Non-operating expenses Foreign exchange losses – 65,604 Rental costs on real estate 41,902 42,238 Other 14,857 11,192 Total non-operating expenses 56,759 119,035 Ordinary profit 3,923,570 3,327,580 Extraordinary losses Loss on sale and retirement of non-current assets 4,702 6,615 Impairment losses – 39,597 Loss on disaster 25,051 837 Total extraordinary losses 29,753 47,049 Profit before income taxes 3,893,816 3,280,530 Income taxes - current 1,258,056 1,138,000 Income taxes - deferred 5,378 (50,814) Total income taxes 1,263,435 1,087,185 Profit 2,630,381 2,193,345
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-7- (3) Semi-annual Non-consolidated Statements of Cash Flows (Thousands of yen) Six months ended August 20, 2025 Six months ended August 20, 2026 Cash flows from operating activities Profit before income taxes 3,893,816 3,280,530 Depreciation 884,987 908,541 Impairment losses – 39,597 Amortization of long-term prepaid expenses 19,520 23,131 The amount of rent offset of construction assistance fund receivables 146,525 155,968 Increase (decrease) in allowance for doubtful accounts (463) 797 Increase (decrease) in provision for bonuses 70,386 90,377 Increase (decrease) in provision for share-based payments 6,572 4,987 Interest and dividend income (19,014) (39,663) Loss on disaster 25,051 837 Loss (gain) on sale and retirement of non-current assets 4,702 6,615 Decrease (increase) in trade receivables 211,695 (67,529) Decrease (increase) in inventories 2,957,754 2,228,866 Decrease (increase) in accounts receivable - other 17,445 38,674 Increase (decrease) in trade payables (1,776,928) (2,211,723) Increase (decrease) in contract liabilities 51,709 101,820 Increase (decrease) in accrued consumption taxes 1,063,326 51,372 Increase (decrease) in accounts payable - other (92,668) (149,167) Increase (decrease) in accrued expenses 286,397 323,530 Other, net 205,361 214,579 Subtotal 7,956,176 5,002,144 Interest and dividends received 2,268 14,676 Payments associated with disaster loss (445) (15,777) Income taxes paid (1,157,984) (401,614) Net cash provided by (used in) operating activities 6,800,014 4,599,429 Cash flows from investing activities Purchase of property, plant and equipment (867,325) (828,038) Purchase of intangible assets (67,103) (97,778) Loan advances – (790) Proceeds from collection of loans receivable 770 1,165 Purchase of long-term prepaid expenses (17,767) (11,989) Payments for asset retirement obligations (3,350) (6,720) Payments of guarantee deposits (146,505) (24,593) Proceeds from refund of guarantee deposits 16,130 26,037 Net cash provided by (used in) investing activities (1,085,151) (942,708) Cash flows from financing activities Purchase of treasury shares – (9) Dividends paid (656,230) (655,677) Net cash provided by (used in) financing activities (656,230) (655,687) Net increase (decrease) in cash and cash equivalents 5,058,632 3,001,033 Cash and cash equivalents at beginning of period 9,438,076 12,269,975 Cash and cash equivalents at end of period 14,496,708 15,271,009
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-8- (4) Notes to the Semi-annual Non-consolidated Financial Statements (Notes on segment information, etc.) Segment information is omitted as the Company has only one segment of the bicycle business. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Notes on going concern assumption) Not applicable.