FY23/9 Financial Results Summary
FY24-26 Medium-term Management Plan
FOOD & LIFE COMPANIES LTD. [3563.T]
November 10, 2023
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CONTENTS■ FY24-26 Medium-term Management Plan
Strategic Framework

Domestic Business
Overseas Business

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FY24-26
Medium-termManagement Plan

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FY22-24
Mid-term Plan

FY22-24 Key Initiatives and Results (at the end of FY23)

FY22-24 Strategic Framework

Results (at the end of FY23)• Enhancing competitive advantage throughprocurement
Sophistication of primary industry management• Established a JV, ‘Marine Verse Ltd.’ with TAKUYO CO., LTD.,
one of the largest companies in sea bream aquaculture, in April
2022. Through ‘Marine Verse,’ the initiatives aimed at the stableproduction and utilization of fishery resources, especially sea breamand yellowtail, which are F&LC's main commercial products, havestarted moving forward.

• Reducing of waste and costs through DX
Evolving supply chain management based on AI
demand forecasting / Logistics management acrossbrands/regions• AI demand forecasting system successfully implemented indomestic Sushiro business, and a certain degree of cost reduction
effect has been observed. Will collect more data with a view toimplementing this system to other brands of F&LC.

• Strengthening and expanding existing retail brands
Further brushing up domestic retail brands / Continuing
store opening / Overseas revenue JPY 90 bil.

• Sushiro store count expanded to 641 stores
A trial operation of a new Sushiro store model has started• Overseas business revenue JPY 66.1 bil.
Overseas revenue % in group total revenue approx. 22%.
Operating in 6 overseas markets.
The number of overseas stores accounts for 12 % in group total.

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4FY24 THEME

Discovering new tastiness,
Sharing moments of joy.

WOW!
the World with

“Yummy!”Copyright © FOOD & LIFE COMPANIES LTD. All rights reserved. Strictly private & Confidential.

5

FY24-26
Mid-term Plan

FY24-26 Mid-term Plan and Long-term Vision■As a step toward realizing F&LC's long-term vision, accelerate overseas expansion and rebuild the businessplatform to respond to the changes in the external environment and achieve sustainable growthPresent

FY23
Revenue JPY 301.7 bil.
OP
JPY 11 bil.
OP Margin
3.6%

New Medium-termManagement Plan (3yrs)

Long-term Vision

FY24 – FY26
Revenue JPY 520 bil.
EBITDA JPY 57 bil.
OP
JPY 35 bil.
OP Margin
6.7%

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Discovering new tastiness,
Sharing moments of joy.

Revenue over JPY 1 tri.
over 15 %EBITDAOP Margin over 10 %over 20 %ROE
6

FY24-26
Mid-term Plan

Recognition of external environment■Japan: Dining industry environment has changed dramatically in post-COVID, that there are many challenges ahead.
■Overseas: While the situation varies depending on country, the popularity of Japanese food and sake is on the rise worldwide.

Post-COVID Changes●Slow recovery in customer counts at night✓ Revenue of food service companies recovered to pre-COVID levels
due to higher unit prices.
✓ On the other hand, customer counts have not yet returned fully,
only to less than 90% of the pre-COVID level.
✓ The recovery of customer counts at night in particular has beenslow. Customers seem to continue to go home early at night.

●Shift to more use of takeouts and in-home dining✓ Percentage of consumers who prefer having dinner at homeincreased during COVID and that percentage remained high postCOVID.
✓ Consumer spending for in-home dining meals has been on the rise.

●Increased awareness for hygiene control
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Common Challenges in the Dining Industry●Rapid population decline✓ Decrease in population = Decrease in customers and labor force✓ Rapid decline in the working population due to low birthrate andaging population✓ Decrease in the number of persons per household. Single-personhouseholds account for about 40% of all households in 2040.

●Urban concentration of population and depopulation ofrural areas✓ Functional concentration in urban areas progresses✓ Aging of population and depopulation of rural areas also progress●Spread of deflationary mindset✓ Consumption price index in services has remained flat for many
years and is less tolerant of price increases than in goods.

●Increase in costs✓ Rising raw materials, energy prices, and labor costs✓ Cost increase due to taking measures for SDGs
✓ Cost to secure/maintain safety store operating environment7

FY24-26
Mid-term Plan

Key Initiatives

Initiative ➊ Continuing to expand overseas business with its revenue reaching 40% of the group total✓ Expanding our stores to more areas/cities in Mainland China✓ Entry to U.S and Indonesian markets✓ Introducing all F&LC brands in overseas markets

Initiative ➋ Domestic business : Remodeling and optimization of store portfolio✓ Sushiro : Implementing auto-waiter system for evolving customers’ dining experience and for labor saving✓ Kyotaru : Closure of unprofitable stores / Enhancing the brand power with strengthened products and organization✓ Sugidama : Further improvement of store profitability via remodeling / Expansion with FC

Initiative ➌ Establishing a foundation for sustainable growth✓ Building a foundation for sustainable use of marine resources through aquaculture and food tech
✓ Reducing food loss by leveraging supply chain management and AI✓ Taking measures for SDGs (for protection of environment)✓ Investing in human capital (expansion of training program, etc.)

FY26 Revenue JPY 520 bil.

EBITDA JPY 57 bil.

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OP Margin 6.7%
8

FY24-26
Mid-term Plan

TOPIC :
Renewal of F&LC structure to achieve mid-to-long-term vision◼ As part of the efforts to create a structure to ensure continued growth in an everchanging business environment, in October we strengthened our business foundation
by appointing COOs to each of our overseas and domestic businesses and a CFO to apost overseeing our corporate division.
Key
Brandsin Japan

Koichi Mizutome
President & CEO

Key
BrandsOverseas

Hiroshi Ogawa
Senior Executive Corporate Officer
CFO / Corporate Strategic Planning

Hiromitsu Kato

Masahiro Yamamoto

Vice President, Corporate Officer
COO / International Business

Vice President, Corporate Officer
COO / Japan Business

Japan

Japan

Japan

Japan

Korea

TaiwanHong
Kong

Singapore

ThailandMainlandChina

Indonesia

U.S.A.

AkindoSushiro

FOOD & LIFEINNOVATIONS

Kyotaru

F&LC
SupportSushiroKorea

SushiroTaiwanFOOD & LIFE
COMPANIES
HONG KONG

Sushiro GH
Singapore

Sushiro GH
ThailandSushiro
China
Investment

Indonesia
SushiroRestaurants

FOOD & LIFE
COMPANIESUSA

Guangzhou
SushiroRestaurants

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ShenzhenSushiroRestaurants

ChengduSushiroRestaurants

9

FY24-26
Mid-term Plan

TOPIC:
F&LC is a supporter of Expo 2025 Osaka, Kansai, Japan

F&LC is an Expo 2025 Osaka, Kansai
Signature Pavilion "EARTH MART" Silver Partner

🄫Expo 2025

An image of venue for Expo 2025 Osaka, Kansai

Provided by: Japan Association for the 2025 World Exposition

An image of venue for Expo 2025 Osaka, Kansai

Provided by: Japan Association for the 2025 World Exposition

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An image of venue for Expo 2025 Osaka, Kansai

Provided by: Japan Association for the 2025 World Exposition

10

FY22-24
Mid-term Plan

FY22-24 Mid-term Plan KPIs and Results (at the end of FY23)■Revenue of FY23/9 reached a record high of over 300 bil. JPY, but profits were significantly lower than
expected due to changes in the external environment, resulting from COVID, depreciation of yen, andvarious cost increases.

Revenue (consolidated)
420 bil JPY
Operating Profit (consolidated) 33 bil. JPY

FY22–24
Mid-term KPIs

Revenue (consolidated)
FY21-23
CAGR

330＋11.9%

bil. JPY

FY21
Actual281.3
bil. JPY

16.1%
7.9%

Operating Profit (consolidated)abil. JPY

420.0
bil. JPY

240.8

Revenue CAGR FY21-23
OP Margin (consolidated)

301.7

22.9

bil. JPY

bil. JPY

vs. LY＋16.8%

vs. LY＋7.3%

FY22
Forecast

FY23
Forecast

FY22-24 Mid-term Plan

FY24
Planned

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110

101

OP
Margin9.5%

bil. JPYOP
Margin3.6%

OPMargin3.6%

FY21
ActualFY22
Forecast

FY23
Forecastbil. JPY

FY22-24 Mid-term Plan

FY24
Planned11

FY24-26
Mid-term Plan

FY24-26 Mid-term Plan KPIs
FY22

(Billions, JPY)

ActualFY23

Actual

FY24

FY25

FY26

Forecast

Forecast

Forecast

FY23-26
CAGR

Revenue

281.3

301.7

350.0

440.0

520.0

19.9%

EBITDA

25.2

25.7

26.0

42.0

57.0

30.5%
47.1%

（8.9％)(8.5%)（7.4％)（9.6％)（11.0％)

10.1

11.0

11.5

24.0

35.0

(3.6%)(3.6%)(3.3%)(5.5%)(6.7%)

3.6

7.9

6.5

14.0

21.5

(1.3%)(2.6%)(1.9%)(3.2%)(4.1%)

ROE

5.7%

11.8%

9.0%

17.6%

22.7%

ー

EPS

31.16 yen

68.28 yen

56.19 yen

121.02 yen 185.86 yenーOperating
ProfitProfit attributable toowners of the parent

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39.6%

12

FY24-26
Mid-term PlanCAPEX■The source of CAPEX funds will be operating cash flow and funds to be raised through flexible
financing methods. We plan to invest approximately 90.5 bil. JPY from cash after dividends over
the three-year period of the medium-term management plan to expand overseas business andstrengthen domestic business.
OperatingCash Flow

Dividend(forecast)(Billions, JPY)

7.8

CAPEX

90.5
39.5

10.2

Domestic

28.0

44%

(% in total CAPEX)

51.0

CAPEX for overseas business

CAPEX for domestic business

Overseas56%(% in total CAPEX)

FY24-26 Total (3 yrs)
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30.0 32.5
approx.
approx.

18.4

approx.

14.0

13.0

12.5

approx.

9.9
approx.
approx.

8.5
FY23
Actual14.0

approx.

17.0

approx.

20.0

Mainly for new store openings
and remodeling of existing
stores in Japan. Also planning toinvest in Kyotaru Central
Kitchen to enhance its
production
capability.
◼ CAPEX for Domestic Business

FY25

FY26

Forecast Forecast

Forecast

FY24◼ CAPEX for Domestic BusinessFor acceleration of overseas
store expansion, mainly in
Mainland China.

13

FY24-26
Mid-term Plan

Upstream Initiatives for a Sustainable Future for F&LC Business◼ F&LC’s purchases are currently 65% natural and 35% culture, but Japanese fisheries/culture production has
been on a downward trend since peaking in 1984. The pelagic and offshore fisheries have also seen adecline in natural fish catches due to the 200 nautical mile limit and declining sardine catches. Demand forfarmed fish is increasing.
In addition to being safe and secure, the culture industry can provide fresh fish to customers because of its
traceability and the ability to transport live fish. In addition, the ability to transport live fish allows the fish to
be served to customers in a fresh condition. By investing in the future of the culture industry and developing
together, we will work to realize a sustainable future for the F&LC business.
Catches/Harvesting Volume by Sector of Fishery
10

6

2

Pelagic FisheriesInland Water
Fisheries / Culture

Off-shore Fisheries

Marine養殖
Culture海面
8Output (Million tons)(Million tons)

Y1984:
12.82 mil. tons (@peak)Marine漁業
Fisheries
海面

Culture %
養殖率
(%)

6

80%

Marine Fisheries

3.19 mil. tons

Marine Culture

0.92 mil. tons

70%

Inland Water Culture 0.03 mil. tons

60%

50%
40%

4

Coastal Fisheries

2

Marine Culture

0

30%
20%
10%

% of culture in total volume (%)

8

4

10

Y2021:
4.17 mil. tons

0%0

Source: Ministry of Agriculture, Forestry and Fisheries, Data are based on the Survey on Marine Fishery Production and the Survey on Inland Water Fishery and Aquaculture Production.

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14

FY24-26
Mid-term Plan

Upstream Initiatives for a Sustainable Future for F&LC Business◼ Established a JV, ‘Marine Verse Ltd.’ with TAKUYO CO., LTD., one of the largest companies in sea bream aquaculture, in
April 2022. Through ‘Marine Verse,’ the initiatives aimed at the stable production and utilization of fishery resources,
especially sea bream and yellowtail, which are F&LC's main commercial products, have started moving forward.
Compared to wild fish, farmed fish is often distributed outside the market. By working with the upstream
producers/suppliers, we can provide a safer, more secure, and more stable supply of farm-raised fish. In the future, we will
deepen our involvement in seeds and seedlings, feed, and equipment, and support the efforts for further innovation..

Upstream (producer)

Mid-Stream

Down-Stream(processing, logistics)(retail)

Seed Vender

Wholesale
Producer

Feed Vender(trading company,
wholesaler in the
production area)

Equipment/Facility
VenderMore involvement in the Upstream
to promote the further innovation
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Negotiate purchase volume and price,then sign the contracts
15

Domestic Business
FY24-26
Medium-termManagement Plan

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Through the dining scenes centering on sushi
We provide deliciousness and joy to the people throughout Japan.

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17

FY24-26
Mid-term Plan

Domestic Business: FY24-26 Mid-term Plan KPIs

Key Initiative

Target
FY23

FY24

FY25

FY26

(Billions, JPY)

ActualForecast

Forecast

Forecast

Revenue

235.6

250.0

280.0

295.0

EBITDA*1

Operating *1
Profit

21.6

22.0

28.5

30.5

(9.1%)(8.8%)(10.2%)(10.3%)

11.0

13.5

20.0

21.0

(4.7%)(5.4%)(7.1%)(7.1%)# of Stores

979

981~
988

1,007~
1,019

1,046~
1,063

Sushiro

641

645~
646

651~
653

657~
660

Kyotaru

157

140~
142

138~
140

136~
138

Misaki

102

101~
102

102~
104

108~
111

Sugidama

79

95~
98

116~
122

145~
154

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Integrated management of business & store portfolio

Sushiro• Update of customers’ dining
experience : Further improvement of
product quality / Investment in existing
stores (CAPEX) / R&D

Kyotaru・Misaki• Thorough improvement of profitability :Closing unprofitable stores /Strengthening brands throughenhancement of product power andreinforcement of team/organization.

Sugidama• Differentiation of service quality :• Further improvement of profitability /Store expansion through both directoperation and franchising*1 : ロイヤリティ支払い前の数値18

FY24-26
Mid-term Plan

Domestic Business: FY24-26 Mid-term Plan KPIs

■Under the FY24 theme of "Select and Focus," further refining stores/brands with highpotential and close unprofitable ones to make a big leap forward to FY25 and FY26.

Revenue (overseas)(Billions, JPY)

EBITDA
295*1(Billions, JPY)

30.5

25%
236

*1

(overseas)

21(Billions, JPY)

91%

41%

280
243

Operating Profit(overseas)

20

29

250

23

22

22

14
11

11

FY22

FY23

FY24

FY25

FY26

FY22

FY23

FY24

FY25

FY26

FY22

FY23

FY24

FY25

FY26

(Actual)(Actual)(Forecast)(Forecast)(Forecast)(Actual)(Actual)(Forecast)(Forecast)(Forecast)(Actual)(Actual)(Forecast)(Forecast)(Forecast)Previous Mid-term Plan

Previous Mid-term Plan

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Previous Mid-term Plan
*1 : ロイヤリティ支払い前の数値

19

FY24-26
Mid-term Plan

Domestic Business: FY24-26 Mid-term Plan KPIs
Japan Sushiro(Billions, JPY)

Revenue

FY23
ActualFY24
Forecast

FY25
Forecast

Kyotaru Business

Other Business

FY26
Forecast

FY23
ActualFY24
Forecast

FY25
Forecast

FY26
Forecast

FY23
ActualFY24
Forecast

FY25
Forecast

FY26
Forecast

205.9 219.6 246.0 257.0

24.3

24.4

26.0

28.0

5.4

6.0

8.0

10.0

20.7

21.0

26.7

27.8

0.5

0.7

1.2

1.7

0.4

0.3

0.6

1.0

11.1

13.0

18.7

19.0

0.1

0.5

1.0

1.4 ▲0.1

+0.0

0.3

0.6

*1

EBITDA*1

Operating
Profit*1 : ロイヤリティ支払い前の数値

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20

FY24-26
Mid-term Plan

Domestic Business: Brand Features■We will propose customers a wide range of dining scenes by maximizing the uniquecharacteristics of each brand's products, location, and hours of operation, as well as thediverse store sizes and price ranges.
SushiroKyotaru

Kaitensushi Misaki

Sugidama

F&LC's core brand. Revolving sushi
store focusing on tastiness andoffers quality sushi for value prices

Specializing in takeout of Chakinsushi and other Kamigata (Osakastyle) sushi

Gourmet revolving sushi store
where customer can enjoy
exquisite sushi made with a little
extra care by our craftsmen

Popular sushi bar serving
delicious and inexpensive sushi
and a wide selection ofJapanese sake.

Suburban
Location Semi-Urban
Urban

Near/in front of station
Location Commercial facility
B-to-B business

Location

Near/in front of station
Commercial facility

Product

Edomae (Tokyo-style) sushi
Side menu
Alcohol

Product

Kamigata (Osaka-style) sushi(ambient, frozen)

Product

Edomae (Tokyo-style) sushi
Side menu
Alcohol

Store
Hour

Lunch～Late Night
11a–11p

Store
Hour

Lunch～Dinner
10a-8pStore
HourLunch～Late Night
11a-10:30p

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Location

Near/in front of station
Shopping arcade

Product

Edomae (Tokyo-style) sushi
Bar menu
Alcohol

Store
Hour

Lunch & Dinner
11a-2:30p
5p-11p※Store hours vary depending on the day of the week and on stores21

FY24-26
Mid-term Plan

Domestic Business: Brand Features■We will propose customers a wide range of dining scenes by maximizing the uniquecharacteristics of each brand's products, location, and hours of operation, as well as thediverse store sizes and price ranges.

Dining Occasion
KaitenSushi

Lunch~Night
Kaiten Sushi ,Gourmet Kaiten Sushi

Price Range
High

・・・

Store Size
Large

150～200

Medium50～100

Seats Per-Store～ 2500 yen

Food
&
Drink

Maily at NightSushi Bar ,Traditional-style
Sushi Restaurant

Medium～ 2000 yen

Seats Per-Store(Alcohol)TO・Standing
Sushi Store～ 1500 yen

Lunch~Night
Takeout ,Quick meal

Low

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～ 1000 yen

Small

TO Storeabout

20 seats(sanding sushi store)

22

Domestic Business: Sushiro Brand, Strategic Plan for Growth⚫ Declining domestic population⚫ Changing consumer preferences in✓ Shrinking labor force
post-COVID✓ Rapid population decrease✓ Increased hygiene awareness
マクロ環境
particularly in rural areas✓ More focus on time-performance⚫ The government driving wage hike✓ Gradual increase in minimum wage

MeasureChanging Willingly
Change in Investment Strategy：
From investing in new openings to investing in existing stores⚫ Damage to Sushiro brand image due to violation of the Act against
Unjustifiable Premiums and Misleading Representations, etc.
⚫ Decrease in relative price competitiveness
マクロ環境✓ Revised Sushiro sushi price✓ Our competitors didn’t change or kept the change to a minimum

Maintaining Focus
Improving customers’ dining experience in stores

Store Opening

Facility /Equipment

R&D

Training

Product

Marketing⚫Focus on opening stores inurban areas where population
growth is expected⚫Introducing auto waiters inapproximately 260 stores overthe next three years to prepare
for the decline in the workforce.

⚫Implementing Digital Sushiro(Digi-ro)⚫Developing "sushi sommeliers"
through strengthened training⚫Changing store design⚫Establishment of acomprehensive system fromknowledge learning and practicalskills training⚫Expand product lineup by
utilizing white plate (to offer
seasonal fish, or otherreasonable / value menu, etc.)⚫Strengthen communication of"commitment to sushi" as adifferentiating factor⚫L-ratio reduction through laborsaving equipment⚫Reduced staff workload⚫Increased customer
convenience⚫Fostering sense of excitement⚫Improved sense of comfort⚫Improved product quality⚫Heightened customer
satisfaction⚫Improved product quality⚫Fostering a sense of higher
value-for-money offer⚫Improved profitability throughflexible pricing⚫Improved brand image⚫Strengthened customer loyalty⚫Consolidation of stores in thesame area

Expected
OutcomeOwn Unique
Environment

Macro
Environment

Current
Environment

FY24-26
Mid-term Plan

⚫Ensuring Profitability⚫Changes to incentive
programs for repeat customers

Evolve Sushiro model for the future
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23

FY24-26
Mid-term Plan

Domestic Business: Trial of a new Sushiro model for the future■Aiming to create a more enjoyable and convenient dining experience, Sushiro has been trialing a new store
model at three locations in Japan. The revolving sushi is revived on a digital lane and the equipped with minigames where customers can win prizes. Sushiro continues to evolve with our customers to go one step further
into the future of the revolving sushi industry.

Digi-roWide touch-sensitive displays installed at each table allow
customers to order directly from the menu screen or from the digitallane, making dining more convenient and enjoyable.

Interior design enhancing tastiness
The renewed interior design fosters liveliness and excitement andcreates a delicious atmosphere that will earn lots of "Yum!” fromour customers.
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24Domestic Business:
Sushiro / Misaki / Sugidama Brand, Strategic Plan for Growth⚫ Increase in the ratio of dual-earner families,
leading to people leaning more and more
toward meals produced outside home.
⚫ Increased competition in the in-housefoods business✓ Supermarkets, convenient store, drug
store, etc. also started selling chilled
マクロ環境
products✓ Increase in consumers who buy frozen
food⚫ Depopulation of rural areas✓ Supermarkets in many rural areas areclosing down

⚫ Shrinking and aging population✓ Decrease in population going out toprocure food✓ Decrease in labor force⚫ In izakaya industry, many people go homeearly, continuing the trend of drinking at
home after COVID.

Measure⚫ Kyotaru / Misaki : Aging employees⚫ Kyotaru / Misaki : Facilities getting old⚫ Kyotaru / Misaki : Low customer liquidity✓ Many customers are seniors, and they aree the regular/repeat customers✓ Not many young or new customers – low customer liquidity⚫
Sugidama : Intensified competition in Sushi Izakaya (bar) industry
マクロ環境

Changing Willingly

Maintaining Focus

Kyotaru：Shift to a business of selling the Kyotaru brand as a productAll 3 brands：Updating customer experience in stores, improving profitability
Misaki：Further strengthening of PR/marketing
Sugidama：Strengthening differentiation, Increasing brand recognition⚫ Shift from the idea that the store business is the main business, to the idea of using stores as billboards for selling BtoC/BtoB⚫ Expand business using Kyotaru Central Kitchen to sell sushi (i.e. frozen sushi) with guaranteed good taste

Expected
OutcomeOwn Unique
Environment

Current
Environment

現状
現状
認識
認識

Macro
Environment

FY24-26
Mid-term Plan

⚫ Maximize the brand value as a product by strongly promoting the "trust and stability in taste" that only a long-establishedbrand can offer.

by FC store expansion

Store Opening

Remodeling

Facility /Equipment⚫Kyotaru / Misaki : Closure of
unprofitable stores andselective store openings⚫Sugidama : Accelerating
franchise store openings /Opening of flagship store⚫Kyotaru : Remodeling⚫Misaki : Re-branding /Implementation of Auto Waitersystem⚫All 3 brands : Investing in
Kyotaru Central Kitchen(Reinforcement of frozen sushi
production facilities)⚫All 3 brands : Reinforcing
recruiting new graduates /Reinforcing hiring part-timer⚫All 3 brands : Further
strengthening PR/marketing⚫FLI (FOOD & LIFE
Innovations Co., Ltd.) is tofunction as brand incubator, todevelop new businesses.

⚫Kyotaru / Misaki : Improving
Profitability⚫Sugidama : Increased brandrecognition / Improved andstandardized operational
quality⚫Improved sales, profitability
and customer satisfaction⚫Higher turnover, lowered Lratio⚫Increased production capacity⚫Lowed hygiene risks⚫Improved profitability byimplementing labor-saving
measures⚫Revitalization of organizationand stores⚫Improved brand awareness⚫Capturing new customers /Achieved higher store visit
frequency⚫New business / branddeveloped and launched.

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RecuitingPR

New BizDevel.

25

FY24-26
Mid-term Plan

Domestic Business: Remodeling stores for the future (Kyotaru Co., Ltd.)■ ‘More Delicious and Always New” The stores of Kyotaru Co. Ltd., which has been enjoyed by many people
in its 90-year history, are being remodeled to create a new legacy for the future. Please look forward to evenmore delicious and more enjoyable future Kyotaru stores.

Standing Sushi Misaki(‘Shinjuku Keio Mall Store,’ re-branded on November 11, 2022)‘Sushi Misakimaru’ has been remodeled into ‘Standing Sushi Misaki’ forcustomers who want to stop by for a quick bite. In addition to the Misakibrand's delicious sushi, known for its craftsmanship and red rice, This
Standing Sushi Misaki offers highly convenient service through mobile
ordering.

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Kyotaru (‘Totsukana Mall Store,’ remodeled on July 6, 2023)
The new logo and façade have a brighter atmosphere, making thestore more welcoming to customers. Remodeling of Kyotaru madeshopping more enjoyable with displays that maximize the appeal of
products.

26

Overseas Business
FY24-26
Medium-termManagement Plan

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FY22-24
Mid-term Plan

Overseas Business:
FY22-24 Mid-term Targets and Results (as of the end of FY23)

FY22-24 Key Initiatives•

Accelerate growth through post-COVID measuresand selective investments according to the growthphase of each area
1.

2.
3.
4.

•

Taiwan, Hong Kong : Focusing on sales promotions andadvertising, and accelerating store openings while
increasing per-store sales
Korea, Singapore : Creating a system for rapidly
recovering business performance in post-COVID
Thailand : Striving to expand Sushiro stores, centering
primarily around Bangkok
Mainland China : Setting up multiple base locations forstore expansion in order to further accelerate new opening

Stabilize quality and create a system (People andGoods) capable of implementing the same sales
promotion and marketing activities and BPR
measures that are successful in Japan.

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Results (as of the end of FY23)
1.

Taiwan, Hong Kong : Aggressive continuous new store
openings with an eye on post-COVID economic recovery,
contributed to a significant increase in both revenue and profits ofoverseas segment.

2.

South Korea, Singapore : Thorough cost control and a review ofthe personnel system have resolved personnel shortages, which
led us to build a necessary structure for new store openings and to
improve the profit structure. SG in particular achieved rapid growth.

3.

Thailand : Achieved sales and profit growth in FY23 as a result ofcontinued aggressive store openings, mainly in urban areas.

4.

Mainland China : Opened new stores in 5 areas, bringing thenumber of stores at the end of FY23 from 9 (FY22) to 34 (FY23).

•

Introduced latest device such as ‘Auto Reception System’ mainly
in areas where it is difficult to secure personnel.
Strengthened cross-department cooperation which led toenhancement of the ability to increase footfall, by cross-sharing
successful cases of all areas to each other, as well as making
Japanese promotional products available for sale overseas.

•28

FY24-26
Mid-term Plan

Overseas Business: Revenue recovered due to reduced impact of
COVID. Continued to aggressively open stores

Korea

Hong Kong

Thailand

Cost control system has been established. Next
step, as in other areas, is to open a flagship store
to drive up revenue, and to reach EBITDA 10%.
In order to improve brand recognition, opening
new stores in downtown location is essential.
Also planning to introduce the latest Japanese
DX to improve the brand image.

Revenue per store will be lower due to population
decline and cannibalization, but we’remaintaining its profit-generating structure.
Possibility of opening up to 40 stores in the future.
Ensuring productivity by introducing a laborsaving store model (Japan). Continuing to offer
attractive products and pricing to increase repeat
customers.

Completed opening stores in large SCs in urban
areas, and radially expanded into regional areas
by opening stores in mid- and small-sized SCs.
Planning to establish a structure that can further
drive up revenue and profit. Studying suburban
store opening format in Japan and modifying it todevelop a new opening model that can applied to
our Thai business.

# ofStores *1# ofStores# ofStores9 stores28 stores

TaiwanSingapore

Significant potential for further growth, with thepossibility of opening up to 50 stores in the future.
Aggressively opening stores in major central
districts to improve branding

Differentiating from other countries through a
cost structure unique to Singapore. Continuing tosecure high profitability by improving productivity
through pricing and introduction of DX. Opening
new stores in major shopping centers is thebiggest challenge at the moment.

# ofStores38 stores# ofStores9 stores

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Mainland （Guangzhou, Shenzhen,
Chengdu, Chongqing, Wuhan）
China
The biggest challenge is the ALPS treated water
issue. The rate of decline is also high, especiallyin regional cities. Though we remain cautious but
will continue to open new stores in Hong Kong,
Guangzhou, and Shenzhen, where the rate of
decline is relatively low. As for entry to new areas,
we plan to expand our business into the Beijingarea, Suzhou, and Hangzhou.
# ofStores*1: # of stores as of the end of FY23

17 stores

34 stores
29

FY24-26
Mid-term Plan

Overseas Business: Further expansion in currently-operating
regions, and continue to actively enter new markets■In addition to continuing to open new stores in existing countries and regions, we will open its firstrestaurant in Indonesia, where it will offer a halal menu, and in the U.S., a new big market. With
these as a foothold, we aim to further expand into "Europe" and the vast "halal market". Also
we’ll start preparations for introducing all of the group's brands to overseas markets..

Korea
U.S.A.

Mainland
China
ThailandTaiwan

FY24

Hong
Kong

Singapore Indonesia
FY24

Overseas Stores135(as of September, 2023)
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30

Overseas Business
The growing number of overseas stores

FY24-26
Mid-term Plan

■Selecting and expanding in the areas with high growth potential. In FY26,
the final year of the new medium-term business plan, we aim to reach 400
stores, approximately three times the number of stores in FY23, the end of
the previous fiscal year, and 10 times the number of stores in the six years
from FY20.
x400

In just 3 years from FY23 when wereached 100 stores, we aim
to achieve 400 stores in FY26!

403
stores

10 timesx

3 times296
stores

300

201

204
stores

200
100
0

38

stores

4
5
20
9

FY20
FY20
(Actual)59

stores

1
3
9
11
26
9

FY21
FY21
(Actual)135

87

storesstores

9

11
11
17
30
9

FY22
FY22
(Actual)

131

74
34

17
9
28
38
9

FY23
FY23
(Actual)Copyright © FOOD & LIFE COMPANIES LTD. All rights reserved. Strictly private & Confidential.

24
36
10

11
45
4

FY24
FY24

(Forecast)

31

14

45
14

50
11

FY25
FY25

(Forecast)

35
16
52
53
21
25

Mainland China
ThailandSingapore
Hong Kong
TaiwanKorea
New Markets

FY26
FY26

(Forecast)31

FY24-26
Mid-term Plan

Overseas Business: FY24-26 Mid-term Plan KPIs

Targets(Billions, JPY)

Key Initiatives
FY23

FY24

FY25

FY26

ActualForecast

Forecast

Forecast

66.1

100.0

160.0

225.0

10.9

15.0

27.0

40.0

(16.5%)(15.0%)(16.9%)(17.8%)

Revenue
EBITDA*1

Operating *1
Profit

7.3

9.5

18.0

28.0

(11.0%)(9.5%)(11.3%)(12.4%)# of Stores

135

204~213296~308

403~416

Korea

9

10~11

14~16

21~23

Taiwan

38

45~46

50~51

53~55

Hong
Kong

28

36~38

45~47

52~54

Singapore

9

11~12

14~15

16~17

Thailand

17

24~25

31~33

35~37

Mainland
China

34

74~76

131~133

201~203

New
Markets

-

4~5

11~13

25~27

*1 : ロイヤリティ支払い前の数値

Copyright © FOOD & LIFE COMPANIES LTD. All rights reserved. Strictly private & Confidential.

Greater
China• Carefully select the areas/cities to invest inand to open new stores.
• Increase local procurement and raw material
processing of t as countermeasures for
trade restrictions (Expatriate Japan
headquarter general-manager classpersonnel to overseas locations for faster
decision making)• Deploy multiple brands in areas where wehave already established a presence with
Sushiro brand and cultivate the market

Entry toNew
Markets• Successfully opening stores in U.S.A. andIndonesia (a touchstone of the halal market),where large numbers of store openings are
expected in the future.
• If the impact of ALPS treated water is
prolonged, it will also lay the groundworkfor developing alternative growth channels
in the North American and Halal regions.

EBITDA % in total revenue is planned to reach 40%
32

FY24-26
Mid-term Plan

Overseas Business: FY24-26 Mid-term Plan KPIs

■Continue to aggressively open new stores, and in FY26, the final year of the new mid-term plan,we expect both revenue and profit to grow by over 200% compared to FY23, the end of theprevious fiscal year.

Revenue (overseas)(Billions, JPY)

EBITDA
225*1(Billions, JPY)

40

240%

(Actual)

18

11

38

FY22

286%

15

66

7

6

FY23

FY23
(Actual)Previous Mid-term Plan

FY24
FY24
(Plan)(Forecast)

FY25
FY25
(Plan)(Forecast)

FY26
FY26
(Plan)(Forecast)

FY22(Actual)(overseas)

28

27

100

*1

(Billions, JPY)

267%

160

FY22

Operating Profit(overseas)

10

3

FY23
(Actual)

FY24

FY25

FY26

(Forecast)(Forecast)(Forecast)Previous Mid-term Plan

Copyright © FOOD & LIFE COMPANIES LTD. All rights reserved. Strictly private & Confidential.

FY22(Actual)FY23(Actual)

FY24

FY25

FY26

(Forecast)(Forecast)(Forecast)Previous Mid-term Plan
*1 : Before royalty payment

33

FY24-26
Mid-term Plan

Overseas Business:
The very first entry to a halal region, Indonesia

Population powerhouse withremarkable economic development

With the experience of Expo 2020 Dubai,
planning a full-scale entry into a halal market•

Indonesia has the largest economy in Southeast Asia and the
4th largest population in the world with over 270 million people.

•

Population under 30 yrs-old accounts for approx. 50%. A large
number of young working population support stableconsumption.

•

Food service market shrank once in COVID, but is expected to
grow rapidly from '22 onward

Male

女性

100+
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

35,000*1 PopulationPyramid.net: Indonesia 2023•

The first store is to open in Pondok Indah Mall located inSouth Jakarta.

（Millions, USD）

+90%

30,000FemaleLeveraging the experience/knowledge from the Expo 2020
Dubai, we will offer products in accordance withIndonesia's own halal standards and our procurement
capabilities to achieve both delicious and trustworthy
service.

Indonesian Food Service Market *2

Indonesian Population Y2023*1
男性•

25,00020,00022,033
16,93015,00010,000
5,000
0
'21

'22

'23

'24

'25

'26

'27

*2 Euromonitor International: Market size Full-Service Restaurants

Copyright © FOOD & LIFE COMPANIES LTD. All rights reserved. Strictly private & Confidential.

34

Overseas Business:
Expansion into U.S. economic powerhouse

FY24-26
Mid-term Plan

The world's largest economy andmarket with the highest purchasing power•

The U.S. is an economic powerhouse with apopulation of over 300 million people and one of theworld's highest levels of GDP and consumer spending.

•Food service market size is $240 billion in 2022, withfurther growth expected in the next five years

Size of U.S Food Service Market *3（Millions, USD）

Entry to a big potential market•

Plan to launch a sushi restaurant business targetingthe middle-income class, a market with little
competition amidst the ongoing boom in upscale
Japanese food.

•Plan to build a business model that can generate
stable earnings by maintaining quality through direct
operating management and leveraging economies ofscale in procurement.

+30%

300,000
241,693
207,005
200,000

100,000

0
'21

'22

'23

'24

'25

'26

'27

*3 Euromonitor International: Market size Full-Service Restaurants

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35

Disclaimer
The information in this document is intended only for the purpose of providing information on FOOD & LIFE COMPANIES LTD. (the“Company”). It does not constitute solicitation to purchase shares or any other investment securities issued by the Company, within thejurisdictions of Japan, United States and other countries.
The Company makes no warranties regarding the fairness, authenticity, accuracy, comprehensiveness and reasonableness of theopinions and information in this document.
Furthermore, the Company shall bear no liability whatsoever, for any reason whatsoever, for losses or damages resulting from the useof this document, the use of information included in this document or any other activity involving this document. Information, in thisdocument, on the Company’s plans, estimates, forecasts, and expectations, and all other information concerning the future may change
significantly without prior notice.
Among the information in this document, any plan, estimation, prediction, expectation or other forward-looking information relating to theCompany is based on the Company’s assumptions and beliefs derived from the information available to it as of the date on which thisdocument is made and is not an assurance or guarantee that such plan will be implemented or results will be achieved as projected.
Factors such as economic conditions, market trends in the food industry, shifts in customer preferences and fluctuations in the price ofraw materials may cause the actual operating results, financial position and other results of the Company to differ materially from those
discussed in the information of this document or inferences made therefrom.

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