TOHO Co.,Ltd. Q4 FY2026 earnings call

• Strategic Resource Focus • After exiting the food supermarket business in the 2025 January term, Toho has concentrated all management resources on its core business-to-business food wholesale and food service support operations, to strengthen its profit base. • The firm prioritizes growth and investment in its core DTB segment, which generates the vast majority of total revenue.

• Business Model Strength • Toho operates as a comprehensive B2B support provider for the out-of-home food business, beyond only food wholesale: it supports clients from restaurant opening through daily operations, offering private brand ingredients, operational IT systems, hygiene management, and capital store infrastructure services. • The segmented service model caters to different client sizes: large customers receive recurring delivery via the DTB segment, while small local restaurants and neighborhood demand are served via in-store pickup at C&C locations, and FSL provides end-to-end support for non-food needs. This model reduces reliance on pure price competition compared to single-product wholesalers and builds longer-term client relationships.

• Recent Operational Expansion to Capture Inbound Demand • Macroeconomic tailwinds from record inbound tourism: 2025 saw a record 42.6836 million inbound visitors to Japan, 177.87 million guest nights for foreign visitors, and high hotel occupancy rates (75.3% for business hotels, 74.2% for city hotels). Japan Food Service Association data shows 2025 out-of-home food sales reached 107.3% of the prior year level, driving increased ingredient ordering for hotels, tourist area restaurants and catering operations, which primarily flows through Toho's core DTB segment. • In 2025, Toho completed new relocation of its Kyoto and Kanazawa branches via subsidiary Toho Food Service, and opened a new A-Price store and sales office in Miyakojima (a popular tourism destination) to proactively capture growing inbound and hotel demand.

For the 2026 January term, Toho has three active core product segments after exiting the food supermarket business: 1) DTB (Distributor) business (business-to-business wholesale food distribution): Contributed 77.3% of total company revenue, and is the firm's core main business segment. 2) C&C (Cash and Carry) business (cash-and-carry wholesale food operations including the A-Price brand of professional ingredient stores): Contributed 17.6% of total company revenue. 3) FSL (Food Solution) business (business support systems, quality/hygiene management, kitchen equipment, store interior design and construction for food service clients): Contributed 5.1% of total company revenue. In the 2025 January term, the exited food supermarket business reported 4.651 billion yen in revenue and an operating loss of 0.835 billion yen, which dragged down consolidated operating profit for that period. Consolidated operating profit for the 2026 January term reached 7.853 billion yen, an increase from the prior year, with the exit of the underperforming food supermarket business contributing to this profit improvement.

• The company guides an annual dividend of 61 yen per share for the 2027 January term, representing a forward dividend yield of 4.49% based on the closing share price of 1,359 yen as of April 24, 2026.
• No upward or downward revision to prior core business growth guidance is stated; the firm maintains its strategy of proactive expansion into high-demand tourism and hotel markets to leverage inbound growth tailwinds.

• Intensified price and market competition in the Japanese food wholesale industry is a persistent market risk, though Toho's diversified comprehensive support model reduces exposure relative to pure-play single-product wholesale firms. No other specific operational or financial risks are discussed in this transcript.

No formal question and answer section from the earnings call is included in this transcript. This document is a pre-seminar investment analysis piece covering Toho, ahead of a public online IR seminar scheduled for May 16, 2026, where real-time Q&A with management will be held.