Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between
the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended February 28, 2022
[Japanese GAAP]
April 12, 2022
Company name: EAT&HOLDINGS Co.,Ltd
Stock exchange listing: Tokyo
Code number: 2882
URL: https://www.eat-and.jp/
Representative: Naoki Fumino
Chairman and representative director, CEOContact: Tatsuya Kato
Director-general business administration headquarters
Phone: 03-5769-5050
Scheduled date of Annual General Meeting of Shareholders: May 27, 2022
Scheduled date of commencing dividend payments: May 30, 2022
Scheduled date of filing annual securities report: May 30, 2022
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2022 (March 01, 2021 to February 28, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
February 28, 2022
30,881
834
1,476
773
February 28, 2021
25,964
261
279
(202)
(Note) Comprehensive income:Fiscal year ended February 28, 2022:¥
789 million [-%]Fiscal year ended February 28, 2021:¥(208) million [-%]Basic earnings per Diluted earnings per Rate of return on
share
share
equityOrdinary profit tototal assets ratio

Operating profit to
net sales ratio

Yen
Yen
%
%
%
Fiscal year ended
February 28, 2022
76.16
76.14
10.4
7.2
2.7
February 28, 2021
(19.91)
(2.8)
1.4
1.0
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended February 28, 2022:¥- million
Fiscal year ended February 28, 2021:¥(1) million(Note)Due to the change in the fiscal year-end, the previous fiscal year was an 11-month period from April 1, 2020 to February 28, 2021.
Consequently, since the period of the fiscal year under review (March 1, 2021 to February 28, 2022) and the period of the previous fiscal
year (April 1, 2020 to February 28, 2021) are different and not comparable, the year-on-year ratio is not stated.

(2) Consolidated Financial Position
Total assets
As ofFebruary 28, 2022
February 28, 2021
(Reference) Equity:

Net assets

Million yen

20,514
20,426
As of February 28, 2022:
As of February 28, 2021:

Capital adequacy ratio

Million yen

¥
¥

7,805
7,128
7,791 million
7,107 million

Net assets per share

%

Yen

38.0
34.8

767.12699.71

(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
February 28, 2022
February 28, 2021

Cash flows frominvesting activities

Cash and cash
equivalents at the endof period

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

2,510
655

(1,917)
(17)

(396)
(191)

1,622
1,380

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen

February 28, 2021

-

5.00

-

5.00

10.00

February 28, 2022

-

5.00

-

5.00

10.00

-

5.00

-

5.00

10.00

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

%

%

101

-

1.4

101

13.1

1.3

Fiscal year ending
February 28, 2023

18.5

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended February 28, 2022 :Commemorative dividend- yenSpecial dividend- yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023 (March 01, 2022 to February 28, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings per
Net sales
Operating profit
Ordinary profit
to owners of parent
share
Six months ended August
31, 2022
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

15,800

6.9

530

42.0

545

(21.8)

250(16.4)

24.61

33,470

8.4

1,100

31.8

1,108

(25.0)

500(35.4)

49.23* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):February 28, 2022:
10,158,190 shares
February 28, 2021:
10,158,190 shares2) Total number of treasury shares at the end of the period:
February 28, 2022:
959 shares
February 28, 2021:
921 shares
3) Average number of shares during the period:
Fiscal Year ended February 28, 2022:
Fiscal Year ended February 28, 2021:

10,157,264 shares
10,157,269 shares

Table of Contents - Attachments
1. Overview of Operating Results, etc. ...................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review .................................................... 2(2) Overview of Financial Position for the Fiscal Year under Review .................................................... 4(3) Overview of Cash Flows for the Fiscal Year under Review .............................................................. 5(4) Future Outlook ................................................................................................................................... 6
2. Basic Stance Regarding Selection of Accounting Standards ................................................................. 6
3. Consolidated Financial Statements and Principal Notes ....................................................................... 7(1) Consolidated Balance Sheets ............................................................................................................. 7(2) Consolidated Statements of Income and Comprehensive Income ..................................................... 9(3) Consolidated Statements of Changes in Net Assets............................................................................ 11(4) Consolidated Statements of Cash Flows .......................................................................................... 13(5) Notes to Consolidated Financial Statements ................................................................................... 15(Notes on going concern assumption) .......................................................................................... 15(Changes in significant subsidiaries) ............................................................................................ 15(Additional information) .............................................................................................................. 15(Segment information, etc.) .......................................................................................................... 16(Per share information) ................................................................................................................. 21(Significant subsequent events) .................................................................................................... 21―1―

1. Overview of Operating Results, etc.
Due to the change in the fiscal year-end, the previous fiscal year covered 11-month period from April 1, 2020 toFebruary 28, 2021. Consequently, since the period of the fiscal year under review (from March 1, 2021 to February
28, 2022) and the period of the previous fiscal year (from April 1, 2020 to February 28, 2021) do not match and are
not comparable, the year-on-year ratio is not stated.

(1) Overview of Operating Results for the Fiscal Year under Review
In the fiscal year under review, the outlook for the Japanese economy continued to be uncertain. Private
consumption declined mainly in face-to-face services, due to the state of emergency declaration issued following
the fifth wave of COVID-19 infections, and the sixth wave of infections due to the Omicron variant.
Regarding market trends in frozen foods and restaurants, which are mainstay businesses of the Company, thefrozen food market grew steadily amid the trend of growing demand for eating at home, while the restaurantmarket did not recover to pre-COVID levels, and the restrictions on business hours and alcoholic beverage
provision at restaurants due to the state of emergency declaration in major metropolitan areas and priority
measures to prevent the spread of infections in other regions continued to impact the Restaurant Business.
Under such circumstances, riding on the wave of the market expansion, the Company endeavored to further
increase sales in the Food Business and promoted further improvements in productivity and cost reduction, mainly
at Kanto 2nd Plant. In the Restaurant Business, under the harsh conditions with a prolonged state of emergency
declaration, we continued to promote the scrap-and-build approach for stores, enhanced the attractiveness ofexisting stores through the micromanagement, etc. of each store, and actively responded to the robust takeaway
demand stemming from the COVID-19 crisis.
In addition, for new businesses, we implemented various initiatives including the following: opening of“OSAKA FUN DINING, OSAKA OHSHO” in Shanghai, China; opening of “Sapporo Misogyoza”, an unmanned
direct sales store of raw frozen gyoza limited to the Sapporo area; and developing the restaurants e-commerce
website “RAMEN JOURNEY.”
As a result, net sales for the fiscal year under review were ¥30,881 million and operating profit was ¥834
million, achieving an increase in sales and a significant increase in operating profit. In addition, in the Restaurant
Business, owing to income provided by local governments as the compensation for cooperation in preventing the
spread of COVID-19, the Company recorded ordinary profit of ¥1,476 million, and profit attributable to the parent
company’s shareholders of ¥773 million.
The operating results for each segment are as follows.
1) Food BusinessIn the Food Business, we maintained the strong sales, as our mainstay product “OSAKA OHSHO Hanetsuki
Gyoza” continued to grow, and the new product “OSAKA OHSHO Hanetsuki Stamina Meat Gyoza,” launchedin February 2021, became a hit product. As a result, the net sales in the Food Business for the fiscal year underreview were ¥18,789 million.
The operating profit was ¥1,153 million, as a result of improving the gross margin ratio through enhancing
the productivity via the introduction of state-of-the-art equipment at the new line at Kanto 2nd Plant, which began
its operations in January 2021.
2) Restaurant Business
Regarding the Restaurant Business, in the “OSAKA OHSHO” business category, in addition to continued efforts
from the previous fiscal year in closing unprofitable stores, we actively opened new stores at locations close toresidential areas. We also proceeded with endeavor to respond to changes in the business environment due to the
COVID-19 crisis such as the expansion of the takeout and delivery menus, and strove to bolster existing storesthrough the development of limited-time menus and the introduction of micromanagement. As a result, in thefiscal year under review, the net sales were ¥12,091 million and the operating profit was ¥11 million, showing a
steady recovery.
―2―

In the fiscal year under review, the Group opened a total of 37 stores, including 25 directly managed stores and
12 FC stores, and closed a total of 35 stores, including 8 directly managed stores and 27 FC stores. At the end of
the fiscal year under review, the total number of stores was 472 (including 28 overseas stores), with 107 directly
managed stores (including 7 overseas stores) and 365 FC stores (including 21 overseas stores). Furthermore, inline with the switch in operating format, 1 store was changed from a FC store to a directly managed store.
The breakdown of the number of stores in the Restaurant Business is as follows.
Name of businesscategory

OSAKA OHSHOEnd of previous fiscal year
(February 28, 2021)
Directly
managedstores39

End of fiscal year under review(February 28, 2022)

312

351

Directly
managedstores48

FC stores

Total

FC stores

Total

313

361

Ramen

12

19

31

11

18

29

Bakery & cafes

22

14

36

21

10

31

Other businesses

13

4

17

20

3

23

Overseas

3

32

35

7

21

28

89

381

470

107

365

472

Total

―3―

(2) Overview of Financial Position for the Fiscal Year under Review
Status of Assets, Liabilities and Net Assets(Assets)
Total assets at the end of the fiscal year under review increased by ¥88 million from the end of the previous fiscal
year to ¥20,514 million.
Current assets decreased by ¥719 million from the end of the previous fiscal year to ¥9,044 million. The
main contributing factors were an increase in cash and deposits of ¥234 million, a decrease in accounts receivable– trade of ¥1,148 million, and an increase in merchandise and finished goods of ¥221 million.
Non-current assets increased by ¥808 million from the end of the previous fiscal year to ¥11,470 million.
The main contributing factors were an increase in property, plant and equipment of ¥708 million and an increase
in investments and other assets of ¥101 million.
(Liabilities)
Liabilities at the end of the fiscal year under review decreased by ¥587 million from the end of the previous fiscal
year to ¥12,709 million.
Current liabilities decreased by ¥672 million from the end of the previous fiscal year to ¥9,232 million. The
main contributing factors were a decrease in accounts payable – trade of ¥628 million, a decrease in short-termborrowings of ¥304 million, and an increase in income taxes payable of ¥209 million.
Non-current liabilities increased by ¥84 million from the end of the previous fiscal year to ¥3,477 million.
The main contributing factor was an increase in long-term borrowings.
(Net Assets)
Net assets at the end of the fiscal year under review increased by ¥676 million from the end of the previous fiscal
year to ¥7,805 million. The main contributing factor was an increase in retained earnings.
As a result, the capital adequacy ratio was 38.0% (34.8% at the end of the previous fiscal year).

―4―(3) Overview of Cash Flows for the Fiscal Year under Review
Status of Cash Flows
Cash and cash equivalents at the end of the fiscal year under review (hereinafter “funds”) increased by ¥241
million from the end of the previous fiscal year to ¥1,622 million.
(Cash Flows from Operating Activities)
Funds provided by operating activities amounted to ¥2,510 million. The main contributing factors were profit
before income taxes of ¥1,203 million, a decrease in trade receivables of ¥1,157 million, and depreciation of¥1,014 million, which offset an increase in inventories of ¥174 million, and a decrease in trade payables of ¥637
million.
(Cash Flows from Investing Activities)
Funds used in investing activities were ¥1,917 million. The main contributing factor was the purchase of property,
plant and equipment.
(Cash Flows from Financing Activities)
Funds used in financing activities amounted to ¥396 million. The main contributing factors were a decrease in
short-term borrowings of ¥304 million, repayments of long-term borrowings of ¥557 million, and dividends paidof ¥101 million, despite proceeds from long-term borrowings of ¥600 million.
(Trends in cash flow-related indicators)
Fiscal year ended
February 28, 2021
34.8

Fiscal year ended
February 28, 2022
38.0

Capital adequacy ratio based on market value (%)

89.4

107.1

Cash flow to debt ratio (times)

6.0

1.5

Interest coverage ratio (times)

46.3

195.3

Capital adequacy ratio (%)(Notes)1. The calculation formulas of the above indicators are as follows.
Capital adequacy ratio: Shareholders’ equity / Total assets
Capital adequacy ratio based on market value: Market capitalization / Total assets
Cash flow to debt ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest payments
2. Market capitalization is calculated based on the total number of shares issued excluding treasury
shares.
3. Cash flows refer to cash flows from operating activities.
Interest-bearing debt refers to all liabilities for which interest is paid among the liabilities recorded on
the Consolidated Balance Sheets. Interest payments refer to the amount of interest paid in theStatements of Cash Flows.

―5―(4) Future Outlook
Regarding the business environment surrounding the Group in the next fiscal year, as there is no prospect ofconvergence of the COVID-19 pandemic, the Group expects to continue facing a harsh business environment, as
well as increases in raw material prices, labor costs, and logistics costs.
In the Food Business, besides the boost from the frozen gyoza market which will continue to grow, we believethat sales of our mainstay products “OSAKA OHSHO Hanetsuki Gyoza” and “OSAKA OHSHO Purumochi
Boiled Gyoza” can be further increased with their high levels of product appeal. In addition, Kanto 3rd Plant isscheduled to begin its operations in October 2022, and will realize savings in labor and efficiency improvements
through the introduction of the latest technology, thereby further improving productivity and expanding our supply
capacity.
In the Restaurant Business, we will continue to actively open stores of our mainstay “OSAKA OHSHO”
brand near residential areas, conduct more profitable store operations, and aim for further recovery. In addition,with regard to overseas development, we will promote store openings in business formats that fit local needs,
mainly in China and Taiwan.
As a result of these initiatives, regarding the financial results for the fiscal year ending February 28, 2023,
the Group expects to achieve the net sales of ¥33,470 million, the operating profit of ¥1,100 million, the ordinary
profit of ¥1,108 million, and the profit attributable to the shareholders of the parent company of ¥500 million.

2. Basic Stance Regarding Selection of Accounting Standards
The Group shall prepare its consolidated financial statements based on the Japanese accounting standards for the time
being, taking into account the comparability of consolidated financial statements between periods and between
companies.
Regarding the application of International Financial Reporting Standards (IFRS), we will make an appropriate
response upon considering various conditions both in Japan and overseas.

―6―

Consolidated Financial Statements

Consolidated Balance Sheets(Million yen)
As of February 28,2021

As of February 28,2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,388
6,864

1,622
5,716

Merchandise and finished goods
Raw materials and supplies

814
392

1,035
346

Other
Allowance for doubtful accounts

304
(0)

322
-

9,764

9,044

4,987

5,023

2,211
448

2,276
502

984
35

984
23

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Leased assets
Construction in progress

14

579

8,681

9,389

Software
Other

180
50

182
46

Total intangible assets

231

229

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

18

16

Guarantee deposits
Deferred tax assets

941
494

818
621

Other
Allowance for doubtful accounts

301
(7)

400
(7)

Total investments and other assets

1,749

1,850

Total non-current assets
Total assets―7―

10,661

11,47020,426

20,514

(Million yen)
As of February 28,2021

As of February 28,2022

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

2,726
1,295

2,097
991

Current portion of long-term borrowings
Accounts payable - other

553
3,147

526
3,120

Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for sales rebates

214
212

424
249

29

50

957

918

Other

767

852

9,904

9,232

2,057
12

2,127
12

660
169

661
175

456

481

35

20

Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Long-term guarantee deposits
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Other
Total non-current liabilities

3,392

3,477

13,297

12,709

Shareholders' equity
Share capital

2,016

2,016

Capital surplus
Retained earnings

1,946
3,146

1,947
3,816

(0)

(0)

Total liabilities
Net assets

Treasury shares

7,108

7,779

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment

Total shareholders' equity

2

3

-

5

Remeasurements of defined benefit plans(4)3

Total accumulated other comprehensive income

(1)

12

Share acquisition rights-

13

Non-controlling interests

21

-

7,128

7,805

20,426

20,514

Total net assets
Total liabilities and net assets―8―Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended February 28,2021

For the fiscal year
ended February 28,2022

Net sales
Cost of sales

25,964
15,74330,881
18,297Gross profit

10,22012,583

Selling, general and administrative expenses

9,959

11,748261

834

Non-operating income
Interest income

00Dividend income
Subsidy income

0
13

0
651

Compensation for forced relocation
Other

21
4

6

Total non-operating income

39

657

13

12

1

-

Operating profit

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodTaxes and dues

2

-

Other

3

2

Total non-operating expenses

21

15

Ordinary profit

279

1,476

Extraordinary income
Gain on sale of non-current assets

836-

Gain on sale of shares of subsidiaries and associates
Reversal of allowance for doubtful accounts

8
10

-

Gain on bargain purchase
Gain on reversal of share acquisition rights

36
2

-

Other

1

-

895

-

Loss on sale and retirement of non-current assets
Loss on store closings

10
219

3
89

Impairment losses
Loss on sale of shares of subsidiaries and associates

765
48

180
-

Loss on COVID19
Other

51
27

-

1,125

273

Profit before income taxes

49

1,203

Income taxes - current

245

558

Income taxes - deferred

4

(130)

Total income taxes

249

427

Profit (loss)

(199)

775

Profit attributable to non-controlling interests

2

1

Profit (loss) attributable to owners of parent

(202)

773

Total extraordinary income
Extraordinary losses

Total extraordinary losses―9―Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended February 28,2021
Profit (loss)
Other comprehensive income

For the fiscal year
ended February 28,2022

(199)

775

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(0)
-

1
5

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

3

7

(12)

-

(9)

13

Comprehensive income

(208)

789

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

(211)

787

2

1

―10―

Consolidated Statements of Changes in Net Assets
For the fiscal year ended February 28,2021(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Change in scope of
consolidation
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period2,016

CapitalsurplusRetainedearnings

1,946

Total
shareholders'equityTreasuryshares

3,450

(0)

7,412

(101)

(101)

(202)

(202)
-

-

-

-

(303)

-

(303)

2,016

1,946

3,146

(0)

7,108

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasureme accumulated acquisitiondifference on
currency
nts of definedotherrightsavailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Change in scope of
consolidation
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

2

12

(8)

7

2

Noncontrollinginterests

18

Total net
assets

7,440

(101)
(202)
-

-

(0)

(12)

3

(9)

(2)

2

(8)

(0)

(12)

3

(9)

(2)

2

(312)

2

-

(4)

(1)

-

21

7,128

―11―

For the fiscal year ended February 28,2022(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Change in scope of
consolidation
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period2,016

CapitalsurplusRetainedearnings

1,946

Treasuryshares

3,146

(0)

Total
shareholders'equity
7,108

(101)

(101)

773

773
(0)

(2)

(0)
(2)

1

1

-

1

670

(0)

670

2,016

1,947

3,816

(0)

7,779

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Remeasureme accumulated acquisitiondifference on
currency
nts of definedotherrightsavailable-for- translation
benefit plans comprehensiv
sale securities adjustmente income
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit (loss)
attributable toowners of parent
Purchase oftreasury shares
Change in scope of
consolidation
Change inownership interestof parent due totransactions with
non-controllinginterests
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

2

-

(4)

(1)

-

Noncontrollinginterests

21

Total net
assets

7,128

(101)
773
(0)
(2)

1

1

5

7

13

13

(21)

5

1

5

7

13

13

(21)

676

3

5

3

12

13

-

7,805

―12―

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended February 28,2021
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended February 28,2022
49

1,203

Depreciation
Amortization of goodwill

844
4

1,014
-

Gain on bargain purchase
Share of loss (profit) of entities accounted for using
equity method
Impairment losses
Loss on store closings

(36)

-

1

-

765
219

180
89

Compensation for forced relocation
Other extraordinary loss (income)

(21)
67

-

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for sales rebates

(8)

13

20

24

56

37

6

21

127

(39)

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

19
(0)

(0)
(0)

Interest expenses
Loss (gain) on sale and retirement of non-current
assetsGain on reversal of share acquisition rights
Loss (gain) on sale of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories

13

12

(825)

3

(2)

-

39

-

(1,446)
(144)

1,157
(174)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other

410
540

(637)
(70)

Increase (decrease) in accrued consumption taxes
Increase (decrease) in guarantee deposits received

(12)
(84)

76
0

Other, net

240

(69)

Subtotal

848

2,841

Interest and dividends received

0

0

(14)
(200)

(12)
(318)

Proceeds from compensation for forced relocation

21-

Net cash provided by (used in) operating activities

655

2,510

Interest paid
Income taxes paid

―13―

(Million yen)
For the fiscal year
ended February 28,2021
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries and associates
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation
Payments of guarantee deposits

For the fiscal year
ended February 28,2022(1,484)(1,848)

1,520
(114)

0
(51)

-

(66)

64

-

(46)

-

(68)

(75)

Proceeds from refund of guarantee deposits
Other, net

88
24

183
(59)

Net cash provided by (used in) investing activities(17)(1,917)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

(344)

(304)

Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Proceeds from issuance of share acquisition rights

900
(620)

600
(557)

-

(22)

-

2

Dividends paid
Repayments of lease obligations

(101)
(24)

(101)
(13)

Other, net-(0)Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

(191)

(396)

-

5

447

202

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

933

1,380

-

38

1,380

1,622

―14―

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in significant subsidiaries)
Not applicable.
Although this does not fall under changes in specified subsidiaries, EAT AND TAIWAN CO., LTD., which
has increased in significance, has been included in the scope of consolidation from the fiscal year under review.
(Additional Information)(Accounting estimates made in line with the COVID-19 pandemic)
Due to the impact of the COVID-19 pandemic, our business activities have been affected, as a result of factors
including the stagnation of business activities in line with restrictions on movement both in Japan and overseas.
Assuming a certain level of the impact of the COVID-19 pandemic will remain even after the fiscal year underreview, we have made certain accounting estimates (impairment of non-current assets, etc.).
Since there is high uncertainty surrounding the impact of the COVID-19 pandemic, if there are changes tothe above assumption, there may be an impact on the Group’s operating results and financial position in the future.

―15―

(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Group’s reportable segments are the constituent business units of the Group for which separate financial data
are available and that are examined periodically to allow the Board of Directors to determine the allocation ofmanagement resources and evaluate performance.
The Group has adopted a holding company system, and develops its business by formulating comprehensive
strategies for each operating company.
Accordingly, the Group has two reportable segments, the Food Business and the Restaurant Business, basedon factors including similarities by product and service, with each of the operating companies as the foundation.
In the Food Business, we sell frozen foods, etc. under the “OSAKA OHSHO” brand to consumer Co-op andgeneral mass retailers nationwide through wholesalers, as well as through e-commerce business goods sales sites.
In the Restaurant Business, we operate directly managed restaurants centering on OSAKA OHSHO, as well as
franchise chains of such in-house brands.
2. Calculation methods of net sales, profit (loss), assets, liabilities and other items for each reportable segment
The accounting method for the reported business segments is the same as the accounting method adopted in the
preparation of the consolidated financial statements.
Profit figures in the reportable segments are based on operating profit.
Inter-segment net sales or transfers are based on market prices, manufacturing costs, etc.
3. Matters regarding changes in reportable segments, etc.
In order to more appropriately evaluate and manage the performance of each reportable segment, we havereviewed the allocation method of common expenses and changed the method of calculating profit or losses in thereportable segments from the fiscal year under review.
Segment information for the previous fiscal year that is stated for comparison with information in the fiscal
year under review was prepared using the restated reportable segments, and there is a difference between the said
information and information on reportable segments disclosed in the previous fiscal year.

―16―

4. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended February 28, 2021 (from April 1, 2020 to February 28, 2021)(Million yen)
Reportable segment
Adjustment(Note 1)

Amount recordedin Consolidated
Financial
Statements(Note 2)

Food BusinessRestaurant
Business

15,667

10,29625,964－25,964

Inter-segment net sales ortransfers

794

－

794

(794)

－

Total

16,462

10,296

26,759(794)

25,964

869

(400)

469

(207)

261

14,976

3,878

18,854

1,571

20,426

Depreciation

524

320

844

－

844

Amortization of goodwill

－

4

4

－

4

Increase in property, plant andequipment and intangible
assets

865

688

1,554

124

1,678

Total

Net sales
Net sales to external customers

Segment profit (loss)
Segment assets
Other items(Notes) 1. Details of the adjustments are as follows:(1) The ¥(207) million adjustment to segment profit (loss) consists of company-wide expenses not allocatedto each reportable segment, and mainly includes general and administrative expenses that do not belong
to the reportable segments.
(2) The ¥1,571 million adjustment to segment assets consists of company-wide assets not allocated to eachreportable segment, and mainly includes surplus assets and working capital (cash and deposits) of the
Head Office and deferred tax assets that do not belong to the reportable segments.
(3) The ¥124 million adjustment to the increase in property, plant and equipment and intangible assets consistsof company-wide assets not allocated to each reportable segment, and mainly includes software andequipment of the Head Office that do not belong to the reportable segments.
2 Segment profit (loss) has been adjusted to correspond with operating profit in the Consolidated Statementof Income.
3. Depreciation includes the amortization of long-term prepaid expenses.
4. The fiscal year under review falls under the transitional period of the change in the fiscal year-end, andconsists of 11 months (April 1, 2020 to February 28, 2021) for the Company and its consolidated
subsidiaries which had fiscal years that ended in March.

―17―

For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(Million yen)
Reportable segment
Adjustment(Note 1)

Amount recordedin Consolidated
Financial
Statements(Note 2)

Food BusinessRestaurant
Business

18,78912,09130,881－30,881

Inter-segment net sales ortransfers

889

－

889

(889)

－

Total

19,67812,091

31,770(889)

30,881

Segment profit (loss)

1,153

11

1,164

(330)

834

Segment assets

14,651

3,986

18,638

1,876

20,514

Depreciation

670

343

1,014

－

1,014

Amortization of goodwill

－

－

－

－

－

1,236

608

1,844

28

1,872

Total

Net sales
Net sales to external customers

Other items

Increase in property, plant andequipment and intangible
assets(Notes) 1. Details of the adjustments are as follows:(1) The ¥(330) million adjustment to segment profit (loss) consists of company-wide expenses not allocatedto each reportable segment, and mainly includes general and administrative expenses that do not belong
to the reportable segments.
(2) The ¥1,876 million adjustment to segment assets consists of company-wide assets not allocated to eachreportable segment, and mainly includes surplus assets and working capital (cash and deposits) of the
Head Office and deferred tax assets that do not belong to the reportable segments.
(3) The ¥28 million adjustment to the increase in property, plant and equipment and intangible assets consistsof company-wide assets not allocated to each reportable segment, and mainly includes software andequipment of the Head Office that do not belong to the reportable segments.
2 Segment profit (loss) has been adjusted to correspond with operating profit in the Consolidated Statementof Income.
3. Depreciation includes the amortization of long-term prepaid expenses.

―18―

[Related information]
For the fiscal year ended February 28, 2021 (from April 1, 2020 to February 28, 2021)
1. Information by product or service
As the same information has been stated in “Segment information,” this information is omitted.
2. Information by region(1) Net sales
As net sales to external customers in Japan exceed 90% of net sales in the Consolidated Statement of
Income, this information is omitted.
(2) Property, plant and equipment
As there is no property, plant and equipment outside of Japan, this information is omitted.
3. Information by major customer(Million yen)
Name of customer

Net sales

Name of related segment

Mitsubishi Shokuhin Co., Ltd.

5,773

Food Business

ITOCHU Corporation

2,576

Food Business

For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)
1. Information by product or service
As the same information has been stated in “Segment information,” this information is omitted.
2. Information by region(1) Net sales
As net sales to external customers in Japan exceed 90% of net sales in the Consolidated Statement of
Income, this information is omitted.
(2) Property, plant and equipment
As the property, plant and equipment in Japan exceed 90% of the value of property, plant and equipment in
the Consolidated Balance Sheets, this information is omitted.
3. Information by major customer(Million yen)
Name of customer

Net sales

Name of related segment

Mitsubishi Shokuhin Co., Ltd.

6,345

Food Business

ITOCHU Corporation

2,712

Food Business―19―

[Information on impairment losses on non-current assets by reportable segment]
For the fiscal year ended February 28, 2021 (from April 1, 2020 to February 28, 2021)(Million yen)

Impairment losses

Reportable segment
Food BusinessRestaurant Business
–
765

Total
765

For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(Million yen)

Impairment losses

Reportable segment
Food BusinessRestaurant Business
–
180

Total
180

[Information on amortized amount and unamortized balance of goodwill by reportable segment]
For the fiscal year ended February 28, 2021 (from April 1, 2020 to February 28, 2021)(Million yen)Amount recordedin Consolidated
Financial
Statements

Reportable segment
Food BusinessAmount amortizedin the current period
Balance at end ofcurrent period

Restaurant
Business

Adjustment

Total

–

4

4

–

4

–

–

–

–

–

For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)
Not applicable.
[Information on gain on bargain purchase by reportable segment]
For the fiscal year ended February 28, 2021 (from April 1, 2020 to February 28, 2021)
In the Restaurant Business segment, the Group acquired the shares of Ippinko Co., Ltd. and Ippinko Foods Ltd.
In line with the above, ¥36 million of gain on bargain purchase was recorded in the fiscal year ended February 28,
2021.
For the fiscal year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)
Not applicable.

―20―

(Per share information)
Net assets per share

For the fiscal year
ended February 28, 2021
¥699.71

For the fiscal year
ended February 28, 2022
¥767.12¥(19.91)¥76.16

Basic earnings (losses) per share

Diluted earnings per share¥76.14－(Notes) 1. Diluted earnings per share for the previous fiscal year are not stated because there were no dilutive
shares in the previous fiscal year.
2. The basis for calculating basic earnings (losses) per share and diluted earnings per share is as follows.
For the fiscal year
ended February 28, 2021

For the fiscal year
ended February 28, 2022

(1) Basic earnings (losses) per share
Profit (loss) attributable to owners ofparent (Million yen)

(202)

773

Amount not attributable to commonshareholders (Million yen)－－

Profit (loss) attributable to owners ofparent relating to common shares(Million yen)

(202)

773

Average number of common shares
outstanding during the period (Shares)

10,157,269

10,157,264

Adjustment to profit attributable toowners of parent (Million yen)－－

Increase in number of common shares(Shares)－

3,023(Out of the above: Share acquisitionrights (Shares))－(3,023)

Overview of dilutive shares not includedin the calculation of diluted earnings per
share due to a lack of dilutive effect－－(2) Diluted earnings per share(Significant subsequent events)
Not applicable.

―21―