FINANCIAL RESULTS FISCAL YEAR 2016

Transcription

1 FINANCIAL RESULTS FISCAL YEAR 2016 create restaurants holding inc. April 19, 2016

2 1 Highlights of Results for Fiscal 2016 Overview of Financial Results Net sales were billion yen (up 49.0% year on year), ordinary income was 7.3 billion yen (up 67.4% year on year), net income was 3.3 billion yen (down 48.9% year on year), sales from existing stores were 100.7% year on year, and the number of stores at the end of FY 2016 was Net sales exceeded 100 billion yen for the first time in the 19 years since the business was established. Ordinary income increased significantly and reached a new record high new stores were opened. There was an increase of 109 stores due to M&A. 38 stores were closed down. Forecast for FY 2017 Net sales of billion yen (up 14.3% year on year), ordinary income of 7.9 billion yen (up 7.6% year on year), net income of 4.2 billion yen (up 26.4% year on year) => Increase in sales and ordinary income for three consecutive years is expected. - Despite a decrease in the number of months for SFP consolidation (from 14 months to 12 months) in addition to 99 new stores that opened, an increase in sales and profit is expected based on KR s full-year contribution (increase of approx. 9.0 billion yen) from FY 2016 and growth in profit from overseas businesses, etc. Growth Strategy Implement Group Federation Management for further growth. VISION 2020 was established as medium- to long-term targets. - Aim for net sales of 200 billion yen by FY 2020 by implementing the three growth scenarios (1. organic store openings in domestic and overseas businesses, 2. M&A in Japan, and 3. Further overseas expansion).

3 2 Contents I. Financial Results for Fiscal Financial Results Overview 2. Opening and Closing of Stores 3. Comparison with Previous Year s Results (Consolidated) 4. Sales & Profit of Individual Categories: (1), (2), (3) and (4) 5. Comparison with Forecasts (Consolidated) II. Earnings Forecast of Fiscal Overview of Earnings Forecast 2. Sales & Profit Forecasts of Individual Categories III. VISION 2020 Aiming for Net Sales of 200 Billion Yen in Three Years 1. Medium-Term Management Plan (Numeric Target) 2. VISION 2020: Growth Scenarios 3. VISION 2020: Net Sales Growth Image 4. M&A Strategy 5. Financial Policy for M&A IV. Returns to Shareholders 1. Dividend Policy 2. Shareholder Special Benefit Plan

4 3 Ⅰ. Financial Results for Fiscal 2016

5 4 1. Financial Results Overview Net sales (103.2 billion yen) and ordinary income (7.3 billion yen) reached new highs. Net sales exceeded 100 billion yen for the first time in the 19 years since the business was established. Result Ratio to net sales FY 2/2015 (previous year) Ratio to net sales YoY Forecast for Ratio to net sales Ratio to forecast Net Sales 103,271 69, % 102, % Operating Income 6, % 4, % 162.1% 6, % 102.3% Ordinary Income 7, % 4, % 167.4% 7, % 101.9% Net Income 3, % 6, % 51.1% 4, % 83.0% Ordinary income before amortization of goodwill 8, % 5, % 162.6% 8, % 101.2% About sales - Sales at existing stores remained strong [year-on-year sales at existing stores: 100.7% (forecast 99.4%)] - New stores opened as planned (108 new stores opened) - Two companies with 109 stores joined the Group through M&A. Ordinary income - Strong performance of SFP and start of KR consolidation resulted in significantly increased profit. Net income - Elimination of a gain on change in equity (SFP s IPO) in FY 2015 (-6.4 billion yen), etc. [Trends in Net Sales and Ordinary Income]

6 2. Opening and Closing of Stores Opened new units by consistently implementing the location x brand combination, which has a high success rate Stores opened smoothly as planned. (1) New stores were 108 units (up 9 units from the plan) units via M&A => Total 217 units, (2) Closed 38 units => Increased 179 units from the end of the previous year. Group-wide total: 795 units at the end of February 2016 (including businesses operated under consignment, franchised stores, and overseas joint ventures) =>Smoothly as planned (forecast was 796 stores) [No. of units opened and closed at the end of February 2016] Category Total no. at previous year's end Increase/decrease New Closed Transferred inside the Group Total no. at current year's end CR SFP Specialty Brand (Via M&A during current year) (98) (0) - (98) Overseas (Via M&A during current year) (11) (2) - (9) Group Total *1: The group totals shown in these materials for all categories include all the licensed businesses, franchised stores, unconsolidated stores, and overseas joint ventures as of the end of February They differ from the consolidated group totals reported in the statement of accounts. *2: The total number at the end of the year for the overseas category includes: 3 unconsolidated units in Taiwan, 12 joint venture units of an affiliated company, and 2 units of a franchised store at EW s Jakarta venture *3: For the number of units via M&As for the current fiscal year, 106 units of KR Food Service (KR), which became a consolidated subsidiary in June 2015, are stated (Japan: 95 units, Overseas FC: 11 units (includes 2 stored that closed) and 3 units of RC Japan (RCJ) that became a consolidated subsidiary in August 2015 is presented. *4: Transferred inside the Group indicates the sum of the number of stores taken over by Gourmet Brands Company Inc. established through a joint incorporation-type split (simplified demerger) as of March 6, 2015, and the roadside stores of Create Restaurants (CR) transferred to KR. COPYRIGHT create restaurants holdings inc. All Rights Reserved. [Breakdown of stores by location (As of the end of February 2016)] Department stores Station 3.3% Overseas buildings 6.1% 3.0% Suburban roadside 12.8% Urban street front districts 26.3% Suburban malls 29.6% Urban malls, etc. 19.0% 5

7 3. Comparison with Previous Year s Result (Consolidated) COPYRIGHT create restaurants holdings inc. All Rights Reserved. 6 Successful opening of new stores of SFP and contribution based on consolidation of KR through M&A resulted in increased net sales and ordinary income. Net Sales B yen FY 2015 (Previous Year) 69.3 billion yen FY 2016 (Result) billion yen CR 36.1 B yen CR 39.0 B yen SFP 22.2 B yen Overseas Specialty Brand 2.4 B yen 8.2 B yen (YUNARI) 1.7 B yen (EW) Other (3.6 B yen) 50 M yen SFP 36.0 B yen Specialty Brand 25.1 B yen (KR) (15.5 B yen) (EW) (3.3 B yen) Overseas 2.8 B yen (YUNARI) Others (2.3 B yen) 60 M yen *1 Ordinary Income B yen FY 2015 (Previous Year) 4.38 billion yen FY 2016 (Result) 7.34 billion yen CR 3.53 B yen CR 3.46 B yen SFP 2.12 B yen Specialty Brand 490 M yen (EW) (10 M yen) SFP 4.34 B yen Overseas (-) -140 M yen (YUNARI) (230 M yen) Specialty Brand Overseas 1.73 B yen 160 M yen (EW) (210 M yen) (KR) (YUNARI) (810 M yen) 260 M yen Others (-) B yen Others (-) B yen *1: Graph reflects category income (Category income: Ordinary income after deducting expenses such as management fees and consignment expenditures payable to holdings) *2: "Other" consists primarily of head office expenses and amortization

8 7 4. Sales & Profit of Individual Categories (1) CR Category - Comprises restaurants operated by Create Restaurants (CR). - Operates multi-brand restaurants and food courts primarily inside suburban malls. - Major brands include all-you-can-eat shabu shabu SHABU SAI, natural food buffet HARVEST, and DESSERT PARADISE. The profit remained flat due to a decline in profitability of some stores in suburban areas despite strong net sales, particularly from existing stores in urban areas and high-end brands. [Looking back at ] FY 2/2015 (previous year) Result Difference Net Sales 36,192 39,084 +2,892 Category Income 3,537 3, Income Rate 9.8% 8.9% -0.9% Existing stores performed well [year-on-year sales at existing stores: 101.5% (forecast: 99.9%)] Stores, particularly of high-end brands in central Tokyo, remained strong thanks to booming inbound tourism, demand of companies, etc. Demand for consumption in stores in suburbs and country areas decreased (stores in Okinawa, etc.) In response, a low-price buffet was introduced for weekday lunches and net sales increased, but profitability declined. The number of stores at the end of FY 2016 was 381, including 45 new stores less 20 stores that were closed. Topics: Development of Pom Pom Purin Café (Sanrio s character), restaurants specializing in roasted beef rice bowls, etc. 1996,2016 SANRIO CO.,LTD.TOKYO.JAPAN L [Assumptions in the forecast for FY 2/2017] The opening of 27 new stores and the closure of 20 stores (including the closure of 16 stores at food courts under unified operation) are planned. Profit will be raised through the development of the roasted beef rice bowl restaurants that are often inquired about by developers and repricing at commercial facilities in central Tokyo and suburban areas with good markets. Result FY 2/2017 Forecast Difference Net Sales 39,084 40,503 +1,419 Category Income 3,469 3, Income Rate 8.9% 9.6% +0.7%

9 8 4. Sales & Profit of Individual Categories (2) SFP Category - Comprises restaurants operated by SFP Dining (SFP). - Entered into capital alliance in April 2013, operated izakaya-style restaurants in downtown districts. - Major brands include seafood izakaya ISOMARU-SUISAN and poultry specialty restaurant TORIYOSHI. In addition to ISOMARU-SUISAN proving successful and new stores under new brands (44 stores*), the full-year contribution of stores that were opened in FY 2015 and the change of the accounting period resulted in the substantial growth of sales and profit. FY 2/2015 (previous year) Result Difference Net Sales 22,288 36, ,803 Category Income 2,126 4,349 +2,223 Income Rate 9.5% 12.1% +2.5% * The number of new stores represents that for 14 months from January 2015 to February 2016 due to change of accounting period of SFP in FY under review. The total number of stores at the end of FY2016 (39) represents that for the accounting period (March 2015 to February 2016) of the Company [Looking back at ] In addition to active store openings of ISOMARU-SUISAN with strong sales (37 new stores were opened*), Toriyoshi Shoten was established as a new brand (5 new stores; the total number of stores at the end of FY 2016 is 9). While year-on-year sales at existing stores for the five months between October 2015 and February 2016 were 98.2% due to a reactionary fall from the new store boom, year-on-year sales at existing stores operating for more than 18 months were 99.3% (source: SFP s materials for financial reports). In addition to strong sales at new stores, the full-year contribution of stores that were opened in FY 2015 helped improve profitability. The total number of stores at the end of FY 2016 was 176, including 39 new stores (*) and zero closures. Topics: 1) Change of accounting period (consolidated 14 months) 2) SFP enhanced its returns to shareholders (new dividend provided and improved special benefits). [Assumptions in the forecast for FY 2/2017] The opening of 41 new stores is scheduled. Mostly new ISOMARU-SUISAN and Toriyoshi Shoten stores. Despite a reactionary fall from the new store boom, increased sales are expected from existing stores with a significant contribution of the fullyear operation of stores opened in FY 2016 and new stores opening in FY Meanwhile, decreased profit is expected due to the reduced number of months for consolidation (from 14 months to 12 months). (14 months) March 2015 through February 2016 (12 months) FY 2/2017 Forecast Difference Net Sales 36,091 31,697 38,300 +2,209 Category Income 4,349 3,904 4, Income Rate 12.1% 12.3% 10.7% -1.3%

10 9 4. Sales & Profit of Individual Categories (3) Specialty Brand Category - Comprises restaurants operated by eight domestic subsidiaries (Create Kissho (CK), Lemonde des Gourmet (LG), Eat Walk (EW),YUNARI (YNR), Shanghai Bishoku Chushin (SBC), Gourmet Brands Company (GBC), KR Food Service (KR), and RC Japan (RCJ) - Operates Kagonoya mostly on roadsides of suburban areas and KISSHO, TANTO TANTO, Awkitchen, TSUKEMEN TETSU, NANSHO MANTOUTEN, Jean Francois, etc. in urban commercial facilities. In addition to the consolidation of KR starting in July in the fiscal year under review (8 months), smooth new openings, etc. of KR and YNR led to a significant increase in sales and profit from FY [Looking back at ] FY 2/2015 (previous year) Result Difference Net Sales 8,292 25, ,906 Category Income 499 1,739 +1,240 Income Rate 6.0% 6.9% +0.9% KR joined the Group and Kagonoya performed well, mostly as planned, and smooth store openings at SAPA locations (Shizugatake SA, Okazaki SA, and Nagashino Shitaragahara PA) contribute to sales. The number of stores at the end of FY 2016 was 192, including 13 new stores and 98 added through M&A, less 9 stores that were closed. Topics: KR and RCJ were made subsidiaries on June 30 and August 31, 2015, respectively. As part of PMI after M&A, KR implemented system renewal, distribution restructuring, head office relocation, etc. [Assumptions in the forecast for FY 2/2017] The opening of 23 new stores and the closure of 6 stores (incl. 4 under operation contract) are planned. KR starts full-year contributions in FY 2017 (4 months, approx. 9 billion yen), and KR and YNR will actively open new stores. Profitability will decline due to opening expenses for an increase in new stores (13 stores -> 23 stores) and reduced non-operating income (compensation for CK s closed stores). Result FY 2/2017 Forecast Difference Net Sales 25,198 35, ,618 Category Income 1,739 2, Income Rate 6.9% 5.8% -1.1%

11 10 4. Sales & Profit of Individual Categories (4) Overseas Category - Operates in Singapore, Hong Kong and mainland China. - Operates brands such as SHABU SAI and MACCHA HOUSE primarily inside commercial facilities. In addition to the strong performance of Singapore and Hong Kong, the closure of unprofitable stores in China as planned resulted in a surplus in FY [Looking back at ] FY 2/2015 (previous year) Result Difference Net Sales 2,483 2, Category Income Income Rate 5.8% Sales in Singapore and Hong Kong remained strong. Unprofitable stores in China (Shanghai) were closed according to the plan => turned to surplus in FY The number of stores at the end of FY 2016 was 46, including 11 new stores and 11 added through M&A, less 9 stores that were closed. Topics: TSUKEMEN TETSU (YNR s first overseas store) and Pom Pom Purin Café opened in Hong Kong in November and December 2015, respectively. [Assumptions in the forecast for FY 2/2017] The opening of 8 new stores and the closure of 3 stores are scheduled. In addition to an increase in sales and profit expected in Singapore and Hong Kong, Taiwan will be newly consolidated. The first store will open in North America (NY), most likely in FY Result FY 2/2017 Forecast Difference Net Sales 2,832 3, Category Income Income Rate 5.8% 7.3% +1.5%

12 11 5. Comparison with Forecasts (Consolidated) Net sales from existing stores were stronger than expectations, and overall net sales exceeded the forecast. While the SFP category led sales and ordinary income exceeded the forecast, extraordinary losses, etc. to improve future profitability and the management base resulted in net income below the forecast. Result Forecast for FY 2/2015 (previous year) Ratio to forecast YoY FY 2016 Result Forecast for FY 2/2015 (previous year) Difference from forecast Net Sales 103, ,000 69, % 149.0% Difference from previous year Costs 29,769 29,223 19, % 153.7% 28.8% 28.7% 27.9% +0.2% +0.9% SG&A Expenses 66,751 66,176 45, % 145.8% 64.6% 64.9% 66.0% -0.2% -1.4% Operating Income 6,749 6,600 4, % 162.1% 6.5% 6.5% 6.0% +0.1% +0.5% Ordinary Income 7,340 7,200 4, % 167.4% 7.1% 7.1% 6.3% +0.0% +0.8% Net Income 3,321 4,000 6, % 51.1% 3.2% 3.9% 9.4% -0.7% -6.2% Net Sales Net Sales +1,271 million yen Ratio to forecast +1.2% - Existing stores outperformed the forecast [year-on-year sales at existing stores: forecast 99.4%, result 100.7%] - New stores, particularly in the SFP category, opened as planned (forecast +9 stores) Ordinary income and net income Ordinary Income +140 million yen Net Income -679 million yen Ratio to forecast +1.9% Ratio to forecast -17.0% [Ordinary income] - SFP category led the overall performance and exceeded the forecast. [Net income] - Increase in extraordinary losses: impairment of KR s Thai JV shares, losses on disposal of assets due to head office relocation (approx. 240 million yen), impairment of CR s Okinawa stores (approx. 100 million yen), loss on sale of shares due to business liquidation in China (approx. 40 million yen), etc. - Increase in income taxes: change in recognition of sponsorship fees in tax affairs (effect is approx. 200 million yen, only in FY 2016). - Impact of differences between forecasts and results of CR and SFP: While the SFP category remained strong, the CR category underperformed the forecast, making the contribution of SFP larger, the percentage of minority interests higher, and causing profit to decrease (approx. 200 million yen).

13 12 Ⅱ. Earnings Forecast of Fiscal 2017

14 13 1. Overview of Earnings Forecast FY 2/2017 Net sales billion yen (up 14.3% year on year) and ordinary income 7.9 billion yen (up 7.6% year on year). Despite a decrease in the number of months for SFP consolidation (from 14 months to 12 months) in addition to 99 new stores to be opened, an increase in sales and ordinary income is expected for the third consecutive year based on KR s full-year contribution (increase of approx. 9.0 billion yen) from FY 2016 and growth in profit from overseas businesses, etc. FY 2/2017 Forecast (result) Difference YoY FY 2/2017 Forecast Net Sales 118, , , % - - (result) Costs 34,113 29,769 +4, % 28.9% 28.8% SG&A Expenses 76,286 66,751 +9, % 64.6% 64.6% Operating Income 7,600 6, % 6.4% 6.5% Ordinary Income 7,900 7, % 6.7% 7.1% Net Income 4,200 3, % 3.6% 3.2% Category Total no. at previous year's end Increase/decrease New Closed Expected number of stores at the end of FY 2017 CR SFP Specialty Brand (portion of M&A) (98) (0) Overseas (portion of M&A) (9) (0) Group Total

15 14 2. Sales & Profit Forecast of Individual Categories Increased sales are expected from active new store openings of SFP, KR, and YNR and the full-year contributions of stores that opened in FY Profit in the SFP category will fall slightly due to the reduced number of months for consolidation. The Specialty Brand category will contribute to profit through an increase in the number of months for KR consolidation. The Overseas category will establish a surplus by adding Taiwan to the consolidation. Category Million yen Result FY 2/2017 Forecast Difference Net Sales Category income Net Sales Category income Net Sales Category income Composition ratio Million yen Income ratio Million yen Composition ratio Million yen Income ratio Million yen Composition ratio Million yen Income ratio CR 39, % 3, % 40, % 3, % +1, % % SFP 36, % 4, % 38, % 4, % +2, % % Specialty Brand 25, % 1, % 35, % 2, % +10, % % Overseas 2, % % 3, % % % % CRH head office & other expenses % -2, % -2, % -30 TOTAL 103,271 7, % 118,000 7, % +14,

16 15 Ⅲ.VISION 2020 ~Aiming for Net Sales of 200 Billion Yen in Three Years~

17 1. Medium-Term Management Plan (Numeric Target) COPYRIGHT create restaurants holdings inc. All Rights Reserved. 16 Aim for net sales of 175 billion yen and ordinary income of 13 billion yen for FY 2/2019 by implementing the three growth scenarios. Result FY 2/2017 Forecast FY 2/2018 Forecast FY 2/2019 Forecast Net Sales 103, , , ,000 (Growth rate) (114.3%) (127.1%) (116.7%) Ordinary Income 7, % 7, % 10, % 13, % Net Income 3, % 4, % 6, % 7, % (Reference) Ordinary income before amortization of goodwill 8, % 8, % 12, % 14, % (* Forecasts for FY 2/2017 are values excluding the impact of M&A.) ( Reference: Three-year plan excluding the impact of M&A) Result FY 2/2017 Forecast FY 2/2018 Forecast FY 2/2019 Forecast Net Sales 103, , , ,000 (Growth rate) (114.3%) (111.9%) (109.8%) Ordinary Income 7, % 7, % 9, % 10, % Net Income 3, % 4, % 5, % 6, % (Reference) Ordinary income before amortization of goodwill 8, % 8, % 10, % 11, %

18 17 2. VISION 2020: Growth Scenarios No changes have been made to VISION 2020 announced on October 14, Aiming for net sales of 200 billion yen in three years. Three growth scenarios Growth scenario Basic policy (concept) Higher sales (1) Organic store openings (Businesses currently operating in Japan and overseas) (2) M&As in Japan - Open about 90 stores a year. - Reinforce store openings in the Specialty Brand category. - Track record of six M&As in the past four years worth net sales of approx billion yen - M&As to boost net sales by 30.0 billion yen over the next three years billion yen (15.0 billion yen 4 years) billion yen billion yen Net sales billion yen FY 2/2020 Net sales billion yen! (3) Further development overseas - Develop business in North America and new ASEAN regions. - Use expertise in Singapore and Hong Kong. - Set our sights on development that employs the JV and FC method billion yen

19 18 3. VISION 2020: Net Sales Growth Image 2,500 2,000 Overseas Net sales (M&A) Net sales (Specialty B) Net sales (SFP) Net sales (CR) Overseas Net sales billion yen Organic store openings Conduct M&As in Japan Further development overseas M&A 1,500 1,000 Net sales billion yen Specialty B Aiming for net sales of billion yen in FY 2020! SFP 500 CR 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 (Forecast)

20 19 4. M&A Strategy Continue to examine M&As by focusing on good targets while aiming to achieve VISION < Image of M&A examination > (1) M&A type exit from funds, etc. Evaluation < Four decision criteria > Brands that can be extended to many stores High profitability based on the competitive advantage Potential for continuous growth of sales and profit Passion of managers Evaluation Evaluation (3) M&A type alliance with founder/owner - Primarily, three routes are considered as the sources of M&A projects. (1) Exit from funds, etc. [SFP, KR] (2) Non-core business acquisition [LG, RCJ] (3) Alliance with founder / owner [EW, YNR] - A number of projects proposed will be carefully examined based on the four criteria. (2) M&A type non-core business acquisition - Four M&A decision criteria (1) Brands that can be extended to many stores (2) High profitability based on the competitive advantage (3) Potential for continuous growth of sales and profit (4) Passion of managers

21 5. Financial Policy for M&A While net interest-bearing debts increased due to the acquisition of KR shares, etc., the net D/E ratio and the net interest-bearing debt to cash flow ratio are maintained at low levels. Ensure bankability to implement new M&A Changes in Net D/E Ratio Changes in Net Interest-Bearing Debt to Cash Flow Ratio (Times) (Million yen) (Times) (Million yen) FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Net interest-bearing debt (million yen) 2,862 1,929 4,345 12,583 2,393 18,265 Cash flow from operating activities (million yen) 3,381 2,936 3,602 4,568 6,298 10,353 Equity capital (million yen) 5,180 6,127 3,745 9,332 15,249 17,502 Net D/E ratio (times) Net interest-bearing debt to cash flow ratio (*1) (*2) (*3) (*4) COPYRIGHT create restaurants holdings inc. All Rights Reserved. (*1) Acquired shares held by CRH from Mitsubishi Corporation through TOB of the Company s shares. (*2) Acquired SFP Dining and EW through M&A (*3) Acquired YNR through M&A, and SFP Dining launched IPO in TSE Sec. 2. (*4) Acquired KR Food Service through M&A 20

22 21 Ⅳ. Returns to Shareholders

23 1. Dividend Policy Basic policy: Pay stable dividends based on a consolidated dividend payout ratio of approximately 30%. Dividends for FY 2016 will be an interim dividend of 16.5 yen (already paid) and a year-end dividend of 18.5 yen, totaling 35.0 yen as the annual dividend. Dividends for FY 2017 are expected to be 6.5 yen each for the interim and year-end dividends, totaling 13.0 yen as the annual dividend. (Reference: dividend before adjusting for share split is 39.0 yen/year) 8th consecutive dividend increase is scheduled. Interim: 6.50 yen Fiscal year-end: 6.50 yen Result Forecast * A 1-to-3 common stock split was carried out on September 1, 2014, and March 1, The amount of the annual dividend has therefore been corrected retroactively, taking into account the stock splits. * During FY 2015, a gain on change in equity of SFP associated with IPO was recognized as extraordinary income, which resulted in an increase in net income and a decline in the consolidated dividend payout ratio. COPYRIGHT create restaurants holdings inc. All Rights Reserved. 22

24 23 2. Shareholder Special Benefit Plan The special benefit plan was enhanced due to the stock split (1:3) carried out with the record date of February 29, Number of shares owned Content of special benefits End of Feb. End of Aug. Annual 100 shares or more Less than 500 shares Meal tickets worth 3,000 yen Meal tickets worth 3,000 yen Meal tickets worth 6,000 yen 500 shares or more Less than 1,500 share Meal tickets worth 6,000 yen Meal tickets worth 6,000 yen Meal tickets worth 12,000 yen 1,500 shares or more Less than 4,500 shares Meal tickets worth 15,000 yen Meal tickets worth 15,000 yen Meal tickets worth 30,000 yen 4,500 shares or more Meal tickets worth 30,000 yen Meal tickets worth 30,000 yen Meal tickets worth 60,000 yen

25 Reference Data

26 25 Major Management Indicators [Major management indicators (in million yen)] Change in number of stores Number of new stores (portion of M&A) Number of stores closed Number of stores at the end of FY FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Net sales 34,624 37,167 52,523 69, ,271 Ordinary income 3,558 2,827 3,796 4,383 7,340 Net income 1,314 1,317 1,811 6,495 3,321 EBITDA 3,817 4,044 5,984 7,441 11,295 Total assets 16,514 19,047 35,819 47,034 72,530 Net assets 6,127 3,744 9,332 19,676 22,996 Net interest-bearing debts 1,928 4,345 12,583 2,393 18,265 Equity ratio 37.1% 19.7% 26.1% 32.4% 24.1% ROA 8.7% 7.4% 6.6% 15.7% 5.6% ROE 23.3% 26.7% 27.7% 52.9% 20.3% Net D/E ratio (times) Year-on-year sales at existing stores [Number of stores] 94.4% 100.5% 100.8% 99.6% 100.7% FY 2012 FY 2013 FY 2014 FY 2015 FY (7) 169 (108) 128 (26) 217 (109) [Per-share data (in yen)] FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Net assets per share Net income per share Dividend per share Dividend payout ratio 29.1% 44.7% 35.9% 11.0% 33.2% * A 1-to-3 common stock split was carried out on September 1, 2014, and March 1, Net assets per share, net income per share, dividend per share, and dividend payout ratio have therefore been corrected retroactively, taking into account the stock splits. [Changes in cash flow (in million yen)] Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities [Changes in goodwill (in million yen)] FY 2012 FY 2013 FY 2014 FY 2015 FY ,936 3,602 4,568 6,298 10,353-2,018-2,604-10,135-8,078-20,540 1, ,824 10,239 11,542 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Goodwill balance ,369 7,876 15,385 Amortization of goodwill

27 26 Group Federation Management (1): High Growth Achieved through Active M&A Net sales doubled in two years through active M&A in addition to organic growth. March 2012 April 2013 April 2014 June 2015 August 2015

28 Group Federation Management (2): Group Federation Management that Maximizes the Strengths of Acquired Companies COPYRIGHT create restaurants holdings inc. All Rights Reserved. 27 Combine a variety of locations with specialties = Sustainable growth based on a strong portfolio : Existing 従来のビジネス領域 business domains 立地 ( Location ロケーション ) : Business グループ入後のビジネス領域 domains after entering the Group Japan 国内 Overseas 海外 Commercial Urban street front Suburban 商業施設立地繁華街 / 駅前ロードサイド facilities districts roadside Greater 中華圏 China ASEAN North 北米 America 専門性 ブランド ( Specialty ) (Brand) Overseas 海外事業会社 companies Enhancement of 海外拠点の拡充 overseas bases New 新規 M&As

29 28 Disclaimer The purpose of this material is to provide information regarding the financial results of the fiscal 2016 and is not intended to solicit investment in securities issued by the Company. Furthermore, although the contents in this material is prescribed based on reasonable assumptions of the Company at the time of publication, it does not warrant or guarantee the information s accuracy or completeness and is subject to change without prior announcement. <<For inquiries regarding IR>> Corporate Planning Division IR Team