Partial Correction of Financial Results for the Q1of Fiscal Year Ending July 31, 2023

As disclosed on December 26, 2022 in the (Correction) Partial Correction of Summary of
Non-Consolidated Financial Results for the Three Months Ended October 31, 2022 [Based onJapanese GAAP],The figures have been corrected. Corrections are underlined.

Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

-1-

Tochigi Factory
Start operation in March
2021（correction）Financial Results for the Q1 of Fiscal YearEnding July 31, 2023
Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

SILVER LIFE CO., LTD.
The Prime Market of the Tokyo Stock Exchange (9262)

Fiscal Year Ending July 2023
Q1 Performance Highlights

Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

Fiscal Year Ending July 2023 Q1 Performance YoY
Sales continue to grow, +12.4% YoY
Operating profit increased significantly by +144.3% YoY (including adjustment amount of 28 million yen for unused shareholder
benefits of the previous year)
Stabilization of the Tochigi Factory → Challenge to improve the in-house production rate → We were able to create a flow for
improving the operating rate and gross profit rate

FY2023 Q1Unit : million yen

Results

Vs. FY2022
Q1 results

FY2022 Q1

Sales
ratio

Plan
Progressrate

Results

FY2023 Plan

Sales
ratio

Plan

Sales
ratio

3,015

+12.4%

-

23.7%

2,683

-

12,700-Gross
profit898+44.5%

29.8%

21.1%

622

23.2%

4,270

33.6%

Operatingprofit245+144.3%

8.1%

34.8%

100

3.7%

700

5.5%

Ordinary
profit289+118.0%

9.6%

33.6%

132

5.0%

860

6.8%

Profit183+94.5%

6.1%

33.2%

94

3.5%

550

4.3%

Net sales

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-4-

Sales per Category

Franchise chains
2,178

Sales Unit : million yen
2,095
1,971

FY22 Q1

2,018

1,997

Vs. FY2022 Q1 Actual
FY22 Q2

FY22 Q3

FY22 Q4

10.5%

FY23 Q1

increased

Number of Stores
955

948

984

990

978

2

14

52

67

73

387

370

368

365

352

Sales：Steady, including temporary sales for COVID-19 patients
1000
Sales of existing stores vs.previous year
Magokoro Bento 106.6%
800
Haishokuno Fureai 120.1%
600

566

564

564

558

553

400
200
0

FY22 Q1

Takushoku Life

FY22 Q2

FY22 Q3

Haishokuno Fureai

FY22 Q4

FY23 Q1

Number of Stores ：978 StoresCompared to the end of the previous fiscal year - 12 stores
Struggling to acquire membership compared to the COVID-19
periodMagokoro Bento
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-5-

Sales per Category
Unit : million yen

335

339

328

Facilities
for theelderly

Vs. FY2022 Q1 Actual322

305
increased

5.5%

Frozen: slowly increasing
42.6% of sales within the department
Chilled: Slight decrease continues
Small pack revival measures failed(Sales decreased due to price cuts)
The division sales ratio is 57.4%

FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1

Unit : million yen

513

DirectSales/
Others514

Vs. FY2022 Q1 Actual

486

407

421

increased

26.4%

FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1

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Direct sales: trial and error
New marketing measures failed
68.8% of sales within the department
OEM : Slight increase with bottomingout
The sales ratio within the division
is 30.3%

Warehousing: Started sales activities
0.9% sales ratio within thedepartment
High profit contribution rate
-6-

Change Analysis of Sales
Steady performance in all divisions.
Propose a lot of sales promotion measures → Execute → Repeat failures, leaving only
good measures.
Unit : million yen
107

184

23
FC Loyalties,
etc.

3,015

16
Facilities for the
Elderly

Direct sales/ Others

2,683
FC Food Sales

YoY change+332

FY22 Q1

million yen
FY23 Q1

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-7-

Change Analysis of Gross Profit
Significant increase.
In addition to the increase in sales, the shift to in-house production of 30% of the outsourced products
from October has also had an impact.

Unit : million yen

Merchandise Material cost Labor costs
costSupplies
Utilities
Othersdue to decrease
expensechargeprofit increase
Decrease in profit due to increased production volume

Increase insales

YoY change+276

FY22 Q1

million yen
FY23 Q1

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-8-

Change Analysis of Ordinary Profit
Increase in gross profit will absorb various cost increases.
Logistics will also become more efficient from October (3 times a week delivery to FC stores → 2 times a week),
and the ratio of freight costs to sales amount will also be reduced.
Unit : million yen

40
265

11

-63

FC
Loyalties,
Outsourcing etc.
expenses

-51
Labor
Costs

-30
Fare
Costs

-29
-14

Depreciation
Supplies
expenseUtilities
charge30

289

Others132
Food Gross
ProfitYoY change+156

FY22 Q1

million yen
FY23 Q1

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-9-

Impact of switching to in-house manufacturing
From October 2022, nearly 30% of the chilled products that had been outsourced were
switched to in-house manufacturing.
①Increase efficiency by switching to in-house manufacturing
Substantial reduction in outsourced Commodity
cost.
Although the material cost and various
manufacturing costs increased due to in-housemanufacturing, there was a cost reduction effectof about 10% in the switching range.

Cost fluctuation due to in-house manufacturing②Increase in factory operation rate

Beforeswitching

Gradually rising, and some bottlenecks havebecome apparent due to the switching in
October, so we plan to add some equipment(about 100 million to 200 million, 6 to 9 months
until arrival)

Unit : million yen

Freight Labor costs
Increase
costs
increase
Decrease inoutsourced
commodity
purchases

Increasedmaterial costsin our own
factoryAfterswitching

Change in factory operation rate

Before switching

ALMOSTEQUAL TO30%

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After switching

ALMOSTEQUAL TO45%
- 10 -

FY2023 Financial Plan

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FY2023 Financial Plan
Unit : million yen

FY2023 PlanVs.
FY2022
Results

FY2022 Results

Vs.
FY2021Results

12,700+13.2%

11,215 +11.6%

4,270+38.2%

3,088 +13.5%

Operating
Profit700+24.7%

561-33.1%

Ordinary
Profit860+21.2%

709-27.1%

Profit550+36.9%

401-26.4%Net Sales
Gross
Profit・Sales Plan is stated on the Sales Plan per next page. ・Gross profit is expected to increase significantly due to the transfer ofchilled products to the company's own factory. However, fare costs, which were previously borne by the outsourced
manufacturing factory, are now included in the company's SG&A expenses. ・S.G.&A. expenses include an increase inadvertising expenses due to aggressive sales promotion measures, and depreciation of the Kazo Distribution Center.
Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 12 -

FY2023 Sales Plan by Category

Franchisechains8,950 million yen （ YoY +10.8%）

Estimated number of stores at the end of the fiscal year: around 1,040
stores(around 50 stores compared to the previous fiscal year)
Expect continued long-term growth with moderate store growth x
sales per store

1,470 million yen （ YoY +12.5%）

Facilities forthe elderly

Introducing new services in different price ranges“Fit Plan" for chilled products and "Otegaru Chef" for frozen products
Establish a sales structure with multiple low to mid-priced brands toensure that customers are not left out

2,280 million yen （ YoY +24.7%）

Direct Sales /OthersDirect sales business will promote new products and effective sales
promotion measures
Continue aggressive marketing in OEM and warehousing operations
Establish competitive advantage through total service of"manufacturing + storage + picking" by operating Kazo Distribution
CenterCopyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 13 -

The Market to which we belong

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External Environment (increasing population of late elderly)
Our main target, the late elderly,
will increase exponentially beyond 2025
Unit : ten thousand

Population trends and forecasts for the elderly (over 65 years old) and late elderly (over 75 years old)
2,417 2,446 2,387

2,500

2,180

Baby boomer
generation will
becomelate elderly

2,000

2,288 2,260 2,239 2,277

1,860 1,867
1,752

1,627
1,742

1,517

1,407

1,500

1,681
1,754

1,301

1,643

1,522

Population age 65-74
Population aged over 75

1,000

2,248

1,497

1,428

1,424

900

892

1,154

1,133

2060

2065

1,258

699

597
516
500

366

376

309

224

164

107

Forecast

0

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2018

2020

2025

2030

2035

2040

2045

2050

2055

Source: Government materials
Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 15 -

External Environment (a business that does not rely on care insurance)
Changes in the Working Generation and the Elderly Population
Unit : ten thousand

6,000

Population over 65

3,782

3,347

4,000

3,704

1,826

2,000

8.86

0

1975

-2,000

1995

2015

The working generation (15 to 64 years old) is
decreasing, and the elderly population isincreasing

2035

2055

Moving toward society where 1.3 people of theworking generation will support 1 person aged
over 65.Social security deposit benefits per person
will decrease-4,000-6,000The increase of expenditure toward COVID-19
measures in 2020 makes it even more difficult tosecure financial resources for care and welfare-8,000

Forecast-10,000

Population under 64

Source: Government materials
Unit : cases
120

108 111 105 111

Bankruptcies in Elderly Welfare / Care Businesses

100

76

80

60

46
35

40
20

15

54
38
27

23

54

33

19

0
2005

2007

2009

2011

Source: local Government materials

2013

2015

2017

2019

(90% of sales rely on care insurance)
care business is destined to become difficult in the
future.

In this upcoming era, only businesses such as
food distribution services for the elderly, which
can be managed without relying on insurance,
can support the lives of the rapidly increasingelderly population

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- 16 -

Our Company Features
and Advantages

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Our Advantage : Franchise chains Network➢ Low-cost opening (non-visit-type stores with no restriction to location / no large kitchen equipment required)➢ The simple process of preparing cooked ingredients and delivering (the business can be started alone)➢ Stable supply of high-quality cooked ingredients from FC headquarters (no cooking experience required)This helped the number of stores to increasesignificantly in a short period of time

Unit : Stores
1,100

September 2021
Launch of our franchise
chain “Takushoku Life”

1,000

67
900
800

February 2014

700

Launch of our franchise chain“Haishokuno Fureai”

600

April 2009500

Launched our first franchise chain“Magokoro Bento” in Ota-ku, Tokyo

200

3

100
0

9

November 2007
Launched our first directly
managed store in Setagayaku, Tokyo

1

1
14

85

FY2008FY2009FY2010

338

2
14

85

138

196

245

Food Distribution Service
No. 1 Number of Stores *74169
FY2011

365

299

400
300

381

238

FY2012323

FY2013

361

352

356

367

381

FY2014FY2015FY2016FY2017FY2018430

FY2019496

FY2020553

558

FY2021

FY2022* Our company investigation
Magokoro Bento

Haishokuno Fureai

Directly Managed Store

Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

Takushoku Life- 18 -

Our Advantage: Enabling high-mix random production
Our factory 3 days menu

*this is an image➢ Manufacturing line required in a general foodfactory (dedicated line for a single productgroup)
A meat buns dedicated factory (1 million meat buns produced
daily flow from a buns dedicated machine to a conveyor.
Although there are meat buns and bun with bean-jam filling
differences, they are "Principally the same product group").

➢ Manufacturing line required for food distribution
service (line that can handle random production ofother varieties)
Since meals are distributed daily, the same product group cannot beprovided every day. 12 items made today, 12 items made tomorrow, 12
items made on the 3rd day, all should be different.

Only few factories have multi-variety random production lines which are thought to beinefficient (Usually cannot be maintained without a certain sales scale like our company)↓
As a result: Managing low-cost manufacturing that generates profit
despite the large variety of products
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- 19 -

Our Advantage : Abundant menu with low prices➢ Tenderness, seasoning, and nutritional balance suitable for the elderly to eat➢ Rich menu variety (more than 1,000 items) you will never get tired of for your everyday meals➢ Delivered to franchise chain stores refrigerated (chilled) to improve texture (regular meals)
Regular meal

Komachi (smaller portion)➢ Mainly Japanese food bento for the➢ A bento with fewer calories, less salt,

general elderly. Consideration to
nutritional balance and ease of eat

and a smaller portion of a regular mealfor elderly people with smaller appetites

Puréed meal
➢ A puréed meal bento which looks thesame, for elderly people who havedifficulty chewing and swallowing

Price：
450yen+tax～

Price：
320yen+tax～

Price：
540yen+tax～（sides dish only）（sides dish + rice）（sides dish only）

Calorie-adjusted meal

Protein-adjusted meal

➢ A bento for people who need to calculate➢ A bento for people who need to calculate

calories and salt intake. Manufactured to
be almost 240 kcal no matter what you
eat

protein intake, such as people who go toa dialysis clinic regularly. Protein is 10g orless per meal

Price：
600yen+tax～

Price：
700yen+tax～（sides dish only）（sides dish only）

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- 20 -

Our Advantage➢ A p r o d u cti on l i n e t h a t c a n m a nuf a cture r e f r igera ted ( c hi lle d)

Production Systemi ngr e dients s pe c i alizing i n f ood di s t ribution➢ Fl e xi b l e p r o d u cti on s ys t e m c a p a bl e o f m ul t i -va riet y m ul t i -production➢ M e rit of s c a l e a nd r e a s ona ble pr i c e l i s ting d u e t o ma s s p r o d ucti on

Franchise Chain
Network➢ "No. 1” number of stores in the industry of our food distribution franchise chain
network for the elderly (990 stores total as of the end of July 2022)➢ A store network that covers the last mile to your home

Our biggest advantage is the consistent system we have from manufacturing to delivery
Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 21 -

Our Advantage：Consistent System
GeneralFoodDistribution
RelatedCompanies

Manufacturer
Development
開発

Manufacturing
製造

Company
Product development
Manufacturing Factory,by Nutritionist
Affiliated Factory

Logistics
Companies

Logistics
物流

Food Distributor Business Area
販売
Sales

Picking of freezing andFranchise chains,
Chilled Distribution Facilities for the elderly,
CenterDirect Sales /Others

配達
Delivery

Delivery to customers
from our nationwide
Franchise chain store
network

Feedback from franchise chain stores and customers

Purposeand
Features・Cost advantage due to mass production
・Product development based on customer
feedback (franchise chain stores)
・Ensure the "Safety and Security"

・Efficiency of storage anddelivery
・OEM sales expansion

Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

Food distribution service for the elderly- 22 -

Company Overview

Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

Our Management Philosophy and Mission【Management Philosophy】
We will create a society where everyone can grow old with peace of mind fromthe perspective of food.

【Our Mission】
We prepare bento’s at reasonable prices and deliver to your home every day sothat elderly people living alone or needing care who have difficulty
cooking or going out to shop can eat without any trouble.
Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 24 -

Company Overview
Company NameSILVER LIFE Co., Ltd.

Representative

President, CEO : Takahisa Shimizu

Established

October 2007

Capital Stock

725 million yen (as of July 31, 2022)

Address

Highness Lofty Level 2, 4-32-4, Nishishinjuku, Shinjuku-ku, Tokyo, 160-0023,
Japan・Franchise management of food delivery service for the elderly(Service names: “Magokoro Bento”, “Haishokuno Fureai”, “Takushoku Life”)

Businesses

・Food ingredient sales to senior-care facilities(Service names: “Magokoro Shokuzai Service”, “Kodawari Chef”)
・Own brand and OEM sales of frozen bento meals(Service name: “Magokoro Care Shoku”)

Websitehttps://www.silver-life.co.jp/

Employees

426 (Full-time: 173 / Part-time: 253）As of the end of July 2022

Factory・Gunma Factory:1678-1, Nakano, Ora-machi, Ora-gun, Gunma, 370-0603, Japan・Tochigi Factory:576-6, Hakaricho, Ashikaga-shi, Tochigi, 326-0327, Japan

Distribution Center・Kazo Distribution Center:376, Sakae, Kazo-shi, Saitama, 349-0213, Japan
Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 25 -

Our History
Kazo Distribution Center begins operations

Change to TSE Prime Market

Apr. 2022

Mar. 2022

Launch of our third franchise
Sep. 2021
chain “Takushoku Life”
Tochigi Factory begins operations
Listing shifted to the TSE,First Section

Acquired FSSC22000 certification
for Gunma FactoryJan. 2020

Mar. 2021

Jul. 2020

Accomplished a total of 700 "Magokoro

May. 2019 Bento" & “Haishokuno Fureai” stores
Listed on TSE Mothers

Oct. 2017

Oct. 2017

Sep. 2016
Enfranchisement of all
directly managed stores
Launch of our second franchise chain“Haishokuno Fureai”

Purchase of the Company factory site in
Ora-machi, Ora-gun, Gunma

Oct. 2014

May. 2013
Jun. 2012

Sep. 2010
Apr. 2009
Nov. 2007
Oct. 2007

Apr. 2014

Feb. 2014

Feb. 2013

Feb. 2016

Distribution center opened to Chiyoda-machi,
Ora-gun, Gunma

Accomplished a total of 500 "Magokoro
Bento" & “Haishokuno Fureai” stores

Acquired ISO9001 certification for Gunma Factory

Launch of OEM sales

Accomplished 300 "Magokoro Bento" stores

Launch of our food ingredient delivery service “Magokoro Shokuzai Service” tosenior-care facilities

Accomplished 100 "Magokoro Bento" stores

Launched our first franchise chain “Magokoro Bento”

Opened the 1st directly managed store in Setagaya-ku, Tokyo

Company established

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- 26 -

Business Model
Schematics of our Business Operation
FY2022 Sales composition

Raw materials providers / Out-sourcing factories
Foods,
Cooked foods

Loyalties,
ロイヤリティ等
etc.

Payment

Our
Factory

Our
Company

Food 食材販売売上高& Ingredients SalesManagement
Deliveryfees

Cooked foods

FrozenBento
meals

Payment

Franchise chain stores

558 storesnationwide*

365 storesnationwide*

Bento
Payment
General Customer

OEM supplier

Payment
loyalties,
Etc.

General Customer

67 stores
nationwide*

Food
ingredientpayment
Food
Ingredient,
etc.

Foods
Delivery

Facilities for the
Elderly, etc.

Mainly Wholesale Ingredients
A continuous profit system in which ourfood net sales increases proportionally to
the growth in net sales (number of meals)of franchise chain stores.
(Food net sales include sales for facilities
for the elderly, Direct Sales and OEM.

*As of the end of July 2022

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- 27 -

Handling of this Document◼ The statements in this document regarding future-prospects are based on current
information and may fluctuate due to economic trends, market environment, our relatedindustry trends, and other internal and external factors. Therefore, please have in mind
that there are risks and uncertainties that the actual results may differ from thosedescribed in this document regarding future-prospects.
◼ This document does not constitute or solicit an application for acquisition of any
securities, an application for sale, or an application for purchase (hereinafter referred toas “solicitation”) and is not intended to perform any solicitation activities and may not be
the basis of any contracts or obligations.
◼ Although we take the utmost care for the information in this document, there may beerrors in the posted information, and you may experience damage from data falsification
or data downloaded by a third party, but we do not take any responsibility for any
reason.

Copyright©2022 SILVER LIFE CO., LTD. All Rights Reserved.

- 28 -