Interim Report of the 61Th Accounting Period January 1, 2011 - June 30, 2011 家族亭 P1-2

家族亭表 1- 表 4

SINGAPORE THAILAND JAPAN INDIA CHINA

Kazokutei Co., LTD Wakita-Fujimura-Midosuji Bldg. 2F 4-2-14, Fushimimachi, Chuo-ku, Osaka Japan TEL +81-6-6227-6030 http://www.kazokutei.co.jp/en

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Kazokutei Interim Report of the 61th Accounting period January 1, 2011 - June 30, 2011 家族亭 P1-2

TOPICS Kazokutei makes everyone in the world smile. Topics for the First Half of 2011 Rapid recovery of sales from the earthquake From Osaka, Kazokutei is bringing to nearly 100% as against the same period last year. delicious noodles to Asia and the world.

Kazokutei's secret recipe for soba and TOPIC 1 March,April,and July,2011 TOPIC 2 August,2011 (Scheduled) Tokutoku's handmade udon We opened two shops in Thailand, one shop Our new category pub Shun-no-mai, in Singapore, and one shop in China the Show Kitchen, was opened bring smiles to everyone. Two shops were opened in Bangkok, Thailand. A shop in The first shop based on the master franchise Singapore and another in Shanghai, China were also opened. agreement concluded with Somboon Corporation, The total number of overseas shops now stands at 11. a conglomerate in Thailand, was opened.

TOPIC 3 August,2011 (Scheduled) TOPIC 4 July,2011 Kagonoya with Japanese cuisine Franchise shops based on a large-scale and Shabu-shabu was opened franchisee agreement were opened

New category shop serving a full menu of Japanese cuisines Franchise restaurants with Atsu Corporation and RYUSEKI Udon and soba noodle industry is very traditional. Kazokutei also commemorates featuring Shabu-Shabu was opened by a joint venture with CORPORATION, large-scale corporate franchisees KPN Corporation, a conglomerate in Thailand, (The original plan was to open 10 shops) were opened. the 64th anniversary this year. However, we are not an old-fashioned company. and with Kinrei Corporation. We commenced management reform 8 years ago focusing on young managers. We always wish to be youthful Investor Relations Annual Schedule (January 1, 2011 - December 31, 2011) and challenging like a venture company. The First Half of 2011（Actual） The Second Half of 2011（Actual and scheduled）

Announcement of financial results [Feb.9] Announcement of financial results for February Briefing session on the financial results (Tokyo) [Feb.14] August the second quarter of 2011[Aug.11] Nikkei IR Fair 2011 STOCK WORLD [Aug.26 27] Kazokutei keeps moving Franchise show 2011 [Mar.8～10] ～ March Ordinary general meeting of shareholders [Mar.29] Announcement of financial results Announcement of financial results November May for the third quarter of 2011 forward as "a venture company for the first quarter of 2011 [May.10] We agreed on the takeover bid by H2O Retailing Corporation on August 11, 2011. On the same day, we concluded a basic agreement on the stock acquisition of Nakano Foods Co., Ltd. and officially started to examine the purchase. Since we are not in emerging in a traditional industry". a position to disclose information on these two activities we are currently working on, they are not included in this report. We would refer you to the website for official press releases on this matter. 1 2

8月

11月家族亭 P3-4

TOP MESSAGE Interview Inui-san vs. Otei-chan

Otei-chan : Long time no see you, Mr. Inui. People all over Japan are register a good profit during such a term as this. That is why we President & CEO Mitsuhiro Inui reducing power consumption this summer. I feel as if it were much announced a plan to streamline operations and to lay the foundations PROFILE warmer than last summer. I keep eating ice cream with our air for a profitable corporate structure as soon as we announced the first Born and raised Kanagawa Ken Born April 19, 1953 March 1977 graduated from Department of Liberal Arts, College conditioner turned off. How about you, Mr. Inui? quarterly settlement of accounts right after the disaster. of Arts and Sciences, the University of Tokyo President Inui : President Inui: I have made a point of exercising every Otei-chan : Oh, yes. Our shop manager told me about the streamlining April 1977 entered Nissan Motor Co.,Ltd. June 1983 (as a company order of Nissan Motor) graduated from the Graduate School of Management at Northwestern University day in this heat. My muscles have been firming up a bit, haven’t they? strategy! (Illinois, USA) (obtained MBA) January 1989 entered KPMG Consulting, Inc. (Laughter) May 1992 entered Booz Allen Hamilton (Japan) Inc. June 1998 entered as Corporate Officer of Suruga Seiki Co.,Ltd. Otei-chan : I will come straight to the point, The interim statement of April 2002 entered Kappa Create Co.,Ltd 1. Closing unprofitable shops April 2003 dispatched to Kazokutei Co., Ltd. as General Manager account for the first half of FY2011 was announced on August 11, of Business Operation Reform 2. Negotiating to reduce rent for shops June 2003 became Director of Kazokutei Co., Ltd. 2011. What was it like, Mr. Inui? May 2005 became Representative Director & President of Tokutoku Co., Ltd. 3. Reduction of personnel expenses for the headquarters (left office in March 2006) President Inui : O.K. For the first half of this year, revenues were January 2006 took office as Representative Director & President of Kazokutei Co., Ltd 4. Reduction of other expenses for the headquarters decreased by 6.8% from the previous year to 4.075 billion Yen with 25 million Yen of ordinary loss. It was principally due to a substantial Mobile website for Kazokutei is now available. decline in sales, affected by the earthquake of March 11. Consumers President Inui : The plan to streamline operations includes four Otei-chan and President Inui Talk restrained from eating out even if for a temporary period of time, strategies. Firstly, we moved up the closing of 13 unprofitable direct causing a sharp drop in sale. Fortunately none of our shops were shops. Secondly, we reviewed and negotiated to reduce our rents, Shun-no-mai, the Show Kitchen destroyed or damaged by the disaster, and they all went back to especially those fixed during the bubble economy period. Thirdly, we was finally opened normal operations around the beginning of April. You know how we targeted to reduce 3% of headquarter personnel expenses in had to reduce our operating hours when the shopping centers, etc. in comparison with the previous year. Lastly, we aimed to reduce 5% of ※Please note that certain in Thailand. mobile phones may not get which our shops are located decided to shorten their opening hours. It other general expenses off the previous year’s record. We can expect on financial access to the site. certainly damaged our sales and profits even for a temporary period of to improve our profitability by 80 million Yen for this year, or on an In the Udon and Soba (wheat and buckwheat) noodle shop markets, where concentration results has been progressing, time. However, look at July and August. Both directly-owned shops annual basis an improvement of 190 million Yen. Kazokutei gained its momentum to expand franchise chain networks through the acquisition of “Toku Toku.” and franchise chain restaurants have been rapidly recovering, posting Otei-chan : We will be overcoming the effects of the earthquake by As Kazokutei also has as many as 10 types of shop formats for directly managed shops and franchise chain operations, nearly 100% in sales compared to the same period of last year. So, we implementing the streamlining plan and building up profitable there is virtually no restriction in site selection, etc. for opening new shops. We have been expanding our overseas are already on the right track. structures in our organization. I know there will be a lot of work to do, activities positively mainly in franchise chain. We opened a shop in February and another Otei-chan : We were all worried about the impact of the earthquake. but I will join the effort in whatever I can do. in April successively in Bang kok, ailand. At the shop where I’m working, customers didn’t show up in a usually President Inui : Incidentally, in the areas not affected by the e new opening of a shop in July this year Image character of Kazokutei Otei-chan busy time. The shop had to close earlier for a while after the earthquake, we have been fully implementing our originally set up PROFILE in Singapore and in Shanghai, China. earthquake. I am pleased to hear that customers and sales have come plans. First of all, we have been developing franchise shops. Kazokutei Place of Birth Osaka Shun-no-mai, the Show Kitchen, a globally Date of Birth A secret back. is promoting to develop new franchisees, specifically focused on As of 2009 actively promoting its PR activities every day new category restaurant, is to be nally opened in August. as Image Character of Kazokutei. President Inui : That’s right. However, companies are expected to large-scale corporate franchisees by using a new package.

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TOP MESSAGE

Interview Inui-san vs. Otei-chan

While we concluded 7 agreements last year, we made 2 franchise 13 unprofitable shops in accordance with the streamlining strategy. As the park. Shun-no-mai may be called the first amusement park in the Otei-chan : That sounds great!, Mr. Inui. Kazokutei is wonderful! agreements with large-scale corporate franchisees in the first half of of the end of June, the number of directly-owned shops was 102 in food industry. Of course, the quality and taste of food are based on How I wish to dance in the second shop of Shun-no-mai. this year. In addition, we opened new shops including Kazokutei in total. long-standing Kazokutei tradition in Japan, and are adapted as President Inui : Furthermore, Kagonoya will be opened in Thailand in Port Island in Kobe and the first Toku Toku in Okinawa, which happens Otei-chan : Have you already closed as many as 13 unprofitable necessary to local palate. The menu served in Shun-no-mai all come August, 2011 as a joint venture with KPN Corporation, a conglomerate to be our debut in Okinawa. shops? That was a quick move. Eliminating unprofitable shops is a from those offered by Kazokutei group for Japanese customers, for in Thailand, and with Kinrei Corporation. The shop called good policy to produce a profit, isn’t it? Mr. Inui. example, Sushi and Sashimi from Kyosai, grilled chicken over a Osaka-kushiya was also opened in Little Tokyo in Thailand together President Inui : There are a lot more I want to explain. Let me talk charcoal fire from Sampoan, and Tempura from Kazokutei and Toku with JPRM Corporation as a business partner. In other countries, we ▶ Opened on July 1, 2011 about the current situation about the overseas shops we have been Toku. Shun-no-mai also serves Teppanyaki Grilling. opened one shop in China and two shops in Singapore. All together, we “Kazokutei Port Island” Atsu Corporation strategically promoting. In Thailand, the country of beautiful smiles, we Otei-chan : Wow! Fantastic! I want to try everything in the shop! (I have 11 overseas shops and the number of franchise shops including 6 ▶ Opened on July 15, 2011 opened one shop in March and another one in April, totaling seven all wish I could right now!) tie-up shops is 120 in total, as of the end of June. The number of our “Toku Toku Makiminato shop” together. . Also, as we made a press release the other day, we will open President Inui : Because Kazokutei has long been developing more shops including directly-owned shops is 222 in total. Ryuseki Corporation a Show Kitchen called Shun-no-mai, a new category pub in August. than 10 categories of food services without confining itself to Otei-chan : It is reassuring to see Kazokutei developing steadily both Otei-chan : A Show Kitchen? Is it like a restaurant where dancers and buckwheat and wheat noodle markets, we have been able to establish in Japan and abroad. I am very proud of myself working for Kazokutei. singers are performing on the stage? Shun-no-mai. I believe Shun-no-mai will fascinate people who love President Inui : We have been steadily expanding our operations and Overview of new franchisee package Japanese cuisine not only in Thailand but also all over the world. . After implementing our strategies from the mid-term perspectives. One of ▶ The target market is large-sized franchisee owners of existing major making this first shop successful, we will keep expanding Shun-no-mai our major strategies is to maintain and to reinforce our direct business franchise chain businesses including ones other than food service who We opened two shops in Thailand, into all over the world. in buckwheat and wheat noodle as well as franchise business are uneasy or dissatisfied with the role of their current franchisers. one shop in Singapore, and one shop in China foundation based on the franchise management platform. Another is to ▶ The package is based on a win-win business model. (The common goal of increasing sales at shops is shared.) In Thailand, the Show Kitchen“Shun-no-mai” ■ New category pub, the Show Kitchen “Shun-no-mai” carry out M&A strategies positively to enter into other food services ▶ Franchisee contracts guarantee franchise business expansion is to be opened in August industry and surrounding business areas. Thirdly, we are also by operating multiple shops in a certain region. considering entering into home-meal replacement market mainly in “Regional management concept”(5～6 shops) buckwheat and wheat noodles. We have been expanding horizontally ▶ Our support for shop management such as supervisors’ continuous consulting services and system such as loaning active President Inui : You have good imagination! ha, ha. Shun-no-mai is a into markets other than buckwheat and wheat noodle based on the shop managers, etc. Japanese restaurant in which you can enjoy all the popular Japanese franchise management platform so far. This time, we aim to expand by dishes ranging from Charcoal Grilling, Teppanyaki Grilling, Tempura, adding home-meal replacement products as a vertical axis. As the Sushi, and Sashimi. We call it a Show Kitchen, because customers can impact of the recent earthquake and the aging of the society made Otei-chan : Have we got a shop in Okinawa? I didn’t know that! I wish watch how chefs are cooking and their facial expressions at the kitchen rapid changes in our lifestyle, Kazokutei is contemplating home-meal to go to Okinawa in a cool weather. (Or maybe it is a good idea to visit in the middle of the hall. We can observe and smell delicious food even replacement products such as delivery of buckwheat and wheat noodle Okinawa when it is very hot, and have local beer and shaved ice on the before placing an order. Customers may wonder which dishes they to the household. beach, isn’t it?). want to order and get motivated by sweet smell. It is as if you were in President Inui : We opened 6 directly-owned shops by July. and closed Disneyland. You get motivated to try every attraction once you are in

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TOP MESSAGE

Interview Inui-san vs. Otei-chan

Otei-chan : I’m looking forward to Kazokutei’s entry into home-meal President Inui : The food service industry was under severe Otei-chan : Why certainly! (She is dreaming of having shaved ice on President Inui : Oh, that’s right. Sorry, Otei-chan. replacement market. Kazokutei has been progressing step by step. competition even before the Lehman shock. The impact of the disaster the beach in Okinawa and enjoying a full dinner at Shun-no-mai in Otei-chan : (Her eyes filled with tears) Since I always stay in our shop and do not get to know much about the made the environment of the industry more difficult. We are faced with Thailand.) I’ll do my best. whole company, I have started to realize how Kazokutei has been the successor problem, the change of generation and may be forced to President Inui : Incidentally, we are selling “Happy Meal Voucher” (After the interview, Otei-chan and President Inui had a rather steadily developing not only internationally but also in Japan market. get through the reshuffle in the industry. Because the environment is again in July and August. “Happy Meal Voucher” costs 5,000 Yen but academic discussion if they could modify the qualifications on so severe, our business expansion strategy has become that much more is worth 6,000 Yen. If you purchase one,, winners of lottery will get applicants for the travel gift drawing of “Happy Meal Voucher”.) viable We will have to work harder. Keep up with your good work, travel vouchers to Bangkok, Thailand. Have you tried your luck, Expansion of Otei-chan! Otei-chan? The end of interview Businesses Otei-chan : No, my shop manager told me that we employees are not

Boiled noodle allowed to try. (She is about to cry.) and uncooked Gained Noodle noodle through M&A manufacturing Cooked noodle (to be heated in business the microwave ■ Mid-Term Business Plan（Reinforce Program of FC Management Platform） oven) During the year 2011, priority issues are brand management led by the head office, strengthening of promotional support by supervisors, and training of overseas supervisors in addition to keeping up the key issues for the previous year. Development Delivery Soba and on our own business Udon noodles

Home-meal replacement Applications(Business Formats)

FC Soba and Japanese Teppan-Yaki Businesses Udon noodles Ramen? Sushi? Cuisine? Grill? Strengthening Large sized Expansion in of supervisors’ corporate rental training franchisees training staff Purchasing Financial Management Sales Brand Development Training and of Business Domestic Support Promotion Management Soba and Logistics Operations Subsidy Udon noodles programs Expansion of Businesses New business FC Management Platform (Base) Directly line franchisees ● Defensive Managed Financial Purchasing and Management Sales Brand ● Development of Development Training of Business Overseas Support Logistics Promotion Management Businesses FC Human Operations New training Resources programs (China, New central kitchens Thailand) for noodles (Thailand) and knowhow ● Franchisee membership ● Consultation on funding ● ManagementSVによる of shop ● Proposals for sales ● Planning and implementation ● for launching business ● ● operation by SV expansion and of comprehensive ● Pilot Shops Shop properties Cooking technique Cost saving by 店舗経営管理 ● ● ● Business Forrmats Support for Customer service centralized purchasing ● Checking of taste and promotion brand management ● ● Menus operating fund ● Shop management and logistics 技術指導員による味、customer service ( Including registration of Food services industry ● Support for utilization 接客の巡回チェックby itinerant Technical brand name and prevention of subsidies etc. Instructors of Knowhow leakage)

Addition of home-meal replacement buckwheat and wheat noodle Soba and Japanese Cuisines “The Show Kushi Katsu Udon noodles “Kagonoya” Kitchen”

Applications(Business Formats)

Business expansion based on the franchise management platform

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INFORMATION

Start of overseas expansion

Kazokutei makes the world to smile, starting from Asia, and to the whole world The record of our overseas openings We opened two shops in Bangkok, ailand both in March and April, 2011. We also opened a shop in Singapore and one more in Shanghai, China in July. We are opening Kagonoya, a joint venture with KPN Corporation, a conglomerate in ailand, and with Kinrei Corporation, 14 shops, mainly in SOBA(buckwheat noodle) and UDON(wheat noodle) lines were opened.(As of August, 2011) which serves a full range of Japanese cuisines centered on Shabu-Shabu in August. We will also open Shun-no-mai, the Show Kitchen, a new category pub of our own, for the rst time in August based on the master franchise agreement with Somboon Corporation, another ai conglomerate. We will be moving our overseas business ahead steadily in the years to come, too. Franchise agreement was concluded with Oishi Group Public Company Limited in June 2009. 10 shops 7 buckwheat and wheat noodle shops were opened. 2 shops out of 7 were established in 2011. in Thailand 3 more shops, in Kushi Katsu line,full range of Japanese Cuisines line, The Show Kitchen line, were opened. Our overseas shop opening projection, starting this year

Already opened To be opened Russia Target: The number of shops to be opened in the next 5 years

India (Established a Joint Venture Company（January, 2011）) China A joint venture was established with Want Want Group, a major food company based 2 shops (Target: 200 to 300 shops) in China Canada in Taiwan in December 2009. 2 SOBA and UDON noodle shops were opened. 1 shop out of 2 was established in 2011.

Vietnam Thailand (Target: 30 shops)

Australia

Basic policies for overseas business Franchise agreement was concluded with Japan Foods Holding PTE Ltd in June 2008. 2 shops Studying to open shops in soba and udon noodles and other business categories Singapore 2 SOBA and UDON noodle shops were opened. 1 of them was established in 2011. in Singapore (Target: 20 shops) Target customers : presently growing middle income class in each local market. Business formats/menu : Initially, we are planning to start mainly with Udon and Soba noodle shops, but will not confine ourselves to this area of business. As for the taste of dishes, we will basically use our original recipes, while also adjusting to local tastes. Price : Affordable prices for our target customers. Procurement : Because imported materials are generally expensive, we will mainly purchase materials locally, depending on the situation of each country. We will build our own procurement Indonesia and logistic system. We will utilize centralized kitchens to effectively manage our brand.

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INFORMATION

Information

Kazokutei provides Japanese cuisine. Initial membership fee * The amounts below are given in Japanese yen.

Affiliating A type : From JPY35,000,000 to JPY50,000,000 We are searching for overseas fee (To be determined considering a market size and other factors.) You will have a local headquarters and be given exclusive membership rights for a specific country or region. B type : JPY10,000,000 business partners that This is an ordinary membership with no exclusive rights. can share our philosophy. Marketing JPY1,000,000 investment fee - To study your competitor and cover the various costs that will be incurred in creating your business plan ,earning and expenditure model plan. (The actual fees for this investigation include travel and accommodation costs, charged separately.) * The marketing investment fee pays for evaluating your eligibility for membership, and is non refundable, even if you are not invited to become a Support available before you sign an FC contract member, or choose not to. Shop design JPY800,000 We will give you an overview as well as the details of fee (travel and accommodation costs for local meetings are charged separately) our system for running a Kazokutei franchise chain Instructions business and ask you, as a potential member, about Training JPY1,000,000 your requirements. fee - Covers two weeks at Kazokutei traning facilities and restaurants in Osaka,Japan and our staff at your side for four weeks before and after you open your own restaurant. After carefully looking into what advantages you have Our research Plan creation - Use of the English version of both Food preparation manual and customer service manual. Support in starting and what problems need to be resolved in order to We study the local market conditions, including Based on our local marketing study, we will create a business plan, - More traning days can be provided at an additional charge. your business develop your business, we will suggest a business your potential competitors and various costs. determine the initial investment amount required, establish earnings and expense models, and provide you with the technical details you need to get - All travel cost to Japan and supervisors sent from Kazokutei to your side will be charged separately. model to you, while you are still a candidate member. started.

After you have thoroughly examined, understood and - The cost of obtaining the restaurant premises, interior and exterior improvements, cooking facilities, and the cost of other needed equipment Other costs Concluding the agreed to our proposed business plan, we will create will be separate. contract an FC member contract for you. Support for starting, maintaining, and expanding your business

We give you lots of support so you can start up your Start-up know-how Running costs Support for starting business smoothly. your business Training Procurement You will receive training at Kazokutei headquarters in Establishing foodstuff procurement lines and Royalty 5% of gross monthly sales Osaka, Japan and at your side. distribution routes. Local preparation for opening a restaurant, aid and Food preparation Operating a restaurant Opening a instruction on how to operate after opening. - You will receive support for starting a central - Developing restaurant managers, cooks, and support staff. kitchen, if necessary. - Help establishing a PC based operating management restaurant - We help you identify the tastes, menus, and cooking system. methods that are suitable for your local customers. - Our supervisors help you develop a management system.

We fully support you to stabilize your business by Know-how to help you expand your business or recover from poor business Support to stabilize having our supervisors make periodic visits, and by Training Procurement the business making continuous checks on each operation. Kazokutei has the English website so that people We offer ongoing training so you can keep improving How to maintain your current suppliers and develop your business skills. new sources. overseas can fully understand our FC Business. Support for increasing the number of restaurants, Food preparation Restaurant management Support for expansion expanding the range of restaurant locations, and - Installation of a central kitchen. - Instructions about how to start up a new restaurant. - Maintaining current menus and developing - Analysis of business at a slow location, with help http://www.kazokutei.co.jp/en and recovery improving business at slow restaurants. new menus. from our supervisors to develop a recovery plan. - Re-education of restaurant staff.

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INFORMATION

Introduction of our restaurants and shops

Directly-managed businesses

We always keep on improving our taste and services as a leader in our group. Offering new-style Udon dishes targeting at young generation and ladies.

Kazokutei

Kazokutei 64 years of business with Udon no U superior hospitality and service We offer with a bright smile. new-style Udon dishes.

Modern restaurant where creative and seasonal dishes are served in a soothing atmosphere.

Kashun an Genmyowaraku Using stone mill in our restaurant, we serve fresh soba noodles with Soba restaurant rich aroma for you. with fashionably modern design.

Izakaya (Japanese style bar restaurant) where you can enjoy authentic soba dishes.

We improve the taste and services at “Kazokutei” Nokiba format shops as a leader in our group. Kyousai You can taste modern creative Soba dining spot where you soba dishes and sake. can enjoy tasty sake. 64 years since establishment, we at Kazokutei have been offering superior hospitality and service with a bright Upper-grade Soba restaurant where you can enjoy seasonal tastes. smile. Our speciality SOBA can be tasted even to "SOBA-YU" (the water where SOBA was boiled in.) We prepare the SOBA by "grinding, kneading and boling" Kazokutei Port Island shop, was opened Sanbouan with great delicacy and care, in July by Atsu Corporation, Kyou shun one of our large-scale corporate Traditional orthodox upper In our restaurant, we show grade soba restaurant that inherits performance of making real hand franchisees, in Kobe. serve it to our customers Kazokutei's original taste. made soba noodles. with our whole heart.

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INFORMATION

Introduction of our restaurants and shops

Directly-managed and franchise businesses

Suburban shops that are popular for their rich variety. Shops located in office building blocks.

TokuToku TokuToku Middle-to-large sized restaurant Small-sized shops along the arcaded on road sides mainly serving Udon. street and inside buildings. (Mainly corporate franchisees) (Mainly private franchisees) TokuToku Self-service noodle shops on road-side. Self-service noodle shops in food courts.

TokuToku Self Type Middle-to-large sized TokuToku self-service noodle shops Small-sized self-service on road sides. noodle shops in food courts. (Private and corporate franchisees) (Private and corporate franchisees)

It has a variety of dinner menus and its warm homemade dishes are popular. Casual shops with substantial dishes at reasonable prices.

With a wide choice of selections, customers Oteichan Shops in office buildings located in Kazokuan can enjoy varieties of traditional udon. commercial districts We serve authentic Soba or in front of stations. with reasonable prices. (Private and corporate franchisees) (Private and corporate franchisees) We would like our customers to get toku (beneﬁt) by enjoying delicious dishes while we would also like to Shops with high value added kyoto-style dishes and udon, jointly developed with Kinrei Corporation. share the joy of our customers. "Toku Toku" with this concept has developed its directly-managed shops and FC shops across Japan as an

authentic Udon-dish restaurant where Toku Toku Makiminato shop, was opened Fu fu ya Kyomen gion customers can enjoy the original in July by Ryuseki Corporation, Middle-to-large sized road side shops one of our large-scale corporate designed like a traditional Medium-sized shops for shopping merchant house in Kyoto. centers and inside-building locations. franchisees, in Okinawa. daintiness of Udon. (Mainly corporate franchisees) (Mainly corporate franchisees)

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SHOP LIST

Shop list（95shops as of July 31, 2011） The newest information of shops is shown at our website. Kazokutei

大阪 NARA CHIBA TOKYO

Nokiba Tennoji shop Tennoji Mio 11F Naragakuen-mae shop Kintetsu Gakuen-mae station ParadiⅡ 4F Udonno Nagareyama Nagareyama Otakanomori S・EC3F Kashun-an Ebisu shop Atre Ebisu 6F Otakanomori shop Nokiba Minoo shop Minoo Market Park Visola EAST2 Kashun-an Musashi Aeon mall Musashi Murayama Myu 1F Murayama shop Kyobashi shop Kyobashi Coms Garden B2F HYOGO Sin-Urayasu shop Atre Shin-Urayasu 2F Umeda-chikagai shop Whity Umeda North mall1 Tsudanuma shop Ito Yokado Tsudanuma store 7F Genmyo-waraku Oimachi shop Atre Oimachi 6F Umeda Hankyu sanbangai shop Hankyu Sanbangai Minami-kan B2F Nokiba Hanshin Nishinomiya shop Under the elevated railroad of Hanshin Nishinomiya Minami Kashiwa shop Fields Minami Kashiwa mallⅠ4F Ogikubo Sanpoan Ogikubo Lumine 5F station (South side) Umeda Hankyu grand bldg. shop Hankyu Grand Bldg. 28F Udonno Meguro shop Atre MeguroⅠ5F Umeda Navio shop HEP Navio 6F Udonno Mint Kobe shop Mint Kobe 7F Kyosai Shiodome shop Shiodome City Center B1F Umeda Yodobashi shop Yodobashi Umeda Bldg. 8F Hanshin Amagasaki shop In the Amagasaki chuo shopping district, north of SAITAMA Kyosai Meguro shop Atre MeguroⅡ 2F Hanshin Amagasaki station Umeda Chayamachi shop Umedachayamachi Applause Tower B1F Kyosai Kinshicho shop Marui Kinshicho store7F Kyosyun Urawa shop Isetan Urawa store 7F Noda Hanshin shop Wiste 4F, in front of Hanshin Noda station Hankyu Sonoda shop Hankyu Sonoda station Sonoda Hankyu Plaza 2F Ikebukuro shop Tobu Spice 12F Ageo shop Haricots Verts Maruhiro 6F Esaka shop Esaka Tokyu Bldg. B1F Kawanishi Noseguchi shop East of Hankyu Kawanishi Noseguchi station concourse Shibuya shop Shibuya Tokyu Plaza B2F Shiki shop Marui Family Shiki 8F Senri-chuo shop In front of Osaka monorail Senri Chuo station Sannomiya shop Under the elevated railway of Hankyu Sannomiya station (North side) Hibiya shop Hibiya Chanter B2F Soka shop Marui Soka store 8F Hankyu Yamada shop Hankyu Yamada station Dew Hankyu Yamada 2F Sanchika shop North of Sanchika subway Kaigan line concourse Korakuen shop Metro M Korakuen 5F New shop LaLa garden KAWAGUCHI shop Kawaguchi-shi LaLa garden KAWAGUCHI 1F Osaka Business Park shop OBP Cristal Tower B1F Shin-Kobe shop Shin-Kobe Oriental Park Avenue 3F Kamata shop Kamata Tokyu Plaza 7F Tsurumi shop Aeon mall Tsurumi Leafa 4F Kobe Asahi Bldg. shop Kobe Asashi Bldg. 2F Omori shop Atre Omori 5F Hirakata shop Foleo Hirakata 1F Life Kobe-ekimae shop Life Kobe ekimae store 1F New shop Kyoshun Tachikawa shop Granduo 6F Moriguchi shop Keihan Department store 7F Kobe station chikagai shop JR Kobe station Duo Kobe Hamanote Hachioji shop Hachioji Now 9F Nanba Walk shop Nanba walk Ichibangai Minami street Maitamon shop Blumer Maitamon 2F Kashun-an Musashikoganei shop Ito Yokado Musashikoganei store 1F Nanba Minatomachi shop OCAT mall 5F Nishijin Chuo shop Plenty Senmonten Nibankan 1F, Subway Nishijin Chuo station Nakano Sanpoan Nakano Mile 5F Suminoe shop South of Subway Suminoe-koen station entrance Aeon Kobe Kita shop Aeon mall Kobe Kita 1F Sakai Higashi shop Sakai Takashimaya S.C.UPru B1F New shop Port Island shop Shiminbyoinmae Bldg. 201, Cyuo-ku, Kobe-shi Ibaraki shop 200m north of Fudo Suita-Takatsuki line Ibaraki Police station SINGAPORE

Hankyu Ibaraki shop Hankyu Ibaraki-shi station Rosavia 2F SHIZUOKA Praza Singapura shop New shop Takatsuki shop Takatsuki Matsuzakaya 5F Hamamatsu May-one shop Hamamatsu Terminal Bldg. May-one 7F Junction8 shop Hankyu Takatsuki shop Under the elevated railroad of Hankyu Takatsuki-shi station (Osaka side)

Hankyu Okamachi shop Under the elevated railroad of KANAGAWA THAILAND Hankyu Okamachi station(Toyonaka side) Kashun-an Yokohama Bay quarter shop Yokohama Bay Quarter 5F Central Pinklao shop (Bang kok) Ikeda shop West side of Hankyu Ikeda station concours Yokohama Sanpoan Sky Bldg. 10F Grass Thonglor shop (Bang kok) Fufuya Tsurumi shop Tsurumi 3-13-31, Tsurumi-ku, Osaka-shi Udonno Lalaport Yokohama shop Lalaport Yokohama 3F Central Plaza Rama3 shop (Bang kok) Kohoku Center Kita shop North Port mall 5F PALADISE PARK shop (Bang kok) KYOTO Kanazawa Hakkei shop Daiei Kanazawa Hakkei store 3F Nawamin City Avenue shop (Bang kok) Kawasaki shop Kawasaki Chikagai Azelea Minami 4bangai Osaka Kushiya Kushikatu Senmon shop (Bang kok) Kyoto Nishioji shop Jusco Rakunan store 2F Mizonokuchi Sanpoan Nocty Plaza1 9F New shop Big-c Rajdamri shop (Bang kok) Keihanna shop APiTA TOWN Keihanna CTower 1F New shop Siam Discovery shop (Bang kok) HOKKAIDO CHINA Sapporo Stellar Place shop JR Tower Sapporo Stellar Place 6F Sapporo shop Marui Imaihonten Shinkan 10F Shi men yi lu shop (Shanghai) Kashun-an Nissay Sapporo Building shop Nissay Sapporo Building B1F New shop Lian Hua Lu shop (Shanghai)

* Please refer to “Start of overseas expansion” on Page 9 & 10 for further. details. 17 18 家族亭 P19-20

SHOP LIST

Shop list（ 124shops as of July 31, 2011） The newest information of shops is shown at our website.

TokuToku

OSAKA KYOTO NARA GIFU IWATE

Izumisano Ichiba Nishi shop Ichiba Nishi 3-6-8, Izumisano-shi Fushimi-takeda shop Takedanakagawara-cho 1-4, Kashihara shop Hokkeji-cho82, Kashiwara-shi Gifu Yoro shop Funatsuke 15-1, Yoro-cho, Yoro-gun Kitakami shop Kurosawajiri 3-1-1, Kitakami-shi Fushimi-ku, Kyoto-shi Sakai Kurotuchi shop Kurotuchi-cho 2267-4, Sakai-shi Gosho shop Oaza Higashi Matsumoto 125, Gosho-shi Kyoto Rakusei shop Ooenakayamacho 2-155, Saikyo-ku, Sanjo Soegawa shop Sanjo Soegawa-cho 5-28, Nara-shi Oonoshiba shop Oonoshiba-cho 136-1, Naka-ku, Sakai-shi Kyoto-shi Nishiyamato shop Nakayamadai 2-1-10, Kawai-cho, Settsu Torigai shop Torikaiue 4-2-18, Settsu-shi Fushimi-shimotoba shop Minaminekoya-cho 43, Fushimi-ku, Kitakatsuragi-gun Kyoto-shi TOCHIGI MIYAGI Higashi Osaka Hishiya Amenity Santorini 2F, Hishiya Higashi Tenri Bessho shop Bessho-cho 12-2, Tenri-shi shop 2-16-13, Higashi Osaka-shi Maizuru Nishi shop Koaza Ihara 140-1, Aza Kamiyasuhisa, Maizuru-shi Tawaramoto shop Touko 64-4, Tawaramoto-cho, Shiki-gun Kazokuan Ustsunomiya Nakasato Tenpo 1F, Ikegami-cho 2-7, Natori Bypass shop Aza Yanagida 397-1, Masuda, Natori-shi Tanimachi shop Uchihon-machi 1-4-3, Chuo-ku, Osaka-shi Ikegamicho shop Ustsunomiya-shi Fujinomori shop Sujikaibashi 2-423, Fukakusa, Foleo Town Tsutsui shop Foleo Town Tsutsui nai, Tsutsui-cho Minoo shop Nobre Villa 1F, Minoo 6-4-1, Minoo-shi Fushimi-ku, Kyoto-shi 531-1, Yamato-koriyama-shi Abiko Karita shop Kitano Mansion 1F, Karita 7-12-19, Kyoto-yawata shop Yawata Suihaku28, Yawata-shi Toku Toku Life Life Gakuen-mae store 1F, Sumiyoshi-ku,Osaka-shi Gakuen-mae shop Nakatomigaoka3-3, Nara-shi Kisshoin shop Kisshoin-miyanonishi-cho 4-1, FUKUSHIMA Korien shop Kansouzuka 3-6, Neyagawa-shi Minami-ku, Kyoto- shi Kashiharatokiwa shop Tokiwa-cho 367, Kashihara-shi TOKYO Izumiya koryo-cho shop Abe 214-3,koryo-cho,kitakatsuragi-gun Minamimori-machi shop Shin Nihon Tenma Bldg., Higashi Toku Toku Rokujizo shop Itoyokado Rokujizo store B1F, Toku Toku Funehiki Park Funehikimachi Funehiki Harada 9, Tenma 1-10-12, Kita-ku, Osaka-shi Rokujizo Naramachi 67-1, Uji-shi Kashiharamagarikawa shop Magarikawa-cho 7-8-1, Kashihara-shi Nerima Heiwadai shop Urushibara Green Mansion, Heiwadai Shop Tamura-shi 4-1-1, Nerima-ku Kawachi Nagano shop Nishinoyama-cho 5-20 Kawachi Nagano-shi Itabashi Nishidai shop Ishida Mansion, Nishidai 2-39-5, Itabashi-ku Zenya Makino shop Makinohoncho 1-1-98 Maikata-shi SHIMANE Jujo shop Chiba Bldg, Kamijujo 3-22-8, Kitaku NIIGATA Senboku shop Obadera 813-2, Minami-ku, Sakai-shi Kitakoiwa shop Kitakoiwa 2-32-11, Edogawa-ku Komyouike shop Combox Komyouike 1F, Murodo-cho Hinotoyota shop Asahigaoka 1-22-40, Hino-shi 824-36, Izumi-shi Shinhamada shop Power City Hamada nai, Shufu-cho Toku Toku Kumawatari 2035-23, Aga-machi, i-61-1, Hamada-shi AganogawaSA shop Higashi Kanbara-gun Kazokuan Awaji shop In a shopping district west of Hankyu Kita-cho shop Kita-cho 1112-1, Nagaoka-shi Awaji station concourse FUKUI Sakaisuji Honcho shop Minamihoncho 1-7-15, Chuo-ku, KANAGAWA Osaka-shi HIROSHIMA Tsuruga-honmachi shop Honmachi 1-12-19, Tsuruga-shi Wakasa Takahama shop Aza Kyogahana, Miyazaki35, Toku Toku Kohoku North Port mall 3F, Nakagawachyuo New shop Sakai Ishizu shop Hamadera Ishizucho Nishi 2-8-2, CHIBA Takahama-cho, Oi-gun Center Kita shop (SELF) 1-25-1, Tuzyki-ku, Yokohama-shi Nishi-ku,Sakai-shi Hiroshima Gion shop Nishihara 1-10-3, Asa Minami-ku, Hiroshima-shi Tsurugamine shop Tsurugamine 2-2-1, Asahi-ku, Kashiwa・Hananoi shop Hananoi 712-8, Kashiwa-shi Yokohama-shi Toku Toku Mallage Kashiwa 2F, Oyamadai 2-3, Kazokuan Totsuka shop Totsuka-cho 16-1, Totsuka-ku, Mallage Kashiwa shop Kashiwa-shi Yokohama-shi AICHI Minaminagareyama shop Minaminagareyama 7-32-3, HYOGO EHIME Ngareyama-shi Tokai shop Kenmaku 9-1, Arao-machi, Tokai-shi New shop Narita shop Ebesu 490-12, Narita-shi Tatsuno shop Yokka 52-6, Tatsuno-cho, Tatsuno-shi Imabari shop Ebisu-cho 2-4-1, Imabari-sh KOUCHI Okazaki Midorigaoka shop Midorigaoka 3-8-6, Okazaki-shi NAGANO Gakuen Minami shop Autobacs Gakuen Minami store Parking Lot, Imabari Bypass shop Haccho Higashi 6-5-30, Imabari-shi Minami Anjo shop Kyone 25-2, Jojo-cho, Anjo-shi Kozukadai 868-1038, Tarumi-ku, Kobe Matsuyama Kume shop Kume Kubota-machi 844-1, Matsuyama-shi Kagamigawa Ohashi Kitashinden-cho 18-28, Kochi-shi Okazaki Mutsumi shop Aza Ikeda Ko 38, Doi-machi, Okazaki-shi Komoro shop Ko 16-13, Komoro-shi Mukonosho shop Mukonosho 5-14-2, Amagasaki-shi Toyo shop Mitsuya Minami 6-19, Saijo-shi Minami shop Nishio shop Nagayoshi-machi 1-35, Nishio-shi Kikyogahara shop Takaide 1486-750, Hirooka, Shiojiri-shi SAITAMA Onishi shop Miyawakiko 16-1, Onishi-cho, Imabari-shi Nangokuai shop Osone Otsu 872-3, Nangoku-shi Okazaki Honjuku shop Aza Shiro-yashiki 21-1, Honjuku-cho, Itami shop Funabara 2-3-12, Itami-shi Habasaka shop Habasaka-cho 2351-24, Iida-shi Suzaki Oma shop Oma Higashi-machi 107, Suzaki-shi Okazaki-shi Higashiurawa shop Higashiurawa 5-2-6, Midori-ku, Hyogo Yamazaki shop Shounou343-3, Yamazaki-cho, Shiso-shi Niihamagawa Higashi shop Go 2chome, Ko 367-3, Niihamagawa-shi Hidaka shop Iwameji 727-2, Hidaka-mura, Takaoka-gun Okazaki Iga shop Iga-cho 7-71-1, Okazaki-shi Iida-Kiribayashi shop Kiribayashi 1737-1, Iida-shi Saitama-shi Harima-cho shop 2-824-1Kitahonjo Harima-cho Kako-gun Haruno shop Hirookashita 3418-1, Haruno-cho, Handa shop Yanabenakamachi 1-11-1, Handa-shi New shop Matsumoto Namiyanagi shop Idegawa 3-10-15, Matsumoto-shi Asaka Hizaori shop Hizaori-cho 1-5-15, Asaka-shi Iwaoka shop Iwaoka-cho Furusato 1489-29, Agawa-gun Kariya shop Tsukiji-cho 2-13-11,Kariya-shi Minami-wada shop Oaza Wada 4462, Matsumoto-shi Kameya Omiya shop Takahana-cho 1-112-2, Omiya-ku, Nishi-ku, Kobe-shi Toyoshina shop Minami-hodaka 578-1, Toyoshina, Saitama-shi TOKUSHIMA Seto shop Seto 1-2-67, Kochi-shi Tokunoya Kamisotone 47-4, Hanshin Fukae shop Fukaekitamachi 4-10-11, Nakamura Higashi-machi shop Higashi-machi 3-5-6, Nakamura-shi Toyota-Wakabayashi shop Wakabayashihigashimachi,Toyota-shi Azumino-shi Kumagaya shop Kamino 647-1, Kumagaya-shi Higashinada-ku, Kobe-shi Kyomen Gion Aeon Lake Aeon Lake Town Kaze Tower3F Komatsushima shop Aza Akaishi Minami 1374-1, Kochi-kita shop Higashi Taisen-ji 120-1, Kochi-shi Hoshigaoka shop Inoue-cho 77, Chikusa-ku, Nagoya-shi Town Koshigaya shop Tano-cho, Komatsushima-shi Takasu shop Takasu997-1, Kochi-shi Nagoyaubakoyama shop Ubakoyama 2-6-11, Midori-ku, New shop Toku Toku Shimachu Uetake-cho 1-820-5, Kita-ku, Kokufu shop Sakurama Aza Todoro 31-1, Kochi Asahi shop Higashikawahara 226, Motomiya-cho, Nagoya-shi HOME'S Miyahara shop Saitama-shi Kokufu-cho, Tokushima-shi Kochi-shi SHIZUOKA Anan shop Motomura 5-1, Nishijimi-cho, Anan-shi Aki shop Tsukumo-cho 2553-1, Aki-shi SHIGA Shimoda shop Higashi Hongo 1-2-1, Shimoda-shi Hokke Otani shop Shin-tsutsumi 9-1, Otani-cho, Tokushima-shi Koike-cho shop Koike-cho 1576-2, Higashi-ku, Kusatsu shop Noji-cho 1069-1, Kusatsu-shi MIE Hamamatsu-shi Omi-hachiman shop Horikami-cho 208-5, Omi-hachiman-shi Hamamatsu-hongo shop Hongo-cho 452, Minami-ku, Mizuguchi shop Higashi Nazaka 288-1, OKINAWA Yokkaichi-shiikuwa shop Takada 796-1, Shiikuwa-cho, Yokkaichi-shi Hamamatsu-shi Mizuguchi-cho, Koga-shi Iga Ueno shop Hirano Nishi-machi 79, Iga-shi Hamakita shop Shinbaru 2555-3, Hamakita-ku, Ritto shop Ogaki 3-26-1, Ritto-shi New shop Makiminato shop Makiminato 2-48-19 Urasoe-shi Nabari shop Sekoguchi 213-1, Nabari-shi Hamamatsu-shi

19 20 家族亭 P21-22

BUSINESS REPORT FINANCIAL HIGHLIGHTS

The general business situation Financial highlights

Business progress and results The interim period The whole year The whole year (an expected score)

During the first half of this business year, the Japanese economy has as direct business, while closing down 2 shops by shifting them to been lacking visibility for future because inflated cost is feared by the franchisees, in addition to 14 unprofitable shops. That has brought the ▶ Revenue (unit: million yen) ▶ Total asset (unit: million yen) appreciation of yen, and by protracted, high prices of oil, and a rapid number of restaurants directly managed to 102 in total. Meanwhile, 10,000 9,250 8,000 8,955 9,194 7,248 7,266 reduction in domestic business activities due to the March 11 disaster the FC business Division concluded 8 new franchise agreements and 8,921 6,810 6,859 6,592 6,922 6,641 8,000 is causing a decrease in personal consumption. Furthermore, the opened 4 new restaurants, while we terminated 3 franchisees, which 6,000 accidents in the nuclear power stations immediately after the disaster has brought the number of franchisee restaurants to 103 in total. As for 6,000 4,471 had a wide-spread effect on the nation including the shortage of overseas business, we opened shops in Thailand including the sixth 4,361 4,372 4,075 4,000 4,000 electric power supply. shop in Lumpinee in March and the seventh shop in Siam in April, and 2,000 closed 2 shops. The number of overseas franchise shops totaled 11 2,000 In the food service industry, which temporarily showed signs of including two in Singapore, 8 shops in Thailand, and a shop in China. 0 0 The 58th period The 59th period The 60th period The 61th The 58th period The 59th period The 60th period The 61th recovery towards the end of last year, people have been refraining from All together, the total number of restaurants including 102 For the year ended For the year ended For the year ended Interim period For the year ended For the year ended For the year ended Interim period December31, 2008 December31, 2009 December31, 2010 For the year ended December31, 2008 December31, 2009 December31, 2010 For the year ended personal consumption including eating out, primarily due to the March directly-owned shops and 114 franchise chain restaurants including June30, 2011 June30, 2011 11 disaster and the ensuing nuclear accidents. There is a serious overseas shops, and 6 shops based on business tie-up turned out to be concern over food supply and safety and over rising costs of raw 222 as of the end of the second quarter. (unit: million yen) (unit: million yen) materials. Therefore, the market conditions of the food service industry ▶ Ordinary Income ▶ Net asset as a whole have become more difficult. As a result of the above-mentioned business activities, revenues for the 4,000 3,728 3,740 3,788 400 359 3,719 3,716 3,682 3,567 first half of this year was decreased by 6.8% compared to the same 340 350 The same store sales as compared to the same period of the previous period of the previous year to 4.075 billion Yen, with operating loss of 300 276 3,000 year (hereafter referred to as the “same store sales”) of Kazokutei Co., 36 million Yen and ordinary loss of 25 million Yen. The company added 200 2,000 Ltd. decreased for the first quarter of 2011 to 93.8%, mainly due to the up extraordinary profits including 30 million Yen of gain on reversal of 150 impact of the earthquake, etc. , while it had shown signs of recovery, stock warrant and also 224 million Yen of extraordinary losses 92 100 57 1,000 posting 101.7% for directly-owned shops and 98.2% for franchise including 32 million Yen of debt in asset removal and 166 million Yen △25 chain operations for the month of December 2010. However, the in the provision of reserve for shop closure loss. Net loss for the second 0 0 The 58th period The 59th period The 60th period The 58th period The 59th period The 60th period The 61th year-to-date same store sales have been recovering to 95.3% as of the quarter after adjusting corporate taxes was 152 million Yen. For the year ended For the year ended For the year ended The 61th For the year ended For the year ended For the year ended Interim period December31, 2008 December31, 2009 December31, 2010 Interim period December31, 2008 December31, 2009 December31, 2010 For the year ended end of the second quarter. With regard to the month of June, the same For the year ended June30, 2011 store sales posted 99%, due partly to the weather conditions. June30, 2011 First Half of FY 2011 ▶ Net Profit for this Period (unit: million yen) ▶ Net Profit per Share for this period (unit: yen) In this environment, we made efforts to maintain high motivation of Total sales by each business department the employees and to avoid waste. During the second quarter, in 4,075 million yen 200 30 particular, the Company decided and implemented the following 136 122 19.41 Toku Toku 20 17.44 strategy to streamline operations to reinforce profitable growth for the FC business 100 82 future: It consists of (1) closing 13 unprofitable shops, (2) starting the department 11.83 15.4% 20 10 negotiation to review rent,(3) reduction of costs for the headquarter 18 2.91 0 2.56 functions including 3% of personnel costs and 5% of other expenses, Kazokutei 0 business △6 △7 and (4) fully implementing cost reduction for directly-owned shops. We department △0.86 △1.05 are looking forward to realizing substantial results from the 64.7% △100 △10 The 58th period The 59th period The 60th period The 58th period The 59th period The 60th period streamlining strategy in the second half of the year. For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended Toku Toku December31, 2008 December31, 2009 December31, 2010 December31, 2008 December31, 2009 December31, 2010 directly-managed △152 business department The 61th △21.76 With regard to upgrading sales network, we opened 4 new restaurants 19.9% Interim period The 61th For the year ended Interim period June30, 2011 For the year ended June30, 2011 21 22 Financial Statements 家族亭 P23-24

FINANCIAL STATEMENTS

Financial Statements

Balance Sheet (Unit:1,000yen) Profit-and-loss statement (Unit:1,000yen)

The interim of The interim of The interim of Previous period Current period Previous period Current period Previous period Current period Items from January1,2010 Items from January1,2010 Items from January1,2010 from January1,2011 from January1,2011 from January1,2011 to December 31,2010 to June 30,2011 to December 31,2010 to June 30,2011 to December 31,2010 to June 30,2011

Assets Liabilities Sales 4,075,225 9,194,891 Current Assets Current Liabilities Cost of Sales 3,514,210 7,620,548 Cash and Deposits 423,239 741,993 Accounts Payable 341,269 469,003 Gross profit on sales 561,015 1,574,343 Accounts Receivable 412,115 580,813 Short-term Loans Payable 20,000 110,000 Selling, General and Administration Expenses 597,424 1,232,135 Inventory 137,165 178,503 Long-term Loans Payable within a year 484,180 536,976 Operating profits (or Loss) △36,409 342,207 Others 387,553 273,306 Corporate Bond Mature in a year 20,000 20,000 Non-operating Income 37,919 85,436 Allowance for dobtful debts △3,561 △3,609 Accrued Amount Payable 361,023 420,127 Non-operating Expenses 26,897 77,430 Total Current Assets 1,356,513 1,771,006 Accrued Corporate Tax etc. 10,574 121,188 Ordinary Income (or Loss) △25,387 350,214 Fixed Assets Others 461,014 366,720 Extraordinary Income 31,467 817 Buildings 4,605,325 4,451,147 Total Current Liabilities 1,698,062 2,044,016 Extraordinary loss 224,657 84,029 Lands 1,076,284 970,735 Fixed Liabilities Income (or Loss) before Tax in the Current period（quarter） △218,577 267,001 Others 1,043,790 1,048,602 Long-term Loan Payable 979,586 758,240 Corporate Tax etc. △65,587 144,387 Accumulated Depreciation △3,901,493 △3,822,050 Corporate bond 40,000 50,000 Net Income (or Loss) in This period（quarter） △152,990 122,613

Total Tangible Fixed Assets 2,823,907 2,648,435 Others 355,830 281,169 (Note) Numbers less than 1,000yen are rounded off from the amount shown. Total Intangible Fixed Assets 29,555 125,258 Total Fixed Liabilities 1,375,416 1,089,409 Investments in Securities 37,754 41,141 Total Liabilities 3,073,478 3,133,426 Deposits on Lease and Guarantee Money 2,166,223 2,182,615 Shareholders・Equity We had hardships Others Ownership Capital 233,429 159,780 during the ﬁrst half year, because of Allowance for dobtful debts △6,232 △6,232 Capital Stock 1,465,784 1,465,784 Investments and Other Assets 2,431,175 2,377,305 Capital Surplus 1,425,506 1,425,506 the impacts of the March 11 disaster such Total Fixed Assets 5,284,637 5,150,999 Retained Earnings 1,159,400 1,347,544 as reduced operation hours and reductions Total Assets 6,641,151 6,922,005 Own Shares △13,915 △13,915 in power consumption but our sales have been Total Ownership Capital 4,036,775 4,224,919 (Note) Numbers less than 1,000yen are rounded off from the amount shown. recovering in July and August and posting nearly Total Valuation and Exchange etc. △469,102 △467,090 Share Warrant ー 30,750 100% of sales compared to the same period The total of Assets Total Shareholders・Equity 3,567,672 3,788,579 in the previous year. Everyone really Total assets were decreased by 280 million Yen from the previous Total Liabilities and 6,641,151 6,922,005 term, mainly due to a decrease in cash and deposits, and an Shareholders・Equity worked hard and implemented increase of investments in affiliates by 37 million Yen. our strategy to streamline The total of Liabilities operations, too. Total liabilities were decreased by 59 million Yen from the previous term, mainly due to a decrease in accounts payable and outstanding accounts, while adding up 144 million Yen of provision of reserve for shop closure loss.

23 24 家族亭 P25-26

STOCK SITUATION CORPORATE DATA

Stock situation Company Outline

Stock Situations (As of June 30, 2011) Company Outline (As of June 30, 2011) Shareholder Memo

Total Number of Authorized shares 14,300,000 shares Distribution Status of Shareholders Distribution Status of Shareholders Company name KAZOKUTEI CO., LTD. Business year From January 1 to December 31 of the year by Number of Shares Owned By Category of Owners Date of establishment April 5, 1951 Total Number of shares Issued 7,056,200 shares (Excluding 25,300 Own Shares) 5,000shares or more 10,000shares or more Securities companies Date to determine 16 people 0.47% 11 people 0.32% 4 people 0.12% shareholdershopceive December 31 101,000shares 306,000shares 1,173shares Major business Operation of restaurants mainly serving Share Unit 100 shares year-end dividend “Soba / Udon”and sales of wholesale foodstuff etc to Owner under Personal Name TOKUTOKU franchise shops Date to determine the Number of Shareholders 3,407 500shares or more 100,000shares or more Financial institutions 1 person 0.03% 192 people 5.64% 3 people 0.09% 9 people 0.26% shareholdershopceive the June 30 25,300shares Capital 1,465,784,000yen midterm dividend Principal Shareholders 98,900shares 4,329,000shares 496,600shares

The goverment, Number of 309 ( Others including part-time employees 1,633 ) The situations of the investment employees Regular Shareholders Meeting Every March Name of in our company Pbulic organizations Less Than100shares 50,000shares or more Other corporations 1 person 0.03% Major Shareholders The number of holdings Voting right ratio 152 people 4.46% 2 people 0.06% 41 people 1.20% 1,000shares Offices Administrator of the 299shares 149,100shares 104,800shares shareholder list Head office WAKITA Fujimura Midosuji Bldg. 2F 4-2-14, Fushimimachi, Mitsubishi UFJ Trust and Banking Corporation Administrative institution for Limited partnership for investment Chuo-ku,Osaka, Japan CAS capital fund3 shares % special account 4,034,000 57.37 TEL +81-6-6227-6030(the main number) Unlimited partner CCP3, Inc. FAX +81-6-6227-6040 Address Osaka stock agent department, Mitsubishi UFJ Trust and Banking Corporation The Bank of Tokyo-Mitsubishi UFJ, Ltd 166,000 2.36 Kanto office Higashi-rokugo 1-13-7, Ota-ku, Tokyo, Japan Fushimimachi 3-6-3, Chuo-ku, Osaka 541-8502, Japan TEL: 0120-094-777(Free charge number) Mizuho Bank, Ltd 129,000 1.83 Nishinomiya factory Nishinomiyahama 1-27, Nishinomiya-shi, Hyogo, Japan Listed stock market Jasdaq Securities Exchange, Inc. Kansai factory Torikaikami 2-1-28, Settsu-shi, Osaka, Japan Sumitomo Mitsui Banking Corporation 80,000 1.13 Securities code 9931 Kazokutei employees' holding association 69,100 0.98 Method of public announcements To be conducted electronically 100shares or more 1,000shares or more Individuals or others Corporations Nanto Bank, Ltd 3,350 people 98.33% 43,000 0.61 1,272 people 37.33% 1,759 people 51.63% abroad,etc. URL for public announcements http://www.kazokutei.co.jp 135,300shares 1,936,601shares 6,426,327shares 1 person 0.03% 1,000shares (Public announcements will be published on The Nikkei News Paper when some accidents or other unavoidable causes that prevent the electronic public announcement happen.) The board members and auditors (As of July 31, 2011)

President Mitsuhiro Inui Auditor full-time Haruo Kawabata ( ) Shareholder special benefit plan (Note) 1.With the computerization of shares, all the procedures related to the change of shareholders' Board member General manager of product Kazuaki Irie Auditor Masaaki Tsubakimoto The presentation periods are April and September. addresses, purchase demand and so on are now dealt with by the account administrative institutions (e.g. Securities Company) where you have your account in principle. Please contact Board member General manager of new business Nobuo Miki Auditor Kouichi Kusao Meal coupons worth 6,000 Yen (500 Yen x 12 coupons) or products of our company of the Securities Company, etc where you have your account on that matter. Please be advised equal value will be given to shareholders having more than 1,000 shares as of the base that the administrator of the stockholder list (Mitsubishi UFJ Trust and Banking Corporation) is General manager of international business Board member Yoichi Uchiyama Auditor Nobuyuki Hirose dates of December 31 and June 30 each year. In addition, meal coupons worth 3,500 not able to handle these issues. Yen (500 Yen x 7 coupons) will be given to shareholders having between 500 and 999 Board member General manager of Shinichi Kasa 2.As for the procedures related to the shares recorded in the special account, contact the Directly-Managed Businesses shares, along with meal coupons worth 1,000 Yen administrative institution for special account (Mitsubishi UFJ Trust and Banking Corporation). (500 Yen x 2 coupons) for shareholders having Board member General manager of management Masaki Nishimura They can also be handled at main and branch offices of Mitsubishi UFJ Trust and Banking between 100 and 499 shares. Corporation in Japan. Board member Yasuharu Kibayashi Those shareholders who own 1,000 or more shares as of sample 3.Dividends not yet received are paid at main and branch offices of Mitsubishi UFJ Trust and December 31, 2011 will be given merchandise worth Banking Corporation. Board member Nobukazu Sawamura 1,500 Yen of Kazokutei, in addition to meal vouchers worth 6,000 Yen (12 x 500 Yen vouchers) or merchandise worth 6,000 Yen. The newest information of Shareholder special benefit etc. is shown at our website.

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