TORIDOLL : Summary of Consolidated Financial Results For the Three Months ended June 30, 2022 (Q1 FY2023) (IFRS)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

For the Three Months ended June 30, 2022 (Q1 FY2023)

(IFRS)

August 12, 2022

Company name: TORIDOLL Holdings Corporation

Stock exchange listing: Tokyo Stock Exchange

Stock code: 3397

URL: https://www.toridoll.com

Representative: Takaya Awata, President, Representative Director

Inquiries: Satoshi Yamaguchi, Executive officer CFO, Head of Finance Division and Finance Department

TEL: [phone]

Date of release of quarterly securities report: August 12, 2022

Starting date of dividend payments: -

Preparation of explanatory materials on quarterly financial results: Yes

Information meetings arranged related to quarterly financial results: No

(Amounts are rounded to the nearest million)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022

(1) Consolidated Operating Results

(% figures denote year-on-year change)

Revenue

Business profit

Operating profit

Profit before tax

Profit for the

period

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

of yen

of yen

of yen

of yen

of yen

Three months ended

43,816

17.1

2,846

44.9

4,691

(1.6)

5,352

19.2

3,788

27.9

June 30, 2022

Three months ended

37,420

37.1

1,964

―

4,769

―

4,491

―

2,961

―

June 30, 2021

Profit for the period

Comprehensive income

Earnings per share

Earnings per share

attributable to owners

attributable to owners

attributable to owners of

for the period

of the parent

of the parent (basic)

the parent (diluted)

Millions of

%

Millions of

%

Yen

Yen

yen

yen

Three months ended

3,622

21.5

10,242

203.2

40.62

40.34

June 30, 2022

Three months ended

2,980

―

3,377

―

33.39

33.16

June 30, 2021

(Reference) EBITDA (*)

Three months ended June 30, 2022: ¥ 8,672 million (increased 27.0% year-on-year basis)

Three months ended June 30, 2021: ¥ 6,828 million

Adjusted EBITDA

Three months ended June 30, 2022: ¥ 8,845 million (increased 23.5% year-on-year basis)

Three months ended June 30, 2021: ¥ 7,163 million

(*) The Company discloses EBITDA as comparative information.

EBITDA = Operating Profit + Other Operating Expenses - Other Operating Income + Depreciation + Amortization

Adjusted EBITDA = EBITDA + Impairment Loss + Extraordinary Expenses

(2) Consolidated Financial Position

			Equity	Equity	Equity per
			share
			attributable to	attributable to
	Total assets	Total equity	attributable to
	owners of	owners of
			owners of
			parent	parent ratio
			parent
	Millions of yen	Millions of yen	Millions of yen	%	Yen
As of June 30, 2022	246,703	79,680	70,690	28.7	813.45
As of March 31, 2022	240,840	69,978	62,024	25.8	714.46

2. Dividends

										Annual dividend per share
							Q1		Q2			Q3		Year-end		Total
								Yen		Yen				Yen		Yen			Yen
	Fiscal Year ended March 31, 2022				―		0.00				―		7.50			7.50
	Fiscal Year ended March 31, 2023				―
	Fiscal Year ending March 31, 2023						0.00				―		7.50			7.50
	(Forecast)
3. Consolidated Financial Result Forecasts for the Fiscal Year Ending March 31, 2023
														Percentages indicate year-on-year changes
		Revenue			Business profit	Operating profit	Profit before tax	Profit for the period
		Millions		%	Millions	%	Millions	%	Millions	%		Millions	%
		of yen			of yen	of yen	of yen			of yen
	1st half	86,500	12.9	3,200	(19.8)	2,700		(67.1)	1,800	(76.7)		1,100	(79.5)
	Fiscal year	177,000	15.4	6,200	14.2	4,000		(71.9)	2,700	(80.6)		1,800	(80.5)
		Profit for the period		Earnings per share
		attributable to owners of	attributable to owners of
		the parent					the parent (basic)
		Millions of yen		%				Yen
	1st half		900	(83.3)				8.14
	Fiscal year		1,300	(85.5)				10.52

• Notes

1. Changes in significant subsidiaries during the period
   (changes in specified subsidiaries resulting in the change in scope consolidation): Yes
   New: 1 company (Company name: Toridoll and Heyi Holding Limited)
   Excluded: －
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies as required by IFRS: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No

(3) Number of shares outstanding (ordinary shares)

1) Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022	87,752,352 shares
As of March 31, 2022	87,663,352 shares

2) Number of treasury shares at the end of the period

	As of June 30, 2022	851,372 shares
	As of March 31, 2022	851,372 shares
3) Average number of shares during the period
	Three months ended June 30, 2022	86,794,579 shares
	Three months ended June 30, 2021	86,356,651 shares

*Summary quarterly financial statements are not subject to quarterly review by a public certified accountant or an auditing firm.

• Appropriate use of financial results forecasts and other notes
  The forward-looking statements in this report are based upon various assumptions, including, without limitation, business forecasts, management's estimates, assumptions, and projections at the time of publication. These statements do not represent a promise or commitment by the Company to achieve these forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors.

1. Qualitative Information Concerning Financial Results for the First Quarter of FY2023

1. Explanation of Operating Results a. Consolidated Business Performance

During the first quarter of the consolidated fiscal year under review (April 1 to June 30, 2022,) the business environment surrounding the Group continued to be affected by the pandemic, though the situations vary by country and region. In Japan, we saw a significant increase in travel and tourism compared to the same quarter last year when the government declared a state of emergency followed by a quasi-state of emergency. At the same time, many countries have started relaxing rules, including lockdown measures. On the other hand, global uncertainty is reaching unprecedented levels as the prices of raw materials and energy costs continue to climb.

Given this environment, the Group has been taking measures to reach and engage with our target market while beefing up our takeaway offerings and product mix. Simultaneously, we started a rebranding process to expand our international reach to new markets as we move forward with our aggressive expansion into international markets, especially in Asia.

As a result, the revenue increased across all segments (Marugame Seimen, Overseas, and Other segments) by 17.1% year-on-year to ¥43,816 million.

The jump in revenue offset the increase in SG&A expenses. Business profit* soared by 44.9% year- on-year to ¥2,846 million, as Marugame Seimen and Other segments enjoyed a significant increase in profit.

Although operating profit** decreased slightly by 1.6% year-on-year to ¥4,691 million, quarterly profit attributable to owners of the parent increased by 21.5% year-on-year to ¥3,622 million. As a result, we achieved yet another strong quarter, with the highest Q1 operating profit and quarterly profit on record.

				(Millions of yen)
	Q1 FY2022	Q1 FY2023	Year-on-year change
	Amount	Percentage
Revenue	23,478	25,289	+1,811	+7.7%
Business profit*	9,407	12,695	+3,288	+35.0%
Operating profit**	4,536	5,832	+1,297	+28.6%
Profit for the period	37,420	43,816	+6,396	+17.1%
attributable to
owners of the parent

(Notes)

• Business profit is calculated by deducting the cost of goods sold and selling, general and administrative expenses from revenue.
• Operating profit is calculated by adding other operating income to and deducting impairment losses and other operating expenses from business profit
• • 1 -

1. Business Performance by Segment

										(Millions of yen)
Revenue		Q1 FY2022		Q1 FY2023		Year-on-year change
	Amount		Percentage
Marugame Seimen		23,478			25,289		+1,811			+7.7%
Overseas		9,407			12,695		+3,288			+35.0%
Other		4,536			5,832		+1,297			+28.6%
Total		37,420			43,816		+6,396			+17.1%
										(Millions of yen)
Business profit		Q1 FY2022	Q1 FY2023		Year-on-year change
	Amount		Percentage
Marugame Seimen		3,013			3,852			+840			+27.9%
Overseas		517			405			(112)			(21.6%)
Other		8			747			+740			－
Adjustments*		(1,574)			(2,159)			(586)			－
Total		1,964			2,846			+882			+44.9%
*Adjustments are corporate expenses that are not allocated to each segment in financial reporting.
											(Shop)
Number of locations	Marugame		Overseas	Other
Seimen			Total
Business category	Company-owned		Company	Franchise	Company	Franchise
	-owned	and etc.*	-owned	and etc.
At the end of March	858		222	404	256			8	1,746
Openings in FY2023	9		42	47	13			0	111
Closures in FY 2023	35		10	61	31			0	137
At the end of June 2022	832		254	390	238			8	1,720

(Notes)

* This includes stores other than company-owned stores, including stores operated by franchisees or joint ventures.

**From this quarter, 17 Toridoll and Heyi Holding Limited locations have been switched from "Franchise, etc." to "Company-owned" locations. This means 17 franchise locations were closed and opened as company-owned locations.

Marugame Seimen Segment

Marugame Seimen got off to a strong start in Q1 2023, buoyed by a significant increase in travel and tourism compared to the same quarter last year when strict measures were in place. In addition, our marketing strategy, integrating product development, branding, promotion, and marketing, worked incredibly well.

With the launch of our new theme, "うどんで、あなたを驚かせたい" (We are gonna Surprise you with our udon,) on June 15, we delivered a marketing campaign across all locations to promote the value of our udon, freshly made and cooked on the premises. With this campaign, we featured popular dishes as the stars of the lineup and emphasized our superb handmade quality by cooking meat after each order was placed.

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