Interim report
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Consolidated Financial Results for the Six Months Ended August 31, 2026 (Under Japanese GAAP) October 7, 2026 Company name: TSURUHA HOLDINGS INC. Listing Tokyo Stock Exchange (Prime Market) Securities code: 3391 URL: https://www.tsuruha-hd.co.jp Representative: Tsuruha Jun, President and Representative Director Inquiries: Miyake Ryutaro, Executive Officer and General Manager of Accounting and Finance Division Telephone: +81-11-783-2755 Scheduled date to file semi-annual securities report: October 14, 2026 Scheduled date to commence dividend payments: November 2, 2026 Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes (for institutional investors and financial analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the six months ended August 31, 2026 (March 1, 2026–August 31, 2026) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales EBITDA Operating income Ordinary income Net income attributable to owners of the parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2026 1,275,514 128.7 85,530 126.3 54,770 92.6 54,850 90.3 30,252 48.5 August 31, 2025 557,831 – 37,802 – 28,444 – 28,818 – 20,365 – (Note) Comprehensive income: Six months ended August 31, 2026: ¥30,328 million [40.5%] Six months ended August 31, 2025: ¥21,585 million [–%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen August 31, 2026 66.75 66.65 August 31, 2025 83.64 83.32 (Notes) 1. EBITDA = Operating income + Depreciation and amortization of goodwill 2. TSURUHA HOLDINGS INC. (the “Company”) has changed its fiscal year-end (business year-end) from May 15 to the end of February, starting with the fiscal year ended February 28, 2025. Following this change, the months included in the six-month period ended August 31, 2025 (March 1, 2025 to August 31, 2025) are different from those in the comparative period ended November 15, 2024 (May 16, 2024 to November 15, 2024). Accordingly, year-on-year changes are not presented for the six months ended August 31, 2025. 3. The Company implemented a 5-for-1 stock split of its common shares on September 1, 2025. Accordingly, basic earnings per share and diluted earnings per share have been calculated on the assumption that the said stock split was implemented at the beginning of the fiscal year ended February 28, 2026 (the previous fiscal year). (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share As of Millions of yen Millions of yen % Yen August 31, 2026 1,588,272 917,791 56.4 1,974.05 February 28, 2026 1,647,981 895,706 53.1 1,932.16 (Reference) Equity (Shareholders’ equity + Accumulated other comprehensive income): As of August 31, 2026: ¥895,580 million 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.
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As of February 28, 2026: ¥875,223 million 2. Dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended February 28, 2026 – 133.50 – 23.00 – Fiscal year ending February 28, 2027 – 24.00 Fiscal year ending February 28, 2027 (Forecast) – 24.00 48.00 (Note) Revisions to the most recently announced dividend forecast: No The Company implemented a 5-for-1 stock split of its common shares on September 1, 2025. The dividend per share for the second quarter-end of the fiscal year ended February 28, 2026 represents the actual dividend amount before the said stock split. The year-end dividend per share for the fiscal year ended February 28, 2026 represents the amount after the stock split. The total annual dividends per share for the fiscal year ended February 28, 2026 is not presented as a simple aggregation is not possible due to the stock split. If the stock split were not taken into account, the year-end dividend would be ¥115.00 per share, and the annual dividends would be ¥248.50 per share. 3. Consolidated financial results forecast for the fiscal year ending February 28, 2027 (March 1, 2026– February 28, 2027) (Percentages represent year-on-year changes.) Net sales EBITDA Operating income Ordinary income Net income attributable to owners of the parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 2,555,000 76.1 162,300 74.0 99,400 57.7 98,100 55.5 41,500 (2.7) 91.62 (Note) Revisions to the most recently announced earnings forecast: No Notes (1) Significant changes in the scope of consolidation during the period: None (2) Application of the specific accounting methods for preparing the semi-annual consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates and restatement (i) Changes in accounting policies due to revision of accounting standards and other regulations: None (ii) Changes in accounting policies other than (i): None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of shares issued (common shares) (i) Total number of shares issued at the end of the period (including treasury shares) As of August 31, 2026 454,659,990 shares As of February 28, 2026 454,308,990 shares (ii) Number of treasury shares at the end of the period As of August 31, 2026 983,568 shares As of February 28, 2026 1,331,029 shares (iii) Average number of shares outstanding during the period Six months ended August 31, 2026 453,233,584 shares Six months ended August 31, 2025 243,495,628 shares (Notes) 1. The Company implemented a 5-for-1 stock split of its common shares on September 1, 2025. The average number of shares outstanding during the period has been calculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year. 2. The number of treasury shares at the end of the period includes the Company’s shares held by the stock-granting Employee Stock Ownership Plan Trust (the “ESOP Trust”) (956,465 shares as of August 31, 2026; 1,304,465 shares as of February 28, 2026). In addition, the average number of shares outstanding during the period is calculated after deducting the average number of the Company’s shares held by the ESOP Trust during the period. * Semi-annual financial results reports are not subject to review by certified public accountants or an audit firm.
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* Note on use of financial forecasts and other special items This document contains projections of performance based on information currently available and is therefore subject to significant uncertainties. Actual results may differ from the above figures due to changes in business conditions. Please refer to page 3 of the supplementary materials for further details about the above financial forecasts.
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- 1 - Contents of supplementary materials 1. Summary of Consolidated Financial Results, etc............................................................................................. 2 (1) Summary of Consolidated Financial Results for the Six Months Ended August 31, 2026 ......................... 2 (2) Summary of Consolidated Financial Position for the Six Months Ended August 31, 2026........................ 3 (3) Consolidated Financial Forecasts and Other Forward-Looking Statements ............................................... 3 2. Semi-annual Consolidated Financial Statements and Key Notes .................................................................... 4 (1) Semi-annual Consolidated Balance Sheets ................................................................................................. 4 (2) Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income .............................................................................................................................. 6 Semi-annual Consolidated Statements of Income ....................................................................................... 6 Semi-annual Consolidated Statements of Comprehensive Income ............................................................. 7 (3) Semi-annual Consolidated Statements of Cash Flows ................................................................................ 8 (4) Notes to Semi-annual Consolidated Financial Statements ........................................................................ 10 Special Accounting Methods for Presenting Semi-annual Consolidated Financial Statements ............... 10 Significant Changes in Shareholders’ Equity ............................................................................................ 10 Going Concern Assumption ...................................................................................................................... 10
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- 2 - 1. Summary of Consolidated Financial Results, etc. (1) Summary of Consolidated Financial Results for the Six Months Ended August 31, 2026 In the drugstore sector, the competitive landscape continues to intensify due in part to an increase in the number of stores across regions, including those of businesses in other industries, and to changes in the conditions in trade areas. In addition, the quality of competition has become even more sophisticated due to progress in restructuring both within and beyond the industry as well as the collaboration across industries and types of business. On the other hand, in addition to growing healthcare demand associated with the ongoing population aging, demand in the dispensing field has been increasingly captured through the promotion of dispensing pharmacies and M&A of pharmacy chains by companies across the industry, resulting in growth in dispensing pharmacy sales for the industry as a whole. Furthermore, companies have been expanding their food category offerings with the aim of increasing customer visit frequency and meeting demand for greater convenience. Through these initiatives, the range of offerings by drugstores has expanded, and the market size continues to expand. Under these circumstances, the Company completed its business integration with WELCIA HOLDINGS CO., LTD. on December 1, 2025, and has been promoting various initiatives to realize integration synergies and build a value creation base in the first year of its newly formulated Medium -Term Management Plan (FY2/2027–FY2/2029). In the merchandise area, the Company has been integrating its merchandising organizations in preparation for the future integration of merchandising operations, while developing its new private brand “Karada to Kurashi ni, +1,” mutually introducing each company’s existing private brands, and standardizing products promoted by both companies, among other initiatives. In addition, ahead of the integration of merchandising operations in certain categories starting in the second half of the current fiscal year, the Company has been preparing to integrate product strategies and purchasing operations. In the systems and digital transformation (DX) area, the Company has been integrating the organizations and implementation frameworks of both companies in preparation for the future integration of core systems and has been building a common infrastructure, including core systems , product master data, customer ID, and customer database. In addition, the Company has been preparing to introduce a joint point program and a unified app, and developing cross-group customer touchpoints and data utilization infrastructure. In store development, the Company has divided Japan into six regional blocks and has been conducting cross- group store development and management under this structure, while strengthening dominant market areas by leveraging the Group’s nationwide store network, opening quality-focused new stores, reviewing unprofitable stores, and renovat ing existing stores. In addition, with the aim of increasing customer visit frequency and expanding trade areas, the Company has been rolling out its Drug & Food model, which features an expanded food category, in areas where demand is expected. As a result, during the six-month period under review, the Group opened 53 new stores and closed 77 stores, bringing the total number of directly managed stores of the Group in Japan to 5,652 as of August 31, 2026. TSURUHA Group: Store Openings and Closures in Japan (Number of stores) Number of stores at previous fiscal year-end (Feb. 28, 2026) Openings Closures Net change Number of stores at second quarter-end (August 31, 2026) of which: prescription dispensing stores Hokkaido 453 1 2 (1) 452 153 Tohoku 797 9 14 (5) 792 301 Kanto 1,826 20 22 (2) 1,824 1,354 Chubu 854 2 9 (7) 847 626 Kinki 611 10 11 (1) 610 465 Chugoku 544 4 11 (7) 537 248 Shikoku 293 3 3 – 293 103 Kyushu and Okinawa 298 4 5 (1) 297 88 Total for Japan 5,676 53 77 (24) 5,652 3,338 (The figures above exclude 36 overseas stores.)
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- 3 - As a result of the above, for the six-month period under review, TSURUHA Holdings reported net sales of ¥1,275,514 million (up 128.7% year on year), operating income of ¥54,770 million (up 92.6% year on year), ordinary income of ¥ 54,850 million (up 90.3% year on year) , and net income attributable to owners of the parent of ¥30,252 million (up 48.5% year on year). (2) Summary of Consolidated Financial Position for the Six Months Ended August 31, 2026 (Assets, Liabilities, and Net Assets) As of the end of the second quarter under review , assets totaled ¥ 1,588,272 million, a decrease of ¥ 59,708 million compared with the previous fiscal year -end. Current assets totaled ¥ 627,964 million, a decrease of ¥51,445 million compared with the previous fiscal year -end. This was mainly due to a decrease of ¥ 60,692 million in cash and deposits , partly reflecting the impact of the previous fiscal year -end falling on a non - business day for financial institutions, and an increase of ¥16,151 million in accounts receivable – trade. Non- current assets totaled ¥960,308 million, a decrease of ¥8,263 million compared with the previous fiscal year- end. This was mainly due to decreases of ¥12,312 million in goodwill and ¥2,287 million in investment securities, partly offset by an increase of ¥7,233 million in property, plant and equipment, mainly for new store openings and renovations to enhance the competitiveness of existing stores. Liabilities totaled ¥670,481 million, a decrease of ¥81,794 million compared with the previous fiscal year-end. Main contributor includes a decrease of ¥70,986 million in accounts payable – trade. Net assets totaled ¥917,791 million, an increase of ¥22,085 million compared with the previous fiscal year-end. This was mainly due to an increase of ¥30,252 million in retained earnings as a result of net income attributable to owners of the parent, partly offset by cash dividends paid of ¥10,448 million. As a result, the equity ratio was 56.4%, up 3.3 percentage points from the previous fiscal year-end. (Cash Flows) As of the end of the second quarter under review, cash and cash equivalents (net cash) totaled ¥140,694 million, a decrease of ¥60,615 million compared with the previous fiscal year -end, partly due to the impact of the previous fiscal year-end falling on a non-business day for financial institutions. The Group’s cash flow position and their factors during the six-month period under review are as follows: (Cash Flows from Operating Activities) For the six-month period under review, net cash used in operating activities totaled ¥17,015 million (compared with net cash provided by operating activities of ¥47,100 million in the same period of the previous fiscal year). This was mainly due to negative factors, including a decrease of ¥71,682 million in notes and accounts payable – trade, income taxes paid of ¥22,611 million, and an increase of ¥16,129 million in notes and accounts receivable – trade、 which outweighed positive factors, including income before income taxes of ¥ 54,986 million, depreciation of ¥18,972 million, and amortization of goodwill of ¥12,344 million. (Cash Flows from Investing Activities) For the six-month period under review, net cash used in investing activities totaled ¥19,901 million (up 213.8% year on year). This was mainly due to purchase of property, plant and equipment of ¥1 8,342 million for new store openings and renovations to enhance the competitiveness of existing stores and other factors. (Cash Flows from Financing Activities) For the six-month period under review, net cash used in financing activities totaled ¥23,869 million (up 102.9% year on year) . This was mainly due to repayments of long -term borrowings of ¥5 0,923 million and cash dividends paid of ¥10,447 million, which were partly offset by proceeds from long-term borrowings of ¥43,000 million. (3) Consolidated Financial Forecasts and Other Forward-Looking Statements The consolidated earnings forecast s for the full fiscal year remain unchanged from those announced in the “Consolidated Financial Results for the Fiscal Year Ended February 28, 2026 (Under Japanese GAAP) ” released on April 9, 2026.
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- 4 - 2. Semi-annual Consolidated Financial Statements and Key Notes (1) Semi-annual Consolidated Balance Sheets (Millions of yen) As of February 28, 2026 As of August 31, 2026 Assets Current assets Cash and deposits 202,130 141,437 Accounts receivable – trade 122,481 138,633 Merchandise 307,924 302,722 Raw materials and supplies 682 729 Other 46,294 44,524 Allowance for doubtful accounts (103) (82) Total current assets 679,409 627,964 Non-current assets Property, plant and equipment Buildings and structures, net 188,934 190,503 Tools, furniture and fixtures, net 19,303 19,630 Land 39,724 42,229 Leased assets, net 62,436 63,443 Construction in progress 3,035 4,883 Other, net 272 248 Total property, plant and equipment 313,706 320,939 Intangible assets Goodwill 454,593 442,280 Software 12,364 11,651 Other 2,699 4,050 Total intangible assets 469,657 457,982 Investments and other assets Investment securities 24,845 22,557 Deferred tax assets 36,384 35,039 Retirement benefit asset 438 174 Guarantee deposits 119,518 119,465 Other 4,224 4,351 Allowance for doubtful accounts (202) (202) Total investments and other assets 185,208 181,386 Total non-current assets 968,572 960,308 Total assets 1,647,981 1,588,272
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- 5 - (Millions of yen) As of February 28, 2026 As of August 31, 2026 Liabilities Current liabilities Accounts payable – trade 375,592 304,606 Current portion of long-term loans payable 41,389 12,419 Accounts payable – other 29,869 24,945 Lease obligations 12,302 12,531 Income taxes payable 25,437 22,896 Contract liability 20,779 21,426 Provision for bonuses 13,162 11,752 Provision for directors’ bonuses 816 479 Provision for point card certificates 269 278 Provision for loss on store closings 1,979 1,701 Other 25,967 30,975 Total current liabilities 547,566 444,014 Non-current liabilities Long-term loans payable 98,864 119,944 Lease obligations 55,932 56,180 Deferred tax liabilities 911 866 Retirement benefit liability 10,397 10,906 Asset retirement obligations 28,215 28,307 Provision for loss on store closings 3,902 3,818 Other 6,485 6,442 Total non-current liabilities 204,708 226,466 Total liabilities 752,275 670,481 Net assets Shareholders’ equity Capital stock 12,300 12,637 Capital surplus 587,912 588,249 Retained earnings 263,416 283,086 Treasury shares (3,402) (2,500) Total shareholders’ equity 860,225 881,473 Accumulated other comprehensive income Valuation difference on available-for-sale securities 14,724 13,893 Foreign currency translation adjustment (38) 193 Remeasurements of defined benefit plans 311 19 Total accumulated other comprehensive income 14,997 14,106 Share acquisition rights 596 513 Non-controlling interests 19,886 21,697 Total net assets 895,706 917,791 Total liabilities and net assets 1,647,981 1,588,272
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- 6 - (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 Net sales 557,831 1,275,514 Cost of sales 389,048 881,924 Gross profit 168,782 393,589 Selling, general and administrative expenses 140,338 338,818 Operating income 28,444 54,770 Non-operating income Interest income 67 460 Subsidy income 120 619 Gain on donation of equipment 216 266 Compensation income 428 374 Other 816 1,232 Total non-operating income 1,649 2,954 Non-operating expenses Interest expenses 1,017 2,349 Other 258 524 Total non-operating expenses 1,275 2,874 Ordinary income 28,818 54,850 Extraordinary income Gain on sale of non-current assets 2 180 Gain on sale of investment securities 6,682 1,161 Reversal of provision for loss on store closings 203 465 Other – 223 Total extraordinary income 6,888 2,031 Extraordinary losses Loss on retirement of non-current assets 9 69 Loss on sale of non-current assets 6 17 Impairment losses 57 554 Provision for loss on store closings 1,610 1,172 Expenses related to corrections to annual earnings results for past fiscal years 250 – Other – 81 Total extraordinary losses 1,934 1,894 Income before income taxes 33,772 54,986 Income taxes 11,803 23,524 Net income 21,968 31,462 Net income attributable to non-controlling interests 1,603 1,209 Net income attributable to owners of the parent 20,365 30,252
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- 7 - Semi-annual Consolidated Statements of Comprehensive Income (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Net income 21,968 31,462 Other comprehensive income Valuation difference on available-for-sale securities (349) (803) Foreign currency translation adjustment – (18) Remeasurements of defined benefit plans, net of tax (33) (311) Total other comprehensive income (383) (1,133) Comprehensive income 21,585 30,328 Comprehensive income attributable to: Owners of the parent 19,987 29,121 Non-controlling interests 1,597 1,207
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- 8 - (3) Semi-annual Consolidated Statements of Cash Flows (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Cash flows from operating activities Income before income taxes 33,772 54,986 Depreciation 8,177 18,972 Impairment loss 57 554 Amortization of goodwill 1,411 12,344 Increase (decrease) in allowance for doubtful accounts (2) (21) Increase (decrease) in provision for bonuses 339 (1,410) Increase (decrease) in provision for directors’ bonuses (177) (337) Increase (decrease) in net defined benefit liability 59 (88) Increase (decrease) in provision for point card certificates (8) (54) Increase (decrease) in provision for loss on store closings 952 (155) Interest and dividend income (215) (711) Subsidy income (120) (619) Interest expenses 1,017 2,349 Share of loss (profit) of entities accounted for using equity method – 135 Gain on donation of equipment (216) (266) Loss on retirement of non-current assets 9 69 Loss (gain) on sales of non-current assets 4 (162) Loss (gain) on sales of investment securities (6,737) (1,080) Decrease (increase) in notes and accounts receivable - trade (15,038) (16,129) Decrease (increase) in inventories 1,167 6,192 Increase (decrease) in notes and accounts payable - trade 24,822 (71,682) Increase (decrease) in contract liability 716 647 Increase (decrease) in accrued consumption taxes (933) 2,867 Other 4,581 643 Subtotal 53,638 7,044 Interest and dividend income received 159 299 Subsidy received 120 619 Interest expenses paid (1,015) (2,367) Income taxes paid (5,802) (22,611) Net cash provided by (used in) operating activities 47,100 (17,015)
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- 9 - (Millions of yen) Six months ended August 31, 2025 Six months ended August 31, 2026 Cash flows from investing activities Purchase of property, plant and equipment (10,345) (18,342) Proceeds from sales of property, plant and equipment 216 408 Purchase of software (1,328) (2,956) Purchase of investment securities – (44) Proceeds from sales of investment securities 6,782 1,638 Payments for guarantee deposits (2,774) (2,751) Proceeds from collection of guarantee deposits 1,569 2,537 Purchase of shares of subsidiaries resulting in change in scope of consolidation – (10) Other (462) (380) Net cash provided by (used in) investing activities (6,342) (19,901) Cash flows from financing activities Repayments of short-term borrowings (5,000) – Proceeds from long-term borrowings 5,000 43,000 Repayments of long-term borrowings (4,600) (50,923) Redemption of bonds – (5) Repayments of lease obligations (1,970) (6,862) Proceeds from issuance of new shares 464 467 Purchase of treasury shares – (1) Proceeds from sale of treasury shares – 903 Cash dividends paid (5,450) (10,447) Dividends paid to non-controlling interests (205) (0) Net cash provided by (used in) financing activities (11,763) (23,869) Effect of exchange rate change on cash and cash equivalents – 8 Net increase (decrease) in cash and cash equivalents 28,995 (60,778) Cash and cash equivalents at beginning of the period 92,605 201,309 Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation – 163 Cash and cash equivalents at end of the period 121,601 140,694
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- 10 - (4) Notes to Semi-annual Consolidated Financial Statements Special Accounting Methods for Presenting Semi-annual Consolidated Financial Statements Calculation of Tax Expenses Regarding tax expenses, except for certain consolidated subsidiaries, the Group has reasonably estimated the effective tax rate on income before income taxes for the fiscal year (including the period under review) after the application of tax-effect accounting, which is calculated by multiplying income before income taxes by the said estimated effective tax rate. However, in cases where calculating tax expenses using the said estimated effective tax rate would result in a significant lack of rationality, the Group uses the statutory effective tax rate. “Income taxes – deferred” is included in “Income taxes.” Significant Changes in Shareholders’ Equity Not applicable. Going Concern Assumption Not applicable.