Financial Results for the 3rd Quarterof Fiscal Year Ending July 31, 2023
SILVER LIFE CO., LTD.
The Prime Market of the Tokyo Stock Exchange (9262)

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

Fiscal Year Ending July 2023 3 rd Quarter
Performance Highlights

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Fiscal Year Ending July 2023 Q3 Performance （vs YoY ）Sales continued to grow +9.1% YoY, and gross profit margin was 30.1%, a significant improvement of 2.9% even in
an inflationary environment
SG&A expenses, Labor Costs increased 1.4% (salary increase revised in Q2), Fare Costs increased 1.2% Operating
profit continues to improve at +16.1% YoY

FY2023 Q3Unit : million
yen

Vs.
FY2022Q3 results

FY2022 Q3
Plan

Sales
ratio

Progressrate

Results

FY2023 Plan

Sales
ratio

Plan

Sales
ratio

Net sales

9,022

+9.1%

-

71.0%

8,268

-

12,700-Gross
profit2,720+20.6%

30.1%

63.7%

2,254

27.3%

4,270

33.6%

Operatingprofit554+16.1%

6.1%

79.2%

477

5.8%

700

5.5%

Ordinary
profit698+19.8%

7.7%

81.3%

583

7.1%

860

6.8%

Profit437+14.6%

4.8%

79.5%

381

4.6%

550

4.3%

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-3-

Sales per Category

Franchise chains
Sales Unit : million yen

2,178
2,114

2,095
1,971

FY22 Q1

2,018

1,997

FY22 Q2

FY22 Q3

Vs. FY2022 Q3
cumulative Actual

FY22 Q4

+6.2%

2,064

FY23 Q1

FY23 Q2

FY23 Q3

978

975

964

73

85

95

Sales:
Decreased from Q1 due to lack of sales for COVID-19 patients
However, Sales of existing stores※ vs.previous year continued to grow at
107.5%
Price increase from March due to rising raw material purchase prices

Number of Stores
955

948

984

990

2

14

52

67

387

370

368

365

352

342

335

566

564

564

558

553

548

534

1000 Number of stores:
964 stores (down 11 stores from the end of Q2)
800
As the COVID-19 began to subside, the store visit type600 Stopping food distribution at restaurants and returning to the main business
400 More owners However, from March it rewinds and a new plastic with a
discount setting Strong FC contract acquisition by Ng Expected to bottom
200 out in the Q3 and recover in the Q4
0

FY22 Q1

FY22 Q2

Takushoku Life

FY22 Q3

FY22 Q4

Haishokuno Fureai

FY23 Q1

FY23 Q2

FY23 Q3※Comparison of stores existing in both the previous fiscal year and thecurrent fiscal year, excluding withdrawn stores

Magokoro Bento
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Sales per Category
Unit : million yen

328

Facilities
for theelderly

335

339
322

323

329

305

FY22

FY22

FY22

FY22

FY23

FY23

FY23

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Vs. FY2022 Q3
cumulative Actual+0.6%

YoY change remains flat
The trend of declining chilled and increasing
freezing continues
Strengthening the operation of facilities forpeople with disabilities
Frozen：division sales ratio is 47.3%
Chilled：division sales ratio is 52.7％

Unit : million yen
613

DirectSales/
Others

562
486
407

421

FY22
Q1

FY22
Q2

513

514

Vs. FY2022 Q3
cumulative Actual+28.6%
FY22
Q3

FY22
Q4

FY23
Q1

FY23
Q2

Direct Sales:New product introduction andadvertising expenses Successful measuresdivision sales ratio is 69.8%
OEM ：Increased sales through newacquisitions. division sales ratio is 28.1%
Warehousing：Increase in OEM warehousedivision sales ratio is 2.1%

FY23
Q3

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Change Analysis of Sales
FC Sales, Direct Sales, and others drove the overall growth, continuing to grow steadily
Unit : million yen

FC Loyalties,
etc.

Facilities for the
Elderly

Direct Sales/ Others

FC Food Sales

YoY Change
FY22 Q3
cumulative+754

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

million yen
FY23 Q3
cumulative-6-

Change Analysis of Gross Profit
Gross profit margin improved by 2.9%. Raw materials are on an upward trend, but the increase is absorbed byswitching from outsourced manufacturing to in-house manufacturing.
As of the Q3, the ratio of in-house production shifting to approximately 40% (100% of the total production atpartner factory during the same period last year)

Unit : million yen

Labor costs

Utilities
charge30.1％

Merchandise
OthersMaterial cost
cost
due to decrease
profit increase
Increased costs due to increased in-house manufacturingcosts and increased sales

Sales ratio

27.3％

Increase insales

YoY Change
FY22 Q3
cumulative

Sales ratio

Supplies
expense+465

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

million yen
FY23 Q3
cumulative-7-

Change Analysis of Ordinary Profit
Although SG&A expenses increased due to the operation of the Kazo Distribution Center, various costs wereabsorbed by improving gross profit.

Unit : million yen

FC
Loyalties,
etc.

Advertising
Outsourcing expense
Labor
Costs

Sales ratio

expenses

7.7％
Fare
Costs

Sales ratio

7.1％

Depreciation
Supplies
expenseFood Gross
ProfitYoY Change
FY22 Q3
cumulative+115

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

OthersUtilities
chargemillion yen
FY23 Q3
cumulative-8-

Outlook for OEM and warehousing
Success in acquiring several new ongoing projects in 3Q, but "profit decline" factor
Upfront costs incurred for hiring preparation Labor Costs and purchasing materials, etc.
Profit increase" factor from 4Q onward,
Sales are expected to be generated by ongoing transactions

Mar 2023 releaseApr 2023 release

OEM Manufacturing Entrusted with all
operations up to storage and shipping

Contracted frozen cut banana production andstorage operations

From Jun 2023
Increasing production for existing OEM
customers (received orders).

Scheduled for summer
Mar 2023 release
Contract manufacturing of frozen homedelivered infant meals

Apr 2023 release
OEM Manufacturing Entrusted with all
operations up to storage and shipping

Scheduled to start entrustment from restaurant
management company A, a prime-listedcompany(Detailed orders are to be received)

Aug~Sep 2023
Plans to start OEM consignment of frozen
bento from major bento company B(Detailed orders are to be received)

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-9-

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©2023 SILVER LIFE CO., LTD. All Rights Reserved.

- 11 -

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©2023 SILVER LIFE CO., LTD. All Rights Reserved.

- 12 -

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©2023 SILVER LIFE CO., LTD. All Rights Reserved.

- 14 -

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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- 15 -

Our Company Advantages

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Our Advantage : FC Network
Overwhelming number of stores

1,100
1,000

number of FC stores

990

900

Since opening its first store in “Setagaya” in November

800
700

2007, it has 990 stores as of the end of July 2022. This

600

unparalleled number of stores in the industry enables

400

you to enjoy economies of scale in terms of200

productivity, purchasing, and cost reduction

Low-cost opening

500
300
100
0

profit and loss statement of FC stores

Since the FC stores that we are developing are not

Sales

100 * Available at the lowest price on the market

visit-type stores, there are advantages such as a wide

Costs

40

Gross profit

60

labor costs

30* Easy operation without cooking

addition, we have prepared a plan that does not

expenses20* Low initial investment and location-free rent

require a large kitchen facility and can be operated byprofit10* Low fixed cost ratio generates profits

range of location options and rent reduction. In* Stable purchase of high quality without cooking

one person, and a plan with a low initial cost
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- 17 -

Our Advantage : Production System
High-mix random production
With an overwhelming number of stores, even the high-mix random
production required for chilled food delivery services enjoys economies ofscale in terms of purchasing and productivity
Manufacturing line required in a
general food factory (dedicatedline for a single product group)
Meat bun factory (1 million meat buns a
day flow from a machine dedicated to
manju to the conveyor. Although there
are differences in meat buns and beanbuns, they are the same product group)

Manufacturing line required forfood distribution service (line that
can handle random production ofother varieties)
Since meals are distributed daily, the same
product group cannot be provided every day.
12 items made today, 12 items made , allshould be different

Diversity of products
In addition to more than 1,000 chilled meals, wemanufacture a wide range of frozen bento boxes suchas a variety of frozen meals, protein-adjusted meals,
and mousse meals.

In addition, for frozen bento, both pillow type and top
seal type can be manufactured.

Chilled and frozen meals

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Frozen bento pillow type

Frozen bento Top Seal type- 18 -

Our Advantage : variety of menus
Food Pack
Menu：More than 1,000 items

Sold to：FC and Facilities for the Elderly
varieties ：chilled・frozen
feature：Nutritional balance for the elderly
Food pack for FC stores, which are our main company. Since it isa daily meal, it is served refrigerated so that it does not lose its
taste. In addition, we also provide frozen due to the expiration
date loss and convenience required by the facility.

Chilled Pack

After serving at FC stores

Frozen bento meals
menu： More than 70 items
Sold to：EC & FC
varieties：Health balance and large cuts

Carbohydrate calorie and protein adjustment
Moose diet and salt-restricted dietfeature：Suitable for all ages, short-time cooking, healthmanagement

We make frozen bento meals to meet diverse dietaryneeds, including convenience, time efficiency, and healthmanagement.

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

- 19 -

Reference: List of links
Products for FC

https://www.magokoro-bento.com/

EC siteProducts for Elderly Facilities

https://kodawari-chef.com/lp

OEM Business Site

OEM Business
https://l-meal.com/

https://www.silver-life.co.jp/oem

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

EC sitehttps://magokoro-care-shoku.com/

Business introduction

Business
Introduction
https://www.silver-life.co.jp/product- 20 -

Our Advantage : Product Development, Quality and Sanitation Manegement
Product Development
・Our Product Development Office is situated in our factory,
facilitating close collaboration with the production team forhigh-quality and authentic product reproduction
・Our product development team consists mainly of qualified 【qualification holders】
28 registered dietitians
registered dietitians who utilize their advanced knowledge to
3 nutritionists
achieve optimal nutritional balance and deliciousness
6 health managers(Product Development)

Quality and Sanitation Management
・Gunma Factory acquires FSSC 22000 certification, building
an advanced safety management system that meets
international standards

・Sanitation management team conducts bacterial testing,hygiene guidance and supervision in the factory.
・ In order to improve the taste of the bento boxes provided
to customers, tastings are held every day（foreign matter inspection）

Copyright©2023 SILVER LIFE CO., LTD. All Rights Reserved.

（Bacterial testing）- 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©2023 SILVER LIFE CO., LTD. All Rights Reserved.

Food distribution service for the elderly- 22 -

Company Overview

Copyright©2023 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©2023 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©2023 SILVER LIFE CO., LTD. All Rights Reserved.

- 25 -

Our History
Kazo Distribution Center begins operations

Change to TSE Prime Market

Apr. 2022
Launch of our third franchise
chain “Takushoku Life”
Tochigi Factory begins operations

Listing shifted to the TSE,First Section

Acquired FSSC22000 certification
for Gunma FactoryJan. 2020

Mar. 2022

Sep. 2021

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©2023 SILVER LIFE CO., LTD. All Rights Reserved.

- 28 -