Financial Results for Fiscal Year Ended February 2022

Financial Results Briefing
April 21, 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.

April 21, 2022Mr Max Holdings Ltd.

1

Financial Results Highlights for the Fiscal Year Ended February 2022
• Operating revenue decreased by 6% in reaction to the sharp increase in demand of the previous fiscal year.
• Although profit decreased, operating profit was about 1.8 times higher than the year before last.
FYE February 2021

FYE February 2022

Millions of yen

Year on Year

Compared to Year Before
Last (FYE February 2020)

131,789

124,83194.7%

102.1%

126,913

119,975

94.5%

102.1%

Gross Profit

28,721

26,812

93.4%

107.4%(Gross Profit Margin)

22.6%

22.3%

(0.3%)+1.0%

Real Estate Lease Revenue

3,882

3,832

98.7%

99.3%

Other Operating Revenue

993

1,023

103.1%

107.3%

Operating Gross Profit

33,597

31,66894.3%

106.3%

Sales, General, and Administrative Expenses

27,58527,181

98.5%

99.4%

Operating Profit

6,011

4,487

74.6%

183.1%

Ordinary Profit

5,748

4,346

75.6%

194.2%Net Profit Attributable to Parent Company
Shareholders

3,542

2,853

80.5%

215.9%

Operating Revenue
Net Sales

April 21, 2022

Mr Max Holdings Ltd.

2

Sales Summary (1): Changes in Sales and Customer Foot Traffic of Existing StoresBoth sales and customer foot traffic started to recover.
Existing stores: Changes Year-on-Year Percentage
Change105.0%

Sales of existing stores
1H 91.6% → 2H 96.4%
Customer foot traffic of existing
stores
1H 90.8% → 2H 97.3%

100.0%
95.0%
90.0%
85.0%
80.0%

Sales
April 21, 2022

Customer foot traffic
Mr Max Holdings Ltd.

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Sales Summary (2): As COVID-19-related Special Demand Has Run Its
Course, Results Were Mixed Depending on Product Category・While home appliances and apparel struggled, lifestyle, HBC and food remained strong.
・Gross profit margin increased 1.0% compared to the year before last despite rising costs.
Sales by DivisionFYE February 2020
March 2019
to February
2020

FYE February 2021
March 2020
to February
2021% of total% of total(Millions of yen)FYE February 2022
March 2021
to February2022% of total

Home Appliances Division

16,962

14.4%

19,48415.4%

17,522

14.6%

Apparel Division

8,505

7.2%

7,918

6.2%

6,897

5.8%

Lifestyle Division

15,601

13.3%

17,16313.5%

16,502

13.8%

Home Living Division

11,123

9.5%

12,543

9.9%

11,6119.7%

HBC Division

24,741

21.1%

25,32520.0%

24,405

20.3%

Food Division

40,58034.5%

44,48335.0%

42,992

35.8%

Total

117,516100.0%

126,920100.0%

119,933

100.0%

Note: Non-consolidated sales of Mr Max

Gross Profit MarginFYE February 2020

FYE February 2021

FYE February 2022

21.3%

22.6%

22.3%

April 21, 2022

1% increase

Mr Max Holdings Ltd.

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New Store Opening
One new store opened in FYE February2022
 Mr Max Itoshima Store• Opened on December 10, 2021
• Location: Itoshima City, Fukuoka Prefecture• Store area: 2,641 m2 (799 tsubo)• Format: Discount store• Sales target for the first year: 1.3 billion yen

Sales of Itoshima Storeversus plan

+22%
April 21, 2022

Opening day(total sales through the end of February 2022)
Mr Max Holdings Ltd.

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Measures to be Taken in andafter the Fiscal Year EndingFebruary 2023

April 21, 2022

Mr Max Holdings Ltd.

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Medium-Term Management Plan
Strive to Make Ideal Store Operations as a General DiscountStore a Reality

Building a general DS

Improving the profitabilityof existing stores

Operating profit margin of5%

Fiscal Year Ending February 2024: Net Sales 130 billion yen
Operating Profit 6.5 billion yen Operating Profit margin 5%
April 21, 2022

Mr Max Holdings Ltd.

7

Medium-Term 3-Year Plan
(FYE February 2022–FYE February 2024)
3-Year PlanFYE February 2022
(Actual)FYE February 2023
(Plan)FYE February 2024
(Plan)

119.9

123.0

130.0

4.4

5.0

6.5

3.7%

4.1%

5.0%

2.8

3.0

4.0

82.2

83.3

84.3

29.6

31.8

34.7

26.7

27.4

28.4

—Main assumptions—(Profit or Loss)
Net Sales (billion yen)
Operating Profit (billion yen)
Operating Profit Margin
Profit (billion yen)
(Financial Position)
Total Assets (billion yen)
Shareholders' Equity(billion yen)Interest-bearing Debt
(billion yen)(Relevant Indicators)
Ratio of changes in existingstores
Gross Profit Margin
Number of Stores at Year-end
ROE
Net D/E Ratio (times)
Dividend per Share* All dividend per share figures are plans.

April 21, 2022

(6.0%)

＋2.2%

＋5.7%

22.3%

22.3%

23.0%

58 stores

57 stores

57 stores

9.9%

9.7%

12.3%

0.9

0.8

0.8

27 yen27 yen37 yenMr Max Holdings Ltd.

Fiscal Year Ending February 2023
・Increase in store productivity
・Renovation of 14 stores・Target percentage of PB product sales: 20%
・Reconstruction of EC business・No new store openings, one store closure

Fiscal Year Ending February 2024

・The EC business will start to provide services at thebeginning of the year, and will create new customers
through working closely with existing stores.
・Target percentage of PB product sales: 30%
・No new store openings or store closures

8Measures for the Fiscal Year Ending February 2023

Establishing a General DS

April 21, 2022

1. Continued focus on
EDLP (Everyday
Low Price)

3. Productivity
Improvement

2. Expand theLineup of PB
Products

4. Investment tostrengthen
existing stores
Mr Max Holdings Ltd.

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1. Continued Focus on EDLP: Pursuing “Valuable Low Prices”(2) Product displays that areappealing to customers(1) Strengthen low-price campaigns

April 21, 2022

Mr Max Holdings Ltd.

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1. Continued Focus on EDLP: Revitalizing Existing Stores by
Increasing the Number of App Members
Number of Mr Max App Members[Current year target][Previous year actual]

1,500,000

1,120,000

1,500,000

1,600,000
Existing app members

New app members1,400,000
380,000

1,120,000

1,200,000
1,000,000

850,000

278,737

800,000
347,778

600,000

500,000

400,000
200,0000

260,000
100,000

158,188

102,901
Target2018/2

April 21, 2022

241,133

2019/2

2020/22021/2Mr Max Holdings Ltd.

2022/22023/211

2. Expand the Lineup of PB Products
Percentage of PB product sales to total sales: 14.4% (FYE Feb 2022 actual)→

20.0% (FYE Feb 2023 target)

Changes in Percentage of PB Product Sales toTotal Sales

Percentage of total sales

25.0%

20.0%

20.0%
15.0%

13.6%

14.1%

14.4%

FYE Feb 2020

FYE Feb 2021

FYE Feb 2022

10.0%
5.0%0.0%

April 21, 2022

Plan

FYE Feb 2023

Mr Max Holdings Ltd.

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3. Productivity Improvement: Improving Store Work Efficiency
Reduce day-to-day fluctuations in the quantity of delivered products to level the workload

Quantity of delivered products

Schematic Diagram of Fluctuations in the Quantity ofDelivered Products Before/After Reduction
35,000

Beforereduction

30,00025,00020,00015,000Afterreduction

10,0005,000

MonApril 21, 2022

TueWedMr Max Holdings Ltd.

ThuFriSat
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4. Investment to Strengthen Existing Stores(1) Renovation
Total investment of 500 million yen in
14 stores
Renovate
existingstores(2) System investment
Invest 1.2 billion yen in digitaltransformation (DX) and productivity
improvement, including upgrading
EC and apps

UpgradeEC andapps(3) Other investments
Include upgrades of existing facilities
and equipment to reduce power
consumption
April 21, 2022

Increase the value of existing stores and create
new customers

Mr Max Holdings Ltd.

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Sustainability Activities
We have identified seven material issues (materiality) that will contribute to the realization of a sustainable society.
Theme

What we want to be in 2030

Creating social
value throughproviding
products

Create value for our customers andthe global environment throughsustainable product development
and procurement and initiatives torealize a recycling-based society

Creating asustainablesupply chain

Work together with our customers
and business partners to contributeto realizing sustainable local
communities and a carbon-freesociety as a social infrastructurethat is vital to local communities

Establishing abusinessfoundation tosupport
sustainablegrowthEstablish a corporate culture ofcommitting to business
management and operations that are
fair to all stakeholders and a work
environment that is comfortable andprovides opportunities for selfrealization to anyone and thereby
realize sustainable growth that is aprerequisite for us to create greatersocial value to our customers andsociety.

Material issues(Materiality)

Related SDGs

Providing ecology andeconomy

Basic Sustainability Policy
Pursuing valuable low
prices throughproduct development
Providing value as an
infrastructure for local
communities

Optimizing the entire
supply chain

Improving complianceand corporate ethics
Contributing to careerdevelopment andgrowth of our humanresources
Pursuing a
comfortable work
environment andrespecting diversity

Based on our management
philosophy of “making our customers’
everyday lives richer, moreconvenient and more enjoyable,” we,
Mr Max Holdings, as an
infrastructure for local communities
will work together with ourstakeholders to realize a sustainable
society. To this end, we will actively
engage in fair business management
and operations to boost ourcorporate value.

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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
Forecast

Year 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%

Millions of yen

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

4,856

4,871

31,66832,300

100.3
102.0

27,181

27,300

100.4

4,487

5,000

111.4

Ordinary Profit
Net Profit Attributable to Parent CompanyShareholders[Key Management Indicators]

4,346

4,800

110.4

2,853

3,000105.1

Ratio of change in existing stores (%)

(6.1)

+2.2

Number of Store Openings

10

Number of Store Closures

015857

Number of Stores at Year-end

April 21, 2022

Mr Max Holdings Ltd.

Our stock listing wastransferred to the Prime
Market on April 4, 2022

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April 21, 2022

Mr Max Holdings Ltd.

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