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Corporate Overview and Shareholder Context

• Duskin was founded in 1963, listed on the Tokyo Prime Exchange, and operates a core franchise-based business model with shared governance via franchisee associations that enable collaborative decision-making between headquarters and franchise owners. Directly owned locations are retained for training, product testing, and operational experience to support franchisee guidance, and will remain a permanent part of the business structure.
• The share price has trended upward, hitting an all-time high of 4,400 JPY in December 2025, with a current dividend yield of approximately 2.7%.

Shareholder Return Policy

• Updated the dividend policy for the Mid-Term Management Plan 2028 (covering FY2026 March through FY2028 March): The payout will be the higher of 60% consolidated payout ratio (maintained from the prior plan) or 3% DOE (increased from 2.5% in the prior plan). The 3% DOE acts as a floor even in the event of a net loss, to give shareholders certainty and stability.
• In the prior Mid-Term Plan 2022, Duskin completed two 5 billion yen share buybacks for a total of 9.999 billion yen, hitting its target. The current plan no longer sets a 100% total return target, instead allowing flexible use of cash for ROE improvement, including opportunistic share buybacks, M&A, and growth investment.
• Shareholder benefit program: 1,000 JPY in vouchers semi-annually for 100-299 shares, 2,000 JPY for 300+ shares, plus an extra 500 JPY semi-annually for shareholders holding over 3 years. Vouchers are usable at both Duskin and Mos Food Services locations reciprocally, which is a popular program.

Mid-Term Management Plan 2028 Strategic Priorities

• Core strategic framework: Three "Shin-based" priorities (Shinka = new business creation, Shinka = evolution of existing adjacent businesses, Shinka = deepening of core businesses) plus strengthening of the management base, aligned with a 10-year long-term strategy.
• New business creation (Newka): - Entered a capital and business alliance with Nash Co., a popular frozen meal delivery brand, to leverage Duskin's existing customer access via home visits and Nash's strength with younger consumers, with synergies currently under exploration. - Added a new priority House Maintenance segment: Aims to deliver one-stop service for all home-related needs including emergency repairs, renovation, vacant home management, and home equipment, leveraging the company's existing in-home visiting network.
• Evolution of adjacent businesses (Shinka): Launched Duskin Rescue, a lock emergency service and regular rekeying business, currently rolling out franchises in Tokyo and Osaka with stronger than expected demand for regular rental property rekeying.
• Deepening of core businesses (Shinka): Launched a full disaster preparedness support service, including evacuation site setup/management partnerships with local governments and disaster reduction training packages via a third-party partnership, which has seen strong market demand aligned with the company's CSV (creating shared value) strategy.
• Food Group initiatives: Mister Donut is celebrating its 55th anniversary, with the recent hugely popular Mocchurin donut launch that saw unanticipated demand which the company could not meet due to supply constraints. It is rolling out kitchen-less stores in high convenience locations, with ongoing trial and error to refine the model. The company is also developing the new Katsu and Katsu and Napoli no Shokutaku brands for future franchise expansion.
• Overseas expansion: Expanding across Asia, using multiple formats (master franchise, joint venture, subsidiary) and brand strategies: operating Mister Donut in appropriate markets and Big Apple (the acquired halal-certified donut chain, the largest in Malaysia) in markets requiring halal certification, with plans to continue entering new markets across the region.
• Governance and sustainability: Targeting to reduce the ratio of policy-held holdings to 10% of consolidated net equity by 2028, down from 13.2% at the end of last fiscal year. The company has launched the Duskin Environmental Vision 2050 focused on green economy, materials, energy, and community initiatives, including local clean-up projects run with franchisees.
• Management base strengthening: Focused on IT/DX investment to maximize customer experience (CX), with all digital investments ultimately aimed at improving customer satisfaction and perceived value.

• The key target for the final year of Mid-Term Management Plan 2028 (FY2028 March) is to achieve ROE of 7% or higher.
• The Homenet Group is expected to deliver the highest profit growth over the plan period, with most growth materializing in the final (third) year as new initiatives require upfront investment in DX, franchise development, and operational scaling, with preparation ongoing in the first two plan years.
• The 60% consolidated payout ratio will be maintained for the full duration of the 3-year Mid-Term Management Plan 2028, with no planned changes to the policy during this period.

For the 2025 March fiscal year, total consolidated net sales were 188.7 billion yen, split into three segments: 1. Homenet Group (訪販グループ): Accounts for approximately 67% of total consolidated revenue. It is further divided into: - Clean Service: The largest sub-segment, offering cleaning and hygiene product rental/sales, serving 3.96 million households and 980,000 business locations across 1,802 franchise locations, holding ~90% household market share in Japan and industry leading position in the business market. - Care Service: 5 lines of service including air conditioning cleaning, housekeeping, pest control, garden care, and home repair. - Senior Care: Fast-growing sub-segment offering medical equipment/assisted device rental and non-insured elderly care services. - Other: Event support and general equipment rental, which is seeing strong current demand. 2. Food Group (フードグループ): Accounts for approximately 30% of total consolidated revenue, over 90% of which comes from Mister Donut, which operates 1,041 locations. The remaining 10% is split between two smaller concepts: Katsu and Katsu (16 direct tonkatsu restaurants in the Kansai region) and Napoli no Shokutaku (an Italian restaurant chain acquired via M&A, centered in North Kanto). 3. Other/Unallocated: Makes up the remaining ~3% of total consolidated revenue. Total system-wide customer-facing sales across all franchises was 454 billion yen for the last fiscal year, with 6,812 total franchise locations across all segments.

No specific material operational or financial risks were discussed in this IR seminar transcript.

Q: What is the expected profit growth curve for the Homenet Group over the Mid-Term Management Plan 2028, and will growth be gradual or concentrated in the final year? / A: Management expects growth to be concentrated in the final year of the 3-year plan. New initiatives such as the House Maintenance segment require time for DX system implementation and franchise network development, so the first two years are focused on preparation to hit targets in the third year. / Q: Will Katsu and Katsu and Napoli no Shokutaku expand via franchise or continue with direct operation for the near term? What is your M&A selection criteria? / A: Direct operation is only for building and testing a replicable profitable franchise package, to resolve launch issues and build know-how before offering the concept to franchisees. Both brands have a formal stated goal of future franchise expansion, and the company is currently focused on refining the model. For M&A, the company prioritizes potential franchise scalability and alignment with Duskin's existing strengths, synergies and corporate philosophy over immediate standalone profit, matching its core franchise-focused business model. / Q: Why did you raise the DOE to 3% and why is the 60% payout ratio maintained at this high level compared to peers? Will the payout ratio stay at 60% for the entire plan period? / A: The 3% DOE floor reduces investor uncertainty, because payout ratio alone can create uncertainty during periods of volatile earnings like the COVID-19 pandemic. The 2.5% DOE from the prior plan was too low relative to current dividend levels, so the increase provides meaningful downside protection even if the company reports a temporary loss. The 60% payout ratio is appropriate for Duskin because the franchise business model requires limited capital investment and generates consistent excess cash flow, and this level will be maintained for the full Mid-Term Management Plan 2028. / Q: Why did you drop the 100% total return target from the prior plan, and how will you decide on the timing and size of share buybacks going forward? / A: Dropping the fixed 100% total return target gives the company more flexibility to allocate capital to activities that help hit the 7% ROE target by 2028, including M&A and growth investment in addition to share buybacks. The company will conduct share buybacks opportunistically, based on stock price and other market conditions, rather than following a fixed schedule or size target.