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The 60Th Period Annual Report January 1, 2010 - December 31, 2010 家族亭 P1-2

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The 60Th Period Annual Report January 1, 2010 - December 31, 2010 家族亭 P1-2 家族亭表 1- 表 4 SINGAPORE THAILAND JAPAN INDIA CHINA Kazokutei Co., LTD Wakita-Fujimura-Midosuji Bldg. 2F 4-2-14, Fushimimachi, Chuo-ku, Osaka Japan TEL +81-6-6227-6030 http://www.kazokutei.co.jp/en The 60th period Annual Report January 1, 2010 - December 31, 2010 家族亭 P1-2 Kazokutei makes everyone in the world smile. Topics of 2010 Securing prot 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 March,April,July,August, TOPIC 1 September,and October,2010 TOPIC 2 Tokutoku's handmade udon We opened two shops in China, four shops Establishment of a joint venture in India bring smiles to everyone. in Thailand, and one shop in Singapore We opened two shops in Shanghai, China and four shops in In order to promote franchise chain restaurants specializing in Bangkok, Thailand. With one more shop in Singapore, Japanese cuisine in India, a joint venture was established in overseas shops totaled 11. India with Abacus Corporation in January 2011. TOPIC 3 TOPIC 4 Another joint venture was established between A master franchise agreement was concluded KPN Corporation, one of the conglomerates with Somboon Corporation, in Thailand, Kinrei Corporation and Kazokutei. another Thai conglomerate. Udon and soba noodle industry is very traditional. Kazokutei also commemorates In partnership with Kinrei Corporation, we introduced A master franchise agreement was made to promote The Show Kagonoya, a Japanese restaurant serving full menus including Kitchen, a self-developed new style Japanese restaurant where the 64th anniversary this year. However, we are not an old-fashioned company. Shabushabu, into the Thai market. customers enjoy meals while looking at cooking performance. We commenced management reform 8 years ago focusing on young managers. We always wish to be youthful Investor Relations Annual Schedule (January 1, 2011 - December 31, 2011) and challenging like a venture company. The First Half of 2011 (scheduled) The Second Half of 2011 (scheduled) Announcement of financial results [Feb. 9] Announcement of financial results for February Kazokutei keeps moving Briefing session on the financial results (Tokyo) [Feb. 14] August the second quarter of 2011 Nikkei IR Fair 2011 STOCK WORLD [Aug. 26～27] Franchise show 2011 [Mar. 8～10] March Ordinary general meeting of shareholders [Mar. 29] forward as "a venture company Announcement of financial results November for the third quarter of 2011 emerging in a traditional industry"industry". May Announcement of financial results for the first quarter of 2011 1 TOPICS 2 8月 11月 家族亭 P3-4 Interview Inui-san vs. Otei-chan Otei-chan : Hello, everyone! How have you been? I’m Otei, the image Expansion of large-scale corporate franchisees in Japan President & CEO Mitsuhiro Inui character for Kazokutei. My fans call me Otei-chan. Very nice to meet 1. PROFILE Reinforce FC Management Platform you all! 2. Born and raised Kanagawa Ken Overseas businesses Born April 19, 1953 President Inui : Hello, Otei-chan! Everybody knows you by now, 3. March 1977 graduated from Department of Liberal Arts, College Financial support from The Direct of Arts and Sciences, the University of Tokyo Otei-chan. 4. April 1977 entered Nissan Motor Co.,Ltd. Business in Japan June 1983 (as a company order of Nissan Motor) graduated from Otei-chan : Yes, Thank you, but… Because Kazokutei has become an the Graduate School of Management at Northwestern University (Illinois, USA) (obtained MBA) international company by opening shops overseas including China, January 1989 entered KPMG Consulting, Inc. May 1992 entered Booz Allen Hamilton (Japan) Inc. Thailand, and Singapore in such a short time that, I wondered if people number of franchise chain restaurants in Japan in preparation for future June 1998 entered as Corporate Officer of Suruga Seiki Co.,Ltd. April 2002 entered Kappa Create Co.,Ltd abroad got to know me already. business expansion, and to develop overseas business and to reinforce April 2003 dispatched to Kazokutei Co., Ltd. as General Manager of Business Operation Reform President Inui : I see. Your aggresive personality is perfect to be our franchise management platform as an axis of our mid- term program. June 2003 became Director of Kazokutei Co., Ltd. May 2005 became Representative Director & President of Tokutoku Co., Ltd. image character. You really are dependable! Otei-chan : I see. How did it go? President Inui. (left office in March 2006) January 2006 took office as Representative Director & President of Kazokutei Co., Ltd Otei-chan : Very kind of you, President Inui. Now let us get down to our President Inui : Regarding the recovery in existing business, the same interview! Thank you for your valuable time, President Inui. store sales of the Direct Business Division achieved 100.2% compared to You can view a short message from President Inui President Inui : I thank you. the previous year on a full year basis. But recovery of franchise store sales Otei-chan and President Inui Talk (moving pictures) Otei-chan : First of all, could you explain about the settlement of started slow, recording around 90% compared to the previous year in the on your mobile phone. TThehe result and progress report for FY2010 accounts for FY2010 announced the other day? first half, and gradually improved during the second half as the result of our (the period January 1 through December 31, 2010) President Inui : OK. Recently Kazokutei announced the settlement of support for the franchisees. As for December, the month ended at 98.2% as and strategies for FY2011 on financial accounts for FY2010. Revenues were 9,194 million Yen, with 342 million compared to that in the previous year. Yen of operating profits and 350 million Yen of ordinary profits. Our net Otei-chan : Every one of the franchisers worked together with franchisees. (the period January 1 through December 31, 2011) results profit was 122million Yen for the year. We achieved increases both in So their results improved during the second half. revenues and in profit. Operating profits, in particular, increased 31.6% President Inui : That’s right. The strong franchise management system at In the Udon and Soba (wheat and buckwheat) noodle shop markets, where concentration has been progressing, compared with the previous year, while revenues increased only 2.7% Kazokutei made it possible. Kazokutei gained its momentum to expand franchise chain networks through the acquisition of “Toku Toku.” during the period. That means that everybody in our company has tried Otei-chan : It sure is dependable, isn’t it? As Kazokutei also has as many as 10 types of shop formats for directly managed shops and franchise chain operations, very hard to generate profits. President Inui : Definitely. In addition, for future expansion, we have there is virtually no restriction in site selection, etc. for opening new shops. We have been expanding our Otei-chan : Both revenues and profits have grown. That’s great! I also opened 21 farancise-shops including technical tie-up shops. We have added overseas activities positively mainly in franchise chain. We opened a shop in February and another in April successively in Shanghai, China as our full-scale entry worked hard together with other staffs to sell “Happy Meal Coupon,” (You 4 new shops and 6 contracts with large-scale corporate franchisees who only pay 5,000 Yen and get 6,000 Yen’s worth). I’m very pleased with the have financial strength and could become core members of our franchise into China. Following up the previous year, we opened four Image character of Kazokutei new shops in ailand, including one in July, another in August, Otei-chan good results. As I am always in our shops, I don't know well, but what have network in the future. and two more in September, totaling 6 shops in this country. PROFILE you done as overall strategies during the period? Otei-chan : Such large-scale corporate franchisees will establish more In addition, one more shop was opened in Singapore in Place of Birth Osaka President Inui : The basic strategy from the beginning of the previous and more franchisees restaurants, won’t they? Date of Birth A secret October (totaling 3 shops in Singapore)... As of 2009 actively promoting its business year, first of all, was to improve existing businesses both at directly PR activities every day Kazokutei has been expanding its business steadily. as Image Character of Kazokutei. owned shops and franchise chain restaurants, and then to increase the 3 TOP MESSAGE TOP MESSAGE 4 家族亭 P5-6 Interview Inui-san vs. Otei-chan President Inui : Yes, that’s true. You’ve studied well. In the past, most of Singapore, Thailand, and China. Kazokutei will be supporting Kagonoya to to SOBA(buckwheat noodle) and UDON(wheat noodle)? forms of restaurants than SOBA and UDON noodle, such as Ramen, Sushi, our franchisees were individual proprietors but they now have difficulty in be developed in Thailand. The Show Kitchen must be a fun, as we can enjoy President Inui : That’s a very good question. Kazokutei can do it, Japanese cuisines, and Teppanyaki, etc. like as their applications. opening shops, mainly due to stricter loan terms and conditions imposed by watching chef’s cooking performance in front of us. Since many Japanese because we have a solid franchise management platform. Otei-chan : It sounds like personal computers! People’s Finance Corporation and banks. So, we have been studying cuisines foreigners are fond of are available, they would frequently visit the Otei-chan : A franchise management platform… Yes, I have heard President Inui : You are right! The concept is same as PC. Franchise large-scale corporate owners with financial strength and have developed a restaurants.
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