プレナス（9945） – [Delayed]Summary of Consolidated Financial Results for the Year Ended February 28, 2022 (Based on Japanese GAAP)

Translation Company name: Stock code: Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Summary of Consolidated Financial Results for the Year Ended February 28, 2022 (Based on Japanese GAAP) April 13, 2022 Plenus Co., Ltd. 9945 Stock exchange listing: Tokyo URL: https://www.plenus.co.jp/ Representative: President and Representative Director Tatsuo Shioi Inquiries: Accounting Division/IR Department Manager Toshiyuki Fujinami TEL: 03(6892)0304 Scheduled date of annual general meeting of shareholders: Scheduled date to commence dividend payments: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Holding of financial results briefing: May 25, 2022 May 10, 2022 May 25, 2022 Yes Yes (for analysts and institutional investors) (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) (1) Consolidated operating results (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % 143,036 1.8 4,053 349.0 7,578 271.9 2,227 － 140,509 (6.1) 902 159.0 2,037 179.4 (2,545) － (Note) Comprehensive income: Year ended February 28, 2022 Year ended February 28, 2021 2,465 million yen (2,495) million yen (－%) (－%) Basic earnings per share Diluted earnings per share Return on equity Ratio of ordinary profit to total assets Ratio of operating profit to net sales Yen 58.05 (66.39) Yen 57.85 － % 4.4 (4.8) % 9.4 2.4 % 2.8 0.6 (Reference) Equity method investment gain (loss): Year ended February 28, 2022 Year ended February 28, 2021 (Note) Diluted earnings per share for the year ended February 28, 2021 are not shown given negative earnings per share although 50 million yen 60 million yen there are dilutive shares. (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share Millions of yen Millions of yen 80,795 80,389 52,053 51,867 % 63.2 63.4 Yen 1,329.78 1,329.87 As of February 28, 2022 As of February 28, 2021 (Reference) Shareholders’ equity: As of February 28, 2022: As of February 28, 2021 51,036 million yen 51,001 million yen Year ended February 28, 2022 Year ended February 28, 2021 Year ended February 28, 2022 Year ended February 28, 2021 Translation (3) Consolidated cash flows Year ended February 28, 2022 Year ended February 28, 2021 2. Cash dividends Year ended February 28, 2021 Year ended February 28, 2022 Year ending February 28, 2023 (Forecast) － － － Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen Millions of yen Millions of yen Millions of yen 10,788 4,726 (2,274) (2,729) (2,739) (1,317) 16,192 10,491 Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Total cash dividends (Total) Millions of yen Yen Yen Yen Yen Yen % % 0.00 － 30.00 30.00 1,150 － 30.00 － 30.00 60.00 2,302 103.4 2.2 4.4 30.00 － 30.00 60.00 75.7 3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023) (Percentages indicate changes compared with the previous year for full year results, and those compared with the same quarterly period of the previous year for quarterly results) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Six months ended August 31, 2021 (Cumulative) Full year Millions of yen 74,180 149,800 % 4.4 4.7 Millions of yen 3,430 6,060 % 60.0 49.5 Millions of yen 3,790 % (0.5) Millions of yen 2,230 6,530 (13.8) 3,040 % 4.9 36.5 Yen 58.10 79.21 Translation * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Newly included: – companies (Company name), Excluded: – companies (Company name) (2) Changes in accounting policies, changes in accounting estimates, and restatement 1) 2) 3) 4) Changes in accounting policies due to revisions to accounting standards and other regulations: Change in accounting policies other than item 1) above: Changes in accounting estimates: Restatement of prior period financial statements: No No No No No (3) Number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares) 44,392,680 shares 44,392,680 shares 6,012,874 shares 6,041,555 shares 38,372,981 shares 38,345,656 shares 2) Number of treasury shares at the end of the period As of February 28, 2022 As of February 29, 2021 As of February 28, 2022 As of February 29, 2021 3) Average number of shares outstanding during the period Year ended February 28, 2022 Year ended February 28, 2021 (Reference) Summary of non-consolidated financial results 1. Non-consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) (1) Non-consolidated operating results (Percentages indicate year-on-year changes.) Year ended February 28, 2022 Year ended February 28, 2021 Year ended February 28, 2022 Year ended February 28, 2021 As of February 28, 2022 As of February 28, 2021 Reference: Equity Net sales Operating profit Ordinary profit Profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % 132,204 1.8 2,360 － 5,129 － 826 － 129,917 (5.9) (18) － 297 － (3,043) － Basic earnings per share Diluted earnings per share (2) Non-consolidated financial position Total assets Net assets Equity-to-asset ratio Net assets per share Yen 21.53 (79.36) Yen 21.45 － Millions of yen Millions of yen 73,975 75,035 47,795 49,242 % 64.3 65.3 Yen 1,240.03 1,278.16 As of February 28, 2022: As of February 28, 2021: 47,591 million yen 49,018 million yen * Summary of consolidated financial results is not subject to the audit procedure performed by a Certified Public Accountant or audit firm. * Explanation of appropriate use of financial results forecasts and other special notes Translation • Any statement on the future such as an outlook for financial results included in this material is based on information the Company presently has and certain assumptions the Company considers reasonable, and the Company does not promise such will be achieved. In addition, actual financial results may significantly differ due to various factors. For assumptions for financial results forecasts and points to consider in utilizing them, please see “1. Overview of operating results, etc., (1) Overview of operating results during the period under review, 2) Outlook for the next period” on P.5of the attachments. * Method to obtain supplementary materials on financial results • Supplementary materials on financial results will be posted on the IR Library section of the Company’s website on April 15, 2022 (Friday). Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 ○ Table of Contents for Attachments 1. Overview of Operating Results, etc. ………………………………………………………………………………………………………………………………..2 (1) Overview of operating results during the period under review ……………………………………………………………………………………..2 (2) Overview of financial position for the period under review …………………………………………………………………………………………7 (3) Basic policy for appropriation of profits and dividends for the period under review and next period …………………………………9 2. Basic Approach towards Selection of Accounting Standard ………………………………………………………………………………………………..9 3. Consolidated Financial Statements and Key Notes …………………………………………………………………………………………………………. 10 (1) Consolidated balance sheets …………………………………………………………………………………………………………………………………. 10 (2) Consolidated statements of income and consolidated statements of comprehensive income ………………………………………….. 12 Consolidated statements of income ………………………………………………………………………………………………………………………… 12 Consolidated statements of comprehensive income ………………………………………………………………………………………………….. 13 (3) Consolidated statements of changes in equity …………………………………………………………………………………………………………. 14 (4) Consolidated statements of cash flows …………………………………………………………………………………………………………………… 16 (5) Notes to consolidated financial statements ……………………………………………………………………………………………………………… 18 (Notes regarding the going concern assumptions) …………………………………………………………………………………………………….. 18 (Changes in presentation method) ………………………………………………………………………………………………………………………….. 18 (Segment information) ………………………………………………………………………………………………………………………………………….. 18 (Per-share information)…………………………………………………………………………………………………………………………………………. 21 (Important subsequent events) ……………………………………………………………………………………………………………………………….. 22 – 1 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 1. Overview of Operating Results, etc. (1) Overview of operating results during the period under review 1) Operating results during the fiscal year under review During the fiscal year under review, consumption activities in the Japanese economy continued to face severe conditions due to the impact of a surge in crude oil prices and higher commodity prices on personal consumption, on top of the impact of the spread of COVID-19. The future outlook in the food services industry remains uncertain mainly due to the emergence of new variants although there are signs of a recovery as the declaration of a state of emergency and measures to prevent the spread of infection were lifted and progress was made in vaccinations. The meal placement industry remained strong thanks to increased demand for takeouts and deliveries on the back of COVID-19 and due to changes in consumer lifestyles. Meanwhile, competition is intensifying beyond business types with restaurants and diners entering the takeout market. Under these circumstances, in an effort to increase customer satisfaction, the Group focused on further enhancing its business foundations by developing existing brands and on operating stores with due consideration to the safety of customers and employees. As part of efforts to develop existing brands, we worked to expand over-the-counter sales. We did this through such measures as launching campaigns using products manufactured at the Group’s plants, implementing sales strategies with business type-specific targets, and expanding stores that adapt to digital marketing and delivery services using smartphone applications and other platforms while continuing to focus on the promotion of franchising. Hotto Motto continued to improve its contactless operations by strengthening its online ordering and delivery services, as well as cashless payments. YAYOI sought to respond to a wide range of customer needs by expanding demand for takeouts and breakfast. With regard to year-on-year change in net sales at existing stores in Japan, Hotto Motto remained strong increasing sales by 4.1%. YAYOI and MK RESTAURANTS, however, continued to experience a challenging business environment, with YAYOI up 0.8% and MK RESTAURANTS down 17.6%, impacted by requests to stay at home and shorten business hours in certain areas. [Year-on-year change in net sales at existing stores in Japan] Hotto Motto YAYOI MK RESTAURANTS First quarter (March to May) Second quarter (June to August) Third quarter (September to November) Fourth quarter (December to February) Full fiscal year under review (March to February) 106.6% 113.7% 100.1% 104.5% 93.1% 67.9% 103.9% 88.4% 75.3% 101.4% 113.1% 99.5% 104.1% 100.8% 82.4% In overseas markets, we continued to face a challenging business environment due to restrictions, such as operating only takeout and delivery services or operating on shortened hours and/or having limits on the number of seats based on government orders in As a result of the above, the Company posted net sales of 143,036 million yen (up 1.8% year-on-year), operating profit of 4,053 million yen (up 349.0% year-on-year), ordinary profit of 7,578 million yen (up 271.9% year-on-year), and profit attributable to owners of parent of 2,227 million yen (loss attributable to owners of parent of 2,545 million yen in the previous year) during the some countries and regions. fiscal year under review. Net sales increased year-on-year due to an increase in net sales at existing stores of Hotto Motto and YAYOI, despite a decrease in net sales resulting from the transfer of directly managed Hotto Motto stores to franchised stores. Profits also increased year-on-year due to an increase in net sales at the aforementioned existing stores and improved gross margin. The increase in ordinary profit was mainly due to posting 2,606 million yen in non-operating income for a subsidy for cooperation from a local government for shortening business hours to prevent the spread of infections and subsidies for employment adjustment as subsidy income, and increase in profit attributable to owners of parent was mainly due to posting 2,980 million yen in impairment loss on non-current assets including stores. – 2 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 [Status of store development in Japan] Hotto Motto YAYOI MK RESTAURANTS End of previous fiscal year 2,493 stores 372 stores 26 stores Opening Closing End of fiscal year under review Renovation/Relocation 7 stores 1 store – 12 stores 2,488 stores 2 stores 1 store 371 stores 25 stores 12 stores 4 stores – Total 2,891 stores 8 stores 15 stores 2,884 stores 16 stores [Status of store development outside Japan] Hotto Motto South Korea End of previous fiscal year Opening Closing End of fiscal year under review 2 stores 11 stores 1 store 194 stores 9 stores 6 stores 4 stores 6 stores 4 stores – 1 store 7 stores 1 store – – – – 1 store 1 store 1 store 1 store 5 stores 1 store 8 stores 2 stores 1 store 1 store – – – – 1 store 7 stores – 193 stores 8 stores 6 stores 22 stores 3 stores 7 stores 5 stores 1 store Area China Singapore Thailand Singapore Australia Taiwan USA Philippines Malaysia China – Total 258 stores 14 stores 19 stores 253 stores YAYOI 21 stores 2 stores The Group’s business performance by segment is as follows. [Hotto Motto Business] made in stores. As a top brand of takeout bento boxes, and with a safe and secure quality management system, the Company aimed at increasing customer satisfaction by providing high-value-added products by promoting the use of the Group’s plants and others, on the basis of focusing on tasty meals, using carefully selected high-quality rice grown in Japan, and providing bento boxes that are freshly We also continued to improve contactless operations by strengthening online ordering, delivery services, and cashless payments, in addition to taking measures to capture new customer groups through selling products targeting younger generations and families, and driving repeat visits to stores through customer-participation promotional campaigns. Furthermore, with regards to franchise development, we continued to actively work to acquire new owners and increase the number of stores for the existing owners through the use of the “unit franchise system.” As a result of the above, the Company posted net sales of 105,972 million yen (up 1.4% year-on-year) and an operating profit of 7,050 million yen (up 59.3% year-on-year). Net sales increased year-on-year as a result of an increase in net sales at existing stores (up 4.1% year-on-year), despite a decrease in net sales due to the transfer of directly managed stores to franchised stores. Profits also increased year-on-year due to an increase in net sales at existing stores and improved gross margin. – 3 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 [YAYOI Business] Our basic policy is to offer set meals made with carefully selected ingredients and a home-made feel at reasonable prices. In addition to the conventional product measures for heavy users, we continued to respond to a wide range of customer needs. For example, we expanded demand for breakfast by enhancing breakfast menus and increasing the number of stores offering them. We boosted demand for takeouts by offering and implementing on-going campaigns of “At-Home Set Menu” which provides rice, soup, and side dishes in separate containers so that customers can enjoy set meals at home, etc. in the same manner as at stores. We also promoted cashless payment by introducing new ticket vending machines, and distributing reasonable QR coupons by renewing the YAYOI Official App. As a result of the above, the Company posted net sales of 25,359 million yen (up 3.6% year-on-year) and operating loss of 2,349 million yen (operating loss of 2,683 million yen in the previous year). Net sales increased year-on-year as a result of an increase in net sales at existing stores (up 0.8% year-on-year) and the transfer of directly managed stores to franchised stores. In terms of profits, the magnitude of loss decreased year-on-year due to improved gross margin and an increase in net sales at existing stores. [MK RESTAURANTS Business] We enhanced product capability of shabu-shabu (thinly sliced meat boiled with vegetables) served with hearty ingredients and unique soups by offering limited-time-only pot soups, such as “Iwashita’s New Ginger Pot Soup” and “Iwashita’s New Ginger Xiaolongbao,” specially selected ingredients and dim sum (small Chinese dishes). In addition, we focused on driving customer visits by regularly implementing sales promotion initiatives targeting families. We also sought to respond to a wide range of customer needs by expanding takeout menus and delivery services. As a result of the above, the Company posted net sales of 1,848 million yen (down 14.2% year-on-year) and operating loss of 302 million yen (operating loss of 386 million yen in the previous year). Net sales decreased year-on-year due to a decrease in net sales at existing stores (down 17.6% year-on-year) and closure of unprofitable stores. In terms of profits, the magnitude of loss decreased year-on-year due to closure of unprofitable stores and reduction of selling, general and administrative expenses. [Overseas Business] In the overseas business, efforts were made to restore profitability by enhancing profitability of existing stores through such measures as implementing market-specific initiatives to boost sales and reducing costs at stores through the local procurement of ingredients. However, we continued to face a challenging business environment due to restrictions, such as operating only takeout and delivery services or operating on shortened hours and/or having limits on number of seats based on government orders in some countries and regions, prompted by the impact of the spread of COVID-19. As a result of the above, the Company posted net sales of 3,007 million yen (up 3.4% year-on-year) and operating loss of 713 million yen (operating loss of 688 million yen in the previous year). [Other] MSF Co., Ltd., whose main business is as an original equipment manufacturer (OEM) of seasonings and processed food, proactively proposed new products to existing business partners while conducting marketing activities to acquire new ones. MSF Co., Ltd., which also engages in the development of seasonings and other ingredients used at the Group’s stores, focused on As a result of the above, the Company posted net sales of 6,849 million yen (up 5.8% year-on-year). Regarding profits, the Company posted operating profit of 439 million yen (up 54.2% year-on-year) as a result of an increase in production despite expanding the number of products. amortization of goodwill. – 4 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 2) Outlook for the next period In the domestic market environment, in addition to the downsizing caused by the declining birthrate and aging population, competition among companies is expected to become more severe. And companies are having to undergo large reforms due to the significant changes in lifestyles and consumer behavior resulting from the widespread idea of remote work and acceleration of digitalization. The future outlook also remains uncertain with new waves of COVID-19, and the business environment is continuously expected to remain challenging as price hikes of raw materials and energy, rising labor costs, and increasing geopolitical risks may greatly affect economic activities. Against this backdrop, the Group aims to continuously enhance its corporate value by expanding the scale of sales across the chain and improving the profitability of its stores as its growth strategy. Regarding Hotto Motto, we will continue to roll out campaigns utilizing products manufactured at the Group’s plants and implement targeted sales strategies, while also working to increase sales at existing stores by responding to a wide range of customer needs through measures such as strengthening online ordering, delivery services, and cashless payments, as well as those to capture new customers by launching products targeting families. As for YAYOI, we will continue to implement targeted sales strategies and aim to increase sales at existing stores through sales promotion measures utilizing the functions of renewed apps and ticket vending machines. With regard to MK RESTAURANTS, we will aim to recover sales at existing stores by effectively utilizing marketing know-how accumulated at Hotto Motto and YAYOI, as well as restructuring marketing strategies. We will also aim to improve profitability by strengthening the marketability of stores and improving store management efficiency through capital investment. As for new store openings, we plan to open 48 stores in Japan, working toward strengthening the existing store structure and build high-profit models to expand store opening. 15 stores are also planned to be opened overseas. At the Group’s plants, the number of manufactured products and production volumes have been increasing steadily, contributing to their stable operation. With a view to improving profitability further through a reduction in merchandise cost, we will work for improved utilization rates and stable operations by actively utilizing the Group’s plants. We will do so through measures such as implementing a campaign utilizing internally manufactured products and developing new products. Enhancement of productivity will also be aimed at by developing flexible personnel systems according to the capital investment and production of each manufacturing line. In the overseas business, we will aim to make it profitable by promoting business expansion which adapts to regional features, while at the same time building new models to expand store openings. As a result of the above, the Company expects net sales of 149,800 million yen (up 4.7% year-on-year), operating profit of 6,060 million yen (up 49.5% year-on-year), ordinary profit of 6,530 million yen (down 13.8% year-on-year), and profit attributable to owners of parent of 3,040 million yen (up 36.5% year-on-year) during the next period. The forecast is made under the assumption that the first quarter will continuously be affected by the spread of COVID-19. The above forecasts are based on information available as of the date of disclosure of this material, and actual results may differ from the forecasts due to various future factors. We will carefully assess any events that may affect our business and promptly disclose any future necessary revisions. (Risk Information on COVID-19) The global spread of COVID-19 continues to have an important impact on the food services industry. It has resulted in global travel restrictions, including a ban on entering or leaving countries, and restrictions on leaving home. Yet in Japan, signs of improvement are beginning to be seen given the lifting of priority measures, such as those to prevent the spread of COVID-19 and progress in vaccinations. If the impact is prolonged or increases further, over-the-counter net sales may decrease and a shortage of raw materials, a surge in purchase prices, and other issues may occur, and this may affect the operating results and financial position of the Group. As countermeasures for such risk, in order to achieve customer satisfaction as a food infrastructure company, the Group is implementing store operation which takes into account the safety of its customers, business partners, and employees such as by thoroughly implementing measures to prevent infections in accordance with the guidelines of the health administration and changing business hours in accordance with requests for self-restrictions from local governments. In addition, as of the date of disclosure of this material, the Company is working to reduce the impact on its businesses by, for example, ensuring stable operation of the Group’s plants, securing sufficient amounts of raw materials, promoting delivery services, online orderings, and – 5 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 cashless payments, as well as promoting takeouts for the YAYOI Business and MK RESTAURANTS Business. – 6 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (2) Overview of financial position for the period under review 1) Assets, liabilities and net assets Total assets as of the end of the fiscal year under review were 80,795 million yen, up 406 million yen compared with the end of the previous fiscal year. This consisted of an increase of 6,141 million yen in current assets and a decrease of 5,735 million yen in non-current assets. The increase in current assets was mainly due to an increase of 5,730 million yen in cash and deposits and an increase of 409 million yen in merchandise and finished goods. The decrease in non-current assets was chiefly attributable to a decrease of 5,437 million yen in property, plant and equipment and a decrease of 475 million yen in intangible assets. The decrease in property, plant and equipment was chiefly attributable to a decrease of 4,371 million yen in buildings and structures. Liabilities increased 219 million yen from the end of the previous fiscal year to 28,741 million yen. This consisted of an increase of 869 million yen in current liabilities and a decrease of 650 million yen in non-current liabilities. The increase in current liabilities was mainly due to an increase of 1,253 million yen in income taxes payable, an increase of 182 million yen in accounts payable – other, an increase of 106 million yen in notes and accounts payable – trade, and a decrease of 677 million yen in deposits received from franchised stores included in “Other” under current liabilities. The decrease in non-current assets was chiefly attributable to a decrease of 472 million yen in lease obligations and a decrease of 194 million yen in long-term Net assets increased 186 million yen from the end of the previous fiscal year to 52,053 million yen. This primarily consisted of an increase of 171 million yen in non-controlling interests. borrowings. 2) Cash flows Cash and cash equivalents (hereinafter “funds”) as of the end of the fiscal year under review were 16,192 million yen, up 5,700 million yen compared with the end of the previous fiscal year. Cash flows in the fiscal year under review are as follows. (Cash flows from operating activities) Funds provided by operating activities amounted to 10,788 million yen (4,726 million yen provided in the previous fiscal year). This primarily consisted of profit before income taxes of 4,489 million yen, depreciation of 5,430 million yen, impairment loss of 2,980 million yen, a decrease in deposits received of 896 million yen, and income taxes paid of 1,357 million yen. (Cash flows from investing activities) Funds used in investing activities amounted to 2,274 million yen (2,729 million yen used in the previous fiscal year). This primarily consisted of purchase of property, plant and equipment and intangible assets of 2,504 million yen and collection of loans receivable and proceeds from refund of guarantee deposits of 347 million yen. (Cash flows from financing activities) Funds used in financing activities amounted to 2,739 million yen (1,317 million yen used in the previous fiscal year). This primarily consisted of proceeds from short-term borrowings of 180 million yen, repayment of short-term borrowings of 418 million yen, and payment of dividends of 2,303 million yen. (Reference) Changes in cash flow-related indicators Year ended February 28, 2018 Year ended February 28, 2019 Year ended February 29, 2020 Year ended February 28, 2021 Year ended February 28, 2022 71.6 86.5 68.6 79.6 63.5 75.9 63.4 89.5 63.2 94.9 Equity ratio (%) Equity ratio on a market value basis (%) (Notes) 1 Equity ratio: Shareholders’ equity/Total assets 2 Equity ratio on a market value basis: Market capitalization/Total assets 3 Each of the indicators above is calculated based on financial figures on a consolidated basis. 4 Market capitalization is calculated by multiplying the closing stock price at the end of the period by the number of – 7 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 issued shares at the end of the period (net of treasury shares). 5 The interest-bearing debt to cash flows ratio and interest coverage ratio are omitted because they are not informative figures given the Group’s financial positions. – 8 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (3) Basic policy for appropriation of profits and dividends for the period under review and next period The Company’s basic policy is to distribute profits gained through the effective use of the capital received from shareholders based on clear criteria, on the premise of constant and stable payment of dividends. Specifically, the Company intends to pay dividends in an amount that is the higher of either an annual dividend of 60 yen or annual dividend payout ratio of 50% (profit In addition, it designates the Board of Directors as the decision-making body for the dividends of surplus from the viewpoint of per share on a consolidated basis). ensuring the flexibility of capital and dividend policies. Based on the above policy, annual dividend will be 60 yen (interim dividend of 30 yen per share and a year-end dividend of 30 per share) for the fiscal year under review. As a result of the above, the dividend payout ratio will be 103.4% on a consolidated basis. The Company considers retained earnings as valuable funds to strengthen its business structure, and plans to use them effectively for future business development, etc. from a medium- to long-term perspective. As for the dividend payment for the next period, the Company plans to pay an annual dividend of 60 yen (interim dividend of 30 yen per share and a year-end dividend of 30 per share). 2. Basic Approach towards Selection of Accounting Standard The Group has adopted Japanese GAAP in consideration of the comparability across periods of the consolidated financial statements and the comparability across companies. With regards to application of the International Financial Reporting Standards (IFRS) in the future, the Group will take appropriate action in light of situations at home and abroad. – 9 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 3. Consolidated Financial Statements and Key Notes (1) Consolidated balance sheets As of February 28, 2021 As of February 28, 2022 (Millions of yen) Assets Current assets Cash and deposits Notes and accounts receivable – trade Merchandise and finished goods Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Machinery equipment and vehicles, net Land Leased assets, net Construction in progress Other, net Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securities Long-term loans receivable Deferred tax assets Guarantee deposits Investment property, net Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 10,519 3,013 5,391 220 2,968 (509) 21,603 27,096 3,238 7,388 667 564 1,509 40,464 714 1,214 1,928 216 1,911 3,704 6,798 2,222 1,582 (43) 16,392 58,785 80,389 16,249 3,401 5,801 239 2,542 (489) 27,745 22,724 2,906 7,341 264 46 1,743 35,026 527 925 1,453 227 1,729 4,182 6,719 2,221 1,512 (23) 16,570 53,049 80,795 – 10 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (Millions of yen) As of February 28, 2021 As of February 28, 2022 Liabilities Current liabilities Notes and accounts payable – trade Short-term borrowings Lease obligations Accounts payable – other Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Provision for points card certificates Provision for shareholder benefit program Asset retirement obligations Other Total current liabilities Non-current liabilities Long-term borrowings Lease obligations Long-term guarantee deposits Asset retirement obligations Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on securities Deferred gains or losses on hedges Foreign currency translation adjustment available-for-sale Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets Total liabilities and net assets 5,402 758 97 4,001 959 340 － 287 161 6 4,497 16,511 1,075 726 2,700 7,124 110 274 12,011 28,522 3,461 4,714 54,608 (11,776) 51,008 (11) － 4 (6) 223 641 51,867 80,389 5,508 762 139 4,183 2,212 339 46 232 153 80 3,722 17,380 880 254 2,779 7,198 129 118 11,360 28,741 3,461 4,702 54,534 (11,720) 50,977 (5) (0) 64 58 203 813 52,053 80,795 – 11 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (2) Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income Fiscal year ended February 28, 2021 (Millions of yen) Fiscal year ended February 28, 2022 Net sales Cost of sales Gross profit Selling, general and administrative expenses Distribution expenses Remuneration for directors (and other officers) Salaries and bonuses Provision for bonuses Provision for bonuses for directors (and other officers) Rent expenses Depreciation Utilities expenses Other Total selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Rental income from non-current assets Compensation income Insurance claim income Share of profit of entities accounted for using equity method Subsidy income Other Total non-operating income Non-operating expenses Interest expenses Rental expenses on non-current assets Loss on cancellation of rental contracts Provision of allowance for doubtful accounts Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sales of non-current assets Total extraordinary income Extraordinary losses Loss on disposal of non-current assets Impairment loss Loss from system rebuilding Other Total extraordinary losses Profit (loss) before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit (loss) Profit attributable to non-controlling interests Profit (loss) attributable to owners of parent – 12 – 140,509 69,059 71,449 6,721 232 25,788 350 － 9,543 4,832 2,832 20,245 70,547 902 23 1 110 136 57 231 60 356 401 1,379 44 5 76 34 82 244 2,037 5 5 154 2,900 857 9 3,921 (1,878) 1,116 (565) 551 (2,430) 115 (2,545) 143,036 69,112 73,923 6,420 232 25,048 345 46 9,338 4,373 2,813 21,250 69,870 4,053 19 2 86 132 85 173 50 2,606 472 3,628 40 5 6 － 50 103 7,578 28 28 89 2,980 － 47 3,117 4,489 2,569 (479) 2,089 2,400 172 2,227 Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 Consolidated statements of comprehensive income Profit (loss) Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Share of other comprehensive income of entities accounted for using equity method Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests Fiscal year ended February 28, 2021 (Millions of yen) Fiscal year ended February 28, 2022 (2,430) 4 － (76) 6 (65) (2,495) (2,610) 115 2,400 5 (0) (61) 121 65 2,465 2,292 172 – 13 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (3) Consolidated statements of changes in equity Fiscal year ended February 28, 2021 Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares (Millions of yen) Total shareholders’ equity 3,461 4,724 58,304 (11,820) 54,669 Balance at beginning of current period Changes in items during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes in items during period Balance at end of current period Balance at beginning of current period Changes in items during period Dividends of surplus Loss attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes in items during period Balance at end of current period (1,149) (2,545) (9) (1,149) (2,545) (0) 34 (0) 44 － (9) (3,695) 44 (3,660) 3,461 4,714 54,608 (11,776) 51,008 Accumulated income Valuation difference on available-for-sale securities other comprehensive Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total assets net (15) 74 58 236 527 55,491 (1,149) (2,545) (0) 34 36 (3,624) 51,867 – 14 – 4 4 (11) (69) (69) 4 (64) (64) (6) 114 114 641 (12) (12) 223 Fiscal year ended February 28, 2022 Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares 3,461 4,714 54,608 (11,776) 51,008 (Millions of yen) Total shareholders’ equity (2,301) 2,227 (2,301) 2,227 (0) 43 (0) 56 (12) － (12) (74) 55 (30) 3,461 4,702 54,534 (11,720) 50,977 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Total accumulated other comprehensive income Share acquisition rights Non-controlling interests Total net assets (11) － 4 (6) 223 641 51,867 171 171 813 (2,301) 2,227 (0) 43 216 186 52,053 (0) (0) (0) 59 59 64 65 65 58 (19) (19) 203 Balance at beginning of current period Changes in items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes in items during period Balance at end of current period Balance at beginning of current period Changes in items during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes in items during period Balance at end of current period 5 5 (5) – 15 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (Millions of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 (4) Consolidated statements of cash flows Cash flows from operating activities Profit (loss) before income taxes Depreciation Impairment loss Loss from system rebuilding Amortization of goodwill Loss on retirement of property, plant and equipment and intangible assets Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for bonuses for directors (and other officers) Increase (decrease) in retirement benefit liability Increase (decrease) in provision for points card certificates Increase (decrease) benefit program Interest and dividend income Foreign exchange losses (gains) Share of loss (profit) of entities accounted for using equity method Loss (gain) on sales of property, plant and equipment and intangible assets Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accrued consumption taxes Increase (decrease) in deposits received Other in provision for shareholder Subtotal Interest and dividends received Interest paid Income taxes paid Cash flows from operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Payments for retirement of property, plant and equipment Proceeds from sales of property, plant and equipment Purchase of intangible assets Loan advances Collection of loans receivable Payments of guarantee deposits Proceeds from refund of guarantee deposits Other Cash flows from investing activities – 16 – (1,878) 5,955 2,900 851 186 154 9 (0) － 32 29 37 (25) (21) (60) (5) (362) 527 (707) (1,016) (1,224) (110) 5,271 25 (44) (526) 4,726 (33) 261 (3,079) (271) 43 (186) (46) 208 (111) 445 39 (2,729) 4,489 5,430 2,980 － 186 89 (41) (1) 46 19 (55) (8) (21) 55 (50) (28) (370) (420) 95 110 (896) 555 12,164 21 (40) (1,357) 10,788 (42) 12 (2,403) (34) 28 (100) (7) 199 (56) 148 (17) (2,274) Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (Millions of yen) Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Purchase of treasury shares Cash dividends paid Other Cash flows from financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 1,330 (1,463) 114 (0) (1,148) (150) (1,317) (7) 671 9,820 10,491 180 (418) － (0) (2,303) (196) (2,739) (73) 5,700 10,491 16,192 – 17 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (5) Notes to consolidated financial statements (Notes regarding the going concern assumptions) Not applicable. (Changes in presentation method) (Related to consolidated balance sheets) “Accounts payable – other” that were included in “Other” under “Current liabilities” in the previous fiscal year are presented as a separate line item from the fiscal year under review due to their increased monetary significance. In order to reflect this change in presentation, the Company reclassified consolidated financial statements in the previous fiscal year. As a result, 8,498 million yen that was presented in “Other” under “Current liabilities” in the consolidated balance sheets for the previous fiscal year has been reclassified into 4,001 million yen of “Accounts payable – other” and 4,497 million yen of “Other.” year. “Other.” (Related to consolidated statements of income) “‘Bad debt expenses” that were presented in “Non-operating expenses” as a separate line item in the previous fiscal year are included in “Other” under “Non-operating expenses” from the fiscal year under review due to their monetary insignificance. In order to reflect this change in presentation, the Company reclassified consolidated financial statements in the previous fiscal As a result, 1 million yen that was presented in “Bad debt expenses” and 81 million yen in “Other” under “Non-operating expenses” in the consolidated statements of income for the previous fiscal year has been reclassified into 82 million yen of (Segment information) [Segment information] 1 Overview of reporting segments Method of determining reporting segments Reporting segments of the Group are components of the Group for which separate financial information can be obtained, and for which the Board of Directors conducts reviews on a regular basis to determine the allocation of management resources and assess business performance. The Group has established business units for each product and service at its head office and sales offices, and each business unit develops comprehensive strategies for the products and services in charge to engage in business activities. Accordingly, the Group has four reporting segments: “Hotto Motto Business,” “YAYOI Business,” “MK RESTAURANTS Business,” and “Overseas Business.” The “Hotto Motto Business” sells take-out bento boxes, etc. In addition to sales through company-operated stores, it sells ingredients, packaging materials, office equipment, etc. (including maintenance and repair services thereof), to franchised stores and others to earn royalties and other income. The “YAYOI Business” sells set meals, etc. In addition to sales through company-operated stores, it sells ingredients, packaging materials, office equipment, etc. (including maintenance and repair services thereof), to franchised stores and others to earn royalties and other income. etc., at the company-operated restaurants. The “MK RESTAURANTS Business” offers shabu-shabu (thinly sliced meat boiled with vegetables) and authentic dim sum, The “Overseas Business” sells take-out bento boxes and set meals, etc., and earns royalties and other income. 2 Method used to calculate net sales, income or loss, assets and other items by reporting segment The method of accounting for reporting business segments is in accordance with accounting policies adopted for the preparation of consolidated financial statements. Profit or loss of a reporting segment is based on operating income or loss. Intersegment revenues and transfers are based on market prices. – 18 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 3 Information on net sales, income or loss, assets and other items by reporting segment Fiscal year ended February 28, 2021 (from March 1, 2020 to February 28, 2021) Net sales (1) Net sales to external customers (including other operating revenue) Hotto Motto Business YAYOI Business Reporting segment MK RESTAURANTS Business Overseas Business Total Other (Note 1) Adjustments (Note 2) (Millions of yen) Amount on financial statements (Note 3) 104,492 24,479 2,153 2,909 134,034 6,474 － 140,509 (2) Intersegment sales or transfer － － － － － 2,240 (2,240) － Total 104,492 24,479 2,153 2,909 134,034 8,714 (2,240) 140,509 Segment income (loss) 4,424 (2,683) (386) (688) 666 285 (48) 902 47,683 14,786 1,287 2,852 66,609 4,561 9,218 80,389 3,633 1,604 520 5,929 Amortization of goodwill － － Impairment loss (Note 4) 1,367 1,517 Increase in property, plant and equipment and intangible assets 1,741 1,523 － 499 281 － 3,615 3,561 171 － 230 14 26 186 － 131 － － － － 5,955 186 3,615 3,692 1. “Other” represents segments not included in reporting segments and includes one consolidated subsidiary. 2. (1) The adjustments to segment income (loss) represent corporate expenses that are not allocated to each reporting segment. (2) The adjustments to segment assets mainly consist of surplus operating funds (cash and deposits, and securities) of the parent 3. Segment income (loss) is adjusted with operating profit stated in the consolidated statements of income. 4. Impairment loss includes 714 million yen out of extraordinary losses resulting from system rebuilding. Segment assets Other items Depreciation (Notes) company. – 19 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 Fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022) Reporting segment Hotto Motto Business YAYOI Business MK RESTAURANTS Business Overseas Business Total (Millions of yen) Amount on financial statements (Note 3) Other (Note 1) Adjustments (Note 2) 2,877 (2,877) 105,972 25,359 1,848 3,007 136,187 6,849 － 143,036 Net sales (1) Net sales to external customers (including other operating revenue) (2) Intersegment sales or transfer － 64 111 － 135 33 Segment assets Other items Depreciation Total 105,972 25,359 1,848 3,007 136,187 9,726 (2,877) 143,036 Segment income (loss) 7,050 (2,349) (302) (713) 3,685 439 (71) 4,053 44,878 13,323 1,027 2,593 61,822 4,588 14,383 80,795 3,309 1,549 433 5,403 Amortization of goodwill － － － 186 Impairment loss 1,353 1,427 2,980 1,113 1,579 110 2,836 Increase in property, plant and equipment and intangible assets (Notes) 26 － 60 － － － － 5,430 186 2,980 2,896 1. “Other” represents segments not included in reporting segments and includes one consolidated subsidiary. 2. (1) The adjustments to segment income (loss) represent corporate expenses that are not allocated to each reporting segment. (2) The adjustments to segment assets mainly consist of surplus operating funds (cash and deposits, and securities) of the parent 3. Segment income (loss) is adjusted with operating profit stated in the consolidated statements of income. company. – 20 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (Per-share information) Net assets per share Profit (loss) per share Diluted earnings per share Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 1,329.87 yen 1,329.78 yen (66.39 yen) 58.05 yen 57.85 yen (Notes) 1. Diluted earnings per share for the fiscal year ended February 28, 2021 are not shown given negative earnings per share although there are dilutive shares. 2. The basis for calculation of profit (loss) per share and diluted earnings per share is as follows. Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 parent stated in the consolidated (2,545 million yen) 2,227 million yen Profit (loss) per share Profit (loss) attributable to owners of statements of income Profit (loss) attributable to owners of parent related to common shares Amount not attributable to common shareholders Average number of common shares during the period Diluted earnings per share Adjustments to profit attributable to owners of parent Increase in the number of common shares Breakdown of the increase in the number of common shares used to calculate diluted earnings per share Share acquisition rights (2,545 million yen) 2,227 million yen 38,345 thousand shares 38,372 thousand shares – – 136 thousand shares 136 thousand shares – – – – – – 21 – Plenus Co., Ltd. (9945) Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 Fiscal year ended February 28, 2021 Fiscal year ended February 28, 2022 June 14, 2010 Resolved by the Board of Directors Share acquisition rights in 14,400 Resolved by the Board of Directors Share acquisition rights in 14,000 Resolved by the Board of Directors Share acquisition rights in 14,900 Resolved by the Board of Directors Share acquisition rights in 13,600 Resolved by the Board of Directors Share acquisition rights in 8,800 Resolved by the Board of Directors Share acquisition rights in 14,800 Resolved by the Board of Directors Share acquisition rights in 12,300 Resolved by the Board of Directors Share acquisition rights in 14,400 Resolved by the Board of Directors Share acquisition rights in 14,900 Resolved by the Board of Directors Share acquisition rights in 14,400 shares shares June 20, 2011 shares June 18, 2012 shares June 17, 2013 shares June 16, 2014 shares June 10, 2015 shares June 10, 2016 shares June 9, 2017 shares June 11, 2018 shares June 11, 2019 shares June 9, 2020 – 22 – Descriptions of potentially dilutive shares that were not included in the Resolved by the Board of Directors calculation of diluted earnings per Share acquisition rights in 9,400 – share as they are not dilutive (Important subsequent events) Not applicable.