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Overall Consolidated Performance

• Hitomairu (formerly Kakuyasu Group) delivered year-over-year revenue and profit growth for the second quarter, driven by strong sales to restaurant clients from new customer acquisition. Profit growth came from implemented price hikes and expanded private brand (PB) sales. Consolidated revenue reached 69.221 billion yen (+4.9% YoY), gross profit hit 16.603 billion yen (+9.3% YoY) with gross margin improving 1pp to 24.0%, operating profit was 0.909 billion yen (+21.1% YoY), ordinary profit was 0.911 billion yen (+27.6% YoY), and interim net profit was 0.372 billion yen (+31.6% YoY). • Selling, general and administrative expenses rose 1.256 billion yen YoY, driven by ¥152 million in system development costs for restructuring, ¥737 million in increased delivery costs from expanded use of independent contractor drivers, ¥108 million in higher rent from warehouse expansion for paid delivery, and ¥191 million in planned facility renovation costs.

Business Restructuring Progress (core focus of first year of mid-term plan)

The company is transforming from an alcoholic beverage retailer to a platform logistics company that leverages its existing distribution network to offer end-to-end order, delivery, and payment services to external companies, plus 3PL third-party logistics services, while retaining core liquor retail functions. Key initiatives: • Platform Construction: Developing an open system accessible to external companies, including large-scale overhauls of core back-end systems and new sub-systems: a "Marketplace" system for selling third-party products to restaurants and consumers, and a delivery management sub-system for third-party cargo. ¥130 million in restructuring costs have been incurred through Q2, with a full-year cost budget of ¥900 million, most allocated to system development. • Product Category Expansion: Expanding beyond alcohol to high-compatibility food products. In August, the company acquired a 23.67% stake (becoming the largest shareholder) in Mikulido Co., a restaurant-focused food products supplier, and launched a capital and business alliance. Hitomairu will provide its sales force to complement Mikulido's existing operations, creating mutual benefits. Expanding into perishables is part of the long-term strategy. • Paid Delivery Profit Improvement: Expanded an existing warehouse adjacent to the company's logistics center to support third-party logistics, prepared for an increase in refrigerated/freezer vehicles, and has already launched frozen product delivery for external clients, starting with logistics outsourcing for ES Kitchen, operator of the 100-yen corporate lunch service.

Existing Business Key Initiatives

• Individual restaurant sales reinforcement: Q2 individual restaurant customer count grew 4.4% YoY from focused sales efforts. • DX Push: 1) Adding efficiency features for distribution (route planning, warehouse picking); 2) Automating purchase ordering to cut inventory levels by 20%; 3) Renewing the restaurant ordering portal to automate manual sales tasks and improve productivity. • PB Product Expansion: PB sales grew 28% YoY, reaching 4% of total revenue. • Over-the-Counter Retail Restructuring: Strengthening duty-free sales outside of the currently strong Kyushu region, and consolidating unprofitable stores to align with the delivery-focused restructuring strategy.

Sustainability Initiatives

• Environment: Collected a cumulative 400 tons of waste cooking oil for use as SAF sustainable aviation fuel feedstock; added hybrid trucks to existing light EV van deployment to further cut GHG emissions. • Human Capital: Updated corporate philosophy and operating guidelines alongside the company name change, and is rolling out internal initiatives to embed the new direction.

• Full-year 2026 March term earnings guidance is maintained at the initial level. Even though year-to-date progress through the second quarter is 48.7% for revenue (within plan, as the key high-volume months of December and March fall in the second half) and 60-70% for profit metrics (ahead of plan), management maintained the original guidance due to conservative budgeting for restructuring costs. • The dividend policy was changed from "stable dividend" to progressive dividend, aligned with the new strategy of pursuing profit growth through restructuring. The full-year dividend forecast is maintained at the initial announced level.

1. Time-zone Delivery Business: Revenue of 41.032 billion yen, +6.4% year-over-year; Operating profit of 0.658 billion yen. Growth was driven by steady new high-quality individual restaurant customer acquisition, with both customer count and average order value growing stably. Home delivery saw a temporary post-price-hike pullback in April but recovered quickly, with August average order value lifted by increased order frequency despite fewer customers during the extended Obon holiday. This segment contributes 59.3% of total consolidated revenue. 2. Route Delivery Business: Revenue of 20.131 billion yen, +7.0% year-over-year; Operating profit of 0.247 billion yen. This segment serves chain restaurant clients, with stable customer count and average order value overall; August average order value rose due to a major chain's promotional campaign. This segment contributes 29.1% of total consolidated revenue. 3. Over-the-Counter Retail Business: Revenue of 7.092 billion yen, -8.6% year-over-year; Operating profit of 0.472 billion yen. Average order value held steady, but customer count declined due to store closures and sales footprint reduction. Temporary customer growth in July and August was driven by rice shortage-related purchasing. This segment contributes 10.2% of total consolidated revenue.

• System development for business restructuring carries inherent uncertainty: while major early challenges including existing data preparation have been completed, unforeseen major design changes or development delays could lead to budget overruns for the ¥900 million annual restructuring cost plan. Management has implemented progress monitoring and early issue detection processes to mitigate this risk. • The 2026 October alcohol tax revision may create temporary demand volatility: large price changes could trigger pre-change pent-up demand (front-loading) followed by a post-change demand drop, though specific impacts cannot be estimated yet as manufacturer price change details have not been released.

Q: What is the progress and outlook for the capital and business alliance with Mikulido? / A: The sales cooperation framework has been launched, and the company is now working to deepen this collaboration. The near-term priority is to get this cooperation model onto a stable, productive track, with other planned joint initiatives rolling out sequentially after that. This partnership is core to Hitomairu's strategy of expanding food product offerings.

Q: Does Hitomairu plan to enter the fresh produce (seafood, meat, vegetables) distribution and sales business? / A: Entry into fresh produce is aligned with the mid-term strategic goal of becoming a regionally focused logistics provider that handles a wide variety of products. Hitomairu is already leveraging its existing strong restaurant client base and adding refrigerated/freezer vehicles to build the capability to deliver more product types. The company will gradually expand its product range to include fresh produce as it optimizes delivery to match customer demand.

Q: Is the full-year ¥9 billion restructuring cost budget a conservative estimate, and is there risk of budget overruns? / A: The total ¥9 billion budget, which is dominated by system investment, is conservatively planned based on projected development timelines. Management acknowledges that system development carries uncertainty, and major unforeseen changes or delays could lead to overspending. The company has put in place regular progress monitoring to catch issues early, and prioritizes building the correct long-term logistics platform over sticking rigidly to budget, with development focused on delivering the strategic vision for the business.

Q: Why did Hitomairu (formerly Kakuyasu Group) change its company name? / A: The name change signals the company's structural transformation from an alcohol-focused retail business to a platform company offering end-to-end order, delivery, and payment services for all types of products, centered on its existing logistics network. The change communicates this new strategic direction to internal and external stakeholders, with both the alcohol retail (Kakuyasu) and logistics (Hitomairu Logistics) units building out paid third-party delivery capabilities, and the company will actively pursue more partnerships like the ES Kitchen agreement to grow its 3PL business.