家族亭 [ 英語版 ] 表 1- 表 4

Kazokutei Kazokutei Co., LTD

Fujimura-Yamato Seimei Bldg. 2F 4-2-14, Fushimimachi, Chuo-ku, Japan TEL +81-6-6227-6030 Interim Report of the 60th Accounting period http://www.kazokutei.co.jp/en January 1, 2010 - June 30, 2010 家族亭 P1-2

Kazokutei makes everyone in the world smile. Topics for the First Half of 2010 Securing profit amid adverse winds while making From Osaka, Kazokutei is bringing investments for the medium and long term future. delicious noodles to Asia and the world.

Kazokutei's secret recipe for soba and TOPIC 1 March, April, July, and August, 2010 TOPIC 2 Scheduled in September, 2010 Tokutoku's handmade udon Two shops each were launched Starting to establish both in China and Thailand a joint venture in India bring smiles to everyone. In 2010, two shops were launched in Shanghai, China on In order to promote chain Japanese food service business March 22 and April 21. In Bangkok, Thailand two shops in India, a joint venture is to be established with Abacus were also launched on July 5 and August 12. Venture Solutions Private Limited.

TOPIC 3 TOPIC 4 Establishment of a package for Rush of applications for overseas large-sized corporate franchisees master franchisee agreement

This package is based on a win-win business model for large-sized Six applications including business categories other than franchisee owners of existing major franchise chain businesses including Udon and Soba (wheat and buckwheat) noodle shops are ones other than restaurants, for those who are uneasy or dissatisfied with now under negotiation. Udon and soba noodle industry is very traditional. Kazokutei also commemorates the roles played by their current franchisers. the 63nd anniversary this year. However, it is not an old-fashioned company. We commenced management reform 7 years ago focusing Investor Relations Annual Schedule (January 1, 2010 - December 31, 2010) on young managers. We always wish to be youthful The First Half of 2010 (Actual) The Second Half of 2010 (Actual and scheduled) February Announcement of financial results [Feb. 4] July Briefing session for becoming a member of franchise（Osaka）[Jul.23] and challenging like a venture company. Briefing session on the financial results（Tokyo) [Feb. 5] Announcement of financial results for Jasdaq net live [Mar. 5] the second quarter of 2010 [Aug.12] Franchise show 2010 [Mar. 9～11] August Briefing session on the financial results（Tokyo） [Aug.13] Briefing session for private investors March Briefing session for private investors（Tokyo,Nomura Securities） [Aug.24] （Osaka,Nomura Securities) [Mar. 12] Kazokutei keeps moving Ordinary general meeting of shareholders [Mar. 30] Nikkei IR Fair 2010 STOCK WORLD[Sept.3,Sept.4] September Briefing session for becoming a member of franchise April Briefing session for becoming a member of franchise（Osaka） [Apr.16] （Osaka）[Sept.10](Tokyo)[Sept.14] Briefing session for becoming a member of franchise October Briefing session for becoming a member of franchise forward as "a venture company May （Tokyo）[May 11]（Nara） [May 18] （Osaka） [Last days of Oct.] Announcement of financial results for the first quarter of 2010 [May 14] Announcement of financial results for the third quarter of 2010 June Briefing session for franchise owners（Tokyo） [Jun.15]（Osaka） [Jun.22] November Briefing session for becoming a member of franchise emerging in a traditional industry". Briefing session for becoming a member of franchise（Osaka） [Jun.25] （Osaka）（Tokyo） [Last days of Nov.]

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Interview Inui-san vs. Otei-chan

Otei-chan : President Inui, very nice to see you again. It’s been a long time. the average comparative sales of the existing shops in the category of President & CEO Mitsuhiro Inui The midterm account settlement for FY2010 was announced the other day. “Family Restaurants / Japanese Cuisine,” would be 95% as compared to PROFILE Could you tell us about it and progress on annual plans? previous year, and we put on an average of 3% on top of it through our Born and raised Kanagawa Ken Born April 19, 1953 President Inui : Good to see you again, Otei-chan! How have you been? sales expansion efforts. March 1977 graduated from Department of Liberal Arts, College of Arts and Sciences, the University of Tokyo In the past 6 months, there have been a lot of new developments at Kazokutei, Otei-chan : Sales expansion efforts? April 1977 entered Nissan Motor Co.,Ltd. June 1983 (as a company order of Nissan Motor) graduated from you know. Let me start with the results of operations. On August 12, 2010, we President Inui : Sales expansion efforts specifically means the, the Graduate School of Management at Northwestern University (Illinois, USA) (obtained MBA) announced midterm account settlement for FY2010 (the period January 1 improvement on QSC, introduction of new menus, and sales of “Happy Meal January 1989 entered KPMG Consulting, Inc. May 1992 entered Booz Allen Hamilton (Japan) Inc. through June 30, 2010). Revenues were 4,372 million Yen, with 53 million Yen Coupon”. You pay 5,000 Yen and get a voucher which is worth 6,000 Yen. June 1998 entered as Corporate Officer of Suruga Seiki Co.,Ltd. April 2002 entered Kappa Create Co.,Ltd of operating income and 57 million Yen of ordinary income. Interest-bearing This voucher was first introduced in June last year and can be used at all the April 2003 dispatched to Kazokutei Co., Ltd. as General Manager of Business Operation Reform liabilities were decreased by 264 million Yen to 1,814 million Yen, which shops of Kazokutei and TokuToku. June 2003 became Director of Kazokutei Co., Ltd. May 2005 became Representative Director & President of Tokutoku Co., Ltd. resulted in a substantial improvement in the financial strength of the Otei-chan : A “Happy Meal Coupon”, because you will be a happy person (left office in March 2006) January 2006 took office as Representative Director & President of Kazokutei Co., Ltd company. In terms of the number of shops, there are 118 directly managed getting a voucher for additional 1,000 yen! Am I right? shops and 107 franchise chain restaurants. The number of shops in total President Inui : Yes! You guessed right. Another project for this term is You can view a short message from President Inui turned out to be 225, which is an increase of 1 shop from the previous year. to generate profits by fully implementing cost management measures. Otei-chan and President Inui Talk on financial results (moving pictures) Otei-chan : The number of shops increased to 225!, Kazokutei started Looking into the market conditions, we started to see signs of recovery during on your mobile phone. The results of operations for the 1st half of FY2010 restaurant business in overseas countries last year. If I remember correctly, the first quarter, but the recovery slowed down during the second quarter. there were two shops each in Thailand and Singapore, totaling four shops Although no official figures are available showing the industry average, I (the period January 1 through June 30, 2010) when I saw you last. Did you launch more oversees shops since then? suspect it to be approximately 95% as compared to the previous year. and outlook for the 2nd half Otei-chan : The industry average at 95%! Two shops each were launched President Inui : In this environment, directly managed shops of Kazokutei posted 99% and those of TokuToku also posted 99%. Our franchise business In the Udon and Soba (wheat and buckwheat) noodle shop markets, where concentration has been progressing, both in China and Thailand turned out to be 91%. So, the results of directly managed shops were almost Kazokutei gained its momentum to expand franchise chain networks through the acquisition of “Toku Toku.” President Inui : You have a good memory. Otei-chan! We have opened on our plan but we had a hard time with our franchise business. As Kazokutei also has as many as 10 types of shop formats for directly managed shops and two more shops in Thailand and launched shops in China at last. Otei-chan : Why was it? franchise chain operations, there is virtually no restriction in site selection, etc. for opening new shops. Otei-chan : Talking about China, the Shanghai World Expo has been President Inui : That’s a good question, Otei-chan. According to our We have been expanding our overseas activities positively mainly in franchise chain. attracting astronomical number of visitors, hasn’t it? analysis, in present restaurant industry in Japan, shops which fully carried We opened a shop in February and another President Inui : That’s right. Actually, in Shanghai, we opened two shops out sales promotion measures or those which decreased prices in real terms in April successively in Shanghai, China as our full-scale Image character of Kazokutei during the first half of this year. Since China is a huge market, I am very much were able to improve sales. Our directly managed shops actually took such entry into China. e new opening of a shop in July Otei-chan looking forward to its future. policies in most cases. However, most of franchise shops could not afford and another in August this year in ailand. PROFILE Place of Birth Osaka Otei-chan : I know everyone has been working very hard. Could you to implement those policies, because many of them are financially ose activities clearly demonstrate our satisfactory Date of Birth A secret As of 2009 actively promoting its explain about existing shop operations and franchise business now? vulnerable individual or small-to-midsized franchisees. As a result, they overseas expansion during this accounting period . PR activities every day as Image Character of Kazokutei. President Inui : OK. At the beginning of this fiscal year,we assumed that were left behind in recovering sales.

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Interview Inui-san vs. Otei-chan

Otei-chan : Now I see. sales. We did not increase the number of shops during the first half but have failed to meet the target for the number of new shops, which President Inui : Large-sized corporate franchisees are franchisees of President Inui : We have already started to take necessary steps. In finalized to open one more shop during the second half. We are aiming proved to be one of the reasons for our unfulfilled sales and profit. existing major franchise chain businesses in food service or other July, we started sales promotion measures and sales of “Happy Meal to launch more shops in Pasar in the future. In addition, we established The reason is quite clear. Difficulties for such franchisees to get industry, who often run multiple shops. Our strategy was to create a Coupon” in franchise shops by providing our support. We also a partnership with a Japanese-style pub company, which was not public-banking loans still persist. Therefore, the opening of franchise development package for such franchisees and to start approaching introduced various measures including reinforced assistance and contemplated in our initial plan. We opened one shop during the first shops have been delayed after the establishment of franchise them during the first half. consulting services by supervisors on shop management. We started to half and are likely to launch 3 more shops during the second half. agreements with traditional, individual and small-to-midsize Otei-chan : A development package? find signs of recovery, with improvement in the comparative sales from Otei-chan : A tie-up business with a Japanese-style pub, isn’t it? We franchisees, despite their strong interest in opening their shops 91% to 96% in the month of July. can also expect new partnerships, too. Then, could you explain about quickly. However, the situation is improving through our suggestions Overview of new franchisee package Otei-chan : I am pleased to hear that. Performance of direct shops the second policy, or the development in domestic corporate to compress initial investments as well as financial advices to ▶ The target market is large-sized franchisee owners of existing major has been stable and that of franchise business is also improving franchisees? franchisees. The opening of 7 shops is already in sight during the franchise chain businesses including ones other than food service who are sharply. With regard to new business, you announced four policies in President Inui : All right. Let me begin with the development in second half of this year. uneasy or dissatisfied with the role of their current franchisers. ▶ The package is based on a win-win business model. Otei-chan : the beginning of this business year. Could you talk about new traditional, individual and small-to-midsize franchisees. Our plan for I see. (The common goal of increasing sales at shops is shared.) developments along with the four policies? developing traditional franchisees was to conclude 20 franchise President Inui : Because this problem has been recognized since ▶ Franchisee contracts guarantee franchise business expansion by operating agreements and open 12 shops during the first half. The results were much earlier, we have established a policy to increase the number of multiple shops in a certain region. (Regional management concept) 1. Expansion of “tie-up businesses” ▶ Our support for shop management such as supervisors’ continuous 21 new franchise agreements and 5 new shops. Although we have large-sized corporate franchisees and take up action plans. consulting services and system such as loaning active shop managers, etc. 2. Increase of domestic corporate franchisees achieved our target for the number of new franchise agreements, we Otei-chan : Large-sized corporate franchisees? 3. Overseas businesses 4. M&A ■ Mid-Term Business Plan(FC Management Platform) Former Strategies New Strategies President Inui : Ok. Then, let me start with the first strategy, namely, Applications(Business Formats)

“tie-up business”. Tie-up business is a form of partnership with which Directly Managed Soba and Japanese Teppan-Yaki FC Ramen? Sushi? we provide technical support and food supplies and our partners do Businesses Businesses Udon noodles Cuisine? Grill? Soba and business under their own trade names. They are different from our Domestic Management Udon noodles Financial Purchasing and Sales Brand Development Training of Business Support Logistics Promotion Management franchise business, in which our trade name like “TokuToku” is used. ● Defensive Directly Managed Operations Expansion of

● FC support Businesses Businesses We have tie-up business with NEXCO East Japan Group. In November Evolution Enlarging FC Management Platform (Base) ● Defensive Overseas Management last year, we opened a shop successfully in Hanyu parking area of ● Development of Financial Purchasing and Sales Brand Development Training of Business FC Human Support Logistics Promotion Management Operations Tohoku Expressway run by NEXCO East Japan Group. This year, we Resources and knowhow targeted first to sustain Hanyu shop successfully, and then to launch 3 FC ● Franchisee membership ● Consultation on funding ● Cooking technique ● Cost saving by ● Management of shop ● Proposals for sales ● Planning and implementation Businesses ● Pilot Shops ● Shop properties for launching business ● Customer service centralized purchasing operation by SV expansion and of comprehensive ● ● ● more shops during the first half of this year. As a matter of fact, the Business Forrmats Support for Shop management and logistics ● Checking of taste and promotion brand management Soba and ● Menus operating fund customer service ( Including registration of Udon noodles ● Support for utilization by itinerant Technical brand name and prevention Hanyu shop is keeping very popular and sustaining the same level of of subsidies etc. Instructors of Knowhow leakage) ● Aggressive Soba and Japanese Teppan-Yaki Ramen? Sushi? Growth Udon noodles Cuisine? Grill? * PASAR is a word made from abbreviations consisting of PA for parking area, SA for service area, and R for relaxation. PASAR is the development project promoted by NEXCO East Japan Applications(Business Formats) Retail Co., Ltd to make PA and SA more comfortable facilities for users.

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Interview Inui-san vs. Otei-chan

President Inui : We successfully developed the package during overseas business? President Inui : Why not India? Unlike other major Asian markets, believe we can achieve our overall profit plan. the first half. The package is a proposal for new franchisees. When President Inui : OK. Our plan was to make preparations and none of the major Japanese chain restaurants have entered India. We Otei-chan : With effective countermeasures steadily put into we judge a franchisee candidate to be highly reliable in terms of negotiations during the first half so that we can conclude 3 master would like to establish an industry standard for Japanese food service by practice, the number of shops both in Japan and abroad are sure to financial power and management capability, we sell him one of our franchisee agreements during the second half. Currently, we are entering India in an early stage. We do not intend to establish many increase more and more, I believe. As Kazokutei has been rapidly directly managed shops of Kazokutei. He will cash it out and train negotiating 6 agreements mainly in Asia. Among them included are directly-owned shops in India, but we are planning to develop multiple internationalized, I started to learn English. his employees there. Then he will promise to keep opening new businesses other than Udon and Soba (wheat and buckwheat) categories of food service, and open pilot shops through this joint President Inui : That’s good news! I realized it necessary to shops on his own at a rate of a shop per year or so. noodle shops. venture. Then, we will negotiate with Indian enterprises to conclude improve my English for overseas IR activities as well as negotiations Otei-chan : I understand. Otei-chan : Business categories other than Udon and Soba noodle. franchise agreements based on these pilot shops. with overseas partners. So, I have been intensively learning English President Inui : As a result, the franchisee will operate 5 to 6 I am thrilled to imagine what I can try in those shops. Otei-chan : I see. Sounds like a well-planned strategy. for 30 to 60 minutes every day since the end of the year before last. shops, dominating a certain market area. This is the concept of our President Inui : We are also planning to open shops in such Otei-chan : My English is still very limited, but I will be making package. During the second half, in addition to the shops opened Starting to establish a joint venture countries as Indonesia, Vietnam, and Russia, and are making their efforts to conduct this interview with you in English. by individual and small-to-midsize corporate franchisees, we are preparations, too. President Inui : That’s the spirit!. You also should try and in India planning to launch 7 shops by large-sized corporate franchisees. By Otei-chan : What a dynamic development you are making in interview me in the languages used in the counties where Kazokutei putting this strategy into practice we would like to catch up in the President Inui : We also announced in a recent news release that overseas business! I am puzzled which languages I should be shops are located. number of opening shops, which is currently behind the schedule. we started procedures for establishing a joint venture in India. learning. Then, could you talk about the fourth strategy, or M&A? Otei-chan : Yeah… Yes! Otei-chan : Next, could you tell us about the third policy, which is Otei-chan : India, too! This is related to the Franchise(FC) Management Platform, isn’t it? President Inui : You are right. Thank you for keeping the Franchise （Otei-chan and President Inui seem determined to start crash

■ Mid-term Business Plan: Number of shops 2010 - 2014 Management Platform in mind. The Franchise Management Platform courses to conduct their interviews in foreign languages

(Number of shops) is going to be an axis when we execute an M&A. We will develop someday…） 500 various business categories of Japanese cuisine ourselves or through Number of shops Period ending in December 2014 Shops in Japan 450 470 shops M&A to be applied to the platform. We are still working on M&A The end of interview Number of shops shops times 770 400 3.5 In Japan： 470 Overseas： 300 opportunities. 350 Otei-chan : Lastly, What is your prospect of achieving the target for Franchise : 300shops 300 Overseas shops this year? 300 shops 250 President Inui : Sales and cost management of direct shops are stable at present. For the first half, we have not achieved our target due 200 to some delay in franchise business and its development, but we have 150 already taken actions to rectify the situation. We will be able to take 100 Directly-Managed : 170shops advantage of new development and increase in large-sized corporate 50 franchisees, which we prepared during the first half to register 0 Period ended in December December December December December Period ending additional profit, and we are sure to secure master franchisee December 2008 2009 2010 2011 2012 2013 in December agreements in overseas countries during the second half. Therefore, I (Actual) (Actual) 2014

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Start of overseas expansion

Kazokutei’s accelerating overseas operations - The record of our overseas openings From Asia to the rest of the world. After opening two shops in Singapore and two shops in Thailand last year, we launched two shops in Shanghai, China in March and April this year In 2010, we launched four shops in two countries in the form of FC so far. to develop Udon and Soba noodle chain business on a full scale in China. In addition, we launched the third and fourth shops in Bangkok, Thailand in July and August. Furthermore, a joint venture was established with Abacus Venture Solutions Private Limited to promote chain Japanese restaurant business in India. Kazokutei No. 1 shop was opened On March 22, Kazokutei No. 2 shop was opened On April 21, This is how Kazokutei has been steadily moving forward in overseas business. in Shi men yi lu, Shanghai (China). 2010 in Yu yuan, Shanghai (China). 2010

Our overseas shop opening projection, starting this year

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

China (Target: 200 to 300 shops)

Kazokutei No. 3 shop was opened On July 15, Kazokutei No. 4 shop was opened On August 12, 2010年8月12日 in Central Plaza Rama3, Bangkok (Thailand). 2010 in PALADISE PARK, Bangkok (Thailand). 2010 Vietnam

Thailand (Target: 30 shops) Kazokutei

Basic policies for overseas business 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 : Reasonable 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. In order to promote chain Japanese food service business in India, a joint Scheduled in venture is to be established with Abacus Venture Solutions Private Limited September, 2010

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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.

Marketing JPY1,000,000 can share our philosophy. 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.

INFORMATION 11 12 INFORMATION 家族亭 P13-14

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 63 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 Kyousai format shops as a leader in our group. You can taste modern creative Soba dining spot where you soba dishes and sake. can enjoy tasty sake. 63 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" with great delicacy and care, This spring, Kazokutei Sanbouan shops were opened Kyou shun serve it to our customers Traditional orthodox upper In our restaurant, we show in Shanghai,China. grade soba restaurant that inherits performance of making real hand with our whole heart. Kazokutei's original taste. made soba noodles.

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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 commercial districts We serve authentic Soba can enjoy varieties of traditional udon. 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 “Hanyu Seimensho or Noodle Plant” was established in “PASAR Hanyu” Udon-dish restaurant where at Hanyu Service Area on Fu fu ya Middle-to-large sized road side shops Kyomen gion customers can enjoy the original Tohoku Expressway. designed like a traditional Medium-sized shops for shopping ※“Hanyu Seimensho” is our tie-up merchant house in Kyoto. centers and inside-building locations. daintiness of Udon. business with NEXCO (Mainly corporate franchisees) (Mainly corporate franchisees) East Japan Group.

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Shop list ( 91shops as of August 12, 2010) The newest information of shops is shown at our website.

Kazokutei

OSAKA NARA IBARAKI HOKKAIDO

Nokiba Tennoji shop Tennoji Mio 11F Naragakuen-mae shop Kintetsu Gakuen-mae station ParadiⅡ 4F Udonno Loc City Moriya shop Loc City Moriya SC 1F Sapporo Stellar Place shop JR Tower Sapporo Stellar Place 6F Nokiba Minoo shop Minoo Market Park Visola EAST2 Sapporo shop Marui Imaihonten Shinkan 10F Nokiba Kyobashi shop Kyobashi Coms Garden B2F Kashun-an Nissay Sapporo Building Nissay Sapporo Building B1F shop Umeda-chikagai shop Whity Umeda North mall1 HYOGO CHIBA Umeda sanbangai shop Hankyu Sanbangai Minami-kan B2F Nokiba Hanshin Nishinomiya shop Under the elevated railroad of Hanshin Nishinomiya Udonno Nagareyama Nagareyama Otakanomori S・EC3F Umeda Hankyu grand bldg. shop Hankyu Grand Bldg. 28F station (South side) Otakanomori shop TOKYO Umeda Navio shop HEP Navio 6F Udonno Mint Kobe shop Mint Kobe 7F Sin-Urayasu shop Atre Shin-Urayasu 2F Umeda Yodobashi shop Yodobashi Umeda Bldg. 8F Kashun-an Ebisu shop Atre Ebisu 6F Hanshin Amagasaki shop In the Amagasaki chuo shopping district, north of Tsudanuma shop Ito Yokado Tsudanuma store 7F Umeda Chayamachi shop Umedachayamachi Applause Tower B1F Kashun-an Musashi Murayama Aeon mall Musashi Murayama Myu 1F Hanshin Amagasaki station Minami Kashiwa shop Fields Minami Kashiwa mallⅠ4F shop Noda Hanshin shop Wiste 4F, in front of Hanshin Noda station Hankyu Sonoda shop Hankyu Sonoda station Sonoda Hankyu Plaza 2F Inage shop In Frespo Inage, north of Chiba sports ground Esaka shop Esaka Tokyu Bldg. B1F Genmyo-waraku Oimachi shop Atre Oimachi 6F Kawanishi Noseguchi shop East of Hankyu Kawanishi Noseguchi station concourse Senri-chuo shop In front of Osaka monorail Senri Chuo station Ogikubo Sanpoan Ogikubo Lumine 5F Sannomiya shop Under the elevated railway of Hankyu Sannomiya station Udonno Meguro shop Atre MeguroⅠ5F Hankyu Yamada shop Hankyu Dew Hankyu Yamada 2F (North side) SAITAMA Osaka Business Park shop OBP Cristal Tower B1F Kyosai Shiodome shop Shiodome City Center B1F Sanchika shop North of Sanchika subway Kaigan line concourse Tsurumi shop Aeon mall Tsurumi Leafa 4F Kyosyun Urawa shop Isetan Urawa store 7F Kyosai Meguro shop Atre MeguroⅡ 2F Shin-Kobe shop Shin-Kobe Oriental Park Avenue 3F Hirakata shop Foleo Hirakata 1F Ageo shop Haricots Verts Maruhiro 6F Kyosai Kinshicho shop Marui Kinshicho store7F Kobe Asahi Bldg. shop Kobe Asashi Bldg. 2F Moriguchi shop Keihan Department store 7F Shiki shop Marui Family Shiki 8F Ikebukuro shop Tobu Spice 12F Life Kobe-ekimae shop Life Kobe ekimae store 1F Nanba Walk shop Nanba walk Ichibangai Minami street Soka shop Marui Soka store 8F Shibuya shop Shibuya Tokyu Plaza B2F Kobe station chikagai shop JR Kobe station Duo Kobe Hamanote Nanba Minatomachi shop OCAT mall 5F Hibiya shop Hibiya Chanter B2F Maitamon shop Blumer Maitamon 2F Suminoe shop South of Subway Suminoe-koen station entrance Korakuen shop Metro M Korakuen 5F Nishijin Chuo shop Plenty Senmonten Nibankan 1F, Subway Nishijin Chuo station Sakai Higashi shop Sakai Takashimaya S.C.UPru B1F Kamata shop Kamata Tokyu Plaza 7F Aeon Kobe Kita shop Aeon mall Kobe Kita 1F Ibaraki shop 200m north of Fudo Suita-Takatsuki line Ibaraki Omori shop Atre Omori 5F Police station Tachikawa shop Granduo 6F Hankyu Ibaraki shop Hankyu Ibaraki-shi station Rosavia 2F Hachioji shop Hachioji Now 9F Takatsuki shop Takatsuki Matsuzakaya 5F AICHI Kashun-an Musashikoganei shop Ito Yokado Musashikoganei store 1F Hankyu Takatsuki shop Under the elevated railroad of Hankyu Takatsuki-shi station Jusco Moriyama shop Jusco Moriyama store 1F (Osaka side)

Hankyu Okamachi shop Under the elevated railroad of Hankyu Okamachi station (Toyonaka side) SHIZUOKA Ikeda shop West side of Hankyu Ikeda station concours Izumisano shop Shoppers' mall Izumisano 1F Hamamatsu May-one shop Hamamatsu Terminal Bldg. May-one 7F THAILAND Banpaku Oyuba shop Senri Banpaku-koen 11-11 Central Pinklao shop (Bang kok) Grass Thonglor shop (Bang kok) KANAGAWA New shop Central Plaza Rama3 shop (Bang kok) New shop PALADISE PARK shop (Bang kok) KYOTO Kashun-an Yokohama Bay quarter shop Yokohama Bay Quarter 5F Yokohama Sanpoan Sky Bldg. 10F Kyoto Nishioji shop Jusco Rakunan store 2F Udonno Lalaport Yokohama shop Lalaport Yokohama 3F Keihanna shop APiTA TOWN Keihanna CTower 1F CHINA Kohoku Center Kita shop North Port mall 5F New shop Shi men yi lu shop (Shanghai) Kanazawa Hakkei shop Daiei Kanazawa Hakkei store 3F New shop Yu yuan shop (Shanghai) Kawasaki shop Kawasaki Chikagai Azelea Minami 4bangai New shop Mizonokuchi Sanpoan Nocty Plaza1 9F * Please refer to “Start of overseas expansion” on Page 9 & 10 for further. details.

SHOP LIST 17 18 SHOP LIST 家族亭 P19-20

Shop list (132shops as of August 12, 2010) The newest information of shops is shown at our website.

TokuToku OSAKA KYOTO NARA IWATE TOCHIGI Izumisano Ichiba Nishi shop Ichiba Nishi 3-6-8, Izumisano-shi Fushimi-takeda shop Takedanakagawara-cho 1-4, Kashihara shop Hokkeji-cho82, Kashiwara-shi Kitakami shop Kurosawajiri 3-1-1, Kitakami-shi Fushimi-ku, Kyoto-shi Gosho shop Oaza Higashi Matsumoto 125, Gosho-shi Sakai Kurotuchi shop Kurotuchi-cho 2267-4, Sakai-shi Ustunomiya Ikegamicho Nakasato Tenpo 1F, Ikegami-cho 2-7, Kyoto Rakusei shop Ooenakayamacho 2-155, Saikyo-ku, Sanjo Soegawa shop Sanjo Soegawa-cho 5-28, Nara-shi shop Ustunomiya-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 Nekoya-cho 43, Fushimi-ku, Kyoto-shi Kitakatsuragi-gun MIYAGI Higashi Osaka Hishiya Amenity Santorini 2F, Hishiya Higashi Maizuru Nishi shop Koaza Ihara 140-1, Aza Tenri Bessho shop Bessho-cho 12-2, Tenri-shi shop 2-16-13, Higashi Osaka-shi Kamiyasuhisa, Maizuru-shi Natori Bypass shop Aza Yanagida 397-1, Masuda, Natori-shi Tawaramoto shop Touko 64-4, Tawaramoto-cho, Shiki-gun TOKYO Tanimachi shop Uchihon-machi 1-4-3, Chuo-ku, Osaka-shi Fujinomori shop Sujikaibashi 2-423, Fukakusa, Fushimi-ku, Kyoto-shi Foleo Town Tsutsui shop Foleo Town Tsutsui nai, Tsutsui-cho Minoo shop Nobre Villa 1F, Minoo 6-4-1, Minoo-shi 531-1, Yamato-koriyama-shi Nerima Heiwadai shop Urushibara Green Mansion, Heiwadai Kyoto-yawata shop Yawata Suihaku28, Yawata-shi Abiko Karita shop Kitano Mansion 1F, Karita 7-12-19, Toku Toku Life Life Gakuen-mae store 1F, 4-1-1, Nerima-ku Kisshoin shop Kisshoin-miyanonishi-cho 4-1, FUKUSHIMA Sumiyoshi-ku,Osaka-shi Gakuen-mae shop Nakatomigaoka3-3, Nara-shi Itabashi Nishidai shop Ishida Mansion, Nishidai 2-39-5, Itabashi-ku Minami-ku, Kyoto- shi Kashiharatokiwa shop Tokiwa-cho 367, Kashihara-shi Jujo shop Chiba Bldg, Kamijujo 3-22-8, Kitaku Korien shop Kansouzuka 3-6, Neyagawa-shi Toku Toku Rokujizo shop Itoyokado Rokujizo store B1F, Toku Toku Funehiki Park Funehikimachi Funehiki Harada 9, New shop Izumiya koryo-cho shop Abe 214-3,koryo-cho,kitakatsuragi-gun Kazokuan Juso shop Juso-honmachi 1-10-4, Yodogawa-ku, Rokujizo Naramachi 67-1, Uji-shi Kitakoiwa shop Kitakoiwa 2-32-11, Edogawa-ku Shop Tamura-shi Osaka-shi Hinotoyota shop Asahigaoka 1-22-40, Hino-shi Minamimori-machi shop Shin Nihon Tenma Bldg., Higashi Okachimachi shop Sky Nobre Okachimachi, Taito 3-44-6, Taito-ku Tenma 1-10-12, Kita-ku, Osaka-shi Koenji Minami shop Koenji Minami 4-7-3, Suginami-ku NIIGATA Kawachi Nagano shop Nishinoyama-cho 5-20 Kawachi Nagano-shi SHIGA Toku Toku Seimen Kotobuki-cho 3-23-2 Higashi Toku Toku Kumawatari 2035-23, Aga-machi, Kishidado shop osaka-shi Kusatsu shop Noji-cho 1069-1, Kusatsu-shi KANAGAWA AganogawaSA shop Higashi Kanbara-gun Zenya Makino shop Makinohoncho 1-1-98 Maikata-shi Omi-hachiman shop Horikami-cho 208-5, Omi-hachiman-shi Kita-cho shop Kita-cho 1112-1, Nagaoka-shi Kadoma shop Honmachi 43-43, kadoma-shi Mizuguchi shop Higashi Nazaka 288-1, Toku Toku Kohoku North Port mall 3F, Nakagawachyuo Mizuguchi-cho, Koga-shi Suminodo shop hamamachi 9-15, Daitou-shi Center Kita shop (SELF) 1-25-1, Tuzyki-ku, Yokohama-shi Ritto shop Ogaki 3-26-1, Ritto-shi Shiki shop Shiki-cho 3-25, Yao-shi Tsunashima shop Tsunashima Higashi 1-1-6, Kohoku-ku, Yokohama-shi CHIBA Senboku shop Obadera 813-2, Minami-ku, Sakai-shi FUKUI Tsurugamine shop Tsurugamine 2-2-1, Asahi-ku, Kashiwa Hananoi shop Hananoi 712-8, Kashiwa-shi Komyouike shop Combox Komyouike 1F, Murodo-cho Yokohama-shi ・ 824-36, Izumi-shi Tsuruga-honmachi shop Honmachi 1-12-19, Tsuruga-shi Yokohama Tsunashima With in short walking distance from Toku Toku Mallage Kashiwa 2F, Oyamadai 2-3, SHIMANE Wakasa Takahama shop Aza Kyogahana, Miyazaki35, shop the west gate of Tokyu-toyoko line, Mallage Kashiwa shop Kashiwa-shi Kazokuan Awaji shop In a shopping district west of Hankyu Takahama-cho, Oi-gun Tsunashima station Awaji station concourse Shinhamada shop Power City Hamada nai, Shufu-cho KOUCHI New shop Kazokuan Totsuka shop Totsuka-cho 16-1, Totsuka-ku, i-61-1, Hamada-shi Otei-chan Takami shop Inside the Takami Floral Town in Yokohama-shi Konohana-ku Kagamigawa Ohashi Kitashinden-cho 18-28, Kochi-shi SAITAMA Minami shop AICHI Kazokuan Tenjinbashi5 shop East of the Tenjinbashisuji-shopping Nangokuai shop Osone Otsu 872-3, Nangoku-shi Higashiurawa shop Higashiurawa 5-2-6, Midori-ku, Saitama-shi street crossroads Suzaki Oma shop Oma Higashi-machi 107, Suzaki-shi Tokai shop Kenmaku 9-1, Arao-machi, Tokai-shi NAGANO Asaka Hizaori shop Hizaori-cho 1-5-15, Asaka-shi HIROSHIMA Kameya Omiya shop Takahana-cho 1-112-2, Omiya-ku, Saitama-shi Kazokuan Noda shop Yoshino 3-1-39, Fukushima-ku, Osaka-shi Hidaka shop Iwameji 727-2, Hidaka-mura, Takaoka-gun Okazaki Midorigaoka shop Midorigaoka 3-8-6, Okazaki-shi Komoro shop Ko 16-13, Komoro-shi Kumagaya shop Kamino 647-1, Kumagaya-shi Hiroshima Gion shop Nishihara 1-10-3, Asa Minami-ku, Haruno shop Hirookashita 3418-1, Haruno-cho, Minami Anjo shop Kyone 25-2, Jojo-cho, Anjo-shi Hiroshima-shi Agawa-gun Okazaki Mutsumi shop Aza Ikeda Ko 38, Doi-machi, Okazaki-shi Kikyogahara shop Takaide 1486-750, Hirooka, Shiojiri-shi Kyomen Gion Aeon Lake Aeon Lake Town Kaze Tower3F Seto shop Seto 1-2-67, Kochi-shi Nishio shop Nagayoshi-machi 1-35, Nishio-shi Habasaka shop Habasaka-cho 2351-24, Iida-shi Town Koshigaya shop Nakamura Higashi-machi shop Higashi-machi 3-5-6, Nakamura-shi Okazaki Honjuku shop Aza Shiro-yashiki 21-1, Honjuku-cho, Iida-Kiribayashi shop Kiribayashi 1737-1, Iida-shi Kochi-kita shop Higashi Taisen-ji 120-1, Kochi-shi Okazaki-shi Matsumoto Namiyanagi Idegawa 3-10-15, Matsumoto-shi shop HYOGO EHIME Takasu shop Takasu997-1, Kochi-shi Okazaki Iga shop Iga-cho 7-71-1, Okazaki-shi Minami-wada shop Oaza Wada 4462, Matsumoto-shi SINGAPORE Kochi Asahi shop Higashikawahara 226, Motomiya-cho, Shin Gamagori shop Midori-machi 414-123, Gamagori-shi Tatsuno shop Yokka 52-6, Tatsuno-cho, Tatsuno-shi Imabari shop Ebisu-cho 2-4-1, Imabari-sh Toyoshina shop Minami-hodaka 578-1, Toyoshina, Kochi-shi Nagoya Chugo shop Chugo 5-54, Nakagawa-ku, Nagoya-shi TAMPINES shop Imabari Bypass shop Haccho Higashi 6-5-30, Imabari-shi Azumino-shi Gakuen Minami shop Autobacs Gakuen Minami store Parking Lot, Aki shop Tsukumo-cho 2553-1, Aki-shi Handa shop Yanabenakamachi 1-11-1, Handa-shi Liang Court shop Kozukadai 868-1038, Tarumi-ku, Kobe Matsuyama Kume shop Kume Kubota-machi 844-1, Matsuyama-shi New shop Kariya shop Tsukiji-cho 2-13-11,Kariya-shi Mukonosho shop Mukonosho 5-14-2, Amagasaki-shi Toyo shop Mitsuya Minami 6-19, Saijo-shi New shop Tokunoya Kamisotone 47-4, * Please refer to “Start of overseas expansion” Itami shop Funabara 2-3-12, Itami-shi Onishi shop Miyawakiko 16-1, Onishi-cho, Imabari-shi Toyota-Wakabayashi shop Wakabayashihigashimachi,Toyota-shi SHIZUOKA on Page 9 & 10 for further. details. Hyogo Yamazaki shop Shounou343-3, Yamazaki-cho, Shiso-shi Niihamagawa Higashi shop Go 2chome, Ko 367-3, Niihamagawa-shi TOKUSHIMA Shimoda shop Higashi Hongo 1-2-1, Shimoda-shi Harima-cho shop 2-824-1Kitahonjo Harima-cho Kako-gun Komatsushima shop Aza Akaishi Minami 1374-1, Koike-cho shop Koike-cho 1576-2, Higashi-ku, Iwaoka shop Iwaoka-cho Furusato 1489-29, Tano-cho, Komatsushima-shi MIE Hamamatsu-shi Nishi-ku, Kobe-shi Kokufu shop Sakurama Aza Todoro 31-1, Hamamatsu-hongo shop Hongo-cho 452, Minami-ku, Hanshin Fukae shop Fukaekitamachi 4-10-11, Kokufu-cho, Tokushima-shi Yokkaichi-shiikuwa shop Takada 796-1, Shiikuwa-cho, Yokkaichi-shi Hamamatsu-shi Higashinada-ku, Kobe-shi Anan shop Motomura 5-1, Nishijimi-cho, Anan-shi Iga Ueno shop Hirano Nishi-machi 79, Iga-shi Hamakita shop Shinbaru 2555-3, Hamakita-ku, Himeji Shikama shop Imazaike 1063, Shikama-ku, Himeji-shi Hokke Otani shop Shin-tsutsumi 9-1, Otani-cho, Tokushima-shi Nabari shop Sekoguchi 213-1, Nabari-shi Hamamatsu-shi

SHOP LIST 19 20 SHOP LIST 家族亭 P21-22

The general business situation Financial Highlights

The whole year * Due to a change in account settlement term, the 57th period was 9 months from April 1st to December 31st, 2007. The interim period The whole year Business progress and results (an expected score) However, mid term settlement term for period of 6 months was from April 1st to September 30th, 2007, period of 6 months.

During the first half of this year (the period January 1 through June 30, 2010), the In Japan, we planned to close 5 shops during the second half of this year, but we Japanese economy has been somewhat recovering thanks to a recovery in brought forward 2 of them and closed them during the first half to help improve ▶ Revenue (unit: million yen) ▶ Total asset (unit: million yen) production, slow increase in exports, and improvement in corporate profit. profitability of the Company promptly. In the development of business network, 10,000 9,250 9,622 8,000 7,676 7,574 8,955 7,248 7,266 However, apprehensive factors still persist such as mild deflationary influence we opened 4 new directly managed shops, while we closed 3 restaurants, one 6,810 6,859 6,592 8,000 and sluggish employment situation. for contract expiration and two for unprofitable performance, which brought the 6,784 6,000 In the food service industry, to which Kazokutei Co., Ltd. (hereafter referred to as number of directly managed shops to 118 in total. 6,000 4,574 4,471 the “Company”) belongs, recovery was clearly visible in the beginning of this In the FC business Division we have concluded 21 new franchise agreements, 4,361 4,372 4,000 4,000 year but it became rather slack in the second quarter. opening 5 new restaurants and closed 6 restaurants. All together, the total 2,000 In this environment, our direct operations were able to maintain nearly same number of restaurants in Japan was 219 including 118 directly owned shops and 2,000 store sales as compared to previous year through QSC improvement activities 101 franchise chain restaurants. 0 0 The 57th period The 58th period The 59th period The 60th The 57th period The 58th period The 59th period The 60th and sale promotion measures and to generate planned level of profits primarily In our overseas businesses, the joint venture with Want Want Group, a major 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, 2007, December31, 2008 December31, 2009 For the year ended December31, 2007, December31, 2008 December31, 2009 For the year ended due to thorough implementation of cost management. food company originated in Taiwan, launched the first shop in March and the the account closed June30, 2010 the account closed June30, 2010 in 9months in 9months On the other hand, sales of franchise chain restaurants remained below those for second shop in April in Shanghai, China. In Bangkok, Thailand, the third and the previous year, primarily due to a lack of financial capabilities of franchisees fourth shops were opened on July 15 and August 12 respectively. Several more (unit: million yen) (unit: million yen) to carry out sales promotion measures. That depressed sales and profits of the openings are scheduled by the end of this fiscal year. ▶ Ordinary Income ▶ Net asset 414 Company as a whole. This situation has been gradually improving since the latter As a result of all above business activities, revenue for the first half of this year 400 4,000 3,627 3,656 3,728 3,740 3,719 3,716 3,682 340 part of this quarter due to the start of sales promotion measures supported by was increased by 0.3% compared to the same period of previous year to 4.372 285 3,000 the Company as well as the reinforcement of Supervisors’ support on shop billion Yen. Operating income was decreased by 41.2% to 53 million Yen, and 300 276 management. ordinary income decreased by 38.6% to 57 million Yen, due to the 211 200 2,000 Major part of our franchisees has been individuals and small-to-midsize aforementioned reasons as well as prior investment in personnel and marketing 150 businesses in developing franchise chain shops in Japan. However, there have expenses to cope with new domestic and overseas businesses based on our 92 100 57 1,000 been some delays in openings new franchise shops after the conclusion of profit plan during the second half. franchise agreement, primarily because it has become more difficult for our Net loss after taxes for the term amounted to 7 million Yen, as compared to 6 0 0 The 57th period The 58th period The 59th period The 60th The 57th period The 58th period The 59th period The 60th franchisees to get public-banking loans. That led to failure in achieving the million Yen of net loss recorded in the same period of previous year, as there 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, 2007, December31, 2008 December31, 2009 For the year ended December31, 2007, December31, 2008 December31, 2009 For the year ended initially planned sales and profits in facilities, and equipment as well as in food were extraordinary losses in the disposal of fixed asset accompanying the above the account closed June30, 2010 the account closed June30, 2010 in 9months in 9months materials and other supplies. We have been constraining initial investments and mentioned closing down of the unprofitable shops. making financial advices to franchisee applicants, and the delay in launching ▶ Net Profit for this Period (unit: million yen) ▶ Net Profit per Share for this period (unit: yen) shops has been improving. In addition, we have been able to complete a system First Half of FY 2010 200 40 in developing large-sized corporate franchisees with sufficient capital, which we Total sales by each business department 167 4,372 million yen 136 were working on since the beginning of this year. Consequently several shops FC business 30 are likely to be opened jointly with them during the second half of this year. department 100 82 23.79 19.41 With regard to overseas business, we have been making efforts to conclude 12.6% 28 20 20 several new master franchise agreements mainly in Asian countries during the Kazokutei 0 11.83 second half. In addition, it was decided on this August 3, 2010 at our Board of business department △6 △7 10 △22 4.05 2.91 Directors meeting that a joint venture with Abacus Venture Solutions Private 66.5% 0 0 0 Toku Toku △100 0 Limited would be established in an attempt to enter the Indian market. We are directly-managed The 57th period The 58th period The 59th period The 60th The 57th period The 58th period The 59th period The 60th business department 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 planning to open new types of pilot shops utilizing this JV in major cities in India December31, 2007, December31, 2008 December31, 2009 For the year ended December31, 2007, December31, 2008 December31, 2009 For the year ended the account closed June30, 2010 the account closed June30, 2010 to promote franchisee recruitment. 20.9% in 9months in 9months

BUSINESS REPORT 21 22 FINANCIAL HIGHLIGHTS 家族亭 P23-24

Financial Statements

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

The interim of Previous period The interim of Previous period The interim of Previous period Current period Current period Current period Items from January1,2009 Items from January1,2009 Items from January1,2009 from January1,2010 to December 31,2009 from January1,2010 to December 31,2009 from January1,2010 to December 31,2009 to June 30,2010 to June 30,2010 to June 30,2010

Assets Liabilities Sales 4,372,561 8,955,961 Current Assets Current Liabilities Cost of Sales 3,735,984 7,608,919 Cash and Deposits 387,080 479,113 Accounts Payable 348,970 435,498 Gross profit on sales 636,577 1,347,042 Accounts Receivable 395,469 440,262 Short-term Loans Payable 210,000 120,000 Selling, General and Administration Expenses 583,090 1,086,949 Inventory 126,322 164,383 Long-term Loans Payable within a year 648,542 672,848 Operating profits (or Loss) 53,486 260,093 Others 250,148 257,063 Corporate Bond Mature in a year 20,000 20,000 Non-operating Income 43,104 98,281 Allowance for dobtful debts △5,925 △6,225 Accrued Amount Payable 295,456 361,914 Non-operating Expenses 39,517 81,926 Total Current Assets 1,153,098 1,334,598 Accrued Corporate Tax etc. 43,420 19,797 Ordinary Income (or Loss) 57,074 276,448 Fixed Assets Others 234,633 267,381 Extraordinary Income 300 375 Buildings 4,602,470 4,490,072 Total Current Liabilities 1,801,024 1,897,441 Extraordinary loss 31,798 159,383 Lands 970,735 930,435 Fixed Liabilities Income (or Loss) before Tax in the Current period（quarter） 25,576 117,439 Others 1,057,665 1,033,167 Long-term Loan Payable 802,804 931,870 Corporate Tax etc. 32,929 97,035 Accumulated Depreciation △3,817,374 △3,681,685 Corporate bond 60,000 70,000 Net Income (or Loss) in This period（quarter） △7,353 20,404

Total Tangible Fixed Assets 2,813,498 2,771,992 Others 246,172 243,624 (Note) Numbers less than 1,000yen are rounded off from the amount shown. Total Intangible Fixed Assets 234,259 347,170 Total Fixed Liabilities 1,108,977 1,245,496 Investments in Securities 40,130 42,722 Total Liabilities 2,910,001 3,142,938 Deposits on Lease and Guarantee Money 2,164,409 2,164,791 Shareholders・Equity Others 191,035 201,593 Ownership Capital I know how hard everyone Allowance for dobtful debts △3,813 △3,813 Capital Stock 1,465,784 1,465,784 Investments and Other Assets 2,391,764 2,405,297 Capital Surplus 1,425,506 1,425,506 has been working, Total Fixed Assets 5,439,523 5,524,461 Retained Earnings 1,242,185 1,274,147 despite this persistent slump Total Assets 6,592,621 6,859,059 Own Shares △13,915 △13,915 in the food service (Note) Numbers less than 1,000yen are rounded off from the amount shown. Total Ownership Capital 4,119,560 4,151,522 Total Valuation and Exchange etc. △467,690 △466,150 industry ! Share Warrant 30,750 30,750 The total of Assets Total Shareholders・Equity 3,682,619 3,716,121 The total of Assets was 6.59 billion yen, which was a decrease of 266 million yen Total Liabilities and from previous year end, mainly due to a decrease in cash, deposits, accounts Shareholders・Equity 6,592,621 6,859,059 receivable and goodwill. The total of Liabilities The total of Liabilities was 2.91 billion Yen, which was a decrease of 232 million Yen from the previous business yearend, mainly due to the decrease in accounts payable, long-term borrowing.

FINANCIAL STATEMENTS 23 24 FINANCIAL STATEMENTS 家族亭 P25-26

Stock situation Company Outline

Stock Situations (As of June 30, 2010) Company Outline (As of June 30, 2010) Shareholder memo

Distribution Status of Shareholders Distribution Status of Shareholders Total Number of Authorized shares 14,300,000 shares 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

5,000shares or more 10,000shares or more Securities companies Date of establishment April 5, 1951 Date to determine Total Number of shares Issued 7,056,200 shares (Excluding 25,300 Own Shares) 14 people 0.46% 11 people 0.36% 4 people 0.13% shareholdershopceive December 31 89,100shares 305,500shares 1,239shares 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 500shares or more 100,000shares or more Financial institutions Number of Shareholders 3,031 1 person 0.03% 119 people 3.93% 3 people 0.1% 9 people 0.29% 25,300shares shareholdershopceive the June 30 61,800shares 4,329,000shares 486,200shares Capital 1,465,784,000yen Principal Shareholders midterm dividend The goverment, Number of 313 ( Others including part-time and contract employees 1,930 ) The situations of the investment Pbulic organizations employees Regular Shareholders Meeting Every March Name of in our company Less Than100shares 50,000shares or more Other corporations 1 person 0.03% Major Shareholders 129 people 4.26% 2 people 0.07% 45 people 1.48% 1,000shares Administrator of the The number of holdings Voting right ratio 300shares 148,400shares 106,400shares Offices shareholder list Head office Fujimura-Yamato Seimei Bldg. 2F 4-2-14, Fushimimachi, Mitsubishi UFJ Trust and Banking Corporation Limited partnership for investment Chuo-ku,Osaka, Japan Administrative institution for CAS capital fund3 shares % 4,034,000 57.38 TEL +81-6-6227-6030(the main number) special account 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 68,400 0.97 Method of public announcements To be conducted electronically 100shares or more 1,000shares or more Individuals or others Corporations Nanto Bank, Ltd 2,970 people 97.99% 43,000 0.61 916 people 30.22% 1,837 people 60.61% abroad,etc. URL for public announcements http://www.kazokutei.co.jp 99,300shares 2,022,800shares 6,435,061shares 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, 2010)

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

STOCK INFORMATION 25 26 CORPORATE DATA