Securities Report - 58th Fiscal Period (2025/05/01 - 2026/04/30)

Kakiyasu Honpo Co., Ltd. Securities Report - 58th Fiscal Period (2025/05/01 - 2026/04/30)

In accordance with the Financial Instruments and Exchange Act, we hereby submit the Securities Report for the 58th fiscal period (from May 1, 2025 to April 30, 2026).

This report has been prepared as part of our information disclosure obligations to investors, aiming to provide accurate and timely understanding of the Company's financial position, operating results, and cash flow situation.

The contents are as follows:

Overview of Management Policies and Performance

The Company's management policies for the current fiscal period are centered on "creating a sustainable food culture" and "deepening regionally integrated services." In addition to improving operational efficiency at existing stores, we are strategically expanding into new locations. We are also addressing sustainability by reducing food waste and increasing the procurement ratio of locally sourced ingredients.

Overview of Financial Position

Total assets at the end of the fiscal period amounted to JPY 18.2 billion, an increase of 3.2% compared to the previous year. Total liabilities stood at JPY 10.8 billion (+2.8% year-on-year), and net assets reached JPY 7.4 billion (+4.0% year-on-year). The equity ratio was 40.7%, indicating a stable financial foundation.

Overview of Operating Results

Sales for the period totaled JPY 15.8 billion (+4.1% year-on-year), operating profit was JPY 1.23 billion (+5.8%), and net profit was JPY 870 million (+3.6%). Sales growth was driven by steady performance at existing stores and contributions from new outlets. Amid ongoing high raw material costs, we maintained profitability through price adjustments and operational efficiency improvements.

Segment Information

The Company's business is divided into the following two segments:

- Restaurant Business: Centered on the Japanese cuisine restaurant brand "Kakiyasu," generating JPY 14.2 billion in sales (90% of total) - Food Sales Business: Retail and e-commerce of prepared meals and boxed lunches, with JPY 1.6 billion in sales (10% of total)

The restaurant business continues expansion primarily in urban areas. The food sales business achieved 12% year-on-year growth through enhanced e-commerce platform operations.

Personnel and Executive Compensation

The Board of Directors consists of eight members, including three external directors (37.5%). Total executive compensation increased by 4.5% year-on-year to JPY 280 million. The proportion of performance-linked compensation has been increased to strengthen corporate governance.

Social Responsibility and Environmental Initiatives

To achieve the SDGs, the Company is advancing the following initiatives:

- Reduce food waste by 50% by 2030 - Increase the procurement ratio of locally sourced ingredients to over 40% by 2026 - Reduce plastic usage across all stores (target year: 2027)

Audit and Internal Controls

The accounting auditor is Azusa Audit Corporation. The internal control system complies with the Internal Control Reporting System under the Financial Instruments and Exchange Act, and no significant deficiencies were identified during the period.

Outlook for the Future

The business outlook for the 59th fiscal period (May 1, 2026 - April 30, 2027) is as follows:

- Sales: JPY 16.5 billion (+4.4%) - Operating Profit: JPY 1.30 billion (+5.7%) - New Store Openings: 5 stores (2 in Kanto, 2 in Kansai, 1 in Chubu)

We will strengthen human resource development and digital investment to achieve sustainable growth.