Plenus : 〔Delayed〕Financial Results Presentation for Fiscal Year Ended February 28, 2021

Plenus Co., Ltd.

Financial Results Presentation for Fiscal Year Ended February 28, 2021

The material provided is not a disclosure document under the Financial Instruments and Exchange Act and no warranty is made as to the accuracy or safety of the information. Projections and other information presented are based on information available as of the announcement of financial results and contain elements of uncertainty.

Therefore, we ask that you refrain from making any investment decisions based solely on these materials.

April 16, 2021

1

Summary

• Under "living with COVID-19" circumstances, the Group continued to implement store management that considers the achievement of customer satisfaction as a food infrastructure company and the safety of customers and employees.
• FY02/21 was impacted significantly by COVID-19, resulting in a decrease in revenue, however operating profit and ordinary profit increased due to factors including an improvement in gross profits and an increase in net sales at existing Hotto Motto stores. Also, the recording of impairment loss, etc., resulted in loss attributable to owners of parent. Further, we have shifted our axis for growth from the restaurant market to the home meal replacement/to-go businesses, which are expected to grow.
• In FY02/22, as a "retail chain with functions as a manufacturer," we will build on key functions of integrated food factories, etc., and enhance the coordination among those functions, with the goal of maximizing the effects of our activities and profits.
  We will work to increase over-the-counter sales through the roll-out of campaigns using internally produced products and sales strategies with clear business-specific targets, as well as promotion of franchising. We plan to open 22 stores in total in Japan.
• Annual dividends for FY02/21 and FY02/22 will be 30 yen and 60 yen (planned), respectively. There are currently no plans to change the basic dividend policy.

2

1. Financial Results for FY02/21

1. Growth Strategies
2. Forecast for FY02/22
3. Distribution of Profits
4. Supplementary Materials

3

1. Financial Results for FY02/21

Revenue decreased and profit increased

Main factors are an improvement in gross profits and an increase in sales at existing Hotto Motto stores while impacted

by COVID-19.

Loss attributable to owners of parent resulted from the recording of impairment loss on non-current assets including

			stores as extraordinary losses.			(Millions of yen, %)
	Actual		YoY		vs. Forecast (disclosed on January 14, 2021)
	Amount	Composition	Amount	Composition	Change in	Change in %	Amount	Composition	Change in	Change in %
		ratio		ratio	amount			ratio	amount
Net sales	140,509	100.0	149,572	100.0	-9,062	-6.1	140,290	100.0	219	0.2
Gross profit	71,449	50.9	75,182	50.3	-3,733	-5.0	71,670	51.1	-220	-0.3
SG&A	70,547	50.2	74,834	50.0	-4,287	-5.7	70,870	50.5	-322	-0.5
Operating profit	902	0.6	348	0.2	554	159.0	800	0.6	102	12.9
Ordinary profit	2,037	1.5	729	0.5	1,308	179.4	1,330	0.9	707	53.2
Profit*	-2,545	-1.8	-2,934	-2.0	388	－	-1,760	-1.3	-785	－
*Profit attributable to owners of parent								4

1. Financial Results for FY02/21: YoY Comparison (1H/2H)

Operating profit and ordinary profit increased in 2H due to a recovery in net sales, an improvement in gross profits, and

improved efficiency in SG&A expenses.

Recording of impairment loss on non-current assets including stores as extraordinary losses during the 4Q period

resulted in loss.

(Millions of yen, %)

			1H					2H
	Actual	Previous year	Change	Actual	Previous year	Change
	Amount	Composition	Amount	Composition	Change in	Change in	Amount	Composition	Amount	Composition	Change in	Change in
	ratio	ratio	amount	%	ratio	ratio	amount	%
Net sales	68,169	100.0	75,756	100.0	-7,586	-10.0	72,339	100.0	73,816	100.0	-1,476	-2.0
Gross profit	34,499	50.6	37,979	50.1	-3,479	-9.2	36,950	51.1	37,203	50.4	-253	-0.7
SG&A	35,723	52.4	37,796	49.9	-2,073	-5.5	34,823	48.1	37,037	50.2	-2,213	-6.0
Operating
-1,224	-1.8	182	0.2	-1,406	－	2,126	2.9	166	0.2	1,960	1181.2
profit
Ordinary	-867	-1.3	341	0.5	-1,208	－	2,905	4.0	388	0.5	2,516	648.0
profit
Profit*	-1,696	-2.5	-873	-1.2	-822	－	-849	-1.2	-2,060	-2.8	1,211	－
												5
*Profit attributable to owners of parent

1. Financial Results for FY02/21: YoY Comparison (by Quarter)

Net sales had been on a recovery trend since 3Q, which led to the profitability of the business, together with improved gross profits and increased efficiency in SG&A expenses, however net sales and gross profit margin during 4Q were lower year-on-year due to the impact of COVID-19 on YAYOI and MK RESTAURANTS.

(Millions of yen, %)

		1Q			2Q			3Q			4Q
	Actual	Composition	Change in	Actual	Composition	Change in	Actual	Composition	Change in	Actual	Composition	Change in
	ratio	%	ratio	%	ratio	%	ratio	%
Net sales	33,423	100.0	-12.3	34,746	100.0	-7.6	36,849	100.0	-0.5	35,489	100.0	-3.5
Gross profit	16,712	50.0	-12.1	17,787	51.2	-6.2	19,064	51.7	2.1	17,886	50.4	-3.4
SG&A	17,818	53.3	-6.6	17,904	51.5	-4.3	17,653	47.9	-5.6	17,169	48.4	-6.4
Operating
-1,106	-3.3	―	-117	-0.3	―	1,410	3.8	―	716	2.0	296.0
profit
Ordinary	-959	-2.9	―	91	0.3	―	1,526	4.1	456.1	1,378	3.9	1,110.9
profit
Profit*	-929	-2.8	―	-766	-2.2	―	764	2.1	―	-1,613	-4.5	―
*Profit attributable to owners of parent

6

1. Financial Results for FY02/21: vs. Forecast (Disclosed on January 14, 2021 *for 2H only)

In 2H, although the gross profit margin failed to meet the target due to YAYOI and MK RESTAURANTS failing to meet their targets, operating profit and ordinary profit met the plan due to Hotto Motto achieving its net

sales target, and selling, general and administrative expenses' coming in below the plan.

(Millions of yen, %)

			2H
	Actual	Forecast	Change
	Amount	Composition	Amount	Composition	Change in	Change in
	ratio	ratio	amount	%
Net sales	72,339	100.0	72,120	100.0	219	0.3
Gross profit	36,950	51.1	37,170	51.5	-219	-0.6
SG&A	34,823	48.1	35,140	48.7	-316	-0.9
Operating	2,126	2.9	2,030	2.8	96	4.8
profit
Ordinary	2,905	4.0	2,190	3.0	715	32.6
profit
Profit*	-849	-1.2	-70	-0.1	-779	1,113.5
							7
*Profit attributable to owners of parent

1. Financial Results for FY02/21: By Segment

Hotto Motto remained strong, while sales in Overseas has been on a recovery trend. YAYOI and MK RESTAURANTS had been on a recovery trend toward 3Q, however were greatly affected by the further spread of COVID-19 in 4Q.

															(Millions of yen, %)
			Net sales				Segment profit			Segment profit margin
	1Q	2Q	3Q		4Q	Cumulative	1Q	2Q	3Q	4Q	Cumulative	1Q	2Q	3Q	4Q	Cumulative
		total	total	total
Consolidated	33,958	35,269	37,421		36,098	142,749	-1,106	-117	1,410	716	902	-3.3	-0.3	3.8	2.0	0.6
total
Hotto Motto	25,706	26,046	26,244		26,495	104,492	652	768	1,515	1,488	4,424	2.5	3.0	5.8	5.6	4.2
YAYOI	5,132	6,113	7,257		5,975	24,479	-1,296	-647	-90	-649	-2,683	-25.3	-10.6	-1.2	-10.9	-11.0
MK	416	592	654		489	2,153	-222	-42	-1	-120	-386	-53.3	-7.1	-0.2	-24.7	-17.9
RESTAURANTS
Overseas	721	565	801		820	2,909	-267	-221	-114	-85	-688	-37.1	-39.1	-14.3	-10.4	-23.7
Other	1,980	1,951	2,464		2,317	8,714	35	43	137	67	285	1.8	2.3	5.6	2.9	3.3
* Sales in Other include sales or transfers between the segments
* Excluding adjustments of segment profit or loss											8

1. Financial Results for FY02/21: Factors in Changes in Net Sales

Revenue declined by 9,062 million yen

Net sales decreased year-on-year due to a decrease in net sales of existing YAYOI stores and closures of 190 company-operated Hotto Motto stores in the previous year, despite an increase in net sales of existing Hotto Motto stores.

(Millions of yen)

149,572

				4,187
-4,686			3,004			140,509
-3,063
-1,297			-3,804
	-1,189

-1,155-1,060

FY02/20	Net sales of existing HM store		Y store	Overseas MK RESTAURANTS HM delivery rate Net sales of existing Factory subsidiaries	Other	FY02/21
	Hotto Motto		Overseas		Hotto Motto	Factory
FY02/20	transfer/store				FY02/21
subsidiaries		delivery rate	subsidiaries
	closure, etc.
	Net sales of		YAYOI		MK		Net sales of
existing YAYOI	transfer/store			existing Hotto	Other
RESTAURANTS	9
	stores	closure, etc.	Motto stores

1. Financial Results for FY02/21: Factors for Changes in Net Sales - YoY Trends of Net Sales at Existing Stores

Hotto Motto remained strong even after the lifting of a state of emergency.

YAYOI and MK RESTAURANTS were hit again by COVID-19, however have been on a recovering trend

since late February.

	Declaration of a		Continued in Tokyo
YoY change for net sales of existing stores	state of emergency		and 3 prefectures
in 11 prefectures
(Same-day-of-the-week comparison, %)

120.0		Effect of the previous			Hotto Motto campaigns
	year's Hotto Motto
			implemented
		campaigns
110.0
100.0
90.0				Effect of the previous
				year's YAYOI
80.0				campaigns
70.0
60.0
50.0
40.0
12/1 ~	12/8 ~ 12/15 ~ 12/22 ~ 12/29 ~	1/5 ~ 1/12 ~	1/19 ~	1/26 ~	2/2 ~	2/9 ~ 2/16 ~	2/23 ~	3/2 ~	3/9 ~	3/16 ~	3/23 ~
	Hotto Motto	YAYOI	MK RESTAURANTS					10

1. Financial Results for FY02/21: Factors for Changes in Net Sales - YoY Trends of Net Sales at Existing Stores (by Area)

Net sales at Hotto Motto's existing stores remained strong mainly in urban areas.

YAYOI had some recovery since September, but was hit again by COVID-19.

Hotto Motto	YAYOI
Since October, net sales remained strong mainly in urban	While there had been some recoveries observed after the
areas, although the effect of the campaigns with internally	campaigns and coupon distributions in September, it was
produced products that had started in the previous year have	affected by the spread of COVID-19 in and after December.
run their course.

(%)														(%)
115.0														110.0
														100.0
110.0
														90.0
105.0														80.0
														70.0
100.0
														60.0
95.0														50.0
2	3	4	5	6	7	8	9	10	11	12	1	2	3	2	3	4	5	6	7	8	9	10	11	12	1	2	3
					2020							2021							2020							2021
	Urban areas		Other than urban areas			Urban areas		Other than urban areas

* Stores in urban areas: Tokyo, Kanagawa, Chiba, Saitama, Aichi, and Osaka prefectures

11

(Millions of yen)

1. Financial Results for FY02/21: Trends in Gross Profit Margin

While gross profits decreased due to a decrease in net sales impacted by COVID-19, gross profit margin recorded a considerable improvement attributed chiefly to the promotion of in-house production and enhancement of production

systems. In addition, we transitioned to a structure that allows the Company to secure gross profits even with the

implementation of campaigns using internally produced products.

Investment in products

Expansion of internally produced products

Enhancement of production system

Closure of 190 company-

operated Hotto Motto stores

Decrease in net sales

18,672

due to COVID-19

51.7%

18,524

17,886

50.4%

50.4%

48.7%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Full year

02/19

02/20

FY02/21 Actual

FY02/22

Forecast

Gross profits				Gross profit margin	12

1. Financial Results for FY02/21: YoY Comparison of Operating Profit

Operating profit was up 554 million yen

Although greatly affected by COVID-19 in YAYOI and Overseas, operating profit exceeded the previous year thanks to Hotto Motto and an improvement in gross profits.

(Millions of yen)

1,469902

348

-164

-1,388

1,247

813

-1,043

-730

791

-258-181

YAYOI store

Advertising/prom

Improvement of

Factory

FY02/20

closure/transfer,

Other

otion expenses

gross profits

subsidiaries

etc.

Net sales of

Percentage of YAYOI

Overseas

Net sales of

Hotto Motto store

existing YAYOI

staff salary/utility

existing Hotto

closure/transfer,

FY02/21

subsidiaries

stores

expenses

Motto stores

etc.

13

1. Financial Results for FY02/21: Operating Profit vs. Forecast (Disclosed on January 14, 2021)

Operating profit exceeded by 102 million yen.

Despite the failure by MK RESTAURANTS and YAYOI to meet sales targets, the result was better than the revised forecast announced in January thanks to Hotto Motto meeting the sales target.

(Millions of yen)

1405902

800	65

-56-27 -19

Revised forecast	Sales of	Unused SG&A
announced in	existing YAYOI		Other
expenses
January 2021	stores
		Transfer/store	Sales of
Subsidiaries		existing Hotto	End of FY02/21
	closure, etc.
		Motto stores	14

1. Financial Results for FY02/21: Hotto Motto Business

Performance by segment	Trends in net sales of existing stores (%)

	Net sales	104,492	Millions of yen	110.0
		(-1,442)						103.6
				105.0
	Operating	4,424	Millions of yen
	profit
							102.8
		(+4,122)		100.0
 Factors for changes in net sales			95.0
(+)	Increase in net sales of existing stores (+3.6%)	1Q: 102.4	2Q: 104.1	3Q: 103.3	4Q: 104.3
(-)	Closure of 190 company-operated stores in the previous
	year
 Factors for changes in operating profit			90.0

(+) Increase in net sales of existing stores	Mar. Apr. May Jun. Jul. Aug.	Sep. Oct. Nov. Dec. Jan. Feb.	Cumulative
Closure of 190 company-operated stores in the previous									total
		Net sales					No. of customers
year, and an improvement of gross profits

Status of stores

	FY02/21-end	FY02/20-end	Change
No. of stores	2,493	2,527	-34
Opening	5	7	-2
Closing	39	228	-189
Renovation/
Relocation	31	63	-32
Company-operated
stores	634	711	-77
Percentage of company-
operated stores (%)	25.4	28.1	-2.7

Topics

• Held "Thank You Fair" that offered popular products at special prices in February.
  Sold different products by store. (Fried chicken, cutlet rice bowl, and hamburger steak)
• Encouraged repeat visits to stores by selling products targeting youth who are light users, such as "Hakata Mentaimayo Karaage Bento" and "Tsunamayo Shiokonbu Nori Bento."
• Expanded stores offering delivery services, with online store sales doubling from a year earlier.
• Introduced a QR code payment option at all stores in October, in

addition to Hotto Motto Official Application and payment through
electronic money, to respond to diverse customer needs.	15

1. Financial Results for FY02/21: YAYOI Business

Performance by segment	Trends in net sales of existing stores (%)

Net sales	24,479	Millions of yen
	(-5,994)
Operating	-2,683	Millions of yen
profit
	(-3,580)

• Factors for changes in net sales

(-) Decrease in net sales of existing stores (-22.1%)

• Factors for changes in operating profit
  (-) Decrease in net sales of existing stores Deterioration of percentages of staff salary/utility expenses resulting from a decline in net sales

Status of stores

	FY02/21-end	FY02/20-end	Change
No. of stores	372	382	-10
Opening	9	7	+2
Closing	19	2	+17
Renovation/
Relocation	13	8	+5
Company-operated
stores	263	233	+30
Percentage of company-
operated stores (%)	70.7	61.0	+9.7

110.0
100.0
90.0				77.9
80.0
70.0	1Q:64.2	2Q:79.1	3Q:95.0	76.9
60.0				4Q:75.8
50.0

Mar. Apr. May Jun. Jul. Aug.	Sep. Oct. Nov. Dec. Jan. Feb. Cumulative
						total
		Net sales				No. of customers

Topics

 Promoted the creation of an environment where customers feel safe eating. In addition to the installation of partitions to prevent droplets, resumed "Refilling Station" by introducing the "Rice Refilling Robot" at all stores.

 Held a campaign of offering "Chicken Nanban (fried chicken with tartar sauce) Teishoku" and "Miso Simmered Pork Cutlet Teishoku" for 490 yen in September. Led to a recovery in the number of customers through the offering at a special price, which included the largest ever discount, and subsequent measures.

 Focused on encouraging repeat visits by offering products for middle and light users, such as "Kuroge Wagyu Beef Sukiyaki Teishoku" and "Yayoi Gozen," in addition to the product measures for heavy users.

 Stores that offer delivery and to-go services expanded steadily, contributing to a recovery in sales.

16

1. Financial Results for FY02/21: MK RESTAURANTS Business

Performance by segment	Trends in net sales of existing stores (%)

Net sales

2,153

Millions of yen

110.0

(-1,154)

100.0

83.2

Operating

90.0

-386

Millions of yen

profit

80.0

(-53)

70.0

1Q:76.2

81.6

 Factors for changes in net sales

60.0

2Q: 89.3

3Q: 97.3

(-)

Decrease in net sales of existing stores (-16.8%)

Store closures in the previous and current fiscal years

50.0

4Q: 69.1

 Factors for changes in operating profit

40.0

(+)

Effects of store closures in the previous/current years

Cumulative

(-)

Decrease in net sales of existing stores, effects of store

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct. Nov. Dec. Jan. Feb.

total

closures in the current fiscal year

Net sales

No. of customers

Status of stores

	FY02/21-end	FY02/20-end	Change
No. of stores	26	32	-6
Opening	1	2	-1
Closing	7	6	+1
Renovation/
Relocation	0	8	-8
Company-operated
stores	26	32	-6
Percentage of company-	100.0	100.0	0.0
operated stores (%)

Topics

• Transformed into a structure that can generate profit by closing unprofitable stores (6 in FY02/20, and 7 in FY02/21) and reducing head office costs through streamlining of the operation.
• While net sales of existing stores had been picking up due to a recovery in family demand, recovery slowed due to the further spread of COVID-19. There was an effect from the GoTo campaign observed since October.
• Worked to increase the frequency of store visits by enhancing our product capabilities through the use of seasonal limited edition soups such as
  "Motsunabe Soy Sauce Soup" and special ingredients, and the launch of "Five-Color Soup Dumplings," as well as holding events targeting families.

Also, offering to-go menu items, such as selling "Motsunabe (offal hot pot)

Set," at limited stores.	17

1. Financial Results for FY02/21: Overseas Business

Performance by segment		Trends in sales by quarter (in millions of Yen)

		Net sales			1,200	992	1,037	994	1,022					60.0%
		2,909	Millions of yen						801	820
					1,000
			(-1,135)		800						721	565		40.0%
		Operating		Millions of yen
		-688	600
		profit
			(-120)		400										20.0%
					200
 Factors for changes in net sales			0										0.0%
	(+)	Recovery in Taiwan's sales
				1Q	2Q		3Q	4Q	1Q	2Q	3Q	4Q
	(-)	Temporary closure and shorter business hours due to	-200
		government requests					-5.7%							-10.4%
		(Especially in USA and Australia)			-400	-17.3%	02/20		-13.5%			02/21	-20.0%
	Factors for changes in operating profit				-20.0%	-37.1%
			-600						-14.3%
	(+)	Taiwan's recovery to profitability, shrinkage in Australia's loss		Net sales		Profit margin			-39.1%
	(-)	Temporary closure and shorter business hours due to	-800					-40.0%
		government requests

Status of stores

	FY02/21-end	FY02/20-end	Change
Number of Hotto Motto
stores	14	14	0
Opening	1	4	-3
Closing	1	8	-7
Number of YAYOI stores	244	245	-1
Opening	8	23	-15
Closing	9	2	+7

Topics

• Status of operation in each country
• • Normal operation: Taiwan, South Korea, China
  • Delivery/to-goonly: USA
  • Limits on no. of tables: Other countries
• Focused on restoring profitability of existing stores for the time being, with store opening to be suspended until there's an improvement in the impact of COVID-19.
• Sought to establish a business model that specializes in to- go/delivery services by leveraging knowhow in the take-out bento

box business with a view to improving profitability.	18

1. Financial Results for FY02/21: Other (Subsidiary; MSF)

Performance by segment	Trends in sales by quarter (in millions of Yen)

Net sales	6,474	Millions of yen
	(+664)
Operating	285	Millions of yen
profit
	(+186)

• Factors for changes in net sales
• 1. Expansion of internally produced products, and marketing activities to existing/new business partners
• Factors for changes in operating profit
• 1. Increase in profits caused by sales increases

(-) Amortization of goodwill

Company outline

OEM of seasonings and processed foods Business Development of seasonings for use in the

Group's stores

 Hirokawa Factory (Fukuoka Prefecture) and products manufactured Factories

Small packets, PET bottles, retort pouch processed food, etc.

 Amagi Factory (Fukuoka Prefecture)

 Sugito Factory (Saitama Prefecture)

Seasonings for commercial use, etc.

In addition, cooperating with partner factories across Japan

						2,464	2,317
	1,697		1,980	1,951
	1,489			5.6%
1,328	1,296	5.3%
					2.2%		2.9%
				1.8%
0.7%			0.6%
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
	-0.7%
	02/20		Net sales	Profit margin02/21

* Net sales include net sales or transfers between the segments

Topics

 The main business of the subsidiary, MSF, is OEM of seasonings and processed foods.

It also engages in the development of seasonings and other ingredients used at the Group's stores.

 An increase in production has led to improved productivity. New products for Hotto Motto have been robust; plastic bottle products exceeded the plan.

 Going forward, it aims to maximize profits by increasing production

efficiency through improving purchase methods and switching to constant two-shift operation in each production line.

19

1. Financial Results for FY02/21: Summary of Balance Sheet

Total assets decreased by 5,790 million yen.

				Millions of yen
	FY02/21	FY02/20	Change	Outline
	Fiscal year-end	Fiscal year-end
Current assets	21,603	21,128	474
Cash and deposits	10,519	10,076	442
Non-current assets	58,785	65,050	-6,265	Decrease in property, plant and equipment due to impairment loss,
				etc. (-)
Total assets	80,389	86,179	-5,790
Current liabilities	16,511	19,090	-2,578	Decrease in deposits received from franchised stores (-) and
				decrease in accrued consumption taxes (-)
Non-current	12,011	11,598	413
liabilities
Total liabilities	28,522	30,688	-2,165
Total net assets	51,867	55,491	-3,624
Equity capital	51,001	54,727	-3,725	Loss (-), dividend payment (-)
Total liabilities and	80,389	86,179	-5,790
net assets
Shareholders' equity	63.4	63.5	0.0
ratio (%)
ROE(%)	-4.8	-5.1	0.3		20

1. Financial Results for FY02/21: Summary of Cash Flows

Cash and cash equivalents were up 671 million yen.

			CF from operating activities: +4,726	CF from investing	CF from financing	(Millions of yen)
			activities: -2,729	activities: -1,317
							Free CF: +1,996
2,900	851
5,955
		-1,016
9,820							-1,224	-861			536						10,491
														-3,266		-1,148	-169	-7
-1,878

Balance at

Loss from system

Increase

Purchase of non-

Cash dividends

beginning of

Depreciation

(decrease) in

Other

rebuilding

current assets

paid

FY02/21 period

deposits received

Loss before

Accrued

C/F from operating C/F from investing

C/F from financing Balance at end of

income taxes

Impairment loss consumption taxes

activities, other

activities, other

activities, other

FY02/21 period

21

1. Financial Results for FY02/21
2. Growth Strategies
3. Forecast for FY02/22
4. Distribution of Profits
5. Supplementary Materials

22

2. Growth Strategies: Looking Back on the Previous Year

In response to changes in the business environment caused by COVID-19, the Company shifted its growth axis to the to-go business and, at the same time, worked to transform its business structure into one that is more profitable as a retail chain with functions as a manufacturer, which resulted in an increase in profit during the second half of the previous year.

Economic trends

Consumption activities in Japan not only remain weak due to the spread of COVID-19, but also the outlook remains uncertain with another rise in COVID-19 cases.

Restaurant business

The business environment remains severe with requests to refrain from going out and shorten business hours as a result of another declaration of a state of emergency issued in 11 prefectures in January 2021.

Home meal replacement market

Remained robust with an increase in demand for to-go and delivery services due to consumers' restraint to go out.

Change in the strategy

Changed the axis of growth strategy from the restaurant market to the to-go/delivery market, which is expected to grow.

Change in the system

• Review of the management system
• Organizational changes
  Change in the mechanisms
• Promoted operational reforms through BPR
• Considered rebuilding systems that can make better use of information

23

2. Growth Strategies: Summary

As a "retail chain with functions as a manufacturer,"

we will build on key functions of integrated food factories, etc., and enhance the coordination among

those key functions, with the goal of maximizing the effects of the initiatives and revenue.

Growth strategy of Plenus Group

Maximize Group-wide revenue through enhancement of take-out business and

transformation of business and organizational structures

Ideal state	Strategic indicators

Maximize

Group-wide

revenue

Expansion of business scale through promotion

of store opening

Promotion of store opening and franchising through improvement of store profitability

Increase in sales through promotion of sales

and streamlining of operation

Improvement of productivity through streamlining of

SCM* and organizational activities

Improvement of production efficiency at in-house and affiliated factories through in-house production

* SCM: Supply chain management

Increase in sales of existing stores

Increase in the number of stores

(store opening, franchising)

Achievement of profitability in

Overseas Business

Achievement of profitability in MK

RESTAURANTS Business

Reduction of production cost through improvement in operating rate of factories

Reduction of purchases of external

products

Reduction of SG&A

24

2. Growth Strategies, 1) Improving Efficiency of Supply Chain Management

Efforts will be made to reduce costs with the most efficient and lean low-cost operation to address changes in sales plans and demand by linking activity information of each function in the supply chain with IT and creating a framework to centrally manage and use such information.

Aspiration Further cost reduction through enhancement of supply chain management

Sales plan

Marketing

Product

development

Planning of sales

promotion

Procurement	Production	Logistics	Store
operation

Optimization of procurement, production, inventory, and store staff assignment based on sales plans >>>

• Adjustment of store staff assignment, inventory, production, and procurement plans that respond to changes in demand

Well-planned		Implementation of		Leveling and		IT support based on
purchase		highly accurate		optimization of logistics		demand forecasts
negotiations		planned production		and inventories		and sales plans
Reduction in		Improvement in		Control of delivery		Optimization of
	production efficiency
purchase prices and				order volumes and
	and reduction in		costs
inventories				store operation
	inventories

Customer

needs (Sales results)

25

2. Growth Strategies, 1) Improving Efficiency of Supply Chain Management - the Group's Production System Going Forward

With the goal of creating a new Group production system, in the area of in-house production, efforts will be made to expand internally produced products and promote the development of a system to increase production capacity.

In the area of external purchases, the focus will be placed on improving the operating rate by enhancing collaboration with

		manufacturers.
	Up to FY02/20	FY02/21 to FY02/22		FY02/23 and onward
	Creation of profit	Enhancement of system through		Maximization of profits
	generation system	selection and concentration
	Completion of investment	Creation of a two-shift (day and night) operation system at
	in factories	the Group's factories
In-house
production	Expansion of internally produced products
(Goal)				Creation of a new
Improvement of	Campaigns using internally produced products
operating rate				Group production
	Partial shift to in-		system
External
house production
purchases
	Aggregation of products	Enhancement of collaboration	Improvement in operating rate
(Goal)	with manufacturers		of manufacturers' factories
Reduction of
purchases				26

2. Growth Strategies, 1) Improving Efficiency of Supply Chain Management - Promoting In-house Production, and Reducing Product Costs

Continuing from the previous year, we reduced product costs by promoting in-house production and

strengthening partnerships with manufacturers.

We aim to further improve the Group's gross profit margin.

Promotion of in-house production

• Improvement of operating rate by introducing products suited to the line characteristics of the
  Group's factories

Changes in product standards and processes

• Improvement of productivity in the supply chain by visualizing the cost structure of products

Realignment of business partners

• Realization of effective procurement by consolidating and changing suppliers and reviewing market shares

Cost reduction of raw materials

• Cost reduction through the visualization of cost structure at the time of procurement of raw materials and the review of contract details

Improvement in operating rate of own factories

• Expansion of production volume through promotion of the two-shift operation and development of

new products	27

2. Growth Strategies, 1) Improving Efficiency in Supply Chain Management - Optimizing Logistics

We aim to build an optimal supply chain for the Group and business partners in their entirety in light of the balance of quality, cost, and delivery time.

Improvement of loading ratio

• Addressing logistics costs by improving the loading ratio of delivery vehicles

Reorganization of distribution bases

• Control of storage costs by reorganizing distribution bases to make the most of the productivity of integrated food factories

Development of delivery operation

• Addressing labor shortage through reduced-workload and labor-saving operation

28

2. Growth Strategies, 2) Increasing Net Sales of Existing Stores (Hotto Motto) - Looking Back on the Previous Year and Measures for the Year under Review

Shifted to contactless sales style, impacted by COVID-19 in the previous year.

We worked to increase sales at existing stores by continuing and strengthening the previous year's

measures during the year under review.

FY02/21

FY02/22

YoY change for net	103.6%
sales of existing stores

Positive factors

• Implementation of campaigns using internally produced products
• Sales strategies with clear targets
• Increased preorders via online ordering
• Expansion of delivery services
• Promotion of cashless payments

Negative factors

• Decline in custom order sales at events such as sports events

YoY change for net

sales of existing stores 102.2% (Plan)

• Increased added value through the use of products produced at the Group's factories
• Products and campaign measures with clear targets
• Increase in the ratio of online ordering through enhancement of operation
• Increase in delivery sales through campaign measures and product appeal
• Capturing new custom order demand

29

2. Growth Strategies, 2) Increasing Net Sales of Existing Stores (Hotto Motto) - Marketing Strategies

We aim to increase net sales at existing stores by responding to a wide range of needs, such as launching campaigns utilizing internally produced products and implementing sales strategies with clear targets.

Product development

Launched products such as "Double-Cheese Nori Bento" and "Garitaru Karaage Bento," which are

variations of popular products, targeting younger consumers who are light users.

Campaign roll-out

Carried out quiz campaigns using SNS and the Internet, and ran commercials featuring a popular comedian duo, EXIT

Double-Cheese	- Garlic & tartar sauce -
Nori Bento	Garitaru Karaage Bento

A campaign where prizes including 1 million yen are
given to lottery winners from those who have	30
answered the quiz correctly

2. Growth strategies, 2) Increasing Net Sales of Existing Stores (Hotto Motto) - Capturing New Custom Order Demands

To make up for the decline in custom order sales at events, etc., that have been impacted by COVID- 19, we launched new products and promoted preorders through the Internet to capture dining needs of families.

New family-sized menu	Sales of products for celebration and seasonal events and	31
promotion of preorders using the Internet

2. Growth Strategies, 2) Increasing Net Sales of Existing Stores (YAYOI) - Looking Back the Previous Year and Measures for the Year under Review

Significantly impacted by COVID-19 in the previous year. In the year under review, we worked to maximize sales and profits by strengthening our response to changes in eating and drinking styles, underpinned by the development and growth of human resources.

FY02/21
YoY change for net	77.9%
sales of existing stores

Positive factors

• Promoted store development for the safety and security of customers and employees through the introduction of the Refilling Robot, etc.
• Expanded demand by expanding to-go menus and carrying out campaigns
• Increased demand due to an increase in the number of stores with delivery service

Negative factors

• Decline in eat-in sales

FY02/22

YoY change for net

sales of existing stores 112.7% (Plan)

• Improved quality of products offered and basic customer service capabilities, and ensured safety and security
• Human resources development, including allocation of sufficient staff members and their training to make them work-ready
• Strengthened branding by appealing "devotion to rice"
• Strengthened to-go/delivery services through menu updates and container redesigns
• Enhanced breakfast by expanding the number of menu items and renewal

32

2. Growth Strategies, 2) Increasing Net Sales at Existing Stores (YAYOI) - Strengthening Branding

To convey the appeal of "set meals with particular attention to rice," which is the strength of YAYOI, to

continuously strengthen branding.

	Used leaflets to show our particular attention to rice
Continued to broadcast ads featuring actor	33
Shota Sometani

2. Growth Strategies, 2) Increasing Net Sales at Existing Stores (YAYOI) - Marketing Strategies

To capture new demand through to-go/delivery enhancement measures and by strengthening

breakfast menus.

Enhancement of to-go/delivery services

To capture sales by implementing to-go/delivery enhancement measures, such as catering for side dish- only use and running campaigns.

Enhancement of breakfast

Doubled the breakfast menu items from 3 to 6 types. Also, set items at reasonable prices from 350 yen to 570 yen. At the same time, expanded the stores offering breakfast to increase sales.

Mini Sukiyaki Breakfast

You can now order "side	100 yen discount campaign for 4	6 breakfast options to choose	Shirasu Oroshi Breakfast
(with boiled young sardines
dishes" only	bento box products	from	34
and grated daikon radish)

2. Growth Strategies, 3) Increasing Number of Stores - Promoting Store Opening/Franchising

We worked to strengthen our existing store structure in the year under review, in preparation for the time when we can

promote store openings both in Japan and overseas.

In Japan, we promoted store opening centered around Hotto Motto and franchising with the goal of achieving further

growth in the robust to-go market.

FY02/21

FY02/22

Store opening in Japan 15 stores

Positive factors

• An increase in Hotto Motto's FC-transferred stores led to a decrease in the percentage of company-operated stores
• Hotto Motto grill had 31 stores at the end of the year, which will serve as the core of our future growth strategy

Negative factors

• Closed unprofitable stores in Japan (a decrease of 65 stores in total)
• Although YAYOI took measures for franchisees, the percentage of the company-operated stores increased due to an increase in the number of stores that have returned to RC.

Store opening in Japan	22 stores
(Plan)

• Strengthened our existing store structure in preparation for the time when we can promote store openings
• An increase in the number of FC-transferred stores as a result of enhancements of RC stores
• Identified new franchisees by increasing the number of persons who are accepted as staff members
• Continued measures to support franchisees, including measures to support store growth
• Promotion of unit franchise-B contracts

35

2. Growth Strategies, 3) Increasing Number of Stores - Progress at Hotto Motto grill

Hotto Motto grill is a new Hotto Motto brand that provides food that responds to a wide range of needs while making

the most of the appeal of "Hotto Motto."

Going forward, we aim to attract more young people in their 20's to 30's and open stores in urban areas and densely

populated areas.

Features	Topics

Taking advantage of the appeal of "Hotto Motto," this brand focuses on improving the deliciousness and quality of its products by cooking them in an oven, and aims to improve the satisfaction of a wide range of customers by providing bento boxes in the 3 categories of "grill," "casual," and "Hotto Motto menu."

It offers a menu targeting young people in their 20's and 30's, in addition to the Hotto Motto menu. Also, it opened stores in urban areas centering on the Tokyo metropolitan area, Osaka and Aichi, and densely populated areas. The percentage of using delivery services is high as well.

Store design		Smart design focused on functionality and
	comfort, with services offered smoothly with
		ticket-vending machines
Commitment to		The outside is nicely browned with the inside
	being fluffy and juicy. Automatic cooking
oven cooking
	improves productivity and reduces workloads.
Menu		Included on its menu are Hotto Motto's
	popular items, "Grill" cooked in an oven, and

"Casual," such as rice omelet

Menu

Store development

• Number of stores at end of FY02/21 period
  31 stores
• Store openings in FY02/22
  March: Sugamo 1-chome store (Tokyo)

May: in Kanagawa Prefecture (planned)
A total of eight other stores are
scheduled to be opened	36

2. Growth Strategies, 4) MK RESTAURANTS - Looking Back on the Previous Year and Measures for the Year under Review

Impacted by COVID-19 while working to improve profitability by closing unprofitable stores and improving

operational efficiency in the previous year.

We sought to improve the profitability of its business through sales recovery measures in the year under

review.

FY02/21

FY02/22

YoY change for net	83.2%
sales of existing stores

Positive factors

• Improvement of profitability by closing unprofitable stores and improving operational efficiency
• Recovery in sales due to the GoTo campaign
• Digital marketing using SNS, etc.
• Expansion of to-go/delivery services

Negative factors

• Decline in eat-in sales

YoY change for net

sales of existing stores 115.8% (Plan)

• An increase in operating rates through effective use of reservation systems
• Digital marketing using SNS, etc.
• Campaign measures focused on dinner
• Strengthening of original menu items to differentiate ourselves from other companies
• Expansion of to-go/delivery services and their increased recognition

37

2. Growth Strategies, 4) MK RESTAURANTS - Enhancing Product Capabilities

MK RESTAURANTS seeks to differentiate itself from the competition by "SHABU-SHABU & Authentic Dim Sum

Restaurant," which is unique in Japan.

It aims to boost sales by promoting repeat visits through the introduction of limited time menu items and

expanding to-go/delivery services.

Introduced limited time hotpot soups and special ingredients	Renewed to-go menu	38
continuously

2. Growth Strategies, 5) Overseas - Looking Back the Previous Year and Measures for the Year under Review

Impacted by COVID-19 while working to improve profitability by closing unprofitable stores and improving

operational efficiency in the previous year.

In the year under review, we worked to improve profitability by taking sales recovery measures tailored to the

market, and establish a new model for the expansion of store opening.

FY02/21

FY02/22

Segment profit

-688 million yen

Positive factors

• The impact of COVID-19 in Taiwan has been minimal
• Improvement in profitability in Taiwan and Australia
• Expansion of to-go/delivery services

Negative factors

• USA and Australia were greatly affected by COVID-19

Aimed to improve business profitability

• Segment income (loss) forecast is undisclosed
• • Implementation of sales recovery measures tailored to the market
  • Development of structures specializing in to- go/delivery services
  • Established a business model that aims for store opening in the next fiscal year

39

1. Financial Results for FY02/21
2. Growth Strategies
3. Forecast for FY02/22
4. Distribution of Profits
5. Supplementary Materials

40

3. Forecast for FY02/22: Assumptions for the Forecast

	Stores in Japan
				Hotto Motto			YAYOI				MK RESTAURANTS
				Full-year	1H		2H	Full-year	1H			2H	Full-year	1H	2H
YoY change for		%	102.2	102.8		101.7	112.7	121.5		103.9	115.8	107.7	121.7
existing stores
Opening		stores	20	4		16	2	1		1	0	0	0
Closing	stores	-20	-7		-13	0	0		0	0	0	0
Renovation, etc.	stores	17	9		8	12	2	10	0	0	0
No. of stores	stores	2,493	2,490		2,493	374	373	374	26	26	26
No. of company-	stores	573	603		573	255	263	255	26	26	26
operated stores
Percentage of		23.0	24.2		23.0	68.2	70.5	68.2	100.0	100.0	100.0
company-operated	%
stores

	Overseas stores
				FY02/21-	Opening	Closing	FY02/22-
				end	end
Hotto Motto total		14			2	2		14
YAYOI total		244			22	1		265
Overseas Group stores total	258			24	3		279

41

3. Forecast for FY02/22: Assumptions for the Forecast - Quarterly Trends in Net Sales at Existing Stores

Hotto Motto to remain strong, with a recovery in the business performance of YAYOI and MK

RESTAURANTS forecasted

(Units: %)

142.1

129.3

102.8102.8

101.9	113.6	117.5
	112.2
101.6
		98.0	106.8
		90.3

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY02/20

FY02/21 Forecast

FY02/20

FY02/21 Forecast

FY02/20

FY02/21 Forecast

Hotto Motto

YAYOI

MK RESTAURANTS

42

3. Forecast for FY02/22: YoY Comparison

(Millions of yen, %)

	Forecast		YoY
	Amount	Composition	Amount	Composition	Change in	Change in
	ratio	ratio	amount	%
Net sales	145,230	100.0	140,509	100.0	4,720	103.4
Gross profit	75,130	51.7	71,449	50.9	3,680	105.2
SG&A	69,730	48.0	70,547	50.2	-817	98.8
Operating profit	5,400	3.7	902	0.6	4,497	598.1
	6,040	4.2
Ordinary profit	2,037	1.5	4,002	296.4
	2,510	1.7
Profit*	-2,545	-1.8	5,055	-98.6

*Profit attributable to owners of parent

43

3. Forecast for FY02/22: YoY Comparison (1H/2H)

(Millions of yen, %)

			1H					2H
	Forecast		YoY		Forecast		YoY
	Amount	Composition	Amount	Composition	Change in	Change in %	Amount	Composition	Amount	Composition	Change in	Change in %
		ratio		ratio	amount			ratio		ratio	amount
Net sales	72,610	100.0	68,169	100.0	4,440	106.5	72,620	100.0	72,339	100.0	280	100.4
Gross profit	37,510	51.7					37,620	51.8
34,499	50.6	3,010	108.7	36,950	51.1	669	101.8
SG&A	35,220	48.5	35,723	52.4	-503	98.6	34,510	47.5	34,823	48.1	-313	99.1
Operating	2,290	3.2					3,110	4.3
-1,224	-1.8	3,514	―	2,126	2.9	983	146.2
profit
Ordinary
2,780	3.8	-867	-1.3	3,647	―	3,260	4.5	2,905	4.0	354	112.2
profit
Profit*	1,540	2.1	-1,696	-2.5	3,236	―	970	1.3	-849	-1.2	1,819	―
*Profit attributable to owners of parent

44

3. Forecast for FY02/22: Factors for Increasing Operating Profit

Profit forecasted to increase by 4,497 million yen.

This will be due to improved gross profits and higher net sales at Hotto Motto's existing stores, as

well as a recovery in the performance of YAYOI, MK RESTAURANTS and Overseas businesses.

(Millions of yen)

									1,987		5,400
										-28
								854
							725
						641
						413
902				205	260
	-246	-171	-142
FY02/21	Advertising	Overseas	MK	HM variable costs Net sales of HM	Y variable costs	Net sales of Y	Improvement of	Other	FY02/22 Plan
Logistics costs	Initial costs

FY02/21	Logistics costs	Overseas	Percentage of Hotto	Percentage of YAYOI	Improvement of	Forecast for
	Motto staff	staff salary/utility
subsidiaries		gross profits		FY02/21
			salary/utility expenses	expenses
	Advertising				MK		Net sales of		Net sales of
	Initial costs			existing Hotto	existing YAYOI	Other
	expenses	RESTAURANTS	45
			Motto stores		stores

1. Financial Results for FY02/21
2. Growth Strategies
3. Forecast for FY02/22
4. Distribution of Profits
5. Supplementary Materials

46

4. Distribution of Profits: Dividend Policy

Annual dividends for FY02/21 will be 30 yen with 60 yen planned for FY02/22.

There are no plans to change the basic dividend policy or the shareholder benefit system at this time.

Basic dividend policy

The Company will pay a dividend that is the higher of either an annual dividend of 60 yen or a dividend payout ratio of 50%.

* Dividend payout ratio = Annual dividend per share/Consolidated profit per share

Dividend amount

			Dividends (yen)		Earnings per	Consolidated
					dividend
	Interim		Fiscal year-end	Full-year	share (yen)
		payout ratio
FY02/20		30	30	60	-76.59	―
FY02/21		0	30	30	-66.39	―
FY02/22 (Planned)		30	30	60	65.45	91.7%

*We decided to pay no interim dividends for FY02/21 in order to secure stable funds to achieve a recovery in earnings and

improvement of corporate value under the business environment greatly affected by the spread of COVID-19.

47

1. Financial Results for FY02/21
2. Growth Strategies
3. Forecast for FY02/22
4. Distribution of Profits
5. Supplementary Materials

48

5. Supplementary Materials: Trends in Consolidated P/L

 Net sales, gross profit											(Millions of yen, %)
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21	FY02/22
		Full year	Composition	Full year	Composition	Full year	Composition	Full year	Composition	Full year	Composition	Full-year Composition
		results	ratio	results	ratio	results	ratio	results	ratio	results	ratio	forecast	ratio
Net sales	140,972	100.0	145,709	100.0	153,914	100.0	149,572	100.0	140,509	100.0	145,230	100.0
Net sales of franchise segment	60,416	42.9	60,823	41.7	64,459	41.9	64,985	43.4	63,195	45.0	67,800	46.7
Net sales of company-operated store	69,525	49.3	67,767	46.5	71,550	46.5	65,692	43.9	58,089	41.3	58,060	40.0
segment
•	Hotto Motto	40,526	28.7	39,087	26.8	40,988	26.6	36,707	24.5	35,061	25.0
•	YAYOI	25,286	17.9	23,843	16.4	23,909	15.5	22,206	14.8	18,349	13.1
•	MK RESTAURANTS	3,399	2.4	3,448	2.4	3,440	2.2	3,308	2.2	2,153	1.5
•	Overseas	312	0.2	1,387	1.0	3,212	2.1	3,469	2.3	2,524	1.8
Other net sales	174	0.1	5,595	3.8	5,661	3.7	6,000	4.0	6,645	4.7	6,310	4.3
Income from franchise fees, etc.	10,856	7.7	11,522	7.9	12,243	8.0	12,894	8.6	12,579	9.0	13,060	9.0
Cost of sales	63,269	44.9	67,743	46.5	76,501	49.7	74,389	49.7	69,059	49.1	70,100	48.2
Gross profit	77,702	55.1	77,965	53.5	77,413	50.3	75,182	50.3	71,449	50.9	75,130	51.8

49

5. Supplementary Materials: Trends in Consolidated P/L

	SG&A, operating profit											(Millions of yen, %)
			FY02/17	FY02/18	FY02/19	FY02/20	FY02/21	FY02/22
			Full year	Composition	Full year	Composition	Full year	Composition	Full year	Composition	Full year	Composition	Full-year Composition
			results	ratio	results	ratio	results	ratio	results	ratio	results	ratio	forecast	ratio
Selling, general and administrative	70,509	50.0	72,985	50.1	77,914	50.6	74,834	50.0	70,547	50.2	69,730	48.1
expenses
Total selling expenses	11,551	8.2	11,158	7.7	12,523	8.1	11,820	7.9	13,181	9.4	13,440	9.3
	•	Advertising expenses	2,668	1.9	2,338	1.6	3,001	1.9	1,738	1.2	1,799	1.3
	•	Promotion expenses	2,667	1.9	2,622	1.8	3,292	2.1	3,652	2.4	4,570	3.3
	•	Distribution expenses	6,141	4.4	6,097	4.2	6,032	3.9	6,202	4.1	6,721	4.8
	•	Provision of allowance for doubtful	46	0.0	82	0.1	180	0.1	210	0.1	78	0.1
		accounts
Total personnel expenses	31,521	22.4	31,712	21.8	34,088	22.1	32,575	21.8	29,910	21.3	28,870	19.9
	•	Remuneration for directors (and	204	0.1	280	0.2	276	0.2	253	0.2	232	0.2
		other officers)
	•	Salaries and bonuses	27,432	19.5	27,332	18.8	29,561	19.2	28,198	18.9	25,788	18.4
	•	Provision for bonuses	345	0.2	311	0.2	344	0.2	355	0.2	350	0.2
Total equipment expenses	15,542	11.0	16,709	11.5	17,739	11.5	18,517	12.4	16,154	11.5	15,870	10.9
	•	Rent	9,079	6.4	9,563	6.6	10,248	6.7	10,280	6.9	9,543	6.8
	•	Depreciation	5,059	3.6	5,372	3.7	5,622	3.7	5,938	4.0	4,832	3.4
Total other expenses	11,893	8.4	13,404	9.2	13,562	8.8	11,920	8.0	11,301	8.0	11,550	8.0
	•	Utilities expenses	3,544	2.5	3,613	2.5	3,701	2.4	3,254	2.2	2,832	2.0
	•	Commission expenses	2,663	1.9	2,898	2.0	3,229	2.1	2,932	2.0	3,419	2.4
	•	Supplies expenses	1,958	1.4	2,271	1.6	2,030	1.3	1,506	1.0	1,392	1.0
Operating profit	7,193	5.1	4,979	3.4	-501	-0.3	348	0.2	902	0.6	5,400	3.750

5. Supplementary Materials: Trends in Consolidated P/L

	Ordinary profit, profit											(Millions of yen, %)
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21	FY02/22
		Full year	Composition	Full year	Composition	Full year	Composition	Full year	Composition	Full year	Composition	Full-year	Composition
		results	ratio	results	ratio	results	ratio	results	ratio	results	ratio	forecast	ratio
	Non-operating income	552	0.4	497	0.3	792	0.5	868	0.6	1,379	1.0	680	0.5
	Non-operating expenses	123	0.1	215	0.1	147	0.1	487	0.3	244	0.2	40	0.0
Ordinary profit	7,622	5.4	5,261	3.6	143	0.1	729	0.5	2,037	1.5	6,040	4.2
	Extraordinary income	173	0.1	10	0.0	36	0.0	179	0.1	5	0.0	0	0.0
	Extraordinary losses	930	0.7	981	0.7	3,062	2.0	3,844	2.6	3,921	2.8	1,400	1.0
Profit before income taxes	6,865	4.9	4,291	2.9	-2,882	-1.9	-2,935	-2.0	-1,878	-1.3	4,640	3.2
	Income taxes	2,871	2.0	1,883	1.3	46	0.0	-60	-0.0	551	0.4	2,130	1.5
Profit	3,994	2.8	2,408	1.7	-2,929	-1.9	-2,874	-1.9	-2,430	-1.7	2,510	1.7
Profit attributable to non-controlling	-43	-0.0	56	0.0	-2	-0.0	60	0.0	115	0.1	0	0.0
interests
Profit attributable to owners of parent	4,037	2.9	2,351	1.6	-2,926	-1.9	-2,934	-2.0	-2,545	-1.8	2,510	1.7

Note: Income from franchise fees, etc., includes lease income, etc., based on the unit franchise system and management consignment system (partner chain system) in addition to royalty income from franchisees.

51

5. Supplementary Materials: Over-the-Counter Net Sales, Capital Expenditure, and Depreciation

	Over-the-counter net sales					(Millions of yen)
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21	FY02/22
		Full year	Full year	Full year	Full year	Full year	Full-year
		results	results	results	results	results	forecast
Hotto Motto (Japan)	148,277	145,595	150,900	145,838	145,960	149,400
YAYOI (Japan)	32,093	33,583	36,304	36,268	28,085	30,000
MK RESTAURANTS (Japan)	3,401	3,450	3,442	3,304	2,153	2,100
Overseas	312	1,387	3,212	3,469	2,524	2,500

Note: Over-the-counter net sales of consolidated subsidiaries are listed in Overseas above. Plenus, Inc. (USA), PLENUS AusT PTY. LTD. (Australia), and Plenus Taiwan Co., Ltd. (Taiwan) have been included in the scope of consolidation since FY02/17, FY02/18, and FY02/19, respectively.

	Capital investment and depreciation				(Millions of yen)
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21	FY02/22
		Full year	Full year	Full year	Full year	Full year	Full-year
		results	results	results	results	results	forecast
Consolidated capital investment	7,800	13,864	11,780	6,825	3,692	1,869
Total depreciation	5,243	5,572	6,250	7,244	5,955	5,325
Production cost	182	197	625	1,304	1,122	804
Selling and administrative	5,059	5,372	5,622	5,938	4,832	4,520
expenses
Non-operating expenses	1	2	1	1	0	0	52

5. Supplementary Materials: Trends in Consolidated B/S

	Trends in consolidated balance sheet				(Millions of yen)
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21
		Fiscal year-end	Fiscal year-end	Fiscal year-end	Fiscal year-end	Fiscal year-end	Change
Current assets	34,062	25,256	17,859	21,128	21,603	474
	Cash and deposits	23,607	14,372	7,447	10,076	10,519	442
	Notes and accounts receivable	3,037	2,786	2,377	2,648	3,013	364
	- trade
	Merchandise and finished	4,217	5,263	5,368	5,950	5,391	-558
	goods
Non-current assets	58,673	66,243	69,527	65,050	58,785	-6,265
	Property, plant and	40,933	48,289	50,179	45,574	40,464	-5,109
	equipment
	Intangible assets	2,215	2,389	2,921	3,031	1,928	-1,102
	Investments and other assets	15,524	15,563	16,426	16,445	16,392	-52
Total assets	92,736	91,499	87,387	86,179	80,389	-5,790
Current liabilities	18,069	16,751	16,562	19,090	16,511	-2,578
	Notes and accounts payable -	6,306	6,097	6,229	6,108	5,402	-706
	trade
Non-current liabilities	8,514	8,649	10,201	11,598	12,011	413
Total liabilities	26,584	25,401	26,763	30,688	28,522	-2,165
Total net assets	66,151	66,098	60,623	55,491	51,867	-3,624
Total liabilities and net assets	92,736	91,499	87,387	86,179	80,389	-5,790	53

5. Supplementary Materials: Trends in Number of Stores

	Number of stores					(Unit: Stores)
		FY02/17	FY02/18	FY02/19	FY02/20	FY02/21	FY02/21
		Fiscal year-end	Fiscal year-end	Fiscal year-end	Fiscal year-end	Fiscal year-end	Forecast
Trends in no. of stores	3,022	3,107	3,161	2,941	2,891	2,893
in Japan
	Hotto Motto	2,661	2,723	2,748	2,527	2,493	2,493
	YAYOI	329	351	377	382	372	374
	MK RESTAURANTS	32	33	36	32	26	26
Trends in no. of	192	212	242	259	258	279
overseas stores
	Overseas Hotto Motto	13	15	18	14	14	14
	total
	China	4	2	2	3	2	2
	South Korea	8	12	15	10	11	12
	Australia	1	1	1	―	―	―
	Singapore	―	―	―	1	1	0
	Overseas YAYOI total	179	197	224	245	244	265
	Thailand	157	167	187	198	194	209
	Singapore	7	8	8	10	9	11
	Australia	3	4	4	6	6	6
	Taiwan	9	12	18	21	21	20
	USA	2	3	3	3	4	4
	Philippines	1	2	3	5	6	8
	Malaysia	-	1	1	2	4	7	54

5. Supplementary Materials: Hotto Motto

Hotto Motto			FY02/20-	Mar.	Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Cumulative
		end	total
All stores	YoY change for net	%	―	94.0	96.5	100.6	97.8	99.7	97.4	101.0	100.8	103.1	104.3	104.5	101.9	100.1
sales
Existing stores	YoY change for net	%	―	99.3	101.9	106.5	103.9	105.7	102.7	106.0	100.0	103.9	105.2	105.3	102.4	103.6
sales
New stores	Total	stores	―	0	0	0	2	0	0	0	1	1	0	1	0	5
	RC	stores	―	0	0	0	1	0	0	0	1	1	0	1	0	4
	PC	stores	―	0	0	0	0	0	0	0	0	0	0	0	0	0
	FC	stores	―	0	0	0	1	0	0	0	0	0	0	0	0	1
Closing	Total	stores	―	-21	-7	-1	-1	-2	-1	0	-2	-1	-2	0	-1	-39
	RC	stores	―	-19	0	-1	0	0	0	0	-1	0	0	0	0	-21
	PC	stores	―	-1	0	0	0	0	0	0	0	-1	0	0	0	-2
	FC	stores	―	-1	-7	0	-1	-2	-1	0	-1	0	-2	0	-1	-16
Transfer	RC	stores	―	9	12	8	0	-4	-8	-7	-17	-7	-11	-3	-32	-60
	PC	stores	―	-5	-2	-3	-3	-5	0	-3	-6	-4	-7	-6	-1	-45
	FC	stores	―	-4	-10	-5	3	9	8	10	23	11	18	9	33	105
Renovation/	RC	stores	―	2	2	3	5	4	0	1	0	1	0	0	0	18
Relocation
	PC	stores	―	0	0	0	0	0	0	0	0	1	0	0	0	1
	FC	stores	―	3	0	0	2	2	1	1	0	0	1	1	1	12
No. of stores at	Total	stores	2,527	2,506	2,499	2,498	2,499	2,497	2,496	2,496	2,495	2,495	2,493	2,494	2,493	－
month-end
	RC	stores	711	701	713	720	721	717	709	702	685	679	668	666	634	－
	PC	stores	187	181	179	176	173	168	168	165	159	154	147	141	140	－
	FC	stores	1,629	1,624	1,607	1,602	1,605	1,612	1,619	1,629	1,651	1,662	1,678	1,687	1,719	－

55

5. Supplementary Materials: YAYOI

YAYOI			FY02/20-	Mar.	Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Cumulative
		end	total
All stores	YoY change for net	%	―	81.9	51.9	54.3	75.6	78.7	81.2	96.2	94.2	90.3	83.3	70.2	71.1	77.4
sales
Existing stores	YoY change for net	%	―	83.2	52.8	55.0	76.0	79.3	81.7	97.9	95.5	91.9	84.3	70.4	70.7	77.9
sales
New stores	Total	stores	―	1	1	0	2	3	1	1	0	0	0	0	0	9
	RC	stores	―	1	1	0	1	3	1	1	0	0	0	0	0	8
	PC	stores	―	0	0	0	0	0	0	0	0	0	0	0	0	0
	FC	stores	―	0	0	0	1	0	0	0	0	0	0	0	0	1
Closing	Total	stores	―	-1	-1	0	0	-1	-13	-2	0	0	0	0	-1	-19
	RC	stores	―	-1	-1	0	0	-1	-13	-2	0	0	0	0	0	-18
	PC	stores	―	0	0	0	0	0	0	0	0	0	0	0	0	0
	FC	stores	―	0	0	0	0	0	0	0	0	0	0	0	-1	-1
Transfer	RC	stores	―	2	0	0	7	11	6	2	2	4	4	0	2	40
	PC	stores	―	1	0	0	0	0	0	0	0	-1	-2	0	0	-2
	FC	stores	―	-3	0	0	-7	-11	-6	-2	-2	-3	-2	0	-2	-38
Renovation/	RC	stores	―	9	3	0	0	0	0	0	1	0	0	0	0	13
Relocation
	PC	stores	―	0	0	0	0	0	0	0	0	0	0	0	0	0
	FC	stores	―	0	0	0	0	0	0	0	0	0	0	0	0	0
No. of stores at	Total	stores	382	382	382	382	384	386	374	373	373	373	373	373	372	－
month-end
	RC	stores	233	235	235	235	243	256	250	251	253	257	261	261	263	－
	PC	stores	30	31	31	31	31	31	31	31	31	30	28	28	28	－
	FC	stores	119	116	116	116	110	99	93	91	89	86	84	84	81	－

56

5. Supplemental Materials: MK RESTAURANTS and Overseas

MK RESTAURANTS		FY02/20-	Mar.	Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Cumulative
	end	total
All stores	YoY change for net	%	―	80.6	23.9	31.7	76.4	77.1	67.6	79.1	83.2	84.6	69.6	52.3	52.2	65.1
sales
Existing stores	YoY change for net	%	―	85.7	42.8	54.0	91.7	99.7	81.4	91.3	97.5	102.2	84.5	60.6	58.8	83.2
sales
New stores	Total	stores	―	1	0	0	0	0	0	0	0	0	0	0	0	1
Closing	Total	stores	―	0	-7	0	0	0	0	0	0	0	0	0	0	-7
Renovation/	Total	stores	―	0	0	0	0	0	0	0	0	0	0	0	0	0
Relocation
No. of stores at	Total	stores	32	33	26	26	26	26	26	26	26	26	26	26	26	－
month-end
			FY02/20-	Mar.	Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.
			end
Total no. of Group stores in Japan stores	2,941	2,921	2,907	2,906	2,909	2,909	2,896	2,895	2,894	2,894	2,892	2,893	2,891
Overseas			FY02/20-	Mar.	Apr.	May	Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.
		end
Hotto Motto	Total		14	13	13	13	13	13	13	13	13	13	14	14	14
	China		3	2	2	2	2	2	2	2	2	2	2	2	2
	South Korea		10	10	10	10	10	10	10	10	10	10	11	11	11
	Singapore		1	1	1	1	1	1	1	1	1	1	1	1	1
YAYOI	Total		245	244	244	244	244	245	243	243	244	243	244	244	244
	Thailand		198	198	199	199	199	199	197	196	196	195	194	194	194
	Singapore		10	9	9	9	9	9	9	10	10	9	9	9	9
	Australia		6	6	6	6	6	6	6	6	6	6	6	6	6
	Taiwan		21	21	20	20	20	21	21	21	21	21	21	21	21
	USA		3	3	3	3	3	3	3	3	3	4	4	4	4
	Philippines		5	5	5	5	5	5	5	5	5	5	6	6	6
	Malaysia		2	2	2	2	2	2	2	2	3	3	4	4	4
Total no. of overseas Group stores		259	257	257	257	257	258	256	256	257	256	258	258	258	57

58