The Financial Results for the
Fiscal Year Ended July 31, 2021
SILVER LIFE Co., Ltd.
The First Section of the Tokyo Stock Exchange (9262)

-2-

FY2021 Financial Results（Millions of yen）
FY2021
YoY
Changes

FY2020Composition

Ratio

Comparedwith
Forecast

YoY
ChangesComposition

Ratio

FY2021
Forecast(revised inJune 2021)

Sales

10,05013.8% 100.0% 101.1%

8,832

13.2% 100.0%

9,940

Gross
Profit

2,720

4.2%

27.1% 103.8%

2,610

16.8%

29.6%

2,620

Operating
Profit839 ▲10.1%

8.4% 109.1%

934

5.6%

10.6%

770

Ordinary
Profit973 ▲10.4%

9.7% 108.1%

1,086

8.4%

12.3%

900

Profit546 ▲19.5%

5.4% 109.2%

678

6.8%

7.7%

500
-3-

Sales per Category: Franchise Chains

Sales 7,275 million yen (YoY +14.6 %)Franchise chains

Sales： stores opened last year contributed to exceeding annual plan
Stores : 934 (compared to the previous year-end ＋100）（ Millions of yen ）
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2017/7期

2018/7期

2019/7期

2020/7期

2021/7期-4-Sales per Category: Facilities for the Elderly, etc.

Sales 1,227 million yen （YoY +3.1 %）Facilities for theelderly

Cilled：the decline is bottoming down. new sales activities have stopped due to low
customer satisfaction and low order rate
Frozen：sales activities limited by COVID19 but increasing slowly
20% of facility sales（ Millions of yen ）
1,400

1,200

1,000

800

600

400

200

0

2017/7期

2018/7期

2019/7期

2020/7期

2021/7期-5-Sales per Category: Direct sales / Others

Sales 1,547 million yen （YoY +19.9%）
Direct Sales/
OthersDirect sales：Maintain a certain level of sales. Adjust advertising volume while
monitoring the production limit
OEM： While the new customers is Increasing, Total sales are decreased due tothe decreasing of contract volume of existing large customers from the policy ofdiversifying business partners（ Millions of yen ）
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2017/7期

2018/7期

2019/7期

2020/7期

2021/7期-6-Number of Stores
57 "Magokoro Bento" stores and 43 " Haishoku no Fureai" stores increase(compared to the previous year-end). 934 stores in total (as of the end of July. 2021)
Increase in the Number of Stores（number of stores）
1000
900
800

381
700

338

600

299

500
400

14

85

138

196

245

300
200
100
0

1

15

FY2008FY200988
FY2010173
FY2011

332

363

352

356

367

381

FY2013

FY2014FY2015FY2016FY2017FY2018

430

496

553

240

FY2012

Magoro Bento

FY2019FY2020

FY2021Haishoku no Fureai* 1. "Rakuraku Bento" is not included in the above number of stores since it will only be a store opened alongside a member store.
2. Since store sales start from zero and gradually increase after the opening, contribution to sales will be from the next year after
the store opens.

-7-

Analysis of Sales Figures（Millions of yen）

256
883

41

36

FC Loyalties,
etc.

Facilities for the
Elderly

10,050

Direct sales/ Others

8,832
FC Food Sales

1,217million yen increase
FY2020

FY2021-8-

Analysis of Ordinary Profit Figures（Millions of yen）

41

-95

68
FC
Loyalties,
etc.

1,086
Food sales
Profit-40
Freight costs-33
Outsourcing
expenses

Freight costs → Yamato & Sagawa frozen delivery fee
Outsourcing cost → Picking work in warehouse
Both due to increased sales of frozen products
1. Set the business to be barely profitable at first,
destroy prices, and increase sales.
2. Secure profits by reducing costs and investing inequipment after building a scale
Follow the winning pattern of the chilled products
business (for franchisees)
Business policy of prioritizing market share first andimproving profit margins later
Increase in costs during the launch of frozen products
is expected.

-31
Advertisingexpenses-21
Shareholder
benefits
Allowance

973

OthersIn the future
Freight costs→Reduction of freight costsby leave the package
Outsourcing costs → Reduction throughin-house picking by operating Tochigi
Factory and Kazo Warehouse

113 million yen decrease
FY2020

FiY2021-9-

FY2022 Forecast（Millions of yen）

FY2022 Forecast

YoY
Changes

FY2021 Results

YoY
Changes

Sales

11,72016.7%

10,050

13.8%

Gross
ProfitOperating
ProfitOrdinary
Profit

2,980

9.5%

2,720

4.2%

550

-34.5%

839-10.1%

680-30.1%

973-10.4%

Profit430-21.3%

546-19.5%

・Sales forecast is stated on the Sales Forecast per Sales Category page
・Gross profit decrease due to higher depreciation, labor costs, material costs resulting from the start of operations at the
Tochigi Factory.
・SG&A exprenses increase due to advertising expenses for aggressive sales promotion and depreciation related to thepurchase of a new warehouse.

- 10 -

FY2022 Sales Forecast per Sales Category

FranchisechainsFacilities forthe elderly

8,310 million yen （ YoY +14.2%）
Estimated number of stores at the end of the fiscal year: around 1,000 stores(around 70 stores compared to the previous fiscal year)
New food delivery service chain "Takushoku Life" to be launched, but
contribution to sales during the current fiscal year will be minimal

1,410 million yen （ YoY +14.8%）
Major renewal of "Kodawari Chef" frozen foods for facilities. With the operationof the Kazo warehouse, storage and picking costs will be reduced, aiming to
expand sales and improve profit margins. A lower-priced version of "Otegaru
Chef" is scheduled to be launched within this year.

2,000 million yen （ YoY +29.3%）
Direct Sales /OthersIn the direct sales business, specialization in refrigeration at the Gunma Factory has
eliminated the manufacturing limitations that have been an issue in recent years, andaggressive sales promotion measures will be implemented from this fiscal
year.Aggressive sales of OEM products started. With the start of operations at the
Kazo Warehouse, the company will be able to offer total services of "manufacturing +storage + picking," which is expected to significantly increase its competitive
advantage.
- 11 -

Revision of the Medium-term Management Plan
＜Background of the revision＞
Results for the FY2021 were significantly higher than originally planned due to strong sales andthe fact that some expenses were postponed to the FY2022.The Company will review thenumerical plan due to the significant difference in the assumptions made in the original plan,such as the change in the construction plan of the new warehouse.There is no change in thestrategy of "First, prioritize sales and market share" and "Later, improve profitability" in the midterm management plan.

＜Point of revision＞
Sales

・In the direct sales business, we expect to achieve a significant increasein sales compared to the initial plan by promoting sales measures centeredon advertising activities and new product development.
Sales are expected to increase significantly from the initial plan.

Cost・Increase in depreciation expenses at Tochigi Factory
・Increase in personnel expenses due to the impact of increased hiring ofexperienced personnel at the start of operations at the factory

SG＆A
expenses

・The ratio of advertising expense to net sales increased in order to expand sales in the
direct sales business.
・Increase in depreciation expenses due to changes in the new warehouse plan(significant reduction in depreciation period)・After the new warehouse goes into operation, we will be able to reduce
expenses by improving efficiency.
- 12 -

Revision of Medium-term Management Plan (Sales)＜Revised sales plan＞
Achieve the sales target for the final year of the medium-term management plan (FY2025)
one year ahead of schedule.
Direct sales and other sales in the FY2025 will be approximately three times the level of the
FY2021.
(Millions of yen)
16,80015,40013,40011,700
Direct Sales / Others
Facilities for the elderly

Franchise chains

FY2021
original Actual
plan results

FY2022
original Revised
plan
plan

FY2023
original Revised
plan
plan

FY2024
original Revised
plan
plan

FY2025original Revised
plan
plan
- 13 -

Revision of Medium-term Management Plan(Operating Profit)＜Revised plan for operating profit＞
Profit targets through 2024 revised downward
Build a structure that will enable long-term profit contribution by temporarilysqueezing profits through investment
Maximize profits after 2025 (the golden age when baby boomers will become(Millions of yen)elderly )
2,200
1,900

1,700
EBITDA
Revised
plan
EBITDAoriginal
plan

1,400
1,200

1,100
700
500
OperatingincomeFY2021
original Actual
plan results

FY2022
original Revised
plan
plan

FY2023
original Revised
plan
plan

FY2024
original Revised
plan
plan

FY2025original Revised
plan
plan
- 14 -

Revision of Medium-term Management Plan
(Depreciation and Amortization)＜Difference in depreciation plan＞
Increase due to acquisition of Tochigi factory and new warehouse
Particularly large impact of shortened depreciation period due to changes in the
new warehouse plan
(Millions of yen)
700

600

600
500

New warehouse
OthersNew
warehouseTochigi
Factory

Gunma
Factory
FY2021

FY2022

FY2023

FY2024

original Actual
plan results

original Revised
plan
plan

original Revised
plan
plan

original Revised
plan
plan

FY2025original Revised
plan
plan
- 15 -

Frozen warehouse (Distribution Center)
Overview
Address：Kazo City, Saitama Pref.
Ground space：12,153㎡
Total floor space：8,555㎡（4,500 palette storage）
Operation period：Mar.2022 （TBC)

Investment and depreciation
The existing buildings and equipment are 29 years old, and since the statutory useful life of therefrigerated warehouse has passed, the existing equipment will be depreciated in 4 years. （ Survey
Results, almost no problems with the building structure, and all the refrigeration equipment has been
replaced with the latest model. ）Therefore, the cost burden of depreciation will be much heavier for
the first 4 years only.
→We can book depreciation expenses quickly and will be profitable after 5 years.

ExistingoneLand

2.8 billion yen

Buildings andequipment

2.2 billion yen

Additional
investment

5.0 billion yen

Total

10.0 billion yen

Depreciation of warehouse180

Breakdown of Capital
Investment（plan）

160
140
120

Depreciationfor 5 month100
80depreciationin 4 years

60
40
20

Heavy depreciation burden

02022/7

Millions of yen

2023/72024/7

Buildings and equipment

2025/72026/7

Additional investment

2027/7- 16 -

Effectiveness of frozwarehouse
Storage limits will be eliminated and various costs (storage fees, shipping
fees, outsourcing fees) will be lowered.
And it will lead to new sales (expansion into warehousing business).
Response to increased
demand・Prepare for rapid growth in sales of frozen
Bento and frozen food ingredients.

Warehouse consolidation
・Consolidation of two external warehouses into one location
・Reduce shipping costs to warehouses
・Visualization and optimization of inventory

Strengthen frozen
product shipment system
・Internalization of picking operations
・Cost reduction through automation

Entering the warehousingbusiness・Expanding into the warehousing business bytaking advantage of our large warehouse
・Storage and picking of other companies'
products is also handled.

- 17 -

Sales promotion using “Hello Kitty”
Use of Hello Kitty as product logo from August 1, 2021
【Promotion Examples】<Free tasting tickets><business card>

Current market for frozen Bento and food delivery for the elderly

Due to the immaturity of the market, promotional activities using high-profile characters have As the market isstill in its infancy, promotional activities using high-profile characters have been virtually unheard of since thedawn of the industry.
The reality is that customers buy from a company name they have never seen before based on their impressionof the brochure or the price.

It is important to gain the trust of customers.When a person is considering a food service for the firsttime, looking at one of our brochures with the familiar Hello Kitty on it will make them feel more
comfortable in choosing one of the many unfamiliar companies.

This will be the final push for you to choose our products©2021 SANRIO CO., LTD. APPROVAL NO. L６２８４３８- 18 -

Third FC Chain “Takusyoku Life" Started
In 2025, before the number of elderly people aged 75 andover begins to increase at a rapid pace, we will expand oursystem now to become a food infrastructure for the elderly.
to become a food infrastructure for the elderly.
Now that the production system has been established, weare able to supply sufficient products. Now is the time tofurther expand the store network.

2021

2014
2009

2013
Gunma Factory

Established a production
system to support the
opening of new stores.

2021
Tochigi Factory©2021 SANRIO CO., LTD. APPROVAL NO. L６２８４３８- 19 -

ESG Initiatives
Environmental
Initiatives
・Introduction of environmentally friendly electric bikes
We are promoting the introduction of “AA Cargo,”
an electric three-wheeled motorcycle fordelivery, to our franchise stores "Magokoro
Bento" and "Fureai for Food Delivery.
As a result, a single motorcycle is expected toreduce carbon dioxide emissions by 1,044 kg
per year. Stores can also expect to save on fueland maintenance costs compared to gasoline
vehicles.
We will continue toproactively promote
environmentally friendly
activities as a group.

Human Rights
Initiatives
・Elimination of child labor and forced labor
We understand the minimum age requirements ofinternational labor laws and prohibit all forms ofchild labor and forced labor.
We have also confirmed with our suppliers that
there is no child labor or forced labor, and thatthey have a policy and attitude to deal with suchcases. We have also confirmed that our suppliers
have policies and stances to deal with suchcases.
We will continue to carry out our corporate
activities in consideration of human rights.
・Conduct harassment training
In our company, all managers and above are
required to attend harassment training, and weare working to ensure that all employees areaware of this.

- 20 -

Company Overview- 21 -

Our Management Philosophy and Mission【Our Mission】
We prepare bento’s at reasonable prices and deliver to your home every day sothat elderly people living alone or needing long-term care who have difficulty
cooking or going out to shop can eat without any trouble.

- 22 -

Company Overview
Company NameSILVER LIFE Co., Ltd.

Representative

President, CEO : Takahisa Shimizu

Established

October 2007

Capital Stock

724 million yen (as of July 31, 2021)

Address

Highness Lofty Level 2, 4-32-4, Nishishinjuku, Shinjuku-ku, Tokyo, 1600023, Japan・Franchise management of food delivery service for the elderly(Service names: “Magokoro Bento”, “Haishoku no 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 products(Service name: “Magokoro Care Shoku”)

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

Employees

337 (Full-time: 128 / Part-time: 209）As of the end of July 2021

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

195-1, Akaiwa, Chiyoda-machi, Ora-gun, Gunma, 370-0503, Japan- 23 -

Our History
Date

Main store / Business development

Stores / Business development

Oct. 2007 Company established in Setagaya-ku, Tokyo
Nov. 2007
Apr. 2009
Sep. 2010

Opened the 1st directly managed store in Setagaya-ku, Tokyo
Launched our first franchise chain “Magokoro Bento”
Accomplished 100 "Magokoro Bento" stores
Launch of our food ingredient delivery service “Magokoro ShokuzaiJun. 2012
Feb. 2013

Service” to senior-care facilities
Purchase of the Company factory site in Ora-machi, Ora-gun,
Gunma

May. 2013
Aug. 2013 Absorption-type merger with Next Community Co., Ltd.
Feb. 2014
Apr. 2014
Oct. 2014 Enfranchisement of all directly managed storesFeb. 2016 Acquired ISO9001 certification for Our factory (Kanto region)
Mar. 2016 Head office moved to the current site in Shinjuku-ku, Tokyo

Launch of our second franchise chain “Haishoku no Fureai”
Launch of OEM sales

Accomplished a total of 500 "Magokoro Bento" & “Haishoku no Fureai”

Sep. 2016
Oct. 2017

Accomplished 300 "Magokoro Bento" storesstoresDistribution center opened to Chiyoda-machi, Ora-gun,
Gunma

Oct. 2017 Listed on TSE Mothers
May. 2019

Accomplished a total of 700 "Magokoro Bento" & “Haishoku no Fureai”
storesJan. 2020 Listing shifted to the TSE, First Section- 24 -

Business Model
Schematics of our Business Operation
FY2021 Sales Percentage

Raw materials providers / Out-sourcing factories
Foods,
Cooked foods

Loyalties,
ロイヤリティ等
etc.

Payment

Our
Factory

Our
Company

Food& Ingredients
食材販売売上高Net Sales

Management
Cooked foods

Frozen
Bento

Deliveryfees

Payment
loyalties,
Etc.

Payment

553 storesnationwide*

Franchise chain
stores
381 storesnationwide*

Bento
Payment
General Customer

OEM supplier

General Customer

Food
ingredientpayment
Food
Ingredient,
etc.

Foods
Delivery

Facilities for the
Elderly, etc.

Mainly Wholesale Ingredients
A continuous profit system in which ourfood net sales increases proportionally to
the growth in net sales (number of meals)of franchise chain stores.
(Food net sales include sales for facilities
for the elderly, OEM, and in-house sales)*As of the end of July 2021
- 25 -

- 26 -

(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)(ten thousand)

2,417 2,446 2,387

2,500

2,180 2,288

Baby boomer generation will
become late-stage elderly
2,000
1,734
1,613
1,517
1,407

1,500
1,301

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

1,643
1,154 1,133

1,424

900

1,258

699
597

516
500
309
107

376
164

366
224

Future Forecast

0

Population age 65-74

Population aged over 75

Source: Cabinet Office, White Paper on the Aging Society- 27 -

(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
4,000
2,000

Dependent Population(age 65+)
18.26 million
8.86 million

33.47 million

37.82 million

37.04 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-4,000-6,000The increase of expenditure toward COVID-19 measuresin 2020 makes it even more difficult to secure financial
resources for long-term care and welfare-8,000Supporting Population(age 15~64)-10,000

Future Forecast

Source: Cabinet Office, White Paper on the Aging Society(cases)Bankruptcies in Elderly Welfare / Nursing Care Businesses
108 111 105 111120(90% of net sales rely on the long-term care insurance
system) The long-term care business is destined to
become difficult in the future.

100

76

80

60

46
35

40
20

15

54
38
27

23

54

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

33

19

0
2005

2007

2009

2011

2013

2015

2017

2019

Source: Tokyo Shoko Research, 1st half of 2020 "Elderly Welfare / Nursing Care
Business" Bankruptcy Situation- 28 -

- 29 -

Our Advantage: FC Network stores opened➢ Low-cost opening (non-visit-type stores with no restriction to location / no large kitchen equipment required)➢ The simple process of preparing cooked ingredients and delivering (the business can be started alone)➢ Stable supply of high-quality cooked ingredients from FC headquarters (no cooking experience required)This helped the number of stores to increasesignificantly in a short period of time

(Stores）
1,000
900

800

381

February 2014

700

Launch of our franchise chain“Haishoku no Fureai”

338

600

299

February 2013
500

Acquired Kanto region factory

April 2009

400
300

85

138

Food Distribution Service
No. 1 Number of Stores *7

November 2007

200 Launched our first directly
managed store in Setagaya3
100 ku, Tokyo09

Launched our first franchise chain“Magokoro Bento” in Ota-ku, Tokyo

2
14

245

196

1

1
14

85

FY2008FY2009FY20104
169
FY2011238

FY2012323

FY2013

Magokoro Bento

361

352

356

367

381

FY2014FY2015FY2016FY2017FY2018Haishoku no Fureai

Directly Managed Store430

FY2019496

FY2020553

FY2021* Our company investigation- 30 -

Production System allows Multi-Variety

Our Advantage: Random Production

Our factory 3 days menu

*this is an image➢ Manufacturing line required in a general foodfactory (dedicated line for a single productgroup)
A meat buns dedicated factory (1 million meat buns produced
daily flow from a buns dedicated machine to a conveyor.
Although there are meat buns and bun with bean-jam filling
differences, they are "Principally the same product group").

➢ Manufacturing line required for food distribution
service (line that can handle random production ofother varieties)
Since meals are distributed daily, the same product group cannot beprovided every day. 12 items made today, 12 items made tomorrow, 12
items made on the 3rd day, all should be different.

Only few factories have multi-variety random production lines which are thought to beinefficient (Usually cannot be maintained without a certain sales scale like our company)↓
As a result: Managing low-cost manufacturing that generates profit
despite the large variety of products- 31 -

Production System that provides an

Our Advantage: abundant Menu with Low Prices➢ Tenderness, seasoning, and nutritional balance suitable for the elderly to eat➢ Rich menu variety (more than 1,000 items) you will never get tired of for your everyday meals➢ Delivered to franchise chain stores refrigerated (chilled) to improve texture (regular meals)
Regular meal
➢ Mainly Japanese food bento for thegeneral elderly. Consideration to
nutritional balance and ease of eat

Komachi (smaller portion)➢ A bento with fewer calories, less salt,

and a smaller portion of a regular mealfor elderly people with smaller appetites

Puréed meal
➢ A puréed meal bento which looks thesame, for elderly people who havedifficulty chewing and swallowing

Price：
450yen+tax～

Price：
320yen+tax～

Price：
540yen+tax～（sides dish only）（sides dish + rice）（sides dish only）

Calorie-adjusted meal

Protein-adjusted meal

➢ A bento for people who need to calculate➢ A bento for people who need to calculate

calories and salt intake. Manufactured to
be almost 240 kcal no matter what you
eat

protein intake, such as people who go toa dialysis clinic regularly. Protein is 10g orless per meal

Price：
600yen+tax～

Price：
700yen+tax～（sides dish only）（sides dish only）- 32 -

Our Advantage➢ A p r o d u cti on l i n e t h a t c a n m a nuf a cture r e f r igera ted ( c hi lle d)

Production Systemi ngr e dients s pe c i alizing i n f ood di s t ribution➢ Fl e xi b l e p r o d u cti on s ys t e m c a p a bl e o f m ul t i -va riet y m ul t i -production➢ M e rit of s c a l e a nd r e a s ona ble pr i c e l i s ting d u e t o ma s s p r o d ucti on➢ "No. 1” number of stores in the industry (An internal investigation of Magokoro

Franchise Chain
Network

Bento & Haishoku no Fureai total) of our food distribution franchise chain network forthe elderly (834 stores total as of the end of July 2020)➢ A store network that covers the last mile to your home

Our biggest advantage is the consistent system we have from manufacturing to delivery- 33 -

Our Advantage (summary) Consistent System
GeneralFoodDistribution
RelatedCompanies

Manufacturer
Development
開発

Manufacturing
製造

Company
Product development
Manufacturing Factory,by Nutritionist
Affiliated Factory

Logistics
Companies

Logistics
物流

Food Distributor Business Area
販売
Sales

Picking of Freezing /Franchise chains,
Refrigerating Warehouse Facilities for the elderly,(October 2017)
OEM/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

Food distribution service for the elderly
Number of stores: 834(As of the end of July 2020)- 34 -

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.

- 35 -