Financial Results for 1H of the Fiscal Year Ending February 2024

Financial Results Briefing
October 25, 2023
Mr Max Holdings Ltd.
(Securities Code: 8203)

 The earnings outlook contained in this material is a forecast prepared by the Company based on information
available as of the date of this material. As such, it includes risks and uncertainties. Therefore, the Company does
not guarantee that the outlook will be achieved. This material is not intended for investment solicitation. Users of thismaterial should make their investment decisions based on their own judgment.

Mr Max Holdings Ltd. All Rights Reserved1

Financial Results Highlights for the Fiscal Year EndingFebruary 2024
■ Food and PB products were strong as consumers became more cost-conscious.
■ Operating profit decreases due to (1) a decline in gross profit margin, which is attributable
to a decrease in the sales of COVID-related products, and (2) an increase in expenses.
FYE February
2024/
Note 2
1H PlanFYE February
2023/1H Results

FYE February
2024/1H Results

63,952

65,524102.5%

64,700101.3%

61,48062,976102.4%

62,300101.1%Gross Profit

14,19913,837

97.4%

--

Note1

23.1%

22.0%

(1.1%)--

Real Estate Lease Revenue

1,915

1,918

100.2%--

Other Operating Revenue

556628112.9%--

Operating Gross Profit

16,671

16,384

98.3%--

Sales, General, and Administrative
Expenses

13,90014,484104.2%--

Operating Profit

2,771

1,899

68.5%

2,100

90.4%

Ordinary Profit

2,707

1,851

68.4%

2,000

92.6%

Net Profit Attributable to Parent Company
Shareholders

1,832

1,196

65.3%

1,300

92.0%

Unit:Millions of yen
Operating Revenue
Net Sales(Gross Profit Margin)

Year on YearVersus Plan

Note 1: Gross Profit Margin = Gross Profit / Net Sales
Note 2: Plan information is stated only for items disclosed in financial results and financial results briefing materials.

Mr Max Holdings Ltd. All Rights Reserved2

Factors Behind the Change in Operating Profit
Decrease in gross profit

Sales of COVID-related products, whose profit margin is high, decreased.

Increase in refurbishment
expenses

Expenses were incurred for the refurbishment of four stores.

Increase in depreciation

The increase was attributable to the acquisition of assets related to online stores andrefurbishment.

Profit increase(Millions of yen)

Profit decrease

Total

Operatingprofit for FYE
Feb 2023/1H
2,771
Increase inother operating
revenue75
Decrease ingross profit(362)

Increase inrefurbishment
expenses(186)

Increase indepreciation(82)

Increase insales fees
(58)

Operating profit
for FYE Feb
2024/1H
1,899

Increase inother expenses(259)
Major items of other expanses• Logistics expenses• Rent• Facility maintenance fees
• Fee expenses

Mr Max Holdings Ltd. All Rights Reserved3

Existing Stores Sales
Monthly changes in net sales, number of customers, and numberof units purchased (year-on-year change)
110.0%

Year on YearNet sales

Number of customers

Number of units
purchased per customer

106.9%

Sales increased as numberof customers recovered.

105.0%

104.5%
102.8%

100.0%

100.2%

99.9%

100.7%

100.3%

99.0%

98.5%

97.0%
96.1%

96.4%

95.0%
2023/32023/42023/52023/6Mr Max Holdings Ltd. All Rights Reserved

2023/72023/8
4

Net Sales by Division• Sales of food were strong as consumers became more cost-conscious.
(Unit: mn yen)FYE February 2023/1H
Net Sales% of total

YoY

Home Appliances Division

8,930

14.5%

Apparel Division

3,381

Lifestyle DivisionFYE February 2024/1H
Net Sales% of total

YoY

101.7%

8,712

13.8%

97.6%

5.5%

100.5%

3,539

5.6%

104.7%

8,751

14.2%

103.4%

8,675

13.8%

99.1%

Home living Division

5,644

9.2%

99.2%

5,721

9.1%

101.4%HBC Division

12,92221.0%

104.3%

13,00220.6%

100.6%

Food Division

21,847

35.5%

99.5%

23,41737.2%

107.2%

Otherーーー(64)(0.1%)

ーTotal

61,479100.0%

101.4%

63,003100.0%

102.5%

Note: Net sales shown above represent results before consolidation elimination.
Note: The “Other” division represents the amount of application coupon discounts, among other things.

Main products with strong sales<Apparel Division>
Suitcases, shoes<Lifestyle Division>
Pet goods<HBC Division>
Paper products,cosmetics

Mr Max Holdings Ltd. All Rights Reserved<Food Division>
Bread, rice, alcoholic
beverages, bottled beverages
5Changes in Gross Profit Margin• Although cost continued to rise, gross profit margin remained above the pre-COVIDlevels.
• This was owing to the contribution of the discontinuation of the daily rotation ofspecial sales and a higher percentage of PB products in total sales.
Changes in gross profit margin
23.5%

23.1%
23.0%

22.7%

22.7%

Remains above thepre-COVID 21%
range

22.5%

Before COVID-19

22.0%

22.0%

21.7%

21.5%

21.5%

21.0%

* Gross profit margin
Gross profit / Net sales

20.5%
FYE Feb
2019/1HFYE Feb
2020/1HFYE Feb
2021/1HFYE Feb
2022/1H

Mr Max Holdings Ltd. All Rights Reserved

FYE Feb
2023/1HFYE Feb
2024/1H6Status of Priority Measures andFuture Initiatives

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7

Result Forecasts for the Fiscal Year Ending February 2024
—No Change from Initial Forecasts—FYE February 2023
ResultsFYE February 2024
Forecasts

Year on Year

Operating Revenue

126,904

129,500

102.0%Net Sales

122,107

124,600

102.0%

27,68728,235102.0%

22.7%

22.7%

-4,7974,900

102.1%

Operating Gross Profit

32,48533,135102.0%

Sales, General, and AdministrativeExpenses

27,85329,135104.6%

Operating Profit

4,632

4,000

86.4%

Ordinary Profit

4,523

3,800

84.0%

Net Profit Attributable to Parent Company
Shareholders

3,427

2,500

72.9%

Unit mn yen

Gross Profit(Gross Profit Margin(Note))
Real Estate Lease and Other
Operating Revenues

Assumptions for forecasts[Key Management Indicators]
Ratio of change in existing stores

+1.6%

+2.0%

Operating profit to net sales

3.8%

3.2%

Number of Store Openings

None

None

Number of Store Closures

1 store1 storeNumber of stores at year-end

57 stores

56 stores

Year-end dividend (per share)

27 yen21 yenPB product sales composition:30%
Expenses: Assumed increasein electricity costs andinvestments
Refurbishment: 18 storesplannedNote: Gross margin ratio is a ratio to net sales.

Mr Max Holdings Ltd. All Rights Reserved

8Policies for the Fiscal Year Ending February 2024

Move to a more competitive andstronger corporate structure
1. Pursue EDLP (Everyday Low Price) andpromote EDLC
2. Expand PB products
3. Strengthen existing stores throughrefurbishment
4. Respond to market changes through DX
Mr Max Holdings Ltd. All Rights Reserved91. Pursue EDLP and Promote EDLC

Further strengthen EDLP and EDLC that supports EDLP• NB product discount campaigns will be continued.
• We promote carefully selected 30 items by offering
overwhelmingly low prices to focus on the mass sales ofeach item.
 Sales of laundry detergent and confectionery have doubled fromEDLP

the same month last year.

Set standard man-hours according to sales

Improvement of man-hour
productivity
EDLC

Building a staffing model that
optimizes staffing levels inaccordance with sales

Streamline store operations to reduce man-hours by 6%• Such as multi-tasking and standardization of inventory control

Identify issues and perform experiments by the endof the current fiscal year

Plan to implement the model at all stores by 1Q ofthe next fiscal year
Mr Max Holdings Ltd. All Rights Reserved10

1. Pursue EDLP and Promote EDLC
• Man-hour productivity* improved by 15% compared to pre-COVID levels (FYEFebruary 2020/1H) through work standardization.
• The percentage of self-checkout registers is expected to increase to 80% inFYE February 2025 (from 20% at the end of August 2023).
Changes in man-hour productivity(comparison of 1H results for each fiscal year)

Expansion of self-checkout registers

125%
120%

120%

117%

115%

115%

113%110%+15%

105%
100%
100%

Comparison to FYE February
2020/1H, which is indexed to 100%95%
FYE Feb
2020/1HFYE Feb
2021/1HFYE Feb
2022/1HFYE Feb
2023/1HFYE Feb
2024/1H* Man-hour productivity = Gross profit generated by each store employee per hour(Gross profit / Total man-hours)
Mr Max Holdings Ltd. All Rights Reserved112. Expand PB Products• Further increase speed of development.
• Develop environmentally conscious products.

Trends in PB product sales composition

Target

35.0%

30.0%

30.0%
25.0%

19.9%

20.0%
15.0%

17.1%
14.1%

14.4%

FYE Feb
2021/1HFYE Feb
2022/1H

10.0%
5.0%
0.0%
FYE Feb
2023/1HFYE Feb
2024/1HFYE Feb2024

Mr Max Holdings Ltd. All Rights Reserved

123. Strengthen Existing Stores through Refurbishment• Sales of large stores that were refurbished in the previous fiscal year have not increased asmuch as expected.
We will refurbish them again and start the refurbishment of large stores based on thevalidation of results of previous refurbishments.
• Among the 18 stores for which refurbishment is planned, the refurbishment of smaller stores isalready underway.
Revitalize sales floors by displaying value
products in regular product sections.

Indication of product types by walkway tomake it easy to find products

Hashimoto Store (Fukuoka City, Fukuoka)

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4. Respond to Market Changes through DX
Pursuing convenience by combining
online stores, apps, and physical storesStarted experiments in receiving
products in a parking lot.

Development of digitally literate humanresources• Started a training program on
efficient analysis using data
analysis tools in September.
• Started DX literacy education inOctober.

Mr Max Holdings Ltd. All Rights Reserved

14Status of Sustainability Activities• We have identified seven key issues (materialities) and are promoting initiatives
focusing on them.
• We are implementing specific initiatives for the purpose of creating a
comfortable working environment, contributing to local communities, andpreserving the environment.
Promoting women’s empowerment in the workplace

Contribution to local communities

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Mr Max Holdings Ltd. All Rights Reserved

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