Fiscal Year Ending February 2024

Financial Result Briefing
April 24, 2024

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 thedate of this material. As such, it includes risks and uncertainties. Therefore, the Company does not guarantee that the outlook will beachieved. This material is not intended for investment solicitation. Users of this material should make their investment decisions
based on their own judgment.

Mr Max Holdings Ltd. All Rights Reserved

1Financial Results Highlights for the Fiscal Year Ending
February 2024
■ Net sales increased for two consecutive years since consumers became morecost-conscious.
■ Operating profit decreased due to a decline in gross profit margin and anincrease in investment cost.
Unit: Millions of yen

FYE Feb 2023
Results

Operating Revenue

FYE Feb 2024
Results

Year on YearFYE Feb 2024 Plan
note2

Versus Plan

126,904

129,570

102.1%

129,500

100.1%

122,107

124,514102.0%

124,600

99.9%

Gross Profit

27,687

26,949

97.3%

-

-

(Gross Profit Margin) Note 1

22.7%

21.6%

(1.0%)--

Real Estate Lease Revenue

3,820

3,862

101.1%--

Other Operating Revenue

976

1,193

122.2%--

Operating Gross Profit

32,48532,005

98.5%

-

-

Selling, General and Administrative Expenses

27,85328,984104.1%--

Operating Profit

4,632

3,021

65.2%

3,000

100.7%

Ordinary Profit

4,523

2,908

64.3%

2,900

100.3%Net Profit Attributable to Parent Company Shareholders

3,427

2,444

71.3%

2,500

97.8%

Net Sales

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

Mr Max Holdings Ltd. All Rights Reserved2Factors Behind the Change in Operating Profit
Sales of COVID-related products, which have a high profit margin,decreased. Product costs surged.

Decrease in gross profit
Increase in refurbishment expenses
Increase in depreciation

Expenses were incurred for the refurbishment of 12 stores.
Depreciation increased associated with online stores and refurbishment.

Factors of change in operating profit for FYE Feb 2024
(mn yen)（百万円）

Increase

Decrease

Total

Operating profit
for FYE Feb
2023
4,632
Increase in
otheroperatingrevenue259

Decrease ingross profit(738)

Increase insales fees
(134)

Increase inrefurbishment expenses(144)

Major items of other expenses• Logistics expenses• Rent• Facility maintenance fees
• Fee expenses

Increase indepreciation(189)

Operatingprofit for
FYE Feb2024
3,021
Increase inotherexpenses(694)

Mr Max Holdings Ltd. All Rights Reserved

3

Net Sales by Division• Sales of food were strong as consumer became more cost-conscious.
（Unit: Millions of yen)FYE February 2023
Net Sales% of Total

FYE February 2024
YoY

Net Sales% of Total

YoY

Home Appliances Division

17,803

14.5%

99.0%

17,406

14.0%

97.8%

Apparel Division

6,656

5.5%

103.3%

6,677

5.4%

100.3%

Lifestyle Division

17,17214.2%

104.1%

17,066

13.7%

99.4%

Home Living Division

11,581

9.2%

99.7%

11,569

9.3%

99.9%

HBC Division

25,05221.0%

102.6%

25,51420.5%

101.8%

Food Division

43,84035.5%

102.0%

46,50737.3%

106.1%

Other

ー

ー

ー

△ 220

△0.2%

ー

Total

122,108

100.0%

101.8%

124,523100.0%

102.0%

Main products with strong sales<Apparel Division><Lifestyle Division><HBC Division><Food Division>

Suitcases and shoes

Pet goods

Paper products andcosmetics

Rice, alcoholic beverages, instantnoodles, and bottled beverages

Mr Max Holdings Ltd. All Rights Reserved

4Status of Online Store Activities■Online Store<< Opened in March 2023 >>• Offered for the 35,000 items
posted• same prices as in physicalstores• Membership exceeded
100,000 registrations■Prompt delivery service<< Integrated into Online Store in December 2023 >>• Applicable to 600,000 households around Fukuoka CityMr Max Holdings Ltd. All Rights Reserved

5Status of Private Brand Product Activities

Trend in Ratio of PB Products to Total Sales
20.0%

19.3%

17.1%

15.0%

13.6%

14.1%

14.4%

PB Product Development
Weekly Meeting• The product development meetingis held every week, where
immediate decisions are made on
the spot on whether or not to start
the sale of a new product.

10.0%
20年2月期FYE Feb
2020

21年2月期FYE Feb
2021

22年2月期FYE Feb
2022

23年2月期FYE Feb
2023

24年2月期FYE Feb2024

Mr Max Holdings Ltd. All Rights Reserved• 155 new items were debuted for
FYE ended February 2024.

6

Result Forecasts for the Fiscal Year Ending February 2025
Unit: Millions of yen

FYE February
2024 Results

FYE February
2025 Forecasts

Year on Year

129,570
124,514132,000
127,000

101.9%

Gross Profit

26,94927,900103.5%（Gross Profit Margin (note 1))

21.6%

22.0%

-

Real estate Lease and Other Operating Revenues

5,056

5,100

100.9%

32,00528,984
3,021
2,908

33,00029,7003,300
3,200

103.1%

2,444

2,200

90.0%

＋2.2％

＋2.0％

Operating Profit to Net Sales

2.4%

2.6%

Number of Store Openings

None

1 storeNumber of Store Closures

1 storeNone

56 stores

57 stores

18 yen20 yenOperating Revenue
Net Sales

Operating Gross Profit
Selling, General, and Administrative Expenses

Operating Profit
Ordinary Profit
Net Profit Attributable to Parent Company Shareholders【Key Management Indicators】
Ratio of Change in Existing Stores

Number of Stores at Year-end
Year-end Dividend (per share) (note 2)

102.0%

102.5%
109.2%
110.0%
Assumptions for forecasts
Ratio of change in existing
stores: 2.0%
Store openings: 1
It is assumed that expenses
will increase due toinvestment.
• Strengthen the online store• Expand self-checkout• Improve productivity byadopting DX

Note 1: Gross Profit Margin = Gross Profit / Net Sales
Note 2: Year-end dividends (per share) for FYE Feb. 2024 and FYE Feb. 2025 are planned figures.

Mr Max Holdings Ltd. All Rights Reserved

7Medium-term Management Plan

Mr Max Holdings Ltd. All Rights Reserved

8Medium-term Management Plan

01

Review of Previous Medium-term Management Plan
(FYE February 2022 to FYE February 2024)
We promoted “The Way a General Discount Store Should Be,” i.e. Everyday Low Price(EDLP) and EDLC. However, we came short of fulfilling the targets of net sales andoperating profit margin.

Net Sales
Although net sales increased year on year eachyear, the target was not reached due to the lackof results of boosting existing stores.

TargetResult130 billion yen

124.5 billion yen

Operating Profit Margin
The target of operating profit margin was notreached due to a rapid surge in prices, including
energy costs, and the burden of investments for
future projects.

Target5%

Mr Max Holdings Ltd. All Rights Reserved

Result2.4%

9

Medium-term Management Plan

01

Review of Previous Medium-term Management Plan
(FYE February 2022 to FYE February 2024)

1,300

Operating profit margin
remained above the pre-COVID
years

Net sales
売上高
Operating
営業利益率

6.0%

4.7%

profit margin

3.8%

3.8%
3.0%

1,200

2.4%

2.1%

1,100

FYE Feb

20.2期
2020

FYE Feb
21.2期
2021

FYE Feb

22.2期
2022

FYE Feb

23.2期
2023

FYE Feb

24.2期
2024

Medium-term Management
Plan period

0.0%Operating Profit Margin

Net Sales (100 million yen)

Trend in Net Sales and Operating Profit Margin

Operating Gross Profit and Selling, General and
Administrative Expenses (100 million yen)

Although we attempted to change our earnings structure, we did not make enoughprogress to reach the target.
Trend in Gross Profit and SG&A Expenses
Transformation of earnings structure: Reduction in the frequency of
bargain sales and flyers. Abolition of special treatment days for own card.

350

 Operating
gross profit

Cost increased mainly due to future
investments,
such as EC and existing store refurbishment

 Selling,
generaland
営業総利益
administrative
販売管理費
expenses

300

250

200
FYE Feb

20.2期
2020

Mr Max Holdings Ltd. All Rights Reserved

FYE Feb
21.2期
2021

FYE Feb
22.2期
2022

FYE Feb
23.2期
2023

FYE Feb
24.2期
2024

Medium-term Management
Plan period

10Medium-term Management Plan

02

Numerical Targets for Medium-term Management Plan
(FYE February 2025 to FYE February 2029)
Pursue “What a General Discount Store Should Be” and aim to achieve business scale
expansion.

Net SalesFYE Feb 2029

New stores• New stores: 25 stores

40 billion yen• Utilize unoccupied property
effectively.

Existing stores• Improve sales efficiency per area ofstandard product160 billion yen• Expand omnichannel

TargetFYE Feb 2024

124.5 billion yen

200 billion yen

Operating
Profit MarginFYE Feb 2029

FYE Feb 2024

Target2.4%

5%• Improve gross profit margin by revising shelfallocation for regular products and driving PB productdevelopment.
• Enhance productivity by pushing DX.

Mr Max Holdings Ltd. All Rights Reserved

11Medium-term Management Plan

Product Key Strategies

03

Proposing products that realize EDLP and EDLC and enrich customers’ everyday life

KPI

Net sales ofexisting stores

Ratio of PB to
total net sales

TargetChallenge

Number ofcustomers• Drive EDLP.
• Establish and develop a core sales floor for
The number of visiting customers
customers to buy their predetermined
has decreased due to changes inchoices.
customer shopping behavior.
• Promote omnichannel that takes advantageof the characteristics of physical stores.

Purchaseamount per
customer• Revisions to existing items have • Improve product mixtures that lead to
not progressed sufficiently.
customer satisfaction.
• There are insufficient additions • Create a sales floor for customers to chooseof new items that accommodate
their purchases from a broad range of items
changes to customer lifestyles.
without stress.

160 billion
yen

30％

Response• Step up new product development.
• There are not enough new items under PB.
• Create an existing sales floor of regular• Sales floors in which customers find it difficult
products that makes it easy for customers toto compare PB and NB
compare PB and NB.

Mr Max Holdings Ltd. All Rights Reserved

12Medium-term Management Plan

04

Growth Strategy
Speeding up growth with three growth strategies as the pillars

Store Openings• Expand a dominant presence in the Northen Kyushu area and the central
Metropolitan area.

25 store openings

Omnichannel
Spread Omnichannel with apps as hubs

M&A and New
Business Strategy• Offer assortments of products in physical stores and something extra.
• Attract customers in a way that exceeds physical sales areas.

FYE February 2029 [Target] Ratio of net sales: 10%• Expand business scale by M&A.
• Accept logistics contracts from other companies.
• Expand into overseas markets.

Mr Max Holdings Ltd. All Rights Reserved

13

Management that is Conscious of
Cost of Capital and Stock Price

Mr Max Holdings Ltd. All Rights Reserved

14

Initiatives to Achieve Management that is Conscious of Costof Capital and Stock Price
WACC and ROIC:• Return on Invested Capital (ROIC) has remained above Weighted Average Cost of Capital (WACC), but it is on a downward trend.
• It is necessary to improve ROIC when taking into account the risk of interest rates rising in the future.

（％） Trends in Weighted Average Cost of Capital (WACC) and Returnon Invested Capital (ROIC)

9.0
8.0

1. WACC(1) Risk free rate: 10-year government bond yields(2) Risk premium: 6.50%(3) β value:
0.93 Computed over the last 60 months

7.5

7.0

5.7

5.7
6.0
5.0

3.7

4.0
3.0

4.1
3.6

2.0

3.5

3.4

1.0
FYE
Feb
21.2期
2021

Premises:
Both WACC and ROIC are computed using figures as of the end ofeach fiscal year.

FYE
Feb
22.2期
2022

WACC

FYE
Feb
23.2期
2023

ROIC

FYE
Feb
24.2期
2024

2. ROIC(1) Market capitalization is computed using the number ofoutstanding shares excluding treasury shares (average forthe period).
(2) Stock price is the average of the share price at the beginningof the period and that of the end of the period.
(3) Shareholder equity is computed using the book value at theend of the previous and current fiscal years.
3. Difference from the material made in the past year
Figures used in the calculation were changed and the calculation
was made retroactively with those in the past years. Therefore,
the figures herein are different from the WACC and ROIC on
page 17 of the material for the Financial Results Briefing held on
Aril 27, 2023, which is posted on the Company website.
(1) WACC: Risk premium was replaced with the latest one.
(2) ROIC: Shareholders equity was changed to the book value
for each period. Market value was used in theprevious year.
Access to the material for the Financial Results Briefing held on April 27, 2023
https://www.mrmaxhd.co.jp/ir/irlibrary/account/upload/51cedf3d3d1c16911773f968dfd9891ede01d549.pdf

Mr Max Holdings Ltd. All Rights Reserved

15Initiatives to Achieve Management that is Conscious of Costof Capital and Stock Price
Financial results trend:• Operating revenue grew only by 1.5% per year for the last five years.
• The number of stores at year-end has not increased in the last five years, resulting in stagnant growth.

MrMax Trends in Major Management Indicators
FYE Feb FYE Feb FYE Feb FYE Feb. FYE Feb
2020
2021
2022
2023
2024

Annual rate
Growth rate (%)(FYE Feb 2024 /FYE Feb 2020)

Operating Revenue (mil. yen)

122,319

131,789

124,831

126,904

129,570

1.5

Net Sales (mil yen)

117,508

126,913

119,975

122,107

124,514

1.5

Other operating Revenue (mil yen)

4,811

4,875

4,856

4,797

5,056

1.2

Operating profit (mil yen)

2,450

6,011

4,487

4,632

3,021

5.4

Operating profit to net sales

2.1%

4.7%

3.7%

3.8%

2.4%

Total assets (mil yen)

83,60482,306

82,216

81,932

83,511-0.0

Net assets (mil yen)

24,694

27,86329,70632,452

34,129

8.4

57

57

58

57

56

Number of stores at year-end (stores)

Mr Max Holdings Ltd. All Rights Reserved-

16Initiatives to Achieve Management that is Conscious of Costof Capital and Stock Price
ROE is low at 5.5%. There are concerns of the impact of low profitability on the capital, including the downward
trend of ROIC. On the other hand, we have returned profits to shareholders at levels similar to the average oflisted companies.

MrMax Stock-price related Indicators
PER(times)FYE February 2024 results
Average of companies listed on
Prime Market
Average of retailers listed on
Prime Market

PBR(times)ROE(％)

Dividend
payoutratio (％)

Dividend
yield(％)

Equity ratio(％)

D/E ratio(times)

10.9

0.6

5.5

32.1

3.0

40.9

0.68

17.6

1.4

9.2

34.7

2.1

31.8

-

24.9

1.9

7.5

34.3

NA

44.8

-

(Note)• The stock price is the closing price on February 29, 2024.
• In the financial indicators, temporary profits (580 million yen) such as the recording of deferred income tax assets are excluded from net income after tax infinancial results for FYE February 2024.
• Dividend payout and yield are based on the company plan for financial results for FYE February 2024.
• The average numbers of companies and retailers listed on the Prime Market are from the website of TSE.

A condition for enhancing corporate value is to keep announcing the growth strategy and fulfilling it without
fail in addition to raising the profitability of assets.
Profitability

ROE
PBR

5.5%

0.6
times

(Net income /Shareholder equity)

Expectations forthe future

PER
10.9 times(Stock price /Net income per share)

Lower than the average of companies listed on the Prime Market,
and there is a problem with profitability.

The dividend payout ratio and dividend yield are not particularly low,
but we have not reached the situation that can raise
expectations of future growth such as an increase in the numberof stores and the creation of new businesses.

Mr Max Holdings Ltd. All Rights Reserved

Policy for PBR
Improvement• Raise profitability• Indicate future growth
and realize the plan

17

Initiatives to Achieve Management that is Conscious of Costof Capital and Stock Price
To grow equity value, it is essential to implement the medium-term plan andrestore growth potential while enhancing profitability.

Medium-term Management Plan: From FYE February
2025 to FYE February 2029
FYE February 2029: Net sales of 200 billion yen and operating profit margin of 5%
Speeding up growth with three growth strategies as the pillars

Store openings• Expand a dominant presence in the Northen Kyushu area and thecentral Metropolitan area.
25 store openings

Ominichannel• Offer assortments of products in physical stores and something extra.
• Attract customers in a way that exceeds physical sales areas.

Spread Ominichannel with apps as the hubs

FYE February 2029 [Target] Ratio of net sales: 10%

M&A and
New Business Strategy• Expand business scale by M&A.
• Accept logistics contracts from other companies.
• Expand into overseas markets.

Mr Max Holdings Ltd. All Rights Reserved18

Mr Max Holdings Ltd. All Rights Reserved

19