Appendix〜Towards completion of "Sato Pyramid"〜
Mid-term management plan２

About "Sato Restaurant Systems" １０

Features

１３

Strength

１６

About our business categories ２７Corporate Profile

４７

Mid-term management plan
〜Towards completion of "Sato Pyramid"〜2

Management	
  policy

SRS (Sato Restaurant Systems) aims to be therestaurant that brings the highest customer
satisfaction
Looking beyond the pursuit of sales and profit
Enriching people's lives
Improving the work environment
Responding to social and economic needs
Becoming an integral part of society

Mid-term management vision
prosper over
100 years tocomeSocial	  infrastructure

essential
3

Towards	
  comple:on	  of	  "Sato	  Pyramid"Mid-­‐term	
  management	
  plan/policy
SRS aims to be an essential social infrastructure andprosper over 100 years to come.
VisionSRS aims to be a respected industry leader by providing Japanesecuisine to people around the world.

overseas

more rapid restaurant
development

increasing
profitability

Taiwan, Indonesia andThailandbusiness expansion
turning to positive figure

continuous restaurant
development

increasing
profitability
restaurant
development withlower investment

enhanced	
  integra:on	
  	
  
with	
  Chojiro

4Towards	
  comple:on	  of	  "Sato	  Pyramid"

What isSato Pyramid
？？？

5

SRS	
  group	  restaurants	
  composi:on	
  (current)<	
  Diamond	
  shape	  >highcurrent

diamond	
  
shape

price
low

number	
  of	
  restaurants

6

SRS	
  group	  restaurants	
  composi:on:	
  Near-­‐future	
  shape<	
  Diamond	
  shape	
  to	
  pyramid	
  shape	  >Evolu6on	
  phase	
  1

highNear-­‐future	
  shapecurrent

diamond	
  
shape

price

broader-­‐based	
  pyramid	
  shapepyramid	
  shapenumber	  of	
  restaurants

fast-­‐casualfast-­‐casuallow	
  price	
  zone	  fast-­‐casualmore	
  restaurants	
  	
  newly	
  opened7

Sato	  Pyramid

Near-­‐future	
  shape8

Further	  broader-­‐based	
  Sato	
  Pyramid	
  low	
  price	
  zone	  fast-­‐casualfast-­‐casualmore	
  restaurants	
  newly	
  opened	  Near-­‐future	
  
shape

Evolu6on	
  phase	
  2
Evolved	
  shapeno	
  change	
  in	
  price	
  zoneSato	
  Pyramid

fast-­‐casualbroader-­‐based	
  pyramid	
  shapefurthermore	
  restaurants	
  newly	
  openedbroader-­‐based	
  pyramid	
  
9
shape

About "Sato Restaurant Systems"

10Succeeded	
  in	
  integra:ng	
  Japanese	
  food	  with	
  chain	
  restaurant	
  management
Succeeded１

once said difficult...

accumula:onChain style Japaneserestaurants
Succeeded

２

55 years in businesstechniques

popularization

developm
ent

Familiar Japanesefood

４acquisi:on

evolu:onTraditional JapanesecuisineMass	
  merchandising	  system

Mass merchandisingsystemPromo:ng

integra:onJapanese	  foodmass stores operation

Realized

３

Western foodcategory

safe

aﬀordable	
  	
  
price

high	
  	
  
qualitystable	  supplyA mechanism in which, by designing andcontrolling whole range of process of products
flow from raw material to eventual fullconsumption, it becomes possible to purchasesafer materials with more cost merit, thereby
providing customers with various dishes ataffordable prices.

laborsaving
active promotion

Mechanization

Japanese	  foodtable restaurant

more stable quality

more profitability (up to
the limit)
cooking professional
is NOT required

We always aim for the lowest price zone.
11External	
  environment	
  &	
  Business	
  reform

Consump6on	
  tax	  	
  rate	
  rose	
  to	
  8%

1st	
  restaurant	
  in	
  	
  
Indonesia	
  opened

1st	
  restaurant	
  in	
  	
  
Thailand	
  opened
1st	
  Nabe	  Sato	  restaurant	
  in	
  Taiwan	  	
  opened

Jun.

Feb.

Apr.

Jul.
Sato-­‐Shabu	
  premium	  	
  course	  startedTwo	
  types	  of	
  soup	
  in	
  	
  
one	
  pot	
  adopted
Microwave	
  rice	  	
  cooker	  adopted

Miso-­‐soup	  dispenser	  	
  adoptedSoup	
  stock	  dispenser	  	
  adoptedPOS/OES	
  updatediPad	
  adopted
1	
  way	
  opera6on	
  	
  adoptedIn-­‐store	
  PC	
  adopted

Store	
  support	
  system	  	
  adoptedTOS	
  en6rely	
  adopted

Logis6cs	
  integra6on	
  	
  
with	
  Foodsnet	
  Corp.

Foodsnet	
  Corp.	
  	
  became	  a	
  subsidiary

Jul.

1st	
  Katsuya	  	
  restaurant	
  opened

1st	
  Santen	  	
  restaurant	
  opened

1st	
  restaurant	
  in	
  	
  
Taiwan	  opened

Commodi6es	  	
  Center	  disposed

Sep.

Int.	
  env.

Business	
  reform	  	
  startednon-­‐boiling	
  noodle	  	
  cookerSato-­‐Shabu	
  debut

Mobile	  ClubKids	
  Club	
  created

Plas6c	  chops6cks	
  	
  adoptedBusiness	
  reform

Aug.

Sep.
Capital	  increase

Mar.
Jul.

Jul.
HQ.	
  relocated

Oct.
Jun.

Abe	
  Cabinet	
  	
  establishedGreat	
  East	  	
  Japan	  Earthquake

Lehman's	
  collapseExt.	
  env.

Sep.
Mar.

Apr.
Oct.

Jan.

Oct.
Nov.
Aug.
Nov.

Mar.
Oct.

Apr.
Dec.
Mar.
Sep.

FY2014FY2013
FY2012FY2011FY2010FY2009FY200812

Features13

Largest	
  number	
  of	
  restaurants	
  in	  Japanese	
  food	  family	
  restaurants
Largest number of restaurants inJapanese food family restaurants

１

199 restaurants

Group total: 342 restaurants (as of Sep. 30, 2015)

No.1 in the trade

Sato（199）Sushi-Han（14） Santen（17） Katsuya (direct)（15）Katsuya (FC)（14）
Chojiro(52) Miyakobito (direct)（1）Miyakobito (FC)（20）Chujiro（3）Overseas（7）specialized in Japanese food２

Major 5categories

３

M&A

４

Overseasdevelopment

５

Kitchencapabilities

６

Purchase &development
capabilities

Japanese food family
restaurant

mainly Sushi & Nabe(pan)

Tendon &Tenpuragourmet Sushigo-round

Katsudon &Tonkatsu (porkcutlet)gourmet Sushi-go-round "Nigiri Chojiro"
FOODSNET Corporation became a subsidiary.(Jul., 2013)

TaiwanIndonesia

Joint ventures have been established withlarge local companies.
Thailand

Seeking streamlined kitchen operations
By carrying out purchase & development activities on our own
accounts worldwide, a mechanism has been built up in which safer
and carefully selected foodstuff can be obtained stably.

We always
aim for thelowest price
zone.
14

Year-­‐on-­‐year	  comparison	
  of	
  sales	
  at	
  exis:ng	
  Washoku	
  Sato	  restaurants,and	
  Sato-­‐Shabu5	
  million	
  orders

110.0%
YOY comparison of sales at existing restaurants
left axis

104.3%

105.0%

102.9%

102.6%
100.3%

Lehman's
collapse

95.0%

94.6%
Sato-Shabu Premium
Debut

92.4%

Sato-Shabu
Debut

90.0%

e
ts	
  ke
n
u
er	
  co
Ord ry	  year
eve

85.0%

c
p	
  in

%
n	
  10
a
h
t
ore	
  
m
	
  
y
ing	
  b
reas

	
  

99.8%

Sato-­‐Shabu	
  order	
  counts

Sato-Shabu
exceeded 2.5 million
orders per year
2,889,259	
  orders100.0%

80.0%
FY03/2009

FY03/2010

FY03/2011

FY03/2012

FY03/2013

FY03/2014

FY03/201515

Strength16

Strength:	
  Brand	
  power<	
  Sato	  is	
  overwhelmingly	
  famous	
  in	
  Kansai	  area	  >Brand	
  power17

Strength:	
  Restaurant	
  development	
  capabili:es<	
  Specializing	
  in	
  Japanese	
  food	  enables	
  mul:-­‐restaurant	
  opera:on	  >Restaurant development
capabilities
Specializing
in Japanese
food

Narrow-focusedcommodities
systemiza:onoutsourcing

mul:-­‐
restaurants

mul:-­‐
・・・・・・・・
多店舗
restaurants
・・・・・

restaurants

low breakeven point
We always
aim for thelowest pricezone.

mul:-­‐
・・・・・・
restaurants
・・・・・・

18

Strength:	
  High	  produc:vity	
  (kitchen	
  capabili:es)<	
  Seeking	
  streamlined	
  kitchen	
  opera:ons	
  >Kitchen	
  capabili2es

Least	
  wai6ng	
  6me	
  means	
  maximum	
  service

kitchen capability ①

Mechanization

Simplification

non-boiling noodle cooker
microwave rice cooker
miso-soup dispenser
soup stock dispenser

pre-­‐processed	
  foodstuﬀ	
  (knives	  are	
  NOT	
  required)

kitchen capability②

laborsaving
more profitability
streamlined kitchen
maximizing floor area

Systemization
stabilization
updating POS/OES
adopting TOS(table order system)

cooking professional is NOT required
low labor costHigh
productivity
Japan	
  
ese	
  	
  
food

table restaurant

We always
aim for thelowest pricezone.
cragsman	  is	
  NOT	
  required
Supreme	  Tenpura	
  cooked	
  by	
  nonprofessional
19

Strength:	
  Purchase	
  &	
  development	
  capabili:es<	
  Purchase	
  &	
  development	
  ac:vi:es	
  on	
  our	
  own	
  accounts	
  >By carrying out purchase & development activities on our own accounts worldwide, a mechanism
has been built up in which safer and carefully selected foodstuff can be obtained stably.

Purchase	
  &	
  development	
  capabili2es
Vertical merchandising<Steps ofcommodification plan>① procure	
  raw	
  materials②processworldwide

commodification plan
centralized inhouse control④sell at restaurants

direct purchasepurchase/quality/pricestable③distributedesign(examples)
prawn
eel
Hijiki seaweed
grated radish

in-house safety control

safe

controltaking totalrisk

We deliver safe and delicious
foods stably at affordable prices.
20

Strength:	
  Price	
  zone	  hedging	
  capabili:es<	
  Risk	  hedge	
  at	
  low	  to	
  middle	
  price	
  zone	  >specializing inJapanese foodover ¥2,000

insusceptible to economic
fluctuation

Various choices among
SRS group restaurants
meeting customers' needs

averagespendingaround ¥2,300

averagespending¥1,900 ~ ¥2,000

averagespending¥1,200 ~ ¥1,300

averagespending¥700 ~ ¥800

averagespendingaround ¥550

¥1,000 ~ ¥2,000¥1,000¥500 ~ ¥1,000¥500

covering each price zone

¥2,000Price	
  zone	  hedging	  capabili2es

21

Posi:on	  map	  by	
  categories<	
  Promo:ng	
  mechaniza:on	  >to reduce labor burden of cooking
at each restaurant
Realized
services with least
waiting time
more stable quality
lower prices

enhancingfast-­‐casualcooking	
  method

low	
  
price

labor-­‐intensive

mechaniza:on/systemiza:on

high	
  
price

22

高い

Strength:	
  High	  produc:vity	
  (total	  cost	  reduc:on)<	
  Total	
  cost	  reduc:on	
  realized	  high	  produc:vity	  >RealizedHigh	
  produc2vity

Total	
  cost	  reduc:on

restaurant
operationbusinessreformcooking flow

as less staff as possible

materials/
commodities/
logistics

Higher	  produc2vity
23

Market	  environment"Fast-casual"category is the promising one
Market size

Today

Food service industry as a whole: atthe level of 23 trillion yen
restaurants: about 12.5 trillion yen

Source: Foodservice Industry
Research Institutepromising category

Fast-casual restaurants
An intermediate category between fast-food restaurants andfamily restaurants, which realizes equivalent level of taste asconventional restaurants while delivering quick andaffordable commodities

Future24

Our	
  approach	
  to	
  Safety	
  &	  Relief• The	
  largest	
  chains	
  of	
  Japanese	
  food	  family	
  restaurants	
  • As	  for	
  raw	
  materials,	
  not	
  only	  quality	
  but	
  also	  their	
  surrounding	
  environment	
  (e.g.	
  soil,	
  water)	
  and	  transport	
  mode	  to	
  factories	
  are	
  checked	  Steps to procure safe foodstuff"Declara6on	
  of	
  Relief"In	
  order	
  to	
  provide	  safe	  and	
  delicious	
  dishes	
  to	
  our	
  customers,	
  intensive	  quality	
  control	
  is	
  carried	
  out	  in	
  every	
  step	  from	  raw	
  materials	
  procurement,	
  processing,	
  distribu6on	
  and	  through	
  to	
  in-­‐store	
  cooking.	
  Please	  feel	  relieved	
  to	
  enjoy	
  happy	
  6me.

①	
  Procurement②	
  Manufacturing③	
  Distribu:on

Not	
  to	
  men6on	
  Japan,	
  from	
  all	
  over	  the	
  world	
  we	
  procure	
  reliable	
  foodstuﬀ	
  
only.

Materials	
  are	
  carefully	
  processed	
  at	
  designated	
  factories	
  mee6ng	
  our	
  own	  criteria.

Materials	
  are	  transported	
  always	  under	  the	  best	  condi6ons	
  with	  temperature	
  strictly	
  controlled.

⑥	
  Serving⑤	
  Cooking④	  Inspec:onOur	
  paramount	
  mission	
  is	
  to	
  
serve	
  our	
  customers	
  with	  safe	
  and	
  delicious	
  dishes.

Detailed	  manuals	
  are	
  speciﬁed	
  and	
  implemented,	
  from	  how	  to	
  wash	  hands,	
  foodstuﬀ	
  management,	
  to	
  cleaning	
  cooking	
  utensils.

Sanitary	
  condi6ons	
  in	
  our	  restaurants	
  are	
  inspected	
  by	
  
the	
  HQ	
  with	  no	
  no6ce,	
  and	  are	
  strictly	
  controlled.

25

Working	
  environment
In addition to establishing our business brands, it is further
important to create more comfortable working environment
and more rigorous food safety control!
Staff attendance
management by veinauthentication
adopted Overtime pay is

One week consecutive
leave scheme
achieved 100% taken

Shift toregular employees
achievedcounted in minutes.

Low jobturnover rate

NO 24 hours
operation

actualjob turnover rate: 5.2%

average in lodging / food service industries:
30.4%
source: Statistics Bureau of Japan, "Hiring
rates and turnover rates of full-time workers
by industry (2013)"

300 part-time
employees shiftedto regular
employees

Full five-day
workweek
promoting100%
achievement

Our employees feel comfortable to work.
26

About our business categories

27

The largest brand of SRS group
Extremely popular for its "Sato-Shabu" (allyou-can-eat style Shabu-Shabu)
Features• One	  of	
  Japan's	
  largest	
  chains	
  of	
  family	
  restaurants	  for	
  Japanese	
  food	  • Many	  are	
  located	
  on	
  main	
  roads	
  in	
  the	
  suburbs;	
  some	
  are	  in	
  shopping	
  centers	  • Serving	
  Japanese	  meals,	
  such	  as	
  nabe	  (hot	  pot),	
  rice	  bowl	
  dishes,	
  and	
  noodles	
  at	
  reasonable	
  prices	  • Realizing	
  low-­‐cost	
  opera6on
Number	  of	
  restaurants

199	
  restaurants	
  
(118	
  in	
  Kansai,	
  41in	
  Chubu,	
  40in	  Kanto	  areas)Average	
  spending¥1,200	
  ~	
  ¥1,300

Strategies• Further	
  cost	  reduc6on	
  in	
  opening	
  new	  restaurants	
  • Scrap	
  &	
  build	
  to	
  enhance	
  proﬁtability	
  • 	
  Further	
  evolu6on	  of	  "Sato-­‐Shabu"	
  and	
  establishing	
  another	
  core	  menu	  following	  "Sato-­‐Shabu"	  • Adop6ng	
  "table	
  order	  system"	
  at	
  every	  restaurant
28

Starting brand of SRS groupServing traditional Japanese cuisine
mainly in Osaka City
Features• Focused	
  on	
  Nabe	  &	  Sushi,	
  making	
  full	  use	  of	
  seasonal	
  materials,	
  taste	  of	
  Dashi	  soup	  stock	
  and	
  craksmanship	  • Every	  restaurant	
  provides	
  Zashiki	
  (Japanese	  style	  room),	  useful	  for	
  large	
  &	
  small	
  par6es,	
  Buddhist	
  memorial	
  service	
  and	
  celebra6on	
  • Fresh	
  centers	
  enable	
  more	  stable	
  quality	
  of	
  raw	  materials	
  • More	  freshness	
  of	
  foodstuﬀ	
  and	  more	  on-­‐site	
  produc6vity	  • Home	  delivery	  service
Number	  of	  	
   Sushi-­‐Han	
  Houzenji	
  Main	  Restaurant:	
  1	
  restaurants Sushi-­‐Han:	
  13	
  restaurants
Average	  	
  spending¥1,900	
  ~	
  ¥2,000

StrategiesMore	
  on-­‐site	
  produc6vity	
  by	
  making	
  
use	
  of	
  fresh	
  centers
29

Tendon	
  &	  Tenpura	
  restaurant	  SantenSupreme	  Tenpura	
  cooked	  by	
  nonprofessional

While committing to genuine Tenpura,realizing thorough systemization toprovide "Quick, Low-price and Sizzling"
Tendon & Tempura

1st	
  restaurant	
  opened	
  in	
  August,	
  2012Features• Fast-­‐casual	  restaurants,	
  a	
  growing	  category	  • New	
  category	
  that	  is	
  developed	
  internally	  • Prawn	
  Tendon	
  (Tenpura	
  Bowl),	
  the	
  principal	
  item,	
  is	
  served	
  at	
  390	
  yen	  • Thorough	
  systemiza6on	
  and	
  low-­‐cost	
  opera6on

Number	  of	  	
   Directly-­‐managed:	
  19	
  restaurants
restaurants	
  Average	  	
  spendingaround	  ¥550Strategies• Building	  up	
  brand	  value	  • Ac6vely	
  opening	
  new	
  directly-­‐managed	
  restaurants	
  • FC	
  development	
  30

Genuine-­‐oriented	
  gourmet	
  Sushi-­‐go-­‐round
July,	  2013	  
FOODSNET	  Corpora6on	
  became	
  a	
  wholly-­‐
owned	
  subsidiary.
Features• Established	
  brand	
  image	
  mainly	
  in	
  Kansai	  area	  • Top	
  brand	
  of	  Kansai	  area	  as	
  gourmet	
  Sushi-­‐go-­‐round	
  restaurants	  • Wide	  variety	
  of	
  restaurant	
  development	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
(large,	
  mid-­‐size,	
  small-­‐size	
  and	
  roadside	
  restaurants)	
  • Home	  delivery	
  style	  Sushi	  restaurants	
  are	
  also	
  developing

Number	
  of	
  	
  
restaurants

Nigiri	
  Chojiro:	
  52	
  restaurants	
  Home	
  delivery	
  style	  Sushi:	
  23	
  shops

Average	  	
  spendingaround	  ¥2,300

Strategies• Con6nuously	
  opening	
  new	  restaurants	  • Crea6ng	
  synergies	
  with	  other	  categories	
  of	
  SRS	
  group	
  for	
  purchase/logis6cs	  • Craksman	
  training	
  (Omotenashi	
  Dojo	  (hospitality	
  training))
31

October,	  2010	  Crispy,	  tender	  and	
  big	
  por:on	  of	
  pork	  cutletSATO▪ARCLAND	
  FOODSERVICE	
  CO.,	
  LTD.	
  was	
  established	
  by	
  joint	
  investment	
  with	  Arcland	
  Service	
  Co.,	
  Ltd.	
  (SRS	  contributes	
  51%).

Features• Developing	
  direct	  restaurants	
  and	  FC	  restaurants	
  in	
  Kansai	  area	  • Simple	
  opera6on	
  (narrow-­‐focused	
  foodstuﬀ,	
  cooking	
  method	  and	
  number	  of	
  commodi6es)	
  Serving	
  total	
  17	
  menu	  items	  made	  of	
  principal	
  5	
  items	
  of	
  foodstuﬀ	
  • Fair:	
  Fair	  items	
  are	
  promoted	
  monthly	
  Price	
  cut	
  campaign	
  of	
  regular	
  menu	  items	
  once	  in	
  2	
  months	  • Overwhelming	
  volume	
  impression

Number	
  of	
  	
  
restaurants

Directly-­‐managed:	
  15	
  restaurants
FC:	
  14	
  restaurants

Average	  	
  spending

¥700	
  ~	
  ¥800Strategies• Ac6vely	
  developing	
  takeout	
  items	  and	  delivery	
  service	  • Accelerated	
  opening	
  new	  restaurants	  • Full-­‐blown	
  FC	
  development	  32

Domes:c	
  development•Based	  in	
  Kansai,	
  and	
  expanded	
  to	
  Chukyo	
  area	  and	  Tokyo	
  metropolitan	
  area	  •Crea6ng	
  logis6cs	
  synergy	
  with	  Foodsnet	
  Corp.

Washoku Sato

SantenSushi-Han

Nigiri Chojiro

Miyakobito

Katsuya33

Overseas business development

34

Overseas	
  business	
  history
Jul.. 2008

1st restaurant in Shanghai opened(Shanghai City)→but closed later

Oct. 2010

1st restaurant in Taiwan opened(in Hankyu department store)
Joint venture with President Chain Store Corp.

Apr. 2013

2nd restaurant in Taiwan opened(Tamsui branch)Sep.2013

1st restaurant in Indonesia opened(Central Park branch)
Joint venture with PT. INDOMARCO PRISMATAMA (Indomaret)

Oct. 2014

1st restaurant in Thailand opened(J-Park branch)Started to sell "Sato Shabu"
Joint venture with Nippon Tei and Saha Group

Apr. 2015
May 2015
Sep.2015
Sep.2015
Oct. 2015

Started to sell"Sato Shabu"at Tamsui branch (Taiwan)
Second branch in Indonesia (MOI branch)Started to sell "Sato Shabu" at branches in Indonesia
Second branch in Thailand opened (AMATA Home Pro branch)
Third branch in Thailand opened (Sriracha AEON branch)

Number	
  of	
  restaurants

2	
  in	
  Taiwan2	
  in	
  Indonesia 3	
  in	
  Thailand

(as	
  of	
  Oct.	
  31,	  2015)35

高い

Taiwan36

高いIndonesia37

高いIndonesia38

高いIndonesia
Mall Of Indonesia (MOI)
branch39

高い

ThailandIn THAILAND

40

高い

ThailandIn THAILAND

41

高い

ThailandIn THAILAND

42

高い

ThailandIn THAILAND
J-Park branch

AMATA Home Pro branch

Sriracha AEON branch43

Overseas	
  business
Aiming	  for	  "realizing	
  Japanese	  restaurants	
  where	  as	
  many	  people	
  as	
  possible	
  worldwide	
  could	
  enjoy	
  genuine	
  Japanese	
  cuisine	
  at	
  reasonable	
  prices."
Indonesia

TaiwanJoint	
  venture	
  PT.INDOMARCO	
  PRISMATAMA

Joint	
  venture	
  President	
  Chain	
  Restaurant	  Corpora6on

September,	  2013:	
  1st	  restaurant	
  started	
  up	
  (Jakarta)
May,	  2015:	
  MOI	
  branch	
  opened
Strategies

・Establishing	  business	
  base	  in	
  Indonesia	
  ・Expanding	
  sales	
  network	
  for	
  lunchbox	
  in	
  Indonesia

October,	
  2010:	
  1st	  restaurant	
  started	
  up	
  in	
  Hankyu	
  department	
  restaurant	
  (Taipei)	  April,	
  2013:	
  2nd	  restaurant	
  started	
  up	
  in	
  Danshui	  District	
  (newly-­‐established	
  residen:al	
  area)Strategies

・More	  restaurants	  	
  operated	
  in	
  Taiwan44

Overseas	
  business2014:	  3rd	
  overseas	
  development	
  to	
  Thailand"We	
  will	  contribute	  to	
  rich	  cuisine	
  culture	
  by	
  delivering	
  genuine	
  Japanese	
  cuisine	
  at	
  reasonable	
  price	
  zone	  to	
  more	  and	  more	  people	  in	
  Thailand."Thailand【Joint	  venture】
Nippon	  Tei	
  Group	  &	
  Saha	  Group
August, 2014

Joint venture established

October, 2014

Washoku Sato
1st restaurant opened (J-Park branch)

September, 2015

AMATA Home Pro branch opened

October, 2015

Sriracha AEON branch opened【Strategies】
8	
  Washoku	
  Sato	  restaurants	
  within	
  5	
  years

Further	  expansion
45

Meotozenzai
Founded in 1883
A famous brand inheriting culinary tradition of ordinary people of Osaka,located onthe 1st floor of Houzenji main restaurant
Now rapidly gaining popularity, thanks to the same-named NHK drama
program "Meotozenzai"(August - September, 2013)46

Corporate Profile

47

Corporate	
  ProﬁleRegistered Name
Headquarters
Established
Paid in Capital

SATO RESTAURANT SYSTEMS CO., LTD.
30F Osaka Kokusai Building,
2-3-13, Azuchi-machi, Chuo-ku, Osaka-City, OSAKA, 541-0052
August 27, 1968
￥8,532,000,000

Employees

1,174(consolidated)
Part-time and temporary employees: 9,359 (consolidated)

Number of restaurants

342(as of end of Sep. 2015)
Japanese restaurants chain "Washoku Sato": 199"Sushi-Han Houzenji Main Restaurant": 1"Washoku Nabedokoro Sushi-Han": 13
Tenpura specialty restaurants "Tendon & Tenpura restaurant Santen": 17
Gourmet Sushi-go-round "Nigiri Chojiro": 52Home-delivery & takeout Sushi shops "Miyakobito": 21"Nigiri Chujiro": 3
Pork cutlet specialty restaurants "Katsuya" (Kansai area): 29(Directly-managed: 15; FC: 14)

Subsidiaries

FOODSNET Corporation (Nigiri Chojiro, Nigiri Chujiro, Miyakobito)
SATO▪ARCLAND FOODSERVICE CO., LTD. (Katsuya)

Affiliates

President Sato Co., Ltd. (Taiwan) 3 restaurants
PT. Indosato Jaya Makmur Co., Ltd. (Indonesia) 2 restaurants
Nippon Tei Sato Co., Ltd. ‘Thailand) 2 restaurants

48

History of transition (corporate development and number of restaurants)
1970

early 1990's

Osaka EXPO

１９６０ １９７０

１９８０

１９９０ ２０００

Start-up Established→ Growth ①

２００4

２００５〜２０１３

2005

252
211

1993
1989

New
Renamed to SATO RESTAURANT
category
SYSTEMS CO., LTD.
Susumu Shigesato, founder president, passed away
Yoshitaka Shigesato took office as president

Designated as 1st section
brand of the Osaka
Securities Exchange

1984
Listed on 2nd section of the Osaka
Securities ExchangeNew
category

1978
1st Western food restaurant opened
exceeding 100 restaurants at peak

1974

Started "Hozenji
Sushi-Han"

1968

Renamed to Sato Co., Ltd.

Established Amagasaki"Sushi-Han Honten"

FCbusiness2012
8 1st restaurant of Tendon & Tenpura restaurant Santen
10 Outsourced manufacturing
11 Head office moved to Chuo-ku, Osaka-City2010
10 Established SATO▪ARCLAND FOODSERVICE CO., LTD.
(running "Katsuya")
Numbers include FC
11 1st restaurant of Katsuya
and overseas
10 Opened 1st restaurant in Taiwan

NOTE: Numbers include FC and overseas

9 3rd restaurantin Taiwan opened
Hot pot for oneperson "NabeSato

7 Acquired 100% of outstanding shares of
FOODSNET Corporation (Nigiri Chojiro and others)
7 Moved to 1st section of the Tokyo Securities
Exchange
9 Opened 1st restaurant in Indonesia

1st Washoku Sato suburban
restaurant opened in
Kashihara City (Nara Pref.)restaurants

1958

2013

M&A

1985

137

100

221

1998

200

1981

10 1st Washoku
Sato in Thailand
opened211

209
restaurants

2014

2013
211

2006

1991

Mar. 31, 2015

Nigiri Chojiro
increased by 50
restaurants

2005

1990年

Growth ③ and the future

329restaurants

Outsourced manufacturingrestaurants

209

２０１４

2011

1st structuralreformAbandoned Western food andfocused on Japanese foodLehman's collapse

Structural reform / Business reform /new category development

Growth ②

1997〜2002

300

2008

Bubble burst

49

Risk	
  factors	
  and	
  measures
SRS group makes use of risk management for our day-to-day
corporate management.
Sales fluctuation
MeasureAccelerated opening new restaurants of "Katsuya" and "Santen", both of which are fast-casualrestaurants insusceptible to economic fluctuation.
"Washoku Sato" aims for enhancing its profitability up to the limit and for the lowest price zone.

Competition
MeasureTaking customers satisfaction as a motto, while planning affordable commodities in terms of price,
quality and quantity.
Stable capabilities of procuring principal raw materials and kitchen capability always seeking
streamlining.

Profit dispersion
MeasureSales dependency on the main category "Washoku Sato" declined from 90% to around 65%, due toacquisition of Foodsnet Corporation.
Actively developing the fast-casual restaurants of "Santen" and "Katsuya", thereby facilitating further
dispersion.

Food safety
MeasureIntensive quality control is carried out in every step from raw materials procurement, processing,
distribution and through to in-store cooking.
Ensuring hand-washing and health status check at every restaurant, and more prompt reporting of
bad health by means of workflow.

Purchase price and stable procurement
MeasurePromoting purchase & development capabilities (e.g. direct purchase of foodstuff) and "verticalmerchandising".
(examples) prawn, eel, Hijiki seaweed and grated radish
50

Human	  resource	
  educa:on
Manpower	
  makes	
  a	
  company	
  SRS	
  group	
  has	
  put	
  its	
  eﬀort	  into	  fostering/reinforcing	
  human	
  resource	
  as	
  its	  paramount	
  agenda.
Recommencing	
  the	
  educator	
  scheme	
  With	
  respect	
  to	
  educa6on	
  plan	
  for	  the	
  en6re	  company	
  organiza6on,	
  to	
  assign	
  a	
  responsible	
  person	
  for	
  supervising	
  the	
  plan	  in	
  a	
  centralized	
  manner	  and,	
  under	
  a	
  uniform	
  educa6on	
  scheme,	
  to	
  promote	
  fostering	
  human	  resource	
  with	  focus	
  on	
  educa6ng	
  candidates	
  for	
  execu6ve	
  posi6ons.	
  Enhancing	
  internal/external	
  seminars	
  For	
  discovering	
  talented	
  personnel	
  and	
  u6lizing	
  human	  resource,	
  ac6vely	
  making	
  use	  of	
  in-­‐house	
  seminar	
  invi6ng	
  outside	
  lecturer	
  and	  of	
  various	
  external	
  seminars,	
  according	  to	
  such	  as	
  hierarchy,	
  age	
  and	
  roles.	
  	
  Considering	
  dispatching	
  employees	
  to	
  graduate	
  schools	
  Depending	
  on	
  the	
  educa6onal	
  objec6ve,	
  fostering	
  professional	
  staﬀ	
  and	
  candidates	
  for	
  execu6ve	
  posi6ons	
  by	
  making	
  use	  of	
  external	
  educa6on	
  curriculum,	
  beyond	
  inheri6ng	
  internal	
  know-­‐how.	
  Enhancing	  job-­‐rota:on	  Towards	
  accomplishing	
  the	  new	
  mid-­‐term	
  management	
  plan,	
  and	
  under	
  a	
  uniform	
  educa6on	
  scheme,	
  carrying	
  out	
  well-­‐planned	
  staﬀ	
  assignment	
  with	  a	
  long-­‐range	
  viewpoint,	
  with	  an	
  aim	  to	
  foster	  a	
  large	
  number	
  of	
  specialists.
51

Shareholder	
  composi:on
Total number of outstanding shares: 33,209,080 shares
Shareholders: 20,513(as of Sep. 30, 2015)(thousandshares)％Yoshitaka Shigesato

2,230

6.71

Yuriko Shigesato

2,050

6.17

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,199

3.61

Japan Trustee Services Bank, Ltd.

838

2.52

Kirin Brewery Co., Ltd.

600

1.80

Japan Trustee Services Bank, Ltd.

532

1.60

Trust & Custody Services Bank, Ltd.

377

1.13

Key Coﬀee, Inc.

278

0.83

Sato Restaurant Systems Employees Stock Ownership

256

0.77

Mizuho Bank, Ltd.

235

0.70

OthersNumber of foreign-owned shares:
860,550 shares 2.59%
Individual and other shareholders:
25,358,620 shares76.36%

Others74.17%

24,614 74.16

52

Contact
SATO RESTAURANT SYSTEMS CO., LTD.
Corporate Planning Division（Tanaka, Okamoto, Okada）

TEL: +81-6-7709-9977
email: 873@sato-rs.jp

Earnings forecasts and other descriptions concerning the future contained in this document are based on
information currently available to the Company. This includes largely uncertain elements and therefore
actual business performance and other elements may differ substantially due to various factors. We would
appreciate that you should understand the abovementioned presumptions and make decisions on any
investment according to your own judgement.