プレナス（9945） – [Delayed]Plenus Co., Ltd. Financial Results Presentation for Fiscal Year Ended February 28, 2022

Plenus Co., Ltd. Financial Results Presentation for Fiscal Year Ended February 28, 2022 The material provided is not a disclosure document under the Financial Instruments and Exchange Act and no warranty is made as to the accuracy or safety of the information. Projections and other information presented are based on information available as of the announcement of financial results and contain elements of uncertainty. Therefore, we ask that you refrain from making any investment decisions based solely on these materials. April 15, 2022 1 Summary ✓ Under “living with COVID-19” circumstances, the Group continued to implement store management that considers the achievement of customer satisfaction as a food infrastructure company and the safety of customers and employees. ✓ Both revenue and profit increased in FY02/22. Revenue increased for the first time in three periods, operating profit and ordinary profit increased for the third consecutive period and profit increased for the second consecutive period, resulting in the Company returning to profitability for the first time in four periods. • Net sales increased thanks to higher net sales at existing Hotto Motto and YAYOI stores although sales declined due to the progress in franchising of Hotto Motto stores and the impact of COVID-19. • Main factors: Operating profit increased due to an improvement in gross profit and higher net sales at existing Hotto Motto stores. Recording of subsidy income contributed to ordinary profit while recording of impairment loss affected profit. ✓ Both revenue and profit are forecasted to increase in FY02/23. • For Hotto Motto and YAYOI stores, we will continue implementing and reinforcing measures from the previous fiscal year in an aim to increase net sales at existing stores while building a mechanism toward opening new stores in the future. This assumes the impact of COVID-19 will continue until April. • Earnings forecasts are based on information available at the time of forecast preparation. This is due to the recovery of sales and improvement of gross profit in YAYOI, MK RESTAURANTS and Overseas Business segments. At the same time, we will pursue strategic investments to expand the number of new stores going forward. 2 1. Financial Results for FY02/22 2. Growth Strategies 3. Forecast for FY02/23 4. Distribution of Profits 5. Supplementary Materials 3 1. Financial Results for FY02/22 For details, see Supplementary Materials. Revenue and profit increased due to improved gross profit and higher net sales at existing stores of Hotto Motto. Ordinary profit increased mainly due to the recording of 2,606 million yen in subsidy income, and profit was affected mainly by the recording of 2,980 million yen in impairment loss. Actual YoY vs. Forecast Amount Composition ratio Amount Composition ratio Change in amount Change in % Amount Composition ratio Change in amount Change in % (Millions of yen, %) Net sales 143,036 100.0 140,509 100.0 2,527 1.8 145,230 100.0 -2,193 -1.5 Gross profit 73,923 51.7 71,449 50.9 2,474 3.5 75,130 51.7 -1,206 -1.6 SG&A 69,870 48.8 70,547 50.2 -676 -1.0 69,730 48.0 140 0.2 Operating profit 4,053 2.8 902 0.6 3,150 349.0 5,400 3.7 -1,346 -24.9 Ordinary profit 7,578 5.3 2,037 1.5 5,541 271.9 6,040 4.2 1,538 25.5 Profit* 2,227 1.6 -2,545 -1.8 4,773 ― 2,510 1.7 -282 -11.2 * Profit attributable to owners of parent 4 1. Financial Results for FY02/22 For details, see Supplementary Materials. As a retail chain with functions as a manufacturer, we worked to maximize earnings and recorded higher revenue for the first time in three periods. Operating profit and ordinary profit increased for the third consecutive period and profit increased for the second consecutive period, resulting in the Company returning to profitability for the first time in four periods. 02/18 02/19 02/20 02/21 02/22 Assessment Consolidated net sales 145,709 153,914 149,572 140,509 143,036 On a recovery trend YoY change for net sales at existing stores Hotto Motto 97.2% 101.6% 99.6% 103.6% 104.1% YAYOI 97.9% 100.6% 96.2% 77.9% 100.8% Hotto Motto posted stronger results RC ratio Hotto Motto 33.8% 32.3% 28.1% 25.4% 22.5% 68.9% 65.0% 61.0% 70.7% 73.0% No. of stores 3,107 3,161 2,941 2,891 Hotto Motto increased efficiency 2,884 Focused on maximizing store profits while curbing store openings YAYOI Japan Overseas Operating profit Ordinary profit Profit ROA ROE 212 4,979 5,261 2,351 5.7% 3.6% 242 -501 143 259 348 729 0.2% -4.7% 0.8% -5.1% 258 902 2,037 2.4% -4.8% -2,926 -2,934 -2,545 253 4,053 7,578 2,227 9.4% 4.4% Improved Efficiency improved 5 1. Financial Results for FY02/22: YoY Comparison (1H/2H) In 1H, revenue declined YoY as 3Q of the previous year was in recovery and 4Q was affected by COVID-19. Operating profit decreased while ordinary profit increased due to the impact of subsidy income. 1H 2H Actual Previous year Change Actual Previous year Change Amount Composition ratio Amount Composition ratio Change in amount Change in % Amount Composition ratio Amount Composition ratio Change in amount Change in % (Millions of yen, %) Net sales 71,032 100.0 68,169 100.0 2,862 4.2 72,004 100.0 72,339 100.0 -334 -0.5 Gross profit 36,976 52.1 34,499 50.6 2,477 7.2 36,947 51.3 36,950 51.1 -3 -0.0 SG&A 34,832 49.0 35,723 52.4 -890 -2.5 35,037 48.7 34,823 48.1 214 0.6 Operating profit 2,144 3.0 -1,224 -1.8 3,368 ― 1,909 2.7 2,126 2.9 -217 -10.2 Ordinary profit 3,808 5.4 -867 -1.3 4,675 ― 3,770 5.2 2,905 4.0 865 29.8 Profit* 2,125 3.0 -1,696 -2.5 3,822 ― 102 0.1 -849 -1.2 951 ― * Profit attributable to owners of parent 6 1. Financial Results for FY02/22: YoY Comparison (by Quarter) Although 4Q was affected by COVID-19, revenue increased thanks to higher net sales at existing stores of Hotto Motto. Operating profit increased while ordinary profit decreased due to lower subsidy income and profit decreased due to the recording of impairment loss. 1Q 2Q 3Q 4Q Amount Composition ratio Change in % Amount Composition ratio Change in % Amount Composition ratio Change in % Amount Composition ratio Change in % (Millions of yen, %) Net sales 35,932 100.0 7.5 35,099 100.0 1.0 35,962 100.0 -2.4 36,041 100.0 1.6 Gross profit 18,738 52.2 12.1 18,238 52.0 2.5 18,392 51.1 -3.5 18,554 51.5 3.7 SG&A 17,651 49.1 -0.9 17,180 48.9 -4.0 17,297 48.1 -2.0 17,740 49.2 3.3 Operating profit 1,087 3.0 ― 1,057 3.0 ― 1,095 3.0 -22.4 813 2.3 13.6 Ordinary profit 1,811 5.0 ― 1,997 5.7 2,072.5 2,496 6.9 63.6 1,273 3.5 -7.7 Profit* 1,002 2.8 ― 1,123 3.2 ― 1,331 3.7 74.1 -1,229 -3.4 ― * Profit attributable to owners of parent 7 1. Financial Results for FY02/22: vs. Forecast (1H/2H) *Quarterly forecasts are not disclosed. In 2H, revenue and operating profit fell short because the impact of COVID-19 was not factored into the forecast. Ordinary profit achieved the plan through the recording of subsidy income. Profit fell short as a result of recording an impairment loss. (Millions of yen, %) 1H 2H Actual Forecast Change Actual Forecast Change Amount Composition ratio Amount Composition ratio Change in amount Change in % Amount Composition ratio Amount Composition ratio Change in amount Change in % Net sales 71,032 100.0 72,610 100.0 -1,577 -2.2 72,004 100.0 72,620 100.0 -615 -0.8 Gross profit 36,976 52.1 37,510 51.7 -533 -1.4 36,947 51.3 37,620 51.8 -672 -1.8 SG&A 34,832 49.0 35,220 48.5 -387 -1.1 35,037 48.7 34,510 47.5 527 1.5 Operating profit 2,144 3.0 2,290 3.2 -145 -6.4 1,909 2.7 3,110 4.3 -1,200 -38.6 Ordinary profit 3,808 5.4 2,780 3.8 1,028 37.0 3,770 5.2 3,260 4.5 510 15.6 Profit* 2,125 3.0 1,540 2.1 585 38.0 102 0.1 970 1.3 -867 -89.5 * Profit attributable to owners of parent 8 1. Financial Results for FY02/22: By Segment Hotto Motto remained steady as net sales increased at existing stores and gross profit improved although net sales declined due to the progress in franchising. YAYOI, MK RESTAURANTS and Overseas Business segments were impacted by the COVID-19 pandemic. (Millions of yen, %) Net sales Segment profit Segment profit margin 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cumulative total Cumulative total Cumulative total Consolidated total 35,932 35,099 35,962 36,041 143,036 1,087 1,057 1,095 813 4,053 3.0 3.0 3.0 2.3 2.8 Hotto Motto 26,742 26,518 26,405 26,306 105,972 1,730 2,037 1,736 1,545 7,050 6.5 7.7 6.6 5.9 6.7 YAYOI 6,135 5,937 6,589 6,697 25,359 -571 -720 -448 -608 -2,349 -9.3 -12.1 -6.8 -9.1 -9.3 MK RESTAURANTS 496 400 477 473 1,848 -84 -107 -64 -46 -302 -17.0 -26.8 -13.5 -9.7 -16.3 Overseas 812 660 534 999 3,007 -107 -243 -263 -99 -713 -13.2 -36.8 -49.3 -9.9 -23.7 Other 2,404 2,295 2,708 2,318 9,726 128 111 145 54 439 5.3 4.8 5.4 2.4 4.5 Adjustments -658 -712 -752 -753 -2,877 -8 -20 -10 -32 -71 ― ― ― ― ― * Net sales in Other include sales or transfers between segments. 9 1. Financial Results for FY02/22: (Reference) Segment Profit Including Subsidy Income Recorded a subsidy for cooperation from the local government for shortening business hours to prevent the spread of infections and subsidies for employment adjustment as subsidy income under non-operating income on an application-month basis. (Millions of yen, %) Segment profit Subsidy income (cooperation in shortening business hours/employment adjustment) Segment income including subsidy income 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cumulative total Cumulative total Cumulative total Consolidated total 1,087 1,057 1,095 813 4,053 448 895 1,158 103 2,606 1,535 1,953 2,253 916 6,659 Hotto Motto 1,730 2,037 1,736 1,545 7,050 0 0 0 0 0 1,730 2,037 1,736 1,545 7,050 YAYOI -571 -720 -448 -608 -2,349 432 800 1,063 85 2,381 -138 80 614 -523 32 MK RESTAURANTS -84 -107 -64 -46 -302 16 95 95 17 224 -68 -12 31 -28 -77 Overseas -107 -243 -263 -99 -713 -107 -243 -263 -99 -713 Other 128 111 145 54 439 128 111 145 54 439 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Adjustments -8 -20 -10 -32 -71 -8 -20 -10 -32 -71 * Net sales in Other include sales or transfers between segments. 10 1. Financial Results for FY02/22: YoY Comparison in Net Sales Net sales increased 2,527 million yen. This was mainly attributable to higher net sales at existing stores in Hotto Motto and YAYOI Business segments although net sales decreased due mainly to the progress in franchising of Hotto Motto stores and lower net sales at existing stores of MK RESTAURANTS. (Millions of yen) 3,027 -1,399 643 247 -403 374 135 2,527 1,975 -97 Net sales of existing Hotto Motto stores Hotto Motto store closure/transfer, etc. Net sales of existing YAYOI stores YAYOI store closure/transfer, etc. MK RESTAURANTS Overseas MS-F Other Change Hotto Motto Net sales at existing stores YAYOI Net sales at existing stores MK RESTAURANTS Hotto Motto Store closure/ transfer, etc. YAYOI Store closure/ transfer, etc. MS-F YoY Overseas Other 11 1. Financial Results for FY02/22: YoY Trends of Net Sales at Existing Stores (Same-day-of-the-week Comparison) Hotto Motto remained strong while YAYOI and MK RESTAURANTS were affected by COVID-19 as in the previous year. Sales in the YAYOI segment are on a recovery trend due mainly to the distribution of app coupons. YoY change for net sales at existing stores (Same-day-of-the-week comparison, %) Spread of COVID-19 in the previous year YAYOI Special feature broadcast on TV Expansion of areas subject to priority preventive measures YAYOI Distribution of app-renewal-limited coupons Reduction of areas subject to priority preventive measures Hotto Motto Discount campaign Effect of the previous year’s Hotto Motto sales promotion 12/6– 12/13– 12/20– 12/27– 1/3– 1/10– 1/17– 1/24– 1/31– 2/7– 2/14– 2/21– 2/28– 3/7– 3/14– 3/21– Hotto Motto YAYOI MK RESTAURANTS 12 140.0 130.0 120.0 110.0 100.0 90.0 80.0 1. Financial Results for FY02/22: Trends in Gross Profit Margin Gross profit and gross profit margin improved significantly due to improved gross profit and higher net sales at existing stores despite the impact of COVID-19 in 4Q and resulted in the level projected at the beginning of the year. We will aim to continue improving gross profit also in FY02/23. Expansion of internally produced products Enhancement of production system Closure of 190 company-operated Hotto Motto stores Decrease in net sales due to COVID-19 18,524 50.4% 17,886 50.4% 25,000 20,000 15,000 10,000 5,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full year 20/2 21/2 22/2 Gross profits Gross profit margin (Millions of yen) 52.3% 18,554 51.5% 53.0% 52.0% 51.0% 50.0% 49.0% 48.0% FY02/23 Forecast 13 1. Financial Results for FY02/22: YoY Comparison of Operating Profit Operating profit was up 3,150 million yen. This was mainly attributable to improved gross margin and higher net sales at existing stores in the Hotto Motto Business segment. (Millions of yen) 498 2,382 3,150 -162 394 226 329 22 Hotto Motto Net sales at existing stores Hotto Motto Percentage of staff salary/utility expenses YAYOI Store closure/ transfer, etc. Net sales of HM existing stores HM store closure/transfer, etc. HM変動費比率 Net sales of Y existing stores Y store closure/transfer, etc. Y変動費比率 MK RESTAURANTS Overseas Improved gross margin Plenus Foods MS-F Other Change -335 -75 -79 -49 Hotto Motto Store closure/ transfer, etc. YAYOI Net sales at existing stores YAYOI Percentage of staff salary/utility expenses Overseas Plenus Foods MS-F YoY 14 MK RESTAURANTS Improved gross margin Other 1. Financial Results for FY02/22: vs. Initial Forecast of Operating Profit Operating profit fell short of the plan by 1,346 million yen. This was due to the impact of COVID-19 and a surge in raw material prices although net sales of Hotto Motto and factory subsidiaries achieved the plan. (Millions of yen) -1,346 411 -432 -572 503 Sales of Hotto Motto stores Sales of YAYOI stores やよい軒変動費 MK RESTAURANTS Plenus Foods MS-F Improved gross margin Purchases of raw materials Change Hotto Motto Net sales YAYOI Percentage of staff salary/utility expenses -348 -244 -275 Overseas Overseas -338 Other -52 Other Improved gross margin YAYOI Net sales MK RESTAURANTS plenus-foods MSF Purchases of raw materials Compared with the forecast at the beginning of the year 15 1. Financial Results for FY02/22: Hotto Motto Business Performance by segment Trends in net sales of existing stores (%) Net sales 105,972 Millions of yen 110.0 1Q: 106.6 2Q: 104.5 3Q: 103.9 4Q: 101.4 Operating profit 7,050 Millions of yen 105.0 (+1,480) (+2,625) Factors for changes in net sales (+) Increase in net sales at existing stores (+4.1%) (-) Transfer of directly managed stores to franchised stores Factors for changes in operating profit (+) Increase in net sales at existing stores, improvement in 100.0 95.0 gross margin Status of stores Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Net sales No. of customers Topics 104.1 100.9 Cumulative total FY02/21-end FY02/20-end Change 2,488 2,493 No. of stores Opening Closing Renovation/Relocation Company-operated stores Percentage of company-operated stores (%) 7 12 12 561 22.5 5 39 31 634 25.4 Acquired new customers by selling products targeted at younger generations and families, and implemented campaigns using SNS and the Internet to increase awareness and promote usage. Expanded stores offering delivery services as delivery services and online store sales continued to be strong. The ratio of directly managed stores has been steadily decreasing thanks to the smooth transfer to franchised stores. Hotto Motto Grill opened 3 new stores, making for a total of 34 as of the end of February. -5 2 -27 -19 -73 -2.9 16 1. Financial Results for FY02/22: Hotto Motto Business The ratio of company-operated stores steadily decreased thanks to the progress in franchising. Although the revenue structure changed due to franchising, the amount of operating profit was set unchanged. We will concentrate management resources by promoting franchising to drive future growth in new store openings, higher production volume at own factories and enhanced productivity. Percentage of company-operated stores Progress was made in franchising as net sales at existing stores remained strong due mainly to the closure of 190 company-operated stores in FY02/20, promoting in-house production and sales promotion measures, and the ratio of company-operated stores steadily declined. We will aim to achieve the current target of 15% for company-operated stores. Changes in earnings structure through franchising With progress in franchising, net sales and gross profit decreased as net sales reflected product sales while SG&A expenses decreased as some expenses, such as personnel expenses, were borne by franchised stores. Since the amount of profit is set unchanged under franchising, operating profit margin increased. 190 company-operated stores Closing 33.8% 32.3% 28.1% 25.4% 22.5% Net sales Gross profits 920 887 711 634 561 10.0% SG&A 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 5.0% 0.0% 3,000 2,500 2,000 1,500 1,000 500 0 18/2 19/2 20/2 21/2 22/2 No. of stores Company-operated stores Percentage of company-operated stores Operating profit – Amount Ratio – 17 1. Financial Results for FY02/22: Hotto Motto Business Aimed to differentiate ourselves from other companies by providing products that are warm and freshly made through in-store cooking and products that make effective use of in-house production. Renewal of Hamburger Steak (December) Chinese seafood rice with thick sauce/Crispy chow mein (January) Crab-cream croquette (February) Discount campaign (February) 18 1. Financial Results for FY02/22: Hotto Motto Business Hotto Motto Grill offers products to meet wide-ranging needs, such as grilled items and casual items, in addition to the Hotto Motto menu. Strengthened efforts to attract younger generations and those seeking high added value. Grilled hamburger steak/Chicken cooked in demi-glace sauce Christmas hors d’oeuvres/Chicken Legs (December) Grilled pork in a box/Chicken thighs with vinegar tartar sauce in a box/Grilled chicken in a box (January) 19 1. Financial Results for FY02/22: YAYOI Business Performance by segment Trends in net sales of existing stores (%) Net sales 25,359 Millions of yen 160.0 1Q: 113.7 2Q: 93.1 3Q: 88.4 4Q: 113.1 Operating profit -2,349 Millions of yen Factors for changes in net sales (+) Transfer of company-operated stores to franchised stores Increase in net sales at existing stores (+0.8%) Factors for changes in operating profit (+) (-) Improved gross margin and increased net sales at existing stores Increase in SG&A expenses associated with the transfer of company-operated stores Status of stores FY02/21-end FY02/20-end Change 140.0 120.0 100.0 80.0 60.0 No. of stores Opening Closing Renovation/Relocation Company-operated stores Percentage of company-operated stores (%) 371 1 2 4 271 73.0 (+879) (+334) 372 9 19 13 263 70.7 100.8 99.9 Cumulative total Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Net sales No. of customers Topics -1 -8 -17 -9 8 Launched “At Home Set Menu” in an aim to capture takeout needs. Sold a cumulative total of 2 million sets, thanks in part to an ongoing trial campaign that bolstered awareness of the product. Stores that offer delivery services expanded steadily, while efforts were made to enhance the breakfast menu and increase demand for breakfast at stores that offered them. By the end of January, new ticket-vending machines capable of handling a wide range of cashless payments, QR code reading, etc. were introduced sequentially at stores nationwide. 2.3 Official app was renewed in February, offering diverse QR code-based coupons. 20 1. Financial Results for FY02/22: YAYOI Business In addition to measures for heavy users, implemented measures for medium and light users, such as sales of seasonal products. Set of sliced beef steak, grilled beef offal and sliced pork ribs (December) Chinese-style chop suey set (January) Set of stir-fried chicken neck and vegetables in miso sauce and spicy jjigae soup (February) 21 1. Financial Results for FY02/22: YAYOI Business Continued to offer the trial campaign for “At-Home Set Menu” that comes with rice, soup and side dishes in separate containers while launching new menus. New products [Takeout] Chinese-style chop suey set (January) 100 yen discount campaign for “At-Home Set Menu” (February) [Takeout] Stir-fried chicken neck and vegetables in miso sauce (February) 22 1. Financial Results for FY02/22: YAYOI Business Increased convenience through introducing new ticket-vending machines capable of handling cashless payments and renewing the official app. New ticket vending machine New Official YAYOI App 23 1. Financial Results for FY02/22: MK RESTAURANTS Business Performance by segment Trends in net sales of existing stores (%) Net sales 1,848 Millions of yen 250.0 1Q: 100.1 2Q: 67.9 3Q: 75.3 4Q: 99.5 200.0 150.0 100.0 50.0 Operating profit -302 Millions of yen (-305) (+84) Factors for changes in net sales (-) Decrease in net sales at existing stores (-17.6%) Store closures in the previous and current fiscal years Factors for changes in operating profit (+) Store closures in the previous and current fiscal years, review of SG&A expenses (-) Decrease in net sales at existing stores Status of stores FY02/21-end FY02/20-end Change No. of stores Opening Closing Renovation/Relocation Company-operated stores Percentage of company-operated stores (%) 25 0 1 0 25 26 1 7 0 26 -1 -1 -6 0 -1 100.0 100.0 0.0 82.4 82.5 Cumulative total Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Net sales No. of customers Topics In order to further enhance management efficiency and improve our services in an environment affected by the COVID-19 pandemic, we plan to conduct a merger in which Plenus, the parent company, is the surviving company and its subsidiary PLENUS MK is the absorbed company in June. Although sales at YAYOI stores were recovering, they were impacted by the spread of COVID-19 from December onwards. Worked to increase the frequency of store visits by selling limited-time soups, such as “Iwashita’s Young Ginger Pot Soup,” and special ingredients, as well as holding events targeting families. Takeout is available at all stores and delivery service is available at some stores. 24 1. Financial Results for FY02/22: Overseas Business Performance by segment Trends in sales by quarter (in millions of Yen) Net sales 3,007 Millions of yen 1,200.00 Operating profit -713 Millions of yen 565 721 801 820 812 999 660 534 Factors for changes in net sales (+) Increase in the number of YAYOI stores Factors for changes in operating profit (+) Increase in net sales, improvement in gross margin (-) Increase in SG&A expenses associated with a greater number of company-operated stores 1Q 2Q 3Q 4Q 1Q 2Q 3Q -9.9% 4Q 21/2 -14.3% -10.4% -13.2% 22/2 -37.1% -39.1% Net sales Profit margin -36.8% -49.3% Status of stores Topics FY02/21-end FY02/20-end Change Status of operation in each country (as of February) Normal operation at all stores Number of Hotto Motto stores Number of YAYOI stores Opening Closing Opening Closing 8 1 7 245 13 12 -6 0 6 1 5 3 Focused on restoring profitability of existing stores for the time being, with store opening to be suspended until there’s an improvement in the impact of COVID-19. Sought to establish a business model that specializes in to-go/delivery services by leveraging know-how in the takeout bento box business with a view to improving profitability. 900.00 600.00 300.00 0.00 (300.00) (600.00) (+97) (-24) 14 1 1 8 9 244 120.0% 90.0% 60.0% 30.0% 0.0% -30.0% -60.0% 25 1. Financial Results for FY02/22: Other (Subsidiary; MSF) Performance by segment Trends in sales by quarter (in millions of Yen) Net sales 6,849 Millions of yen 2,464 2,317 2,404 2,295 2,318 2,708 Operating profit 439 Millions of yen 5.6% 5.3% 4.8% 5.4% (+374) (+154) 1,980 1,951 1.8% 2.2% 2.9% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2.4% 3,000 2,500 2,000 1,500 1,000 500 0 Factors for changes in net sales (+) Increase in external sales, expansion of internally produced products Factors for changes in operating profit (+) Increase in profits caused by sales increases 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21/2 22/2 Net sales Profit margin * Net sales include net sales or transfers between the segments Company outline Topics Business OEM of seasonings and processed foods Development of seasonings for use in the Group’s stores Factories and products Hirokawa Factory (Fukuoka Prefecture) Small packets, PET bottles, retort pouch processed food, etc. Amagi Factory (Fukuoka Prefecture) Sugito Factory (Saitama Prefecture) Seasonings for commercial use, etc. In addition, cooperating with partner factories across Japan The main business of the subsidiary, MSF, is OEM of seasonings and processed foods. It also engages in the development of seasonings and other ingredients used at the Group’s stores. An increase in production has led to improved productivity. This is due to the promotion of in-house production and increased sales at existing business partners. Going forward, it aims to maximize profits by increasing production efficiency through improving purchase methods and switching to constant two-shift operation in each production line. 26 1. Financial Results for FY02/22: Sustainability Initiatives Opened “Plenus Shonai Mikawa Farm” in Yamagata Prefecture as the second production base for rice production. Promoted scale expansion and enhanced efficiency by adopting two direct-seeding cultivation technologies in an aim to establish highly productive rice production management. Direct-seeding cultivation on water-filled rice paddies using a drone “Plenus Shonai Mikawa Farm” located in Mikawa-machi, Higashitagawa-gun, Yamagata Prefecture Highly efficient direct-seeding cultivation on dry rice paddies beneficial for expansion of scale 27 1. Financial Results for FY02/22: Summary of Balance Sheet Total assets increased 406 million yen. Millions of yen FY02/22 FY02/21 Change Outline Fiscal year-end Fiscal year-end Current assets Cash and deposits Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Total net assets Equity capital Total liabilities and net assets Shareholders’ equity ratio (%) ROE(%) 27,745 16,249 53,049 80,795 17,380 11,360 28,741 52,053 51,036 80,795 63.2 4.4 21,603 10,519 58,785 80,389 16,511 12,011 28,522 51,867 51,001 80,389 63.4 -4.8 6,141 406 219 186 406 -0.2 9.1 5,730 Profit before income taxes (+), Dividends paid (-) -5,735 Depreciation (-), Impairment loss (-) 869 Income taxes (+) -650 Decrease in lease obligations and long-term loans payable (-) 34 Profit (+), Dividends paid (-) 28 1. Financial Results for FY02/22: Summary of Cash Flows Cash and cash equivalents were up 5,700 million yen. CF from operating activities: +10,788 CF from investing activities: -2,274 CF from financing activities: -2,739 (Millions of yen) Free CF: +8,513 2,980 5,430 -420 -1,357 -335 229 4,489 -2,504 5,700 -2,303 -265 -170 -73 Profit before income taxes Depreciation Impairment loss Decrease (increase) in inventories Income taxes paid C/F from operating activities, other Purchase of non-current assets C/F from investing activities, other Dividends paid Borrowings C/F from financing activities, other Other Change Profit before income taxes Impairment loss Income taxes paid Dividends paid Purchase of non-current assets C/F from financing activities, other Compared with FY02/20-end Depreciation Decrease (increase) in inventories C/F from operating activities, other C/F from investing activities, other Borrowings Other 29 1. Financial Results for FY02/22 2. Growth Strategies 3. Forecast for FY02/23 4. Distribution of Profits 5. Supplementary Materials 30 2. Growth Strategies: Overview Both revenue and profit increased due to enhanced satisfaction level regarding products and productivity at stores resulting from investments in factories and stores. In the future, the Company aims to further improve productivity by expanding its store chain by opening new stores and increasing group profits. Highly satisfying products Reinvestment High productivity Improved costs Increase in group profits due to economies of scale Integrated food factory Increase in store openings Increase in total number of meals Increase in chain sales Expansion of the store chain in line with increased store openings 31 2. Growth Strategies: SCM Strategies We will build a supply chain that achieves both cost reduction and risk management by taking advantage of our strengths in managing the entire supply chain from raw material procurement to store delivery and achieving overall optimization. Higher raw material procurement prices and higher utility costs putting pressure on earnings and increased raw material procurement risks • Plant shutdowns and disruption of logistics due to the spread of COVID-19 overseas • Post-pandemic growth in demand for products worldwide and advancement of inflation • Projected increase in livestock meat prices due to shortages of crude oil, grain and other supplies and feed caused by the Ukrainian • Rapid depreciation of the yen, causing rise in prices of imported goods and continuing hikes in utility costs Business environment crisis SCM Strategies Cost reduction Risk management Procurement and production production effect • Unearthing new raw material suppliers • Selection and development of products with large in-house-• Strategic decentralization of raw material suppliers • Strategic allocation of production sites • Compatibility between group factories and outside partner • Optimization of costs through optimal procurement and production factories Warehouse • Evolution of storage operation • Enhancement of delivery efficiency by increasing distribution centers • Optimization of product volume in inventory situations • Decentralization of logistics bases that can respond in disaster Logistics • Evolution of operations by reducing load and labor • Shorter delivery distances and higher loading rates • Inventory planning for disaster and external environments • Securing safety of drivers • Reducing drivers’ working hours in line with laws and regulations 32 2. Growth Strategies: Hotto Motto Business — Looking Back on the Previous Year and Measures for the Year under Review In the previous fiscal year, we achieved strong results by fostering contactless stores. In the current fiscal year, we are continuously implementing and reinforcing measures from the previous fiscal year in an aim to increase net sales at existing stores while building a mechanism toward opening new stores in the future. FY02/22 FY02/23 YoY change for net sales at existing stores 104.1% YoY change for net sales at existing stores (plan) 101.1% Positive factors • Implementation of campaigns using internally produced products • Sales strategies with clear targets • Increased preorders via online ordering • Expansion of delivery services • Promotion of cashless payments Negative factors events • Decline in custom order sales at events such as sports measures for the future Products and campaign measures with clear targets Measures to increase sales of online orders and delivery service Organized custom-order sales activities Opening new stores and establishing marketing Building a new store model for achieving high productivity 33 2. Growth Strategies: Hotto Motto Business — Marketing Strategies Continuing to brush up on the measures taken up to the previous fiscal year, and implementing measures that meet customer needs while considering measures for the post-pandemic market and the rising raw material and labor costs. Fine-tuning measures targeting younger generations Higher unit price by customer through promoting plus one product Implementing anime tie-ups using campaign sites and considering new methods of notification Introducing new products, such as homemade soups in stores, and strengthening the appeal of side dishes through campaigns Collaboration campaign between “Hotto Motto” and the movie “The Quintessential Quintuplets” Salt-based soup with chicken meatballs and vegetables 34 2. Growth Strategies: Hotto Motto Business — Further Promotion of Contactless Stores Aiming to increase store sales and improve productivity by further promoting online orders and delivery services. Online order • Measures to improve the frequency of visits by MyHottoMotto members • Increasing convenience by improving quality and reducing delivery time • Boosting sales by spreading success stories across the network Delivery service • Boosting sales by adding new brands • Improving productivity by introducing an order management system • Implementation of campaigns such as listing ads and free shipping 35 2. Growth Strategies: YAYOI Business — Looking Back on the Previous Year and Measures for the Year under Review Although the previous fiscal year was affected by requests to cooperate in setting shorter business hours, performance exceeded the results of the year earlier mainly due to the expansion of takeout and delivery services. In the current fiscal year, we will continue implementing and reinforcing measures from the previous fiscal year in an aim to increase sales at existing stores while building a mechanism toward opening new stores in the future. FY02/22 FY02/23 YoY change for net sales at existing stores 100.8% YoY change for net sales at existing stores (plan) 118.9% Positive factors products • Attracting eat-in customers by introducing new and seasonal • Capturing takeout demand by offering “At Home Set Menu” and implementing campaigns • Capturing demand through expanding delivery services • Improvement in productivity by promoting cashless payments Negative factors • Decrease in sales due to the spread of COVID-19 Sales strategies with clear targets Implementation of sales promotion measures utilizing new app and ticket vending machines Improvement in customer satisfaction (CS) and employee satisfaction (ES) Building stores based on location and establishing a highly profitable model 36 2. Growth Strategies: YAYOI Business — Marketing Strategies Aiming to increase sales by adding value to products through developing them in line with the four seasons and clarifying customer targets, thereby expanding customer segments and usage opportunities. Medium/Light users Light/New users Heavy users Middle-aged males and females Offering menus with seasonal flavors and local specialties to have customers enjoy the four seasons Females and families Offering not only set menus but also noodles and other products in new categories Young males Offering appetizing menus that go well with rice so customers can fully enjoy free refills of rice Shizuoka-grown grated yam soup and tempura set meal Thick and tasty noodles with meat and vegetables 37 Craving pork and cabbage set meal 2. Growth Strategies: YAYOI Business — Sales Promotion Strategies Aiming to increase sales by implementing sales promotion measures utilizing the functions of the new official YAYOI app and the new ticket vending machines and fostering customers by providing information delivery tailored for each customer. New Official Yayoi App New ticket vending machine Offering coupons to members and sending information via the e-mail magazine function to attract and capture customers Use of highly flexible screen layouts and introduction of cashless systems for sales promotion and improved convenience New Official Yayoi App New ticket vending machine 38 2. Growth Strategies: MK RESTAURANTS Business — Looking Back on the Previous Year and Measures for the Year under Review Although the impact of the spread of COVID-19 is significant, performance has been on a slight declining trend since prior to the pandemic. Therefore, in addition to strengthening measures from the previous fiscal year, the marketing strategy will be drastically revised. FY02/22 FY02/23 YoY change for net sales at existing stores 82.4% YoY change for net sales at existing stores (plan) 142.1% Positive factors operational efficiency systems • Improvement of profitability by closing unprofitable stores and improving • Enhancement of operating rates through effective use of reservation • Digital marketing using SNS, etc. • Expansion of to-go/delivery services and their increased recognition • Sales increase through the introduction of a drink bar Negative factors • Decrease in sales due to the spread of COVID-19 Rebuilding marketing strategies Implement sales promotion measures utilizing the know-how of Hotto Motto and YAYOI Installation of facilities to improve the efficiency of store operations Reinforcement of sales capabilities of stores 39 2. Growth Strategies: Overseas Business — Looking Back on the Previous Year and Measures for the Year under Review Although we implemented measures to capture sales through takeout and delivery services in the previous fiscal year, sales continued to be weak due to the impact of the spread of COVID-19. We will continue to study business models that are expected to generate profits even under the COVID-19 pandemic and strive to improve earnings. FY02/22 FY02/23 Segment profit -713 million yen Aimed to improve business profitability * Segment income (loss) forecast is undisclosed Positive factors • Recovery trend in the U.S. and Australia • Implementation of measures to capture sales through takeout and delivery services Introduction of business development approaches tailored to regional characteristics. Redefining the brand concept based on the food culture of each country Negative factors • Taiwan was significantly impacted by COVID-19 (recovery trend in 4Q) Development of human resources responsible for overseas business 40 1. Financial Results for FY02/22 2. Growth Strategies 3. Forecast for FY02/23 4. Distribution of Profits 5. Supplementary Materials 41 3. Forest for FY02/23: Assumptions for the Forecast Stores in Japan YoY change for existing stores Opening Closing Renovation, etc. No. of stores No. of company-operated stores Percentage of company-operated stores Overseas stores Hotto Motto YAYOI MK RESTAURANTS Full-year 1H 2H Full-year 1H 2H Full-year 1H 2H % 101.1 99.9 102.3 118.9 123.1 115.1 142.1 144.0 140.6 stores stores stores stores stores 40 -24 32 13 -13 15 27 -11 17 2,503 2,487 2,503 539 542 539 8 -5 29 376 267 2 -4 5 371 268 6 -1 24 376 267 0 0 1 25 25 0 0 0 25 25 0 0 1 25 25 % 21.5 21.8 21.5 71.0 72.2 71.0 100.0 100.0 100.0 FY02/22-end Opening Closing FY02/23-end Hotto Motto total YAYOI total Overseas Group stores total 8 245 253 0 15 15 0 0 0 8 260 268 42 3. Forecast for FY02/23: Assumptions for the Forecast — Quarterly Trends in Net Sales Impact of the COVID-19 pandemic will likely continue until April of 1Q. Hotto Motto to remain strong, with a recovery in the business performance of YAYOI and MK RESTAURANTS forecasted. 106.6 104.5 103.9 103.1 101.6 101.4 100.0 99.8 127.2 119.2 115.7 114.5 113.7 113.1 122.7 (Units: %) 169.8 140.8 140.4 93.1 88.4 100.1 99.5 75.3 67.9 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY02/22 FY02/23 Forecast FY02/22 FY02/23 Forecast FY02/22 FY02/23 Forecast Hotto Motto YAYOI MK RESTAURANTS 43 3. Forecast for FY02/23: YoY Comparison Earnings forecasts are based on information available at the time of forecast preparation. Projecting higher revenue and profit due to the recovery of sales and improvement of gross profit in YAYOI, MK RESTAURANTS and Overseas Business segments. Forecast YoY Amount Composition ratio Amount Composition ratio Change in amount Change in % (Millions of yen, %) Net sales 149,800 100.0 143,036 100.0 6,763 4.7 Gross profit 78,370 52.3 73,923 51.7 4,446 6.0 SG&A 72,310 48.3 69,870 48.8 2,439 3.5 Operating profit 6,060 4.0 4,053 2.8 2,006 49.5 Ordinary profit 6,530 4.4 7,578 5.3 -1,048 -13.8 Profit* 3,040 2.0 2,227 1.6 812 36.5 * Profit attributable to owners of parent 44 3. Forecast for FY02/23: YoY Comparison (1H/2H) Earnings forecasts are based on information available at the time of forecast preparation. Projecting higher revenue and profit due to the recovery of sales and improvement of gross profit in YAYOI, MK RESTAURANTS and Overseas Business segments. (Millions of yen, %) Forecast YoY Forecast YoY 1H 2H Amount Composition ratio Amount Composition ratio Change in amount Change in % Amount Composition ratio Amount Composition ratio Change in amount Change in % Net sales 74,180 100.0 71,032 100.0 3,147 4.4 75,620 100.0 72,004 100.0 3,615 5.0 Gross profit 39,040 52.6 36,976 52.1 2,063 5.6 39,330 52.0 36,947 51.3 2,382 6.4 SG&A 35,610 48.0 34,832 49.0 777 2.2 36,700 48.5 35,037 48.7 1,662 4.7 Operating profit 3,430 4.6 2,144 3.0 1,285 60.0 2,630 3.5 1,909 2.7 720 37.8 Ordinary profit 3,790 5.1 3,808 5.4 -18 -0.5 2,740 3.6 3,770 5.2 -1,030 -27.3 Profit* 2,230 3.0 2,125 3.0 104 4.9 810 1.1 102 0.1 707 694.1 * Profit attributable to owners of parent 45 3. Forecast for FY02/23: Factors for Increasing Operating Profit Profit forecasted to increase 2,006 million yen. This will be due to the recovery of sales and improvement of gross profit in YAYOI, MK RESTAURANTS and Overseas Business segments. In addition, strategic investments will be implemented to expand the number of new stores going forward. (Millions of yen) 998 247 460 980 1,961 -984 2,006 -1,918 -156 419 HM Transfer/store closure, etc. Hotto Motto Transfer/store closure, etc. YoY change for existing stores FC収入 Improved gross margin MK Overseas Initial costs Strategic investment Other Change Income from franchise fees, etc. MK RESTAURANTS Initial costs Other YAYOI YoY change for existing stores Improved gross margin Overseas subsidiaries Strategic investment Change 46 1. Financial Results for FY02/22 2. Growth Strategies 3. Forecast for FY02/23 4. Distribution of Profits 5. Supplementary Materials 47 4. Distribution of Profits: Dividend Policy Annual dividend for FY02/22 was 60 yen per share, with 60 yen per share planned for FY02/23. The Company will pay a dividend that is the higher of either an annual dividend of 60 yen or a dividend payout ratio of 50%. * Dividend payout ratio = Annual dividend per share/Consolidated profit per share Basic dividend policy Dividend amount Dividends (yen) Interim Fiscal year-end Full-year Earnings per share (yen) Consolidated dividend payout ratio FY02/21 FY02/22 FY02/23 0 30 30 30 30 30 30 60 60 -66.39 ― 58.05 79.21 103.4% 75.7% 48 1. Financial Results for FY02/22 2. Growth Strategies 3. Forecast for FY02/23 4. Distribution of Profits 5. Supplementary Materials 49 5. Supplementary Materials: Trends in Consolidated P/L Net sales, gross profit (Millions of yen, %) FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 FY02/23 Full year results Composition ratio Full year results Composition ratio Full year results Composition ratio Full year results Composition ratio Full year results Composition ratio Full-year forecast Composition ratio Net sales 145,709 100.0 153,914 100.0 149,572 100.0 140,509 100.0 143,036 100.0 149,800 100.0 Net sales of franchise segment 60,823 41.7 64,459 41.9 64,985 43.4 63,195 45.0 67,031 46.9 68,460 45.6 67,767 46.5 71,550 46.5 65,692 43.9 58,089 41.3 55,987 39.1 60,170 40.2 Net sales of company-operated store segment • Hotto Motto • YAYOI • MK RESTAURANTS • Overseas Other net sales Income from franchise fees, etc. 39,087 26.8 40,988 26.6 36,707 24.5 35,061 25.0 31,279 23,843 16.4 23,909 15.5 22,206 14.8 18,349 13.1 20,247 3,448 1,387 5,595 11,522 2.4 1.0 3.8 7.9 3,440 3,212 5,661 12,243 2.2 2.1 3.7 8.0 3,308 3,469 6,000 12,894 2.2 2.3 4.0 8.6 2,153 2,524 6,645 12,579 1.5 1.8 4.7 9.0 1,848 2,612 7,035 12,982 21.9 14.2 1.3 1.8 4.9 9.1 Cost of sales Gross profit 67,743 46.5 76,501 49.7 74,389 49.7 69,059 49.1 69,112 48.3 71,430 77,965 53.5 77,413 50.3 75,182 50.3 71,449 50.9 73,923 51.7 78,370 7,160 14,010 4.8 9.4 47.7 52.3 50 5. Supplementary Materials: Trends in Consolidated P/L SG&A, operating profit Selling, general and administrative expenses 72,985 50.1 77,914 50.6 74,834 50.0 70,547 50.2 69,870 48.8 72,310 48.3 FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 FY02/23 Full year results Full year results Full year results Full year results Full year results Full-year forecast Composition ratio Composition ratio Composition ratio Composition ratio Composition ratio Composition ratio Total personnel expenses 31,712 21.8 34,088 22.1 32,575 21.8 29,910 21.3 29,189 20.4 29,760 19.9 Total selling expenses • Advertising expenses • Promotion expenses • Distribution expenses • Provision of allowance for doubtful accounts • Remuneration for directors (and other officers) • Salaries and bonuses • Provision for bonuses • Rent • Depreciation Total other expenses • Utilities expenses • Commission expenses • Supplies expenses Operating profit 280 0.2 276 0.2 253 0.2 232 0.2 232 0.2 27,332 18.8 29,561 19.2 28,198 18.9 25,788 18.4 25,048 17.5 311 0.2 344 0.2 355 0.2 350 0.2 345 0.2 11,158 2,338 2,622 6,097 82 9,563 5,372 13,404 3,613 2,898 2,271 4,979 7.7 1.6 1.8 4.2 0.1 6.6 3.7 9.2 2.5 2.0 1.6 3.4 12,523 3,001 3,292 6,032 180 10,248 5,622 13,562 3,701 3,229 2,030 8.1 1.9 2.1 3.9 0.1 6.7 3.7 8.8 2.4 2.1 1.3 -501 -0.3 11,820 1,738 3,652 6,202 210 10,280 5,938 11,920 3,254 2,932 1,506 348 7.9 1.2 2.4 4.1 0.1 6.9 4.0 8.0 2.2 2.0 1.0 0.2 13,181 1,799 4,570 6,721 78 9,543 4,832 11,301 2,832 3,419 1,392 902 9.4 1.3 3.3 4.8 0.1 6.8 3.4 8.0 2.0 2.4 1.0 0.6 13,617 1,899 5,176 6,420 110 9,338 4,373 11,712 2,813 3,707 1,565 4,053 9.5 1.3 3.6 4.5 0.1 6.5 3.1 8.2 2.0 2.6 1.1 2.8 Total equipment expenses 16,709 11.5 17,739 11.5 18,517 12.4 16,154 11.5 15,350 10.7 15,310 10.2 (Millions of yen, %) 13,910 9.3 13,330 8.9 6,060 4.0 51 5. Supplementary Materials: Trends in Consolidated P/L Ordinary profit, profit (Millions of yen, %) FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 FY02/23 Full year results Composition ratio Full year results Composition ratio Full year results Composition ratio Full year results Composition ratio Full year results Composition ratio Full-year forecast Composition ratio Non-operating income Non-operating expenses Ordinary profit Extraordinary income Extraordinary losses Profit before income taxes Income taxes Profit Profit attributable to non-controlling interests 497 215 5,261 10 981 4,291 1,883 2,408 56 0.3 0.1 3.6 0.0 0.7 2.9 1.3 1.7 0.0 792 147 143 36 3,062 -2,882 46 -2,929 -2 868 487 729 179 3,844 -2,935 -60 -2,874 0.5 0.1 0.1 0.0 2.0 -1.9 0.0 -1.9 -0.0 0.6 0.3 0.5 0.1 2.6 -2.0 -0.0 -1.9 1,379 244 2,037 5 3,921 -1,878 551 -2,430 1.0 0.2 1.5 0.0 2.8 -1.3 0.4 -1.7 3,628 103 7,578 28 3,117 4,489 2,089 2,400 60 0.0 115 0.1 172 Profit attributable to owners of parent 2,351 1.6 -2,926 -1.9 -2,934 -2.0 -2,545 -1.8 2,227 2.5 0.1 5.3 0.0 2.2 3.1 1.5 1.7 0.1 1.6 570 100 6,530 0 1,150 5,380 2,340 3,040 0 3,040 Notes Income from franchise fees, etc., includes lease income, etc., based on the unit franchise system and management consignment system (partner chain system) in addition to royalty income from franchisees. 0.4 0.1 4.4 0.0 0.8 3.6 1.6 2.0 0.0 2.0 52 5. Supplementary Materials: Over-the-Counter Net Sales, Capital Expenditure, and Depreciation Over-the-counter net sales (Millions of yen) FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 FY02/23 Full year results Full year results Full year results Full year results Full year results Full-year forecast Hotto Motto (Japan) YAYOI (Japan) MK RESTAURANTS (Japan) Overseas 145,595 33,583 3,450 1,387 150,900 36,304 3,442 3,212 145,838 36,268 3,304 3,469 145,960 28,085 2,153 2,524 151,707 28,255 1,848 2,612 153,200 33,700 2,500 3,800 Notes Over-the-counter net sales of consolidated subsidiaries are listed in Overseas above. PLENUS AusT PTY. LTD. (Australia) and Plenus Taiwan Co., Ltd. (Taiwan) have been included in the scope of consolidation since FY02/18 and FY02/19, respectively. Capital investment and depreciation (Millions of yen) FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 FY02/23 Full year results Full year results Full year results Full year results Full year results Full-year forecast Consolidated capital investment 13,864 11,780 Total depreciation Production cost Selling and administrative expenses Non-operating expenses 5,572 197 5,372 2 6,250 625 5,622 1 6,825 7,244 1,304 5,938 1 3,692 5,955 1,122 4,832 0 2,896 5,430 1,052 4,373 5 5,242 4,604 804 3,799 0 53 5. Supplementary Materials: Trends in Consolidated B/S Trends in consolidated balance sheet (Millions of yen) FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 Fiscal year-end Fiscal year-end Fiscal year-end Fiscal year-end Fiscal year-end Change Current assets Cash and deposits Notes and accounts receivable – trade Merchandise and finished goods Non-current assets Property, plant and equipment Intangible assets Investments and other assets Total assets Current liabilities Notes and accounts payable – trade Non-current liabilities Total liabilities Total net assets Total liabilities and net assets 2,786 2,377 2,648 3,013 3,401 25,256 14,372 5,263 66,243 48,289 2,389 15,563 91,499 16,751 6,097 8,649 25,401 66,098 91,499 17,859 7,447 5,368 69,527 50,179 2,921 16,426 87,387 16,562 6,229 10,201 26,763 60,623 87,387 21,128 10,076 5,950 65,050 45,574 3,031 16,445 86,179 19,090 6,108 11,598 30,688 55,491 86,179 21,603 10,519 5,391 58,785 40,464 1,928 16,392 80,389 16,511 5,402 12,011 28,522 51,867 80,389 27,745 16,249 5,801 53,049 35,026 1,453 16,570 80,795 17,380 5,508 11,360 28,741 52,053 80,795 6,141 5,730 387 409 -5,735 -5,437 -475 177 406 869 106 -650 219 186 406 54 5. Supplementary Materials: Trends in Number of Stores Number of stores (Unit: Stores) FY02/18 FY02/19 FY02/20 FY02/21 FY02/22 FY02/23 Fiscal year-end Fiscal year-end Fiscal year-end Fiscal year-end Fiscal year-end Forecast 3,107 2,723 3,161 2,748 2,941 2,527 2,891 2,493 Trends in no. of stores in Japan Hotto Motto YAYOI MK RESTAURANTS Trends in no. of overseas stores Overseas Hotto Motto total Overseas YAYOI total China South Korea Australia Singapore Thailand Singapore Australia Taiwan USA Philippines Malaysia China 351 33 212 15 2 12 1 ― 197 167 12 8 4 3 2 1 ― 377 36 242 18 2 15 1 ― 224 187 18 8 4 3 3 1 ― 382 32 259 14 3 10 ― 1 245 198 10 6 21 3 5 2 ― 372 26 258 14 2 11 ― 1 244 194 21 9 6 4 6 4 ― 2,884 2,488 371 25 253 8 1 7 ― 0 245 193 22 8 6 3 7 5 1 2,904 2,503 376 25 268 8 1 7 ― ― 260 202 22 9 6 3 8 9 1 55 5. Supplementary Materials: Hotto Motto Hotto Motto All stores Existing stores New stores YoY change for net sales YoY change for net sales Total FY02/20-end March April May June July August September October November December January February Cumulative total 105.7 106.5 108.1 104.2 102.1 106.9 104.7 105.7 100.2 96.6 103.8 104.1 103.9 106.0 106.2 107.6 104.0 102.3 107.1 105.5 106.1 100.5 96.6 103.8 104.7 104.1 % % ― ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― 1 1 0 0 -1 0 0 -1 3 -4 1 0 0 1 1 0 0 1 -2 0 -1 -1 -2 -1 3 0 0 0 1 1 0 0 -2 -1 0 -1 -2 -1 3 0 0 0 0 0 0 0 -1 0 0 -1 -5 -2 7 2 0 0 0 0 0 0 0 0 0 0 0 0 0 -18 -7 25 0 0 0 0 0 0 0 0 -7 -4 11 0 0 0 1 1 0 0 -1 -1 0 0 -7 -3 10 0 0 0 0 0 0 0 -2 -1 0 -1 -7 -2 9 2 0 0 0 0 0 0 0 0 0 0 -9 -3 12 1 0 0 2 1 0 1 0 0 0 0 -8 -4 12 0 0 0 1 1 0 0 -2 0 -1 -1 2 -4 2 0 0 0 0 0 0 0 -1 0 0 -1 -15 -6 21 1 0 0 stores 2,493 2,493 2,492 2,491 2,490 2,490 2,490 2,490 2,488 2,488 2,490 2,489 2,488 ― stores stores 634 140 638 136 636 134 634 133 629 131 611 124 604 120 597 117 589 115 580 112 573 108 576 103 561 ― 97 ― stores 1,719 1,719 1,722 1,724 1,730 1,755 1,766 1,776 1,784 1,796 1,809 1,810 1,830 ― Closing Total Transfer Renovation/ Relocation No. of stores at month-end Total RC PC FC RC PC FC RC PC FC RC PC FC RC PC FC 7 5 0 2 -12 -3 -2 -7 -75 -41 116 6 0 6 56 5. Supplementary Materials: YAYOI YAYOI All stores Existing stores New stores YoY change for net sales YoY change for net sales Total FY02/20-end March April May June July August September October November December January February Cumulative total 87.3 139.1 133.8 97.2 95.1 85.8 75.8 87.5 101.7 110.4 119.4 108.6 100.6 86.7 139.0 133.9 97.6 95.9 86.6 75.7 87.6 101.9 110.5 120.1 110.0 100.8 % % ― ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― stores ― 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 -3 0 0 0 0 0 0 0 0 1 0 0 0 0 -1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 -1 -1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -2 -2 -1 0 0 1 0 3 0 0 -2 -1 stores stores stores stores 372 263 28 81 372 263 28 81 373 264 28 81 373 264 28 81 373 267 28 78 373 268 27 78 373 268 27 78 373 268 27 78 373 270 26 77 373 271 24 78 373 272 23 78 373 272 23 78 371 ― 271 ― 22 ― 78 ― Closing Total Transfer Renovation/ Relocation No. of stores at month-end Total RC PC FC RC PC FC RC PC FC RC PC FC RC PC FC 1 1 0 0 -2 -2 0 0 9 -6 -3 4 0 0 57 5. Supplemental Materials: MK RESTAURANTS and Overseas Total no. of Group stores in Japan stores 2,891 2,891 2,891 2,889 2,888 2,888 2,888 2,888 2,886 2,886 2,888 2,887 2,884 March April May June July August September October November December January February March April May June July August September October November December January February MK RESTAURANTS All stores YoY change for net sales Existing stores YoY change for net sales New stores Closing Total Total Renovation/Relocation Total No. of stores at month-end Total FY02/20-end ― ― % % stores ― stores ― stores ― FY02/20-end FY02/20-end Overseas Hotto Motto YAYOI Total Total China South Korea Singapore Thailand Singapore Australia Taiwan USA Philippines Malaysia China March April May June July August September October November December January February 76.4 88.4 255.6 148.1 209.7 131.3 60.4 60.8 79.3 80.3 62.7 64.7 59.3 60.6 82.1 84.7 76.2 78.6 93.5 108.6 96.3 110.1 89.2 94.1 85.8 82.4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cumulative total 0 -1 0 ― stores ― 26 26 25 25 25 25 25 25 25 25 25 0 -1 0 25 14 2 11 1 242 192 9 6 4 6 4 0 14 2 11 1 244 194 9 6 4 6 4 0 15 2 12 1 243 194 9 6 4 6 4 0 15 2 12 1 243 194 9 6 4 6 4 0 11 1 10 0 240 188 10 6 21 4 7 4 0 10 10 1 9 0 237 186 10 6 21 3 7 4 0 1 9 0 237 186 10 6 21 3 7 4 0 8 1 7 0 238 186 10 6 21 3 7 4 1 0 0 0 8 1 7 0 9 6 3 7 4 1 0 0 0 8 1 7 0 9 6 3 7 4 1 0 0 0 8 1 7 0 9 6 3 7 5 1 0 0 0 8 1 7 0 9 6 3 7 5 1 0 0 0 8 1 7 0 8 6 3 7 5 1 240 189 241 190 245 193 245 193 245 193 21 20 20 21 21 21 21 21 22 Total no. of overseas Group stores 258 258 258 256 251 247 247 246 248 249 253 253 253 58 59