Toridoll Holdings Corporation FY2017(2Q) Financial Result · FCs - Australia 1 1 FCs - Philippines 0 1 1 Wok to Walk Subsidiaries 60% Europe, etc 77 3 80 Subsidiaries 100% USA 1 1

1

Toridoll Holdings Corporation FY2017(2Q) Financial Result

Nov 16, 2017

2

Financial Result Digest FY2017(2Q)

Consolidated PL (IFRS)Previous period

Amount Ratio toRevenue

Ratio toPrev.period

Amount Ratio toRevenueRatio toPlanned Amount

Ratio tolast year

Revenue 56,038 100.0% 111.7% 53,465 100.0% 104.8% 50,183 100.0%EBITDA 6,341 11.3% 107.4% - - - 5,905 11.8%Adjusted EBITDA 6,685 11.9% 109.8% - - - 6,088 12.1%Operating profit 4,421 7.9% 101.5% 4,400 8.2% 100.5% 4,355 8.7%Profit before tax 4,415 7.9% 113.1% 4,120 7.7% 107.2% 3,903 7.8%Profit for the year 3,016 5.4% 116.8% 2,690 5.0% 112.1% 2,581 5.1%Profit for the yearattributable toowners of theparents 3,006 5.4% 115.5% 2,681 5.0% 112.1% 2,602 5.2%

Marugameseimen segment

Revenue 46,118 - 107.2% 43,559 - 105.9% 43,002 -Operating profit ofMarugameseimensegment 7,606 16.5% 112.9% 7,023 16.1% 108.3% 6,734 15.7%

Overseas segment

Revenue 3,433 - 123.4% 3,458 - 99.3% 2,783 -Operating profit ofMarugameseimensegment

200 5.8% 98.0% 271 7.8% 73.8% 204 7.3%

FY 2017 2Q Planned(1H)

3

Profit & Loss Outline

Revenue increases by 11.7% vs. last year Profit increases by 16.8% vs. last year

Business result highlights •Sales keep good (+11.7% vs. last year) Other Operating Income down (-190 mil. yen), but Financing Costs down (-400 mil. yen) Profit for the year: 3,016mil. yen (+16.8% vs. last year)

※ Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses (EBITDA = Operating profit + Other operating expenses - Other operating income + Depreciation and amortization)

（Unit: Million yen）

※

4

Year-on-year Analysis of Adjusted EBITDA

※ Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses (EBITDA = Operating profit + Other operating expenses - Other operating income + Depreciation and amortization)

12.1%

+0.5pt

-0.2pt

-0.6pt

-0.4pt

11.9%

+0.3pt

Adjusted EBITDA ratio: 11.9% -0.2 point (vs. last year) : Utility cost & other costs down but COGS , Labor cost & Advertising expenses up

5

Open/Close Stores for Domestic Outline

Domestic

+11 stores for Marugameseimen, +15 stores for Butayatonichi

Test brands aggressively opened: being examined

+71 stores (net +63) for Domestic (incl. acquisition)

Domestic

Open Close778 11 -4 785

Road Side 614 7 -2 619Shopping Center 164 4 -2 166

Toridoll (Yakitori) 17 0 0 17Marushoya (Ramen) 12 2 -3 11Nagatahonjoken (Yakisoba) 11 0 -1 10

12 1 0 132 0 0 2

22 15 0 378 0 0 8

Others 15 42 0 57877 71 -8 940Total

Makino（Tenpura）

Ton-ichi（Tonkatsu,tonteki）

Kona's CoffeeRoasted（Cafe）

Marugame Seimen (Udon)

Clover Coffee R（Cafe）

BrandsMarch2017

During period September2017

6

Open/Close Stores Outline

Overseas

+23 stores in Malaysia

Open first Marugameseimen store in USA mainland

+59 stores in Overseas(net +41) +130 stores (net +104) in total, which lead 1,315 stores of Toridoll HD Group.

Overseas

2017 2017 2017 2017

Mar Open Close 9月末 3月末 Open Close sep

Marugame Seimen Subsidiaries 100% USA 2 1 3

Subsidiaries 100% Korea 7 1 -1 7 4 4

Subsidiaries 90% Taiwan 25 2 27

Subsidiaries 65% Cambodia 1 1

JVs 49% Russia 3 3 3 3

JVs 40% Thailand 26 6 32

JVs 37% China 69 13 -11 71 8 8

FCs - Indonesia 33 5 38

FCs - Vietnam 7 1 8

FCs - Australia 1 1

FCs - Philippines 0 1 1

Wok to Walk Subsidiaries 60% Europe, etc 77 3 80

Subsidiaries 100% USA 1 1 2

Boat Noodle, etc JVs 49% Malaysia, etc 44 22 -5 61 1 2 -1 2

Shoryu JVs 39% UK 8 1 9

Ton-ichi Subsidiaries 90% Taiwan 4 4

Tokyo Table Subsidiaries 100% USA 2 2

Subsidiaries 90% Italia 1 1

Crackin' Kitchen Subsidiaries 100% USA 1 1

Kaya Street Kitchen Subsidiaries 60% USA 1 1

Toridoll FCs - Indonesia 3 3

Bottega del Ramen Subsidiaries 90% Italia 1 1

Sakagura JVs 49% UK 1 1

197 47 -17 227 137 12 -1 148

FC

FY 2017 2Q FY 2017 2Q

Total

Brands Operation formInvestmentratio

Area

Direct operation

Marugameseimen segment

Actual Ratio toRevenue

Ratio toPrev.period

Amount Ratio toRevenueRatio to

Plannede AmountRatio to

Revenue

Revenue 46,118 - 107.2% 43,559 - 105.9% 43,002 -Operating profit ofMarugameseimensegment 7,606 16.5% 112.9% 7,023 16.1% 108.3% 6,734 15.7%

FY 2017(2Q) Previous periodFY 2017(2Q)

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Marugame seimen segment's PL Outline

Marugame seimen segment's PL Outline

Business result highlights ■Revenue +7.2% (vs. last year): Good performance of Existing Stores. ■Segment profit Advertising expenses up (+0.1 pt.), but COGS down (-0.4 pt.), Labor cost down (-0.2 pt.), and Utility cost down (-0.2 pt.)


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Year-on-year analysis of Segment profit ratio of “Marugame seimen”

Segment profit ratio of “Marugame seimen” for the year: 16.5% +0.8% (vs. last year): Promotion cost efficiency up, but COGS ratio, Labor cost and Utility cost ratio down

15.7%

+0.2pt

+0.4pt +0.2pt

-1.1pt 16.5% +0.2pt

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Sales keep increasing for 37 months

Non-consolidated Sales Change of Existing Stores of Marugame Seimen Brand

Sales of Existing stores of Marugameseimen brand keep rising for 37months since August, 2014 (Consecutive 24 months until July, 2016)

※Calculation is based on the Existing Stores at the end of March, 2014. Moving average for 12 months of Existing Stores

（Year –over-year result in domestic Existing Stores）

（unit: Million yen）

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total Apr May Jun Jul Aug SepThe first half

year Total

Net Sales 100.9% 105.8% 109.2% 102.7% 97.7% 105.4% 105.4% 107.7% 101.2% 102.4% 104.5% 105.3% 103.8% 104.8% 105.2% 107.0% 110.2% 104.2% 105.1% 106.0%# of

Guests99.1% 101.9% 109.3%

102.9% 98.7% 104.0% 103.1% 105.7% 101.7% 102.5% 104.1% 104.5% 103.0%104.0% 102.5% 102.5% 104.2% 98.6% 101.4%

102.1%Sales per

Guest101.8% 103.8% 100.0%

99.8% 99.0% 101.3% 102.2% 101.9% 99.6% 99.9% 100.4% 100.7% 100.9%100.8% 102.6% 104.4% 105.8% 105.7% 103.7%

103.8%

• Execute 94 of 154 stores in 1H; To cover most stores in 3Q

• More seats for +5% (vs. last year) of sales

Major Measures for good performances of Existing stores

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Strategic Refurnishing

Sales & Marketi

ng Measur

es

product

Dinner Sales

up

App

Domestic: Measures Implemented

• Keeps high Product ratio of high-value-added fair products and their lineups approx. 15% “Umakara nikutuke udon” + approx. 5% “Koku uma butasyabu bukkake”→ Keeping approx. 20% of product ratio in total • Quicker cycle of limited-period fair: 1H ave. 45 days (vs. 56 days last year) • “Value-size” (2X of noodles, 1.5X of toppings than Reg.) started in July

• Half price time-sale for fair products Guest count 1.6 times as normal hours

• More stores to 15 for “All-You-Can-Drink for a half hour” system Monthly Sales (Sep.) of test stores: +21.9% (vs. last year) for 6p.m.-10p.m.

• 4.27 million DLs at end of September , 2017 Active users: 1.23 million/month ; 4.7% of Sales

• “App 1st Anniversary” in June 29 thousand users/day (Record High)

Butaya tonichi segment


Ratio toPrev.period

Amount Ratio toRevenueRatio to

Plannede AmountRatio to

Revenue

Revenue 1,376 - 345.7% 1,368 - 100.6% 398 -Operating profit ofMarugameseimensegment △ 133 - - 34 2.5% - △ 16 -

FY 2017(2Q) Previous periodFY 20172Q)

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Butaya tonichi segment's PL Outline

Butaya tonichi segment's PL Outline


Business result highlights ■Revenue +15 stores to 37 (32 in SC, 5 in commercial areas) in 1H; Sales jump up by sore open ■Segment profit

• -83Mil. yen Segment loss for new stores in 1H & 3Q (only costs for 3Q) • +28 stores since last 2H: Sales & Profits vary by stores

Others • “Tonichi day” for 11th & 21st of every month: Katsudon with Double Egg for 500

yen (vs. normally 690 yen)

Casual High quality

High price

Low price

Tonkatsu, TempuraSpecialty store

Katsudon, tempura FF

Price

Specialty

¥1,500～

¥500～700

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Domestic: New Brand

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To capture customers’ needs in economic deflation or for cost-sensitivities

To capture customers’ needs for something new/petit-sumptuous

Butaya Ton-Ichi ■Market targeting ・To realize low price in high-value-added brands with Hand-made & Just-cooked ・To cultivate new markets for specialty stores of “Tempura Set”, “Tonkatsu” and “Tonteki”, distinguished from other general “Ten-Don / Katsu-Don”, “Tonkatsu Set / Tempura” stores. → To attract both needs of “economic recession” & ”cost-sensitive” and of “Petit-Luxury”

Acquisition of Active Source Inc. of “Bampaiya

Acquires stocks of Active Source Inc. which operates 31 “Bampaiya” stand bars in metropolis, and makes it a group company; to achieve 500 store system in Japan

【背景】

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Brand Strengt

hs

Background

Future Expecta

tions

• Retirement phase for baby boomers coming; SNS changes communication styles Quick shot bars to enjoy drinking alone (rather than big bars for groups) are

getting attentions • This company grew up rapidly, but needed “Business Network”, “Funds Power”,

“Chain Shop Know-Hows in Management, Human Resources and Education” for further growth

• Overwhelming prices (70% of menus are 100 yen range)

• Rapid growth: 30 stores in 2 years; Wins “Restaurant Award 2016” for achievement of chain-management of bars that are difficult for multi-store operations

• Flexibility in scale and location

• To aim synergy effects for speedy growth by integration of location development and food procurement Results being achieved (e.g., locations for new stores)

• To aim both group’s synergy effects and brand advantages of “Bampaiya” Marugameseimen’s operation know-hows; Founder continues supervising for

philosophy penetration • BS to be calculated from 2Q, PL from 3Q

Overseas segment


Ratio toPrev.period

Amount Ratio toRevenueRatio toPlanned Amount

Ratio toRevenue

Revenue 3,433 - 123.4% 3,458 100.0% 99.3% 2,783 -Operating profitof Overseassegment 200 5.8% 98.0% 271 7.8% 73.8% 204 7.3%

Previous periodFY 2017(2Q) FY 2017(2Q)

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Overseas Consolidated Subsidiary Companies’ PL Outline


Business result highlights ■Revenue

• Taiwan (ROC): approx. 320 mil. yen by store number increase • TDC: approx. +170 mil. yen by store number increase

■Segment profit • Taiwan (ROC): +20 mil. yen by store number increase • WOK TO WALK: +80 mil. yen by store number increase • +30 mil. yen by withdrawal from Kenya • Count 180 mil. yen of loss for immature stores of TDC or in Italy

Measures in Taiwan (ROC)

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Promotion

measures

Product measur

es t

Personnel

measures

Measures in Taiwan (ROC)

• Press Release for new menus: Published in 20 media • Lottery campaign for Japan travel, iPhone, Motorbike, etc. • Promotion at FB/SNS: Appeal new products in campaign to 2 million+ people

• To shorten fair menu refresh cycle from 3 months to 2 months “Tomato-Chicken Udon” in 1H: 7-9% share in sales • Enhances rice bowl menus: Beef Bowl at all stores (2-6% share) Contributes for widening target customer zone; Strengthen Tempura displays,

too

• To build mid-term career-up system via results-related approach • To introduce short-term incentive system via sales amount

Regaining Sales to 88.6% in 1H (88.9% of Guest #, 99.7% of average pay) vs. last year (89.5%, 89.3% and100.2% for 2Q respectively)

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Overseas Invests in US fund / Boat Noodle

Invests in US restaurant fund • Joins into an investment fund, Hargett Hunter Premier Brands Fund I, LP (Limited

Partnership formed in Delaware, hereafter HHPBF) set up by an investment firm, Hargett Hunter Capital Partners (Head office: North Carolina, hereafter HHCP)

To explore and invest in restaurant chains & franchisers with high growth expectations. To offer wide range of platforms from brand establishment to location development & operation improvement, too.

• To build hot information system about growing companies in the biggest and trend-

creating US restaurant market, for 4000 store system in overseas in year 2015

Boat Noodle explores to other counties • Keeps growing to 60 stores • Opens in Indonesia (in Jul. 2017) and Myanmar (in Oct.) following Thailand and Brunei

First Marugameseimen Stores in Philippines & US mainland • Opens first Marugameseimen store in Manila, Philippines (in Aug. 2017) and US

mainland (in Sep.): Both going well

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BS Outline

Equity attributable to owner of parent company for this period: 51.9% Interest-bearing liabilities dependence: 26.1%

Main factors of fluctuation Increase of assets ●Adding up of cash and deposit, and new store opening Increase of liabilities ●Borrowing money

Consolidated BS (IFRS) (unit: Million yen)

Amount Ratio Amount Ratio DifferenceTotal assets 69,461 100.0% 64,011 100.0% 5,450

Current assets 19,760 28.4% 16,706 26.1% 3,054Non-current assets 49,701 71.6% 47,305 73.9% 2,396

Total liabilities and equity 69,461 100.0% 64,011 100.0% 5,450Liabilities 32,503 46.8% 29,005 45.3% 3,498(included interest-bearingliabilities) 18,140 26.1% 15,708 24.5% 2,432

Current liabilities 17,883 25.7% 16,464 25.7% 1,419Non-current liabilities 14,620 21.0% 12,541 19.6% 2,079

Total equity 36,958 53.2% 35,006 54.7% 1,952(Equity attributable toowners of the parent) 36,084 51.9% 34,203 53.4% 1,881

This period End of previous year

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CF Outline

CF in operating activities increases by profits up and taxes down CF in financing activities decreases by dividends up

Main factors of fluctuation Net cash provided by (used in) operating activities Increase of profits and decrease of taxes

Net cash provided by (used in) financing activities Increase of dividends

Consolidated CF (IFRS) (unit: Million yen)This

periodPrevious

periodDifference

Net cash provided by (used in)operating activities 5,836 4,319 1,517

Net cash provided by (used in)investing activities △ 4,303 △ 4,294 △ 9

Net cash provided by (used in)financing activities 760 789 △ 29

Cash and cash equivalents atend of period 13,443 10,867 2,576

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Financial forecast for FY2017 / Future Plan

Consolidated PL (IFRS)Ratio to

Prev.period

Revenue 112,233 100.0% 101,779 100.0% 110.3%

Adjusted EBITDA 14,057 12.5% 12,934 12.7% 108.7%

Operating profit 8,851 7.9% 8,619 8.5% 102.7%

Profit before tax 8,993 8.0% 8,466 8.3% 106.2%

Profit for the year 5,968 5.3% 5,585 5.5% 106.9%Profit for the year attributableto owners of the parents 5,970 5.3% 5,631 5.5% 106.0%

Marugameseimen segmentRatio to

Prev.period

Revenue 89,306 100.0% 85,598 100.0% 104.3%

segment profit 14,913 16.7% 13,674 16.0% 109.1%

Overseas segmentRatio to

Prev.period

Revenue 6,876 100.0% 5,826 100.0% 118.0%

segment profit 366 5.3% 363 6.2% 100.8%

FY 2017 FY 2016

FY 2017 FY 2016

FY 2017 FY 2016

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Financial forecast for FY 2017

New stores Domestic: 99 stores (incl. 33 by M&A) Overseas: 160 stores (direct-owned:38 stores, JV･FC:122 stores)

1,400 million yen calculated for impairment loss

(Unit: million yen)

Financial forecast for FY 2017

連結PL (IFRS)

実績売上比修正計画売上比当初計画売上比差異連結売上比

売上収益 56,038 100.0% 56,195 100.0% 56,195 100.0% 0 112,233 100.0%

営業利益 4,421 7.9% 4,430 7.9% 4,430 7.9% 0 8,851 7.9%

税引前当期利益 4,415 7.9% 4,578 8.1% 4,730 8.4% ▲ 152 8,993 8.0%

当期利益 3,016 5.4% 2,953 5.3% 3,050 5.4% ▲ 98 5,968 5.3%親会社の所有者に帰属する当期利益 3,006 5.4% 2,964 5.3% 3,033 5.4% ▲ 69 5,970 5.3%

通期下半期上半期

21


Budget for 2nd half; Differences from the beginning

Revision of premises ■New stores to open Domestic Whole year: 99 (28 stores for 2nd half) Overseas Whole year: 160 (38 for direct management, 122 for JV/FC) (101 for 2nd half (30 for DM, 71 for JV/FC)) ■Performances of domestic Existing stores Whole year: 100% to 103.5% (2nd half: 99.5% to 101.0%)

連結PL (IFRS)

実績売上比修正計画売上比当初計画売上比差異連結売上比

売上収益 56,038 100.0% 56,195 100.0% 56,195 100.0% 0 112,233 100.0%

営業利益 4,421 7.9% 4,430 7.9% 4,430 7.9% 0 8,851 7.9%

税引前当期利益 4,415 7.9% 4,578 8.1% 4,730 8.4% ▲ 152 8,993 8.0%

当期利益 3,016 5.4% 2,953 5.3% 3,050 5.4% ▲ 98 5,968 5.3%親会社の所有者に帰属する当期利益 3,006 5.4% 2,964 5.3% 3,033 5.4% ▲ 69 5,970 5.3%

通期下半期上半期

Budget for 2nd half; Differences from the beginning

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Budget for 2nd half; Differences from the beginning ■Revenue/Operating profit

Revision of assumptions; Revision by business extensions To keep original budget for 2nd half (some for upwards, some for downwards)

■Profit before tax Approx. -150 mil. yen for Financial expenses and Revision of equity in net income of affiliates

■Profit for the year Approx. -50 mil. yen for Revision of taxes


Future Major Measures

Major Measures for Marugameseimen

23

Sales & Marketi

ng Measur

es

Operation

Improvement

ＣＭ

App Renewal

QSC Improve

ment ・離職防止

• To optimize Advertisement costs for -20% (vs. last year)

• QR code reader machine for coupons; Operation improvement • Stamp function & invite system: More contacts and higher royalty of

customers to enhance use-opportunities • Automates chain of “Registration”, “Push Notification” and “Coupon

Distribution”

• Trainer/Craftsman: Internal certification system Less complaints for stores with Trainer/Craftsman

# of complaints (vs. last year); 63% for stores with Trainers, 69% for stores with Craftsmen (vs. 91% for all stores)

• Lower labor turnover ratio by “Praise” system -0.6% for Top 20 practicing stores than all stores

In order to create customers’ pleasure in new culture of “praise each other”, each staff is scored by recommended action list and gets incentives by gained points.

• 1.2m longer counter lane: More product display & delivery before cashier +25 yen of average pay, +3.7% of Guest# (test results)

• Introduction of Topping label: Place wood labels on recommended product boards for attention +3.3% product share of rice bowls and rice (test results)

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Butaya tonichi

Other Test brands

Cafe

Major Measures for New brands

• To keep opening stores; To build store model for commercial area in addition to SC

• To develop and keep testing new brands • To design business model for multi-store system

• Sales up by menu improvements: Profit improved and stable

• To enhance take-away menus for Sales up

• +7 stores in 2H

• Locations available for 100+ stores: More stores planned

• Joins Child-Rearing-Support-Passport System and SC employee discounts: More customers expected

• Wider customer zone and more speedy delivery necessary

Store openin

gs

Sales Measur

es

Others

Major Measures for New brands

• To build “8.5 Mil. monthly sales and 15% operating profit” model for multiple store system

Capital alliance with ZUND, “Zundoya” managing company

Acquires share of ZUND, managing 33 “Zundoya” pork-bone soup ramen stores mainly in Kansai area of Japan; To expand to 300 store system

【背景】 • 1st store in Himeji in 2002. It’s pork-bone/back-fat soup ramen became popular. Currently 33 stores.

• Quick growth; 20+ new stores in last 3 years • To ensure both speedy expansion and stable management, some know-hows

to be furnished: Human Resource/Education, Control Management (e.g., Personnel, Accounting), Store Support, etc.

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• Founder continues management to maintain original philosophy and principles, root of growth

• To redefine current “Advantages of Zundoya” and design new growth plan for further expansion

• To create synergy effects with backup of Toridoll Group’s resources and know-hows for growth: HR, Control, Store Support, etc.

• “Thick but no odor of pork-bone” soup and “Selection from 2 types (Thin-strait / Thick-curly)” noodles are popular

• Specially designed stores for relaxing atmosphere attract young people especially in suburbs (road-side type stores)

• Controlling pork-bone odor: Woman friendly

Brand Strengt

hs

Background

Future Expecta

tions

26

Marugame Seimen Taiwan (ROC) • Starts transportation advertising in October for fair products; To implement big promotion

for each Quarter • Grand menu improvement in November: To introduce 2-3 new menus (including fair

products) To keep implementing measures for sales recovery of Existing Stores

Philippines • First store in Philippines keeps good: 2nd store planned US mainland • First store in US mainland keeps good: 2nd & 3rd stores planned • CRACKIN’KITCHEN in L.A. planned (Jan. 2018)

Boat Noodle • New stores in neighbor countries after Brunei, Indonesia and Myanmar • Fashionable & Entertainment: Growing new middle class market expected • Halal approved: High competitive advantage; Mid-East market also expected

WOK TO WALK • New franchise contracts in Indonesia and Israel: More countries expected

Overseas: Marugame Seimen / Boat Noodle / WOK TO WALK / Others

All over Asia

Hawaii / US

mainland

Europe

27

Along with Marugame Seimen, to incorporate new brands for different needs and targets

Group locally popular brands by M&A etc.

Multi-brand development for each location

Overseas: Multi-portfolio Strategy

To the world with Multi-portfolio strategy for each local food culture

To be ranked Revenue

To achieve 500 billion yen revenue and 6,000 stores in the world in 2025 Rank in top ten companies in restaurant industry

500 bil yen

101.7 bil yen

Overseas business

4,000 stores 290 bil yen

Future Vison

28

Existing domestic brands

1,100 stores 110 bil yen

New domestic brands

900 stores 100 bil yen

2017 2025

Asia: 1000 stores North & South America: 2,000 Europe & Middle East: 500 Asia: 1,000 Africa: 500

To achieve 5Blands × 200stores system

Over 1000 Marugameseimen brand stores + Existing brands

29

Reference materials (Appendices)

Consolidated PL (IFRS)

AmountRatio toRevenue

Ratio toPrev.period


Ratio toPrev.period


Ratio toPrev.period

Revenue 112,233 - 110.3% 132,226 - 117.8% 153,935 - 116.4%Adjusted EBITDA 14,057 12.5% 108.7% 16,840 12.7% 119.8% 19,524 12.7% 115.9%

Operating profit 8,851 7.9% 102.7% 10,600 8.0% 119.8% 12,113 7.9% 114.3%

Profit before tax 8,993 8.0% 106.2% 10,713 8.1% 119.1% 12,270 8.0% 114.5%

Profit for the year 5,968 5.3% 106.9% 7,153 5.4% 119.8% 8,237 5.4% 115.2%

Profit for the year attributableto owners of the parents 5,970 5.3% 106.0% 7,078 5.4% 118.5% 8,000 5.2% 113.0%

Ｍａｒｕｇａｍｅｓｅｉｍｅｎ segment


Ratio toPrev.period


Ratio toPrev.period


Ratio toPrev.period

Revenue 89,306 - 104.3% 89,399 - 100.1% 93,720 - 104.8%

segment profit 14,913 16.7% 109.1% 14,373 16.1% 96.4% 14,885 15.9% 103.6%

Overseas segment


Ratio toPrev.period


Ratio toPrev.period


Ratio toPrev.period

Revenue 6,876 - 118.0% 20,868 - 303.5% 28,393 - 136.1%

segment profit 366 5.3% 100.8% 2,581 12.4% 705.3% 3,516 12.4% 136.2%

Numbers of openingstores(numbers inoverseas） - - -Total numbers ofstores(numbers ofoverses) - - -

FY2018 FY2019

1,437(471) 1,770(721) 2,092(930)

FY2017 FY2018 FY2019

259(160) 359(266) 359 (236)

FY2017 FY2018 FY2019

FY2017

30

3 year’s Plan

To keep expanding to 2,092 stores of Group in March 2019 (Unit: million yen)

• Numbers for FY2019 include 10.8billion yen Sales &1.5 billion yen Segment Profit of Yunnan Noodle. • Numbers for FY2019 include 11.7 billion yen Sales & 1.56 billion yen Segment Profit of Yunnan Noodle and

2.55 billion yen Contribution Sales & 280 million yen Contribution Profit of Boat Noodle by consolidation.

31

Overview of Overseas Businesses by Locations

Asia

Area Country/Brand OutlinePL Contribution (last year)

Sales / Segment profit

Taiwan (ROC)Keeps good. To enforce promotion measures using SNS, and to develop newstores. Also operating 4 "Tonkatsu" brand stores.

2800 mil. / 450 mil.

S. Korea To achieve profit for single month by new menus and closing deficit stores 560 mil. / -10 mil.

China (PRC)Keeps good. Store expanding in inlands (e.g., Chongqing & Chengdu) to currently79 stores. "Hakatanmaru" ramen brand develops.

ThailandAggressively open small stores which require small initial costs. To introduce low-price items for more customers depending on locations/store types. Also, toimprove profit by take-away menus

IndonesiaMarugame Seimen brand is Halal approved, and popular among local Muslims.Road-side type stores (rather than Shopping Center type) being opened. 3Yakitori brand stores being operated.

VietnamDrastic measures for profit improvement being implemented (e.g., improving inQuality, Education and Organization).

CambodiaMeasures for profit improvement for Existing Stores being implemented: Close toturning in the black in total. Introducing cart-sale for more profit.

700 mil. / -200 mil.

Malaysia(Boat Noodle)

Keeps opening stores to 62 after grouped. Additional acquisition of shares to 49%.FC operations to be developed in neighbor countries; Already opens in Brunei andIndonesia. Also, already FC contracts in other countries for future new stores.

Asia

32

Overview of Overseas Businesses by Locations

Area Country/Brand OutlinePL Contribution (last year)

Sales / Segment profit

TDC (Tokyo Table)1st store in Irvine keeps good. World top 1-2 store in Toridoll Group. 2nd store inAlhambra (since December 2016) to be improved. In High-Sales group in world.Sales up expected by developing new menus and refurnishing outdoor seats.

480 mil. / -170 mil.

Marugame SeimenWaikiki Shop keeps good. World top 1-2 sales in Toridoll Group. New store inSawtelle, LA opened in Sep. 2017. whose sales for weekends exceed Waikiki Shop.2nd store in Stonestown, SF and 3rd store at SC around Beverly Hills planned.

750 mil. / 80 mil.

CRACKIN'KITCHENKeeps good. World Top 1-2 sales in Toridoll Group. New store to open in LA inthis November.

570 mil. / 90 mil.

Sakagura

Opens 1st store in November 2016. Collabo menus between Bent Box and ShoryuRamen in March 2017. Introduces charbroil concept to patio seats and basementfloor in July. Also, enhance Tempura menus for sales up in this autumn. Keepsmarketing measures to promote brand awareness for more customers (e.g.,marketing measures via SNS and events during restaurant week).

-

ShoryuOperates 11 stores. Some stores are in top sales group. Strategic dominance inLondon. Expansion to local areas being planned. 9th Store in Shoreditch, Londonopens in October 2017.

-

Italy Tokyo Table, OthersOpens "Bottega del Ramen" in February and "Tokyo Table" in March 2017.Completes menus renewal in September. Both stores regains sales to open-breaklevels. Cost control being improved for profit.

small

Others WOK TO WALKStore aggressively expanding to 82 (including 2 direct-operation stores in US)after grouped. Opens 1st direct-operation store In US in February and 2nd storein July 2017. Exploring other counties for FCs.

small

Russia Marugame Seimen 3 direct-operation stores and 3 FC stores (total 6 stores) in Moscow. Achieved allstores in the black. To develop more stores as well as keeping stable profits.

-

UK

Hawaii(USA)

33

Basic information of Overseas Marugame Seimen brand

・Sales, # of Guests, Sales per Guest are the means in the period from January to June of 2017. (But the means in the period from April to September of 2017 for Taiwan and Japan.) ・Adopt an exchange rate at end of September, 2017

Overseas Marugame Seimen brand　Basic information (Monthly data per store)

Sales (1,000 yen)

# of Guests (person)

Sales perGuest (yen)

USA 32,377 31,282 1,035South Korea 5,240 6,061 865Taiwan (ROC) 10,081 15,520 650Cambodia 6,202 11,927 520Russia 8,946 10,183 879China(PRC) 6,012 8,468 710Thailand 2,147 4,476 480

Japan 9,688 17,116 566

Basic information of Overseas Marugame Seimen brand

Overseas: Management System

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Management strategy

Business strategy

• Location • Product • Purchasing &

Logistics • Marketing • HR & organization • System, etc.

Store Management

Localization for Overseas management & governance: Stable relations with HQ for key business strategies

Holdings （Japan） Existing Own Brands M&A Acquire Brands

HQ to plan

Each area manager to control progress

HQ to monitor (via video conferences, etc.)

To achieve swift decisions for local matters via management localization

HQ & Local to plan (collaboration)

Officers: From HQ / Local（most M&A subsidiaries keep original managements)

Collaboration in strategies

Introduction of partners (e.g., FCs), global procurements, etc.

To respect decisions of front lines

Not to apply Japanese rules to other countries (To respect diversity of culture, habit or law)

Progresses and results of measures to be reported

Same as Existing Own Brands for local decisions

Local decisions on branding and marketing of M&A subsidiaries to be respected (to maintain brand values)

To send SVs especially for QSC enhancement

HQ’s help to be requested when necessary

Missing functions to be helped by HQ (Mostly SVs for QSC enhancement requested)

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Granting new stocks to shareholders

We believe the appropriate redistribution of profits to shareholders is one of the most important missions of the company, and hold up the basic policy to continue paying stable dividends while reserving retained profits for necessary investments for the group growth.

Number of shares Incentive

100 - 500 2,000 yen value coupon

500 - 1,000 6,000 yen value coupon

1,000+ 10,000 yen value coupon

Contents of shareholder incentive

Changes in Dividends

Year endedMarch 31,

2013

Year endedMarch 31,

2014

Year endedMarch 31,

2015

Year endedMarch 31,

2016

Year endedMarch 31,

2017

Year endedMarch 31,

2018(estimated)

Amount ofannual

Dividends PerShare

16.50yen 8.00yen 10.00yen 24.00yen 26.00yen 26.50yen

DividendPayout Ratio

19.90% 37.00% 20.50% 19.90% 20.00% 20.12%

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Documents

Toridoll Holdings Corporation FY2017(2Q) Financial Result · FCs - Australia 1 1 FCs - Philippines 0 1 1 Wok to Walk Subsidiaries 60% Europe, etc 77 3 80 Subsidiaries 100% USA 1 1