Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019
[Japanese GAAP]
November 14, 2019

Company name:
PEPPER FOOD SERVICE Co., Ltd.
Stock Exchange Listing:Tokyo Stock Exchange
Stock code:
3053
URL:
http://www.pepper-fs.co.jp
Representative:
Kunio Ichinose, Representative Director, President and Chief Executive Officer
Contact:
Ichiro Yasuda, Senior Executive Officer, General Manager of General Affairs DivisionTel:+81-3-3829-3210
Date of filing of the quarterly Securities Report:
November 14, 2019
Scheduled date of commencement of dividend payments:
Supplementary materials for quarterly financial results:
None
Briefing on the quarterly financial results:
None(Millions, rounded down to the nearest million yen)
1. Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019 (from January 1, 2019 to September 30,
2019)(1) Consolidated Operating Results(Percentages represent changes from the same period in the previous year)
Net Income
Net
Operating Income
Ordinary Income
Attributable toSales
Shareholders of the
Parent Company
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine-month period ended September 30, 2019
51,857 15.2
44 -98.2
19 -99.2-1,922－Nine-month period ended September 30, 2018
45,023 79.7
2,394 42.0
2,430 42.9
1,156 21.8
(Note) Comprehensive Income
Nine-month period ended September 30, 2019-¥1,862 million (-%)
Nine-month period ended September 30, 2018
¥1,130 million (18.6%)

Nine-month period ended September 30, 2019
Nine-month period ended September 30, 2018

Quarterly Earnings
Per ShareYen-91.7855.75

Diluted Earnings Per
Share
Yen
－
53.66

(2) Consolidated Financial Position

As of September 30, 2019
As of December 31, 2018
(Reference) Shareholders equity
As of September 30, 2019
As of December 31, 2018

Total Assets
Millions of yen
26,031
25,993¥1,250 million¥3,542 million

Net Assets
Millions of yen
1,393
3,745

Equity Ratio
%
4.8
13.6

2. Dividends
End Of First
QuarterYen－

End Of Second
QuarterYen
15.00

Annual Dividend
End Of Third
Quarter
Yen－

Fiscal year ended
December 31, 2018
Fiscal year ending
15.00－
December 31, 2019
Fiscal year ending
December 31, 2019
(Forecast)(Note) Revision of dividend forecast from the latest announcement: Yes

Year-End－

Annual

Yen
15.00

Yen
30.00

0.00

15.00

3. Consolidated Financial Forecasts for the Fiscal Year Ending December 31, 2019 (from January 1, 2019 to December 31, 2019)(Percentages indicate the net change in comparison with the previous year for full year figures)
Net Sales
Operating Income
Ordinary Income
Profit Attributable to
Net Earnings Per
Shareholders of the
Share
Parent Company
Millions of%Millions of%Millions of%Millions of
%
Yen
yen
yen
yen
yen
Full Year66,536
4.8
-731
-731
-2,503-119.46－－(Note) Changes from the latest consolidated forecasts: Yes* Notes(1) Changes in important subsidiaries during this consolidated cumulative quarter (changes in the scope of consolidation): None

(2) Application of specific accounting treatments for preparation of the quarterly consolidated financial statements: None

(3) Changes in accounting policies, changes in accounting estimates, and restatements
1) Changes in accounting policies associated with
: Nonethe revision of accounting standards
2)
3)
4)

Changes in accounting policies other than thosein 1) above
Changes in accounting estimates
Restatements(4) Number of shares issued and outstanding (common stock)
Third quarter
1) Number of shares issued andendedoutstanding (including treasury
September 30,
stocks) at end of period
2019
Third quarter2) Number of treasury stocks at end
ended
of period
September 30,
2019
Nine months
3) Average number of shares issued
ended
and outstanding during the period
September 30,
2019

: Yes
: Yes
: None21,070,800
shares

220 shares

20,951,221
sharesFiscal year
ended
December 31,
2018
Fiscal year
ended
December 31,
2018
Nine months
ended
September 30,
2018

20,802,800
shares

220 shares

20,737,206
shares* These consolidated financial results for the quarter fall outside the scope of quarterly review by certified public accountants andauditing firms.
* Description of appropriate use of business forecasts; other special matters
1. The forecasts for results of operations in this report are based on information currently available to PEPPER FOOD SERVICE
Co., Ltd. and assumptions determined to be reasonable, and actual results may differ significantly from the forecasts due tovarious factors.
2. Previously, the monetary values of all items recorded in the quarterly consolidated financial statements of PEPPER FOODSERVICE Co., Ltd. were stated in thousands of yen, but we modified them by stating those in millions-of-yen units from thefirst quarter of the current consolidated accounting period and the first quarter of the current consolidated cumulative period.
Moreover, to facilitate comparison, the previous consolidated accounting period and the third quarter of the previous
consolidated accounting period are also stated in units of one million yen.

PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019

○ Index of Supporting Data
1. Qualitative Information on Consolidated Final Results

2(1) Explanation of Business Performance2(2) Explanation of Financial Position

3(3) Explanation for Future Projections such as Consolidated Earnings Forecast

3

2. Quarterly Consolidated Financial Statements and Important Notes

4(1) Quarterly Consolidated Financial Position Statement

4(2) Quarterly Consolidated Profit-and-Loss Statement and Quarterly Consolidated Statement of Comprehensive Income

6(Quarterly Consolidated Profit-and Loss-Statement)(For the Nine-month Period Ended September 30)

6(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period Ended September 30)

7(3) Important Notes on Quarterly Consolidated Financial Statements

8(Notes on the Going Concern Assumption)

8(Notes When There Have Been Significant Changes in the Amount of Shareholders’ Equity)8(Changes in Accounting Estimates and Changes in Accounting Policies that are Difficult to Distinguish from Changes in
Accounting Estimates)

8(Additional Information)

9(Segment Information, etc.)

10

- 1 -

PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019

1. Qualitative Information on Consolidated Final Results(1) Explanation of Business Performance
During the first nine months of the current fiscal year, the Japanese economy showed a moderate recovery due toimprovements in corporate earnings and employment. However, factors such as prolonged trade friction between China andthe United States and the deterioration of relations between Japan and South Korea due to strengthening of export controls
have brought about the risk of a decline in consumer sentiment, and the future of the economy remains unclear.
In the restaurant industry, in addition to a strong rise in consumers’ preference to save, the increase of personnel expenses
and logistics expenses due to the labor shortage, the rise in raw material expenses and also poor weather such as a long rainyseason and large typhoons have affected customer movements, and the situation remains severe.
Under such circumstances, according to the basic precept of our group, “to enjoy rapid growth and become a local, public
institution that acts in all good faith, with a sense of humility,” we worked to expand our business with the goal of opening 25
new Pepper Lunch restaurants and 210 new Ikinari! Steak restaurants, but as stores opened, sales of existing stores decreased
compared to our plan due to the impact of factors such as competition between Ikinari! Steak restaurants in some regions. In
response to this, the plan for new Ikinari! Steak stores was changed to 115 stores, and focus was placed on measures toincrease sales of existing stores, but the impact of competition between the Company’s own brands could not be dispelled, andsales of existing stores decreased significantly. As a result of consideration aimed at eliminating competition between the
Company’s own brands, the Company decided to close 44 Ikinari! Steak stores, and recorded extraordinary losses.
Furthermore, there were also stores that were forced to suspend business or reduce business hours due to the impact of large
typhoons.
As a result, net sales for the first nine months of the current fiscal year were ¥51,857 million (an increase of 15.2% over thesame period of the previous year), operating income was ¥44 million (a decrease of 98.2% from the same period of theprevious year), ordinary income was ¥19 million (a decrease of 99.2% from the same period of the previous year), and net loss
attributable to shareholders of the parent company was ¥1,922 million (net income attributable to shareholders of the parent
company was ¥1,156 million in the same period of the previous year).
Performance by segment is as follows:(i) Pepper Lunch BusinessIn the Pepper lunch business, the “25th Anniversary Win A Trip to Taiwan” (July 12 – September 5) campaign was
conducted to commemorate the 25th anniversary of Pepper Lunch in July, and the first Pepper Lunch store was opened in
Houston, Texas in August. Furthermore, we expanded the number of stores supported by the Uber Eats home delivery service
to 19.
The Pepper Lunch Business overseas had sales of ¥309 million (an increase of 10.3% over the same period of the previousyear) due to the sale of equipment, etc. associated with the launch of new stores and royalty revenue.
As a result, net sales for the first nine months of the current fiscal year were ¥6,473 million (an increase of 15.0% over thesame period of the previous year), and segment income was ¥937 million (a decrease of 6.5% from the same period of theprevious year). In addition, the opening of 64 new stores (40 of which are located overseas) brought the total number of Pepper
Lunch restaurants to 505.
(ii) Restaurant BusinessIn the Restaurant Business, we have been working to improve sales and profits in existing stores through initiatives such asbrushing up main products and introducing seasonal products on the menu in individual stores to promote various businesslines such as Sumiyaki Steak Kuni in the steak line, Kodawari Tonkatu Katsukitei in the pork cutlet line, and Gyutan Sendai
Natori in the tender beef line. In addition, the Akasaka store of Sumiyaki Steak Kuni was closed and the Akasaka store of
OYSTER+STEAK was opened in August.
However, net sales for the first nine months of the current fiscal year were ¥1,006 million (a decrease of 12.1% over thesame period of the previous year), and segment income was ¥37 million (a decrease of 55.1% from the same period of theprevious year). In addition, the total number of restaurants in the Restaurant Business is now 14.
- 2 -PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019(iii) Ikinari! Steak Business
The Ikinari! Steak Business opened a store at the TV Asahi Roppongi Hills Summer Festival SUMMER STATION summer
festival event held in Roppongi Hills in July (July 13 – August 25), and also implemented a campaign in a movie tie-up with
Fast & Furious Presents: Hobbs & Shaw (July 12 – August 8). Furthermore, in addition to replacing the high tables and highchairs with low tables and low chairs in each store, the lunch menu limited to weekdays was provided on weekends andholidays as Happy Holiday Lunch. In addition, we held an Angus Beef Fair (August 8 – August 22) that provides more value
the more you eat, 10X bonus money charge for meat on August 29 (Meat Day), and the Ikinari! Steak Autumn App Scratch
Festival (September 25 – October 17) offering total prizes of ¥10 million in September.
As a result, net sales for the first nine months of the current fiscal year were ¥44,222 million (an increase of 16.0% over thesame period of the previous year) due to the launch of new stores, but segment income was ¥1,758 million (a decrease of
51.9% from the same period of the previous year) due to the impact of competition between Ikinari! Steak stores in someregions. In addition, the opening of 99 new stores (1 of which is located overseas) brought the total number of Ikinari! Steakrestaurants to 484.

(iv) Product Sales BusinessIn the Product Sales Business, sales were conducted via major Internet vendors for products such as Tonkatsu Sauce, Frozen
Pepper Rice, Frozen Hamburg Steaks, and Ikinari! Steak Sets that can be enjoyed in the home. Furthermore, Ikinari! Yakisoba
was launched in supermarkets and convenience stores nationwide (starting August 5) as a collaboration product with Toyo
Suisan Kaisha, Ltd. in August.

As a result, net sales for the first nine months of the current fiscal year including royalty revenue from Ikinari! Steakcollaboration products were ¥155 million (an increase of 13.7% over the same period of the previous year), and segment
income was ¥20 million (an increase of 44.0% from the same period of the previous year).

(2) Explanation of Financial Position
At the end of the first nine months of the current fiscal year, total assets were ¥26,031 million, up ¥38 million from the endof the previous fiscal year. This was primarily due to a decrease of ¥1,178 million in cash and cash equivalents, a decrease of¥814 million in trade accounts receivable, an increase of ¥1,066 million in buildings and structures, net, an increase of ¥245
million in lease deposits receivable, and an increase of ¥621 million in deferred tax assets (investments and other assets).

Total liabilities were ¥24,638 million, up ¥2,390 million from the end of the previous year. This was mainly due to adecrease of ¥831 million in accounts payable - other, a decrease of ¥1,249 million in accrued corporate tax payable, a decreaseof ¥406 million in allowances for business structure improvements, and an increase of ¥4,082 million in loans payable.

Net assets were ¥1,393 million, down ¥2,352 million from the end of the previous fiscal year. This was largely due to anincrease of ¥1,922 million in net loss attributable to shareholders of the parent company and ¥627 million in surplus distributed
as dividends. Retained earnings decreased by ¥2,550 million, and share capital and legal capital surplus increased by ¥99
million respectively due to the exercise of stock acquisition rights. Additionally, the capital equity ratio decreased by 8.8 points
from the end of the previous fiscal year to 4.8%.
(3) Explanation for Future Projections such as Consolidated Earnings Forecast
See the “Notice of Revision of Earnings Forecast and Revision of Dividend Forecast (No Dividend), and Recording ofExtraordinary Losses” dated November 14, 2019.

- 3 -PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019

2. Quarterly Consolidated Financial Statements and Important Notes(1) Quarterly Consolidated Financial Position Statement
Prior Fiscal Year(ended December 31, 2018)

AssetsCurrent assets
Cash and cash equivalents
Trade accounts receivable
Merchandise
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Other
Accumulated depreciation
Other, net
Total tangible fixed assets
Intangible assets
Investments and other assets
Lease deposits receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 4 -(Unit: millions of yen)First Nine Months(ended September 30, 2019)

6,732
2,838
456
186
2,288
-0
12,502

5,554
2,023
377
154
1,661
-4
9,767

10,107-1,806
8,300
2,088
-984
1,103
9,403
72

11,910-2,544
9,366
2,716-1,153
1,562
10,929
106

2,750
1,274
-11
4,013
13,49025,993

2,995
2,243
-11
5,228
16,263
26,031

PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019

(Unit: millions of yen)
Prior Fiscal Year(ended December 31, 2018)
Liabilities
Current liabilities
Accounts payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Deposit liabilities
Provision for bonuses
Asset retirement obligations
Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deposit liabilities
Asset retirement obligations
Provision for business structure improvement
Other
Noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Stock options
Total net assets
TOTAL LIABILITIES AND NET ASSETS- 5 -First Nine Months(ended September 30, 2019)

7,097
2,270
2,043
1,513
1,445
－
0
331
1,401
16,104

6,633
3,455
1,212
264
2,403
149
134
724
995
15,973

2,931
1,363
644
1,187
15
6,142
22,247

5,828
1,544
848
388
55
8,664
24,638

1,532
813
1,210
-0
3,556

1,631
912
-1,340
-0
1,203

-1
－
-11
-13
203
3,745
25,993

-2
-27
76
47
142
1,393
26,031

PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019(2) Quarterly Consolidated Profit-and-Loss Statement and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Profit-and Loss-Statement)(For the Nine-month Period Ended September 30)

For the nine-month period ended
September 30, 2018
(January 1, 2018 toSeptember 30, 2018)(Millions of yen)
For the nine-month period ended
September 30, 2019
(January 1, 2019 to
September 30, 2019)

Net sales
Cost of sales
GP from sales
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Sponsorship income
Prepaid card balances
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on disposals of non-current assets
Impairment losses
Provision for business structure improvement
Other
Total extraordinary losses
Pre-tax quarterly net income (loss)

45,02325,797
19,225
16,8302,394

51,85730,55521,302
21,257
44

1
0
13
27
30
11
83

6
0
26
48
－
31
112

18
－
7
21
47
2,430

26
90
－
21
137
19

22
0
22

8
52
60

2
76
－
－
79

12
1,791
128
1
1,934

2,374

-1,854

Income taxes-current
Income taxes-deferred
Total income tax
Quarterly net income (loss)
Net income (net loss) attributable to shareholders of theparent company

1,423
-205
1,218
1,156
1,156

691
-622
68
-1,922-1,922(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-month Period Ended September 30)

For the nine-month period ended
September 30, 2018
(January 1, 2018 toSeptember 30, 2018)(Millions of yen)
For the nine-month period ended
September 30, 2019
(January 1, 2019 to
September 30, 2019)

1,156-1,922

-1
－
-24

-1
-27
88

Quarterly net income (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment- 6 -PEPPER FOOD SERVICE Co., Ltd. (3053) Consolidated Financial Results for the Nine-Month Period Ended September 30, 2019

Total other comprehensive income
Quarterly comprehensive income(Breakdown)Comprehensive income for the period attributable toshareholders of the parent

- 7 -

-25
1,130

60
-1,862

1,130-1,862

(3) Important Notes on Quarterly Consolidated Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Notes When There Have Been Significant Changes in the Amount of Shareholders’ Equity)
I. For the nine-month period ended September 30, 2018 (January 1, 2018 to September 30, 2018)
Dividends Paid
(Resolution)
Class of Stock

March 29, 2018
GeneralShareholders’Meeting
July 30, 2018
Board ofDirectors
meeting

Dividends Per
Share (Yen)Common Stock

Total Amount Of
Dividends(millions of yen)309

Date of Record

Payment Date

Dividend
Source15.00

December 31, 2017

March 30, 2018

Retainedearnings

Common stock

311

15.00

June 30, 2018

September 7, 2018

Retainedearnings

II. For the nine-month period ended September 30, 2019 (January 1, 2019 to September 30, 2019)
Dividends Paid
(Resolution)
Class of Stock
Total Amount Of
Date of Record
Payment Date
Dividends Per
Dividends
Share (Yen)(millions of yen)March 28, 2019
Common stock
312
15.00 December 31, 2018
March 29, 2019
GeneralShareholders’Meeting
August 9, 2019
Common stock
315
15.00
June 30, 2019
September 6, 2019
Board ofDirectors
meeting

Dividend
SourceRetainedearnings

Retainedearnings(Changes in Accounting Estimates and Changes in Accounting Policies that are Difficult to Distinguish from Changes in
Accounting Estimates)(Changes in depreciation methods; changes in the number of years of useful life; changes in estimates of asset retirement
obligations)
In the past, we used the declining balance method to depreciate key tangible fixed assets, but as of the consolidated
cumulative first quarter we have changed to the straight-line method.
This change in accounting policy has been triggered by the creation of long-term stability in our business environment, as
we have determined an increase in the demand for our business lines thanks to changing consumer preferences. This has
allowed us to review our store strategy and open significantly more restaurants, while at the same time withdrawing from fewer.
In light of these internal and external environmental changes, we examined the consumption pattern of economic benefits
related to store facilities, which constitute our main assets. The result of these examinations led us to expect that our assets
would be used in a stable manner over a long period of time, with equal consumption over the course of their useful lives; thus
we decided to change to the straight-line method of depreciation, as we believe it better reflects our consumption patterns.
Furthermore, the useful life for conventional store facilities, etc. was primarily based on the number of years stipulated under
the Corporate Tax Law, but with the change in depreciation method we are reviewing the number of years of an asset’s usefullife with effect from the consolidated cumulative first quarter. As a result, we have changed the useful life of buildings andstructures such as store facilities—which was 18 years in the majority of cases—to 12 years in light of the estimated period of
economic viability given the number of years that the store is expected to survive in operation.
In conjunction with that, we have also changed our estimates regarding the period of time before our store-related asset
retirement obligations need to be fulfilled in order to take account of the number of years that a store is expected to survive in
operation; note that these obligations are recorded as the obligation to restore a property to its original condition in line withstore real estate lease contracts.
With the changes above, operating income, ordinary income, and pre-tax income for the first nine months of the current
fiscal year have each increased by ¥276 million compared to calculations under the previous depreciation method.
(Changes in Estimates of Business Structure Improvement Allowances, etc.)
The Company recorded reasonable estimates in the previous consolidated fiscal year for anticipated losses to be incurred inbusiness structure improvements for consolidated subsidiaries. These mainly contained any lease payments that could not becanceled and that we did not expect to be able to recover through sales or sub-leasing, etc., i.e., payments stipulated in building
lease agreements connected with unprofitable stores and stores scheduled for closure. Subsequently, we revised our accounting-8-

estimates as we obtained new information thanks to progress made in business structure improvements, through negotiations
with landlords who had signed building lease agreements, etc., which allowed us to calculate more accurate estimates. In
conjunction with this, the difference between the earlier estimate and this estimate was included as a provision for businessstructure improvement, and quarterly net income before taxes increased by ¥533 million in the first nine months of the current
fiscal year.
The Company has decided to close 44 stores to alleviate competition between Ikinari! Steak stores that is occurring incertain regions of Japan. In conjunction with this, we expect to incur losses such as penalties for the termination of building
lease agreements for stores being closed. In the first nine months of the current fiscal year, the Company has included ¥661
million that can be rationally expected to arise in future losses in provision for business structure improvement, and pre-tax
quarterly net income has been reduced by the same amount. As a result, the ¥128 million difference between the provision andreversal during the nine-month period ended September 30, 2019 has been recorded under extraordinary losses as a provision
for business structure improvement.
(Additional Information)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28; February 16, 2018) havebeen applied since the start of the first quarter of the current fiscal year. Deferred tax assets are shown under “Investments andOther Assets,” while deferred tax liabilities are shown under “Non-current Liabilities.”-9-

(Segment Information, etc.)[Segment Information]
I. The previous consolidated cumulative third quarter (from January 1, 2018 to September 30, 2018)
1. Information on Sales and Profit/Loss for Each Reporting Segment(Unit: millions of yen)
Pepper Lunch

Reporting Segments
Restaurants
Ikinari! Steak

Total
Products

Adjustments(Note 1)

Amountrecorded in
Quarterly
Consolidated
Profit-andLoss
Statements(Note 2)

Sales
5,628
1,144
38,113
136
45,023－45,023
Sales to External
Customers
Total
5,628
1,144
38,113
136
45,023－
Segment Profit
1,002
82
3,657
14
4,757
-2,362
2,394(Note) 1. A segment profit adjustment of minus ¥2,362 million was recorded as corporate expenses not allocated to each segment.
Such expenses are mostly general administrative expenses not attributable to reporting segments.
2. Adjustment is made to operating income reported in the consolidated quarterly statement of income.
2. Information on Impairment Losses from Non-Current Assets and Goodwill for Each Reporting Segment(Unit: millions of yen)
Pepper Lunch
Restaurants
Ikinari! Steak
Products
Total
Amount recordedin Quarterly
Consolidated
Financial
Statements
Impairment loss
34
42
76
76
－
－
II. For the nine-month period ended September 30, 2019 (January 1, 2019 to September 30, 2019)
1. Information on Sales and Profit/Loss for Each Reporting Segment(Unit: millions of yen)
Pepper Lunch

Reporting Segments
Restaurants
Ikinari! Steak

Total
Products

adjustment
amount(Note 1)

Amountrecorded in
Quarterly
Consolidated
Profit-andLoss
Statements(Note 2)

Sales
6,473
1,006
44,222
155
51,857－51,857
Sales to External
Customers
Total
6,473
1,006
44,222
155
51,857－51,857segment profit
937
37
1,758
20
2,754
-2,71044(Note) 1. A segment profit adjustment of minus ¥2,710 million was recorded as corporate expenses not allocated to each segment.
Such expenses are mostly general administrative expenses not attributable to reporting segments.
2. Adjustment is made to operating income reported in the consolidated quarterly statement of income.
2. Information on Impairment Losses from Non-Current Assets and Goodwill for Each Reporting Segment(Unit: millions of yen)
Pepper Lunch
Restaurants
Ikinari! Steak
Products
Total
Amount recordedin Quarterly
Consolidated
Financial
Statements
Impairment loss
8
1,783
1,791
1,791
－

3. OtherSignificant Subsequent Events Related to the Going Concern Assumption
Not applicable.
- 10 -