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Interim Report of the 60Th Accounting Period January 1, 2010 - June 30, 2010 家族亭 P1-2

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Interim Report of the 60Th Accounting Period January 1, 2010 - June 30, 2010 家族亭 P1-2 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, Osaka 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.] 2 TOPICS 家族亭 P3-4 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.
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