YOSHINOYA HOLDINGS CO., LTD.

CORPORATE PROFILE 2018

http://www.yoshinoya-holdings.com

010_0881332263006.indd 1-2 2018/06/25 11:14:19 A year of sowing the seeds of growth and making them sprout. Our journey in creating our own future.

2017 was a milestone year for our group that marked the 10th anniversary since becoming a holding company. In these 10 years, we have worked to expand our areas for store openings in and overseas and improve profit while increasing sales. At the same time, we embarked on shifting to a business Companies only exist to serve the needs of society and to contribute to the model founded upon a fresh vision focused on future growth, greater happiness of mankind. The Yoshinoya Holdings Group is an enterprise specifically, the formulation and launch in 2015 of our long-term that spans national and regional borders, treating people from every nation management vision, “NEW BEGINNINGS 2025.” as its customers. Our customers and employees share the same human spirit Currently, our group is promoting a 3-year medium-term and come from every part of society. management plan as the first step for “NEW BEGINNINGS We serve people, we value people, and we want to be a valued part of 2025.” The 3-year plan is an experimental phase in which we people’s lives. address new value creation aimed at “redefining the We strive to provide our customers with products that deliver excellent value for the money. industry” by 2025. Accordingly, fiscal 2017, which marked the We endeavor to foster a spirit of enthusiasm and fulfillment in our second year of the plan, was dedicated to sowing the seeds of employees. growth through various initiatives. We aspire to operate in harmony with society and to protect the global Fiscal 2018 will be focused on wrapping up the experimental environment. phase and promoting the sprouting of the seeds sowed as a Our slogan “For the People” sums up these aspirations of the Yoshinoya foothold to achieving “NEW BEGINNINGS 2025.” Please look Holdings Group. forward to the Yoshinoya Holdings Group as we open For the people… possibilities and create our own future.

President Yasutaka Kawamura

Long-term vision of Yoshinoya Holdings

Three joint creations to achieve vision goals  Jointly create values with customers instead of unilaterally attempting to create them Jointly create new business models and services by leveraging connections beyond boundaries between divisions, business corporations and national borders FOR THE PEOPLE Jointly create new values going beyond hedges between industries and businesses 1 2

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Others Gathering diverse strengths for 1.8% Yoshinoya Yoshinoya Consolidated financial highlights for the fiscal year ended February 28, 2018 Overseas 9.8% 50.4% Overseas 15.3% 62.5% (rounded down to the nearest hundred million yen) sure promise of growth Fiscal year ended Fiscal year ended Fiscal year ended Financial results data (billion yen) February 28, 2017 February 28, 2018 February 28, 2019 Kyotaru (actual) (actual) (plan) The Yoshinoya Holdings Group is made up of diverse Kyotaru Net sales 188.6 198.5 211.0 restaurant companies with their own unique Net sales 3.9% Operating income cultures. Polishing our brand value which utilizes 13.3% Operating income 1.8 4.0 4.1 for the fiscal year ended February 28, 2018 for the fiscal year ended February 28, 2018 Ordinary income 2.7 4.6 4.7 the originality of the various Group companies, we Arcmeal Net income attributable to owners of the parent 1.2 1.4 1.7 demonstrate a combined strength like no other by 2.6% Cash flow (billion yen) leveraging Group synergy. Arcmeal Cash flows from operating activities 10.1 9.3 — 198.5 Hanamaru 4.0 11.2% billion yen billion yen Cash flows from investing activities (6.5) (8.3) — 15.7% Cash flows from financing activities 1.0 (4.2) — Per share data (yen)

Basic earnings per share 19.35 23.11 26.34 Hanamaru *Consolidated net sales (total) include adjustments of (2.0) billion yen, and consolidated 13.5% Others (6) million yen segment profit (total) includes adjustments of (4.0) billion yen.

Yoshinoya Kyotaru A long-standing beef bowl chain celebrating Providing that fulfills diverse the 120th anniversary of its founding needs with all our hearts. Yoshinoya, known for its beef bowl in Kyotaru manages online stores in its external sales Japan, is a leading Japanese chain business, aside from the Kamigata sushi (attractive founded in 1899. year-on-year year-on-year pressed sushi made in the Kansai region since the year-on-year year-on-year Net sales Operating income Net sales Operating income 101.0 billion yen +3.9% 5.0 billion yen +32.1% Heian period) shop “Kyotaru” and conveyer belt 26.6 billion yen +3.9% 0.3 billion yen +333.6% sushi shop “Kaisen Misakikio.”

Hanamaru Overseas Delivering “delicious surprises” to The first overseas store opened in every customer! 1975 Hanamaru continues to deliver “delicious surprises” Overseas, we mainly execute business under the to every customer by serving authentic self-service “Yoshinoya” and “Hanamaru ” brands. Sanuki-style Udon. year-on-year year-on-year year-on-year year-on-year Net sales Operating income Net sales Operating income 27.0 billion yen +13.3% 1.2 billion yen +35.9% 19.7 billion yen +18.8% 1.2 billion yen +36.0%

Arcmeal Others Meat speciality restaurant chain in Setagaya has 21 stores in Japan and pursuit of “hospitality.” overseas Arcmeal is currently expanding its business in the This segment is represented by “Setagaya,” a Northern Kanto region with three main brands: steak pioneer in the global boom. restaurants “Steak-no-Don” and “Volks,” and shabu- year-on-year year-on-year year-on-year year-on-year Net sales Operating income Net sales Operating income and loss shabu and sukiyaki restaurants “Don-tei.” 22.4 billion yen -2.2% 0.2 billion yen +54.4% 3.5 billion yen -16.1% (0) billion yen (0.05) billion yen

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010_0881332263006.indd 3-4 2018/06/25 11:14:40 Path to Growth

Keeping the passion for flavor The value we deliver through our particular focus on taste since our founding, as well as Yoshinoya’s evolution, is well-received by people across borders and generations. We plan to make further progress while creating new value toward the future, spreading Japan’s food culture to the world.

Establishment 1899 1980 1990 2000 2007 2011 2016 YOSHINOYA CO., LTD. files for Approval of stock for over-the- Establishment of YOSHINOYA Establishment of the Group Establishment of the Group Administration corporate reorganization, and begins counter trading HOLDINGS CO., LTD. Product Division Division corporate reorganization proceedings Establishment of the Group Finance and 1987 Accounting Division Yoshinoya “Yoshinoya” founded in Holdings 1958 Establishment of YOSHINOYA CO., LTD. (currently Yoshinoya Holdings) Completion of corporate reorganization proceedings Listing on the First Section of the Stock Exchange

1926 1968 1991 2004 2006 2013 2015 2017 Prohibition of beef imports from the U.S.; cancellation of beef bowl sales Group Synergy Release of “Salacia beef,” the Launch of “Tokumori” beef bowl (Extra-large beef bowl) first food with We develop multiple branches Yoshinoya Yoshinoya moves to Tsukiji to Shop opening in Shinbashi, 1996 Functional Claims coincide with the relocation of aiming to become a domestic Ban on beef imports lifted; labeling by a the fish market from Nihonbashi chain Establishment subsequent return of beef bowl sales while utilizing knowhow from of 500th store Sale of beef sukiyaki set Sale of barley rice set with grated yam and beef restaurant chain to Tsukiji Establishment 2000 all Group companies 2013 2016 2004

Hanamaru Opening of first Hanamaru in Takamatsu Operation of largest Introduction of Hanamaru’s dietary Reform and automation of the noodle domestic plant in Shizuoka fiber noodles into all shops production line of the Chiba plant Establishment 1970 We spread the taste of 1976 1990 2011 2015 Opening of first shabu-shabu Japanese cuisine to the world Don-tei through convenient ways

Volks menu, Arcmeal soon after establishment Opening of first Volks Opening of first Steak-no-Don Opening of first Volks in Opening of first Don-tei in Taiwan Establishment 1932 1951 1984 1997 2001 2005 2011 2015 2016 Listing on the First Section of Opening of standing sushi shop Listing on JASDAQ Delisting the “Sushi Misakimaru” in Koiwa Localization 2002 Completion of corporate Our employees are not only Invention of “chakinzushi,” sushi wrapped in thin omelette reorganization proceedings from Japan, but are also Kyotaru KYOTARU CO., LTD. files for corporate Started as a Japanese cuisine 1970 reorganization proceedings from local regions restaurant in Kyoto Participation in Expo ‘70 Opening of conveyor belt sushi shop Exhibition at the Expo 2015 Milan Expansion of the rice-cooking line at the Funabashi plant “Kaisen Misakiko” in Meguro

1975 1988 1991 2002 2008 2010 2015 2017 Commencement of development Opening of first Yoshinoya in Exhibition of Yoshinoya and Subsidiary in acquires of the Yoshinoya franchise in Fujian Hanamaru at the Expo Shanghai JAKIM Halal certification ® Asia 2010 Opening of first Yoshinoya in (Opening of the first Yoshinoya Qinghai; opening of first in ) 2014 Yoshinoya in Sichuan Opening of first Yoshinoya in Opening of first Yoshinoya in Shanghai Opening of first Yoshinoya in Qingdao; opening of first Overseas 1979 2004 Yoshinoya and Hanamaru Udon Opening of first Yoshinoya and Opening of first Yoshinoya in Los Angeles Opening of first Yoshinoya in Taiwan Opening of first Yoshinoya in Shenzhen in Wuhan Hanamaru Udon in Malaysia

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010_0881332263006.indd 5-6 2018/06/25 11:14:47 Expanding around the world Flavors and services from Japan Heilongjiang and Jilin Yoshinoya 18 stores spreading around the world (year-on-year +8)

Liaoning Company-operated stores Sichuan Inner Mongolia Beijing Franchised stores Yoshinoya 81 stores Yoshinoya 1 store Yoshinoya 12 stores Yoshinoya 219 stores (year-on-year +8) (year-on-year +1) (year-on-year ±0) (year-on-year +5)

Wuhan Qinghai Qingdao Japan Yoshinoya 17 stores Yoshinoya 1 store Yoshinoya 16 stores (year-on-year +8) (year-on-year +1) (year-on-year +6) Yoshinoya 1,200 stores (year-on-year -7) Hanamaru 2 stores Hanamaru 3 stores (year-on year -1) (year-on-year +2) Hanamaru 479 stores America (year-on-year +47) Shenzhen Yoshinoya 101 stores Arcmeal stores (year-on-year -2) Yoshinoya stores 175 37 (year-on-year -6) (year-on-year +9) Setagaya 3 stores (year-on-year ±0) Shanghai Kyotaru 330 stores Hong Kong (year-on-year +2) Yoshinoya 9 stores Yoshinoya 61 stores (year-on-year +1) Others stores (year-on-year +3) 167 Hanamaru 23 stores (year-on-year -17) (year-on-year +7)

Fujian Malaysia Yoshinoya stores Yoshinoya Yoshinoya Yoshinoya 15 15 stores 3 stores 12 stores (year-on-year +3) (year-on-year ±0) (year-on-year ±0) (year-on-year +3) Our stores are being opened all over the world, from Japan Hanamaru store Hanamaru stores 1 9 (year-on-year ±0) to America, East Asia, and South-East Asia, and we are (year-on-year ±0) continuing to grow in scale. Taiwan We strive to deliver the taste of Japan and its services to Yoshinoya 64 stores more and more people through promoting market The (year-on-year +6) strategies that meet local needs. Yoshinoya 17 stores Yoshinoya 73 stores Yoshinoya 11 stores Arcmeal 3 stores (year-on-year +5) (year-on-year +16) (year-on-year -1) (year-on-year ±0) Setagaya 1 store (year-on-year -1) Company Profile Number of stores in Japan and overseas, by brand Company Name YOSHINOYA HOLDINGS CO., LTD. Number of Yoshinoya 9,959 Male: 5,179 Yoshinoya Kyotaru Total Employees Female: 4,780 Total Established December 27, 1958 Company-operated stores 1,382 stores Company-operated stores stores All brand total Hanamaru 2,161 Male: 898 1,983 stores 330 330 stores Franchised stores Paid-in Capital 10,265,480,000 yen Female: 1,263 601 stores (year-on-year +73) Franchised stores 0 stores (year-on-year +1) Company-operated stores , stores President Yasutaka Kawamura Arcmeal 2,173 Male: 773 Hanamaru Others 2 368 Head Office 18F Daiwa Rivergate, 36-2 Nihonbashihakozakicho, Chuo-ku, Female: 1,400 Total Total Franchised stores Company-operated stores 414 stores Company-operated stores 67 stores stores Tokyo, 103-0015, Japan Kyotaru 2,828 Male: 1,250 517 stores 171 stores 811 Female: 1,578 Franchised stores 103 stores (year-on-year +55) Franchised stores 104 stores (year-on-year -18) TEL +81-3-5651-8800 (main) Overseas 3,204 Male: 1,951 Total Female: 1,253 Arcmeal URL http://www.yoshinoya-holdings.com/ Total 3,179 stores Others 319 Male: 189 Company-operated stores stores Stock Listing Tokyo Stock Exchange First Section 175 stores (year-on-year +105) Female: 130 178 (Securities Code: 9861) Franchised stores 3 stores (year-on-year -6) Including part-time workers (As of the end of February 2018)

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Information by segment Left axis: Net sales (100 million yen) Right axis: Segment income (100 million yen)

Net sales (100 million yen) Operating income (100 million yen) Yoshinoya Hanamaru

2,400 50 1,200 75 300 30 270 1,985 972 1,010 1,857 1,886 40 40 956 238 1,800 215 800 50 200 20 50 30

1,200 38 20 18 11 12 16 400 30 25 100 9 10 600 10

0 0 0 0 0 0 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017

Ordinary income (100 million yen) Net income attributable to owners of the parent (100 million yen) Arcmeal Kyotaru

50 15 300 6 300 6 14 46 266 249 256 40 12 243 229 224 10 200 4 200 4 30 27 8 23 3 20 5 100 2 100 2 2 2 2 10 1 0.7 0 0 0 0 0 0 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017

Consolidated net assets and equity ratio ROE (return on equity) (%) Overseas Other

750 Consolidated net assets (100 million yen) Equity ratio (%) 90 3.0 200 197 20 45 30 41 2.6 175 166 34 35 577 572 578 2.2 150 15 30 20 500 60 2.0 12 49.5 100 10 15 10 51.7 49.4 9 1.4 250 30 1.0 50 5 0 0 5 1 0.5 0

0 0 0 0 0 15 10 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017 FY2015 FY2016 FY2017

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