Fiscal Year Ending February 2023

Financial Results Briefing
April 27, 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 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 Reserved1

Financial Results Highlights for the Fiscal Year EndingFebruary 2023
 Increased sales due to customers’ support for the EDLP (Everyday Low Price)promotion.
 Increased profits due to the offsetting of higher expenses due to higher
electricity prices and other factors with improved gross profit margins.
Unit：Millions of yen

FYE February 2022

FYE February 2023

Year on Year

Operating Revenue

124,831

126,904

101.7%Net sales

119,975

122,107101.8%

Gross profit

26,812

27,687103.3%(Gross profit margin)

22.3%

22.7%

+0.3%

Real Estate Lease Revenue

3,832

3,820

99.7%

Other Operating Revenue

1,023

97695.4%

Operating Gross Profit

31,66832,485102.6%

Sales, General, and Administrative Expenses

27,181

27,853102.5%

Operating profit

4,487

4,632103.2%

Ordinary profit

4,346

4,523

104.1%Net Profit Attributable to Parent Company Shareholders

2,853

3,427

120.1%Mr Max Holdings Ltd. All Rights Reserved2Factors behind the increase in operating profit
Offset higher electricity prices, cashless payment fees and other expenses withhigher gross profit.
(mn yen)Increase ingross profit
875ProfitincreaseProfitdecrease

Total

Decrease inother operating
revenue(58)
Increase inutilities costs(304)
Operating profit for
FYE Feb 2022
4,487

Increase insales fees
(169)

Operating profit for
FYE Feb 2023
4,632
Increase inother expenses Increase indepreciation
(155)
(44)

Operating profit+145 million yen

103.2% YoY

Mr Max Holdings Ltd. All Rights Reserved

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Existing stores sales
Amid the trend for price hikes, the number of units bought per customer was
higher than in the previous fiscal year on the whole.
110%Trends in net sales, number of customers, and number of items purchased percustomer compared to the same month of the previous fiscal year (existing stores)

Rush demand foralcoholic beverages

107.7%
Rebound fromthe previousyear’s stay-athome demand105.4%

104.9%
105%

Year on Year

100%

95%

March
3月

April
4月

Net sales

May
5月

June
6月

July
7月

August
8月

Number of customers

September
9月

October
10月

November
December
11月
12月

January
1月

February
2月

Number of units purchased per customer

Mr Max Holdings Ltd. All Rights Reserved

4Net sales by division••

Replacement of refrigerators and washing machines with energy-saving models
has been driven by growing awareness of energy saving.
Leisure goods and bottled beverages have performed well due to increased
opportunities to go out.
(Unit: mn yen)FYE February 2022
Net sales% of total

FYE February 2023
YoY

Net sales% of total

YoY

Home Appliances Division

17,977

15.0%

89.8%

17,803

14.6%

99.0%

Apparel Division

6,443

5.4%

87.1%

6,656

5.5%

103.3%

Lifestyle Division

16,502

13.8%

96.1%

17,17214.1%

104.1%

Home living Division

11,611

9.7%

92.6%

11,5819.5%

99.7%

HBC Division

24,405

20.3%

96.4%

25,052

20.5%

102.6%

Food Division

42,992

35.8%

96.6%

43,84035.9%

102.0%

Total

119,933

100.0%

94.5%

122,108

100.0%

101.8%

Note: Non-consolidated sales of Mr Max.

Main products with strong sales<Home Appliances
Division>
Refrigerators, washingmachines, air conditioners<Apparel Division>
Suitcases, shoes<Lifestyle Division>
Pet goods, bicycles,
leisure goods<HBC Division>
Masks, oral careproducts

Mr Max Holdings Ltd. All Rights Reserved<Food Division>
Bottled beverages,
frozen food products5Policies and Priority
Measures for the Fiscal
Year Ending February 2024

Mr Max Holdings Ltd. All Rights Reserved6Result Forecasts for the Fiscal Year Ending February2024
Unit: mn yen

FYE February 2023
ResultsFYE February 2024
Forecasts

Year on Year

126,904
122,107

129,500
124,600

102.0%

Gross Profit

27,68728,235102.0%(Gross Profit Margin)

22.7%

22.7%

-4,7974,900

102.1%

32,48527,85333,135
29,135102.0%

4,000
3,800

86.4%

Ordinary Profit

4,632
4,523

Net Profit Attributable to Parent Company Shareholders

3,427

2,500

72.9%

＋1.6％

＋2.0％

Operating profit to net sales

3.8%

3.2%

Number of Store Openings

NoneNone

Number of Store Closures

1 storeNone

Number of stores at year-end

57 stores

57 stores

27 yen21 yen

Operating Revenue
Net Sales

Real Estate Lease and Other Operating Revenues

Operating Gross Profit
Sales, General, and Administrative Expenses

Operating Profit[Key Management Indicators]
Ratio of change in existing stores

Year-end dividend (per share) *Planned figures

Mr Max Holdings Ltd. All Rights Reserved

102.0%

104.6%
84.0%

Assumptions forforecasts
PB product sales
composition: 30%
Expenses: Assumed
increase in electricity
costs and investments
Refurbishment:
18 stores planned

7Policies for the Fiscal Year Ending February 2024

Move to a more competitive andstronger corporate structure
1. Pursue EDLP and promote EDLC
2. Expand PB products
3. Strengthen existing stores throughrefurbishment
4. Respond to market changes throughDX
Mr Max Holdings Ltd. All Rights Reserved

8Policies on FYE February 2024 – 1. pursue EDLP and promote EDLC

Promote EDLP and EDLC to support it
Pursue EDLP

Promote EDLC

 Increase sales per unit area with mass
displays of one product Reform operations by reviewing
work systems and shelf allocation

 Expand PB products Utilize digital tools, etc.

Mr Max Holdings Ltd. All Rights Reserved9

Policies on FYE February 2024 – 2. Expand PB products

Measures to expand PB products
Expand the lineup of handling products

Increase exposure on the sales floor and promote PB products
throughout the year

35.0%

Trends in PB product sales
composition
Target

30.0%

30.0%
sales composition

25.0%
20.0%
15.0%

17.1%
13.6%

14.1%

14.4%

10.0%
5.0%
0.0%

FYE Feb FYE Feb FYE Feb FYE Feb FYE Feb
20.2期末 21.2期末 22.2期末 23.2期末 24.2期末
2020
2021
2022
2023
2024

Mr Max Holdings Ltd. All Rights Reserved

Display example of PB products(confectionery sales floor)

10Policies on FYE February 2024 – 2. Expand PB products••

Develop a wide range of products without specializing in a particular sector
Expand the line of environmentally friendly products (plastic reduction, simplified
packaging, products with certification marks)

Home appliances

Locabo nuts chocolate

51% paper used forpackaging.
Can be disposed of as
paper waste.

Interior goodsSnacks

Half-labelled plastic bottles
Reduced labelingmaterials by 58.6%
compared to our company’s
conventional products.
Plastic bottles arelighter, from26 g to 22 g.
Mr Max Holdings Ltd. All Rights Reserved11

Policies on FYE February 2024 –3. Strengthen existing stores through refurbishment
FYE February 2023 Refurbishment

resultFYE February 2024 Refurbishment

13 stores  planned 18 stores

Change to a layout that enhances the attractiveness of the regular aisle sales areaand makes it easier for customers to enjoy shopping
Revitalize standard sales floors further by changing the product mix

Oral care products displayed on a standard sales floor

Condiments displayed on a standard sales floor

Mr Max Holdings Ltd. All Rights Reserved

12Policies on FYE February 2024 –4. Respond to market changes through DX
Service development and business transformation utilizing digital data
Increase customer numbers and sales throughimproved convenience by increasing the numberof contact points with customers

Shopping online

Transform operations throughutilizing digital data

Shopping at MrMax stores

Receive at home Receive in-store
MrMax Online Storehttps://mrmax.jp/ Training DX human resources Eliminate over-reliance on individual
employees through work standardization
Mr Max Holdings Ltd. All Rights Reserved

13Medium-term management planFYE February 2024

Pursue the ideal form for a general discount store
Developgeneral
discount stores

Improve
profitability ofexisting stores

Operatingprofit margin
5%

Net sales 130 billion yen
Operating profit 6.5 billion yen
Operating profit margin 5%

Mr Max Holdings Ltd. All Rights Reserved

14

Initiatives to achieve
management awareness ofcapital costs and share price

Mr Max Holdings Ltd. All Rights Reserved15Initiatives to achieve management awareness of capital costs and share price
Capital cost: return on invested capital (ROIC) has been above WACC for the past 3 years
 Our capital costs have exceeded the profitability levels required by the market

(%)
10.0

Trends in weighted average cost of capital (WACC) and returnon invested capital (ROIC)(Notes)
Both WACC and ROIC were computed using figures as of the end ofeach year.

8.4
7.0

6.8

•

WACC
Risk-free rate: 10-year government bond rate
Risk premium: 5.50%
β value: 0.99 Computed over the last 60 months.
Borrowings at end of period include lease obligations(Cash and deposits are not deducted. Calculated on a gross basis)•

ROIC
Market capitalization is computed using the number of shares
excluding treasury shares (average for the period).
Share price is the average of the share price at the beginning of theperiod and the share price at the end of the period.

5.0

3.7

3.4

FYE Feb
21.2期
2021

FYE Feb
22.2期
2022

3.0-WACCFYE Feb
23.2期
2023

ROIC

Share price: PER is 7.5x and PBR is 0.7x
 We assume that investors do not fully anticipate the future growth potential ofour company

Mr Max share price-related indicators
PER(times)

FYE February 2023 Results

7.5

PBR(times)

0.7

ROE( ％)

9.0

Dividend
payout ratio(%)

Dividend
yield (%)

Equity ratio( ％)D/E ratio(times)

31.1

4.2

39.6

0.75

Mr Max Holdings Ltd. All Rights Reserved(Notes)• The share price is the closing price on 28 Feb 2023.
• Financial indicators are based on profit after tax for theresults of FYE February 2023 excluding the impact of
one-off property disposals (546 million yen).
• Dividend payout ratio and yields are based on
corporate plans for the results of FYE February 2023.

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Initiatives to achieve management awareness of capital costs and share price• Operating income in FYE February 2023 achieved a high annual growth rate of 14%
compared to 5 years ago• On the other hand, sales grew at an annualized rate of 1.7% and the number of storesremained at 57, the same as 5 years ago
We assume that our company has gained earning power but has yet to achieve the businessexpansion that investors expect

FYE Feb 2019 FYE Feb 2020 FYE Feb 2021 FYE Feb 2022 FYE Feb 2023

Year on Year (%)(FYE Feb 2023 / FYE Feb2019)

Operating Revenue (mil. yen)

118,546

122,319

131,789

124,831

126,904

1.7

Net Sales (mil. yen)

113,988

117,508

126,913

119,975

122,107

1.7

2,746

2,450

6,011

4,487

4,632

14.0

Total assets ( mil. yen)

80,13083,60482,306

82,216

81,932

0.6

Net assets ( mil. yen)

24,042

24,694

27,86329,70632,452

7.85757575857

0.0

Sales f loor area at y ear-end (tsubo )99,71398,89898,532

99,60899,124(0.1)

Number of personnel at year-end

2,550

2,521

2,503

2,464

2,411(1.4)

Operating Profit ( mil. yen)

Number of stores at year-end

Notes: 1 tsubo = 3.31 square meters
Number of personnel at y ear-end = number of employ ee + av erage number of part-time workers

Mr Max Holdings Ltd. All Rights Reserved

17Initiatives to achieve management awareness of capital costs and share price

Began addressing issues related to future growth in the mediumterm management plan•

Investment to improve profitability of existing stores and to create and nurture
growth areas•

enhance corporate value through contribution to realizing a sustainable society

Measures proposed in the Medium-Term 3 Year Plan and their implementation◆Improve profitability of existing stores (increase value)
Number of refurbished stores: FYE Feb 2022: 7 stores ➡ FYE Feb 2023: 13 stores ➡ FYE Feb 2024: 18 stores (planned)
PB products sales ratio: FYE Feb 2022: 14% ➡ FYE Feb 2023: 17% ➡ FYE Feb 2024: 30% (target)◆Investment to create and nurture growth areas
Number of app members FYE Feb 2022: 1.12 million ➡ FYE Feb 2023: 1.38 million
Launched online store business in March 2023, and started app integration in April 2023

◆Contribute to realizing a sustainable society
Established Sustainability Committee in February 2022 and disclosed materiality (quantitative targets) in August 2022
Disclose TCFD in May 2023 (planned)

Mr Max Holdings Ltd. All Rights Reserved18

Mr Max Holdings Ltd. All Rights Reserved

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