Medium-Term Business Plan
FY2021 - FY2025
Announced on September 11, 2020

SILVER LIFE Co., Ltd.
The First Section of the Tokyo Stock Exchange (9262)

Business Plan Concept and Strategy
Ever since our company was founded, we have consistently made steady growth inboth sales and profits. However, due to the significant increase in frozen bento sales inFY2020, we have reached limits to our production capacity and storage capacity offrozen bento’s. Even for other refrigerated products, we feel it is necessary to furtherstrengthen the production system in preparation for the increase in demand beyond
2025 due to the increase in the number of elderly people at home.
To correspond with these issues, we will make a large-scale capital investment in orderto build a system that can reasonably increase sales. Therefore, we have formulated
this business plan since we believe it is necessary to clearly explain our medium tolong-term management policy and the impact the capital investment will bring to ourbusiness performances.
The planned period will be our “Period to Build a Foundation for Long-Term
Improvement of our Corporate Value”. And in order to continue growth in our businessactivities for the next 50 to 100 years, we envision a growth strategy that furtherstrengthens our current competitive advantages.
-2-Business Plan Concept and Strategy＜Trends in Sales and Profits＞（one million yen）

（one million yen）

Sales Trends

10,000

1,200

8,000

1,000

Ordinary Profit Trends

800

6,000

600
4,000
400
2,000
0200

FY2015FY2016FY2017FY2018FY2019FY2020

0FY2015

FY2016FY2017FY2018FY2019FY2020-3-Nationwide Store Network and Delivery Network・Currently, we have 834 franchise chain stores nationwide
・Established a delivery network for daily bento delivery(Manufacturing factory → Member stores → Elderly)

Our Kanto
region factory

Affiliated factory-4-(increasing population of late-stage

External Environment elderly)

Our main target, the late-stage elderly, will increase exponentially beyond 2025
Population trends and future forecasts for theelderly (over 65 years old) and late-stage elderly (over 75 years old)
2,500
2,180 2,288

Baby boomer generation will
become late-stage elderly
2,000
1,734

1,500
1,301

1,517
1,4071,613

1,798

892

2,277

2,248

1,872

1,760

1,681

1,747
1,522
1,497 1,428

1,000

2,239
2,260

2,417 2,446 2,387

1,643
1,154 1,133

1,424

900

1,258

699
597

516

500
309
107

376
164366
224

Future Forecast

0Population age 65-74

Population aged over 75

Source: Cabinet Office, White Paper on the Aging Society-5-

(a business that does not rely on long-term

External Environment care insurance)

Changes in the Working Generation and the Elderly Population(ten thousand)

The working generation (15 to 64 years old) is decreasing,and the elderly population is increasing

6,000
4,0002,000

Dependent Population
8.86 million

33.47 million

37.82 million

37.04 million

18.26 million

0

1975年

-2,000

1995年

2015年

2035年

2055年

Moving toward society where 1.3 people of the working
generation will support 1 person aged over 65.
Social security deposit benefits per person will decrease-4,000-6,000-8,000Supporting Population-10,000

The increase of expenditure toward COVID-19 measuresin 2020 makes it even more difficult to secure financial
resources for long-term care and welfare

Future Forecast

高齢者人口（65歳以上）

現役世代人口（15～64歳）

Source: Cabinet Office, White Paper on the Aging Society(cases)

Bankruptcies in Elderly Welfare / Nursing Care Businesses
108 111 105 111

1201007680
6040200(90% of net sales rely on the long-term care insurancesystem) The long-term care business is destined to
become difficult in the future.

1520052335

200746543820092754

In this upcoming era, only businesses such as food
distribution services for the elderly, which can bemanaged without relying on long-term care insurance,
can support the lives of the rapidly increasing elderly
population.

33
192011

2013

2015

2017

2019

Source: Tokyo Shoko Research, 1st half of 2020 "Elderly Welfare / Nursing Care
Business" Bankruptcy Situation-6-

Measures to Increase Sales from our External Environment

Franchise Chains

Facilities for the Elderly

Further increase in stores & the launch of our 3rd brandSales expansion of frozen food-packs

Acquisition of new frozen products is prosperous
The mainstream shift from refrigeration to freezing

OEM
Acquisition of new OEM partners

Direct Sales of Frozen Bento- New advertising skills- Increase in new and regularcustomers

New Business Challenges & Establishing New Growing Content-7-Sales Forecast
Sales Projection Forecast

9.5 billionyen

8.8 billionyen

10.3 billion
yen

11.5 billion
yen

14 billion
yen
12.7 billion
yen

OEM / Others

Facilities for
the Elderly

Franchisechains

Sales Forecast
2020/7期実績

2021/7期

2022/7期

Sales Goals
2023/7期

2024/7期

2025/7期-8-Overcoming the Manufacturing Limitations
Increasing the production capacity to quadruple will get
us through the next 10 to 15 years

Capacity to cover triple
the production volume
than the current level

The 2nd factory will increase
the production capacity fourtimes our current capacity

Due to the increase in sales of frozen
bento’s, the production capacity of
the 1st factory reached its limits

Current
Production
Capacity

FY2020 Results

FY2021

FY2022

Number of meals manufactured at our factory
Current liquidation capacity

FY2023

FY2025

FY203×

Number of meals capable of manufacturing at our factory-9-For Our Future GrowthEstablishing a 200 Thousand Meals / Day
Manufacturing & Storage System
1st Factory (Kanto Region) (Ora-gun, Gunma Pref.)50,000 meals / day (frozen foods）
Refrigerating equipment replaced with freezing equipment

New 2nd Factory (Ashikaga City, Tochigi Pref.)150,000 meals / day (chilled foods）
Completed in early 2021 (Scheduled)

New frozen foods warehouse(Tatebayashi City, Gunma Pref.)
The storage capacity of 1.35 million meals

Annex warehouse (chilled foods)- 10 -

Profit Forecast and Goals after Capital Investment
Operating Profit / EBITDA Projection Forecast(1) Assuming operation of the 2nd factory from Q3 of FY2021(2) Assuming the operation of a new warehouse from the Q2 of FY2022→ Profit will temporarily decrease due to increased initial cost and depreciation
burden during the operation→ However, the manufacturing and storage capacity expansion will help 1.6 billion
yenincrease sales to bring a V-shaped recovery to profits.

The expected payback period for the 2nd factory is 10 years
1 billionyen
900 million
yen

EBITDA
900 millionyen

1.3 billionyen

1.1 billion
yenProfit Forecast
2020/7期実績

1.6 billion
yen

700 million
yen

600 million
yen

Operating
Profit

1.1 billion
yen

1.8 billionyen

2 billionyen

2021/7期

2022/7期

Goal2023/7期

2024/7期

2025/7期- 11 -

The Basis for 5-year Numerical Plan
FY2021

FY2022 – FY2025

Sales

 Franchise chains are expected to raisearound 700 million yen every year Facilities for the elderly are shifting tofrozen food-packs
 OEM sales are expected to decline
 Direct sales are adjusting shipment until
the production system is in order Franchise chains will shift their chilled
production to a new factory and after stablerunning, with the expectation of starting a thirdbrand, the growth will accelerate Facilities for the elderly continue the shift tofrozen food-packs
 We aim to acquire new OEM sales brands
 Direct sales aim to increase sales by gradually
increasing production

Cost Increase in depreciation cost andpersonnel due to running the 2nd factory A short-term cost rate increase to establish
the production system Renovated the 1st factory to a dedicatedfreezing factory The cost rate improved after 2nd factory startedrunning Investment to improve production efficiency at
1st and 2nd factories

Selling &ManagementExpenses

 250 million yen investment for production
management systems, etc.
* Expected to be launched and in-service
before the 2nd factory starts running Start running the new warehouse (total
investment of 900 million yen planned beyond2021)*Establishment of a frozen bento picking system

 Resuming sales of frozen bento’s and using
expenses for advertising- 12 -

Investment Plan
Investment

1stFactory

2ndFactory

Frozenwarehouse

SoftwareInvestment
Amount

200 million yen(additional investment
amount）

Investment
Content
Frozen foods Factory
to replace chilled & frozen
foods factory
Products for OEM & DirectSales

Cilled foods Factory

3.7 billion yen

900 million yen

250 million yen(Vacuum packing method)

Products for FC storesand facilities

Investment Results Increase in production volume and improved productivity
specializing in manufacturing frozen products instead ofboth frozen and chilled foods products
 Maximum 150,000 meals / day manufacturing capability
 The decrease in the amount of deliveries due to theextended expiration date

Frozen foods
Warehouse Eliminating bottlenecks to frozen bento product sales thathave a large growing demand by creating a warehouseexclusive to frozen products Improving productivity by consolidating warehouses
 Reduction of external warehouse costs

Production
Management System

 Visualization and efficiency improvement of production
management by integrating production management andmeasuring systems
 Production and management system cooperation by ERP

By 2025, when the number of late-stage elderly people will increase, we will build our in-houseinfrastructure, lay out the foundation, and aim for the No. 1 share in the market expansion period.
- 13 -The next five years are most
crucial for our companies next
30 years of growth.
By 2025, we will build our internal
infrastructure and aim for the No. 1 share in
the expansion period of the market, when
we will see an increase in the population oflate-stage elderly people.
- 14 -

Handling of this Document
 The statements in this document regarding future-prospects are based on current
information and may fluctuate due to economic trends, market environment, our relatedindustry trends, and other internal and external factors. Therefore, please have in mind
that there are risks and uncertainties that the actual results may differ from thosedescribed in this document regarding future-prospects.
 This document does not constitute or solicit an application for acquisition of any
securities, an application for sale, or an application for purchase (hereinafter referred toas “solicitation”) and is not intended to perform any solicitation activities and may not be
the basis of any contracts or obligations.
 Although we take the utmost care for the information in this document, there may beerrors in the posted information, and you may experience damage from data falsification
or data downloaded by a third party, but we do not take any responsibility for any
reason.

- 15 -