----

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |
|                |   |   | (Not covered by Auditors' Report) |   | (Not covered by Auditors' Report) |
|                | Assets |   | December 31, 2012 |   | December 31, 2011 |
|                |   |   |   |   |   |
| Current assets:     |   |   |   |   |
|                | Cash and cash equivalents |   | ¥ | 3,890,270 |  |   | ¥ | 3,239,687 |  |
|                | Accounts receivable-trade |   | 3,062,349 |  |   | 3,045,929 |  |
|                | Finished products |   | 617,193 |  |   | 640,354 |  |
|                | Raw materials |   | 270,248 |  |   | 335,519 |  |
|                | Supplies |   | 239,570 |  |   | 218,569 |  |
|                | Advance payments |   | 21,734 |  |   | 11,872 |  |
|                | Prepaid expenses |   | 146,954 |  |   | 134,708 |  |
|                | Deferred tax assets |   | 73,915 |  |   | 93,748 |  |
|                | Accounts receivable-other |   | 32,309 |  |   | 28,063 |  |
|                | Other current assets |   | 60,803 |  |   | 30,458 |  |
|                | Allowance for doubtful accounts |   | (14,338 | ) |   | (10,304 | ) |
|                |                    Total current assets |   | 8,401,007 |  |   | 7,768,603 |  |
| Non-current assets: |   |   |   |   |
|                | Tangible fixed assets |   |   |   |   |
|                | Buildings |   | 1,867,323 |  |   | 1,522,471 |  |
|                |    Accumulated depreciation |   | (1,135,663 | ) |   | (1,092,515 | ) |
|                |    Buildings, net |   | 731,660 |  |   | 429,956 |  |
|                | Structures |   | 187,899 |  |   | 195,248 |  |
|                |    Accumulated depreciation |   | (136,145 | ) |   | (156,970 | ) |
|                |    Structures, net |   | 51,754 |  |   | 38,278 |  |
|                | Machinery and equipment |   | 2,055,115 |  |   | 2,052,109 |  |
|                |    Accumulated depreciation |   | (1,654,181 | ) |   | (1,589,977 | ) |
|                |    Machinery and equipment, net |   | 400,934 |  |   | 462,132 |  |
|                | Store leasehold improvements |   | 3,095,969 |  |   | 2,881,850 |  |
|                |    Accumulated depreciation |   | (1,591,487 | ) |   | (1,520,945 | ) |
|                |    Store leasehold improvements, net |   | 1,504,482 |  |   | 1,360,905 |  |
|                | Retail store equipment |   | 396,461 |  |   | 313,768 |  |
|                |    Accumulated depreciation |   | (141,344 | ) |   | (97,065 | ) |
|                |    Retail store equipment, net |   | 255,117 |  |   | 216,703 |  |
|                | Vehicles and transportation equipment |   | 58,449 |  |   | 37,294 |  |
|                |    Accumulated depreciation |   | (24,407 | ) |   | (18,751 | ) |
|                |    Vehicles and transportation equipment, net |   | 34,042 |  |   | 18,543 |  |
|                | Tools, furniture and fixtures |   | 677,409 |  |   | 655,795 |  |
|                |    Accumulated depreciation |   | (535,102 | ) |   | (470,297 | ) |
|                |    Tools, furniture and fixtures, net |   | 142,307 |  |   | 185,498 |  |
|                | Land |   | 695,362 |  |   | 695,362 |  |
|                | Construction in progress |   | 64,770 |  |   | 268,230 |  |
|                |       Total tangible fixed assets |   | 3,880,428 |  |   | 3,675,607 |  |
|                | Intangible assets |   |   |   |   |
|                | Software |   | 142,307 |  |   | 194,889 |  |
|                | Telephone subscription rights |   | 17,065 |  |   | 17,065 |  |
|                |       Total intangible assets |   | 159,372 |  |   | 211,954 |  |
|                | Investments and other assets |   |   |   |   |
|                | Investment securities |   | 32,304 |  |   | 24,949 |  |
|                | Loans receivable from employees |   | 10,636 |  |   | 12,013 |  |
|                | Other receivables |   | 222,745 |  |   | 236,616 |  |
|                | Prepaid expenses |   | 577,966 |  |   | 530,922 |  |
|                | Deferred tax assets |   | 139,575 |  |   | 132,962 |  |
|                | Lease deposits |   | 2,178,147 |  |   | 2,080,836 |  |
|                | Other non-current assets |   | 21,538 |  |   | 19,685 |  |
|                | Allowance for doubtful accounts |   | (76,792 | ) |   | (93,470 | ) |
|                | Investments and other assets |   | 3,106,119 |  |   | 2,944,513 |  |
|                |                    Total non-current assets |   | 7,145,919 |  |   | 6,832,074 |  |
|                |                    Total assets |   | ¥ | 15,546,926 |  |   | ¥ | 14,600,677 |  |
|                |   |   |   |   |   |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |
|                                   |   |   | (Not covered by Auditors' Report) |   | (Not covered by Auditors' Report) |
|                                   | Liabilities and Net assets |   | December 31, 2012 |   | December 31, 2011 |
|                                   |   |   |   |   |   |
| Current liabilities:                   |   |   |   |   |
|                                   | Accounts payable-trade |   | ¥ | 380,344 |  |   | ¥ | 529,888 |  |
|                                   | Accounts payable-other |   | 1,216,802 |  |   | 1,210,192 |  |
|                                   | Accrued expenses |   | 28,763 |  |   | 27,478 |  |
|                                   | Provision for income taxes |   | 665,274 |  |   | 566,660 |  |
|                                   | Accrued consumption taxes |   | 47,614 |  |   | 37,510 |  |
|                                   | Gift card liability |   | 639,739 |  |   | 540,768 |  |
|                                   | Deposits received |   | 126,062 |  |   | 106,009 |  |
|                                   | Employees' bonuses |   | 29,703 |  |   | 32,572 |  |
|                                   | Directors' bonuses |   | 11,000 |  |   | 17,000 |  |
|                                   | Other current liabilities |   | 34,440 |  |   | 59,490 |  |
|                                   |                    Total current liabilities |   | 3,179,741 |  |   | 3,127,567 |  |
| Non-current liabilities:               |   |   |   |   |
|                                   | Employees' retirement benefits |   | 163,069 |  |   | 143,012 |  |
|                                   | Directors' retirement benefits |   | 77,400 |  |   | 65,401 |  |
|                                   | Asset retirement obligations |   | 85,406 |  |   | 73,261 |  |
|                                   | Long-term deposits received |   | 1,111,907 |  |   | 1,099,229 |  |
|                                   |                    Total non-current liabilities |   | 1,437,782 |  |   | 1,380,903 |  |
|                                   |                    Total liabilities |   | 4,617,523 |  |   | 4,508,470 |  |
|                                   |   |   |   |   |   |
| Net Assets:                            |   |   |   |   |
| Stockholders' equity:                  |   |   |   |   |
|                                   | Common stock |   | 735,286 |  |   | 735,286 |  |
|                                   | Capital surplus |   |   |   |   |
|                                   |    Legal capital surplus |   | 241,079 |  |   | 241,079 |  |
|                                   |    Total capital surplus |   | 241,079 |  |   | 241,079 |  |
|                                   | Retained earnings |   |   |   |   |
|                                   |    Legal reserve |   | 168,677 |  |   | 168,677 |  |
|                                   |    Other |   |   |   |   |
|                                   |      Other reserves |   | 4,140,000 |  |   | 4,140,000 |  |
|                                   |      Retained earnings |   | 5,643,589 |  |   | 4,836,010 |  |
|                                   |    Total retained earnings |   | 9,952,266 |  |   | 9,144,687 |  |
|                                   | Treasury stock |   | (16,893 | ) |   | (16,893 | ) |
|                                   |                    Total stockholders' equity |   | 10,911,738 |  |   | 10,104,159 |  |
| Valuation and translation adjustments: |   |   |   |   |
|                                   | Net unrealized gains (losses) on available-for-sale securities, net of tax |   | 2,126 |  |   | (835 | ) |
|                                   | Net gains (losses) on deferred hedges, net of tax |   | 15,539 |  |   | (11,117 | ) |
|                                   |                    Total valuation and translation adjustments |   | 17,665 |  |   | (11,952 | ) |
|                                   |                    Total net assets |   | 10,929,403 |  |   | 10,092,207 |  |
|                                   |                    Total liabilities and net assets |   | ¥ | 15,546,926 |  |   | ¥ | 14,600,677 |  |
|                                   |   |   |   |   |   |

----

|                                                                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                 |   | (Not covered by Auditors' Report) |   | (Not covered by Auditors' Report) |   |   |
|                                                                                                                                                                 |   | Year ended December 31, 2012 |   | Year ended December 31, 2011 |   | Year ended December 31, 2010 |
| Revenues:                                                                                                                                                            |   |   |   |   |   |   |
| Sales of finished products                                                                                                                                           |   | ¥ | 16,348,657 |  |   | ¥ | 15,729,348 |  |   | ¥ | 14,696,644 |  |
| Royalty income                                                                                                                                                       |   | 3,421,584 |  |   | 3,349,178 |  |   | 3,150,990 |  |
| Rental income of store equipment                                                                                                                                     |   | 1,013,313 |  |   | 980,414 |  |   | 930,737 |  |
|                     Total revenues                               |   | 20,783,554 |  |   | 20,058,940 |  |   | 18,778,371 |  |
| Cost of sales:                                                                                                                                                       |   |   |   |   |   |   |
| Finished products at the beginning of the year                                                                                                                       |   | 640,353 |  |   | 528,830 |  |   | 365,758 |  |
| Cost of products manufactured during the year                                                                                                                        |   | 7,875,854 |  |   | 7,693,295 |  |   | 7,006,948 |  |
|                     Total                                        |   | 8,516,207 |  |   | 8,222,125 |  |   | 7,372,706 |  |
| Transfers to other accounts                                                                                                                                          |   | (62,304 | ) |   | (78,595 | ) |   | (45,364 | ) |
| Finished products at the end of the year                                                                                                                             |   | (617,193 | ) |   | (640,353 | ) |   | (528,830 | ) |
| Cost of finished products sold                                                                                                                                       |   | 7,836,710 |  |   | 7,503,177 |  |   | 6,798,512 |  |
| Cost of store equipment                                                                                                                                              |   | 500,232 |  |   | 480,920 |  |   | 439,665 |  |
|                    Total cost of sales                                |   | 8,336,942 |  |   | 7,984,097 |  |   | 7,238,177 |  |
|                    Gross profit                                       |   | 12,446,612 |  |   | 12,074,843 |  |   | 11,540,194 |  |
| Selling, general and administrative expenses:                                                                                                                        |   |   |   |   |   |   |
| Delivery and storage charges                                                                                                                                         |   | 1,542,064 |  |   | 1,468,236 |  |   | 1,255,453 |  |
| Advertising expenses                                                                                                                                                 |   | 2,655,946 |  |   | 2,581,232 |  |   | 2,306,586 |  |
| Royalty                                                                                                                                                              |   | 202,719 |  |   | 198,961 |  |   | 184,387 |  |
| Rental expenses                                                                                                                                                      |   | 404,033 |  |   | 365,615 |  |   | 352,524 |  |
| Salaries, allowances and bonuses                                                                                                                                     |   | 1,057,612 |  |   | 1,005,028 |  |   | 980,201 |  |
| Provision for bonuses                                                                                                                                                |   | 25,123 |  |   | 27,077 |  |   | 28,966 |  |
| Employees' retirement benefits                                                                                                                                       |   | 74,756 |  |   | 72,645 |  |   | 59,880 |  |
| Directors' retirement benefits                                                                                                                                       |   | 12,000 |  |   | 11,400 |  |   | 10,100 |  |
| Other wages                                                                                                                                                          |   | 237,955 |  |   | 194,024 |  |   | 187,517 |  |
| Sales promotion expenses                                                                                                                                             |   | 804,806 |  |   | 752,143 |  |   | 673,778 |  |
| Franchise general expenses                                                                                                                                           |   | 365,578 |  |   | 322,149 |  |   | 490,461 |  |
| Depreciation                                                                                                                                                         |   | 578,449 |  |   | 578,064 |  |   | 562,282 |  |
| Provision for doubtful accounts                                                                                                                                      |   | 7,995 |  |   | — |  |   | — |  |
| Other                                                                                                                                                                |   | 1,706,019 |  |   | 1,587,503 |  |   | 1,551,556 |  |
|                    Total selling, general and administrative expenses |   | 9,675,055 |  |   | 9,164,077 |  |   | 8,643,691 |  |
|                    Operating income                                   |   | 2,771,557 |  |   | 2,910,766 |  |   | 2,896,503 |  |
| Non-operating income:                                                                                                                                                |   |   |   |   |   |   |
| Interest income                                                                                                                                                      |   | 600 |  |   | 800 |  |   | 1,082 |  |
| Gain on sales of fixed assets                                                                                                                                        |   | 71,046 |  |   | 51,983 |  |   | 45,342 |  |
| Gain on unused gift card                                                                                                                                             |   | 39,394 |  |   | 22,356 |  |   | 15,208 |  |
| Royalty income                                                                                                                                                       |   | — |  |   | 11,542 |  |   | — |  |
| Other                                                                                                                                                                |   | 11,683 |  |   | 5,839 |  |   | 6,339 |  |
|                    Total non-operating income                         |   | 122,723 |  |   | 92,520 |  |   | 67,971 |  |
| Non-operating expenses:                                                                                                                                              |   |   |   |   |   |   |
| Loss on disposals of fixed assets                                                                                                                                    |   | 23,122 |  |   | 21,467 |  |   | 20,710 |  |
| Other                                                                                                                                                                |   | 4,015 |  |   | 1,835 |  |   | 2,654 |  |
|                    Total non-operating expenses                       |   | 27,137 |  |   | 23,302 |  |   | 23,364 |  |
|                    Ordinary income                                    |   | 2,867,143 |  |   | 2,979,984 |  |   | 2,941,110 |  |
| Extraordinary gains:                                                                                                                                                 |   |   |   |   |   |   |
| Gain on reversal of allowance for doubtful accounts                                                                                                                  |   | — |  |   | 3,620 |  |   | 5,249 |  |
| Gain on sales of other fixed assets                                                                                                                                  |   | 12,760 |  |   | 1,846 |  |   | 1,154 |  |
| Insurance income                                                                                                                                                     |   | — |  |   | 15,313 |  |   | — |  |
| Compensation on lease termination                                                                                                                                    |   | — |  |   | — |  |   | 20,029 |  |
| Refund of consumption taxes                                                                                                                                          |   | — |  |   | — |  |   | 4,203 |  |
|                    Total extraordinary income                         |   | 12,760 |  |   | 20,779 |  |   | 30,635 |  |
| Extraordinary losses:                                                                                                                                                |   |   |   |   |   |   |
| Loss on sales of fixed assets                                                                                                                                        |   | 10,545 |  |   | — |  |   | — |  |
| Loss on disposals of other fixed assets                                                                                                                              |   | 22,317 |  |   | 21,086 |  |   | 24,137 |  |
| Loss on disaster                                                                                                                                                     |   | — |  |   | 223,948 |  |   | — |  |
| Loss on disposals of inventories                                                                                                                                     |   | 12,050 |  |   | — |  |   | — |  |
| Loss on adjustment for changes of accounting standard for asset retirement obligations                                                                               |   | — |  |   | 26,010 |  |   | — |  |
|                    Total extraordinary losses                         |   | 44,912 |  |   | 271,044 |  |   | 24,137 |  |
|                    Income before income taxes                         |   | 2,834,991 |  |   | 2,729,719 |  |   | 2,947,608 |  |
| Income taxes-current                                                                                                                                                 |   | 1,262,220 |  |   | 1,186,988 |  |   | 1,294,000 |  |
| Income taxes-deferred                                                                                                                                                |   | (5,687 | ) |   | 9,701 |  |   | 1,758 |  |
|                    Total income taxes                                 |   | 1,256,533 |  |   | 1,196,689 |  |   | 1,295,758 |  |
|                    Net income                                         |   | ¥ | 1,578,458 |  |   | ¥ | 1,533,030 |  |   | ¥ | 1,651,850 |  |
|                                                                                                                                                                 |   |   |   |   |   |   |

----

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                              |   | (Not covered by Auditors' report) |   | (Not covered by Auditors' Report) |   |   |
|                                                                                                              |   | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Shareholders' equity                                                                                              |   |   |   |   |   |   |
|  Common stock                                                                                              |   |   |   |   |   |   |
|     Balance at the beginning of the year                                              |   | ¥ | 735,286 |  |   | ¥ | 735,286 |  |   | ¥ | 735,286 |  |
|     Changes during the year                                                           |   |   |   |   |   |   |
|             Total changes during the year       |   | — |  |   | — |  |   | — |  |
|        Balance at the end of the year                                           |   | 735,286 |  |   | 735,286 |  |   | 735,286 |  |
|                                                                                                              |   |   |   |   |   |   |
|  Capital surplus                                                                                           |   |   |   |   |   |   |
|    Legal capital surplus                                                                     |   |   |   |   |   |   |
|       Balance at the beginning of the year                                            |   | 241,079 |  |   | 241,079 |  |   | 241,079 |  |
|       Changes during the year                                                         |   |   |   |   |   |   |
|              Total changes during the year      |   | — |  |   | — |  |   | — |  |
|          Balance at the end of the year                               |   | 241,079 |  |   | 241,079 |  |   | 241,079 |  |
|                                                                                                              |   |   |   |   |   |   |
|        Total capital surplus                                                   |   |   |   |   |   |   |
|         Balance at the beginning of the year                                                 |   | 241,079 |  |   | 241,079 |  |   | 241,079 |  |
|       Changes during the year                                                         |   |   |   |   |   |   |
|              Total changes during the year |   | — |  |   | — |  |   | — |  |
|         Balance at the end of the year                                  |   | 241,079 |  |   | 241,079 |  |   | 241,079 |  |
|                                                                                                              |   |   |   |   |   |   |
|  Retained earnings                                                                                         |   |   |   |   |   |   |
|      Legal Reserve                                                                   |   |   |   |   |   |   |
|          Balance at the beginning of the year                  |   | 168,677 |  |   | 168,677 |  |   | 168,677 |  |
|      Changes during the year                                                   |   |   |   |   |   |   |
|             Total changes during the year     |   | — |  |   | — |  |   | — |  |
|          Balance at the end of the year                             |   | 168,677 |  |   | 168,677 |  |   | 168,677 |  |
|                                                                                                              |   |   |   |   |   |   |
|       Other reserves                                                                                       |   |   |   |   |   |   |
|          Balance at the beginning of the year                                                |   | 4,140,000 |  |   | 4,140,000 |  |   | 4,140,000 |  |
|          Changes during the year                                                             |   |   |   |   |   |   |
|            Total changes during the year               |   | — |  |   | — |  |   | — |  |
|          Balance at the end of the year                                                      |   | 4,140,000 |  |   | 4,140,000 |  |   | 4,140,000 |  |
|                                                                                                              |   |   |   |   |   |   |
|       Retained earnings brought forward                                                                    |   |   |   |   |   |   |
|         Balance at the beginning of the year                                                 |   | 4,836,010 |  |   | 4,122,041 |  |   | 3,192,893 |  |
|         Changes during the year                                                              |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |
|            Dividends                                                           |   | (770,879 | ) |   | (819,061 | ) |   | (722,702 | ) |
|            Net income                                                          |   | 1,578,458 |  |   | 1,533,030 |  |   | 1,651,850 |  |
|      Total changes during the year                                             |   | 807,579 |  |   | 713,969 |  |   | 929,148 |  |
|         Balance at the end of the year                                                       |   | 5,643,589 |  |   | 4,836,010 |  |   | 4,122,041 |  |
|                                                                                                              |   |   |   |   |   |   |
|       Total retained earnings                                                                              |   |   |   |   |   |   |
|         Balance at the beginning of the year                                                 |   | 9,144,687 |  |   | 8,430,718 |  |   | 7,501,570 |  |
|         Changes during the year                                                              |   |   |   |   |   |   |
|            Dividends                                                           |   | (770,879 | ) |   | (819,061 | ) |   | (722,702 | ) |
|            Net income                                                          |   | 1,578,458 |  |   | 1,533,030 |  |   | 1,651,850 |  |
|      Total changes during the  year                                            |   | 807,579 |  |   | 713,969 |  |   | 929,148 |  |
|         Balance at the end of the year                                                       |   | 9,952,266 |  |   | 9,144,687 |  |   | 8,430,718 |  |
|                                                                                                              |   |   |   |   |   |   |
|        Treasury stock                                                                                      |   |   |   |   |   |   |
|           Balance at the beginning of the year                                               |   | (16,893 | ) |   | (16,793 | ) |   | (16,793 | ) |
|           Changes during the year                                                            |   |   |   |   |   |   |
|             Total changes during the year              |   | — |  |   | (100 | ) |   | — |  |
|           Balance at the end of the year                                                     |   | (16,893 | ) |   | (16,893 | ) |   | (16,793 | ) |

----

|                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                         |   | (Not covered by Auditors' report) |   | (Not covered by Auditors' Report) |   |   |
|                                                                                                                                                         |   | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
|        Total shareholders' equity                                                                                                                     |   |   |   |   |   |   |
|          Balance at the beginning of the year                                                                                           |   | ¥ | 10,104,159 |  |   | ¥ | 9,390,290 |  |   | ¥ | 8,461,142 |  |
|          Changes during the year                                                                                                        |   |   |   |   |   |   |
|              Dividends                                                                                                 |   | (770,879 | ) |   | (819,061 | ) |   | (722,702 | ) |
|              Net income                                                                                           |   | 1,578,458 |  |   | 1,533,030 |  |   | 1,651,850 |  |
|                      Acquisiotion of treasury stock |   | — |  |   | (100 | ) |   | — |  |
|      Total changes during the year                                                                                        |   | 807,579 |  |   | 713,869 |  |   | 929,148 |  |
|         Balance at the end of the year                                                                                                  |   | 10,911,738 |  |   | 10,104,159 |  |   | 9,390,290 |  |
|                                                                                                                                                         |   |   |   |   |   |   |
| Valuation and translation adjustments                                                                                                                        |   |   |   |   |   |   |
|                                                                                                                                                         |   |   |   |   |   |   |
|        Net unrealized gains(losses) on available-for-sale securities, net of tax                                                                      |   |   |   |   |
|          Balance at the beginning of the year                                                                                           |   | (835 | ) |   | 1,144 |  |   | (229 | ) |
|          Changes during the year                                                                                                        |   |   |   |   |   |   |
|           Net changes of items other than shareholders' equity                                              |   | 2,961 |  |   | (1,979 | ) |   | 1,373 |  |
|      Total changes during the year                                                                                        |   | 2,961 |  |   | (1,979 | ) |   | 1,373 |  |
|          Balance at the end of the year                                                                                                 |   | 2,126 |  |   | (835 | ) |   | 1,144 |  |
|                                                                                                                                                         |   |   |   |   |   |   |
|        Deferred gains or losses on hedges                                                                                                             |   |   |   |   |   |   |
|          Balance at the beginning of the year                                                                                           |   | (11,117 | ) |   | (30,559 | ) |   | (5,376 | ) |
|          Changes during the year                                                                                                        |   |   |   |   |   |   |
|           Net changes of items other than shareholders' equity                                              |   | 26,656 |  |   | 19,442 |  |   | (25,183 | ) |
|       Total changes during the year                                                                                       |   | 26,656 |  |   | 19,442 |  |   | (25,183 | ) |
|          Balance at the end of the year                                                                                                 |   | 15,539 |  |   | (11,117 | ) |   | (30,559 | ) |
|                                                                                                                                                         |   |   |   |   |   |   |
|       Total valuation and translation adjustments                                                                                                     |   |   |   |   |   |   |
|         Balance at the beginning of the year                                                                   |   | (11,952 | ) |   | (29,415 | ) |   | (5,605 | ) |
|         Changes during the year                                                                                                         |   |   |   |   |   |   |
|          Net changes of items other than shareholders' equity                                               |   | 29,617 |  |   | 17,463 |  |   | (23,810 | ) |
|      Total changes during the year                                                                                        |   | 29,617 |  |   | 17,463 |  |   | (23,810 | ) |
|         Balance at the end of the year                                                                                                  |   | 17,665 |  |   | (11,952 | ) |   | (29,415 | ) |
|                                                                                                                                                         |   |   |   |   |   |   |
|  Total net asset                                                                                                                                      |   |   |   |   |   |   |
|    Balance at the beginning of the year                                                                                                 |   | 10,092,207 |  |   | 9,360,875 |  |   | 8,455,537 |  |
|    Changes during the year                                                                                                              |   |   |   |   |   |   |
|      Dividends                                                                                                            |   | (770,879 | ) |   | (819,061 | ) |   | (722,702 | ) |
|      Net income                                                                                                           |   | 1,578,458 |  |   | 1,533,030 |  |   | 1,651,850 |  |
|      Acquisition of Treasury stock                                                                                        |   | — |  |   | (100 | ) |   | — |  |
|        Net changes of items other than shareholders' equity                                                 |   | 29,617 |  |   | 17,463 |  |   | (23,810 | ) |
|      Total changes during the year                                                                                        |   | 837,196 |  |   | 731,332 |  |   | 905,338 |  |
|    Balance at the end of the year                                                                                                       |   | ¥ | 10,929,403 |  |   | ¥ | 10,092,207 |  |   | ¥ | 9,360,875 |  |
|                                                                                                                                                         |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                             |   |   |   |   | Fiscal year ended |
|                                                                                                                                                                                                                                                             |   |   |   |   | (Not covered by Auditors' Report) |   | (Not covered by Auditors' Report) |   |   |
|                                                                                                                                                                                                                                                             |   |   |   |   | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Cash flows from operating activities                                                                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                             | Income before income taxes |   | ¥ | 2,834,991 |  |   | ¥ | 2,729,719 |  |   | ¥ | 2,947,608 |  |
|                                                                                                                                                                                                                                                             | Adjustments to reconcile income before income taxes to net cash provided by operating activities: |   |   |   |   |
|                                                                                                                                                                                                                                                             |   | Depreciation and amortization |   | 1,019,615 |  |   | 997,717 |  |   | 953,594 |  |
|                                                                                                                                                                                                                                                             |   | Gain on sales of other fixed assets |   | (12,760 | ) |   | (1,846 | ) |   | (1,154 | ) |
|                                                                                                                                                                                                                                                             |   | Insurance income |   | — |  |   | (15,313 | ) |   | — |  |
|                                                                                                                                                                                                                                                             |   | Loss on sales of fixed assets |   | 10,545 |  |   | — |  |   | — |  |
|                                                                                                                                                                                                                                                             |   | Compensation on lease termination |   | — |  |   | — |  |   | (20,029 | ) |
|                                                                                                                                                                                                                                                             |   | Refund of consumption taxes |   | — |  |   | — |  |   | (4,203 | ) |
|                                                                                                                                                                                                                                                             |   | Loss on disposals of other fixed assets |   | 22,317 |  |   | 21,086 |  |   | 24,137 |  |
|                                                                                                                                                                                                                                                             |   | Loss on disposals of inventories |   | 12,050 |  |   | — |  |   | — |  |
|                                                                                                                                                                                                                                                             |   | Loss on adjustment for changes of accounting standard for asset retirement obligations |   | — |  |   | 26,010 |  |   | — |  |
|                                                                                                                                                                                                                                                             |   | Loss on disaster |   | — |  |   | 222,270 |  |   | — |  |
|                                                                                                                                                                                                                                                             |   | Gain on sales of fixed assets |   | (71,046 | ) |   | (51,983 | ) |   | (45,342 | ) |
|                                                                                                                                                                                                                                                             |   | Gain on unused gift card |   | (39,394 | ) |   | (22,356 | ) |   | (15,208 | ) |
|                                                                                                                                                                                                                                                             |   | Loss on disposals of fixed assets |   | 23,122 |  |   | 21,467 |  |   | 20,710 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in allowance for doubtful accounts |   | (12,644 | ) |   | (4,031 | ) |   | (5,651 | ) |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in provision for bonuses |   | (2,868 | ) |   | (1,779 | ) |   | 4,183 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in provision for retirement benefits |   | 20,056 |  |   | 10,904 |  |   | 12,508 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in provision for directors' retirement benefits |   | 12,000 |  |   | 11,400 |  |   | 10,100 |  |
|                                                                                                                                                                                                                                                             |   | Interest income |   | (600 | ) |   | (800 | ) |   | (1,081 | ) |
|                                                                                                                                                                                                                                                             |   | Decrease (increase) in accounts receivable-trade |   | (16,419 | ) |   | (298,184 | ) |   | (363,244 | ) |
|                                                                                                                                                                                                                                                             |   | Decrease (increase) in other receivables |   | 13,870 |  |   | (119,166 | ) |   | 11,537 |  |
|                                                                                                                                                                                                                                                             |   | Decrease (increase) in inventories |   | 51,033 |  |   | (238,074 | ) |   | (242,658 | ) |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in accounts payable-trade |   | (149,544 | ) |   | 35,128 |  |   | 617 |  |
|                                                                                                                                                                                                                                                             |   | Decrease (increase) in advance payments |   | (9,861 | ) |   | 45,115 |  |   | 48,291 |  |
|                                                                                                                                                                                                                                                             |   | Decrease (increase) in prepaid expenses |   | (12,246 | ) |   | (51,987 | ) |   | (13,206 | ) |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in accounts payable |   | 95 |  |   | 47,540 |  |   | 132,622 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in gift card liability |   | 98,970 |  |   | 245,239 |  |   | 39,991 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in provision for directors' bonuses |   | (6,000 | ) |   | — |  |   | 3,000 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in deposits received |   | 20,053 |  |   | (33,784 | ) |   | 46,099 |  |
|                                                                                                                                                                                                                                                             |   | Increase (decrease) in accrued consumption taxes |   | 10,104 |  |   | (4,208 | ) |   | (38,366 | ) |
|                                                                                                                                                                                                                                                             |   | Other |   | (9,909 | ) |   | 37,643 |  |   | 60,860 |  |
|                                                                                                                                                                                                                                                             |   |   | Subtotal |   | 3,805,530 |  |   | 3,607,727 |  |   | 3,565,715 |  |
|                                                                                                                                                                                                                                                             |   | Interest and dividends income |   | 872 |  |   | 1,032 |  |   | 1,289 |  |
|                                                                                                                                                                                                                                                             |   | Proceeds from insurance |   | — |  |   | 15,313 |  |   | — |  |
|                                                                                                                                                                                                                                                             |   | Proceeds from compensation on lease termination |   | — |  |   | — |  |   | 20,029 |  |
|                                                                                                                                                                                                                                                             |   | Payments relating to disaster |   | — |  |   | (134,775 | ) |   | — |  |
|                                                                                                                                                                                                                                                             |   | Income taxes paid |   | (1,162,273 | ) |   | (1,428,885 | ) |   | (1,159,831 | ) |
|                                                                                                                                                                                                                                                             |   |   |                    Net cash provided by operating activities |   | 2,644,129 |  |   | 2,060,412 |  |   | 2,427,202 |  |
|                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                             | Payments for investments in securities |   | (2,646 | ) |   | (2,612 | ) |   | (2,590 | ) |
|                                                                                                                                                                                                                                                             | Payments for tangible fixed assets |   | (698,530 | ) |   | (1,413,831 | ) |   | (626,402 | ) |
|                                                                                                                                                                                                                                                             | Proceeds from sales of tangible fixed assets |   | 26,798 |  |   | 3,000 |  |   | 16,777 |  |
|                                                                                                                                                                                                                                                             | Payments for intangible fixed assets |   | (40,081 | ) |   | (79,748 | ) |   | (29,269 | ) |
|                                                                                                                                                                                                                                                             | Payments for long-term prepaid expenses |   | (409,387 | ) |   | (384,231 | ) |   | (370,929 | ) |
|                                                                                                                                                                                                                                                             | Payments for lease deposits |   | (163,705 | ) |   | (167,866 | ) |   | (200,990 | ) |
|                                                                                                                                                                                                                                                             | Proceeds from lease deposits |   | 45,316 |  |   | 19,704 |  |   | 31,273 |  |
|                                                                                                                                                                                                                                                             | Proceeds from loans receivable |   | — |  |   | 12,138 |  |   | 9,889 |  |
|                                                                                                                                                                                                                                                             | Proceeds from long-term deposits |   | 54,492 |  |   | 111,821 |  |   | 135,713 |  |
|                                                                                                                                                                                                                                                             | Other |   | (35,258 | ) |   | (13,381 | ) |   | (9,670 | ) |
|                                                                                                                                                                                                                                                             |   |   |                    Net cash used in investing activities |   | (1,223,001 | ) |   | (1,915,006 | ) |   | (1,046,198 | ) |
|                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                             | Payments for acqusition of treasury stock |   | — |  |   | (100 | ) |   | — |  |
|                                                                                                                                                                                                                                                             | Cash dividends paid |   | (770,545 | ) |   | (818,558 | ) |   | (701,264 | ) |
|                                                                                                                                                                                                                                                             |   |   |                   Net cash used in financing activities |   | (770,545 | ) |   | (818,658 | ) |   | (701,264 | ) |
|                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
|                                   Net (decrease) increase in cash and cash equivalents |   | 650,583 |  |   | (673,252 | ) |   | 679,740 |  |
| Cash and cash equivalents, beginning of year                                                                                                                                                                                                                     |   | 3,239,687 |  |   | 3,912,939 |  |   | 3,233,199 |  |
| Cash and cash equivalents, end of year                                                                                                                                                                                                                           |   | ¥ | 3,890,270 |  |   | ¥ | 3,239,687 |  |   | ¥ | 3,912,939 |  |
|                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |

----

|     |                                          |
|-----|------------------------------------------|
| (1) | Organization and Description of Business |

|     |                                            |
|-----|--------------------------------------------|
| (2) | Summary of Significant Accounting Policies |

|     |                                                  |
|-----|--------------------------------------------------|
| (a) |  Financial Statements Basis and Presentation |

|     |                           |
|-----|---------------------------|
| (b) | Cash and Cash Equivalents |

|     |             |
|-----|-------------|
| (c) | Inventories |

|     |                       |
|-----|-----------------------|
| (d) | Tangible Fixed Assets |

|                              |
|------------------------------|
|                              |  |
| Buildings                    | 15 - 35 years |
| Machinery and equipment      | 9 years |
| Store leasehold improvements | 6 - 10 years |

|     |               |
|-----|---------------|
| (e) | Leased Assets |

|     |                           |
|-----|---------------------------|
| (f) | Software for Internal Use |

|     |                            |
|-----|----------------------------|
| (g) | Long-term Prepaid Expenses |

----

|     |                       |
|-----|-----------------------|
| (h) | Investment Securities |

|    |                                          |
|----|------------------------------------------|
| i) | Marketable available-for-sale securities |

|     |                                              |
|-----|----------------------------------------------|
| ii) | Non-marketable available-for-sale securities |

|     |                        |
|-----|------------------------|
| (i) | Derivatives and hedges |

|     |                                 |
|-----|---------------------------------|
| (j) | Allowance for Doubtful Accounts |

|     |                          |
|-----|--------------------------|
| (k) | Employees’ Bonuses |

|     |                          |
|-----|--------------------------|
| (l) | Directors’ Bonuses |

|     |                                      |
|-----|--------------------------------------|
| (m) | Employees’ Retirement Benefits |

|     |                                      |
|-----|--------------------------------------|
| (n) | Directors’ Retirement Benefits |

|     |                   |
|-----|-------------------|
| (o) | Consumption Taxes |

|     |                              |
|-----|------------------------------|
| (p) | Asset retirement obligations |

----

|     |                         |
|-----|-------------------------|
| (3) | Changes in Presentation |

|     |                     |
|-----|---------------------|
| (a) | Statement of Income |

|     |                          |
|-----|--------------------------|
| (b) | Statements of Cash Flows |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |
|                                | December 31, 2011 | December 31, 2010 |
| Gain on sales of other fixed assets | ¥ | (1,846 | ) | (1,154 | ) |
| Gain on sales of fixed assets       | (51,983 | ) | (45,342 | ) |
| Gain on unused gift card            | (22,356 | ) | (15,208 | ) |
| Other                               | 37,643 |  | 60,860 |  |
|                                | ¥ | (38,542 | ) | (844) |  |

|     |                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Adoption of new accounting standard (Accounting Standard and Implementation Guidance on Correction of Accounting Changes and Error Corrections) |

|     |                                          |
|-----|------------------------------------------|
| (5) | New Accounting Standards not yet applied |

|     |         |
|-----|---------|
| (a) | Summary |

|     |                 |
|-----|-----------------|
| (b) | Effective dates |

|     |                                                |
|-----|------------------------------------------------|
| (c) | The impact of adopting the accounting standard |

----

|     |                             |
|-----|-----------------------------|
| (6) | Financial instruments   |

|     |                                                  |
|-----|--------------------------------------------------|
| (a) | Company’s Policy for Financial Instruments |

|     |                                                                                   |
|-----|-----------------------------------------------------------------------------------|
| (b) | Nature and Extent of Risks Arising from Financial Instruments and Risk Management |

|     |                                                                 |
|-----|-----------------------------------------------------------------|
| (c) | Supplemental Information on Fair Value of Financial Instruments |

|     |                                     |
|-----|-------------------------------------|
| (d) | Fair Value of Financial Instruments |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
|                                          |   | Thousands of Yen |
|                                          |   | December 31, 2012 |
|                                          |   | Carrying Amount |   | Fair Value |   | Unrealized Gain (Loss) |
| Assets:                                       |   |   |   |   |   |   |
| (1) Cash and cash equivalent                  |   | ¥ | 3,890,270 |  |   | 3,890,270 |   | - |
| (2) Accounts receivable-trade                 |   | 3,062,349 |  |   |   |   |   |
| Less: Allowance for doubtful accounts         |   | (14,338) |  |   |   |   |   |
|                                          |   | 3,048,011 |  |   | 3,048,011 |   | - |
|                                          |   |   |   |   |   |   |
| (3) Investment securities                     |   | 32,304 |  |   | 32,304 |   | - |
| (4) Lease deposits                            |   | 1,829,612 |  |   | 1,710,648 |   | (118,964) |
| Total                                         |   | ¥ | 8,800,197 |  |   | 8,681,233 |   | (118,964) |
|                                          |   |   |   |   |   |   |
| Liabilities:                                  |   |   |   |   |   |   |
| (1) Accounts payable-trade                    |   | ¥ | (380,344 | ) |   | (380,344) |   | - |
| (2) Accounts payable-other                    |   | (1,216,802 | ) |   | (1,216,802) |   | - |
| (3) Provision for income taxes                |   | (665,274 | ) |   | (665,274) |   | - |
| (4) Deposits received                         |   | (126,062 | ) |   | (126,062) |   | - |
| (5) Long-term deposits received               |   | (1,069,534 | ) |   | (1,018,087) |   |  51,447 |
| Total                                         |   | ¥ | (3,458,016 | ) |   | (3,406,569) |   |  51,447 |
|                                          |   |   |   |   |   |   |
| Derivative instruments under hedge accounting |   | ¥ | 25,066 |  |   | 25,066 |   | - |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |
|                                          |   | Thousands of Yen |
|                                          |   | December 31, 2011 |
|                                          |   | Carrying Amount |   | Fair Value |   | Unrealized Gain (Loss) |
| Assets:                                       |   |   |   |   |   |   |
| (1) Cash and cash equivalent                  |   | ¥ | 3,239,687 |  |   | 3,239,687 |   | - |
| (2) Accounts receivable-trade                 |   | 3,045,929 |  |   |   |   |   |
| Less: Allowance for doubtful accounts         |   | (10,304) |  |   |   |   |   |
|                                          |   | 3,035,625 |  |   | 3,035,625 |   | - |
|                                          |   |   |   |   |   |   |
| (3) Investment securities                     |   | 24,949 |  |   | 24,949 |   | - |
| (4) Lease deposits                            |   | 1,791,954 |  |   | 1,640,553 |   | (151,401) |
| Total                                         |   | ¥ | 8,092,217 |  |   | 7,940,815 |   | (151,401) |
|                                          |   |   |   |   |   |   |
| Liabilities:                                  |   |   |   |   |   |   |
| (1) Accounts payable-trade                    |   | ¥ | (529,888 | ) |   | (529,888) |   | - |
| (2) Accounts payable-other                    |   | (1,210,192) |  |   | (1,210,192) |   | - |
| (3) Provision for income taxes                |   | (566,660) |  |   | (566,660) |   | - |
| (4) Deposits received                         |   | (106,009) |  |   | (106,009) |   | - |
| (5) Long-term deposits received               |   | (1,060,983) |  |   | (985,838) |   |  75,145 |
| Total                                         |   | ¥ | (3,473,733 | ) |   | (3,398,588) |   |  75,145 |
|                                          |   |   |   |   |   |   |
| Derivative instruments under hedge accounting |   | ¥ | (18,747 | ) |   | (18,747) |   | - |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Thousands of Yen |
|                                                           | December 31, 2012 |
|                                                           | Contract Amount |   | Contract Amount due after one year |   | Fair Value |
| Foreign exchange forward contracts – to buy U.S. dollars | ¥ | 524,571 |  |   | - |   | 25,066 |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Thousands of Yen |
|                                                           | December 31, 2011 |
|                                                           | Contract Amount |   | Contract Amount due after one year |   | Fair Value |
| Foreign exchange forward contracts – to buy U.S. dollars | ¥ | 483,264 |  |   | - |   | (18,747) |

|     |                       |
|-----|-----------------------|
| (7) | Investment Securities |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |
|                                                             |   |   | Thousands of Yen |
|                                                             |   |   | Carrying Amount |   | Acquisition Cost |   | Unrealized Gain(Loss) |
| Securities with carrying amounts in excess of  acquisition costs | Equity securities |   | ¥ | 17,792 |  |   | 14,158 |   | 3,633 |
|                                                             | Other securities |   | ― |  |   | ― |   | ― |
|                                                             | Subtotal |   | 17,792 |  |   | 14,158 |   | 3,633 |
| Securities with carrying amounts below acquisition costs         | Equity securities |   | 14,512 |  |   | 14,842 |   | (330) |
|                                                             | Other securities |   | ― |  |   | ― |   | ― |
|                                                             | Subtotal |   | 14,512 |  |   | 14,842 |   | (330) |
|                                                             | Total |   | ¥ | 32,304 |  |   | 29,001 |   | 3,303 |

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |
|                                                             |   |   | Thousands of Yen |
|                                                             |   |   | Carrying Amount |   | Acquisition Cost |   | Unrealized Gain(Loss) |
| Securities with carrying amounts in excess of  acquisition costs | Equity securities |   | ¥ | 15,419 |  |   | 13,438 |   | 1,981 |
|                                                             | Other securities |   | ― |  |   | ― |   | ― |
|                                                             | Subtotal |   | 15,419 |  |   | 13,438 |   | 1,981 |
| Securities with carrying amounts below acquisition costs         | Equity securities |   | 9,530 |  |   | 12,917 |   | (3,387) |
|                                                             | Other securities |   | ― |  |   | ― |   | ― |
|                                                             | Subtotal |   | 9,530 |  |   | 12,917 |   | (3,387) |
|                                                             | Total |   | ¥ | 24,949 |  |   | 26,355 |   | (1,406) |

|     |        |
|-----|--------|
| (8) | Leases |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | Thousands of Yen |
|                                      | December 31, 2012 |   | December 31, 2011 |
|                                      | Acquisition cost |   | Accumulated depreciation |   | Balance atend of year |   | Acquisition cost |   | Accumulated depreciation |   | Balance at end of year |
| Vehicles, transportation equipment | ¥ | — |  |   | ― |   | ― |   | 14,858 |   | 13,509 |   | 1,348 |
| Tools, furniture and fixtures             | 12,305 |  |   | 8,156 |   | 4,148 |   | 13,143 |   | 6,952 |   | 6,191 |
| Total                                     | ¥ | 12,305 |  |   | 8,156 |   | 4,148 |   | 28,001 |   | 20,461 |   | 7,539 |

|                     |
|---------------------|
|                     |  |  |  |  |  |  |
|                |   | Thousands of Yen |
|                |   | December 31,2012 |   | December 31, 2011 |
| Due within one year |   | ¥ | 1,697 |  |   | 3,465 |
| Due after one year  |   | 2,837 |  |   | 4,596 |
| Total               |   | ¥ | 4,535 |  |   | 8,061 |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |
|                      | Thousands of Yen |
|                      | Fiscal year ended |
|                      | December 31,  2012 |   | December 31,2011 |   | December 31, 2010 |
| Lease payments            | ¥ | 3,671 |  |   | 11,646 |  |   | 25,865 |  |
| Depreciation expense (*1) | 3,307 |  |   | 10,849 |  |   | 23,824 |  |
| Interest expense (*2)     | 238 |  |   | 475 |  |   | 1,154 |  |

----

|     |                                      |
|-----|--------------------------------------|
| (9) | Employees’ Retirement Benefits |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |
|                                 | Thousands of Yen |
|                                 | December 31, 2012 |   | December 31, 2011 |
| Retirement benefit obligations       | ¥ | (649,466 | ) |   | (589,206) |
| Fair value of plan assets            | 486,397 |  |   | 446,194 |
| Employees’ retirement benefits | ¥ | (163,069 | ) |   | (143,012) |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |
|                          | Millions of Yen |
|                          | March 31, 2012 |   | March 31, 2011 |   | March 31,2010 |
| Plan assets                   | ¥ | 119,690 |  |   | 114,044 |   | 112,959 |
| Estimated benefit obligations | 135,478 |  |   | 127,953 |   | 123,946 |
| Fund status                   | (15,788) |  |   | (13,909) |   | (10,987) |

|      |               |
|------|---------------|
| (10) | Stock Options |

----

|      |                 |
|------|-----------------|
| (11) | Production Cost |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |
|                                  | Thousands of Yen |
|                                  | Fiscal 2012 |   | Fiscal 2011 |   | Fiscal 2010 |
|   Cost of raw materials        | ¥ | 6,845,873 |  |   | 6,725,618 |  |   | 6,212,453 |  |
|   Labor cost                   | 403,039 |  |   | 396,959 |  |   | 418,249 |  |
|   Other production costs       | 626,942 |  |   | 570,718 |  |   | 376,245 |  |
| Total production cost during the year | ¥ | 7,875,854 |  |   | 7,693,295 |  |   | 7,006,948 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |
| Breakdown of other production cost    |   |   |   |   |   |
|                                  | Thousands of Yen |
|                                  | Fiscal 2012 |   | Fiscal 2011 |   | Fiscal 2010 |
| Outsourcing cost                      | ¥ | 216,356 |  |   | 170,429 |  |   | 34,192 |  |
| Depreciation                          | 66,056 |  |   | 57,170 |  |   | 49,416 |  |
| Transportation                        | 64,191 |  |   | 53,467 |  |   | 38,468 |  |
| Factory supplies cost                 | 50,219 |  |   | 51,829 |  |   | 54,591 |  |
| Machinery maintenance and repair cost | 48,122 |  |   | 60,798 |  |   | 46,160 |  |
| Other                                 | 181,996 |  |   | 177,023 |  |   | 153,416 |  |
| Total                                 | ¥ | 626,942 |  |   | 570,718 |  |   | 376,245 |  |

|      |                           |
|------|---------------------------|
| (12) | Transfer to Other Account |

|      |                         |
|------|-------------------------|
| (13) | Cost of Store Equipment |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
|                                           | Thousands of Yen |
|                                           | Fiscal year ended |
|                                           | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Depreciation                                   | ¥ | 291,523 |  |   | 256,896 |  |   | 212,720 |  |
| Maintenance and repair cost of store equipment | 100,757 |  |   | 101,882 |  |   | 108,371 |  |
| Supplies                                       | 28,811 |  |   | 35,881 |  |   | 31,646 |  |
| Rental expense                                 | 21,802 |  |   | 27,445 |  |   | 27,337 |  |
| Taxes and dues                                 | 17,215 |  |   | 14,985 |  |   | 13,950 |  |
| Storage charges                                | 15,252 |  |   | 16,457 |  |   | 18,703 |  |

----

|      |                                           |
|------|-------------------------------------------|
| (14) | Gain on Sales of Other Fixed Assets   |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |
|                                                                                    | Thousands of Yen |
|                                                                                    | For the year ended |
|                                                                                    | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Gain on disposals of store equipment arising from store closing and related restoration | ¥ | — |  |   | 1,846 |  |   | 1,154 |  |
| Gain on sales of store equipment                                                        | 12,760 |  |   | ― |  |   | ― |  |
| Total                                                                                   | ¥ | 12,760 |  |   | 1,846 |  |   | 1,154 |  |

|      |                               |
|------|-------------------------------|
| (15) | Loss on Sales of Fixed Assets |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |
|                                                                                | Thousands of Yen |
|                                                                                | For the year ended |
|                                                                                | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Loss on sales of store equipment arising from store closing and related restoration | ¥ | 10,545 |  |   | ― |   | ― |
| Total                                                                               | ¥ | 10,545 |  |   | ― |   | ― |

|      |                                  |
|------|----------------------------------|
| (16) | Loss on Disposal of Fixed Assets |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Thousands of Yen |
|                                                                                    | For the year ended |
|                                                                                    | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Loss on disposals of store equipment arising from store closing and related restoration | ¥ | 19,895 |  |   | 18,067 |   | 23,814 |
| Loss on disposals of factory equipment                                                  | 2,422 |  |   | 3,019 |   | 323 |
| Total                                                                                   | ¥ | 22,317 |  |   | 21,086 |   | 24,137 |

|      |                          |
|------|--------------------------|
| (17) | Loss on Natural Disaster |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |
|                                              |   | (Thousands of Yen) |
|                                              |   | For the year ended December 31, 2011 |
| Donations                                         |   | ¥ | 110,083 |  |
| Relief money to franchisees that suffered damages |   | 52,800 |  |
| Inventories write off                             |   | 37,504 |  |
| Provision for natural disasters                   |   | 1,677 |  |
| Plant and equipment repairment cost               |   | 19,700 |  |
| Other                                             |   | 2,182 |  |
| Total                                             |   | ¥ | 223,948 |  |

----

|      |              |
|------|--------------|
| (18) | Income Taxes |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   |   | Thousands of Yen |
|                                                   |   | December 31, 2012 |   | December 31, 2011 |
|                                                   |   | Deferred tax assets |   | Deferred tax liabilities |   | Deferred tax assets |   | Deferred tax liabilities |
| Employees’ retirement benefits                   |   | ¥ | 58,951 |  |   | ― |  |   | 52,215 |  |   | ― |  |
| Accrued enterprise tax                                 |   | 48,503 |  |   | ― |  |   | 44,991 |  |   | ― |  |
| Asset retirement obligations                           |   | 30,732 |  |   | (16,285 | ) |   | 26,657 |  |   | (14,646 | ) |
| Directors’ retirement benefits                   |   | 27,585 |  |   | ― |  |   | 23,308 |  |   | ― |  |
| Allowance for doubtful accounts                        |   | 26,968 |  |   | ― |  |   | 30,731 |  |   | ― |  |
| Accrued employees’ bonuses                       |   | 23,022 |  |   |   |   | 25,231 |  |   | ― |  |
| Impairment loss on investment property                 |   | 8,526 |  |   | ― |  |   | 9,737 |  |   | ― |  |
| Deferred loss (gain) on hedges                         |   | ― |  |   | (9,527 | ) |   | 7,630 |  |   | ― |  |
| Inventory write-down                                   |   | 6,665 |  |   | ― |  |   | 10,080 |  |   | ― |  |
| Amortization of long-term prepaid expenses             |   | 1,323 |  |   | ― |  |   | 3,712 |  |   | ― |  |
| Unrealized loss (gain) onavailable-for-sale securities |   | ― |  |   | (1,177 | ) |   | 572 |  |   | ― |  |
| Other                                                  |   | 8,200 |  |   | ― |  |   | 6,492 |  |   | ― |  |
| Total                                                  |   | ¥ | 240,480 |  |   | (26,990 | ) |   | 241,356 |  |   | (14,646 | ) |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |
|                                                    | Fiscal year ended |
|                                                    | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Japanese statutory income tax rate                      | 40.7% |   | 40.7% |   | 40.7% |
| Permanent differences, including entertainment expenses | 3.5 |   | 3.2 |   | 3.2 |
| Effect of the decrease of statutory income tax rate     | 0.4 |   | 0.5 |   | ― |
| Corporate inhabitant tax                                | 0.1 |   | 0.1 |   | 0.1 |
| Other                                                   | (0.3) |   | (0.8) |   | (0.1) |
| Effective income tax rate                               | 44.3% |   | 43.8% |   | 44.0% |

|                                           |
|-------------------------------------------|
|                                           |  |
| Before December 31, 2012                  | 40.7% |
| From January 1, 2013 to December 31, 2015 | 38.0% |
| On and after January 1, 2016              | 35.6% |

----

|      |                             |
|------|-----------------------------|
| (19) | Changes in Net Assets   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |
|                                  |   | Common Stock |
|                                  |   | Shares issued |   | Treasury Stock |
| Number of shares at December 31, 2010 |   | 9,644,554 |   | 8,524 |
| Increase in shares during the year    |   | ― |   | 37 |
| Decrease in shares during the year    |   | ― |   | ― |
| Number of shares at December 31, 2011 |   | 9,644,554 |   | 8,561 |
| Increase in shares during the year    |   | ― |   | ― |
| Decrease in shares during the year    |   | ― |   | ― |
| Number of shares at December 31, 2012 |   | 9,644,554 |   | 8,561 |

|      |                       |
|------|-----------------------|
| (20) | Per Share Information |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |
|                     |   | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Net book value per share |  | ¥ | 1,134.23 |  |   | 1,047.34 |   | 971.45 |

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |  |
|                 |   | Fiscal year ended |
|                 |   | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Net income per share |   | ¥ | 163.81 |  |   | 159.09 |   | 171.42 |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |
|                                                          |   | Fiscal year ended |
|                                                          |   | December 31, 2012 |   | December 31, 2011 |   | December 31, 2010 |
| Net income per share                                          |   |   |   |   |   |   |
| Net income (in thousands)                                     |   | ¥ | 1,578,458 |  |   | 1,533,030 |  |   | 1,651,850 |  |
| Amount not attributable to common shareholders (in thousands) |   | ― |  |   | ― |  |   | ― |  |
| Net income attributable to common stock (in thousands)        |   | 1,578,458 |  |   | 1,533,030 |  |   | 1,651,850 |  |
| Average number of shares                                      |   | 9,635,993 |  |   | 9,636,005 |  |   | 9,636,030 |  |

|      |                                                                                |
|------|--------------------------------------------------------------------------------|
| (21) | Summary of Certain Significant Differences between Japanese GAAP and U.S. GAAP |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |
|                                |   |   | Thousands of Yen |
|                                | Note |   | December 31, 2012 |   | December 31, 2011 |
| Net income under Japanese GAAP      |   |  | ¥ | 1,578,458 |  |   | 1,533,030 |  |
| U.S. GAAP adjustments:              |   |   |   |   |   |
| Asset retirement obligations        | a |   | (51,115 | ) |   | (42,653 | ) |
| Capitalized lease assets            | c |   | 135 |  |   | 564 |  |
| Compensated absence                 | b |   | (4,100 | ) |   | 400 |  |
| Lease obligation                    | c |   | 11,210 |  |   | (964 | ) |
| Employees’ retirement benefit | d |   | (23,432 | ) |   | (4,966 | ) |
| Hedge accounting                    | e |   | 26,655 |  |   | 19,442 |  |
| Tax effect on adjustments           | f |   | 22,960 |  |   | 8,491 |  |
| Net income under U.S. GAAP          |   |   | ¥ | 1,560,771 |  |   | 1,513,344 |  |

|                                                                                            |
|--------------------------------------------------------------------------------------------|
|                                                                                            |  |  |  |  |  |  |  |
|                                                                                       |   | December 31, 2012 |   | December 31, 2011 |
| Net income attributable to the Company’s common shareholders – basic undiluted |   | ¥ | 161.97 |  |   | 157.05 |  |
| Weighted average shares outstanding – basic undiluted                                |   | 9,635,993 |  |   | 9,636,005 |  |

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                |   | Thousands of Yen |
|                                                                |   | December 31, 2012 |   | December 31, 2011 |
| Net income under U.S. GAAP                                          |   | ¥ | 1,560,771 |  |   | 1,513,344 |  |
| Other comprehensive income, net of tax:                             |   |   |   |   |
| Unrealized (loss) gain on available for sale securities, net of tax |   | 2,958 |  |   | (1,977 | ) |
| Comprehensive income under U.S. GAAP                                |   | ¥ | 1,563,729 |  |   | 1,511,367 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |
|                                |   |   | Thousands of Yen |
|                                | Note |   | December 31, 2012 |   | December 31, 2011 |
| Equity under Japanese GAAP          |   |   | ¥ | 10,929,403 |  |   | 10,092,207 |  |
| U.S. GAAP adjustments:              |   |   |   |   |   |
| Asset retirement obligations        | a |   | (572,573 | ) |   | (521,458 | ) |
| Capitalized lease assets            | c |   | (386 | ) |   | (521 | ) |
| Compensated absence                 | b |   | (27,900 | ) |   | (23,800 | ) |
| Lease obligation                    | c |   | 243,890 |  |   | 232,680 |  |
| Employees’ retirement benefit | d |   | 48,155 |  |   | 71,588 |  |
| Hedge accounting                    | e |   | — |  |   | — |  |
| Other                               |   |   | (17,065 | ) |   | (17,065 | ) |
| Tax effect on adjustments           | f |   | 117,311 |  |   | 94,351 |  |
| Equity under U.S. GAAP              |   |   | ¥ | 10,720,835 |  |   | 9,927,982 |  |

----

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |
|                         | Thousands of Yen |
|                         | JGAAP |   | US GAAP |
|                         | 2012 |   | 2011 |   | 2012 |   | 2011 |
| Current assets               | ¥ | 8,401,007 |  |   | 7,768,603 |   | 8,401,007 |   | 7,768,603 |
| Non-current assets           | 7,145,919 |  |   | 6,832,074 |   | 9,123,130 |   | 8,820,532 |
| Total Assets                 | ¥ | 15,546,926 |  |   | 14,600,677 |   | 17,524,137 |   | 16,589,135 |
| Current liabilities          | ¥ | (3,179,741 | ) |   | (3,127,567) |   | (3,207,641) |   | (3,151,367) |
| Non-current liabilities      | (1,437,782) |  |   | (1,380,903) |   | (3,595,661) |   | (3,509,786) |
| Total equity                 | (10,929,403) |  |   | (10,092,207) |   | (10,720,835) |   | (9,927,982) |
| Total liabilities and equity | ¥ | (15,546,926 | ) |   | (14,600,677) |   | (17,524,137) |   | (16,589,135) |

|     |                              |
|-----|------------------------------|
| (a) | Asset retirement obligations |

----

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |
|                                                                    |   | Thousands of Yen |
|                                                                    |   | December 31, 2012 |   | December 31, 2011 |
| i)  Asset retirement obligation                                  |   |   |   |   |
| Balance at under Japanese GAAP                                          |   | ¥ | (85,406 | ) |   | (73,261 | ) |
| U.S. GAAP adjustments:                                                  |   |   |   |   |
| Beginning balance adjustments                                           |   | (828,378 | ) |   | (836,339 | ) |
| Adjustments for the year                                                |   | (19,433 | ) |   | 7,961 |  |
| Total U.S. GAAP adjustments                                             |   | (847,811 | ) |   | (828,378 | ) |
| Balance at under U.S. GAAP                                              |   | ¥ | (933,217 | ) |   | (901,639 | ) |
|                                                                    |   |   |   |   |
| ii)  Asset retirement costs capitalized in tangible fixed assets |   |   |   |   |
| Balance at under Japanese GAAP                                          |   | ¥ | 45,547 |  |   | 40,849 |  |
| U.S. GAAP adjustments:                                                  |   |   |   |   |
| Beginning balance adjustments                                           |   | 306,920 |  |   | 357,534 |  |
| Adjustments for the year                                                |   | (31,682 | ) |   | (50,614 | ) |
| Total U.S. GAAP adjustments                                             |   | 275,238 |  |   | 306,920 |  |
| Balance at under U.S. GAAP                                              |   | ¥ | 320,785 |  |   | 347,769 |  |

|     |                      |
|-----|----------------------|
| (b) | Compensated absences |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |
|                           |   | Thousands of Yen |
|                           |   | December 31, 2012 |   | December 31, 2011 |
| Balance at under Japanese GAAP |   | ¥ | — |  |   | — |  |
| U.S. GAAP adjustments:         |   |   |   |   |
| Beginning balance adjustments  |   | (23,800 | ) |   | (24,200 | ) |
| Adjustments for the year       |   | (4,100 | ) |   | 400 |  |
| Total U.S. GAAP adjustments    |   | (27,900 | ) |   | (23,800 | ) |
| Balance at under U.S. GAAP     |   | ¥ | (27,900 | ) |   | (23,800 | ) |

|     |        |
|-----|--------|
| (c) | Leases |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |
|                                               |   | Thousands of Yen |
|                                               |   | December 31, 2012 |   | December 31, 2011 |
| i)    Capitalized lease assets |   |   |   |   |
| Balance at under Japanese GAAP                     |   | ¥ | — |  |   | — |  |
| U.S. GAAP adjustments:                             |   |   |   |   |
| Beginning balance adjustments                      |   | 7,540 |  |   | 18,579 |  |
| Adjustments for the year                           |   | (3,391 | ) |   | (11,039 | ) |
| Total U.S. GAAP adjustments                        |   | 4,149 |  |   | 7,540 |  |
| Balance at under U.S. GAAP                         |   | ¥ | 4,149 |  |   | 7,540 |  |
|                                               |   |   |   |   |
| ii)    Lease obligation        |   |   |   |   |
| Balance at under Japanese GAAP                     |   | ¥ | — |  |   | — |  |
| U.S. GAAP adjustments:                             |   |   |   |   |
| Beginning balance adjustments                      |   | (8,061 | ) |   | (19,664 | ) |
| Adjustments for the year                           |   | 3,526 |  |   | 11,603 |  |
| Total U.S. GAAP adjustments                        |   | (4,535 | ) |   | (8,061 | ) |
| Balance at under U.S. GAAP                         |   | ¥ | (4,535 | ) |   | (8,061 | ) |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |
|                                                                         |   | Thousands of Yen |
|                                                                         |   | December 31, 2012 |   | December 31, 2011 |
| i)    Lease accounts receivable                          |   |   |   |   |
| Balance at under Japanese GAAP                                               |   | ¥ | — |  |   | — |  |
| U.S. GAAP adjustments:                                                       |   |   |   |   |
| Beginning balance adjustments                                                |   | 2,166,510 |  |   | 2,089,797 |  |
| Adjustments for the year                                                     |   | 48,894 |  |   | 76,713 |  |
| Total U.S. GAAP adjustments                                                  |   | 2,215,404 |  |   | 2,166,510 |  |
| Balance at under U.S. GAAP                                                   |   | ¥ | 2,215,404 |  |   | 2,166,510 |  |
|                                                                         |   |   |   |   |
| ii)    Tangible fixed assets under direct finance leases |   |   |   |   |
| Balance at under Japanese GAAP                                               |   | ¥ | 617,826 |  |   | 569,798 |  |
| U.S. GAAP adjustments:                                                       |   |   |   |   |
| Beginning balance adjustments                                                |   | (569,798 | ) |   | (506,233 | ) |
| Adjustments for the year                                                     |   | (48,028 | ) |   | (63,565 | ) |
| Total U.S. GAAP adjustments                                                  |   | (617,826 | ) |   | (569,798 | ) |
| Balance at under U.S. GAAP                                                   |   | ¥ | — |  |   | — |  |
|                                                                         |   |   |   |   |
| iii)    Unearned interest                                |   |   |   |   |
| Balance at under Japanese GAAP                                               |   | ¥ | — |  |   | — |  |
| U.S. GAAP adjustments:                                                       |   |   |   |   |
| Beginning balance adjustments                                                |   | (1,364,032 | ) |   | (1,349,921 | ) |
| Adjustments for the year                                                     |   | 10,343 |  |   | (14,111 | ) |
| Total U.S. GAAP adjustments                                                  |   | (1,353,689 | ) |   | (1,364,032 | ) |
| Balance at under U.S. GAAP                                                   |   | ¥ | (1,353,689 | ) |   | (1,364,032 | ) |

|     |         |
|-----|---------|
| (d) | Pension |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
|                                      |   | Thousands of Yen |
|                                      |   | December 31, 2012 |   | December 31, 2011 |
| Accrued pension and severance liabilities |   |   |   |   |
| Balance at under Japanese GAAP            |   | ¥ | (163,069 | ) |   | (143,012 | ) |
| U.S. GAAP adjustments:                    |   |   |   |   |
| Beginning balance adjustments             |   | 71,588 |  |   | 76,554 |  |
| Adjustments for the year                  |   | (23,432 | ) |   | (4,966 | ) |
| Total U.S. GAAP adjustments               |   | 48,155 |  |   | 71,588 |  |
| Balance at under U.S. GAAP                |   | ¥ | (114,913 | ) |   | (71,424 | ) |

|     |                  |
|-----|------------------|
| (e) | Hedge accounting |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   |   | Thousands of Yen |
|                                   |   | December 31, 2012 |   | December 31, 2011 |
| Accumulated other comprehensive income |   |   |   |   |
| Balance at under Japanese GAAP         |   | ¥ | 15,538 |  |   | (11,117 | ) |
| U.S. GAAP adjustments:                 |   |   |   |   |
| Beginning balance adjustments          |   | 11,117 |  |   | 30,559 |  |
| Adjustments for the year               |   | (26,655 | ) |   | (19,442 | ) |
| Total U.S. GAAP adjustments            |   | (15,538 | ) |   | 11,117 |  |
| Balance at under U.S. GAAP             |   | ¥ | — |  |   | — |  |

----

|     |                           |
|-----|---------------------------|
| (f) | Tax effect on adjustments |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
|                                                 |   | Thousands of Yen |
|                                                 |   | December 31, 2012 |   | December 31, 2011 |
| Deferred tax assets, net of deferred tax liabilities |   |   |   |   |
| Balance at under Japanese GAAP                       |   | ¥ | 213,489 |  |   | 226,710 |  |
| U.S. GAAP adjustments:                               |   |   |   |   |
| Beginning balance adjustments                        |   | 94,351 |  |   | 85,860 |  |
| Adjustments for the year                             |   | 22,960 |  |   | 8,491 |  |
| Total U.S. GAAP adjustments                          |   | 117,311 |  |   | 94,351 |  |
| Balance at under U.S. GAAP                           |   | ¥ | 330,799 |  |   | 321,061 |  |