Interim report
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Consolidated Financial Results for the Six Months Ended August 31, 2026 October 8, 2026 Seven & i Holdings Co., Ltd. (URL https://www.7andi.com/en) Securities Code No. 3382 Representative Director, President & CEO: Stephen Hayes Dacus The Company's shares are listed on the Prime Market of the Tokyo Stock Exchange. Submission date of the semi-annual securities report scheduled: October 14, 2026 Starting date of paying dividend: November 13, 2026 Preparation of brief summary materials for financial results: Yes Holding of financial results presentation: Yes (Notes) 1. Percentages represent increase (decrease) from the corresponding period in the prior fiscal year. 2. A mounts shown in the reports are rounded down to the nearest million yen. 1. R esults for the Six Months Ended August 31, 2026 (from March 1, 2026 to August 31, 2026) (1) R esults of operations (cumulative) ( Millions of yen) Revenues from Operations Operating Income Ordinary Income Net Income Attributable to Owners of Parent Six Months Ended August 31, 2026 5,460,274 (2.8) % 232,280 11.5 % 221,923 19.0 % 124,444 2.2 % Six Months Ended August 31, 2025 5,616,637 (6.9) % 208,388 11.4 % 186,436 11.5 % 121,802 133.1 % (Note) Comprehensive income: Six Months Ended August 31, 2026: 244,769 million yen [-%] Six Months Ended August 31, 2025: (123,772) million yen [-%] Net Income per Share (EPS) Diluted Net Income per Share (Diluted EPS) Six Months Ended August 31, 2026 54.26 (yen) 54.25 (yen) Six Months Ended August 31, 2025 47.83 (yen) 47.83 (yen) (Reference) Convenience store group merchandise sales: Six Months Ended August 31, 2026: 5,045,915 million yen Six Months Ended August 31, 2025: 4,846,624 million yen EBITDA: Six Months Ended August 31, 2026: 490,608 million yen Six Months Ended August 31, 2025: 485,449 million yen EPS before amortization of goodwill: Six Months Ended August 31, 2026: 78.31 yen Six Months Ended August 31, 2025: 68.76 yen *“Convenience store group merchandise sales” are merchandise sales from corporate and franchised stores across consolidated convenience store subsidiaries. *For “EBITDA” and “EPS before amortization of goodwill,” see “4. Others (5) Formula of various management indicators.”
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(2) Financial p osition (Millions of yen) Total Assets Net Assets Owners' Equity Ratio Net Assets per Share August 31, 2026 9,468,412 3,735,086 39.1 % 1,634.86 (yen) February 28, 2026 9,142,957 3,648,195 39.6 % 1,566.06 (yen) (Reference) Owners' equity (net assets excluding non-controlling interests and share award rights): As of August 31 , 2026: 3,706,370 million yen As of February 28, 2026: 3,620,226 million yen 2. Div idends Dividends per Share (yen) Record Date First Quarter Second Quarter Third Quarter Year-end Annual Year Ended February 28, 2026 - 25.00 - 25.00 50.00 Year Ending February 28, 2027 - 30.00 Year Ending February 28, 2027 (forecast) - 30.00 60.00 (Note) Revisions to the forecast of dividends most recently announced: None 3. Forecast of Business Results for the Fiscal Year Ending February 28, 2027 (From March 1, 2026 to February 28, 2027) (Millions of yen) Revenues from Operations Operating Income Ordinary Income Net Income Attributable to Owners of Parent Net Income per Share (EPS) Entire Year 10,430,000 0.0 % 425,000 0.5 % 390,000 3.3 % 278,000 (5.0) % 121.90 (yen) (Reference) Convenience store group merchandise sales: 10,210,000 million yen EBITDA: 928,000 million yen EPS before amortization of goodwill: 169.81 yen (Note) Revision to the forecast of business results most recently announced: None
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4. Others (1) Significant change in the scope of consolidation during the period: None Added: None Excluded: None (2) Application of specific accounting for preparing the semi-annual consolidated financial statements: None (3) Changes in accounting policies, accounting estimates or restatements 1. Changes due to amendment of accounting standards: None 2. Changes due to other reasons other than 1.: None 3. Changes in accounting estimates: None 4. Restatements: None (4) Number of shares outstanding (Common stock) 1. Number of shares outstanding at the end of period (Including treasury stock) As of August 31, 2026: 2,320,258,349 shares As of February 28, 2026: 2,604,555,849 shares 2. Number of treasury stock at the end of period As of August 31, 2026: 53,174,608 shares As of February 28, 2026: 292,876,123 shares 3. Average number of shares during the period (Cumulative from the beginning of the fiscal year) As of August 31, 2026: 2,293,673,972 shares As of August 31, 2025: 2,546,400,647 shares (Note) The Company has introduced the BIP Trust and ESOP Trust, and its shares held by these Trusts are included in the number of treasury stock to be deducted when calculating the number of treasury stock at the end of the fiscal period and the average number of shares during the period. (5) Formula of various management indicators 1. EBITDA: Operating income + Depreciation and amortization + Amortization of goodwill* * Only figures included in SG&A expenses 2. EPS before amortization of goodwill: (Net income attributable to owners of parent + Amortization of goodwill) / Average number of shares during the period Tax effects associated with amortization of goodwill have been taken into account. NOTICE REGARDING REVIEW PROCEDURES FOR THE SEMI-ANNUAL FINANCIAL RESULTS This semi-annual financial results statement is exempt from the review procedures by certified public accountants or audit corporations. EXPLANATION OF THE PROPER USE OF FINANCIAL RESULTS FORECASTS AND OTHER SPECIAL NOTES This document contains forward -looking statements regarding Seven & i Holdings Co., Ltd. and its consolidated subsidiaries (the "Company"). Forward -looking statements include, without limitation, statements regarding the Company's business plans, financial and operating targets, forecasts, projections, and strategies, and other statements that are not statements of historical fact. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "should," "target," and "will," and similar expressions, are intended to identify forward -looking statements, although not all forward - looking statements contain these words. These forward-looking statements are based on the Company's current expectations, assumptions, estimates, and projections in light of information available to the Company as of the date of this document, and are not guarantees of future performance and are subject to known and unknown risks and uncertainties. Actual results may differ materially from those expressed or implied by such statements as a result of a number of factors, including but not limited to: • changes in economic conditions and consumer spending patterns in Japan, the United States, and other markets in which the Company operates; • fluctuations in foreign currency exchange rates and interest rates; • changes in competitive conditions in the retail and other industries in which the Company operates;
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• the Company's ability to execute its business transformation and other strategic initiatives, including store network optimization and value chain optimization, within the anticipated timeframe or at all; • fluctuations in the cost of raw materials, merchandise, logistics, and labor; • disruptions to the Company's supply chain, store operations, or information systems, including as a result of natural disasters, public health emergencies, cyber incidents, or geopolitical events; • changes in laws, regulations, tax rules, or accounting standards applicable to the Company in Japan and overseas; and • other factors described in the Company's periodic disclosure documents filed with Japan's Financial Services Agency (via EDINET) and the Tokyo Stock Exchange, and in other materials available on the Company's website (https://www.7andi.com/en/ir/). The forward-looking statements contained in this document are made only as of the date of this document, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or o therwise, except as required by applicable law or stock exchange rule. Readers are cautioned not to place undue reliance on these forward-looking statements.
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Attached Materials Contents 1. Overview of Operating Results and Financial Position (1) Overview of consolidated operating results for the six months ended August 31, 2026 ··················· 2 (2) Overview of consolidated financial position for the six months ended August 31, 2026 ··················· 6 (3) Explanation of consolidated forecast and other forward-looking statements ···································· 6 2. Related to Summary Information (Others) (1) Significant change in the scope of consolidation during the period ················································· 7 (2) Application of specific accounting for preparing the semi-annual consolidated financial statements ···· 7 (3) Changes in accounting policies, accounting estimates or restatements ··········································· 7 (4) Supplementary information ······································································································ 7 3. Semi-annual Consolidated Financial Statements (1) Semi-annual consolidated balance sheets ··················································································· 8 (2) Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income ············································ 10 (3) Semi-annual consolidated statements of cash flows ···································································· 12 (4) Doubts on the premise of going concern ················································································· 14 (5) Notes to semi-annual consolidated statements of income ···························································· 14 (6) Notes to semi-annual consolidated statements of cash flows ······················································· 14 (7) Segment information ·············································································································· 15 (8) Notes on significant changes in the amount of shareholders' equity ·············································· 17 (9) Subsequent event ·················································································································· 18 - 1 -
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1. Overview of Operating Results and Financial Position (1) Overview of consolidated operating results for the six months ended August 31, 2026 I. Overview In the first half (six months ended August 31, 202 6), the Japanese economy experienced a gradual recovery. While p ersonal consumption show ed signs of picking up , consumer sentiment remained sluggish. The North American economy remained solid. While personal consumption remained generally resilient, a tendency toward restraint was observed, particularly among low-income earners, due to factors such as growing concerns over rising prices associated with geopolitical risks that may persist and evolve. In this environment, the Company has been advancing the initiatives for global growth through the transformation of the convenience store business, outlined in the “Transformation of 7-Eleven” announced on August 6, 2025, striving to generate further outcomes. Concurrently, the Company will elevate the customer experience to the next level to achieve sustainable growth. As a result, consolidated financial results for the six months ended August 31, 2026, were as follows: (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 YoY YoY Revenues from operations 5,616,637 93.1％ 5,460,274 97.2％ Operating income 208,388 111.4％ 232,280 111.5％ Ordinary income 186,436 111.5％ 221,923 119.0％ Net income attributable to owners of parent 121,802 233.1％ 124,444 102.2％ Exchange rates U.S.$1＝\148.40 U.S.$1＝\158.29 1yuan＝\20.44 1yuan＝\23.07 Convenience store group merchandise sales , consisting of merchandise sales from corporate and franchised stores across consolidated convenience store subsidiaries, amounted to ¥ 5,045,915 million (104.1% YoY). The impact of foreign exchange fluctuations in the first half was to increase revenues from operations by ¥311.0 billion and operating income by ¥9.4 billion. (Reference: Consolidated results on an adjusted basis) (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 YoY on an adjusted basis YoY on an adjusted basis Revenues from operations 4,696,750 － 5,460,274 116.3％ Operating income 170,060 － 232,280 136.6％ Ordinary income 161,271 － 221,923 137.6％ Net income attributable to owners of parent 105,664 － 124,444 117.8％ *YoY on an adjusted basis: This represents a comparison with adjusted figures for the six months ended August 31, 2025 (Adjusted basis), to reflect performance primarily in the convenience store business. These figures were adjusted for the impacts of deconsolidating the subsidiaries of YORK Holdings Co., Ltd. (“York Holdings”), Seven Bank, Ltd. (“Seven Bank”), and its subsidiaries. Major adjustments to the results for the six months ended August 31, 2025: Deducted the results of deconsolidated entities, including the subsidiaries of YORK Holdings, Seven Bank, and its subsidiaries; added their equity method income/loss, calculated by multiplying their post-deconsolidation ownership interest by the deducted results; and also deducted the special gain/loss associated with the deconsolidation. - 2 -
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Ⅱ. Overview by operating segment The Company changed its classification of reportable segments effective from the first half of the fiscal year ending February 2 8, 2027. Figures for the six months ended August 31, 2025 in the table below have been reclassified to reflect the new classification. (Revenues from operations by operating segment) (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 YoY YoY Domestic convenience store operations 462,575 － 467,322 101.0％ Overseas convenience store operations 4,221,130 － 4,966,613 117.7％ Others 945,510 － 32,383 3.4％ Total 5,629,216 － 5,466,319 97.1％ Adjustments (eliminations/corporate) (12,579) － (6,045) － Consolidated Total 5,616,637 93.1％ 5,460,274 97.2％ (Operating income by operating segment) (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 YoY YoY Domestic convenience store operations 121,793 － 109,899 90.2％ Overseas convenience store operations 80,131 － 150,422 187.7％ Others 41,415 － 2,749 6.6％ Total 243,340 － 263,072 108.1％ Adjustments (eliminations/corporate) (34,952) － (30,792) － Consolidated Total 208,388 111.4％ 232,280 111.5％ Domestic convenience store operations In the Domestic convenience store operations segment, revenues amounted to \ 467,322 million (101.0% YoY), and operating income was \109,899 million (90.2% YoY). To achieve steady growth amidst increasing uncertainty in the business environment, SEVEN-ELEVEN JAPAN CO., LTD. (“SEJ”) has advanced the following key initiatives . For customer experience enhancement, SEJ has been elevating its appeal by rolling out Freshly Prepared Food, centered around SEVEN CAFÉ Bakery and SEVEN CAFÉ Tea under the "Live- Meal" brand. In category strategy, SEJ has been strengthening its product proposals, tailored to customersʼ diversifying lifestyles. To strengthen its earnings structure, SEJ has been executing structural transformations across procurement, manufacturing, and logistics in order to optimize its value chain, as well as in its cost structure mainly through reviewing operating processes. Moreover, SEJ will further drive momentum and strive for sustainable growth, through accelerating digital initiatives such as 7NOW and mobile ordering as well as co-creation marketing. In the first half, these initiatives proved effective, leading to higher average spending per customer and same store sales growth, with the gross profit margin remaining at the same level as the same period last year. However, SG&A expenses increased due to upfront investments for introducing in-store cooking equipment and next-generation store systems, coupled with rising prices and other factors , resulting in operating income of ¥ 110,221 million ( 90.7% YoY). Additionally, total store sales, representing the combined sales of corporate and franchised stores, amounted to ¥2,810,379 million (101.6% YoY). - 3 -
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During the three months of the second quarter, same store sales increased year over year, whereas the gross profit margin declined due to sluggish sales of soft drinks and other items. SG&A expenses increased year over year driven mainly by higher depreciation and amortization resulting from the rollout of in-store cooking equipment and next -generation store systems . As a result, operating income totaled ¥57,794 million (86.3% YoY). Overseas convenience store operations In the Overseas convenience store operations segment, revenues amounted to ¥ 4,966,613 million (117.7% YoY), and operating income was ¥150,422 million (187.7% YoY). In North America, a budget-conscious mindset toward food and daily necessities continued to be observed, particularly among low-income earners, largely driven by growing concerns over inflation. Under these circumstances, 7-Eleven, Inc. (“SEI”) has undertaken the following initiatives. For customer experience enhancement, SEI has been modernizing its store network by expanding proprietary products through offering high-quality fresh food and beverages, as well as by accelerating corporate-to-franchise conversion and remodeling existing stores. To strengthen its earnings structure, SEI has been optimizing its value chain by redesigning it for greater cost competitiveness , while implementing rigorous cost management. Furthermore, SEI aims to achieve autonomous growth by expanding 7NOW, which continues to serve as a core driver of growth. In the first half, U.S. same store merchandise sales on a U.S. dollar basis were higher than in the same period last year. In the fuel business, revenue surpassed that of the corresponding quarter of the previous year due to the volatility of market conditions. Gross profit margin improved year over year, driven by the expansion of proprietary products, despite the impact of soaring raw material prices mainly caused by inflation. However, SG&A expenses increased year over year. Operating income (before amortization of goodwill) was ¥209,064 million (155.5% YoY). Total store sales, comprising sales of both corporate and franchised stores, were ¥5,543,152 million (115.8% YoY). During the second quarter, the average spending per customer exceeded that of the previous year driven mainly by promotion optimization and value offering initiatives. However, U.S. same store sales slightly decreased due to lower customer traffic, driven largely by ongoing headwinds in the external environment such as persistently high fuel prices. Meanwhile, gross profit margin improved year over year, driven by measures such as the optimization of pricing and promotions, as well as the reduction of inventory write-off and shrinkage. As a result, operating income totaled \121,021 million (124.8% YoY). 7-Eleven International LLC has been strengthening support for its existing markets and transitioning its business to a “food -focused convenience store” model tailored to the characteristics of each market. Operating income (before amortization of goodwill) for the first half was ¥10,792 million (103.5% YoY). As part of this effort, 7-Eleven Australia (Australia) has been driving initiatives to strengthen fresh food development, particularly by enhancing Japan- related offerings, running related campaigns, and broadening its assortment. As a result, same store sales in Australia increased year over year. In addition, revenues from its fuel business exceeded that of the same quarter last year, supported by the volatility of market conditions. Others In Others segment, revenues amounted to ¥ 32,383 million (3.4% YoY), and operating income was ¥2,749 million (6.6% YoY). It should be noted that t he Company deconsolidated Seven Bank and its nine subsidiaries as of June 24, 2025, as well as subsidiaries under YORK Holdings as of September 1, 2025. The financial results of Seven Bank, its nine subsidiaries, and the subsidiaries of YORK Holdings were included in the consolidated results as consolidated subsidiaries in the first half of the fiscal year ended February 28, 2026. In the first half of the fiscal year end ing February 28, 2027, Seven Bank and K.K. BCJ- 95 were accounted for as equity method affiliates in the consolidated results. Regarding K.K. BCJ-95, the results of its consolidated subsidiaries and equity method affiliates were reflected in the Groupʼs consolidated results through the profit/loss of K.K. BCJ-95. - 4 -
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Adjustments (eliminations/corporate) Operating loss from adjustments (eliminations and corporate) totaled ¥30,792 million (operating loss of ¥34,952 million for the same period of the previous fiscal year). Head office expenses were recorded, including costs related to the construction of a group -wide common infrastructure system aimed at improving operational efficiency and strengthening security. - 5 -
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(2) Overview of consolidated financial position for the six months ended August 31, 2026 Ⅰ. Assets, liabilities and net assets (Consolidated financial position) (Millions of yen) February 28, 2026 August 31, 2026 Change Total assets 9,142,957 9,468,412 325,455 Total liabilities 5,494,762 5,733,326 238,564 Net assets 3,648,195 3,735,086 86,890 Exchange rates U.S.$1＝\156.56 U.S.$1＝\162.39 1yuan＝\22.36 1yuan＝\23.87 Total assets increased by \325,455 million from the previous fiscal year -end to \9,468,412 million, mainly due to fluctuations of exchange rates. Current assets increased by \179,456 million compared to the previous fiscal year -end, mainly due to a n increase in notes and accounts receivable - trade, and contract assets. Non-current assets increased by \146,064 million, mainly due to an increase in right-of- use assets related to the overseas convenience store operations. Total liabilities increased by \238,564 million from the previous fiscal year-end to \5,733,326 million, mainly due to an increase in lease obligations. Net assets increased by \86,890 million from the previous fiscal year-end to \3,735,086 million, mainly due to an increase in foreign currency translation adjustments and other factors. Overall, the positive impact of foreign exchange translation during the first half was \265,208 million on total assets and \147,476 million on total liabilities. Ⅱ. Cash flows (Consolidated cash flows) (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Change Cash flows from operating activities 382,104 337,084 (45,019) Cash flows from investing activities (883,364) (168,293) 715,070 Cash flows from financing activities (132,925) (176,049) (43,124) Cash and cash equivalents at end of the period 694,276 427,184 (267,091) Net cash provided by operating activities amounted to ¥337,084 million. This was mainly due to income before income taxes of ¥174,141 million. Net cash used in investing activities was ¥168,293 million, mainly due to acquisition of property and equipment. Net cash used in financing activities totaled ¥176,049 million, mainly due to purchase of treasury stock. As a result of the above, cash and cash equivalents for the six months ended August 31, 2026 stood at ¥427,184 million. (3) Explanation of consolidated forecast and other forward-looking statements The consolidated forecasts for the fiscal year ending February 28, 2027 remain unchanged from those announced on July 9, 2026. - 6 -
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2. Related to Summary Information (Others) (1) Significant change in the scope of consolidation during the period: None (2) Application of specific accounting for preparing the semi-annual consolidated financial statements: None (3) Changes in accounting policies, accounting estimates or restatements : None (4) Supplementary information: (Acquisition of own shares) The Company resolved, at a meeting of the Board of Directors held on July 31, 2026, to repurchase own shares under Article 156 which is applicable in accordance with Article 165, paragraph 3 of the Companies Act, and to identify the implementation of its repurchase. On August 3, 2026, the Company executed the repurchase of its own shares. In addition, the Company implemented a portion of its share repurchase through a facility share repurchase ( Accelerated Share Repurchase) (hereinafter referred to as “this Method”). The account ing treatment for this Method has been applied as described below because there are no clear provisions in the relevant accounting standards, etc. Ⅰ. Outline of this Method On 3 August, 2026, the Company repurchased 189,663,300 shares of treasury stock equivalent to 399,999 million yen at 2,109 yen per share through the ToSTNeT -3 system. Of these shares, 174,162,900 shares were repurchased from SMBC Nikko Securities Inc. (“SMBC Nikko”) (hereinafter, the share repurchase from SMBC Nikko is referred to as the “Share Repurchase (ASR)”). The Company and SMBC Nikko will conduct an adjustment transaction (the “Adjustment Transaction”) through the exercise of the share options or the gratuitous transfer of the Companyʼs shares to the Company so that the Companyʼs actual purchase price of the shares repurchased from SMBC Nikko through a series of transactions in the scheme will be equal to the average price of the Companyʼs shares based on the all - day volume -w e i g h t e d a v e r a g e p r i c e ( t h e “ V W A P ” ) o f t h e C o m p a n y ʼ s c o m m o n s h a r e s i n r e g u l a r-way transactions on the Tokyo Stock Exchange during a certain period following the Share Repurchase (ASR). As such, the final total purchase price or final number of shares repurchased may vary depending on the Adjustment Transaction. Ⅱ. Accounting principles and procedures Shares of the Company acquired through ToSTNeT -3 are recorded as “Treasury stock ” based on its acquisition cost in the net assets section of the semi-annual consolidated balance sheets . Shares of the Company acquired through this Method are included in the treasury stock deducted in the calculation of the average number of shares during the period for the purpose of calculating earnings and diluted earnings per share. If, going forward, the shares are to be delivered through the exercise of stock acquisition rights, the book value of the delivered shares will be deducted from the treasury stock in the net assets section of the consolidated balance sheet, and the difference between the book value of the treasury stock reduced and the amount paid in through the exercise of the stock acquisition rights will be deducted from capital surplus. Based on this accounting policy, 399,999 million yen is recorded as “Treasury stock” in net assets section of the semi-annual consolidated balance sheets (367,309 million yen for the shares purchased from SMBC Nikko). - 7 -
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3. Semi-annual Consolidated Financial Statements (1) Semi-annual consolidated balance sheets (Millions of yen) February 28, 2026 August 31, 2026 Amount Amount ASSETS Current assets 1,492,546 1,672,003 Cash and bank deposits 438,634 440,203 Notes and accounts receivable - trade, and contract assets 298,684 342,336 Trade accounts receivable - financial services 42,214 47,162 Merchandise and finished goods 223,018 264,231 Work in process 94 52 Raw materials and supplies 286 345 Prepaid expenses 89,344 98,079 Other 407,277 487,373 Allowance for doubtful accounts (7,008) (7,781) Non-current assets 7,650,015 7,796,079 Property and equipment 4,497,967 4,641,012 Buildings and structures, net 1,449,775 1,471,679 Furniture, fixtures and equipment, net 435,334 481,600 Land 902,246 929,479 Right-of-use assets, net 1,451,665 1,519,730 Construction in progress 231,458 205,503 Other, net 27,487 33,018 Intangible assets 2,469,026 2,476,233 Goodwill 2,109,806 2,118,732 Software 201,682 205,742 Other 157,537 151,759 Investments and other assets 683,021 678,833 Investments in securities 363,740 365,043 Long-term loans receivable 7,056 7,638 Long-term leasehold deposits 157,112 154,163 Net defined benefit asset 67,194 68,430 Deferred tax assets 37,148 32,288 Other 52,406 52,891 Allowance for doubtful accounts (1,637) (1,623) Deferred assets 395 330 Bond issuance cost 395 330 TOTAL ASSETS 9,142,957 9,468,412 - 8 -
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(Millions of yen) February 28, 2026 August 31, 2026 Amount Amount LIABILITIES Current liabilities 1,900,670 1,929,883 Notes and accounts payable, trade 416,083 498,881 Short-term loans 135,580 58,329 Current portion of bonds 255,657 60,000 Current portion of long-term loans 190,456 408,214 Income taxes payable 37,440 19,423 Accrued expenses 258,979 281,023 Contract liabilities 70,667 70,479 Deposits received 177,934 174,688 Lease obligations 164,772 171,999 Allowance for loss on business of subsidiaries and associates 3,299 － Allowance for sales promotion expenses 335 439 Allowance for bonuses to employees 5,388 5,690 Allowance for bonuses to Directors and Audit & Supervisory Board Members 718 375 Other 183,357 180,337 Non-current liabilities 3,594,091 3,803,443 Bonds 929,828 957,334 Long-term loans 718,495 785,446 Deferred tax liabilities 224,633 263,908 Allowance for retirement benefits to Directors and Audit & Supervisory Board Members 134 123 Allowance for stock payments 1,504 1,561 Net defined benefit liability 16,566 14,276 Deposits received from tenants and franchised stores 13,796 14,175 Lease obligations 1,398,990 1,471,759 Asset retirement obligations 225,304 232,490 Other 64,836 62,368 TOTAL LIABILITIES 5,494,762 5,733,326 NET ASSETS Shareholders' equity 2,634,255 2,601,001 Common stock 50,000 50,000 Capital surplus 293,429 － Retained earnings 2,906,276 2,661,081 Treasury stock, at cost (615,450) (110,080) Total accumulated other comprehensive income 985,971 1,105,369 Unrealized gains (losses) on available-for-sale securities, net of taxes 55,662 56,494 Unrealized gains (losses) on hedging derivatives, net of taxes 4,622 4,607 Foreign currency translation adjustments 884,784 1,003,749 Remeasurements of defined benefit plans 40,900 40,518 Share award rights 225 521 Non-controlling interests 27,743 28,194 TOTAL NET ASSETS 3,648,195 3,735,086 TOTAL LIABILITIES AND NET ASSETS 9,142,957 9,468,412 - 9 -
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(2) Semi-annual consolidated statements of income and semi-annual consolidated statements of comprehensive income Semi-annual consolidated statements of income (Millions of yen) Six Months Ended August 31, 2025 Six Months Ended August 31, 2026 Amount Amount Revenues from operations 5,616,637 5,460,274 Net sales 4,788,994 4,725,720 Cost of sales 3,909,215 3,965,052 Gross profit on sales 879,779 760,667 Operating revenues 827,642 734,553 Gross profit from operations 1,707,422 1,495,221 Selling, general and administrative expenses 1,499,034 1,262,941 Operating income 208,388 232,280 Non-operating income 10,952 15,169 Interest income 5,687 5,533 Equity in earnings of affiliates － 6,309 Other 5,265 3,326 Non-operating expenses 32,903 25,525 Interest expenses 16,400 14,136 Interest on bonds 9,811 9,260 Equity in losses of affiliates 1,039 － Other 5,653 2,129 Ordinary income 186,436 221,923 Special gains 48,329 6,350 Gain on sales of property and equipment 39,363 2,689 Reversal of provision for loss on business of subsidiaries and associates 2,135 2,546 Other 6,830 1,114 Special losses 31,200 54,132 Loss on disposals of property and equipment 6,758 9,208 Impairment loss 8,041 22,985 Restructuring expenses 873 － Other 15,527 21,939 Income before income taxes 203,566 174,141 Total Income taxes 76,009 48,972 Income taxes - current 67,651 38,836 Income taxes - deferred 8,357 10,136 Net income 127,556 125,168 Net income attributable to non-controlling interests 5,754 723 Net income attributable to owners of parent 121,802 124,444 - 10 -
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Semi-annual consolidated statements of comprehensive income (Millions of yen) Six Months Ended August 31, 2025 Six Months Ended August 31, 2026 Amount Amount Net income 127,556 125,168 Other comprehensive income Unrealized gains (losses) on available-for-sale securities, net of taxes 11,953 492 Unrealized gains (losses) on hedging derivatives, net of taxes (592) (15) Foreign currency translation adjustments (260,547) 118,909 Remeasurements of defined benefit plans, net of taxes (2,115) 388 Share of other comprehensive income (loss) of entities accounted for using equity method, net of taxes (26) (174) Total other comprehensive income (loss) (251,328) 119,601 Comprehensive income (loss) (123,772) 244,769 Comprehensive income (loss) attributable to owners of parent (122,617) 243,842 Comprehensive income (loss) attributable to non-controlling interests (1,154) 927 - 11 -
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(3) Semi-annual consolidated statements of cash flows (Millions of yen) Six Months Ended August 31, 2025 Six Months Ended August 31, 2026 Amount Amount Cash flows from operating activities Income before income taxes 203,566 174,141 Depreciation and amortization 207,854 186,160 Impairment loss 8,041 22,985 Amortization of goodwill 69,207 72,168 Interest income (5,687) (5,533) Interest expenses and interest on bonds 26,211 23,396 Equity in losses (earnings) of affiliates 1,039 (6,309) Gain on sales of property and equipment (39,363) (2,689) Loss on disposals of property and equipment 7,355 9,208 Reversal of provision for loss on business of subsidiaries and associates (2,135) (2,546) Decrease (increase) in notes and accounts receivable, trade (26,726) (36,622) Decrease (increase) in trade accounts receivable, financial services (8,340) (4,947) Decrease (increase) in inventories 1,948 (32,128) Increase (decrease) in notes and accounts payable, trade 74,075 75,510 Increase (decrease) in deposits received 85,007 (3,284) Net increase (decrease) in borrowings in banking business 10,000 － Net increase (decrease) in deposits received in banking business 28,797 － Net increase (decrease) in call money in banking business (100,000) － Net decrease (increase) in ATM-related temporary accounts (41,969) － Other (36,075) (41,701) Subtotal 462,805 427,806 Interest and dividends received 6,494 8,980 Interest paid (27,956) (21,486) Proceeds from insurance income 2,785 78 Income taxes paid (64,007) (78,891) Income taxes refund 1,982 597 Net cash provided by operating activities 382,104 337,084 - 12 -
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(Millions of yen) Six Months Ended August 31, 2025 Six Months Ended August 31, 2026 Amount Amount Cash flows from investing activities Acquisition of property and equipment (160,346) (158,300) Proceeds from sales of property and equipment 66,349 6,894 Acquisition of intangible assets (42,726) (28,966) Payment for purchase of investments in securities (44,891) (3,989) Proceeds from sales of investments in securities 51,909 3,716 Proceeds from sales of shares in subsidiaries resulting in change in scope of consolidation － 13,184 Payment for sales of shares in subsidiaries resulting in change in scope of consolidation (758,627) － Payment for long-term leasehold deposits (3,246) (1,464) Refund of long-term leasehold deposits 16,136 4,552 Proceeds from deposits from tenants 959 500 Refund of deposits from tenants (1,011) (235) Payment for acquisition of business (173) (70) Payment for time deposits (3,983) (3,913) Proceeds from withdrawal of time deposits 5,476 4,636 Other (9,189) (4,837) Net cash used in investing activities (883,364) (168,293) Cash flows from financing activities Net increase (decrease) in short-term loans 417,227 (78,115) Proceeds from long-term debts 18,000 335,651 Repayment of long-term debts (190,815) (69,040) Proceeds from issuance of commercial papers － 79,184 Redemption of commercial papers － (79,184) Redemption of bonds (30,000) (197,862) Proceeds from sale of treasury stock 1,132 300,087 Purchase of treasury stock (283,306) (400,001) Dividends paid (51,950) (57,827) Dividends paid to non-controlling interests (4,259) (476) Payment for changes in ownership interests in subsidiaries that do not result in change in scope of consolidation (0) － Other (8,953) (8,464) Net cash used in financing activities (132,925) (176,049) Effect of exchange rate changes on cash and cash equivalents (21,358) 8,296 Net increase (decrease) in cash and cash equivalents (655,544) 1,037 Cash and cash equivalents at beginning of period 1,349,820 426,146 Cash and cash equivalents at end of period 694,276 427,184 - 13 -
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(4) Doubts on the premise of going concern None (5) Notes to semi-annual consolidated statements of income A breakdown of “Restructuring expenses” is as follows: (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Loss on disposals of property and equipment 597 － Others 276 － Total 873 － (6) Notes to semi-annual consolidated statements of cash flows Ⅰ. Reconciliation of cash and cash equivalents as of August 31, 2025 and 2026 between the amounts shown in the consolidated balance sheets and the consolidated statements of cash flows is as follows: (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Cash and bank deposits 709,581 440,203 Restricted cash 1,761 1,887 Time deposits with maturities and certificate deposits in excess of three months (17,067) (14,906) Cash and cash equivalents 694,276 427,184 Ⅱ. “Proceeds from sales of shares in subsidiaries resulting in change in scope of consolidation” in the six months ended August 31, 2026 represent the receipt of 13,184 million yen for receivables related to price adjustment for s uperstore operations as a result of the business restructuring executed in the fiscal year ended February 28, 2026. - 14 -
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(7) Segment information Ⅰ. Six months ended August 31, 2025 (From March 1, 2025 to August 31, 2025) (ⅰ) Information on revenues from operations and income (loss) by reportable segment (Millions of yen) Reportable segments Others (Note 1) Total Adjustments (Note 2) Consolidated total (Note 3) Domestic convenience store operations Overseas convenience store operations Revenues from operations 1.Customers 461,574 4,220,486 934,230 5,616,292 344 5,616,637 2.Intersegment 1,000 643 11,280 12,924 (12,924) - Total 462,575 4,221,130 945,510 5,629,216 (12,579) 5,616,637 Segment income (loss) 121,793 80,131 41,415 243,340 (34,952) 208,388 Notes: 1. “Others” represent the businesses which are not included in any of the reportable segments and consist of superstore operations, financial services, specialty store operations and real estate operations, etc. 2. The adjustments on segment income (loss) of ( 34,952) million yen are eliminations of intersegment transactions and certain expense items that are not allocated to operating segments. 3. Segment income (loss) is reconciled with the operating inco me in the semi -annual consolidated statements of income. (ⅱ) Impairment of fixed assets and goodwill by reportable segment No significant items to be reported. - 15 -
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Ⅱ. Six months ended August 31, 2026 (From March 1, 2026 to August 31, 2026) (ⅰ) Information on revenues from operations and income (loss) by reportable segment (Millions of yen) Reportable segments Others (Note 1) Total Adjustments (Note 2) Consolidated total (Note 3) Domestic convenience store operations Overseas convenience store operations Revenues from operations 1.Customers 466,608 4,966,613 26,174 5,459,397 877 5,460,274 2.Intersegment 713 - 6,208 6,922 (6,922) - Total 467,322 4,966,613 32,383 5,466,319 (6,045) 5,460,274 Segment income (loss) 109,899 150,422 2,749 263,072 (30,792) 232,280 Notes: 1. “Others” represent the businesses which are not included in any of the reportable segments and consist of financial services, etc. 2. The adjustments on segment income (loss) of ( 30,792) million yen are eliminations of intersegment transactions and certain expense items that are not allocated to operating segments. 3. Segment income (loss) is reconciled with the operating inco me in the semi -annual consolidated statements of income. (ⅱ) Impairment of fixed assets and goodwill by reportable segment No significant items to be reported. (ⅲ) Change in segment classification The Company resolved, at a meeting of the Board of Directors held on April 9, 2026, to change its operating segments. The details of the resulting changes to segment classification are as follows: ・ “Superstore operations” and “Financial services” have been reclassified to “Others”. ・ Certain companies within “Others” (PIA Corporation, Tower Records Japan Inc.) have been reclassified to “Domestic convenience store operations”. Segment information in the s ix months ended August 31, 2025 has been reclassified into the new segment classification. - 16 -
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(Reference) Revenues from operations and operating income by geographic area segments are as described below. Six months ended August 31, 2025 (From March 1, 2025 to August 31, 2025) (Millions of yen) Japan North America Others Total before eliminations Eliminations Consolidated total Revenues from operations 1. Customers 1,366,356 3,939,455 310,825 5,616,637 － 5,616,637 2. Intersegment 13,399 1,068 17 14,484 (14,484) － Total revenues 1,379,755 3,940,523 310,843 5,631,122 (14,484) 5,616,637 Operating income (loss) 138,656 82,660 (552) 220,764 (12,376) 208,388 Notes: 1. The classification of geographic area segments is determined according to geographical distances. 2. “Others” consist of the results in Australia and the China, etc. Six months ended August 31, 2026 (From March 1, 2026 to August 31, 2026) (Millions of yen) Japan North America Others Total before eliminations Eliminations Consolidated total Revenues from operations 1. Customers 493,660 4,604,084 362,529 5,460,274 － 5,460,274 2. Intersegment 35,291 1,357 － 36,648 (36,648) － Total revenues 528,952 4,605,441 362,529 5,496,923 (36,648) 5,460,274 Operating income (loss) 116,503 151,945 (1,530) 266,918 (34,638) 232,280 Notes: 1. The classification of geographic area segments is determined according to geographical distances. 2. “Others” consist of the results in Australia and the China, etc. (8) Notes on significant changes in the amount of shareholders' equity (Acquisition of own shares) The Company resolved, at a meeting of the Board of Directors held on July 31, 2026, to repurchase own shares under Article 156 which is applicable in accordance with Article 165, paragraph 3 of the Companies Act, and to identify the implementation of its repurchase. On August 3, 2026, the Company executed the repurchase of its own shares, 189,663,300 shares , and implemented a portion of its share repurchase through a facility share repurchase (Accelerated Share Repurchase) . As a result, in the six months ended August 31, 2026, “Treasury stock” increased by 399,999 million yen. (Disposal of treasury stock) The Company completed the disposal of treasury shares, 144,927,534 shares, through a third -party allotment to SoftBank Corp., PayPay Corporation and Sumitomo Mitsui Card Company, Limited on August 17, - 17 -
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2026, a s r e s o l v e d a t t h e B o a r d o f D i r e c t o r s d a t e d J u l y 3 1, 2026. As a result, in the six months ended August 31, 202 6, “ Capital surplus” decreased by 5 ,651 million yen and “Treasury stock” decreased by 305,651 million yen respectively. (Cancellation of treasury stock) The Company resolved, at a meeting of the Board of Directors held on July 9 , 2026, to cancel its treasury stock, pursuant to the provisions of Article 178 of the Companies Act, and completed the cancellation of treasury shares, 284,297,500 shares on July 15, 2026. As a result, in the six months ended August 31, 2026, “Capital surplus” and “Treasury stock” decreased by 599,541 million yen respectively. As a result of the above transactions, the balance of “C apital surplus” became negative so “ Capital surplus” was set to zero, and the negative amount was deducted from “Retained earnings”. In the semi - annual consolidated balance sheets, “Capital surplus” became zero, “Retained earnings” became 2,661,081 million yen and “Treasury stock” became 110,080 million yen. (9) Subsequent event Issuance of bonds At a meeting of its Board of Directors held on October 8, 2026, a comprehensive resolution regarding the issuance of unsecured domestic straight bond was passed. A summary of this issuance is as follows. Ⅰ. Principal amount: ¥120 billion or less (Multiple issuance within this scope is allowed.) Ⅱ. Estimated issue term: From October 23, 2026 to December 31, 2026 (However, it contains what is offered during the term.) Ⅲ. Interest rate: Market yield of Japanese government bonds with nearly the same maturities plus 1.0% or less Ⅳ. Issue price: The bonds shall be issued at 100 yen per face value of 100 yen. Ⅴ. Redemption date: 10 years or less Ⅵ. Redemption method: Lump-sum redemption at maturity (However, callable clause may be included.) Ⅶ. Security: Unsecured and without guarantee Ⅷ. Financial covenants: Negative pledge clause and other covenants which are required for issuance of bonds Ⅸ. Use of funds: Funds for bond redemption, funds for repayment of loans and working capital Ⅹ. Other: It will be subject to the “Act on Book-Entry Transfer of Corporate Bonds and Shares”. Decisions regarding matters listed in the items of Article 676 of the Companies Act and any other items necessary for the issuance of bonds will be made at the discretion of the Director, Managing Executive Officer and Chief Financial Officer (CFO). It will be reported at a meeting of its Board of Directors, first held after the decision. - 18 -