TOMS Financial Statements and Audit Report_FY2024 JP

FINANCIAL STATEMENTS Fiscal Years Ended February 28,2025 and AUDIT REPORT TOMS Co., Ltd. INDEPENDENT AUDITOR ’ S REPORT To the Shareholders of TOM S CO., LTD 3 - 16 - 3, Higashi, Shibuya - k u, Tokyo Japan We have audited the acc ompanying financial statements of TOMS CO., LTD , which comprise the balance sheet s as of February 28, 20 2 5 , and the re lated s tatement s of income, statements of changes in net assets for the year then ended. Pre paration of these financial statements are the responsibility of the company ’ s management . Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with Auditing standards generally accepted in Japan. T hose standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. A n audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. A n audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement ’ s presentation. We believe that our audit provides a reasonable basis for ou r opinion. I n our opinion, the financial statements , prepared in accordance with Accounting standard accepted in Japan, give a true and fair view of the state of the Company ’ s affairs as of February 28,20 2 5 and the results of its operations and comply with the Companies Act, and other applicable laws and regulations. We als o report that; a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit and made due verification thereof ; b) I n our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination of those books. c) T he financial statements are in agreement with the books of account of the company; and d) T he expenditure incurred was for the purpose of the Company ’ s business. Date: June 3 0 , 20 2 5 Certified Public Accountant Takayuki Nakagawa Certified Public Accountant Office 1 - 11 - 7, Suido, Bunkyo - ku, Tokyo Japan (Unit ： thousand of yen) Assets Current assets 18,343,458 Cash and deposits 4,972,815 Notes receivable-trade 348,686 Accounts receivable-trade 1,980,567 Merchandise 10,477,840 Prepaid expenses 52,890 Short-term loans receivable 349,340 Advances paid from subsidiaries and affiliates 4,437 Accounts receivable-other 37,945 Accrued revenues 84,822 Suspense payments 5,445 Deferred tax assets 33,168 Allowance for doubtful accounts △ 4,502 Noncurrent assets 17,945,508 Property, plant and equipment 3,534,913 Buildings 2,383,751 Machinery and equipment 195,415 Vehicles 0 Tools, furniture and fixtures 53,906 Land 901,838 Intangible assets 963,664 Telephone subscription right 3,638 Software 960,025 Investments and other assets 13,446,930 Stocks of subsidiaries and affiliates 934,692 Investments in capital of subsidiaries and affiliates 173,750 Long-term loans receivable 12,201,740 Claims provable in bankruptcy, claims provable in rehabilitation and other 16,804 Lease and guarantee deposits 53,292 Long-term prepaid expenses 2,045 Long-term deferred tax assets 79,728 Allowance for investment loss △ 15,124 Total Assets 36,288,967 Liabilities Current liabilities 2,805,667 Notes payable-trade 4,234 Accounts payable-trade 1,875,585 Accounts payable-other 540,342 Accrued expenses 8,349 Income taxes payable 35,497 Accrued consumption taxes 167,237 Deposits received 13,794 Provision for bonuses 61,005 Forward exchange contracts 99,619 Noncurrent liabilities 111,694 Provision for retirement benefits 69,607 Provision for directors' retirement benefits 42,087 Total Liabilities 2,917,362 Net assets Shareholders' equity 33,371,604 Capital stock 80,000 Retained earnings 33,341,604 Legal retained earnings 20,000 Other retained earnings 33,321,604 General reserve 340,000 Retained earnings brought forward 32,863,626 Reserve for reduction entry 117,978 Treasury stock △ 50,000 Total Net assets 33,371,604 Total Liabilities and net assets 36,288,967 Balance Sheets TOMS CO., LTD （ As of and for the Fiscal Years Ended February 28,2025 ） (Unit ： thousand of yen) Net sales 23,698,371 Cost of sales 18,444,307 Gross profit 5,254,063 Selling, general and administrative expenses 3,916,479 Operating income 1,337,584 Non-operating income Interest income and Dividends income 416,319 Foreign exchange gains 534,698 Miscellaneous income 89,087 1,040,104 Non-operating expenses Product valuation loss 171,615 Miscellaneous loss 7,351 178,967 Ordinary income 2,198,721 Extraordinary loss Loss on retirement of noncurrent assets 95,596 95,596 Income before income taxes 2,103,124 Income taxes-current 607,032 Income taxes-deferred 31,239 638,272 Net income 1,464,852 TOMS CO., LTD Statements of Income （ As of and for the Fiscal Years Ended February 28,2025 ） (Unit ： thousand of yen) Directors' compensations 84,360 Provision for directors' retirement benefits 11,970 Employees' salaries 418,972 Employees' bonuses 140,243 Commuting allowance 10,304 Traveling expenses and Transportation expenses 25,561 Legal welfare expenses 94,365 Welfare expenses 2,549 Reserve for retirement allowances 65,294 Dispatch expenses 7,139 Recruiting expenses 1,901 Business consignment expenses 163,336 Outsourcing expenses 2,334 Insurance fee 2,085 Freightage expenses 831,483 Warehousing expenses 331,448 Packing expenses 685,844 Advertising expenses 70,474 Vehicle expenses 1,598 Entertainment expenses 3,130 Communication expenses 25,429 Utilities expenses 27,560 Maintenance fees 72,562 Rents 99,644 Supplies expenses 12,434 Rent expenses 179,070 Repair expenses 16,023 Commission fee 20,971 Sanitation expenses 6,619 Retaining fee 6,250 Taxes and dues 44,965 Depreciation 445,248 Provision of allowance for doubtful accounts 4,339 Others 959 Total Selling, general and administrative expenses 3,916,479 TOMS CO., LTD Selling, general and administrative expenses （ As of and for the Fiscal Years Ended February 28,2025 ） (Unit ： thousand of yen) Valuation, translation adjustments and others Balance at the beginning of current period 80,000 20,000 340,000 31,426,822 117,978 31,904,801 △ 50,000 31,934,801 0 31,934,801 Changes of items during the period 0 0 0 Dividends from surplus △ 28,049 △ 28,049 △ 28,049 △ 28,049 Net income 1,464,852 1,464,852 1,464,852 1,464,852 Provision of reserve for special depreciation 0 0 0 Net changes of items other than shareholders' equity 0 0 0 Total Changes of items during the period 0 0 0 1,436,803 0 1,436,803 0 1,436,803 0 1,436,803 Balance at the end of current period 80,000 20,000 340,000 32,863,626 117,978 33,341,604 △ 50,000 33,371,604 0 33,371,604 Shareholders' equity Total Net assets Capital stock Retained earnings Total Capital stock Total Valuation, translation adjustments and others Legal retained earnings Total Retained earnings General reserve Retained earnings brought Reserve for reduction entry Treasury stock TOMS CO., LTD Statements of changes in net assets （ As of and for the Fiscal Years Ended February 28,2025 ）