クリエイト・レストランツ・ホールディングス（3387） – [Delayed] Financial Results of Fiscal 2022（Supplementary Material）

Financial Results of Fiscal 2022（Supplementary Material）Unlimited excitement! Welcome diversityCollaborate to create Surprise the worldCopyright © 2022 create restaurants holdings inc. All Rights Reserved.April 14, 2022create restaurants holdings inc.【TSE Prime, Stock code: 3387】ContentsⅠ．Financial Highlights１．Financial Results Overview［IFRS］２．Outlet Operating Conditions and Same-store Sales vs. FY2020 ３．Financial Results Overview（By Category）４．Financial Condition①②５．TopicsⅡ．Business Forecasts for Fiscal 2022１．FY2023 Business Forecasts2．FY2023 Business Forecasts (By Category)Ⅲ．Shareholder Reward Policy１．Shareholder RewardⅣ．Medium-term Management Plan１．Mid-to Long-term Growth Strategy (Overview)２．Progress of the Medium-term Management Plan３．Numerical TargetsⅤ．Appendix１．Opening and Closing of Outlets２．Same-store Sales Transition３．Financial Position４．Sustainability Initiatives①②Copyright © 2022 create restaurants holdings inc. All Rights Reserved.１Ⅰ．Financial HighlightsCopyright © 2022 create restaurants holdings inc. All Rights Reserved.２1. Financial Results Overview［IFRS］Revenue: 78.3 billion yen, Operating profit: 7.6 billion yen, Profit attributable to owners of parent: 5.9 billion yen, Adjusted EBITDA: 27.1 billion yen Revenue Operating profits・ Although revenue was generally in line with the plan until the end of Q3, it fell short of the forecasts as the stricter COVID-19 measures were expanded to more prefectures and its period was extended reflecting the spread of the Omicron variant from Q4.・ YoY change in same-store sales*1 was 52.7% for the full year (forecast: 60.6%)・ V-shaped recovery from the deficit in the previous fiscal year・ Established a lean cost structure generating profits even with low revenue (lowered break-even point)⇒ Adjustment EBITDA was in line with expectations[Major factors behind -3.1 billion yen compared to forecast]: ① Recorded subsidy for January and February (generated in FY2022) in FY2023 (-2.2 billion yen); ② conservatively added impairment losses at the end of the period (-2.7 billion yen)*1 ： Same-store sales are calculated based on the figures for FY2020 before COVID-19, including temporarily closed outlet.*2：Adjusted EBITDA= Operating profit + Other operating expenses – Other operating revenues (excluding sponsorship income, employment adjustment subsidies, subsidy for shortenoperation hours, rent reductions and exemptions, etc.) + Depreciation and amortization + non-recurring expense items (advisory expenses related to share acquisition, etc.)Copyright © 2022 create restaurants holdings inc. All Rights Reserved.３(Million yen) ResultsResultsResultsResultsResultsResultsForecastsRevenue74,42517,74016,75321,22722,60378,32491,200△ 12,875Operating profit△ 14,1811,5205,7944,405△ 4,0867,63310,800△ 3,166Profit before taxes△ 15,0211,4615,7094,295△ 4,3317,13410,200△ 3,065Profit for the period△ 15,5711,0684,1993,118△ 1,7256,6607,400△ 739Profit attributable toowners of parent△ 13,8741,0673,7552,625△ 1,5305,9196,500△ 580Adjusted EBITDA *25,1305,5629,5589,0982,86927,08827,100△ 11Vs. forecastsFY2022Q3 (Sep-Nov)FY2022Q1 (Mar-May)FY2022Q2 (Jun-Aug)FY2021(Previous fiscal year)FY2022(Total)FY2022(Disclosed on Oct. 14,2021)FY2022Q4 (Dec-Feb)２. Outlet Operations and Same-store Sales vs. FY2020・For the entire year, there were only about 3 months for which there were no requests from local governments for shorter operating hours, etc.・Normal business operations are not possible due to shortened operating hours, temporary closures, refraining from serving alcoholic beverages, etc.・Customers’ consumption behavior, which has changed due to the self-restraint lifestyle, did not return immediately.2nd State of Emergency(Jan. 8-Mar. 21)3rd State of Emergency(Apr. 25-Jun. 20)4th State of Emergency(Jul. 12-Sep. 30)Stricter COVID-19 Measure(Apr. 12- Apr. 24)Stricter COVID-19 Measure(Jun. 21- Jul. 11)Same-store sales vs. FY2020※２51.9%47.6%51.0%42.2%35.5%38.3%40.5%The stricter COVID-19 measures were completely lifted on March 21. Approximately 98% of the Group’s operations resumed at the end of March, and the same-store sales vs. FY2020 has recently recovered to 74.5%.Period to prevent re-spreading(Oct. 1-24)65.5%74.1%74.9%Stricter COVID-19 Measure(Jan. 21- Mar. 21)As of Apr. 10: Recovered to 74.5%*Preliminary figure for march57.1%58.1%47.1％(Unit: outlets)32 637 1,2001,0008006004000315 278 73 196 229 217 18 26 73 227 194 468 549 649 671 636 667 724 542 607 563 589 21 575 435 200404 292 241 270 328 182 171 190 176 432 470 397 Mar. 2021 Apr. 2021 May 2021 Jun. 2021 Jul. 2021 Aug. 2021 Sep. 2021 Oct. 2021 Nov. 2021 Dec. 2021 Jan. 2022 Feb. 2022 Mar. 2022Outlets operating with regular hours (consolidated)Outlets operating with shorter hours (consolidated)Temporarily closed outlets (consolidated)*1:Periods of various requests, etc. listed are based on the Tokyo Metropolitan Government announcement.*2: Definitions of “same-store sales vs. FY2020” are calculated by comparing outlets opened before the previous fiscal year (FY2020) prior to the COVID-19 crisis and by including outlets that were closed during the period.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.４３.Financial Results Overview（By Category）Overview by category[Same-store sales vs. FY2020 by Category]・In the CR Category/Specialty Brand Category, although revenue was almost at the same level as Q3, category CF decreased compared to Q3 due to a delay in the timing of recording subsidies for shorten operating hours.・In the SFP category, revenue was on a recovery trend during the busy December and year-end and New Year periods, and increased compared to Q3. However, the category CF was in the red due to the impact of shortened operating hours and temporary closures from January, as well as the delay in the timing of recording subsidies for shorten operating hours.・In the Overseas Category, the trend of infections has stabilized with the exception of Hong Kong, and both revenue and Category CF have increased compared to Q3.RevenueCategory CF(Million yen)24,00019,00014,0009,0004,000△ 1,000 (Million yen)11,0009,0007,0005,0003,0001,000△ 1,000 FY2022 Q1FY2022 Q2FY2022 Q3FY2022 Q4FY2022 Q1FY2022 Q2FY2022 Q3FY2022 Q4CRSFPSpecialty BrandOverseasAdjustments, etc.CRSFPSpecialty BrandOverseasAdjustments, etc.(Million yen)*1: “Other adjustments, etc.” mainly consist of depreciation expenses associated with the adoption of IFRS16, as well as head office expenses that are not allocated to individual categories.*2: Category CF = Operating income (Japan GAAP) + depreciation + amortization of goodwill + sponsorship income + non-recurring expenses + Limited-time earnings items (employment adjustment subsidy and subsidy for cooperation of shorten operating hours, etc.)*3: Figures for FY2022 are based on the amount of subsidy for cooperation of shorten operating hours expected to be posted in the FY2023.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.５CategoryQ1(Mar.-May)Q2(Jun.-Aug.)Q3(Sep.-Nov.)Q4(Sep.-Nov.)Full-yearCR47.8%46.7%61.6%65.1%54.8%SFP24.6%12.0%38.3%44.6%30.1%Specialty Brand52.8%52.4%65.8%63.5%58.4%Overseas58.1%79.4%88.0%83.5%78.2%Consolidated45.1%43.6%60.0%61.8%52.7%RevenueCategory CF *2Ratio torevenueRevenueCategory CF *2Ratio torevenueRevenueCategory CF *2Ratio torevenueRevenueCategory CF *2Ratio torevenueRevenueCategory CF *2Ratio torevenueRevenueCategory CF *2Ratio torevenueCR27,253△ 1,374-7,0331,50921.5%6,8943,35848.7%8,1652,35928.9%8,0045867.3%30,0987,81226.0%826SFP17,428△ 2,095-2,2291396.3%1,0961,452132.4%3,1361,91160.9%3,942△ 308-10,4043,19530.7%769SpecialtyBrand25,542△ 329-6,37497915.4%6,0001,78729.8%6,9041,62423.5%7,4922062.8%26,7724,59817.2%614Overseas5,146△ 494-2,4011014.2%3,0211896.3%3,3842427.2%3,5313088.7%12,3408426.8%-Adjustments, etc.*1△ 9459,424-△ 2982,831-△ 2602,770-△ 3652,960-△ 3672,076-△ 1,29110,639–Total74,4255,1306.9%17,7405,56231.4%16,7539,55857.1%21,2279,09842.9%22,6032,86912.7%78,32427,08834.6%2,210CategoryFY2022 Q4Reference *3Subsidy forcooperation(Delay in recordingperiod)FY2022 Q1FY2022 Q2FY2022 Q3FY2021 (cumulative)FY2022 (total)４．Financial Condition① -Improving Financial Position-Improving our financial position by a capital increase through public offering and reducing assets.①Raised 16.2 billion yen through public offering (including third-party allotment)②15 billion yen of perpetual subordinated loan was repaid at the end of February⇒Equity capital (equity attributable to owners of the parent) increased 6.7 billion yen from the end of the previous fiscal year due to ① and ②, as well as 5.9 billion yen in profit for the period.③Repayment of bonds and borrowings④Rationalize the level of liquidity on hand (deposits + commitment line (blank limit): 28.5 billion yen)⇒As a result of ③ and ④, total assets (total liabilities and equity) were reduced by 28.3 billion yen from the end of the previous period.Adjusted shareholders’equity ratio* significantly improved from 16.6% (FY2021) to 28.0%.Change in the shareholders ‘ equity ratio25.3%22.6%17.6%16.6％28.0％17.8%Adopted IFRS 16 from FY2/2010.8%10.5%30.0%25.0%20.0%15.0%10.0%5.0%0.0%2018年2月期FY20182019年2月期FY20192020年2月期FY20202021年2月期FY20212022年2月期FY2022自己資本比率Shareholders’ equity ratio調整後自己資本比率（除IFRS16号影響）Shareholders’ equity ratio(excluding the impact of adopting IFRS16)*Adjusted shareholders’ equity ratio: Ratio of shareholders’ equity ratio (ratio of equity attributable to owners of the parent) excluding the impact of adopting IFRS16.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.6４．Financial Condition② ‐Condensed balance sheet(Million yen)*1: Adjusted shareholders’ equity ratio: Ratio of shareholders’ equity ratio (ratio of equity attributable to owners of the parent) excluding the impact of adopting IFRS16.*2: Adjusted net D/E ratio: Multiple of net D/E ratio excluding the impact of IFRS16.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.７FY2021FY2022Change NoteCurrent assets45,75028,685△ 17,065　[Cash and deposits]37,31221,502△ 15,810Optimize the level of liquidity on hand (④)Non-current assets116,216104,919△ 11,297Total assets161,966133,605△ 28,361Current liabilities64,65932,018△ 32,641Repayment of bonds and borrowings (③)Non-current liabilities74,04270,855△ 3,187　[Bonds and borrowings (total)]70,26541,387△ 28,878Repayment of bonds and borrowings (③)Total liabilities138,702102,874△ 35,828Total capital23,26430,730+7,466　[Ownership of the parent]17,05223,788+6,736Total liabilities and assets161,966133,605△ 28,36110.5%17.8%+7.3%4.79×2.65x△2.14x Figures excluding the impact of IFRS No.16 FY2021FY2022Change Note116,63393,583△ 23,05091,01060,211△ 30,79919,35826,376+7,01816.6%28.0%+11.4%Adjusted net D/E ratio (*2)1.76×0.79x△0.97x　　[Ownership of the parent] (Excluding the impact of IFRS16)Adjusted shareholders’ equityratio (*1)Capital increase through public offering:16.2 billion yen (①), perpetualsubordinated loan repayment: -15 billionyen (②) and periodic income: 5.9 billionyenNet D/E ratioShareholders’ equity ratio(Ratio of equity attributable to owners ofparent to total assets)Total assets (Excluding theimpact of IFRS16)Total liabilities (ExcludingImpact of IFRS16)５.Topics -Pursue further group synergies Inter-group cooperation beyond company boundariesNEW・Cheese-centric restaurant “Ricotta” operated by CR ⇒ Cafe format “Azusa Coffee” operated by KR (first store opened in a commercial facility)・At an Italian restaurant “TANTO TANTO” operated by LGEW, we offer breads of “IKEDAYAMA”, a bakery format operated by GBC, as a buffet menu.⇒ Introducing to more outlets thanks to the great response (plan to be expanded to AWkitchen Tama Center and outlets in Kansai area from May)・At golf course restaurants operated by CR, we offer special menus collaborated with “Takakura”, a Tsukemen (dipping ramen noodle) restaurant, and “Mr.FARMER”, a vegetable-centric cafe operated by LGEW.Development of new sales stylesNEW・Introduced a new food truck at “IKEDAYAMA”, a bakery format operated by GBC・Strengthen product sales by utilizing IC’s central kitchen⇒ Production and sales of instant noodles and dressings* [Each abbreviation] CR: create restaurants; KR: KR HOLDINGS (including KR Food Service); LGEW: LG&EW; GBC: Gourmet Brands Company; YNR: YUNARI; IC: IcchouCopyright © 2022 create restaurants holdings inc. All Rights Reserved.８Ⅱ．Business Forecasts for Fiscal 2022Copyright © 2022 create restaurants holdings inc. All Rights Reserved.９１．FY2023 Overview of Business ForecastsRevenue: 115 billion yen ; Operating profit: 7.3 billion yen ; Profit attributable to owners of parent: 4.5 billion yen ; Adjusted EBITDA: 24.7 billion yenExternal environmentAssumptionsAlthough the stricter COVID-19 measures were lifted on March 21, the environment remains uncertain due in part to concerns about new variants.・Maintain and strengthen lean cost structure・Same-store sales for the year were 78.5% compared with FY2020 (before COVID-19) Customers’ lifestyles have changed due to the introduction of remote working and the acceleration of digitization, and it become normal.・Taking on the challenge of developing business formats toward the post-COVID era with our capabilities to response to changes・Promoting outlet openings/closures and brand changes with an awareness of investment efficiency under the theme of “selection and concentration” for regrowth* Adjusted EBITDA= Operating profit + Other operating expenses – Other operating revenues (excluding sponsorship income, employment adjustment subsidies, subsidy for shorten operation hours, rent reductions and exemptions, etc.) + Depreciation and amortization + non-recurring expense items (advisory expenses related to share acquisition, etc.)Copyright © 2022 create restaurants holdings inc. All Rights Reserved.１０(Million yen)ResultRatio torevenueForecastRatio torevenueRevenue78,324115,000+36,675+46.8%Operating profit7,6339.7%7,3006.3%△ 333△4.4%Profit before taxes7,1349.1%6,8005.9%△ 334△4.7%Profit for the year6,6608.5%5,1004.4%△ 1,560△23.4%Profit attributable toowners of parent5,9197.6%4,5003.9%△ 1,419△24.0%Adjusted EBITDA *27,08834.6%24,70021.5%△ 2,388△8.8%FY2022FY2023ChangePct.change２．FY2023 Business Forecasts (By Category)CategoryCRSFPSpecialtyBrandAdjustments, etc.TotalFY2022(Previous year results)FY2023(Full-year forecasts)ChangeRevenueCategory CFRevenueCategory CFRevenueCategory CFRatio to revenueRatio to revenueRatio to revenue30,09810,4047,81226.0%3,19530.7％40,50024,5005,60013.8％＋10,402△2,212 △12.1％3,00012.2％＋14,096△195 △18.5％26,7724,59817.2％36,6004,40012.0％＋9,828△198△5.2％Overseas12,3408426.8％15,0001,2008.0％+2,660+358+1.2%△1,29110,639－△1,60010,500－△309△139－78,32427,08834.6%115,00024,７0021.５％＋36,676△2,３88 △13.1％* Category CF = Operating income (Japan GAAP) + depreciation + amortization of goodwill + sponsorship income + non-recurring expenses + Limited-time earnings items (employment adjustment subsidy and subsidy for cooperation of shorten operating hours, etc.)* Adjustments, etc. is mainly head office expenses not allocated to the respective Category and Adjustments, etc. included depreciation and amortization related to the adoption of IFRS 16.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.１１NewClose526132151821551219241922485530581,03730241,043Group totalEnd-FY2023ForecastsCRSFP OverseasCategoryTotal no.at end ofFeb. 2022Increase/DecreaseSpecialty BrandⅢ．Shareholder Reward PolicyCopyright © 2022 create restaurants holdings inc. All Rights Reserved.1２１．Shareholder RewardDividend✔ The annual dividend forecast for FY2023 is 6.00 yen per share, consisting of interim and year-end dividends of 3.00 yen each.(Unit: yen)8.00Annual dividend per share (yen)6.004.002.000.005.00 6.00 6.00 4.50 FY2018(Results)FY2019(Results)FY2020(Results)FY2022(Results)FY2023(Forecasts)3.00 0.00 FY2021(Results)*As the Company conducted a 2-for-1 stock split on March 1, 2020, the figures are retroactively adjusted.Shareholder special benefitplanWe will continue to implement it as part of our corporate policy since we have positioned this as an important measure for returning profits to shareholders.✓Extension of expiration date① Valid until November 30, 2021 (purple tickets)② Valid until May 31, 2022(yellow green tickets)Extended until August 31, 2022*Applicable to shareholder gift certificates that expires on November 30, 2021 (sent in May 2021) and May 31, 2022 (sent in November 2021)Copyright © 2022 create restaurants holdings inc. All Rights Reserved.1３Ⅳ．Medium-term Management PlanCorporate group to provide “enrichment” to its stakeholders through food businessCopyright © 2022 create restaurants holdings inc. All Rights Reserved.１４１．Mid-to Long-term Growth Strategy (Overview)*Disclosed on July 14, 2021 (re-post)✔ Uncertainty surrounding the food service industry will continue for the time being due to the impact of ExternalEnvironmentCOVID-19① Rapidly changing needs for “location and format” due to changes in customer’s behavior② Withdrawal and closure of outlets from the food service industry and outflow of human resources also surfaced③ All companies must survive COVID-19 crisis and continue establishment of financial base to survive in the long termRecognition and Response① Consumption behavior will not fully return to the previous level due to changes in people’s lifestyles ② Increase in potential outlet opening capacity and M&A opportunities③ The financial base has been improved through the permanent subordinated loan in February 2021⇒ Implementing growth strategies ahead of competitors for renewed growthThree Pillars of Growth Strategy① Reviewing portfoliotoward post-COVID② Further development of the Group Federation Management③ Improving productivity by promoting DX and addressing the shortage of human resourcesMedium and Long-Term Management GoalsCorporate group to provide “enrichment” to its stakeholders through food businessCustomers / SocietyBusiness partnersEmployeesShareholdersProviding safe and secure outlets, food, and services that familiar to the communityBuilding long-term mutually beneficial relationshipsProvide stable employment and a diverse work stylesSustainable profit growthCopyright © 2022 create restaurants holdings inc. All Rights Reserved.１５２．Progress of the Medium-term Management Plan① Reviewing portfolio toward post-COVID✔Maximize the CR-Group’s strength of “ability to respond to change”✔Brand development in response to post-COVID demand: “daily,” “standard,” “community-based,” and “low-investment” formats・Brand changes in response to in-store and take-away demands⇒ Isomaru Suisan Shokudo: SFP (from March 2021)･ Brand changes to offer higher value-added services⇒ Omotenashi Toriyoshi: SFP (from March 2022)・Entry into the mobility business⇒ Introduction of food truck: GBC (from February 2022)・Introduction of mobile order system (from October 2021)・Test introduction of catering robots (from July 2021)・Promotion of digital marketing (from August 2021)・Brand change within the Group and use of the group’s FC (February 2022)・Strengthen contract business and SAPA business⇒ Integration of CR and SL (integrated to CR) (Sep. 2021)・Mutual use of menu to increase added value of in-store services (from September 2021)② Further development of the Group Federation Management✔ Temporarily strengthened centripetal force by holding company✔ “Group-wide management”・Revitalization of communication between group companies⇒ Standardization of various meetings (from July 2021)⇒ Group-wide employee allocation, including management personnel (from September 2021)・Integration of head office functions⇒ CMD, a joint venture (Purchasing Services) (established in September 2021)Creative Services (Accounting & Personnel Services) (Established in September 2020)⇒ Investment decisions by consolidating location information (unification of information, including roadside properties) (August 2021)⇒ Consolidation of store design and repair operations (March 2022)⇒ Streamlining the headquarters at each company (February 2022)③ Improving productivity by promoting DX and addressing the shortage of human resources✔Streamlining and sophistication of headquarters functions・Considering the introduction of workflow management, cost reimbursement system, and RPA (from August 2021)・Formulation of plan for paperless operations (January 2022)・Considering digitization of shareholder gift coupons (from December 2021)Efforts to strengthen sustainable management and corporate governance to support the above growth strategiesSelect 5 items of sustainability issues to realize a sustainable societyTransitioned to the Prime Market on April 4, 2022, and to achieve a higher level of governanceIncrease the number of outside directors, including women, and establish the Nomination and Compensation Committee to strengthen the system and functionsIntroduced a restriction stock compensation plan to promote further value sharing with shareholdersCopyright © 2022 create restaurants holdings inc. All Rights Reserved.１６３．Numerical TargetsFor FY2025, we target revenue of 140 billion yen, operating profit of 10.9 billion yen, and adjusted EBITDA of 28.4 billion yen.(Million yen)For FY2021, focus on quality rather than quantities, and aim to exceed adjusted EBITDA of 25.2 billion yen, the level before the COVID-19 disaster (FY2020)Copyright © 2022 create restaurants holdings inc. All Rights Reserved.1７Same-store salesVs. FY2020 (pre-COVID)New openingsRevenue78,324115,000130,000140,000Operating profit7,6339.7%7,3006.3%8,5006.5%10,9007.8%Profit before taxes7,1349.1%6,8005.9%7,9006.1%10,3007.4%Profit for the period6,6608.5%5,1004.4%5,6004.3%7,1005.1%Profit attributable toowners of parent5,9197.6%4,5003.9%5,0003.8%6,3004.5%Adjusted EBITDA27,08834.6%24,70021.5%25,70019.8%28,40020.3%FY2025(Plan)30 outlets78.5%86.0%30 outlets90.0%30 outletsFY2022(Results)52.7%13 outletsFY2023(Forecasts)FY2024(Plan)Ⅴ．ＡppendixCopyright © 2022 create restaurants holdings inc. All Rights Reserved.1８１.Opening and Closing of Outlets Opened: 13 outlets, Closed: 53 outlets, Brand change: 12 outlets⇒ Group total at the end of February 2022: 1,037 outlets・Major new outlet openings2 outlets in Kyoto Research Park (“Kagonoya”/”GOCONC”) and Lalaport Fujimi (cheese-centric restaurant “Ricotta”)Opened outlets through a business alliance from Zennoh, National Federation of Agricultural Cooperative Associations (“Minori Cafe” at Fukuoka Tenjin/”Minori Shokudo” Amu Plaza Kumamoto), Icchou at HanyuOverseas: Opened a “SARASHINA HORII” in New York, U.S.A. / a franchised “Kagonoya” in Thailand / a franchised “Momiji Chaya” in HongKong・Closing unprofitable outlets and closing due to contract expirationContinued to aggressively close unprofitable outlets in the buffet format, izakaya format, and other formats as in the previous fiscal yearContract outlets closed due to the expiration of contracts, etc.・Changed formats tailored to each location and customer needsIzakaya format changed to combination meal format and sushi format/brand change within the Group (“Ricotta” ⇒ “Azusa Coffee”)【【Opening/Closing in FY2022】【Breakdown of number of outlets by location (End-FY2022)】SA・PA2.6％Overseas5.3％Other0.5％Sports & Leisure8.6％Roadside15.2％Suburban malls22.2％Urban malls, etc.24.3％Station front/downtown21.3％*1: Number of outlets in Group including brand changes.*2: The number of overseas outlets includes LG&EW’s 2 franchise outlets in Jakarta and KR’s 11 franchise outlets in Thailand.*3: Total number of outlets include all outsourced outlets and franchise outlets as of the end of February 2022.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.１９NewCloseNewClose553128+115263227113215724379△ 1124125343+15501,0761353+1111,03712Group total *3Total no.at end ofFeb. 2022BrandChanges*1CRSFP CategoryTotal no.at end ofFeb. 2021Increase/DecreaseTransfer,etc.(adjustment）Brand changesin the groupSpecialty BrandOverseas *2２．Same-store Sales Transition*1: Calculated for outlets opened two years prior to the COVID-19 disaster (FY2020), including outlets that were temporary closed during the period.*2: Calculated for outlets opened one year prior to the COVID-19 disaster (FY2020), including outlets that were temporary closed during the period.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.March (preliminary)57.1％59.5％29.2％61.0％90.9％２０【Consolidated】Mar.Apr.MayQ1 TotalJun.Jul.Aug.Q2 TotalSep.Oct.Nov.Q3 TotalDec.Jun.Feb.Full-yearFY2022Actual Same-store Sales Yo2Y *151.9%47.6%35.5%45.1%42.2%51.0%38.3%44.4%40.5%65.5%74.1%49.4%74.9%58.1%47.1%52.7%FY2021Actual Same-store Sales YoY *257.4%11.7%14.1%27.8%47.4%55.0%52.1%39.4%61.1%72.6%69.1%48.4%53.3%38.2%47.5%48.5%【By category】Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.Jan.Feb.FY2022Actual Same-store Sales Yo2Y *155.5%50.4%37.4%47.8%42.5%55.5%42.6%47.2%44.8%69.5%71.0%51.8%75.4%61.8%53.9%54.8%FY2021Actual Same-store Sales YoY *245.9%11.7%8.9%22.9%44.7%52.7%53.8%36.9%60.3%72.9%69.9%46.7%60.6%45.2%57.2%48.6%FY2022Actual Same-store Sales Yo2Y *136.5%30.2%7.1%24.6%14.7%16.4%5.4%18.3%5.3%40.4%68.2%24.8%67.7%42.9%12.0%30.1%FY2021Actual Same-store Sales YoY *262.1%5.2%16.1%28.3%43.8%54.1%43.9%37.8%57.2%69.3%65.6%47.2%52.9%26.0%27.7%47.6%FY2022Actual Same-store Sales Yo2Y *159.4%52.9%45.6%52.8%50.9%62.5%45.3%52.6%47.3%74.3%75.7%56.7%73.4%62.0%52.1%58.4%FY2021Actual Same-store Sales YoY *263.2%19.9%22.1%35.9%57.3%62.2%58.6%47.3%66.7%78.8%76.3%55.9%56.3%44.6%53.3%54.8%FY2022Actual Same-store Sales Yo2Y *150.0%61.3%63.5%58.1%75.1%85.5%77.2%69.1%82.6%86.1%94.6%75.8%89.6%71.1%86.0%78.2%FY2021Actual Same-store Sales YoY *246.1%3.7%4.1%20.0%27.1%33.1%36.2%25.7%45.4%47.3%41.9%32.1%21.6%21.7%46.8%31.5%Full-yearCRSFPSpecialtyBrandOverseasQ1 TotalQ2 TotalQ3 Total３．Financial PositionMajor indicatorEnd of Feb. 2018End of Feb. 2019End of Feb. 2020End of Feb. 2021End of Feb. 2022IFRS 16 adoptedTotal assets（million yen）Total liabilities（million yen）Total capital（million yen）Shareholders’ equity ratio(Ratio of equity attributable to owners of the parent)Adjusted shareholders’ equity ratio71,40972,459150,317161,966133,60546,97148,462126,201138,702102,87424,43823,99624,11523,26430,7３025.3％22.6％10.8％10.5％17.8％25.3％22.6％17.6％16.6％28.0％Net D/E ratio0.98×1.07×5.11×4.79×2.65xAdjusted Net D/E ratio*20.98×1.07×1.92×1.76×0.７9x*1: Adjusted shareholders’ equity ratio: Ratio of shareholders’ equity ratio (ratio of equity attributable to owners of the parent) excluding the impact of adopting IFRS16.*2: Adjusted net D/E ratio: Multiple of net D/E ratio excluding the impact of IFRS16.Copyright © 2022 create restaurants holdings inc. All Rights Reserved.２１４.Sustainability Initiatives①create restaurants group aims to contribute to the realization of a sustainable society and increase the Group’s corporate value over the long term by providing “enrichment” to its stakeholders through food business.✔The Sustainability Committee was established to promote the group’s sustainability (Effective November 1, 2021)✔Selection of materiality (5 items)・Based on the Basic Sustainability Policy, we select “materiality” as important social issues that are of high importance to both our stakeholders and our business and should be prioritized.・Positioning corporate governance as the foundation to support all of them① Food safety② Co-existence and co-prosperity with the producing area③ Contributing to a carbon-free society④ Reduction of food loss⑤ Promoting the active participation of diverse human resourcesCopyright © 2022 create restaurants holdings inc. All Rights Reserved.２２4.Sustainability Initiatives②Examples of ActivitiesEnvironmentSocialGovernanceReduction of food lossInteraction with local communitiesTransition to the Prime Market•Introduced “TABETE” food sharing app at all 7 JEAN FRANCOIS outlets⇒ Working to reduce bread waste at outlets• Selling leftover breads nationwide through “rebake”, an online bakery shop• Mr. FARMER held a Farmer’s Market at the Komazawa Olympic Park Outlet• Vegetable cropping events, dog food making events in collaboration with neighborhood schools, etc.• Transitioned to the Prime Market on April 4, 2022⇒ Higher level of governance⇒ Enhancing corporate value over the medium-to-long termStrengthening systems and functions• Strengthen the Board of Directors function•Evaluation of the effectiveness of the Board of Directors• Support for “Inochi-no Music Day” (Hokkaido)• Conducting cleanup activities in the vicinity of outlets• Group governance structure• Disclosure system• Compliance system• Risk management systemCooperation between production areas and local production for local consumption• Promoting local production for local consumption⇒ Contributing to food safety and local communities⇒ Reducing transportation-related CO2 emissions• ・Exchange with production areas and farmers, such as holding “Day of Fields” eventsEnvironmental Conservation and Healthy Food・Offer vegan menus, plant-based cheese, and soybean meat・Expanding lineup of low-sugar bread and development of a bakery menu that utilizes seeded rice, bran, etc.Reduction of plastic waste• Use of plastic bags made from biomass• Curbing the use of plastic strawShokuiku (dietary education)• At “KAGONOYA”, a Japanese Cuisine and Shabu Shabu restaurant held a seminar on cooking for elementary school children and parents in Kyoto • Dietary education activities at local elementary schools (Head Office: Shinagawa Ward)⇒ Providing food education areas rooted in local communitiesPromoting diversity• Active recruitment of female employees and female managers• Promoting employment of foreigners and expanding the educational environment• Promoting a variety of working stylesStrengthening systems and functions(Following the resolution of the General Meeting of Shareholders to be held in late May)Increase the number of outside directors(To have outside directors at least 1-third)•⇒ From a 2-member structure to a 3-member structure•• Diversity of outside directors⇒ Appointment of women as outside directors•Establishment of Nominating and Compensation Committees⇒ Ratio of outside directors to over half of allCopyright © 2022 create restaurants holdings inc. All Rights Reserved.２３DisclaimerThe purpose of this material is to provide information regarding the financial results of the fiscal 2022 and is not intended to solicit investment in securities issued by the Company. Furthermore, although the contents in this material is prescribed based on reasonable assumptions of the Company at the time of publication, it does not warrant or guarantee the information’s accuracy or completeness and is subject to change without prior announcement.<>Investor Relations Department 8022@createrestaurants.comCopyright © 2022 create restaurants holdings inc. All Rights Reserved.2４