Skylark Holdings Co., Ltd.

Last update: FY2024 Q2

◆Total number of Restaurants: 2,964(as of end-June 2024)of whichand

98.5% stores are directly managed
80 are international stores◆ Market Cap: approx.¥487Bn (as of end-June 2024)
FY2023 Results◼
◼
◼

Total Revenue:
Operating Profit:
Net Income:¥354.8Bn¥11.7Bn¥4.8Bn2

U.S.

Total number of group storesas of end-June 2024

1Malaysia
Taiwan42,96475

Hokkaido area

45

Shin-Etsu area99

Hokuriku area

50

Okinawa area

11Tohoku area

112

Chugoku area95Kyushu area

126

Tokyo metropolitanarea
Shikoku area Kansai area

51315

Tokai area

280

1,700

Central Kitchens3

Our Business Portfolio
DiningoutHome Dining /Home Cooking

DeliveryTake OutECBusinessRetailSales4

Meeting Customer Needs withA Diverse Portfolio of Brands

High-priced

FamilyDiningCasualDiningLow-priced5

Rationalization by newmanagement team(2008-2012)

Building the foundations
for sustainable growth(2012-2019)

COVID-19 pandemic(2020-2022)

Closed underperforming

Implementation of data-

Sales significantly decline fromrestaurants

driven pricing andFeb 2020 with COVID-19― Footprint adjusted

marketing strategies

Specialty brands perform wellfrom 3,329 stores in

Refined brand prototypes

Sales decline, but profit secured

2007 to 3,000 stores― Investment inin 2011
Revitalized core brands

Improved margins
significantly
Invested in supply chain

with gov’t subsidy
With DX, store productivity is

remodeling andconversions

significantly improved (DMB,Improved accuracy of site

floor service robots)

selection capabilities

Decision to close unprofitable

Re-listed in the First

stores (200 stores in 2020, 100stores in 2022)

Section of the Tokyo Stock

Price hikes in July & Oct 2022

Exchange in Oct 2014
OP (Million Yen)
35,000Trends in OP and OP Margin

Post-COVID(2023 onwards)
Mask mandate lifted in March2023; COVID recategorized as
Class-V disease in May (end ofpandemic)
Cost pressures continue,
including yen depreciation; pricehike in Apr 2024
Traffic increase from adding
lead-signs and improving
parking signs
Midterm business plan with2027 as the target year

released, along with accelerationOP%of store openings
8.0%

25,0006.0%

15,000

4.0%
2.0%

5,000
-5,000-15,000-25,000

10.0%

0.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
OPOP%

-2.0%
-4.0%
-6.0%
-8.0%

6

Financial Data
Consolidated Sales

Operating Profit /Operating Profit Margin

Net Income /Net Income Margin(Million Yen)

7

Robust Business Model8

Our Competitive Advantage■Vertically Integrated Supply Chain
・Bulk procurement of ingredients for all brands
・10 central kitchens cover all 3,000 stores・A cross-brand logistics network makes efficient distribution possible
・High quality food offered at reasonable prices

From procurement to home delivery, all is in-house⇒ A strong cost competitiveness within the industry■Same operating system and manuals
for all 3,000 stores■One HR system covers the entire group
9Vertically Integrated Platform
Procurement

Streamlined
procurement
Centralized ingredientsourcing for all concepts

Manufacturing

Logistics

Cooking/Serving

DeliveryCentral kitchens

Robustdistribution
network

Efficient
restaurant
operations

Expansive
delivery network

10 facilities covering
about 3,000 stores ofthe Group

Shared distribution
network for all concepts

Providing high-quality
and reasonably priced
dishes in a comfortablespace

One of the restaurant
industry's largest fleet
with approximately 3,800delivery vehicles✓ Quick response to✓ Easy environment✓ Quick and accurate

Flexibility (speed)✓ Flexibly decide on who ✓ Systems enabling
to procure fromspeedy development ofmenuschanges in demand ineach area

about 3,000 stores✓ Pursuit of economies ofscale in ingredient
processing✓ Uniform kitchen

response to consumer
demandlayouts for all brands

Efficiency (economies of scale)✓ Mass orders forto cook

✓ Cost efficiency✓ Simplified store
operations✓ Sustained high gross✓ Reduced operation costs byprofit margin by
reducing inventories
and waste losses

improving the cooking
speed at stores✓ Response to diverse

needs by making bulk
orders for use inmultiple brands

Safety (quality and freshness)✓ Controlled quality ofingredients✓ Uniform quality and cooking ✓ Maintenance of
methods for all stores✓ Pursuit of food safety*1： Number of delivery bikes and light vehicles owned. As of March 31, 2021

quality and freshness
through delivering
based on orders fromstores✓ Controlled uniform
quality of dishes✓ Maintain high quality
through in-housedelivery staff10••••Central Kitchens

Cutting of vegetables and meat
Making in-house sauces for all brands
Chilled/frozen goods distributed in a timely manner
Room temperature goods are delivered 1-6 times a week

■10 central kitchens across Japan■Primary processing conducted at our central kitchens to lessen
in-store kitchen work
⇒ high quality food consistently served to customers

Sendai MDC

Skylark Group’s

10 central kitchensaround Japan

MaebashiHigashiMatsuyama
MDC

Fujioka
GifuMDC

KitaKyushu
MDC

Nishinomiya
MDCAkishima
MDC

Shisui MDC
Sagamihara
MDC

delivers safe and quality foods
11New Store Openings◼ Accelerate new store openings from2024 and plan to open approximately
300 stores over the next three years◼ 27 stores opened in 2023, all with highsales (20 in Japan, 7 overseas)

Store opening policy from 2024
1. Commercially busy districts
2. In front of train stations of private
railway in large cities
3. In front of train stations in regionalcities
4. Multi-brand store openings in midsize regional cities

Store locations in regional cities with a commercial population of around
250,000 (proposed)
Five more stores can be opened by revising internal store opening requirements (2 stores → 7 stores)

BeforeAfter12Brand Conversions: Improve Profitability
Strength of having a wide portfolio of brands in many categories
Significantly improve sales of unprofitable stores and improve profitability of our total
portfolio of stores■Resolve own-brand cannibalization and create new demands■Convert to specialty brands which become customer destinations■Planning 70-80 conversions for FY2024 and a sales impact of approx. 1.7 bn yen■Implemented 41 conversions for FY2023; sales impact was 150.2%

18conversions
Avg＋69.2%

9conversionsAvg＋111.9%

10conversions
Avg＋66.1%※Conversion impact is calculated from annual sales before
conversion and annual sales forecast (excluding reopening spike insales)※Control stores ⇒ Stores opened by June 2018 in respective brands※Sales ⇒ EI sales only. Sales is vs 2019※Pre ⇒ 90days before closure※Post ⇒ 30days after reopening

13Brand Conversions/Lead Signs/IN-Signs/Remodels
Add lead signs/Change IN-signs

Change of IN-signs◼ Install lead sign: Sales impact in 2024 approximately
0.9 bn yen→ Approximately 500 stores to be given lead signs◼ Change parking IN sign: Sales impact in 2024
approximately 0.7 bn yen→ Approximately 500 stores to change to a morevisible parking sign
*Of the 1,000 stores scheduled to change their IN-signs,
about 500 of them have already been done within FY2023

Clearly indicate the location of the parking
lot entrance

Store remodeling◼ Plan to remodel 70-80 stores in 2024 and aim for sales impact of approximately 0.3 bn yen◼ The sales impact of stores remodeled in 2023 was +4.6%*Sales effect shown is a full-year effect

14Menu Initiatives for Family Dining Brands
Grand menu renewal towards gaining customer visits for a wide range ofoccasions now completed
More variety of small dishes/ shareable menus

Menus with choices; more
set menus with great value• Want to customize menu in a
• Want to eat this and that
• Want to share with family/group specific way⇒small menu UPH sales +27%
⇒average ticket +4yen

Volume category:new (Gusto);enhanced (Bamiyan)• Want to eat to the full butneeds to be value-for-money⇒Set menu UPH sales became 1.8x

SelectLunch⇒small menu UPH sales +24%
⇒purchases by the main target,
40s-60s women, increased⇒Add-on to lunch average ticket

15Menu Initiatives for Casual Dining Brands
Will continue to offer menus which give experiential value to customers andmenus for special events.

Kyushu gourmet fair: Had customers
enjoy a virtual gourmet trip

Chestnut cake finished in front of thecustomer; premium drink bar
offered (preceding test stores)⇒+18% sales vs control stores

Christmas Course Menu
⇒High add-on to Christmas
period average ticket• Recorded
highest sales
as a payable
hotpot soup16Stressless Customer JourneyEntering the store
Cleaning the table(rest
Timely cleaning of tables madepossible by coordinating with theaura
digital menu book.
nt )Settling the billbill

Ordering foodCustomers are ushered to tables withthe table ushering system. Also linked
to our reservation system.
Ordering through the Digital Menu Book.
Additional ordering made easy; productrecommendations also possible.

Serving foodNo waiting to settle the bill,with payment either at thetable or through selfcheckout counters

Food is served both by cat-shaped robot
and staff.

17

(1) Introduction of floor service robots
3,004 catering robots already installed(2,041 stores, as of October 31, 2023)

Running approx. 3.98 km per store
Effects of Introduction at Gusto

90% of customers were “Very satisfied" or “Satisfied"Lunch peak turnover rate +2
Reduction in cleanup time -35%
Footsteps reduced -42%
Effects of Introduction at Bamiyan
Reduction in clean-up time -40%
Footsteps reduced -49%

18

(2) Use of digital menu books• In use at more than 2,500 stores.
• Recommendation and survey collection
functions also added.
• Developed an ordering tablet dedicated toordering by menu number.
(Introduced to Hachiro Soba and TohSai)• Real-time monitoring of all tablets

Floor service robot coordination function
has also been developed.
Arrival notice of the robot!

Your order will arrive shortly.
Please take the dishes on the blue
glowing shelf.

19

(3) Renewal of all POS cash registers
Installation of new POS cash
registers at all stores completed◆Processing has much less conditions◆Speedier actions for various point cards◆Improved barcode/QR code reading accuracy

Customer checkout time reduced
Easier training (new & non-Japanese staff)

Working hours per day▲0.5 hours

Annual conversion

Approx. 540 mn yen

20

(4) More stores to have cashless self-checkout counters772 stores
Utilization rate 30% or more
Productivity 44 min/day reduction21

(5) Table Settlement of Bills
QR code payment with PayPay available at table orderingterminals from August 9, 2023

• Installed in 2,400 stores• Utilization rate is about 10%.
• Reduced labor byapproximately 10 min per day

Started notifications of tables thathave settled bills.
⇨ Employees can clear tables faster,which reduces customer wait time

22Maximize Weekend Sales: Service Improvement through DX■ Improving service through DX※※per 100,000 customers

Number of complaints

15105

DX
promotion

02022

2023

Less Wait Time
▶ Service Improvement

Promoting DX
Standard Cashiers

Self-serve Cashiers
100Serviceimprovement

Staff Cashier Time per Party (Seconds)

80
50

90

Before DX

After DX

※Before: ～Oct 2023 After: Nov 2023～

Finding tables to clear

Tables to be cleared
shown on staff tablets

40

Speed in Finding Table to be Cleared (seconds)

33
23

200
Before DX※Before: ～Oct 2023 After: Nov 2023～

After DX

23

Overseas Expansion
Will accelerate overseas store openings;
100 stores to be opened between 2025 and 2027
【Chicago, IL, USA】
First store achieved record monthly sales in January 2024
Planning to open 2 new stores in 2024

2024/01

2023/102023/072023/01

2022/102022/072022/04

2022/01

100
90
100
90
80
80
70
70
60
60
50
50
40
40
30
30
20
201010【Malaysia】

Achieved record sales in December 2023
Planning to open 2 new stores in 2024

Sales

2020/08
2020/102020/122021/022021/04
2021/06
2021/08
2021/102021/122022/022022/04
2022/06
2022/082022/102022/122023/022023/04
2023/06
2023/082023/102023/12

1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024F
2025F
2026F

Stores2021/10Stores

Sales

165%
YoY

Sales

2023/04【Taiwan】
Sales recovered steadily after the COVID-19 pandemic
Opened 5 new stores in 2023
Opening about 10 stores every year from 202424

Sustainable Management
We are working to reduce environmental impact by 50% by 2030.
All reductions are proceeding as planned.

Decarbonization

De-Plasticization

Major
initiatives

Energy conservation
activities
Shift to renewable energy

Reduction in use ofdisposable plastics

Expectedlanding in2023

vs. 2018

Target for2030(Index)vs. 2020

Food Loss
Reduction
Reduction of food loss at
central kitchens/stores
Reduction of leftover foodvs. 2018▲20.0％▲10.０％▲30.0％

vs. 2018

vs. 2020

vs. 2018▲50.4％※▲50.0％▲50.0％(CO2 emissions by ourcompany)(Amount of disposable
plastic used)(Amount of food waste)*The reduction target is set at ▲50.4% in compliance with the SBT standard, which isconsistent with the standards required by the Paris Agreement.

25

ESG External Assessments
Major ESG Scores are increasing year by year.
ESG Score

2021

2022

2023

－B

Ａ-－－

Ａ-－－

Ｂ

②DJSI

1134

47

③FTSE

3.3

4.1

4.7

④MSCI

BB

BBB

A

①CDP

ClimatechangeProtection ofwater
resources
Forestconservation

26

ESG Initiatives in 2024
We will accelerate our decarbonization efforts to achieve a 50.4%
reduction from the 2018 level under Scope1 + 2 by 2030.

Main plans for decarbonization in 2024
• Establishment of annual CO2 emission targets for 2024-2030• Linking annual CO2 emission targets with executive compensation• Continued implementation of energy conservation and powersaving campaigns• Introduction of electric vehicles and electric trucks• Increase in number of solar power generation facilities 2 ⇒ 100• Acquisition of SBT Certification by May 2025
and more••

Scope1+2・・・The amount of CO2 emitted by our Group through the use of gas, gasoline,
electricity, etc.
SBT Certification・・・International certification that shows greenhouse gas emission
reduction targets consistent with the standards required by the Paris Agreement27

ESG Initiatives in 2023
Decarbonization

Opened a store with virtuallyzero CO2 emissions

Introduced solar power
generation at our MDC

Human rights

Signed United Nations
Global Compact

Reduction of food loss

De-plasticization

Responsible procurement

1.3 million Mottainai Packs
used annually

2 million yen donated fromsales of wooden cutlery

Acquired ISO20400(sustainable procurement)28

Growth Targets for 2024 and Beyond
2024

2025-2027

30

M&A
M&A

M&A
3-5 cases by 2027

2520

New store
15
新規出店openingsJapan: 30-35 stores
Overseas: 10-15 storesJapan: About 300 stores
Overseas: About 100 stores

ATP: 1%
Traffic: 6%

ATP: CAGR 2-3%
Traffic: CAGR 1%

10Growth of5
既存店成長existing stores
0Keypillars

DX

Human Capital

ESG
29

Revised Feb 2024

Roadmap of GrowthSecond Phase2023-2024

Third Phase2025-TimelineFirst Phase2021-2022

ExternalEnvironment

COVID-19
Pandemic

KeyPillars

１

Promotion of Digital Transformation (DX)２

Enriching Human Capital (Hiring/training/better engagement)

Post-COVID-19 → Change in lifestyles
Inflationary environment:
Rising raw materials, energy, and labor costs

Turbulent businessenvironment

Promotion of ESG (Environmental Initiatives, Social Contribution,

３Strengthening
Roadmapof Governance)
GrowthTopics

Profit structure reform

Refine store portfolio

RapidResponse
Customer support/Expansion of store openings →environmental to postSales growth
adaptation to COVID-19
Expansionofnext-generation
models (retail sales/issues
COVID-19
online sales/overseas) and M&A

Strategy ■Control cash outflow• Closure ofunprofitable stores• Cost reduction, etc.
■DX promotion →■Growth of existing stores• Reform profit structure and maximize weekend sales• Increase in traffic and ATP through strategic menu
promotion and pricing strategy• Remodeling, brand conversion, expansion of lead signs

Expandbusiness size

Evolution andexpansion ofstrategies andbusinesses
implemented in thesecond phase

Productivity improvement■New store openings■M&A’s■Securing sales• Development of new store locations• Expansion ofand acceleration of store openings
Expansion of businessdelivery/take• Full-scale development of overseas
scale through M&A
out sales
store openings• Pricing strategy,etc.
■Expansion of EC/retail businesses

30Although Skylark Co., Ltd ( “the Company”) has assumed the accuracy and completeness of
all information available to it in preparing this presentation, the Company makes norepresentation as to its actual accuracy or completeness. The information in this presentation
is subject to change without prior notice. Neither this presentation nor any of its contents
may be disclosed or used by any other party for any other purpose without the prior writtenconsent of the Company.
Statements contained herein that relate to the future operating performance of the Company
are forward-looking statements. Forward-looking statements may include – but are notlimited to – words such as "aim," "anticipate," "believe," "endeavor," "estimate," "expect,""intend," "may," "plan," "probability," "project," "risk," "seek," "should," "strive," "target” andsimilar words that describe future operating activities, business performance, events orconditions. Forward-looking statements are based on judgments made by the Company’smanagement on the basis of information that is currently available to it and are subject tosignificant assumptions. As such, these forward-looking statements are subject to variousrisks and uncertainties and actual business results may vary substantially from the forecasts
expressed or implied in forward-looking statements. Consequently, you are cautioned not toplace undue reliance on forward-looking statements. The Company disclaims any obligation
to revise forward-looking statements in light of new information, future events or otherfindings.

This document has been translated from the Japanese original for reference purposes only. In
the event of any discrepancy between this translated document and the Japanese original,
the original shall prevail.

31