Financial Results Presentation for the Fiscal Year Ending February 2026 | IZAWA TOWEL CO.,LTD. (365A) timely disclosure

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Scale

458

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Wording

Conditional

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Contents of this document

Financial results presentationFourth quarter of the fiscal year ending February 202611 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥10,283 million+104.7%

Operating profit¥581 million+91.1%

Ordinary income¥1,146 million+116.9%

Net income¥726 million+125.6%

Selling, general and administrative expensesAmount not stated

Gross Profit Margin

Rate21.9%

Year-on-year change (points)+1.2 percentage points

Operating profit margin

Rate5.7%

Year-on-year change (points)-0.8 percentage points

Results for the three months of the current quarter

Net Sales

¥2,554 million

Year on year against the same period last year106.3%

Revenue before rebates

¥2,633 million

Year on year against the same period last year107.0%

Gross profit after rebates

¥568 million

Gross profit margin after rebates22.2%

Full-year earnings forecast

Net Sales

¥11,650 million

Operating profit

¥825 million

Ordinary income

¥1,082 million

Net income for the current fiscal year

¥638 million

Net income before amortization of goodwill

¥840 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales94.5%

Gross profit89.9%

Operating profit64.6%

Ordinary income135.0%

Net income for the current fiscal year145.5%

Net income before amortization of goodwill132.4%

What the company explained in this material

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Assumed Exchange Rates¥150/USD

Calculation methodAverage exchange rate during the latest one-year period (March 2025 to February 2026)

New initiatives

Offline expansion of Towell Laboratory products
Full-scale rollout of the Towell Laboratory brand on Amazon US
Contract manufacturing of original beach towels for the 250th anniversary of the founding of the United States project
Increasing the proportion of production in India
Considering and negotiating overseas expansion with one of the world’s largest global retailers
Launching new functional products on Amazon.co.jp
Considering the introduction of IFRS by the fiscal year ending February 2029

Key KPIsA metric the company considers important as a management benchmark.

Number of offline stores carrying Towell Laboratory products1,000 Location
Amazon US bath towel ranking1,031st → 206th → 388th
Number of patents held21 Engagements
Amazon sales trend+9.0%
Year on year against the same period last year+9.0%
Domestic towel e-commerce sales penetration rateApproximately 15%

Segment results

ODM

Net Sales

¥5,747 million

Character IP

Net Sales

¥2,326 million

Net Sales

¥2,211 million

Medium-term management plan targets

Target fiscal yearFiscal year ending February 2029

Net Sales

¥15,000 million

Net income before amortization of goodwill

¥1,250 million

Financial targets

ROEMaintain and improve 15%

DOE10% target

Market Size / Share

Domestic daily necessities and gift towel marketApproximately ¥160–190 billion

Overseas bath towel marketApproximately ¥1.782 trillion

U.S. towel marketEstimated to be approximately five times the size of Japan’s market

Domestic towel e-commerce sales penetration rateApproximately 15%

E-commerce sales penetration rate for the household goods, furniture and interior market32%

Number of stores and locations

Number of storesMore than 1,000 offline stores carrying products

Number of employees

Number of Employees76 people

As ofEnd of February 2026

Changes during the period and hiring planStrengthening mid-career recruitment and continuing new graduate recruitment

Annual Dividend

Annual dividend per share¥42

Breakdown¥21 interim dividend, ¥21 year-end dividend

Acquisition of treasury shares

Acquisition period2/1～3/31

Number of shares acquired300,000 Shares

Total acquisition cost205 Shares

Amount unit¥ million

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fourth quarter of the fiscal year ending February 2026
Net Sales	¥10,283 million (YoY +104.7%)
Operating profit	¥581 million (YoY +91.1%)
Ordinary income	¥1,146 million (YoY +116.9%)
Net income	¥726 million (YoY +125.6%)
Gross Profit Margin	Rate 21.9% / Year-on-year change (points) +1.2 percentage points
Operating profit margin	Rate 5.7% / Year-on-year change (points) -0.8 percentage points
Selling, general and administrative expenses	非開示
Results for the three months of the current quarter	Net Sales ¥2,554 million / Revenue before rebates ¥2,633 million / Gross profit after rebates ¥568 million / Gross profit margin after rebates 22.2%
Full-year earnings forecast	Net Sales ¥11,650 million / Operating profit ¥825 million / Ordinary income ¥1,082 million / Net income for the current fiscal year ¥638 million / Net income before amortization of goodwill ¥840 million
Progress against full-year forecast	Net Sales 94.5% / Gross profit 89.9% / Operating profit 64.6% / Ordinary income 135.0% / Net income for the current fiscal year 145.5% / Net income before amortization of goodwill 132.4%
Segment results	ODM Net Sales ¥5,747 million / Year on year against the same period last year Not disclosed / Character IP Net Sales ¥2,326 million / Year on year against the same period last year Not disclosed / EC Net Sales ¥2,211 million / Year on year against the same period last year Not disclosed
Key KPIs	Indicator name Number of offline stores carrying Towell Laboratory products / Value 1,000 Location / Year on year against the same period last year Not disclosed, Indicator name Amazon US bath towel ranking / Value 1,031st → 206th → 388th / Year on year against the same period last year Not disclosed, Indicator name Number of patents held / Value 21 Engagements / Year on year against the same period last year Not disclosed, Indicator name Amazon sales trend / Value +9.0% / Year on year against the same period last year +9.0%, Indicator name Domestic towel e-commerce sales penetration rate / Value Approximately 15% / Year on year against the same period last year Not disclosed
Number of stores and locations	Number of stores More than 1,000 offline stores carrying products / Number of store openings and closures during the period Not disclosed
Number of employees	Number of Employees 76 people / As of End of February 2026 / Changes during the period and hiring plan Strengthening mid-career recruitment and continuing new graduate recruitment
Assumptions Underlying the Business Outlook	Assumed Exchange Rates ¥150/USD / Calculation method Average exchange rate during the latest one-year period (March 2025 to February 2026)
Medium-term management plan targets	Target fiscal year Fiscal year ending February 2029 / Net Sales ¥15,000 million / Net income before amortization of goodwill ¥1,250 million
Financial targets	ROE Maintain and improve 15% / DOE 10% target
Annual Dividend	Annual dividend per share ¥42 / Breakdown ¥21 interim dividend, ¥21 year-end dividend
Acquisition of treasury shares	Acquisition period 2/1～3/31 / Number of shares acquired 300,000 Shares / Total acquisition cost 205 Shares / Amount unit ¥ million
Market Size / Share	Domestic daily necessities and gift towel market Approximately ¥160–190 billion / Overseas bath towel market Approximately ¥1.782 trillion / U.S. towel market Estimated to be approximately five times the size of Japan’s market / Domestic towel e-commerce sales penetration rate Approximately 15% / E-commerce sales penetration rate for the household goods, furniture and interior market 32%
New initiatives	Offline expansion of Towell Laboratory products, Full-scale rollout of the Towell Laboratory brand on Amazon US, Contract manufacturing of original beach towels for the 250th anniversary of the founding of the United States project, Increasing the proportion of production in India, Considering and negotiating overseas expansion with one of the world’s largest global retailers, Launching new functional products on Amazon.co.jp, Considering the introduction of IFRS by the fiscal year ending February 2029

Items this document does not state (8)

Self-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsRisk amount incorporated into the outlookPayout ratioCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue recovered as demand was captured from the third quarter onward, despite the impact of inventory adjustments in the first half and production delays in India. Operating profit declined because the company prioritized strategic investments to support medium- to long-term growth, including strengthening its organizational structure in connection with the listing and investing in marketing and advertising. Ordinary profit and net income increased because foreign exchange gains were generated on forward foreign exchange contracts and foreign currency deposits as the yen weakened.

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