November 14, 2019

PRESS RELEASE
4-1-3 Taihei, Sumida-ku, Tokyo
Pepper Food Service Co., Ltd.
Kunio Ichinose, Representative Director, President and Chief
Executive Officer(Code number: 3053) TSE 1st Section
Ichiro Yasuda, General Manager ofInquiries:
General Affairs Division
Telephone number:+81 (0)3 3829 3210

Notice of Revision of Earnings Forecast and Revision of Dividend Forecast (No Dividend), andRecording of Extraordinary Losses
Pepper Food Service Co., Ltd. (the “Company”) and the Pepper Food Service Group (the “Group”) recorded thefollowing impairment losses on non-current assets and provision for business restructuring for the third quarter of thefiscal year ending December 31, 2019 (July 1, 2019 – September 30, 2019). Accordingly, the full-year earnings forecast
for the fiscal year ending December 31, 2019 and the dividend forecast for the fiscal year ending December 31, 2019
announced on June 28, 2019 have been revised as follows.
1. Revision of earnings forecast for the fiscal year ending December 31, 2019(1) Revision of consolidated earnings forecast figures for the fiscal year ending December 31, 2019
(January 1, 2019 – December 31, 2019)

Net sales

OperatingincomeOrdinary
incomePrevious forecast (A)Million yen
76,423

Million yen
2,061

Million yen
2,012

Net income
attributabletoshareholdersof theparentcompany
Million yen
1,529

Revised forecast (B)66,538-731-731-2,503

Increase (decrease) (B-A)-9,887-2,792-2,743-4,032Rate of change (%)-12.9%---(Reference) Previous fiscal year’s
results (fiscal year ended December
31, 2018)

63,5093,863

3,876-121

Net income pershare

73.38 yen
-119.46 yen－(2) Revision of non-consolidated earnings forecast figures for the fiscal year ending December 31, 2019
(January 1, 2019 – December 31, 2019)
Net sales
Previous forecast (A)Million yen
75,661

Ordinary income
Million yen
2,226

Net income
Million yen
1,529

Net income pershare
73.38 yen

Revised forecast (B)65,899-455-2,423

Increase (decrease) (B-A)-9,762-2,681-3,952Rate of change (%)-12.9％--(Reference) Previous fiscal year’s
results (fiscal year ended December
31, 2018)

62,6504,798-530

115.64 yen－(Note) The earnings forecast provided above has been determined by the Company based on information available at the time of this release and contains
risks and uncertainties. Actual results and earnings, etc. may differ from the forecasts provided.

(3) Reasons for the revision
For the consolidated performance in the nine months ended September 30, 2019, the initial plan to open 210 new
stores was revised to opening 115 stores and focus was placed on improving sales in existing stores in light ofcompetition arising between the company's own brands in the Ikinari! Steak business. However, as a result ofcompetition between the Company’s own brands, sales decreased significantly in the Company’s existing stores. In aneffort to decrease competition between the Company’s own brands, the Company decided to close 44 Ikinari! Steakstores. Consequentially, the Company recorded a decrease in the operating income of existing stores and extraordinary
losses associated with the decision to close the 44 Ikinari! Steak stores, resulting in the above revision to the earnings
forecast announced on June 28, 2019.
2. Revision of dividend forecast(1) Revision of dividend forecast for the fiscal year ending December 31, 2019
Record date

Dividend per share2Q-end
yen
15.00

Previous forecast
This revised forecast

Year-end－

Results for the current fiscal year

15.00

Results for previous fiscal year
(Fiscal year ended December 31,2018)

15.00

Totalyen
15.00

yen
30.00

0.00

15.00

－－
15.00

30.00

(2) Reasons for the revision
The Company’s basic policy is to distribute profits to shareholders once we have made an overall judgment of theCompany’s financial circumstances, business performance, and other general management matters, having secured
internal reserves in preparation for the future development of our business operations. However, the year-end dividend
forecast for the year ending December 31, 2019 has regrettably been revised to “no dividend” due to net income being
expected to be significantly less than the forecast as stated in “1. Revision of earnings forecast for the fiscal year ending
December 31, 2019” above.
We sincerely apologize to our shareholders and ask for their continued support.
3. Recording of extraordinary losses(1) Recording of extraordinary losses(i) Recording of impairment loss
Of the 489 Ikinari! Steak stores operated by the Company, an impairment loss of 1,685 million yen has been

recorded for the nine months ended September 30, 2019 due to the 44 stores to be closed and three stores expected
to undergo a decline in profitability.
(ii) Recording of provision for business restructuring
In the 44 stores the Company has decided to close, the penalties pursuant to cancellation clauses paid to lessors
have been recorded under extraordinary losses as a provision for business restructuring totaling 661 million yen.
(2) Reasons for recording of extraordinary losses
The extraordinary losses have been recorded to reduce operating loss of stores being closed and to improve
profitability of stores neighboring those being closed.

END