Financial Results for 1H of the Fiscal Year Ending February 2023

Financial Results Briefing
October 26, 2022
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 notguarantee 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.

October 26, 2022

Mr Max Holdings Ltd.

1

Financial Results Highlights for 1H of the Fiscal Year Ending February 2023
Higher revenue and improved gross profit margin offset the increase inexpenses, resulting in higher operating profit.
Millions of yen

FYE February
2022/1HFYE February
2023/1H

Year on Year

Operating Revenue

63,10863,952101.3%Net Sales

60,662

61,480101.3%

Gross Profit

13,79014,199103.0%(Gross Profit Margin)

22.7%

23.1%

+0.4%

Real Estate Lease Revenue

1,918

1,915

99.8%

Other Operating Revenue

526

556

105.7%

Operating Gross Profit16,235

16,671102.7%

Sales, General, and Administrative Expenses

13,626

13,900102.0%

Operating Profit

2,609

2,771

106.2%

Ordinary Profit

2,559

2,707

105.8%Net Profit Attributable to Parent Com pany Shareholders

1,636

1,832

112.0%

October 26, 2022

Mr Max Holdings Ltd.

2

Factors behind the Increase in Operating Profit
The increase in gross profit offset higher electricity rates and cashless
payment fees, resulting in an operating profit of +162 million yen.
(Millions of yen)

Increase
Increase ingross profit
409

Operating profit for
FYE Feb 2022/1H
2,609Decrease inpersonnel
expenses71

Decrease

Total

Year on year change

Increase in otheroperating revenues
26+162 million yen(106.2%)
Increase inutilities costs-122
Increase in otherexpenses
Increase in-101
sales fees
-84

Soaring
electricity rates

Operating profit for
FYE Feb 2023/1H
2,771
Increase indepreciation-37

Increase in
cashlesspayment fees

Improvement ingross profit margin
contributed
October 26, 2022

Mr Max Holdings Ltd.

3

Existing Stores Sales
Despite the declining stay-at-home demand, the number of units purchased per customer rose.
Year-on-year Changes in Sales, Customer Foot Traffic, and Number of Units Purchased(Existing Stores)
売上高
SalesCustomer
客数

The number of units
一人あたり買上個数

Foot Trafficpurchased per customer

106%

104.9%The number of units purchased per
customer remained above theprevious year’s level.

104%102.2%

102%

101.3%

101.3%

101.5%

100.4%

101.4%

100.1%
101.1%

100%

101.2%
99.2%

100.2%
99.4%

97.5%

98%

98.3%

97.1%

96%

97.6%

97.0%

94%
2022/3October 26, 2022

2022/42022/5Mr Max Holdings Ltd.

2022/62022/72022/8

4

Net Sales by Division• Due to the continued heat wave, seasonal home appliances such as air conditioners and fans performed well.
• Leisure goods, oral care products, etc. grew as movement restrictions were eased.
(Millions of yen)FYE February 2022
1H
March 2021 toAugust 2021

FYE February 2023
1H% of total

March 2022 toAugust 2022

Main products that performed well

<Home Appliances Division>
Seasonal home appliances such as
14.5%
air conditioners and fans

% of total

Home Appliances Division

8,556

14.1%

8,930

Apparel Division

3,592

5.9%

3,381

5.5%

Lifestyle Division

8,465

14.0%

8,751

14.2%

Home Living Division

5,688

9.4%

5,644

<Lifestyle Division>
Leisure goods, bicycles
9.2%

HBC Division

12,392

20.4%

12,922

21.0%

Food Division

21,95236.2%

21,847

35.5%

Total

60,647100.0%

61,479100.0%<HBC Division>
Oral care products, masks

Note: Non-consolidated sales of Mr Max
October 26, 2022

Mr Max Holdings Ltd.

5

Gross Profit Margin Improvement
Stable monthly improvement in gross profit margin compared to the previous year
Monthly Ratio of Gross Profit to Net Sales
Gross Profit 荒利益率Margin
23年2月期
for FYE Feb 2023

Improvement factors• Thorough inventory control• Increase in percentage of PB
product sales to total sales

Gross Profit 荒利益率
Margin22年2月期
for FYE Feb 2022

24.0%

FYE Feb 2023
23.5%

23.1%
23.0%

+0.4%

FYE Feb 2022

22.5%

22.7%

22.0%

21.5%

21.0%
3月
Mar

October 26, 2022

4月
Apr

5月
May

6月
Jun

Mr Max Holdings Ltd.

7月
Jul

8月
Aug

第2四半期累計
1H Total

6Priority Measures for the Fiscal
Year Ending February 2023

October 26, 2022

Mr Max Holdings Ltd.

7

1. Continued Focus on EDLP: Pursuing “Valuable Low Prices”
Price appeal for both PB and NB products[Merchandise display to reduce work]

EDLP (Everyday Low Price) measures to be continued in 2H.
October 26, 2022

Mr Max Holdings Ltd.

8

1. Continued Focus on EDLP
Percentage of app member sales to total sales increased with the increase in the number ofapp members.
⇒ Members are continuously using the app.
Number of App Members and Percentage of Total Sales(Cumulative Total for Each Quarter)
130

45%

12042%

11039%

10036%9033%

80

FYE Feb
22年2月期
2022/1Q

第１Q

Number of app members(inten thousands)
アプリ会員数（万人）

91

Percentage of app
アプリ会員売上高構成比
member sales to totalsales

34%

October 26, 2022

9134%

FYEFeb
22年2月期
2022/2Q

第2Q

97

97

36%

36%

FYEFeb
22年2月期
2022/3Q

第3Q

105

105

39%

39%

FYE Feb
22年2月期FYE Feb
23年2月期FYE Feb
23年2月期

2022/4Q

第4Q

2023/1Q

第1Q

2023/2Q

112

112

119

119

125

41%

42%

43%

41%

42%

30%

第２Q
125

43%

130,000
increase

Mr Max Holdings Ltd.

92. Expand the Lineup of PB Products
Percentage of PB product sales to total sales: 16.4% (FYE Feb 2023/1H actual) → 20.0% (FYE Feb 2023 target)
Changes in Percentage of PB Product Sales to Total Sales
22.0%
Target20.0%

Percentage of total sales

20.0%

18.0%

16.4%
16.0%

14.1%
14.0%

14.4%

13.6%

12.0%

10.0%
FYE
Feb 2020
20.2期期末
October 26, 2022

FYE
Feb 2021
21.2期期末

FYE
Feb 2022
22.2期期末
Mr Max Holdings Ltd.

FYE
Feb 2023/1H
23.2期第2Q

FYE
Feb 2023
23.2期期末
102. Expand the Lineup of PB Products

Further expand PB products in Q3 onward.
Examples of PB products that performed particularly wellthrough August
Mayonnaise 99,000 bottles *(200% compared to the previous year)

Development of newPB

Oatmeal 25,000 servings *(Launched in November 2021, sales volume is 10times that of NB.)

Revitalization ofexisting PB

Percentage of PB sales
to total sales

20 %to be achieved

214 yen (including tax)
As of October 2022

October 26, 2022

430 yen (including tax)
As of October 2022
* Results are for the period from March to August 2022.

Mr Max Holdings Ltd.

113. Productivity Improvement
Store person-hour productivity increased 19% over 5 years.
Person-hour Productivity(Comparison of Results for the 2Q of Each FYE)
125%

Over 5 years,
120%

115%

121.3%

19%
improvement

119.2%
114.2%

Major measures for thecurrent fiscal year• Controlling the fluctuation of delivery
volume by day of the week
• Use of digital tools

110%

105%
101.5%
100.0%
100%
2019年2月期
FYE Feb
第2Q
2019/2Q

2020年2月期
FYE Feb
第2Q
2020/2Q

2021年2月期
FYE Feb
第2Q
2021/2Q

2022年2月期
FYE Feb
第2Q
2022/2Q

2023年2月期
FYE Feb
第2Q
2023/2Q* Person-hour productivity refers tothe gross profit per hour earned by
one employee.

(Comparison with FYE Feb 2019/2Q as 100%)
October 26, 2022

Mr Max Holdings Ltd.

12

4. Investment to Strengthen Existing Stores
Initial plan: Renovate 14 stores• Improvement of sales per tsubo (3.3 m2)• Improvement of store productivity

Status of recent major renovation
Oyumino Store (Chiba Prefecture)• Renovation of 2,300 tsubo of sales floor space• Expansion of pharmaceuticals, hygiene
products, and food products
OyuminoStoreRenewal Openon September 29, 2022 (Thursday)

Complete renovationequivalent to theGrand Open

October 26, 2022

Mr Max Holdings Ltd.

13

4. Investment to Strengthen Existing Stores
Restructuring of EC business: Provide services that respond to changes in the market environment.

EC  Store  App = New Services

Business Environment• Intensifying competition from insidebusiness categories to across businesscategories
Eea lesss o ing

ew
disco err aaas oE• Diversifying customer preferences andshopping channels

ing• Changing to a living environment withthe smartphone as a hub

October 26, 2022

Mr Max Holdings Ltd.

14

Publication of Integrated Report
The Integrated Report 2022 was published in September 2022.

The Integrated Report is available on our website.
https://www.mrmax.co.jp/corporation/ir/integrated_report/

October 26, 2022

Mr Max Holdings Ltd.

15

Earnings Forecast for the Fiscal YearEnding February 2023
➢ Operating revenue is expected to increase by 2.4% year-on-year.
➢ We forecast an operating profit of 5.0 billion yen, equivalent to 111.4%of the previous year.
FYE February 2022
ActualFYE February 2023
ForecastYear on Year (%)

Operating Revenue

124,831

127,800

102.4

Net Sales

119,975

123,000

102.5

26,812

27,429

102.3

22.3%

22.3%

4,856

4,871

100.3

31,66832,300102.0

27,181

27,300

100.4

4,487

5,000

111.4

Ordinary Profit
Net Profit Attributable to Parent Company
Shareholders[Key Management Indicators]

4,346

4,800

110.4

2,853

3,000

105.1

Ratio of change in existing stores (%)

(6.1)

+2.2

Number of Store Openings

10

Number of Store Closures

015857

Millions of yen

Gross Profit(Gross profit margin (%))
Real Estate Lease Revenue, Other
Operating Revenue
Operating Gross Profit
Sales, General, and AdministrativeExpenses
Operating Profit

Number of Stores at Year-end

October 26, 2022

Mr Max Holdings Ltd.

16

October 26, 2022

Mr Max Holdings Ltd.

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