Toridoll Holdings Corporation Financial Results for the Fiscal Year Ended March 31, 2020 May 25, 2020
1 FY 2020 Financial Results Summary
2 Financial Highlights
■Both revenue and net profit have recorded the highest annual growth. Loss from the COVID-19 pandemic ・Sales: down ¥3,731 million ■Profit for the year has made a great improvement, ・Net Profit: down ¥1,615 million achieving ¥1940 million.
FY 2020 FY 2019 (In ¥million) % to % to Actual Actual YoY growth revenue revenue
Revenue 156,478 100.0% 145,022 100.0% 107.9%
Net profit 8,881 5.7% 7,270 5.0% 122.2%
Adjusted 18.5% 12,470 8.6% EBITDA 28,874 231.5%
Operating profit 4,367 2.8% 2,302 1.6% 189.7%
Profit for the 1.2% 221 0.2% year 1,941 879.5%
Note: Net profit = Revenue -Cost of sales -SG&A; Adjusted EBITDA = EBITDA +Impairment loss +Extraordinary expenses; EBITDA = Operating profit +Other operating expenses - Other operating income +Depreciation and amortization. 3 Store Openings and Closures in and Outside Japan
The Group has opened 199 (103 new) outlets, growing to 1,781 outlets worldwide.
End of Mar. End of Mar. Openings Closures 2019 2020 Japan 1,103 79 29 1,153 Marugame Seimen 817 35 7 845 Overseas 575 120 67 628 Total 1,678 199 96 1,781
Japan • The total number of stores have increased by 79, including 35 Marugame Seimen, 13 Café Business, 9 Niku no Yamaki, and 5 Tempura Makino locations. Overseas • The total number of stores have increased by 120, including 24 Wok to Walk, 21 Yunnan Noodle brands, 17 Pokéworks locations, as well as 16 new openings in Indonesia.
4 Net Profit
Actual versus budget comparison (In ¥million) 10,496 Asia -392, including Monster Curry -58, and USA -61 9,572
8,881
Loss from Sonoko +299, Zundoya +40, and the COVID- Banpaiya -34 19 pandemic
Forcast Marugame Butaya Café Domestic Domestic Overseas Other Actual After adding Seimen Tonichi Segment New and Subsidiaries Segment the loss from Segment Segment Existing COVID-19 5 Businesses Net Profit
Year-on-year comparison (In ¥million) Asia +247, and closures of WtW company-owned stores+174 10,496
8,881
7,270 Loss from Sonoko +493, Zundoya +429, Banpaiya +201 the COVID- 19 pandemic
Due to an increase in personnel and outsourcing costs.
March Marugame Butaya Café Domestic Domestic Overseas Other March After adding 2019 Seimen Tonichi Segment New and Subsidiaries Segment 2020 the loss from Segment Segment Existing COVID-19 6 Businesses Financial Highlights by Segment
Overview by segment Marugame Seimen: existing stores performed well up to February with increased segment profit ratio. Butaya Tonichi: struggled from the effect of the COBID-19 pandemic with profit ratio remaining at the level of the last year. Café Business: the business has expanded with growing sales and profit. Overseas Business : sales and profit increased despite the pandemic.
(In ¥million) FY 2020 FY 2019 Difference Segment Segment Segment Segment Segment Segment Revenue Revenue Revenue Profit Profit% Profit Profit% Profit Profit% Marugame Seimen 95,641 13,810 14.4% 89,944 12,438 13.8% 5,697 1,372 0.6% Café Business 3,555 28 0.8% 3,852 25 0.6% -297 3 0.1% Butaya Tonichi 5,432 51 0.9% 3,535 △ 50 - 1,897 101 - Overseas Business 32,899 3,598 10.9% 30,242 3,258 10.8% 2,657 340 0.2% Other 18,950 △ 15 - 17,448 △ 1,377 - 1,502 1,362 - Adjustments 0 △ 8,590 - 0 △ 7,023 - 0 △ 1,567 - Total 156,477 8,882 5.7% 145,021 7,271 5.0% 11,456 1,611 0.7%
7 Marugame Seimen Segment Profit Analysis
The segment profit ratio has reached 14.4%, up by 0.6% year-on-year despite an increase in advertising and marketing expenses. This was mainly due to the improved cost to sales ratio.
14.8% 14.4%
13.8%
Loss from the COVID- 19 pandemic
March COGS Personnel Utility Adverting and Other March After adding the loss 8 2019 Costs Costs Marketing Costs Costs 2020 from COVID-19 Marugame Seimen Japan: Guest Count and Avg. Sales per Guest
We have seen a gradual recovery trend in guest count, driven by successful marketing campaigns, including the launch of a new TV commercial, tie-ups and heavy media spend. We managed to attain a positive growth rate for ten months since May 2019 despite an increase in the consumption tax from 8% to 10%
Super Friday promotion After the launch of a new TV doubled guest count on the commercial on January 29, guest four Fridays during the period, count gradually increased, helped Guest Count attracted 2.9 million customers by increased advertising volume Average to visit our locations. and successful marketing initiatives. Spend per Guest
Last year, we distributed a huge number of coupons, and that’s why this year’s guest count is lower than the average spend per guest. *The results shown on the graph were adjusted to even out the effects of differences across days of the week.
2020 2021 Like-for-like JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR Sales Growth 97.6% 96.8% 97.4% 97.0% 107.3% 103.9% 104.7% 105.0% 111.9% 101.3% 99.3% 103.3% 106.7% 103.6% 84.6% 9 Marugame Seimen Promotion and Marketing Efforts
1. The success of a new TV commercial
Better brand recognition Changing customer demographics
・A new TV commercial has contributed to an ・Light users were up by 15% on the increase in brand recognition, with a year- same period last year. on-year rise of 5%. Note: on average, light users visit Marugame Seimen once a month, medium users two to three times, and heavy users at least four times.
Brand recognition ratio Increasing light users 91.9%
Light users
86.5% Medium users
Heavy users
2018 2019 2018 2019 * The data is taken from our research. 10 Marugame Seimen Promotion and Marketing Efforts
3. A strong focus on digital marketing
The Official App The Official Twitter account
・Marugame Seimen app has hit the 10M ・Our Twitter following has reached 700K in download mark, with 1860K two years. monthly active users on average. ・We will continue to strive to generate ・We will continue to try reaching more users. consumer engagement through owned media.
We will partner with YouTube to create engaging promotions The App Twitter for achieving particular targets. 10M 700K
6M
87K
2018 2020 2018 2020
11 Marugame Seimen Promotion and Marketing Efforts
Introducing a new express format, now operating several locations across central Tokyo.
The new format: Akihabara Store Now we have several stores of this format
・This location has been doing very well since ・We have renovated several stores in central its open in July 2019, with 1.3 times more Tokyo to adopt this format. All locations have sales than the average. been reporting high sales and profit. ・We made the kitchen smaller by cutting ・We will accumulate the knowledge and down the number of menu items by half. experience to further explore the possibilities This format can absorb the high costs of of this format. This format can be adopted to at rent and labor, while maintaining high least one hundred locations in and around profitability. Tokyo alone.
12 Other Domestic Brands
Overview of our other brands in Japan
Café Business Butaya Tonichi
・The brand has recorded solid growth with ・Guest count has largely increased average sales of 15,092K yen and segment following the introduction of a new menu. profit rate before allocation of costs of 14.2% At Ion Mall Hinode Store, guest count has (excluding stores opened this fiscal year.) increased by 41.6%. ・We are focusing on increasing brand presence and fan base through social media marketing. Ratio to sales by product
Old menu New menu
Karaage Set 15.5% Tonteki Set 10.2% Katsudon 11.6% Specialty Katsudon 9.5% Tonteki Set 10.8% Tonkatsu Set 7.8% Tonkatsu Set 10.2% Umatare Butadon 7.3% Katsu Curry 7.1% Ninnikumiso Butadon 7.1%
Ratio of low-priced donburi bowls increased. ⇒ As a result, turnover and guest count improved. 13 Our International brands
Our brands in Asia have continued to make great progress. We are now finalizing a new format to be deployed in the U.S. Our successful subsidiaries in Asia A new format for the U.S. market
・Our subsidiaries, including ones in Taiwan ・We are partnering with a local investment and Hong Kong, have reporting steady fund. performance. ・We have been working on establishing a ・Most franchisees, especially ones in new localized Marugame Seimen format to Indonesia and the Philippines, have been be deployed across the United States. doing well. ・A special focus on take away and delivery to maintain sales at this difficult time. The façade design。 New year gift voucher sold in Taiwan. Take away set meals available in Hong Kong
The interior.
14 Financial Indexes
Ratio of equity attributable to owners Net Leverage Ratio* of the parent
Minus the impact 2.42 of IFRS 16 35.2% Minus the impact of IFRS 16
FY 2016 FY 2017 FY 2018 FY 2919 FY 2020 FY 2016 FY 2017 FY 2018 FY 2919 FY 2020
*It is calculated as a company's interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA 15 Cash Flows
Changes in cash flows (In ¥million)
From operating activities Minus the impact of IFRS 16
From investing activities
FY 2016 FY 2017 FY 2018 FY 2919 FY 2020 FY 2020
16 TORIDOLL’s New Dividend Policy
Up to FY 2020 FY 2021 and thereafter
It is our policy to maintain stable dividends while improving the Group’s overall financial strength, so that we can make the investment necessary for the growth of the Group. Dividend payout ratio We now also set a target for the adjusted dividend payout ratio. Dividend payout ratio is Adjusted dividend payout ratio is calculated by dividing the calculated by dividing total amount of dividend by adjusted net income attributable to owners of the parent company* multiplied by the total amount of 100. dividend by net income *This is calculated as net income attributable to owners of the
Basic policy attributable to owners of parent company +depreciation and amortization +other the parent company operating expenses -other operating income + impairment multiplied by 100. loss+ extraordinary expenses. We aim towards a target dividend payout ratio of 20% or above, or target adjusted dividend payout ratio of 2% or above.
Annual dividend per share Annual dividend per share is expected to be ¥6.25. is ¥12.50. Each share of TORIDOLL common stock held by Record date is March 31, shareholders has been split into two shares as of the record date of April 1, 2020. 2020. Dividend Overview Record date is expected to be March 31, 2021.
17 Financial Forecast for FY 2021 & Three-Year Business Plan
18 We at TORIDOLL have been and will be striving to find new value and change ourselves for the better. 19 FY 2021 Revenue Outlook
Forecast for the 2021 fiscal year
(In ¥million)
H1 2021 H2 2021
Forecast % to Revenue H1 2020 % to Revenue YoY growth Revised Forecast % to Revenue H1 2020 % to Revenue YoY growth
Revenue 60,700 100.0% 80,017 100.0% △ 19,317 79,042 87,500 100.0% 76,461 100.0% 11,039
Net profit △ 4,300 -7.1% 5,840 7.3% △ 10,140 3,732 9,300 10.6% 3,041 4.0% 6,259
Operating profit △ 4,600 -7.6% 5,084 6.4% △ 9,684 1,605 4,800 5.5% △ 717 -0.9% 5,517
Profit before tax △ 5,400 -8.9% 4,100 5.1% △ 9,500 1,166 4,000 4.6% △ 1,263 -1.7% 5,263
Profit for the year △ 3,800 -6.3% 2,601 3.3% △ 6,401 103 3,000 3.4% △ 660 -0.9% 3,660 Profit attributable to owners of the parents △ 3,700 -6.1% 2,569 3.2% △ 6,269 41 3,000 3.4% △ 613 -0.8% 3,613
FY 2021 H1 2021 Forecast % to Revenue FY 2020 % to Revenue YoY growth ■ We are anticipating a loss of 4.3 billion yen Revenue 148,200 100.0% 156,478 100.0% △ 8,278 due to the COVID-19 pandemic. Net profit 5,000 3.4% 8,881 5.7% △ 3,881 Operating profit 200 0.1% 4,367 2.8% △ 4,167 ■H2 2021 Profit before tax △ 1,400 -0.9% 2,873 1.8% △ 4,237 Net profit is expected to be ¥9.3 billion (H1 + Profit for the year △ 800 -0.5% 1,941 1.2% △ 2,741 ¥ 6.3 billion) based on the possibility that the Profit attributable to economy could bounce back after the crisis. owners of the parents △ 700 -0.5% 1,956 1.3% △ 2,656
20 Store Opening Plan
Japan: we will focus on opening Marugame Seimen stores. Overseas: we continue to strategically open new stores with a strong focus on profitability.
End of End of Total Investment Openings Closures March March (in million yen) 202１ 2020
Japan 42 31 1,164 3,245 1,153 Marugame Seimen 30 5 870 1,775 845 Butaya Tonichi 1 2 54 40 55 Kona's Coffee 7 4 44 1,190 41 Banpaiya 0 1 44 0 45 Zundoya 3 0 49 80 48 Others 3 19 103 160 119 Overseas 114 58 684 2,120 628 Consolidated subsidiaries 48 18 342 2,120 312 Affiliated companies 40 35 220 215 Franchise companies 26 5 122 101 Total 156 89 1,848 5,365 1,781
21 The Impact of COVID-19
We will continue to further our efforts to address the crisis.
・We have implemented strict cleaning and disinfection regime, which has earned us a reputation as a safe place to eat. ・We have launched a new TV commercial to communicate our efforts to Nationwide prevent further infection and spread of COVID-19. This will helps us win consumer trust by further enhancing our reputation as a clean and hygienic restaurant. ・We will gradually reopen services as circumstances allow.
Locked-down areas We are implementing measures to cut costs and prevent cash draining out of the business. We are striving to make our business more attractive for a safe and sustainable return to service. To achieve this goal, we are focusing on
- store experience employee training and development in areas including marketing, promotion,
In store operation and hygiene practices. lockdown policy - lockdown Re-opened areas
International We have created employee manuals for stores returning to service while minimizing the risk and fear of contracting the infection. We are using digital marketing to communicate that health and safety of our customers are our top priority. We also share good practice examples of what worked in creating
wide post Group - wide successful take away and delivery services across the Group.
22 The Impact of COVID-19
We will continue to further our efforts to address the crisis.
・From April to May, most stores were opened only for take away and delivery. In some areas, stores have stayed open under restrictions such as allowing Asia fewer customers, and enforcing social distancing. Full reopening including sit-down dining is expected to start in June or later.
・The U.S. and most of the European countries have imposed national lockdown and all our restaurants were closed. Restrictions were gradually lifted
International since May, and stores started to reopen for business offering take-away and - store experience
U.S. delivery services only. In Full reopening including sit-down dining is expected to start between June and
Europeand the August.
・We secured an extra ¥30 billion short-term line of credit to ensure liquidity.
・We have drastically slashed unessential costs and investments, down by Headquarters ¥1250 million compared to last year.
・We have been negotiating rent reductions.
23 The Impact of COVID-19
An assessment of the economic conditions and the effects of COVID-19 on the business
■ Economic conditions ・The impact of the coronavirus pandemic are expected to continue until the end of the first half of the fiscal 2021 before a gradual recovery. ・We pay the utmost attention on the risks of the COVID-19 pandemic that may affect the Group’s revenue and profit. ・We calculated potential risks based on the information we have as of May 2020 and our own researches.
■The expected impact on sales
Q1 Q2 H2 FY 2021
Marugame Seimen △48% △15% 12% △10% Japan
Other brands △50% △13% 2% △17%
International △18% △10% △2% △8% 24 Future perspective
We strive to maintain and improve existing business. ＋ 1. Optimize the business portfolio. 2. A bigger focus on takeaway and reform
Structural Structural delivery. 3. Create a global platform.
25 Structural Reform
The three phases of the structural reform plan
FY 2021 FY 2022 FY 2023
April 2020 to March 2021 April 2021 to March 2022 April 2022 to March 2023
Phase II Phase I Create a platform Phase III Evaluate and for business Grow and expand improve financials expansion
Optimize the Application of Return On Achieve successful business portfolio. Investment (ROI) and sustainable Break into the food methodologies to the business expansion. delivery and business. takeaway market. Manage and enhance Create a global cash flows. platform. Invest in potential high- Invest more in growth ventures. human resources Continue to invest in development. human resources.
26 Structural Reform
We will introduce structural reform in FY 2021 to facilitate future growth.
A strategic structural reform Optimize the business portfolio. ¥10 billion Place a bigger focus on takeaway and delivery. Create a global platform. Invest more in human resources.
Profit for the year
27 Optimization of the Business Portfolio
We aim to evaluate the financial performance of our businesses and stores by focusing on ROI and revenue growth rate. We strive to maximize cash flows while balancing these two factors.
High We develop We continue Maintain new concepts our pursuit of healthy to be our next a flexible and cash flows main aggressive business. investment.
Improve We will keep profitability our focus on ⇒ May consider identifying High Good Revenue Growth Revenue Growth Rate streamlining opportunities return on financial operations if for further capital security Low appropriate. growth. Low Return On Investment High
We now use ROI as the most important KPI. 28 Breaking into the Food Delivery and Takeaway Market
At Marugame Seimen, our experienced chefs make fresh udon everyday on the premises. So, we are proud that Our udon is the finest and freshest in the world.
In-store ＋ Takeaway dining takeaway, delivery, and Eating out eating at home
We are enabling more customers to experience Marugame Seimen.
29 Marugame Seimen’s Takeaway Service
Increasing takeaway sales Renewed focus on takeaway
• We started offering takeaway udon since • Partnering with a major packaging April 30. The combination of udon and company, we have created special tempura has proved to be massively takeaway containers to keep the flavor and popular. As a result, the ratio of takeaway freshness of our food. to the total sales dramatically increased. • To expand our takeaway service, we are • We started offering udon and donburi for now taking orders via mobile order app takeaway at all store since May 27. O:der or by telephone. We have installed a takeaway counter at all stores. These have helped in capturing the growing demand for takeaway food. The ratio of takeaway to the total sales
Before After
Data was taken at 300 participating locations. 30 Breaking into the Food Delivery and Takeaway Market
We expect that the borders between eating out and eating at home will become increasingly fluid. We strive to develop various sales channels to cater for the needs for both eating at and out of home markets, while further enhancing our in-store experience.
We strive to increase presence across eating at and out of home markets Overview of the project Overview of the udon market in Japan ・Not just Marugame Seimen, but also 100% our other concepts and international The udon brands are striving to leverage restaurant market 90% opportunities within a wider variety of sales channels. These markets are becoming increasingly borderless, so we can Consumers
Takeaway New initiatives Digital sales The udon takeaway, and delivery such as a channels delivery, and cook-at- services cloud kitchen home markets
0% 31 Creating a Global Platform
We will build a global platform to accelerate the growth of our concepts worldwide.
Domestic concepts, mostly with A wide International concepts directly-owned stores. range of new concepts
Exchange accumulated skills, Exchange accumulated skills, Provide the support as know-how and experiences know-how and experiences outlined below
Support making franchise packages and share our global franchise development network.
Optimize procurement costs through our global supply chain.
Implement a shared SFL (Sales, Food, and Labor) management system across the globe.
Develop unique success models and share know-how on creating strong concepts.
TORIDOLL Global Platform 32 Creating a Global Platform
Overview of our global platform
Sharing marketing know-how Taking advantage of a supply chain ・We are creating an organized system for ・We have created a new supply chain to let all designing successful marketing campaigns our concepts taking advantage of TORIDOLL’s involving branding, digital marketing and in- purchasing power to reduce costs. store promotions as well as sharing know- ・We have succeeded in making standardized how and best practice in Japan with our formats by analyzing and updating the menu. concepts across the globe. ・We have created an updated cooking manual, which has resulted in better quality of food. Number of account followers
Followers have Monster Curry has started TORIDOLL has helped Pokéworks to improve increased by improving its digital marketing, the flavor and texture of their rice. 10% in the two now promoting the brand through months Instagram and Facebook. following the project.
MAR3月 4APR月 5月MAY 33 Three-Year Business Plan
Three-year consolidated business plan
(In ¥million) (In ¥million) Revenue Profit for the year Three-Year Business Plan
Three-year consolidated business plan
(In ¥million)
FY 2021 FY 2022 FY 2023
% to YoY % to % to YoY Amount Revenue Growth Amount Revenue YoY Growth Amount Revenue Growth
Revenue 148,200 100.0% 94.7% 187,950 100.0% 126.8% 207,600 100.0% 110.5%
Adjusted EBITDA 5,000 3.4% 56.3% 12,500 6.7% 250.0% 15,500 7.5% 124.0%
Operating profit 200 0.1% 4.6% 11,000 5.9% 5500.0% 14,000 6.7% 127.3% Profit before tax △ 1,400 -0.9% ー 10,400 5.5% ー 13,700 6.6% 131.7% Profit for the year △ 800 -0.5% ー 7,800 4.2% ー 10,100 4.9% 129.5% Profit attributable to owners of the parents △ 700 -0.5% ー 7,700 4.1% ー 10,080 4.9% 130.9%
Openings 156 234 303 Japan 42 82 110 Overseas 114 152 193 Total # of stores 1,848 2,060 2,340 Japan 1,164 1,238 1,339 Overseas 684 822 1,001
35 Our Multi-Brand Global Expansion Strategy
Toridoll Group strive to accelerate its international growth not only by leveraging its business platform, but also by sharing knowledge and know-how with our business partners ranging from company-owned stores, limited liability companies, joint ventures to franchise businesses.
All store sales ¥500 billion
Consolidated sales ¥350 billion
FY 2020 FY 2021 FY 2022 FY 2023 FY 2026
Please note: store sales refers to the total sales of all the Group’s stores including those in the countries or of the brands not included in the consolidated financial statements. 36 Our Vision for the Future
The expected number of stores and sales at the end of FY 2025.
Europe & Middle East North America 500 stores 1,000 stores ¥35 billion ¥100 billion
Japan 2,300 stores ¥225 billion
Central & South America Asia 200 stores 2,000 stores ¥15 billion ¥125 billion
29 Reference 1. Financial Results for FY 2020
38 Summary of Profit and Loss
Profit and loss statement
(In ¥million)
FY 2020 FY 2019 % to % to Actual to % to Actual YoY Growth Budget Actual Revenue Revenue Budget Revenue
Revenue 156,478 100.0% 107.9% 159,060 100.0% 98.4% 145,022 100.0%
Business profit 8,881 5.7% 122.2% 9,572 6.0% 92.8% 7,270 5.0%
EBITDA 25,009 16.0% 286.2% - - - 8,738 6.0%
Adjusted EBITDA 28,874 18.5% 231.5% 29,640 18.6% 97.4% 12,470 8.6%
Operating profit 4,367 2.8% 189.7% 6,689 4.2% 65.3% 2,302 1.6%
Profit before tax 2,837 1.8% 212.2% 5,266 3.3% 53.9% 1,337 0.9%
Profit for the period 1,941 1.2% 879.5% 2,704 1.7% 71.8% 221 0.2% Profit attributable to owners of the parents 1,956 1.3% 733.2% 2,610 1.6% 74.9% 267 0.2%
Note: Net profit = Revenue -Cost of sales -SG&A Adjusted EBITDA = EBITDA +Impairment loss +Extraordinary expenses EBITDA = Operating profit +Other operating expenses - Other operating income +Depreciation and amortization.
39 Financial Resutls by Segment
Detailed results by segment (In ¥million) FY 2020 FY 2019 Marugame % to YoY % to Actual to % to Actual Budget Actual Seimen Revenue Growth Revenue Budget Revenue
Revenue 95,641 100.0% 106.3% 97,880 100.0% 97.7% 89,944 100.0% Segment profit 13,810 14.4% 111.0% 14,408 14.7% 95.8% 12,438 13.8% % to YoY % to Actual to % to Café Business Actual Budget Actual Revenue Growth Revenue Budget Revenue Revenue 5,432 100.0% 153.7% 5,825 100.0% 93.3% 3,535 100.0% Segment profit 51 0.9% - 153 2.6% 33.3% △ 50 - % to YoY % to Actual to % to Butaya Tonichi Actual Budget Actual Revenue Growth Revenue Budget Revenue Revenue 3,555 100.0% 92.3% 3,865 100.0% 92.0% 3,852 100.0% Segment profit 28 0.8% 112.0% 73 1.9% 38.4% 25 0.6% Overseas % to YoY % to Actual to % to Actual Budget Actual Business Revenue Growth Revenue Budget Revenue Revenue 32,899 100.0% 108.8% 33,294 100.0% 98.8% 30,242 100.0% Segment profit 3,598 10.9% 110.4% 4,261 12.8% 84.4% 3,258 10.8%
40 Revenue and Profit Analysis by Segment
A detailed analysis of last year's financial performance by segment
New stores helped its sales increase by 1.6%. Like-for-like sales growth was Revenue also strong, up by 4.0%. As a result, revenue has seen a 6.3% annual average increase
Seimen Overall profit ratio improved by 0.6% due to a decline in cost to sales ratio Segment Profit Marugame by 1.1%, even with an increase in advertising expense ration by 0.5%.
Sales has seen an 1.5 times increase as the number of stores increased by Revenue 13.
Café Segment profit has been steady despite a slight drop from the introduction
Business Segment Profit of higher consumption tax rate, maintaining 8% before allocation excluding new locations opened in 2019. Sales have seen a 7.7% decrease due to the declining like-for-like sales, Revenue down by 10.3 %, despite the positive results generated by stores opened in FY2019. New stores including locations opened in FY2019 generated a loss of ¥42 Butaya Butaya Tonichi Segment Profit million. Despite a severe impact from the coronavirus, segment profit ratio improved by 0.2%. Asia up ¥1530 million; the U.S. (Marugame Seimen) up ¥160 million; Revenue Monster Curry up ¥960 million .
Asia up ¥250 million; Wok to Walk up ¥170 million due to the closure of Business Overseas Segment Profit company-owned stores. 41 Overview of Financial Performance
Overview of financial performance (In ¥million) FY 2020 At the end of FY 2019 Actual Ratio Actual Ratio Difference Total assets 209,978 100.0% 117,979 100.0% 91,999 Current assets 32,536 15.5% 21,752 18.4% 10,784 Non-current assets 177,443 84.5% 96,227 81.6% 81,216 Total liabilities and equity 209,978 100.0% 117,979 100.0% 91,999 Liabilities 163,414 77.8% 82,889 70.3% 80,525 (Including interest-bearing liabilities) 141,735 67.5% 62,674 53.1% 79,061 Current liabilities 42,694 20.3% 25,953 22.0% 16,741 Non-current liabilities 120,719 57.5% 56,937 48.3% 63,782 Total equity 46,565 22.2% 35,090 29.7% 11,475 Equity attributable to owners of the parent 45,427 21.6% 33,979 28.8% 11,448
Assets: Right-of-use assets increased by ¥ 78,773 million due to the adoption of IFRS16.
Liabilities: Lease obligations increased by ¥ 80,786 million due to the adoption of IFRS16.
42 Overview of Cash Flows
Overview of cash flows (In ¥million)
FY 2020 FY 2019 YoY Growth
Cash flows from operating 29,593 8,416 21,177 activities Cash flows from investing △ 12,986 △ 14,210 1,224 activities Cash flows from financing △ 5,190 5,534 △ 10,724 activities Cash and cash equivalents at 25,801 14,398 11,403 the end of the period
Cash flows from operating activities Depreciation and amortization increased, including an increase of ¥15,089 million yen due to the adaptation of IFRS 16. The amount of corporate income tax paid in the period and other liabilities also increased. Cash flows from investing activities Increased due partly to acquisitions of stocks of Pokéworks in FY2019. Cash flows from financing activities Decreased by ¥14,570 million due to the payment of lease obligations under IFRS 16 despite proceeds from borrowings. 43 Impact of the Adaptation of IFRS 16
Changes in accounting policies
Balance Sheet Profit and Loss
Impact of IFRS 16 on adjusted EBITDA Right-of-use Lease (In ¥million) Assets Obligations 2,424 28,874 13,454 526 Liabilities
Assets
Net Assets
12,470 IFRS 16 leases requires lessees to recognize assets and liabilities for most leases. Comprised of: Effects of the adaptation of IFRS 16 Marugame Seimen: up 296 Assets up ¥78,723 million Butaya Tonichi: up 73 Liabilities up ¥80,786million yen Café Business: up 60 Overseas Business: up 36 Net Assets down ¥1,873 million yen Excluding the effects of IFRS16, the ratio of Rent Net Increase/Decrease equity attributable to owners of the Company Interest Expenses is 35.2% 2019.03 2020.03 44 Reference 2. Financial Forecast for FY 2021 & Three-Year Business Plan
45 Financial Forecast for FY 2021 by Segment
Financial forecast for FY 2021 by segment (In ¥million) H1 2021 H1 2021 Marugame % to YoY % to YoY % to YoY % to YoY Seimen Budget Budget Revenue Growth Revenue Growth Revenue Growth Revenue Growth Revenue 34,600 100.0% 49,183 100.0% △ 14,583 53,400 100.0% 46,458 100.0% 6,942 Segment Profit 130 0.4% 7,832 15.9% △ 7,702 10,900 20.4% 5,978 12.9% 4,922
H1 2021 % to YoY % to YoY Budget Revenue Growth Revenue Growth Revenue 88,000 100.0% 95,641 100.0% △ 7,641 Segment Profit 11,030 12.5% 13,810 14.4% △ 2,780
H1 2021 H1 2021 Overseas % to YoY % to YoY % to YoY % to YoY Business Budget Budget Revenue Growth Revenue Growth Revenue Growth Revenue Growth Revenue 15,400 100.0% 16,720 100.0% △ 1,320 19,800 100.0% 16,179 100.0% 3,621 Segment Profit 420 2.7% 2,352 14.1% △ 1,932 1,550 7.8% 1,246 7.7% 304
H1 2021 % to YoY % to YoY Budget Revenue Growth Revenue Growth Revenue 35,200 100.0% 32,899 100.0% 2,301 Segment Profit 1,970 5.6% 3,598 10.9% △ 1,628
46 Three-Year Business Plan
Three-year business plan for our main segments
(In ¥million) FY 2021 FY 2022 FY 2023 % to YoY % to YoY % to YoY Amount Amount Amount Revenue Growth Revenue Growth Revenue Growth Marugame Seimen 88,000 100.0% 92.0% 111,700 100.0% 126.9% 119,900 100.0% 107.3% Segment Profit 11,030 12.5% 79.9% 16,400 14.7% 148.7% 18,000 15.0% 109.8%
FY 2021 FY 2022 FY 2023 % to YoY % to YoY % to YoY Amount Amount Amount Revenue Growth Revenue Growth Revenue Growth Overseas Business 35,200 100.0% 107.0% 44,800 100.0% 127.3% 53,340 100.0% 119.1% Segment Profit 1,970 5.6% 54.8% 3,900 8.7% 198.0% 5,100 9.6% 130.8%
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