BASE FOOD,Inc.

During the interim accounting period, ベースフード advanced the development and improvement of the BASE FOOD® series, centered on staple foods providing complete nutrition (Note 1), with BASE BREAD as its core product. Revenue was ¥8,352,359 thousand, up 8.5% year on year; operating loss was ¥194,519 thousand, ordinary loss was ¥195,208 thousand, and interim net loss was ¥255,247 thousand. The Company sought to expand its customer base and improve retention through product renewals, new product launches and advertising investment, using three channels: its own e-commerce channel, third-party e-commerce channels and wholesale sales. On 10 June 2026, it began selling the new BASE Pound Cake Caramel product. In September 2026, it plans to launch the LITE series, a range of nutritious, easy-to-eat breads, at a suggested retail price of ¥198, excluding tax. The Company aims to increase average customer spend through new product launches. It also aims to expand sales through its own e-commerce channel, wholesale sales and third-party e-commerce channels by using television commercials, outbound calls and reactivation initiatives leveraging OMO. Overview of new products and initiatives - Improved taste through the renewal of BASE BREAD Chocolate - BASE Pound Cake Caramel, launched on 10 June 2026 - LITE series, scheduled for launch in September 2026, comprising 3 products: Chocolate Banana, Caramel and Milk, at a suggested retail price of ¥198, excluding tax - Revenue from the Company's own e-commerce channel was ¥5,516,721 thousand, up 7.6% year on year - The expected trend in the number of subscription members on the Company's own e-commerce channel is as follows (at each quarter-end, in units of 10,000 people): - First quarter of the fiscal year ending February 2026: 23.2 - Second quarter of the fiscal year ending February 2026: 22.9 - Third quarter of the fiscal year ending February 2026: 23.2 - Fourth quarter of the fiscal year ending February 2026: 23.5 - First quarter of the fiscal year ending February 2027: 25.6 - Second quarter of the fiscal year ending February 2027: 25.9 - Wholesale sales revenue was ¥2,075,961 thousand, up 6.1% year on year - In the overseas business, resources were concentrated on the launch in China. In Hong Kong, the number of stores carrying the products expanded to approximately 1,000. From 10 September 2026, the Company will begin a model under which Panpan Food Group, a major local Chinese food manufacturer, manufactures the products and they are sold through Hema Fresh, a business under Alibaba Group, with approximately 600 stores planned. Revenue was ¥80,096 thousand, down 33.3% year on year. - As the proportion of the Complete Nutrition Food Business, which includes sales from the China business, Hong Kong business and third-party e-commerce channels, is high and broadly consistent with the overall ratio, detailed segment information has been omitted.