力の源ホールディングス（3561） – Supplementary Explanation Material for Financial Results of Fiscal Year Ending 31 March, 2022

Chikaranomoto Holdings Co., Ltd. (Ticker #: 3561)ver9FY2021-22 Financial Results Briefing(Supplementary Explanation Material for Financial Results of Fiscal Year Ending 31st March 2022)Copyright 2022 Chikaranomoto Group All Rights Reserved.13th May 2022INDEX FY2021-22 Financial Results Consolidated P&L Consolidated Quarterly Results Quarterly Results by Segment Segment Highlights Breakdown of extraordinary gains and losses Consolidated Balance Sheet Consolidated Statement of Cash Flow Locations of Stores Main Accomplishments FY2022-23 Financial Plan AppendixP. 3P. 4P. 5P. 7P.14P.15P.16P.17P.18P.23P.28Copyright 2022 Chikaranomoto Group All Rights Reserved.1F i n a n c i a l Re s u l t sF Y 2 0 2 1 – 2 2JapanIppudo Yume Town Kurume StoreGrand Open 27 April 2022Copyright 2022 Chikaranomoto Group All Rights Reserved.2Unit：Million YenFY2021-22ResultsFY2021-22PlanFY2020-21ResultFY2019-20Result（Bf. Covid）20,13016,53929,106Consolidated P&LRevenueGrowth rate vs PYGross ProfitSG&A ExpensesOperating IncomeOperating Income ratioOrdinary IncomeOrdinary Income ratioPre-Tax IncomeNet IncomeNet Income ratio19,398＋17.3%13,74312,6921,0505.4%1,0835.8%9309234.8%-43.2%-11,47020,64012,45119,943—5482.7%5092.5%2481.2%-980-1,010—–2,373-2,3926972.4%6232.1%-344-214-Domestic revenue growth remained flat across the year due to restrictive regulations except for 3Q.Overseas segment saw more significant growth after lift of lockdown measures.Revenue +17.3% vs previous year. Highest operating income in history in terms of both amount and ratio.Copyright 2022 Chikaranomoto Group All Rights Reserved.3Consolidated Quarterly Results vs previous yearsRevenueOperating IncomeUnit：Million YenQ1Q2Q3Q4Q1Q2Q3Q48,0007,0006,0005,0004,0003,0002,0001,00006004002000-200-400-6005,364 5,274 10119 4,572 4,188 7,223 7,549 7,521 6,813 4,528 3,344 3,729 4,939 -403 -507 449 349338 242 255-21 -7-48 Operating Income ratioQ1Q2Q3Q40..5%5..3%6..3%8..5%—1..4%4..6%3..4%–FY21FY20FY19FY19FY20FY21FY19FY20FY21Revenue showed growth compared to previous FY.Operating income continued the positive trend in Q3 as a result of store efficiency improvement and cost reduction.Copyright 2022 Chikaranomoto Group All Rights Reserved.4Quarterly Revenue by Segmentvs previous yearsDomestic Store OperationsInternational Store OperationsUnit：Million YenQ1(Apr-Jun)Q2(Jul-Sep)Q3(Oct-Dec)Q4(Jan-Mar)Q1(Jan-Mar)Q2(Apr-Jun)Q3(Jul-Sep)Q4(Oct-Dec)5,0004,5004,0003,5003,0002,5002,0001,5001,00050001,003 2,276 3,087 2,531 2,261 4,197 4,557 4,440 2,508 1,482 1,539 1,499 2,422 2,348 2,337 2,600 2,672 2,955 1,0001,968 3,758 2,488 1,622 1,282 544 FY19FY20FY21FY19FY20FY213,0002,5002,0001,5005000Covid-19 restrictive regulations were mostly lifted in both domestic and overseas in Oct – Dec, with recovery in overseas business especially significant.Copyright 2022 Chikaranomoto Group All Rights Reserved.5Quarterly Operating Income by Segment vs previous yearsQ4Q1Q4Q1Q2Q3Q4FY 2021Q2Q3Unit：Million YenFY 2022FY 2020Q3Q2266122Q1922.2%5.8%2.7%1.4%8.1%5.7%3.2%2051777930 441.5%-73-51Domestic-196-331Operating Income ratio41749 51 92 12 155 156 171 205 6.4%6.7%7.3%7.9%1.7%3.3%3.3%6.2%18.6%International-19 -85 -292 Domestic:Same portions of fixed costs incurred during lockdowns in Q1,Q2,Q4 were recognized as extraordinary losses in accordance with government instructions.International: operating income increased with recovering revenue.Copyright 2022 Chikaranomoto Group All Rights Reserved.64003002001000-100-200-300-40045035025015050-50-150-250-350Domestic: FY2021 revenue 100.5% vs previous FY(Existing stores only)❏ FY2021-22 Domestic Year-Over-Year Revenue/Number of Customers/Average Check180.0%168.2%RevenueRevenue(FY2020)Restriction resumed in January, but released in March.113.3%109.8%105.6% 104.2%101.1%95.3%95.2%83.4%91.4%57.8%56.2%68.8%74.0%68.0%75.6%97.2%92.2%99.3%76.1%60.4%55.3%54.8%42.7%RestrictedReleasedRestrictedAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarTotal168.2% 91.4% 105.6% 104.2% 95.3% 83.4% 95.2% 101.1% 109.8% 113.3% 92.2% 97.2% 100.5%Number ofCustomers 160.4% 90.5% 103.9% 102.7% 94.1% 82.4% 93.3% 99.3% 108.5% 113.3% 91.5% 96.5% 99.2%104.8% 101.0% 101.7% 101.5% 101.3% 101.3% 102.0% 101.9% 101.2% 100.0% 100.8% 100.8% 101.3%Copyright 2022 Chikaranomoto Group All Rights Reserved.7160.0%140.0%120.0%100.0%80.0%60.0%40.0%20.0%0.0%SalesAverageCheckHighlights: Domestic Store Operations RevenueQ3. Revenue growth remained flat across the year due to restrictive regulations except for RAMEN EXPRESS (6 stores) were converted into Ippudo, bringing in higher revenue. Acquisition of new customer groups by plant-based products. Strengthening of delivery/ take-away services More frequent topping ordering by customers with mobile ordering, leading to higher 7 new roadside stores opened under the new investment strategy, all showing average check.satisfactory performance. Operating IncomeIntelligence tools. Better CoGs and Labor costs management through weekly trend analysis via Business Strategic restructuring including relocation/closing down of 7 underperforming stores. Improved cost efficiency by optimaizing organizational units. Improved profitability through digital transformation such as mobile ordering.Copyright 2022 Chikaranomoto Group All Rights Reserved.8Int’l: Year-to-date sales 116.1% vs previous FY(Existing stores only)❏ FY2021-22 International Year-Over-Year Sales/Number of Customers/Average Check260.0%RevenueRevenue（FY2020）Resilient performance even under the negative impact of Covid-19 lockdowns.(Only stores in dine-in operation are included.)221.7%159.8%134.9%132.1% 135.2% 132.3%117.8%106.8%124.7%87.3%110.0%74.5%60.0%96.7%81.4%73.0%58.9%49.5%80.1%64.4%64.3%72.0%71.3%78.8%63.2%62.2%No lockdown in all areas of company-owned business JanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecTotalSales74.5% 106.8% 124.7% 221.7% 73.0% 159.8% 134.9% 87.3% 132.1% 135.2% 132.3% 117.8% 116.1%67.2% 98.6% 116.9% 208.2% 67.1% 162.9% 138.8% 76.3% 108.0% 113.8% 110.6% 107.0% 101.5%110.8% 108.3% 106.7% 106.5% 108.8% 98.1% 97.2% 114.4% 122.3% 118.8% 119.6% 110.0% 114.4%9Copyright 2022 Chikaranomoto Group All Rights Reserved.210.0%160.0%10.0%Number ofCustomersAverageCheck140.0%130.0%120.0%110.0%100.0%80.0%For ref: Jan – Apr 2022 vs. PY (existing stores)❏ International❏ DomesticRevenueNumber of Customers125.7% 123.9%RevenueNumber of Customers102.9% 97.9%90.0%92.1%87.3%100.4%100.7%103.8%92.2% 97.2%102.8%96.5%91.5%RestrictedJanFebMarAprJanFebMarAprJanFebMarAprJanFebMarAprRevenue102.9%97.9% 125.7% 123.9%Revenue113.3%92.2%97.2% 103.8%92.1%87.3% 100.4% 100.7%113.3%91.5%96.5% 102.8%Number ofCustomersAverageCheckNumber ofCustomersAverageCheck111.7% 112.1% 125.2% 123.0%100.0% 100.8% 100.8% 101.0%Copyright 2022 Chikaranomoto Group All Rights Reserved.10113.3%113.3%140.0%130.0%120.0%110.0%100.0%90.0%80.0%dining-in. sites.revenue.Highlights：International Store Operations Revenue（Jan～Dec 2021）Significant revenue rebound in Q4 when lockdown measures were lifted in all countries and regions with owned business. Delivery/take-away, started during the pandemic period, continues strong growth, evolving into an important sales channel together with Frozen ramen for retailing started in both in-stores and E-commerce Operating Income（Jan～Dec 2021）Operating income rebounded quickly in Q4 as a result of recovered Same initiatives as in Japan such as mobile ordering, digital transformation, etc, leading to cost reduction and positive profitability.（Government Covid subsidies were recognized as extraordinary gains）Copyright 2022 Chikaranomoto Group All Rights Reserved.11Merchandizing and Corporate OverheadUnit：Million YenMerchandizingFocused on E-Commerce site and retailing. Significant growth in sales of Ippudo branded products, leading to increased revenue (115.1% vs PY) and operating income (+12 mil JPY vs PY).2,5002,0001,5001,000Revenue2,214 2,074 1,923 Operating Income11.6%12.1%269 256 5004003002001000OperatingIncomeOperatingIncome ratio4.7%104 FY19FY20FY21FY19FY20FY21115.1% vs PY104.9% vs PYCorporate Overhead and SG&A RatioCorporateOverheadSG&A ratio (over consolidated revenue) reduced by 0.3 points compared to last year, on top of almost 50% cost reduction already achieved in last year.100050002.2%605 FY181.8%520 FY19Copyright 2022 Chikaranomoto Group All Rights Reserved.Corporate OverheadSG&A ratio2.0%324 FY201.7%今期322 FY212.5%2.0%1.5%1.0%12Revenue BreakdownFY 2021-22 RevenuePercentage of Int’l Revenue33.4% 33.4%35.0%31.2%Merchandizing11.4%Int’l35.0%25.5%21.6%Domestic53.5%DomesticInt’lMerchan-dizingConsoli-dated10,3876,7962,21419,398FY16FY17FY18FY19FY20FY21Mar 2017Mar2018Mar2019Mar2020Mar2021Mar20222045653349824966577357745876115130131134Copyright 2022 Chikaranomoto Group All Rights Reserved.1340.0%30.0%20.0%10.0%0.0%No. of Stores(Int’l)OwnedLicensedTotalBreakdown of Extraordinary Gains and LossesGovernment subsidies related to covid-19 regulationsGain from debt forgiveness※Related to termination of JV with Panda Restaurant Group, as disclosed on 28 Jan 2022Total Extraordinary GainsItemItemLosses from Strategic RestructuringClosedDivestingImpairment6 Stores1 Stores14 StoresLosses from shortened operating hours due to Covid restrictive regulationsFixed expendituresLosses from termination of JV※Related to termination of JV with Panda Restaurant Group, as disclosed on 28 Jan 2022OthersTotal Extraordinary LossesAmount（million Yen）1746Domestic ： 1,336Int’l ： 4102,275Amount（million Yen）511991901Domestic ： 714Int’l ： 187487522,428Copyright 2022 Chikaranomoto Group All Rights Reserved.14Consolidated Balance SheetEquity ratio improved with Equity Financing and better peformanceMar2022Mar 2021GAPUnit：Million YenMar2021Mar2022GAPCurrent Assets（Cash and Deposits）5,832（3,974)6,650（4,773)+818(+798)Property, Plant and Equipment7,238 5,703 -1,535IntangibleAssets206177-28Investments & Others2,396 2,739+343Total Liabilities14,360 11,470 -2,890Shareholders’ EquityAccumulated OtherComprehensive IncomeNon-Controlling Interest1,313 3,647 +2,334-0144+144-8+8Non-Current Assets9,841 8,620 -1,220Total Net Assets1,312 3,800 +2,488Total Assets15,673 15,271-401Total Liabilities and Net Assets15,673 15,271-401■Assets・Cash and deposits・Non-Current Assets +798－1,563■Liabilities・Notes and accounts payable -1,521-1,765・Interest bearing loans※Equity Ratio 24.8%（8.4% at of end of March 2021）■Shareholders’ Equity・Capital ・Retained earnings +1,584+749Non-current assets decreased due to impairments recognized following the strategic restructuring in both domestic and international businesses. Equity ratio improved with equity financing disclosed on May 14, 2021 and improved performance of the business overall.※Refer to public disclosure released on 14 May 2021 for details of Equity financing.Copyright 2022 Chikaranomoto Group All Rights Reserved.Consolidated Statement of Cash FlowUnit：Million YenSubsidy receiptImpairmentA/P DecreaseDepreciationLoss from LockdownsSubsidy incomeDebt forgiveness incomeLong term LoanPre-Tax income4,347Corporate Tax PaymentEquity FinancingFixed Assets AcquisitionOthers5,125Long term Loan repaymentMar2021Mar2022Cash and cash equivalents +778現金及び現金同等物は+778百万円EBITDA +2,254EBITDAは＋2,254百万円Copyright 2022 Chikaranomoto Group All Rights Reserved.16Locations of Stores2 7 7 S t o r e s i n 1 5 c o u n t r i e s a n d r e g i o n sAs of 31st December 2021( – 3 s i n c e t h e e n d o f p r e v i o u s F Y )D o m e s t i c 1 4 3 , I n t e r n a t i o n a l 1 3 4（ O w n e d 1 7 8 , l i c e n s e d 9 9 ）North America（12）U.S.A 12Europe（7）UKFrance43Asia（104）SingaporeMalaysia ＜License＞Thailand ＜License＞Philippines ＜License＞IndonesiaChina/Hong Kong ＜License＞TaiwanMyanmar＜License＞Vietnam ＜License＞111019116281522Japan （143）IPPUDORAMEN EXPRESSInaba UdonOthers Sub-total DomesticIncluding licensees100289614323Oceania（11）Australia＜including licensees＞New Zealand92Copyright 2022 Chikaranomoto Group All Rights Reserved.17M a i n Ac c o m p l i s h m e n t sCopyright 2022 Chikaranomoto Group All Rights Reserved.Malaysia IPPUDOLaLaport BBCCGrand Open 8 Feb 202218Seasonal ProductsNew seasonal or regional limited edition itemsto acquire new customers and encourage repeat visits.Copyright 2022 Chikaranomoto Group All Rights Reserved.19MerchandizingLaunch of PLANT-BASED SHIROMARU ・ AKAMARU for retailing.Limited edition items and branded merchandise on E-Commerce site, for both domestic and overseas markets.Copyright 2022 Chikaranomoto Group All Rights Reserved.20New Investment Strategy and Digital TransformationIppudo Sakai IC(Opened 13th Dec 2021)Self-service Cashier@Ippudo Sakai ICQR Code Ordering@ IPPUDO Singapore I12 Katong(Opened 23rd Dec 2021)New stores under the new investment strategy are delivering satisfactory performance after continuous adjustments.Trials with contactless ordering by QR Code showed potentials, expecting for wider adoptions in both domestic and overseas stores. (30% completed in domestic)Experimentation with self-service cashier also started at Ippudo Sakai IC.Automated invoicing system to streamline approval process.Copyright 2022 Chikaranomoto Group All Rights Reserved.SDGs of ChikaranomotoClick the link for details力の源グループのSDG’sへの取り組みに関するお知らせ「IPPUDO at Your Town」campaign through partnerships,in which “kitchen cars” provided free ramen for families with kids. “Traveling Child-Kitchen” using kitchen cars, providing ramen and gyoza cooking experiences for kids, to be implemented in future.Copyright 2022 Chikaranomoto Group All Rights Reserved.F Y 2 0 2 2 – 2 3F i n a n c i a l P l a nJapan IPPUDOSakai I.C. StoreGrand Open 13 Dec 2021Copyright 2022 Chikaranomoto Group All Rights Reserved.23FY2022-23 Financial PlanUnit：Million YenFY2021-22 ResultFY2022-23Planvs Previous YearGap%19,39823,705+4,306 +22.2%1,0501,0831,3831,355+333 +31.7%+272+25.1%923950+27+2.9%RevenueOperatingIncomeOrdinaryIncomeNet IncomeAttributable to ShareholdersRevenue recovery is expected to be moderate as the economy recovers gradually from pandemic downturn in both domestic and overseas markets.To overcome the cost increase in raw materials, labor and utilities with the established cost control.Planned increase in both top and bottom line.Copyright 2022 Chikaranomoto Group All Rights Reserved.24FY2022-2023 Financial Plan: RevenueUnit：Million Yenvs Previous Year ％FY20FY21FY2225,00020,00015,00010,0005,0000Domestic＋8.6%11,27610,3879,252Int’l＋46.6%9,9636,7965,418Merchandizing＋11.4%2,4651,8692,214Consolidated＋22.2%23,705 19,398 16,539 Total new stores: 17（incl. licensees 3）Close-down/divesting planned: 11New store plan to be updated with multiple candidate locations still under evaluation. Copyright 2022 Chikaranomoto Group All Rights Reserved.252,0001,5001,0005000-500-1,000-1,500FY2022-2023 Financial Plan: Operating IncomeUnit：Million YenFY20FY21FY22Consolidated＋3331,3831,050936536492611301246269-535-367Domestic＋44Int’l＋325-324-322-392Merchandizing+31CorporateOverhead-69-980Profitability benefiting from various projects: roadside store model, strategic restructuring, digital order/smart phone payment, digital transformation, etc. Corporate Overhead ratio is expected to be 1.7%（maintaining the same level as FY2021）Copyright 2022 Chikaranomoto Group All Rights Reserved.26Major Financial IndicatorsRevenueOperating Income27,466 29,106 23,705 1,40019,398 16,539 957 697 1,050 1,383 19/0320/0321/0322/0323/0319/0320/0321/0322/0323/03Operating Income Ratio-980 ROE36.2%31.0%5.4%5.8%3.5%2.4%14.4%-5.9%-5.3%-93.5%19/0320/0321/0322/0323/0319/0320/0321/0322/0323/03Copyright 2022 Chikaranomoto Group All Rights Reserved.271,900900400-100-600-1,10040.0%35.0%30.0%25.0%20.0%15.0%10.0%5.0%0.0%30,00025,00020,00015,00010,0005,00009.0%6.0%3.0%0.0%Ap p e n d i xCopyright 2022 Chikaranomoto Group All Rights Reserved.Singapore IPPUDOI12 KatongGrand Open 23 Dec 202128Founding Principles■ Founding Principles ■We will continuously create new values through food, and communicate those values to the world with “Smile” and “Arigatou”.Keep changing to remain unchanged.*The founding principles were amended before our 35th anniversary on 16th October 2020, to reflect our determination and hopes for further growth and new opportunities despite the challenges posed by Covid-19 — to continuously innovate to remain true.Copyright 2022 Chikaranomoto Group All Rights Reserved.29Corporate ProfileChikaranomoto Holdings Co., Ltd. (Ticker#:3561)Daimyo 1-13-14, Chuo-ku, Fukuoka City, Fukuoka, Japan30th October 1986■ Capital Stock2,139,830,000JPY（Number of issued shares: 27,042,400 shares）■ Address■ Date of Establishment■ Fiscal Term■ Number of Employees■ List of DirectorsEnd of March33（consolidated: 505） ※Permanent employees onlyPresident and Representative DirectorMr. Shigemi KawaharaDirectorMr. Toru NakaoDirector and Chief Strategy OfficerMr. Tomoyuki YamaneDirector（Audit Committee）Mr. Akihiro SaitoDirector（Audit Committee, Independent）Mr. Tetsuya TsujiDirector（Audit Committee, Independent）Mr. Shinji TanabeCopyright 2022 Chikaranomoto Group All Rights Reserved.30As of 31st March 2022Signature ProductsShiromaru ClassicAkamaru ModernKiwami KarakaKeeping in line with the founding recipe, silky yet high in flavors and fragrance, the Classicsoup is the very original taste of Ippudo Tonkotsuramen. Ultra-thin noodles, typical of Hakata, accentuates this all time favorite of IPPUDO. A modern take on the Classic, Akamaru adds a slightly spicy mixed miso paste and fragrant oil, to give the senses a gentle kick. Slightly thicker noodles match perfectly with a bowl full of flavors. A spicy take on the silky Tonkotsu soup with house-made spicy Rayu oil and a meat miso paste mixed with a myriad of spices. Topping with specially seasoned deep fried Tempura dough, a Sesame Bomb gives this bowl a unique Tantanmen-like flavor.Copyright 2022 Chikaranomoto Group All Rights Reserved.31Our MilestonesSpreading ‘Smile’ and ‘Arigatou’ through Bowls of Ramen.2022.4Listed on Tokyo Stock Exchange Prime Market2019.10Global LeadershipConference2018.11 100th store overseas 2018.3Listed on Tokyo Stock Exchange First Section2017.3Listed on Tokyo Stock ExchangeMothers Index2016.2IPPUDO Paris:the first store in France2015.1030th anniversary event2014.10IPPUDO London: the first store in Europe2009.5IPPUDO Singapore: the first store in Asia2008.3IPPUDO New York: the first store overseas1997.1Mr. Shigemi Karahara won championship 3 times consecutivelyin TV show by TV Tokyo “TV Champion Ramen Chef”1995.4IPPUDO Ebisu: the first store in Tokyo1994.３IPPUDO in Ramen Museum in Yokohama1985.10.16IPPUDO Daimyo: The first Ippudo restaurant in Fukuoka.1979.11Mr. Shigemi Kawahara started the bar “After the Rain” in FukuokaCopyright 2022 Chikaranomoto Group All Rights Reserved.32DisclaimerThis material is published solely for information purpose, and is not to be construed as an offer to sell or the solicitation of an offer to buy any security.Any information expressed herein on this date is subject to change without notice. Without the written consent of Chikaranomoto Holdings Co., Ltd., information in this material shall not be disclosed to a third party for any purpose.Certain statements in this material are forward-looking statements, including but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives of Chikaranomoto Holdings Co., Ltd..Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results to differ materially from those expressed in the statements. Copyright 2022 Chikaranomoto Group All Rights Reserved.33Copyright 2022 Chikaranomoto Group All Rights Reserved.34