Magokoro Care Meal
Example of mousse meal

Financial Results for the 4th Quarterof Fiscal Year Ending July 31, 2024
SILVER LIFE CO., LTD.
The Standard Market of the Tokyo Stock Exchange (9262）

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

1.

Fiscal Year Ending July 2024 4th
Quarter Performance Highlights

3

～

11

2.

Progress of internal production andcentralization of logistics

13 ～

14

3.

Sustainability Initiatives

16 ～

21

4.

Actions to achieve cost of capital andstock price conscious management

23 ～ 26

5.

Forecast for the year ending July
31, 2025

28 ～

31

6.

Reference Data

33 ～

48

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

-2-

Fiscal Year Ending July 2024 Q4 Performance （vs YoY ）Net sales
Gross profit
Operating profit+10.5% Increased in all sales categories, especially sales of frozen bento in the “Direct Sales/Others” category+17.8％ Although profit margin improved due to internalization of manufacturing, the ratio of internalization remained at 60% at the beginningof the term → 80% target at the end of the term → 70% actual at the end of the term.
+14.7% Freight rates increased due to in-house logistics production, but the amount of improvement in gross profit exceeded that of theprevious year and budget were both achieved.

FY2024 Q4Unit : million
yen

FY2023 Q4

Sales
ratio

Plan
Progressrate

Results

FY2024 Plan

ActualVs. FY2023
Q4results

Net sales

13,555+10.5%-+3.5%

12,266-

13,100-Gross profit

4,365+17.8%

32.2%

+7.5%

3,706

30.2%

4,060

31.0%

Operatingprofit768+14.7%

5.7%

+1.1%

670

5.5%

760

5.8%

Ordinary
profit965＋12.6%

7.1%

+1.6%

857

7.0%

950

7.3%

Profit668＋10.9%

4.9%

+7.8%

602

4.9%

620

4.7%

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Sales
ratio

Plan

Sales ratio-3-

Sales per Category
Vs. FY2023 Q4
cumulative ActualFranchise chains
Sales Unit : million yen
2,178

2,114

2,165

2,194

2,215

2,216

2,238

2,064

+ 4.0%

Sales ： Gradual recovery
FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4

Number of Stores
978

975

964

970

958

948

953

959

73

85

95

107

107

110

120

129

352

342

335

326

317

311

310

305

553

548

534

537

534

527

523

525

FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4
Takushoku Life

Haishokuno Fureai

Magokoro Bento

Price revision in September 2023 (3% price increase) to maintain YoY
Existing stores sales YoY: 109.8%※1
85% of food sales to franchisees are regular meals, 15% are special
meals※2 Sales of regular meals are in the 500-yen range at stores andcontinue to grow (+5.4%)Sales of special meals are in the 700-yen range
at stores, and will decrease (-5.2%).
→Special meals are scheduled to be converted from frozen bento to
packaged meals by March 2025.
→Aim to increase the number of meals by lowering the selling price due toa decrease in production costs
Number of stores: 959 stores, with a steady stream of store openings andclosings Conducted on-demand distribution-type franchise information
sessions as a measure to open new stores Use of external M&A sites as ameasure to exit stores※1 Comparison between stores that existed in both the previous fiscal year and this fiscal year, excluding stores that were withdrawn.
※2 Special diets include carbohydrate calorie adjusted meals, protein adjusted meals, and mousse meals.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

-4-

Sales per Category
Unit:million yen

Facilities
for theelderly

322

323

329

350

359

374

395

417

Vs. FY2023 Q4
cumulative Actual＋16.7%
FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4

Unit:million yen

802
728

DirectSales /
Others

514

562

841
764

735

613

Vs. FY2023 Q4
cumulative Actual＋30.0%

FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Chilled products maintained, frozen
products increased
Demand for fully furnished products fromfacilities is strong due to labor shortage.
In addition to elderly facilities, we will
aggressively market to facilities for people
with disabilities.

Frozen: 62.2% of division sales
Chilled: 37.8% of division sales

Direct sales: Significant growth due toprice reductions
The pricing strategy (price reductions)
implemented in the Q3 to prioritize market
share was successful, resulting in a large
increase in the number of meals consumed
and sales growth.
The sales ratio within the division is 65.2％
OEM ： increase 、 The sales ratio within
the division is 30.2％
warehousing business ： stability 、 The
sales ratio within the division is 4.6％
-5-

Change Analysis of Sales
YoY +10.5%
Sales to franchise stores recovered moderately due to price revisions of +3% and strengthened handover of stores that withdrew frombusiness, despite the headwind of labor shortages among store delivery staff.
Sales to elderly care facilities, etc. (sales of packaged food ingredients to facilities) continued to increase from 1QFY2011, buoyed by alabor shortage among cooks at facilities.
Direct sales and others increased mainly in frozen bento and OEM, where business is viable even without delivery staff.
(Unit : million yen)

FY23 Q4

FC Food Sales

FC Loyalties
etc.
Facilities for the
Elderly

FY24 Q4

12,266

342

Strengthening sales activities to transfer customers of withdrawn
stores to existing stores
970 stores at the end of the previous period → 959 stores at the endof the current period
Existing stores: 109.8% of total

221

Chilled food ingredients maintained constant sales
Frozen food ingredients demand continues to grow(154.3% year-onyear for frozen food ingredients sales alone)725
13,555

Direct sales were 121.9% YoY even with a 10-15% price cut in February
OEM sales to existing customers increased
Warehousing business was generally strong despite customer comings
and goings

YoY Change

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

+1,288million yen-6-Change Analysis of Gross Profit
Amount increased 17.8% YoY, gross profit margin improved by 2.0%.
Cost of goods sold decreased due to an increase in in-house manufacturing ratio from Q4 (from 60%
to 70%), while manufacturing costs at in-house factories increased(Unit : million yen)
Gross profit margin ratio

FY23 Q4

30.2％

3,706
1,288

increase in sales

Increase in all sales categories

Decrease in product
costs

170

Material cost

-413

Labor costs/-301

outsourcing costs

Number of in-house production increased in line with sales growthMaterial costs, labor and outsourcing costs, and consumables costs also
increased-30

supplies expense
Utilities charge

18

Others-73
Gross profit margin ratio

FY24 Q4

Decrease in outsourced merchandise purchases

32.2％

By introducing solar power generation and various power saving
devices+18 million improvement from previous period

33 million increase in depreciation and 23 million increase in freightcharges for lateral transportation between Factory11 million increase in
hiring expenses

4,365
YoY Change

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

＋658 million yen-7-Change Analysis of Ordinary Profit
Amount increased 12.6%, recurring profit margin improved 0.1%
The centralization of delivery bases in Q3 led to a large increase in logistics volume and freight costs forshipments from the company's own bases.
However, cost reductions were greater in the end, absorbing the increase in SG&A expenses.
Sales ratio

FY23 Q4

7.0％(Unit : million yen）

857

658

Increase in gross profit
Personnel costs

Warehouse Labor and Freight Costs Increase Labor costs‐470 Kazo
increased by 213 million, freight increased by 231 million

fare costs, advertising costs, etc.

-80

depreciation

Reserve for shareholder benefits-4

and fees paid
Supplies
expense34-22

Increase due to revision of criteria for allowance for doubtful accounts-7

OthersSales ratio

FY24 Q4

No positive difference from unused benefits in Q1 of the previous
fiscal year due to increased use of benefits, and increased
settlement fees due to increased sales from direct sales
In Q1-Q2 of the previous fiscal year, during the start-up period of the Kazo
warehouse, initial supplies such as containers and pallets were incurred asconsumable expenses in logistics, but not in this fiscal year.

Provision of allowancefor doubtful accounts

Development of logistics base due to increase in in-house manufacturing andintroduction of equipment to improve efficiency, Purchase of trucks (in-house
horizontal manufacturing), purchase of EV vehicles (rental by franchisees)

7.1％

965

YoY Change

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

＋107million yen-8-Policies for this fiscal year✓

December: Commissioned to manufacture “Frozen Origin Noriben” forOrigin Toshu

Commissioned production of frozen
Origin nori bento

Contracted to produce “Origin Noriben,” a frozen bento developed in the image of“Tarutaru Noriben,” a product of the “Kitchen Origin” and “Origin Bento” brands.

✓

March: Started making videos of FC information sessions.
Increase the number of franchisees by making FC information sessions
available for viewing at any time of the day✓

April: Started distributing coupons for adding LINE friends for direct sales offrozen bento
Coupon distribution to lower the hurdle to purchase and increase new customers✓

May: Started selling omakase small bowls using surplus ingredients fromthe company's own factory
Improved production efficiency through investment in equipment has allowed moretime to pack surplus ingredients that would otherwise have been disposed of.

✓

May: “Magokoro Care Shoku” Influencer Marketing begins.

On-demand delivery of FC information
sessions

Started selling “omakase
kobachi”

Influencer Marketing (You Tube)

Based on the establishment of personas for the Company's products, the objective is toexpand awareness and attract a new customer base.

✓

May: Started an unmanned company cafeteria service.
Three contract plans are available, with frozen stockers, microwave ovens, etc. on
loan from the Company. Low-priced bento made possible by economies of scale
and proprietary manufacturing know-how✓

July: Began providing frozen packaged prepared foods to the
AIM Services Co., Ltd.

Frozen bento with rice”
handled by Unattended
Cafeteria Service

Frozen packaged prepared foods, which had been introduced on a trial basis at some A.M. Service
locations, are now offered on a full-scale basis at AIM Services Co., Ltd. business sites nationwide.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

-9-Balance Sheet
Performance exceeded that of the previous year, and the equity ratio rose to 65.1%.
ROE increased to 10.8% despite upfront investments related to the internalization of consignment
foodstuffs and centralization of distribution bases.
End of July2023

End of July2024

fluctuation

Total current assets

3,579

3,585

6

66.0%

(of which cash and cash
equivalents)

1,507

1,265

△242

64.0%

Total fixed assets

5,983

6,289

306

62.0%

(of which property, Factoryand equipment)

5,359

5,709

350

60.0%

(Intangible fixed assets)

399

356

△43

9,562

9,875

312

(Unit : million yen）

total assets

Equity ratio
65.1%

61.9%

FY2023ROE
11.0%

total liabilities

3,646

3,451

△195

(Of which, long-term debt)

1,712

1,472

△239

Total shareholders' equity

5,916

6,423

507

(Of which, retained earnings)

4,466

4,971

505

Total liabilities and net assets

9,562

9,875

312

FY2024

10.7%

10.8%

10.0%
FY2023※Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

FY2024

Denominator for ROE is the average for the period- 10 -Cash Flow
Increased investment in Factory and distribution facilities
Balance at the end of current period decreased by 240 million
Cash and cash equivalents

1,507

at beginning of period
Profit before

955

income taxes

in trade receivables‐158

Operating Activities CF

Decrease (increase)‐292

Income taxes paid
Purchase of property,‐1,074

plant and equipment

Investing Activities CF‐88intangible assets
Repayments of longterm borrowings
Dividends paid
Other
Cash and cash equivalents
at end of period

Increase in depreciation and amortization due to increase in
fixed assets
Increase in credit card payments due to increase in direct
sales

‐64

in inventories

Purchase of

Increase in profit due to higher sales

797

Depreciation
Decrease (increase)

Unit : million yen）

Corporate tax increases with business growth
Increase in capital expenditures due to internalization ofoutsourced food ingredients and centralization of logistics
bases, ESG-related investments, etc.

‐239

Financing Activities CF‐162

Repayment of long-term debt and dividend payments

83

Decrease in accrued consumption tax, security deposit
income, etc.

1,265
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 11 -

1.

Fiscal Year Ending July 2024 4th
Quarter Performance Highlights

3

～

11

2.

Progress of internal production andcentralization of logistics

13 ～

14

3.

Sustainability Initiatives

16 ～

21

4.

Actions to achieve cost of capital andstock price conscious management

23 ～ 26

5.

Forecast for the year ending July
31, 2025

28 ～

31

6.

Reference Data

33 ～

48

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 12 -

Internalization of product manufacturing has gone by the wayside.
Planned 80% in-house production rate from May 2024, but actual rate remained at 70Sales to elderly carefacilities were stronger than expected when the equipment was ordered, and unplanned OEM orders increased,
resulting in an increase in overall production volume. Although it would be possible to increase the in-houseproduction rate to 80% as planned by operating the equipment 7 days a week, it was determined that there was
no room to spare and the risk of equipment breakdowns, etc. was too great. Aim to achieve an in-houseproduction ratio of 80% or higher in the spring or summer of next year, after ordering, installing, and testing new
equipment.
As of 2024 Q2, the in-house production rate wasplanned to be 80%.
Before in-houseproduction

60
%

40
%

FY2022in-house
manufactured

80% target
reestablishedwith production
line expansion

Actual in-houseproduction rate
remains at 70%.

After pre-production

40
%

40
%

60
%

FY202360%

FY2024
Q2

20
%

80
%

2024MayPlan

30%
Unplanned
increase in OEM
production
Increase in foodingredients for
elderly carefacilities

70%

2024May
Actual20%
Extension ofoperating hours
Expansion of
production lines

80
%

2025
Spring Summer

Outsourcing※July 2024, Issue 2, Quarterly Report P10

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 13 -

Unexpected freight charges in Q4 (May-July) due to centralization of logistics
Freight Rates and Freight Ratio(Millions of yen, %)

181

175

191

205

313

The reason for the increase was the introduction of a logistics system that began
operation in May, which was introduced to cope with the increase in volume, but two
factors for the increase appeared due to a lack of prior assumptions.

227

203

We had assumed an increase of 15 million yen per monthdue to increased volume . However, the actual increase
was 30 million yen per month.

169

１．unit price increased due to automatic size measurement

5.6%

Example: Corrugated cardboard boxes were being made with a total length, width,and height of just under 60 cm. Until now, human eye measurement had resulted in
all items being treated as 60cm in size. However, the machine's automatic
measurement revealed that there were individual differences in expansion. As a result,20-30% of the total size increased (a measurement of 60.1 cm was treated as a size
80).
Countermeasure : Plan to fine-tune frozen bento containers and cardboard boxes by
the end of the year

6.1%

5.8%

5.9%

6.1%

6.1%

6.8%

9.0%

FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4

Ordinary income and ordinary income ratio (Millions of yen, %)

289

9.6%

217

7.2%

282
191
6.4%

299

2. unit price increased due to automatic weight measurement.

239

159
4.9%

8.4%

8.9%

7.2%

143
4.1%

FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4

Example: Corrugated cardboard that weighs 10 kg or less fits into the 100-size freightrate . Until now, the weight had been put in by human sense to fit within 10 kg .
However, the machine's automatic measurement revealed that the weight standard
was exceeded . As a result, 30 to 40% of the weight was overweight (10.1 kg wasconsidered as 120 size).Countermeasure: “Weight data per item” was added to thesorting system . From the beginning of August, the system environment was changed
to strictly adhere to the weight standard.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 14 -

1.

Fiscal Year Ending July 2024 4th
Quarter Performance Highlights

3

～

11

2.

Progress of internal production andcentralization of logistics

13 ～

14

3.

Sustainability Initiatives

16 ～

21

4.

Actions to achieve cost of capital andstock price conscious management

23 ～ 26

5.

Forecast for the year ending July
31, 2025

28 ～

31

6.

Reference Data

33 ～

48

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 15 -

Addressing Issues Surrounding Sustainability (Environment)
GHG emissions

57,020tCO2

61,786tCO2

bento equivalent
1.24kgCO2

bento equivalent

1.26kgCO2
FY2024FY2023To incorporate a sustainability perspective into ourbusiness activities, we rent small EV vehicles to ourfranchisees of our main business, meal delivery service,and have introduced solar power generation at our
manufacturing and distribution sites.

GHG emissions and home cooking comparison

We compared the CO2 emissions of our company's

Difference between GHG emissions from home cooking
and our GHG emissionscommercial products when shopped for and cooked at

Own emissions (including range
heating)

Own emissions (including range
heating)

58,863tCO2

63,754tCO2

Emissions from home cooking

121,092tCO2

GAP (in-house - home cooking)

GAP (in-house - home cooking)

54,483tCO2

process raw materials, ship commercial products, and heatthem in a microwave oven.

Emissions from home cooking

113,346tCO2▲

home to the CO2 emissions required to purchase and▲57,337tCO2

As a result, we believe that “our growth will contribute to
the reduction of GHG emissions worldwide” because theuse of our commercial products produces less GHG
emissions. We will continue to work for further

FY2023

FY2024※2.46 kgCO2 per meal prepared at home (including shopping trips and dishwashing)※GHG emissions from microwave heating are included in the company's emissions.

improvement through activities to increase production
efficiency and our company's performance growth.

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- 16 -

Addressing Issues Surrounding Sustainability (Environment)
GHG emissions reduced by
franchisee rentals of EV compact
vehicles▲35 tCO2▲99 tCO2

23 units

66 units

FY2023

FY2024

Solar power generation

From 2021, we will start renting small EV vehicles to our franchisees foruse in delivering bento to the elderly.We will continue to work toincrease the number of rentals as part of our efforts to reducetransportation and other costs, as well as CO2 emissions.

Solar power generation was introduced to the Tochigi Factory in May 2021.
The following month, in August 2022, solar power was installed at the
Kazo Warehouse, in July 2023 at the Gunma Factory, and in October

605mw

724mw

2023 at the Akaiwa Cutting Center. In September 2024, we plan to install
the system on the roof of a carport at the Kazo Warehouse. In addition,
fluid agitators were installed in compressors for refrigerators and air

FY2023

FY2024conditioners at all Factory and warehouses in 2022 as an effort to reduce
power consumption, and power improvement devices (to reduce current
loss from transformers) were installed in September 2023.
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- 17 -

Addressing Issues Related to Sustainability (Society)
Food residue※％ (Disposal rate) = Amountdisposed of / Amount produced

282.0t6.0%

280.8t5.1%

FY2023

FY2024

Residue increased in FY2023 due to in-house production of outsourced
food ingredients; in FY2024, both the amount of residue and disposal rate
decreased due to the introduction of food waste disposal equipment at the
Tochigi Factory, Gunma Factory, and Akaiwa Cut Center.
・ 2021 Introduction of low-loss vacuum cooking method at Tochigi Factory ・2023 Residuals increase due to in-house production of outsourced food＜ Introduced food waste disposer ＞
Disappearing food waste processor that breaks down and miniaturizes foodwaste with the help of microorganisms and discharges it as water.

ingredients

Goal: Increase the percentage of women in
management positions to at least 30% by 2028

Center

25.0％ 25.0％
FY2023・ 2024 Installation of food waste disposers at 2 Factory and the Akaiwa Cut

・Introduce role models for female managers・Implementing andpresenting work hour management that managers themselves canemulate・Provide opportunities to choose various career courses.・
Support for shortened working hours and telecommuting for returning to

FY2024

Goal: Average monthly overtime hours
for all employees to be within 15 hours

work after maternity or parental leave
・We will monitor the amount of individual overtime work each month andstrive to optimize workload.

18h 09m

14h 48m

FY2023

FY2024・Allocate an extra person to each department in consideration of the riskof unforeseen workforce reductions.
・Improve operations by introducing a system
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- 18 -

Addressing Issues Related to Sustainability (Society)Improvement of employee working environment, diversity, etc.
・ Promotion of paid leave (Actual acquisition rate: 68% for the fiscal year ended July 31, 2023; 78% for the fiscal year ended July 31, 2024)
・ Promotion of maternity and parental leave (Achievement: 8 in July 2023 and 5 in July 2024)
・ Promote employment of persons with disabilities (Actual employment rate: 1.3% at the end of July 2023, 1.7% at the end of July 2024)

・ Promoting Employment of Foreign Nationals (Actual enrollment: 111 at the end of July 2023, 179 at the end of July 2024)
・ Scholarship Repayment Support Program (Actual number of users End of July 2023: 12 End of July 2024: 21)(The company will repay the full amount of the scholarship in seven-year installments on behalf of the applicant.)

・ Promoting support for shorter working hours and working at home for employees who are on childcare leave or

who have returned to work within a certain period of time after returning to work・ Introduced e-learning, a free access to all types of training available to all employees
・ Introduction of qualification allowance (starting from March 2021)

・ Support system for payment of expenses for qualification acquisition and in-service training
・ Introduction of “Safety Confirmation Application,” a service to watch over the elderly (started in December 2017,
patented in May 2020)

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- 19 -

Addressing Issues Surrounding Sustainability (Governance)
Composition of the Board of Directors and number of meetings of the
Audit Committee and the Nominating and Compensation Committee
Ratio of Outside Directors

Ratio of female directors

37.5%

37.5%

12.5%

12.5%

3/8members

3/8members

1/8members

1/8members

FY2023

Audit and Supervisory
Committee Meetings Numberof meetings

FY2024

Number of Nominating
and Compensation
Committee meetings

FY2023

Number of Compliance
Risk Committee meetings
held

FY2024The Nomination and Compensation Committee wasestablished by resolution of the Company's Board of
Directors on July 29, 2022 for the purpose of enhancing the

24times
FY20245times4timessupervisory function of the Board of Directors and

FY2024FY2024system through transparency, objectivity and fairness in thestrengthening and enhancing the corporate governanceevaluation and decision making process regarding director
nominations and compensation.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 20 -

Addressing Sustainability Issues (ESG related Investment)
Almost completed major environmental investments, such as solar power generation and waste disposal equipment .
In terms of human capital investment, in addition to repayment of scholarships, we have prepared company housing
to provide a working environment closer to workplaces to accommodate the increase in the number of factory
workers due to the shift to in-house production.
FY2024FY2023

Environmental investments (EV vehicles, waste
disposal equipment, solar power generation, etc.)(Unit : million yen）

43

EV Vehicles

65Million yen

1258

Garbage collector

Solar power generation

devicesAcquisition of company

87

housing and repayment

FY2024

Human capital investment (acquisition of company
housing and repayment of scholarship substitute)

57
53

and power savingof scholarship by proxy

FY2023

158Million yen

6Million yen

87Million yen

FY2023

FY2024

Total ESG related Investments

6

71Million yen
FY2023Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

246Million yen
FY2024- 21 -

1.

Fiscal Year Ending July 2024 4th
Quarter Performance Highlights

3

～

11

2.

Progress of internal production andcentralization of logistics

13 ～

14

3.

Sustainability Initiatives

16 ～

21

4.

Actions to achieve cost of capital andstock price conscious management

23 ～ 26

5.

Forecast for the year ending July
31, 2025

28 ～

31

6.

Reference Data

33 ～

48

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 22 -

Current Analysis ROE exceeds cost of equity
As of July 31, 2024, ROE 10.8% Cost of Equity 6.3％
ROE remains above cost of shareholders' equity
ROE and Cost of Equity
15.0%

profitabilitySales have continued to grow by more than 9% sincelisting .
While growth in franchise store business has slowed
down, the growth rate of direct sales business, mainly
frozen bento sales, has increased.

capitalefficiency

Asset efficiency is expected to improve due to reduced
depreciation of the Tochigi Factory and Kazo
Warehouse, which are large upfront investments .
Continuation of appropriate inventory control

growthinvestment

Invested approx. 3.7 billion yen in Tochigi Factory in March
2021 and 1.1 billion yen in Kazo Warehouse in March 2022
Although large-scale investments have settled down,
additional investment will be made in equipment to
supplement production capacity for future growth.

10.0%

10.8%
5.0%

6.3%
ROE
cost of equity

0.0%
FY2021

FY2022

FY2023Model parameters for calculating cost of equity
Risk Free Rate*Set by theyield on 10-year domestic
JGBs

Risk Premium*1953-2022
end-of-year historical risk
premiums are used.

FY2024

Beta sensitivity TOPIX
interest rate relative to theCompany's stock priceinterest rate over the past
60 months＝

FY2024

6.3%

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 23 -

Review of business portfolio
Due to changes in the external environment in recent years (the Corona disaster and labor shortage),the position of the business has changed,Portfolio analysis and direction, and optimal allocation ofmanagement resources.
Business portfolio before the Corona disaster
問題児

Problem
Child

←High

←High

花形
Star

Business Portfolio after the Corona Disaster

金のなる木

EC sales of frozen bento(direct
負け犬 sales and others)

Refrigerated and frozen
foodstuffs (Facilities forthe elderly)

Cash Cow

Dog←High Market share Low→

Business
DomainNo change in the fact thatthe main axis is mealdelivery service

core
competence・One-stop service frommanufacturing to shipping
・Random production of various
types・Freezing technology

PPM
Analysis

pandemicInflationFo
reign exchange
impactIncrease in
number ofcompetitorsShortag
e of humanresources ...... etc.

Market growth rate Low→

Market growth rate Low→

Meal delivery service(Franchise chains)

花形
Star

問題児

ProblemChild

EC sales of frozen bento(direct sales and others)

金のなる木

Refrigerated and frozen
foodstuffs (Facilities forthe elderly)

Meal delivery service(franchise chains)

負け犬

Cash Cow

Dog←High Market share Low→

The growth of meal delivery services, where the labor shortage is a negative, has slowed down,
but on the other hand, growth rates are increasing in elderly care facilities and frozen lunch boxes,
where the labor shortage is a positive, as demand increases.
Under these circumstances, we will allocate management resources in our business portfolio,
focusing on reducing costs and maintaining market share for franchised stores (from a star to amoney tree, reducing costs to become a source of revenue), and focusing on elderly care facilities
and other facilities. In direct sales and other fields, the market will automatically grow, so we will
consciously allocate management resources with the aim of increasing market share (fromunderdogs to problem players to stars).

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 24 -

Profitability and market valuation PBR 1.6x, PER 15.4x
As of July 31, 2024,
PBR of 1.6x, linked to a decrease in share price and PER
PER is 15.4x, EPS is rising but falling below expectations
PER and EPS

PBR and share price
5.0

2,000

1,878yen

4.0

4.1X

Share price at end of term

1,341yen

PBR

1,500

1,264yen

3.0

949yen
2.7X

2.0

0.0

Profitabili
ty andMarketValuation

FY23

36.0X

55.7yen

500

FY24

80.0

61.6yen
60.0

50.7yen37.2yen

1,000

0

FY22

37.0X

PER

22.0X

40.0

15.4X

20.0

1.6X

FY21

40.0
30.0

2.3X

1.0

EPS

50.0

20.0

10.0
0.0

0.0

FY21

FY22

FY23

FY24

Profitability continues to growMarket valuation shows EPS rising while share price declines and PER settles aroundthe TSE average.
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 25 -

Policies and Initiatives
progress・Select standard market from prime market in July 2023
・Dividends will start from the fiscal year ending July 2023
・Shareholder benefits will be abolished in December 2023
・No cross-shareholdings as of the end of July 2024

awarenessof theexisting
situation

・We recognize that our cost of equity is 6.3% for the current fiscal year.
・ROE was 10.8% this term, consistently exceeding the cost of shareholders' equity
・PBR is 1.6 times, which is above the standard, but has decreased
・Market valuation will temporarily stabilize even though stock prices continue to growpolicy・Achievement of medium-term management plan goals: Fiscal year ending July 2028,
sales 18 billion, operating income 1.2 billion
・ROE target: Maintain above 10%

Initiatives

・Allocate management resources based on the revised business portfolio
・Manage inventory with appropriate inventory
・Reducing reinvestment through regular maintenance at factories
・Partially in-house advertising costs to save costs and improve performance・As part of enhancing information disclosure, English versions of financial statements and financial
results explanatory materials will be disclosed on the same day.
・Strengthening communication with institutional investors
・Strengthening communication with individual investors
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 26 -

1.

Fiscal Year Ending July 2024 4th
Quarter Performance Highlights

3

～

11

2.

Progress of internal production andcentralization of logistics

13 ～

14

3.

Sustainability Initiatives

16 ～

21

4.

Actions to achieve cost of capital andstock price conscious management

23 ～ 26

5.

Forecast for the year ending July
31, 2025

28 ～

31

6.

Reference Data

33 ～

48

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 27 -

FY2025 Financial Plan
Considering price revisions by category in relation to sales, expecting overall growth of 7.0%.
Price increase of +4.5% in September for franchised stores, and price reduction of about -1% in the special meal portion due tothe shift to chilled packs of frozen bento in February next year.
Price increases for institutional customers are expected to be +2% in October, and +10% for warehousing customers in October.
No price revision is currently planned for frozen bento sold directly to customers . Operating profit margin is expected to improveby 0.2% due to the improvement of logistics system, appropriate personnel allocation, cost control, etc.

FY2024 Results

Unit : million yen

Net Sales
Operating Profit
Sales ratio

Ordinary Profit
Sales ratio

ProfitSales ratio

full
financialyear（firsthalf oftheyear）

13,555

FY2025 Plan

（secondhalf of the
fiscalyear）

full
financialyear（firsthalf oftheyear）（secondhalf ofthe fiscal
year）

6,710

6,844

14,500

7,080

7,420

+944

768

490

277

850

330

520

+81

5.7％

7.3％

4.1％

5.9％

4.7％

7.0％

+0.2%

965

582

382

1,030

420

610

+64

7.1％

8.7％

5.6％

7.1％

5.9％

8.2％

0.0%

668

361

306

700

285

415

+31

4.9％

5.4％

4.5％

4.8％

4.0％

5.6％

▲0.1%

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Gap- 28 -

FY2024 Financial Plan (Sales and operating profit by sales category)Net sales are expected to grow only moderately in franchise store sales
Sales from senior care facilities, direct sales, and others are expected to grow significantly due to an increase indemand for frozen food and frozen bento.
Operating income is expected to increase 10.6% YoY due to cost reduction measures and sales growth.

Sales

Unit : million yen+7.0%
Vs. FY2024
Q4 results

FY2023_results
FY2024_results
FY2025_plan

14,50013,555+2.0%
Vs. FY2024
Q4 results

Operating profit(Unit : million yen)

FY2023_results
FY2024_results2
FY2025_plan

12,266

9,049+10.6%
Vs. FY2023
Q4 results

850
768

670

8,523 8,865+14.8%
Vs. FY2024
Q4 results+19.0%
Vs. FY2024
Q4 results

1,840

1,325 1,546

3,610

2,418

3,143

Franchise

Facilities for

Direct Sales /chainsthe elderly

OthersTotal Sales

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 29 -

Dividends from Surplus and Dividend Forecast
Plans to pay a year-end dividend of 15 yen for the fiscal year ending July 2024
For the fiscal year ending July 2025, we plan to pay a dividend of 16 yen while continuing to invest in
growth.
Dividends and Dividend
Payout Ratio

16
15

Mar. 2021 Tochigi Factory begins operations (major investment)
April 2021 Establishment of shareholder special benefit plan

15

March 2022 Kaso warehouse begins operations (major investment)

Before the start ofdividends
FY21

26.9%

September 2023 Announcement of dividend policy
24.4%

24.8%

FY23

FY24

FY25

early period

the present

Forecast for

term

next fiscal year

FY22

October 2023 Investment in manufacturing internalization facilities(first stage)
December 2023 Abolition of shareholder special benefit plan
April 2024 Investment in manufacturing internalization facilities(second phase)

Shareholder Return Policy
The Company regards the return of profits to shareholders as an important management issue. To
this end, our basic policy is to maintain a stable dividend payout ratio of approximately 30% overthe medium to long term, while maintaining a balance with internal reserves, taking into
consideration our financial position, operating results, and cash flow situation.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 30 -

Reference : Management index
Net sales
15,00013,555 +20.0%

Net sales
Growth rate 11,215

Unit ： million yen

10,000

8,832

12,266

Cost of sales margin ＆SG&A expense margin
100.0%
100.0%
Cost margin
SG&A expense margin+13.2%

+9.4%

5,000

+10.5%+10.0%

50.0%

50.0%

+0.0%

0
FY20

FY21

FY22

FY23

FY21

FY22

30.0% 15,000 Total assets

ROE

Capital adequacy ratio

Unit ： yen

20.0% 10,000

100.0

63.8

50.0

50.9

11.8%

FY23

55.6
10.7%

61.6
10.8%

77.7%

5,614
10.0%

8,262 8,860

10.0%

5.5%

5.7%

0.0%
FY20

FY21

FY22

FY23

FY24

PBR
100.0%

4,000

4.6

Unit ： yen

Closing stock
price at the end
of Q4
PBR

4.1

3,000

9,562 9,875

59.6%
65.1%
59.9% 61.9%

768

0

FY24

Unit ： million yen

670

8.3%

Capital adequacy margin

150.0

16.9%
60.2

561

10.6%

5.0%

0.0%
FY20

FY24

839

26.5%
22.5% 24.8%

0.0%

ROE
Profit per share

934

500
19.0% 18.7%

20.0%

Operating profit
Operating profit margin

1,000

70.4% 72.9% 72.5% 69.8% 67.8%+11.6%

1,500

Unit ： million yen

10,050+13.8%

Operating profit margin

2.7

50.0%

2,000

1,873 1,878

1,000

1.6

0.0%
FY20

FY21

FY22

FY23

FY24

0

0.0%

FY20 FY21 FY22 FY23 FY24
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

2.0

949
1.0

7.9%

0.0

4.0
3.0

2.3

1,341 1,264

5,000

5.0

0.0

FY20

FY21

FY22

FY23

FY24

- 31 -

1.

Fiscal Year Ending July 2024 4th
Quarter Performance Highlights

3

～

11

2.

Progress of internal production andcentralization of logistics

13 ～

14

3.

Sustainability Initiatives

16 ～

21

4.

Actions to achieve cost of capital andstock price conscious management

23 ～ 26

5.

Forecast for the year ending July
31, 2025

28 ～

31

6.

Reference Data

33 ～

48

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 32 -

The Market to which we belong

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

External Environment (increasing population of late elderly)
Our main target, the late elderly,
will increase exponentially beyond 2025
Unit : ten thousand

Population trends and forecasts for the elderly (over 65 years old) and late elderly (over 75 years old)
2,433 2,478 2,437

2,500Baby boomer
generation will
becomelate elderly

2,000

2,154

2,316

2,261 2,238 2,227 2,277

2,180

2,007
1,860
1,752 1,742

1,627
1,500

1,407

Population age 65-74
Population aged over 75

1,000

1,668

1,535

1,160

1,109

1,701

1,615
1,498

1,455

1,435

1,197

1,187

2065

2070

1,299

776

1,207

717

602

471

434

500
338

284

189

139

Forecast

0

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2018

2022

2025

2030

2035

2040

2045

2050

2055

2060

White Paper on Aging Society 2024, Cabinet Office, Government of Japan
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 34 -

External Environment (a business that does not rely on care insurance)
Changes in the Working Generation and the Elderly Population
Unit : ten thousand

6,000

Population over 65

3,782

3,347

4,000

3,704

1,826

2,000

8.86

0

1975

-2,000

1995

2015

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

2035

2055

Moving toward society where 1.3 people of theworking generation will support 1 person aged
over 65.Social security deposit benefits per person
will decrease-4,000-6,000The increase of expenditure toward COVID-19
measures in 2020 makes it even more difficult tosecure financial resources for care and welfare-8,000

Forecast-10,000

Population under 64

Source: Government materials
Unit : cases
200

Bankruptcies in Elderly Welfare / Care Businesses
143

150

108 111 105 111
100

50

81

76
23

35

46

38

54
27

19

122

118

54

33

0
2006年

2008年

2010年

2012年

2014年

Source: local Government materials

2016年

2018年

2020年

2022年

(90% of sales rely on care insurance)
care business is destined to become difficult in the
future.

In this upcoming era, only businesses such as
food distribution services for the elderly, which
can be managed without relying on insurance,
can support the lives of the rapidly increasingelderly population

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 35 -

Our Company Advantages

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Our Advantage : FC Network
Overwhelming number of stores

1,100
1,000

number of FC stores

959

900

Since opening its first store in “Setagaya” in November

800
700

2007, it has 959 stores as of the end of July 2024. This

600

unparalleled number of stores in the industry enables

400

you to enjoy economies of scale in terms of200

productivity, purchasing, and cost reduction

Low-cost opening

500
300
100
0

profit and loss statement of FC stores

Since the FC stores that we are developing are notvisit-type stores, there are advantages such as a wide
range of location options and rent reduction. In

addition, we have prepared a plan that does not(If the owner enters the store)Sales

100 * Available at the lowest price on the market

Costs

40

Gross profit

60* Stable purchase of high quality without cooking* Easy operation without cooking

require a large kitchen facility and can be operated by

expenses20* Low initial investment and location-free rent

one person, and a plan with a low initial costprofit40* Low fixed cost ratio generates profits

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 37 -

Our Advantage : Production System
High-mix random production
With an overwhelming number of stores, even the high-mix random
production required for chilled food delivery services enjoys economies ofscale in terms of purchasing and productivity
Manufacturing line required in a
general food factory (dedicatedline for a single product group)
Meat bun factory (1 million meat buns a
day flow from a machine dedicated to
manju to the conveyor. Although there
are differences in meat buns and beanbuns, they are the same product group)

Manufacturing line required forfood distribution service (line that
can handle random production ofother varieties)
Since meals are distributed daily, the same
product group cannot be provided every day.
12 items made today, 12 items made , allshould be different

Diversity of products
In addition to more than 1,000 chilled meals, wemanufacture a wide range of frozen bento boxes suchas a variety of frozen meals, protein-adjusted meals,
and mousse meals.

In addition, for frozen bento, both pillow type and top
seal type can be manufactured.

Chilled and frozen meals

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Frozen bento with rice

Frozen bento Top Seal type- 38 -

Our Advantage : variety of menus
Food Pack
Menu：More than 1,000 items

Sold to：FC and Facilities for the Elderly
varieties ：chilled・frozen
feature：Nutritional balance for the elderly
Food pack for FC stores, which are our main company. Since it isa daily meal, it is served refrigerated so that it does not lose its
taste. In addition, we also provide frozen due to the expiration
date loss and convenience required by the facility.

Chilled Pack

After serving at FC stores

Frozen bento meals
menu： More than 80 items
Sold to：EC & FC
varieties：Health balance and large cuts
Carbohydrate calorie and protein adjustment
Moose diet and salt-restricted dietfeature：Suitable for all ages, short-time cooking, healthmanagement

We make frozen bento meals to meet diverse dietaryneeds, including convenience, time efficiency, and healthmanagement.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 39 -

Our Advantage : Product Development, Quality and Sanitation Manegement
Product Development
・Our Product Development Office is situated in our factory,
facilitating close collaboration with the production team forhigh-quality and authentic product reproduction
・Our product development team consists mainly of qualified 【qualification holders】
35 registered dietitians
registered dietitians who utilize their advanced knowledge to
4 nutritionists
achieve optimal nutritional balance and deliciousness
7 health managers(Product Development)

Quality and Sanitation Management
・Gunma Factory acquires FSSC 22000 certification, building
an advanced safety management system that meets
international standards

・Sanitation management team conducts bacterial testing,hygiene guidance and supervision in the factory.
・ In order to improve the taste of the bento boxes provided
to customers, tastings are held every day（foreign matter inspection）

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

（Bacterial testing）- 40 -

参考）リンク先一覧
Products for FC

https://www.magokoro-bento.com/

EC siteProducts for Elderly Facilities

https://kodawari-chef.com/lp

OEM Business Site

OEM Business
https://l-meal.com/

https://www.silver-life.co.jp/oem

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

EC sitehttps://magokoro-care-shoku.com/

Business introduction

Business
Introduction
https://www.silver-life.co.jp/product- 41 -

Our Advantage：Consistent System
GeneralFoodDistribution
RelatedCompanies

Manufacturer
Development
開発

Manufacturing
製造

Company
Product development
Manufacturing Factory,by Nutritionist
Affiliated Factory

Logistics
Companies

Food Distributor Business Area
販売
Sales

Logistics
物流

Own Distribution center(Frozen/refrigerated/room temperature)
picking

Franchise chains,
Facilities for the elderly,
Direct Sales /Others

配達
Delivery

Delivery to customers
from our nationwide
Franchise chain store
network

Feedback from franchise chain stores and customers

Purposeand
Features・Cost advantage due to mass production
・Product development based on customer
feedback (franchise chain stores)
・Ensure the "Safety and Security"

・Efficiency of storage anddelivery
・OEM sales expansion

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Food distribution service for the elderly- 42 -

Company Overview

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Our Management Philosophy and Mission【Management Philosophy】
We will create a society where everyone can grow old with peace of mind fromthe perspective of food.

【Our Mission】
We prepare bento’s at reasonable prices and deliver to your home every day sothat elderly people living alone or needing care who have difficulty
cooking or going out to shop can eat without any trouble.
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 44 -

Company Overview
Company NameSILVER LIFE Co., Ltd.

Representative

President, CEO : Takahisa Shimizu

Established

October 2007

Capital Stock

731 million yen (as of July 31, 2024)

Address

Highness Lofty Level 2, 4-32-4, Nishishinjuku, Shinjuku-ku, Tokyo, 160-0023,
Japan・Franchise management of food delivery service for the elderly(Service names: “Magokoro Bento”, “Haishokuno Fureai”, “Takushoku Life”)

Businesses

・Food ingredient sales to senior-care facilities(Service names: “Magokoro Shokuzai Service”, “Kodawari Chef”)
・Own brand and OEM sales of frozen bento meals(Service name: “Magokoro Care Shoku”)

Websitehttps://www.silver-life.co.jp/

Employees

530 (Full-time: 305 / Part-time: 225）As of the end of July 2024

Factory・Gunma Factory:1678-1, Nakano, Ora-machi, Ora-gun, Gunma, 370-0603, Japan・Tochigi Factory:576-6, Hakaricho, Ashikaga-shi, Tochigi, 326-0327, Japan

Distribution Center・Kazo Center:376, Sakae, Kazo-shi, Saitama, 349-0213, Japan
Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 45 -

Our History
Kazo Center

Change to TSE Standard Market
First dividend payment
Launched “Life Meal”

Oct. 2023

Feb. 2024

Started test production
at Akaiwa Cut Center

Mar. 2022

Kazo Center begins operations

Mar. 2021
Jul. 2020

Tochigi Factory begins operations
Acquired FSSC22000 certification
for Gunma Factory

Oct. 2017
Feb. 2016

Distribution center opened to Chiyoda-machi, Ora-gun, Gunma
Acquired ISO9001 certification for Gunma
Factory

Feb. 2013

Purchase of the Company factory site in
Ora-machi, Ora-gun, Gunma

Mar.2023

Change to TSE Prime Market

Apr. 2022

Launch of our third franchise chain “Takushoku Life”

Sep. 2021

Listing shifted to the TSE,First Section
Accomplished a total of 700 "Magokoro
Bento" & “Haishokuno Fureai” stores
Listed on TSE Mothers

Jan. 2020
May. 2019
Oct. 2017

Enfranchisement of all directly managed stores

Oct. 2014

Launch of OEM sales
Launch of our second franchise
chain “Haishokuno Fureai”
Launch of our food ingredient delivery service “Magokoro
Shokuzai Service” to senior-care facilities
Accomplished 100 "Magokoro
Bento" stores

Apr. 2014
Feb. 2014
Jun. 2012
Sep. 2010

Launched our first franchise chain “Magokoro Bento”

Apr. 2009

Opened the 1st directly managed
store in Setagaya-ku, Tokyo

Nov. 2007

Company establishedOct. 2007

Gunma Factory

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

Tochigi Factory- 46 -

Business Models
General consumers
Provision of bento

Kazo Warehouse

Provision of
meals

Mainly hub for logisticsof the company's own
factory productsSales
Category: Warehousing(including storage andpicking contracting)Merchandise
Sales

Business Partners
Franchise chains

Facilities for the
ElderlyFacilities for the
DisabledOEM
consignor
Frozenbento sales(1) Sales of foodingredients(2) Management
guidance

Tochigi Factory
Mainly manufactures chilled
food ingredients and frozen
food ingredients
Sales categories: franchisees,elderly care facilities, etc.,
OEM

OEM
Consignment
Product Sales

Sales of foodstuffs

In-house warehouse
In-house factory Partially outsourced

Gunma Factory

SILVER LIFE Co., Ltd.
OEM

Franchise chains

Elderly facilities,
etc.

Directselling

Mainly manufacturesfrozen bento Sales
categories: direct sales
and others,OEM (own ecommerce site sales, OEM,etc.)

Direct sales andothersCopyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 47 -

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.

Copyright©2024 SILVER LIFE CO., LTD. All Rights Reserved.

- 48 -