annual report 2019 dessert okoku cafes. create restaurants inc. shabu sai dessert okoku station...
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Stock Code : 3387
Year Ended February 28, 2019
ANNUAL REPORT 2019
010_0170901371909.indd 2 2019/09/20 19:24:25
FY2017FY2015FY2013FY2011FY2009FY2007FY2005FY2003FY2001FY1999 FY2019
103,271113,525
52,52334,62437,734
38,889
26,780
11,4223,7481,248
Business Environment (as of February 28, 2019)
Number of Group companies: 13 in Japan and 9 overseas
Capital stock: 1,012 million yen
Number of outlets: 891 in Japan and 34 overseas
Number of brands: 218
Number of employees: 25,996
1999Started the restaurant business (May)Opened 5 restaurants, including the Italian restaurant Portofino in Daiba, Tokyo
2000Opened bulk opera-tion food court Food Bazaar in Gotemba Premium Outlet Mall
2005Opened the 1,600-seat Festival Food Court at the EXPO 2005 AichiListed on the Mothers section of the Tokyo Stock Exchange
2004Opened 100th restau-rant
2007Start of operation of subsidiary Create Kiss-ho Inc., a joint venture with KISSHO Co., Ltd.
2008Established joint venture Shanghai Yuyuan Tourist Mart Create Restaurants Management Co., Ltd.
2010Changed company name to create restau-rants holdings inc.Established subsidiary create restaurants japan inc. (current name: create restau-rants inc.)Opened a restaurant at the Expo 2010 Shanghai through Shanghai Yuyuan Tourist Mart Create Restaurants Manage-ment Co., Ltd.Established subsidiary create restaurants china Limited in Hong Kong
2011Established subsidiary create restaurants asia Pte Ltd. in SingaporeEstablished subsidiary create restaurants Shanghai co. ltd. in Shanghai, China as a wholly owned subsidiary of create restaurants china Limited
2012Acquired all shares of LE MONDE DES GOURMET INC. and made it a wholly owned subsidiary of create restaurants hong kong Ltd. as a wholly owned subsidiary of create restaurants china Limited
2013Acquired 74.6% of the shares of SFP Dining Co., Ltd. and made it a subsidiaryAcquired all shares of eatwalk Co., Ltd. and made it a wholly owned subsidiaryChanged the stock listing to the First Section of the Tokyo Stock Exchange
2014Acquired all shares of YUNARI Co., Ltd. and made it a wholly owned subsidiary Established subsidiary Create Restaurants Taiwan Co., Ltd. in Taiwan Acquired 99.97% of the shares of R21 Cuisine Co., Ltd., made it a consolidated subsidiary, and changed its trade name to Shanghai Bishoku Chushin Co., Ltd.Consolidated subsidiary SFP Dining Co., Ltd. listed on the Second Section of the Tokyo Stock Exchange
2015Through a joint incorporation-type company split (simplified corporation separation), the Company and con-solidated subsidiary create restaurants inc. established Gourmet Brands Company inc.Acquired 99.8% of the shares of KR Food Ser-vice Corporation and made it a consolidated subsidiaryAcquired all shares of RC JAPAN Co., Ltd. and made it a wholly owned subsidiary
2016Established subsidiary Create Restaurants NY Inc. in New YorkEstablished subsidiary Create Dining inc. through reorganiza-tion within the Group
2017SFP Dining Co., Ltd. transitioned to a holding company system and changed its company name to SFP Holdings Co., Ltd.
2018Acquired 51.0% of the shares of Route 9g Inc. and made it a subsidiary Acquired all shares of Create Bayside Inc. and made it a subsidiaryThe operations of two restaurants Aburiya Kinnosuke and Soba Totto were transferred to Create Restaurants NY Inc. Acquired all shares of Hashimoto Inc., made it a subsidiary, and changed its company name to YUZURU Inc. KR Food Service Corporation transi-tioned to a holding
company system and changed its company name to KR Holdings Corporation
2019SFP Holdings Co., Ltd. transferred its listing to the first section of the Tokyo Stock ExchangeTransition of create
restaurants holdings
M&A
Overseas development
Number of outlets
Net Sales (Millions of Yen)
100FY2004
outlets
300FY2006
outlets
500FY2014
outlets
Group Federation Management startedMulti-brand, multi-location strategy
The growth potential of create restaurants holdings
Route 9g Inc.
Create Kissho Inc. Shanghai Yuyuan Tourist Mart Create Restaurants Management Co., Ltd. (joint-venture company) (Shanghai)
create restaurants Shanghai co. ltd. (Shanghai)
create restaurants china Limited (Hong Kong)
create restaurants asia Pte.Ltd (Singapore)
Create Restaurants NY Inc.
Create Dining inc. (reorganization within the Group)
LE MONDE DES GOURMET INC.
create restaurants hong kong Ltd. (Hong Kong)
SFP Dining Co., Ltd.
eatwalk Co., Ltd.
Create Restaurants Taiwan Co., Ltd.
YUNARI Co., Ltd
Shanghai Bishoku Chushin Co., Ltd.
Gourmet Brands Company inc. (company split)
RC JAPAN Co., Ltd.
KR FOOD SERVICE CORPORATION
925outlets
Number of outlets
FY2019President & CEO Haruhiko Okamoto and Chairman Hitoshi Gotoh jointly founded create restaurants holdings inc. in May 1999.
Instead of taking the chain-store approach, which was dominant at that time, the Company adopted a strategy emphasizing
location rather than brand and brought a breath of fresh air to the restaurant industry and subsequently expanded its business.
In recent years, create restaurants holdings is proactively conducting M&A to further expand its business.
New Credo
We will grow around the world by continuously challenging and opening opportunities
We will always challenge with speed and creativity
We will create value through respectful and collaborative interaction among each unique business units
As a leading company, we will innovate to create a new future for the restaurant industry
We will contribute to society by providing colorful dining experiences to customers
* Effective from the fiscal year ended February 28, 2019, the Group adopted the International Financial Reporting Standards (IFRS). Accordingly, the figures for FY2019 are presented in accordance with IFRS.
119,281Million Yen
Revenue
*
Net Sales / Revenue
(on a consolidated basis)(including 22,158 part-time employees)
Create Bayside Inc.
Aburiya Kinnosuke Soba Totto
YUZURU Inc.
01ANNUAL REPORT 2019
America
Japan
Singapore
Hong Kong
Taiwan
Operating Companies and Brands
total 218brands925outlets
Domestic
891outlets
Overseas
34outlets
Development of formats attuned to location characteristicsThe create restaurants group plans and develops restaurants in a wide variety of formats ranging from casual food courts and izakaya to restaurants offering a more formal dining experience. When we create a restaurant format, we consider the characteristics of the location, occasions for use, and customer demographics; for instance, whether the location is a suburban shopping center, urban commercial facility, urban street front, downtown district, or suburban roadside.
As of February 28, 2019, we operated a total of 925 restaurants under 218 brands, including restaurants for Japanese cuisine such as sushi and shabu-shabu, Italian restaurants, cafes, Korean barbecue restaurants, Chinese restaurants, ramen restaurants, and dessert cafes.
Global business developmentThe Group currently operates restaurants in Asia, including in Singapore, Hong Kong, and Taiwan, and in North America (New York). In Asia, we mainly operate brands of Japanese cuisine (“washoku”), such as Shabu SAI shabu-shabu restaurants and MACCHA HOUSE cafes using traditional Japanese maccha (powdered green tea), which have been well-received. In North America, our restaurants include SushiNao, a modern Japanese sushi restaurant, and Aburiya Kinnosuke, a “robatayaki” grill restaurant.
Shopping centers
Based on its multi-brand, multi-location strategy, create restaurants operates outlets located primarily at large suburban shopping centers. Its diverse portfolio of brands ranges from all-you-can-eat buffet restaurants such as Shabu SAI specializing in shabu-shabu and Dessert Okoku cafes.
create restaurants inc.
Dessert OkokuShabu SAI
Station buildings and commercial facilities
Create Dining operates restaurants and cafes mainly at commercial facilities in the Tokyo Metropolitan area. Its sophisticated, wide-ranging high-end brands include HINA SUSHI upscale all-you-can-eat sushi restaurants.
Create Dining inc.
HINA SUSHI
LE MONDE DES GOURMET operates restaurants located primarily in department stores and other commercial facilities. Its brands are mainly Italian, including TANTO TANTO authentic Italian restaurants.
LE MONDE DES GOURMET INC.
TANTO TANTO
eatwalk Co., Ltd.eatwalk operates restaurants emphasizing vegetables that are located primarily in urban commercial facilities, such as Shin-Marunouchi Building. Its brands include AW kitchen Italian restaurants serving dishes made with lots of tasty, fresh vegetables, as well as other brands with an emphasis on vegetable dishes.
AW kitchen
Gourmet Brands Company operates outlets mainly at urban commercial facilities such as GINZA SIX. Its brands include JEAN FRANCOIS bakery cafes.
Gourmet Brands Company inc.
JEAN FRANCOIS
Create Bayside operates restaurants, mainly in IKSPIARI, a commercial complex adjacent to Tokyo Disney Resort. Its brands include Rainforest Cafe, which is an entertainment-style restaurant.
Create Bayside Inc.
Rainforest Cafe
Roadside
KR HOLDINGS mainly operates outlets at suburban roadside locations. Its brands include Kagonoya Japanese restaurants designed to appeal to people of every generation.
KR HOLDINGS CORPORATION
Kagonoya
Station front and downtown
SFP Holdings operates izakaya mainly in downtown districts in Tokyo, such as Shinjuku, Shibuya, and Ueno. Its brands include ISOMARU SUISAN seafood izakaya serving grilled fresh seafood dishes around the clock.
SFP Holdings Co., Ltd.
ISOMARU SUISAN
YUNARI operates outlets mainly at roadside locations and commercial facilities on the outskirts of Tokyo. Its brands include Tsukemen TETSU, the brand that led the tsukemen boom.
YUNARI Co., Ltd
Tsukemen TETSU
Route 9g operates outlets at street level in downtown Tokyo, such as in Azabu and Ebisu. Hainan Jeefan Shokudo, well-known restaurants specializing in Singaporean cuisine, is its brand.
Route 9g Inc.
Hainan Jeefan Shokudo
New members that joined the Group in or after 2018
YUZURU operates outlets mainly at roadside locations in Hokkaido. Its brands include YUZURU, which is well known for soba noodles called Gomasoba.
YUZURU Inc. (Joined the Group in December 2018)
YUZURU
Kiya Foods operates outlets mainly at street level in Ginza,Tokyo. Its brands include Ginza Kiya udon and soba restaurants.
Kiya Foods Co., Ltd. (Joined the Group in March 2019)
Ginza Kiya
Create Restaurants NY operates outlets in North America, focusing on downtown districts of New York. Its brands include Japanese restaurant Aburiya Kinnosuke.
Create Restaurants NY Inc.
Aburiya Kinnosuke
Overseas
create restaurants asia operates Japanese restaurants mainly at large shopping centers in Singapore. Its brands include Shabu SAI all-you-can-eat buffet restaurants specializing in shabu-shabu.
create restaurants asia Pte. Ltd.
Shabu SAI
create restaurants hong kong operates outlets mainly at shopping centers in Hong Kong. Its brands include MACCHA HOUSE cafes specializing in food and drinks using maccha (powdered green tea).
create restaurants hong kong Ltd.
MACCHA HOUSE
Create Restaurants Taiwan operates MACCHA HOUSE cafes based on the theme of maccha (powdered green tea) in downtown districts in Taiwan.
Create Restaurants Taiwan Co., Ltd.
MACCHA HOUSE
CLOOC DINING CO., LTD. (Joined the Group in July 2019 as a result of M&A by SFP)
CLOOC DINING operates outlets mainly at street level in downtown districts in Nagano Prefecture. Its brands include Karaage Center restaurants specializing in Japanese-style fried chicken.
Karaage Center
Joh Smile operates outlets mainly at street level in downtown districts in Kumamoto Prefecture. Its brands include Maekawa Suigun izakaya.
Joh Smile Corporation (Joined the Group in March 2019 as a result of M&A by SFP)
Maekawa Suigun
02 03create restaurants holdings inc. ANNUAL REPORT 2019
Message from the Management
Marking the 20th Anniversary
Haruhiko Okamoto
President & CEO
Subsequently, the three revised major laws for community
development came into force in 2007, resulting in fewer openings
of shopping malls and thus in the Group opening fewer outlets.
Therefore, we judged that autonomous opening of new outlets
would be impossible without changing the strategy and
transitioned to a holding company system in 2010 and a new
strategy called “Group Federation Management.”
The basic strategy of “Group Federation Management” is
threefold: 1) organic outlet openings, 2) quality M&A in Japan
and overseas, and 3) further global expansion into North America
and new markets in the ASEAN region.
Of these strategies, the second item, promotion of M&A
became a major engine for our growth. In the years from 2012 to
2019, we executed 13 M&A deals and our scope of business
expanded rapidly as a result of large-scale M&A deals, especially,
the acquisitions of SFP Holdings in 2013 and KR Holdings in 2015.
The most recent M&A deals include the acquisition of Kiya
Foods Co., Ltd. in March 2019, which operates 7 outlets,
including Ginza Kiya udon and soba restaurants mainly in Ginza,
Tokyo. Through our subsidiary SFP, Joh Smile Corporation which
operates 19 outlets, including Maekawa Suigun izakaya in
Kumamoto, joined the Group.
Shifting to Group Federation Management by adopting a holding company system
When we launched the business in 1999, increasing the number
of outlets based on a chain-store approach was a dominant
strategy in the restaurant industry. As a latecomer to the
restaurant industry without a powerful established brand, we
judged that we would have no chance if we adopted the same
strategy as major chain operators. We, therefore, decided to
emphasize the location rather than the brand and thus create a
brand suitable for the location. This was the origin of our multi-
brand, multi-location strategy.
What locations would attract customers but little competition?
Commercial facilities, such as shopping malls and outlet malls,
which were increasing at that time, were the ideal locations. By
developing brands attuned to the needs of the developer of each
shopping facility, we created and operated original brands unique
to the facilities. Responding to the needs of the developers gave
us opportunities to open outlets at numerous commercial
facilities subsequently, leading to a rapid increase in the number
of outlets.
Number of outlets increased based on the multi-brand, multi-location strategy that we have been pursuing since our foundation
From the fiscal year ending February 29, 2020, through further
evolution of Group Federation Management, we will pursue
sustainable, powerful growth with the aim of achieving annual
revenue of 200 billion yen over the medium to long term.
Specifically, we will continue to vigorously investigate M&A
opportunities in Japan and overseas. Especially Overseas, our
focus is on promoting M&A opportunities in North America. By
tackling new genres, experiences, etc. while utilizing the
“business format development capabilities” the Group has
cultivated so far, we will develop a business portfolio with rich in
specialization and diversity to secure competitiveness. Moreover,
we will further strengthen horizontal ties among Group
companies and increase the flexibility of our outlet opening plan,
including franchising within the Group and format changes across
Group companies. At the same time, we will maximize Group
synergy by expanding joint procurement of foodstuffs commonly
used in the Group.
Further evolution of Group Federation Management
We marked our 20th anniversary in
May 2019. I would like to thank our
customers, shareholders, employees,
and all other stakeholders for their
support.
05ANNUAL REPORT 201904 create restaurants holdings inc.
Message from the Management
Our aspiration to always be of benefit to the world no matter
what kinds of companies join us is also embodied in the Group
Mission. This aspiration did not suddenly appear but is what I
have been thinking about “What kind of enterprise should the
create restaurants group become? “for a long time.
The Group Mission expresses this thinking, too.
Unlimited excitement !
Our job is to give our customers and the world exciting
experiences. But it is equally important that we, those who serve
the customers, experience this excitement, too. Not just
excitement now or in the past but continuous and expanding
excitement without limit. This is the most important thing.
Welcome diversity
Our group has diverse brands and diverse people. Customers are
diverse, too. Respect each individual and do not enforce a single
one-size-fits-all approach. Rather than having one strong or
distinct personality, it is good to have diverse people and diverse
exciting experiences coexisting. To put it in just two words,
“diverse personalities” are what we need.
Collaborate to create
It is important to work together to create value by sharing
excitement, respecting one another, and sometimes challenging
one another. By “together,” I mean not only collaboration among
staff at an outlet but also collaboration among outlets,
collaboration among companies—indeed, every imaginable type
of collaboration. People are not perfect and can make mistakes
or fail. But they are also capable of correcting mistakes and
turning failure to success. You will derive pleasure from working
together as a team. The achievement of creating something is not
the only wonderful thing. The process of collaborating and what
you feel while collaborating also have value and are wonderful.
The Group Mission expresses what all the members of the Group are working together for and what the Group aims to accomplish.
New Group Mission established, marking the 20th anniversary
Marking the 20th anniversary of the create restaurants group, we established the Group Mission and these words came up.
Surprise the world
Let's create a thrilling future together with co-workers who have
diverse personalities, sharing the excitement. I want everyone in
the group to surprise the world and themselves by “what they
become” and “what they accomplish” and our customers and
society to be surprised by “our outlets and the create restaurants
group of companies are great”.
Being surprised is being impressed.
The Group Mission is a mission shared by everyone in
the group.
If you are president of a company, while making your company’s
personality stand out, you should respect and collaborate with
other companies to create a glorious future. Restaurants should
collaborate with one another in pursuit of new development.
Head offices should collaborate beyond the borders of companies
to create new systems. “Don’t care about others” is not the right
approach. I would like to welcome new members to the Group
who share our thinking.
We sometimes work alone (one company), and we sometimes
work together with other members of the group (other
companies). This notable characteristic of the create restaurants
group makes us stand out in the restaurant industry. I am
convinced that the Group Mission we have newly established will
become the group DNA that enables us to prevail amid relentless
competition in the industry, even though it may take decades.
Unlimited excitement!Welcome diversityCollaborate to createSurprise the world
06 07create restaurants holdings inc. ANNUAL REPORT 2019
Medium Term Management PlanThe create restaurants group will continue pursuing and evolving “Group Federation Management” of multiple operating
companies with diverse specialties by establishing efficient systems and infrastructure under a holding company structure to
achieve growth as a group.
*1 FY2020 Revised Forecast states the figures announced in the Notice of Revisions to Business Forecasts on July 12, 2019.*2 Adjusted EBITDA for FY2020 Revised Forecast reflects the impact of the adoption of IFRS 16.
* The Group adopted International Financial Reporting Standards (IFRS) from the full-year results of the fiscal year ended February 28, 2019. Accordingly, the results for the fiscal year ended February 28, 2018 state both the figures converted in accordance with IFRS and those under the Japanese GAAP for reference.
FY2020 Revised Forecast FY2021 Plan FY2022 Plan
Revenue (Millions of Yen) 130,000 137,000 152,000
Growth rate 109.0% 110.5% 110.9%
Operating profit (Millions of Yen) 6,700 7,500 9,600
Profit before taxes (Millions of Yen) 6,300 6,600 8,600
Profit for the year (Millions of Yen) 4,000 4,500 5,800
Profit attributable to owners of parent (Millions of Yen) 3,300 3,700 5,000
Adjusted EBITDA (Millions of Yen) 22,700 13,500 16,100
Medium Term Management Plan (Numeric Target)
New Medium Term Management Plan
Progress
2001 2002 2003 2004 2005 2015201420132012201120102009200820072006 2016 2021201920172000
137,000
2020
130,000119,281116,522
2018(Ref.)2018
116,567
2022
152,000
J-GAAP IFRS
Medium Term Management Plan
Net sales
Three Growth Strategies
1 M&A strategy (in Japan and overseas) 2 Further strengthening of
brand creation capabilities 3 Further evolution of Group Federation Management
Three Growth Strategies
1 M&A strategy (in Japan and overseas) 2 Further strengthening of
brand creation capabilities 3 Further evolution of Group Federation Management
Target: Net sales of 152 billion yen in 2022
Recognition of the Business Environment
Diversifying customer needs; intensifying competition with other restaurants and home-meal replacement
More M&A candidates centering on businesses for succession and businesses owned by private equity funds
Securing high-quality human resources has become the most important management issue
Achieve revenue of 200 billion yen over the medium to long term
Achieve sustainable, powerful growth
In Japan, our M&A targets are companies that have brands with a competitive edge and are suitable for multi-outlet operations. Regardless of the scale of the business, we will acquire the entire operation, including human resources. We are also promoting M&A in local cities and implementing area strategies focusing on local areas based on the food alliance concept (M&A by SFP).
Overseas, our focus is on finding M&A targets in North America. We will promote a strategy of “buying time” by acquiring businesses, including local management teams. In Asia, in addition to M&A, franchising and business development through joint ventures are other options for us. We have established a department in North America to examine possible business investments. Moreover, having established the Overseas Business Division at the head office, we will further accelerate overseas expansion.
Securing competitiveness is increasingly important nowadays as one's “capabilities to respond to change” are tested. By combining our “business format development capabilities” to develop diverse brands according to the location, which we have cultivated since our foundation, with the new opening of outlets at different locations than before and various new attempts in terms of genres, experiences, etc., we will develop a business portfolio rich in specialization and diversity capable of responding to all kinds of customer needs in order to prevail in the era.
In order to maximize synergy throughout the Group, create restaurants holdings has taken the initiative in creating synergy among Group companies. Going forward, however, we will encourage Group companies to pursue mutual synergy with other Group companies. For example, the brands and the sites owned by an operating company have hitherto only been used by that operating company. However, we will increase the flexibility of our outlet opening strategy, including franchising within the Group and format changes across Group companies, as well as opening of outlets of a brand by another operating company in the Group in locations where that brand has never before opened outlets. Regarding procurement, we will strive to reduce the cost of sales ratio through joint procurement of common foodstuffs used in the Group (seasoning, alcoholic beverages, meat, wasabi, etc.) to take advantage of volume discounts.
08 09create restaurants holdings inc. ANNUAL REPORT 2019
Number of outletsOperating income (Millions of Yen)
Operating margin (%)
(Yen)Cash dividends Per share Number of brands Number of employees Number of shareholdersProfit attributable to owners of parent (Millions of Yen)
Profit attributable to owners of parent per share (Yen)
52,523
69,309
103,271113,525 116,567 116,522 119,281
2015 2016 2017 2018 2019J-GAAP IFRS
2015 2016 2017
616
795857
2018
864
2019
925
2015 2016 2017
167
197 200
2018
194
2019
218
2015 2016 2017
2,259
3,171
3,605
2018
3,508
2019
3,838
2015 2016 2017
23,373 26,397
81,388
2018
107,827
2019
119,293
6,110
3,975
6.0 6.5
5.2
4,164
6,749
5,8576,413
5.5 5.2
3.3
2015 2016 2017 2018 2019J-GAAP IFRS
68.8235.19
34.89
6,495
3,321 3,293
26.50 29.07
2,501 2,743
14.05
1,321
2015 2016 2017 2018 2019J-GAAP IFRS
2015 2016 2017
7.56
11.6713.00
2018
10.00
12.00
2019
12.00
J-GAAP IFRS
Net Sales / Revenue (Millions of Yen)
Operating income Profit attributable to owners of parent
Operating margin Profit attributable to owners of parent per share
Millions of Yen,except for Number of brands, Number of outlets and Number of employees
Thousands of U.S. Dollars
(Note)
2015 2016 2017 2018 2018 2019 2019J-GAAP J-GAAP J-GAAP J-GAAP IFRS (Ref.) IFRS IFRS
For the yearNet Sales / Revenue ¥ 69,309 ¥ 103,271 ¥ 113,525 ¥ 116,567 ¥ 116,522 ¥ 119,281 $ 1,071,037 Gross profit 49,939 73,501 80,701 83,034 82,997 84,966 762,921 Operating profit 4,164 6,749 5,857 6,413 6,110 3,975 35,699 Profit attributable to owners of parent 6,495 3,321 3,293 2,501 2,743 1,321 11,863
Cash flow from operating income / Cash flow from operating activities 6,298 10,352 10,054 11,887 11,912 8,364 75,101
Cash flow from investing income / Cash flow from investing activities (8,077) (20,540) (9,266) (5,677) (5,665) (4,886) (43,876)
Cash flow from financing income / Cash flow from financing activities 10,238 11,542 (6,241) (3,327) (3,470) (2,900) (26,039)
At year-endTotal assets ¥ 47,034 ¥ 72,530 ¥ 71,364 ¥ 72,222 ¥ 71,409 ¥ 72,459 $ 650,619 Net assets / Total equity 19,676 22,996 25,701 26,548 24,438 23,996 215,469 Number of brands 167 197 200 194 218 Number of outlets 616 795 857 864 925 Number of employees 2,259 3,171 3,605 3,508 3,838
Yen U.S. Dollars
Per share
Net income (EPS) / Basic earnings per share ¥ 68.82 ¥ 35.19 ¥ 34.89 ¥ 26.50 ¥ 29.07 ¥ 14.05 $ 126.16
Net assets (BPS) / Equity per share attributable to owners parent 161.55 185.42 206.67 213.98 191.09 175.19 1,573.04
Cash Dividends (DPS) 7.56 11.67 13.00 10.00 12.00 107.75
%
Ratio
Shareholders' equity / Total assets / Ratio of equity attributable to owners of parent 32.4 24.1 27.3 28.0 25.3 22.6
Operating margin 6.0 6.5 5.2 5.5 5.2 3.3Return on assets (ROA) 15.7 5.6 4.6 3.5 3.9 1.8Return on equity (ROE) 52.9 20.3 17.8 12.6 15.6 7.7Price earnings ratio (P/E ratio) (Times) 7.4 27.7 28.0 45.3 41.3 92.5
Notes: 1. Amounts in US dollars in this report are for convenience only. Yen amounts are translated into US-dollar amounts at the rate prevailing as of February 28, 2019, which is ¥111.37 to the US dollar. 2. EPS, BPS, and DPS are adjusted retroactively due to a share split-up in the ratio of 1 stock to 3 effective upon March 1, 2016. 3. Number of outlets includes licensed businesses, franchised stores and overseas joint ventures as of February 28, 2019.
* As for numerical management by category, the Company previously used “category profit” calculated based on ordinary income under Japanese GAAP, but in line with the adoption of IFRS from the fiscal year ended February 28, 2019, the Company changed the indicator for presentation to “category cash flow” calculated based on adjusted EBITDA.For figures presented based on Japanese GAAP, “category profits” are presented as reference figures.
* The sum of percentage sales figures for all the categories is 100.6%. However, it is excluded -0.6% for head office expenses, etc. adjustment.
create restaurants holdings inc. and Consolidated SubsidiariesYears ended the last day of February
Financial and Non-financial Highlights
CR Category SFP Category Specialty Brands Category Overseas Category
Point In FY2019, opened 21 new
outlets, including restaurants
specializing in roast beef bowl dishes
and cafes, and closed 11 outlets.
Point In FY2019, opened 18 new
outlets, including ISOMARU SUISAN
seafood izakaya, Ichi-goro izakaya
specializing in gyoza Chinese
dumplings, and Go-no-Go Japanese-
style pubs, and closed 4 outlets.
Point In FY2019, opened 15 new
outlets, including Kagonoya Japanese
restaurants, Azusa Coffee cafes,
Yasai-ya Mei Japanese restaurants,
and JEAN FRANCOIS bakery cafes,
and closed 8 outlets.
Point In FY2019, opened 6 new
outlets, including Shabu SAI restaurants specializing in shabu-
shabu in Singapore and Hong Kong,
and closed 5 outlets.
Consists of restaurants and food courts operated by create restaurants, Create Dining, and Create Bayside under various brands mainly at commercial facilities.
Consists of outlets operated by SFP Holdings, with which the Company entered into a capital tie-up in April 2013. Operates izakaya in urban downtown districts.
Consists of outlets operated by seven domestic subsidiaries (LE MONDE DES GOURMET, eatwalk, YUNARI, Gourmet Brands Company, KR HOLDINGS, Route 9g, and YUZURU) mainly at suburban roadside locations and urban commercial facilities.
Japanese restaurants mainly at commercial facilities, street-front locations, and in downtown districts in Singapore, Hong Kong, Taiwan, and North America (New York).
2017
42,862
2018
43,735 45,633
2019
43,735
J-GAAP IFRS
3,710 4,050
5,4174,971
2017 2018 2019J-GAAP IFRS
3,560 3,828 4,538
5,345
2017 2018 2019J-GAAP IFRS
1,3161,674
2,953
2,205
2017 2018 2019J-GAAP IFRS
280 240
(89)(0)
2017 2018 2019J-GAAP IFRS
35,957 36,841 36,841 37,751
2017 2018 2019J-GAAP IFRS
31,530 33,177 33,65933,177
2017 2018 2019J-GAAP IFRS
3,167 2,834 2,834 2,987
2017 2018 2019J-GAAP IFRS
Net sales / Revenue (Millions of Yen) Net sales / Revenue Net sales / Revenue Net sales / Revenue
Cash flows of each category Cash flows of each category Cash flows of each category Cash flows of each category
Composition of revenue
38.3%
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen)
(Millions of Yen) (Millions of Yen)
31.6%
Composition of revenue
28.2%
Composition of revenue
2.5%
Composition of revenue
Effective from the fiscal year ended February 28, 2019, the Group adopted the International Financial Reporting Standards (IFRS).
However, the results for the fiscal year ended February 28, 2018 are presented both in accordance with the Japanese GAAP and the IFRS.
10 11create restaurants holdings inc. ANNUAL REPORT 2019
The Company is keenly aware of the need for business to fulfill its social responsibility and considers the pursuit of
transparent corporate activities that reflect awareness of compliance to be one of the important tasks of management.
Recognizing that enhancing and maximizing enterprise value is the fundamental objective of corporate governance for a
listed company, the Company is developing a corporate governance structure that enables fair, transparent, prompt and
appropriate management and executive decisions that accord importance to shareholder value and the fulfillment of
corporate responsibility, promoting management efficiency and continuously enhancing enterprise value. For this purpose,
the Company intends to enhance corporate governance by focusing on further enhancing and developing not only the
management structure, but also organizations and systems.
Measure to Compliance Risks
The Company has installed the following systems in order to ensure that performance of duties by Directors and employees
complies with laws and regulations and the Articles of Incorporation.
1. Based on the Code of Conduct and the Basic Rules for the Organization and Implementation of Compliance, the Company
provides periodic education and training to its officers and employees as part of efforts to ensure that they act in accordance
with laws and regulations and the Articles of Incorporation as well as social norms.
2. The Company’s President serving as the Chief Compliance Officer is making efforts to enhance compliance awareness
throughout the Company.
3. The Team Leader of the Stand-alone Accounting Team performs duties in accordance with the Accounting Rules in order to
prepare appropriate financial statements and is making efforts to ensure compliance.
4. The Company has established internal whistleblowing systems concerning compliance matters, namely, a dedicated email
contact for compliance matters and a hotline for reporting to the legal advisor, separate from the reporting line to the
department head. These systems facilitate early detection of any conduct contrary to laws and regulations as well as swift and
appropriate responses to such conduct.
5. In addition to periodic auditing of each department of the Company, the Group Internal Auditing Division periodically meets
the Chief Compliance Officer and the Audit & Supervisory Committee to exchange information.
6. The Code of Conduct requires its officers and employees to have no relationships with antisocial forces or groups that pose a
threat to the order and safety of society, or with companies, organizations, and individuals related to such antisocial forces, and
to refuse any unjust demands from them. The Company has established a system under which, in the event that antisocial
forces make any unjust demands, the responsible department manages information in an integrated manner and implements
swift countermeasures, including consultation with the competent police station.
Evaluation of the Effectiveness of the Board of Directors
The Corporate Governance Code states “Each year the board should analyze and
evaluate its effectiveness as a whole, taking into consideration the relevant matters,
including the self-evaluations of each director. A summary of the results should be
disclosed.” The Company conducted a questionnaire survey for all the Directors
including those who are Audit & Supervisory Committee Members about the
composition and operation of the Board of Directors, and the provision of
information, and Directors exchanged opinions based on the results of the
questionnaire. In light of the discussion, the Board of Directors analyzed and
evaluated its effectiveness and the Company confirmed that it is operated effectively
in order for the Company to achieve sustainable growth and enhancement of
corporate value over the medium- to long-term.
Measure to the Corporate Governance CodeExamples of Initiatives
Basic Policy on Corporate Governance
Corporate Governance Organizational Structure
Ordinary General Meeting of Shareholders
Divisions and Operating Companies
Audit & Supervisory Committee3 Directors who are Audit &
Supervisory Committee Members (of whom 2 are Outside Directors)
Directors5 members
(Excluding Audit & Supervisory Committee Members)
Executive DirectorsExecutive Operating Officers
Internal Control Systems Development Office
Accounting AuditorPresident and Representative DirectorLegal Advisor
Meeting of the Group’s Presidents
Group Internal Auditing Division
Election/dismissal
Selection/removal
Consultation/advice
Deliberation/reporting
Direction/supervision
Direction/reporting
Direction/reporting Direction/reporting
Reporting/recommendation
AuditDevelopment of internal control systems
Election/dismissal
Audit
Audit
Cooperation
Election/dismissal
Supervision
Board of Directors
Overview of Corporate Governance
Form of Organization Company with audit & supervisory committee
Chairman of the Board of Directors Haruhiko Okamoto
Number of Directors * 5
Number of Audit & Supervisory Committee Members 3, of whom 2 are Outside Directors
Appointment of Independent Officers 2 Outside Directors appointed
Total Compensation for Directors Total compensation for the fiscal year ended February 2019: 169 million yen for 5 Directors
Total Compensation for Audit & Supervisory Committee Members
Total compensation for the fiscal year ended February 2019: 17 million yen for 3 Audit & Supervisory Committee Members (of which, 7 million yen for Outside Directors)
Accounting Auditor Deloitte Touche Tohmatsu LLC* Excluding Directors who are Audit & Supervisory Committee Members
Corporate Governance
12 13create restaurants holdings inc. ANNUAL REPORT 2019
Activities of the Food Safety and Security Promotion Office
1. Preparation of rules and manuals
The office sets standards for sanitation management,
labeling, and other matters in outlet operating manuals and
sanitation management manuals and rigorously maintains
product quality and ensures legal compliance.
2. Employee awareness activities
The office engages in employee awareness activities to
ensure ethical conduct from the customer’s perspective and
compliance with rules and raises awareness using bulletin
boards, sanitation comic strips, and other means. Such
activities are stepped up at the time of the year when hot,
humid weather increases the risk of food poisoning
outbreaks and during annual events.
3. Information sharing
In the event that an incident occurs, the office strives to
determine the cause and prevent any recurrence. The office
promptly responds to customers and submits an accident
report. It also gathers and shares information on incidents
that occur inside and outside the Group as well as
amendments to laws and regulations, swiftly implement
measures and strives to prevent recurrence.
For companies newly joining the Group, information
sharing is the top priority to enhance the partnerships.
The Food Safety and Security Promotion Department gathers information on
incidents that occur inside and outside the Group and information on law
revisions and takes the initiative in periodically sharing information among Group
companies. In particular, information on the causes of the incidents and
countermeasures are shared in order to prevent recurrence at other outlets.
Measures at operating companies and outlets
1. Handling of cooking ingredients and prepared dishes, accident
countermeasures
We manage cooking ingredients using date labels to thoroughly prevent the use
of ingredients after their use-by dates. We do not top up table seasonings and
we manage expiration dates using predetermined time periods to prevent quality
defects in seasoning.
2. Food poisoning and contamination countermeasures
Employee sanitation management measures include requiring thorough hand
washing, the provision of health checks, and performance of intestinal tests and
individual sanitation inspections of all workers.
Outlet facility sanitation management measures include requiring thorough
cleaning, sanitation inspections conducted by outside organizations, and
announcements to promote periodic replacement of utensils and tableware to
ensure replacement of damaged items.
3. Information provision and management
We verify statements on menus at outlets and departments at three stages—
recipe preparation, request for production of printed materials, and the start of
menu item provision—ensuring legal compliance and statements that are valid
and not misleading.
We comply with the Rice Traceability Act with respect to rice dishes and the
Beef Traceability Act with respect to domestically produced beef handled at
outlets that supply specific cuisine, recording and retaining information and
providing information to customers.
To prevent health hazards to customers with food allergies, we provide
information concerning allergens in menu items.
We conduct computerized management of information on procured cooking
ingredients, such as temperature range, country of origin or final processing site,
and allergen information for each raw material.
We obtain product planning documents for processed products and check for
allergens.
Measure to the Corporate Governance CodeExamples of Initiatives
Basic Policy on Corporate Governance
Corporate Governance
Date label
Activities of the Food
Safety and Security
Promotion Office
Sanitation comic strip
Message - Food Safety and SecurityVarious problems have occurred in the food industry, such as incidents due to causes including radiation, residual agricultural
chemicals, avian flu, BSE, food poisoning, and food allergies.
Incidents of menu mislabeling, intentional poisoning of food products, and use of food products after use-by dates by
manufacturers that supply large restaurant chains have occurred, and customer interest in food safety and security continues
to rise.
The entire create restaurants group will continue making a concerted effort to maintain product quality and earn the trust
of customers, in order to provide safe products and enable customers to enjoy food with confidence and peace of mind.
Food Safety and Security Promotion Office
Measures for Operational Risks
Food safety and security measures
The create restaurants group recognizes that providing safe menus that enable customers to enjoy great food and pleasurable
dining experiences with confidence and peace of mind is a matter of the highest importance to a restaurant company. Accordingly,
the Group makes every effort to instill and raise awareness of food safety and security in all officers and employees.
The Group, mainly through the Food Safety and Security Promotion Office, repeatedly communicates with employees on the
ethics of ensuring food safety and security from the customer’s perspective, and implements measures to ensure recognition that
earning the trust of customers is at the very heart of the Group’s business philosophy.
We review manuals on the handling of prepared dishes and ingredients as needed, provide rigorous employee education, and
strive to strengthen outlet operation in accordance with the manuals.
Furthermore, we are reviewing mechanisms for information sharing between outlets and the head office to speed up reporting
and communication systems within the Company and among Group companies while also working to strengthen communication
and teamwork within outlets.
Preparation of rules
Awareness activities
Information gathering and
sharing
14 15create restaurants holdings inc. ANNUAL REPORT 2019
The following is an analysis of the Company’s financial position and business performance for the consolidated fiscal year
ended February 28, 2019.
Forward-looking statements contained herein represent the judgment of the create restaurants group as of the date of
issuance of this annual report.
Analysis of Business Performance in the Consolidated Fiscal Year Ended February 28, 2019During the current fiscal year, the Japanese economy continued
to recover moderately against the backdrop of the effects
of various policies and improvements in corporate earnings,
employment environment and income environment. However,
the outlook remained uncertain due to concerns over the
continued uncertainty in the political and economic situation and
geopolitical risks overseas, including intensifying trade friction
between the United States and China.
In the restaurant industry, although consumer sentiment is
improving moderately, the business environment remains severe
due to the effects of natural disasters such as the Northern Osaka
Prefecture Earthquake and unseasonable weather, mainly in
western Japan, in addition to the persistently high price of raw
materials due to the rise in logistics costs and the rise in labor
costs due to the prolonged labor shortage.
In this environment, our Group was entrusted with the
collective management of "HIBIYA FOOD HALL" in March, which
is located on the first basement floor of Tokyo Midtown Hibiya,
and opened eight outlets with our three Group companies. In
November, our Group opened the “Morton's The Steakhouse”, a
long-established steak format originating in Chicago, the United
States, as the first outlet in Japan, in Marunouchi, Tokyo. In
addition, our Group systematically opened specialty restaurants
and new brands in commercial facilities, downtown districts,
station fronts, and suburban roadside locations, opening 60 new
outlets and closing 29 outlets. As a result of M&A, 17 outlets
of Create Bayside Inc. were newly consolidated from the first
quarter. In addition, 10 outlets of YUZURU Inc. and 2 outlets
of Create Restaurants NY Inc. were newly consolidated from
the fourth quarter. In addition, as a result of aggressive brand
changes and renovations, the number of consolidated outlets
including subcontracted outlets at the end of the current fiscal
year was 925.
As a result of the above, revenue for the current fiscal year
was 119,281 million yen (up 2.4% year on year), operating profit
was 3,975 million yen (down 34.9% year on year), profit before
taxes was 3,688 million yen (down 37.4% year on year), profit for
the year was 2,072 million yen (down 45.7% year on year), and
profit attributable to owners of the parent was 1,321 million yen
(down 51.8% year on year). Adjusted EBITDA decreased 12.1% to
10,814 million. (Note 1)
Reportable segments are omitted because there are no
reportable segments other than the restaurant business.
The status of each categories in the restaurant business is as
follows.
Net sales: 45,633 million yen
Number of outlets: 444
This category consists of the outlets operated by create
restaurants inc., Create Dining inc., and Create Bayside Inc., and
operates restaurants and food courts under a variety brands
mainly in commercial facilities.
CR Category
Net sales: 37,751 million yen
Number of restaurants: 239
This category consists of outlets operated by SFP Holdings
Co., Ltd., and operates izakaya restaurants, such as ISOMARU SUISAN, Toriyoshi, and Toriyoshi Shoten brands, mainly in urban
downtown districts.
SFP Category
Net sales: 33,659 million yen
Number of restaurants: 208
This category consists of outlets operated by our domestic
subsidiaries: LE MONDE DES GOURMET INC., eatwalk Co., Ltd.,
YUNARI Co., Ltd., Gourmet Brands Company inc., KR HOLDINGS
CORPORATION, Route 9g Inc., and YUZURU Inc. They operate
specialty restaurants, taking advantage of their distinctive
characteristics, mainly at suburban roadside locations and urban
commercial facilities.
Specialty Brands Category
Net sales: 2,987 million yen
Number of restaurants: 34
This category consists of overseas outlets, including outlets
operated by create restaurants asia Pte. Ltd. in Singapore, create
restaurants hong kong Ltd. in Hong Kong, Create Restaurants
Taiwan Co., Ltd. in Taiwan, and Create Restaurants NY Inc. in the
United States.
Overseas Category
Outlook for the Year Ending February 29, 2020Regarding the outlook for the next fiscal year, the Japanese
economy is expected to continue its moderate recovery trend
against the backdrop of improvements in corporate earnings and
the employment environment. However, the situation remains
unpredictable due to uncertainties in the political and economic
situation, such as the U.S.-China trade friction and the Brexit,
as well as concerns over the continuation of geopolitical risks
overseas, such as the situation in North Korea.
In the restaurant industry, despite the support from inbound
demand from foreign visitors to Japan, personal consumption is
becoming increasingly concerned about the future, and a sense
of deflation is becoming firmly established. In addition, there
are concerns about the impact of the consumption tax hike
scheduled for October 2019. We can not be optimistic about the
cost environment, as labor costs will continue to rise due to labor
shortages, and investment-related costs are expected to soar due
to the construction boom toward the Tokyo Olympics.
In such environment, our Group will continue to aggressively
open outlets in highly profitable locations and develop new
business formats. At the same time, our Group will strengthen
the foundations for mutual synergies among Group companies
by making full use of our ability to respond to changes, which is
a strength of our Group Federation Management. Specifically,
our Group will implement business format changes across Group
companies and develop franchises within our Group. In addition,
we will continue to actively consider M&A, both in Japan and
overseas, as a major driver of growth. In particular, we have
established the North American Business Investment Department
for overseas operations, and are actively working to develop
projects in North America.
Based on the above, as for the full-year forecasts for the fiscal
year ending February 2020, we forecast revenue of 130,000
million yen, operating profit of 6,700 million yen, profit before
taxes of 6,300 million yen, profit for the year of 4,000 million yen,
and profit attributable to owners of the parent of 3,300 million
yen. Adjusted EBITDA is expected to be 22,700 million yen.
Analysis of Assets, Liabilities, and Net AssetsAssets at the end of the current fiscal year amounted 72,459
million yen (up 1.5% year on year). This was mainly due to
increases of 1,082 million yen in other current assets, 582 million
yen in cash and cash equivalents, and 331 million yen in goodwill.
Liabilities at the end of the current fiscal year amounted to
48,462 million yen (up 3.2% year on year).This was mainly due
to increases of 1,476 million yen in other current liabilities and
666 million yen in bonds and borrowings, despite 911 million yen
decrease in income taxes payable.
Assets at the end of the current fiscal year amounted to
23,996 million yen (down 1.8% year on year).
Analysis of Cash FlowsCash and cash equivalents (hereinafter referred to as "cash") for
the current fiscal year resulted in an increase in cash flow from
operating activities of 8,364 million yen (down 29.8% year on
year), a decrease in cash flow from investing activities of 4,886
million yen (down 13.7% year on year), a decrease in cash flow
from financing activities of 2,900 million yen (down 16.4% year
on year), and an increase in cash balance of 13,248 million yen (up
4.6% year on year), including translation differences.
Cash flows from operating activities
Net cash provided by operating activities was 8,364 million yen.
This was mainly due to recording of income taxes paid of 3,785
million yen and depreciation and amortization was 4,196 million
yen, despite the payments for income before income taxes of
3,688 million yen.
Cash flows from investing activities
Net cash used in investing activities was 4,886 million yen. This
was mainly due to purchase of property, plant and equipment of
3,658 million yen.
Cash flows from financing activities
Net cash used in financing activities was 2,900 million yen. This
was mainly due to proceeds from long-term loans payable of 7,931
million yen and repayment of long-term loans payable of 5,235
million yen.
Dividend Policy and Dividend PaymentsThe Company considers returning profit to shareholders to be
an important management issue. Our basic policy is to pay
stable dividends, taking into account factors such as business
performance and future business development. The Group will
use internal reserves as a source of funds for purposes such as
investment for new restaurant openings and capital investment
to reinforce personnel development and internal control systems,
with the ultimate objective of increasing corporate value.
The Company paid an interim dividend of 6.00 yen per share
and a year-end dividend of 6.00 yen per share, and thus the
total cash dividends for the fiscal year ended February 28, 2019
amounted to 12.00 yen per share. The Company plans to pay an
interim dividend of 6.00 yen per share and a year-end dividend
of 6.00 yen per share, and thus the total cash dividends for the
fiscal year ending February 29, 2020 will amount to 12.00 yen per
share.
Management’s Discussion and Analysis
* Effective from the fiscal year under review (from March 1, 2018 to February 28, 2019), the create restaurants group adopted the IFRS instead of the Japanese GAAP, which the Group had been applying. Accordingly, the figures for the previous fiscal year are restated in accordance with the IFRS for comparative analysis.
Notes: 1. Adjusted EBITDA is used as a useful indicator of our financial results. The formula for calculation of adjusted EBITDA is as follows. Adjusted EBITDA=Operating profit + Other operating expenses - Other operating profit
excluding sponsorship revenues + Depreciation and amortization + Nonrecurring expens-es items (advisory expenses related to share acquisitions, etc.)
*1 The figures stated in forecast of consolidated business results for the fiscal year ending February 2020 are the same as those stated in “Notice of Revisions to Business Forecasts” announced on July 12, 2019.
*2 Adjusted EBITDA reflects the impact of the adoption of IFRS 16.
16 17create restaurants holdings inc. ANNUAL REPORT 2019
Millions of YenThousands ofU.S. Dollars
Assets 2018(Ref.) 2019 2019
Current assets
Cash and cash equivalents ................................................................................................. ¥ 12,665 ¥ 13,248 $ 118,961
Trade and other receivables .............................................................................................. 2,923 3,107 27,902
Other financial assets......................................................................................................... 0 – –
Inventories .......................................................................................................................... 511 536 4,818
Other current assets ........................................................................................................... 1,074 2,157 19,370
Total current assets ............................................................................................................ 17,175 19,050 171,053
Non-current assets
Property, plant and equipment ......................................................................................... 28,974 27,350 245,582
Goodwill ............................................................................................................................. 11,522 11,853 106,435
Intangible assets................................................................................................................. 1,712 1,686 15,142
Other financial assets......................................................................................................... 10,474 10,679 95,889
Deferred tax assets............................................................................................................. 1,549 1,837 16,503
Other non-current assets ................................................................................................... 0 1 12
Total non-current assets .................................................................................................... 54,234 53,409 479,566
Total assets .............................................................................................................................. ¥ 71,409 ¥ 72,459 $ 650,619
Millions of YenThousands ofU.S. Dollars
Liabilities and capital 2018(Ref.) 2019 2019
Liabilities
Current liabilities
Trade and other payables .................................................................................................. ¥ 4,252 ¥ 4,419 $ 39,682
Bonds and borrowings....................................................................................................... 8,628 7,441 66,818
Other financial liabilities ................................................................................................... 448 430 3,861
Income taxes payable ........................................................................................................ 1,864 953 8,558
Provision ............................................................................................................................. 632 769 6,910
Other current liabilities ..................................................................................................... 5,579 7,055 63,352
Total current liabilities ....................................................................................................... 21,405 21,069 189,184
Non-current liabilities
Bonds and borrowings....................................................................................................... 19,755 21,609 194,029
Other financial liabilities ................................................................................................... 1,615 1,437 12,910
Obligations for retirement plan........................................................................................ 620 727 6,536
Provision ............................................................................................................................. 2,776 2,897 26,018
Deferred tax liabilities ....................................................................................................... 275 300 2,700
Other non-current liabilities.............................................................................................. 521 419 3,769
Total non-current liabilities ............................................................................................... 25,565 27,393 245,966
Total liabilities ......................................................................................................................... 46,971 48,462 435,150
Capital
Capital stock ....................................................................................................................... 1,012 1,012 9,088
Capital surplus .................................................................................................................... 3,792 3,071 27,580
Retained earnings .............................................................................................................. 13,275 13,551 121,675
Treasury stock ..................................................................................................................... (20) (1,253) (11,254)
Other components of equity ............................................................................................. (23) (20) (184)
Equity attributable to owners of parent .......................................................................... 18,036 16,361 146,906
Non-controlling interests................................................................................................... 6,402 7,635 68,562
Total assets .............................................................................................................................. 24,438 23,996 215,469
Total liabilities and capital ...................................................................................................... ¥ 71,409 ¥ 72,459 $ 650,619
Consolidated Statements of Financial Positioncreate restaurants holdings inc. and Consolidated Subsidiaries
As at February 28, 2018 and February 28, 2019
Consolidated Financial StatementsEffective from the fiscal year ended February 28, 2019, the Group adopted the International Financial Reporting Standards (IFRS).
Accordingly, the results for the fiscal year ended February 28, 2018 are presented in accordance with the IFRS.
18 19create restaurants holdings inc. ANNUAL REPORT 2019
Company Overview
Company name
create restaurants holdings inc.
Head office
5-10-18 Higashi-gotanda, Shinagawa-ku, Tokyo 141-0022, Japan
Establishment
May 1999
Capital stock
1,012 million yen
Number of employees
3,838 (on a consolidated basis)
Business
Planning, development, operation, and overall business manage-
ment of various food service businesses, including restaurants,
izakaya, and food courts
Board Members
Chairman Hitoshi Gotoh
President and CEO Haruhiko Okamoto
Executive Managing Director Jun Kawai
Director Takakazu Tanaka
Director Akira Shimamura
Director
(Audit & Supervisory Committee Members) Hirofumi Morimoto
Outside director
(Audit & Supervisory Committee Members) Hiroshi Nemoto
Outside director
(Audit & Supervisory Committee Members) Takeshi Ohki
Millions of YenThousands ofU.S. Dollars
2018(Ref.) 2019 2019
Cash flows from operating activities .................................................................................... ¥ 11,912 ¥ 8,364 $ 75,101
Cash flows from investing activities ...................................................................................... (5,665) (4,886) (43,876)
Cash flows from financing activities ..................................................................................... (3,470) (2,900) (26,039)
Net increase (decrease) in cash and cash equivalents ........................................................... 2,752 582 5,233
Balance of cash and cash equivalents at beginning of period ............................................. 9,912 12,665 113,727
Balance of cash and cash equivalents at end of period ........................................................ ¥ 12,665 ¥ 13,248 $ 118,961
Consolidated Statements of Cash Flowscreate restaurants holdings inc. and Consolidated Subsidiaries
For the years ended February 28, 2018 and February 28, 2019
Millions of YenThousands ofU.S. Dollars
2018(Ref.) 2019 2019
Revenue .................................................................................................................................. ¥ 116,522 ¥ 119,281 $ 1,071,037
Cost of sales ........................................................................................................................... (33,524) (34,314) (308,115)
Gross profit ............................................................................................................................. 82,997 84,966 762,921
Selling, general and administrative expenses ..................................................................... (75,638) (79,116) (710,395)
Other operating revenue ...................................................................................................... 1,761 1,028 9,231
Other operating expenses ..................................................................................................... (3,009) (2,902) (26,059)
Operating profit ..................................................................................................................... 6,110 3,975 35,699
Financial income ..................................................................................................................... 86 10 95
Financing cost ......................................................................................................................... (307) (297) (2,675)
Profit before taxes .................................................................................................................. 5,889 3,688 33,119
Corporate income tax expenses ........................................................................................... (2,070) (1,615) (14,505)
Profit for the year .................................................................................................................. 3,819 2,072 18,613
Profit attributable to
Owners of parent .............................................................................................................. 2,743 1,321 11,863
Non-controlling interests .................................................................................................. 1,075 751 6,749
Profit for the year .............................................................................................................. 3,819 2,072 18,613
Yen U.S. Dollars
Earnings per share attributable to owners of parent
Basic earnings per share ................................................................................................... ¥ 29.07 ¥ 14.05 $ 126.16
Diluted earnings per share ............................................................................................... 29.00 13.78 123.73
Consolidated Statements of Incomecreate restaurants holdings inc. and Consolidated Subsidiaries
For the years ended February 28, 2018 and February 28, 2019
Consolidated Financial Statements Corporate Data (As of February 28, 2019)
Stock Information
Total number of shares authorized (share) 190,800,000
Total number of shares issued (share) 94,722,642
Number of shareholders 119,293
*The percentage of shares held is calculated by excluding treasury stock.
Major Shareholders (10 largest shareholders)
ShareholderNumber ofshares held
Percentage of shares held
Goto International Commercial Research Institute 43,763,000 46.36
Yurissa Co., Ltd. 2,682,000 2.84
Haruhiko Okamoto 1,787,700 1.89
Japan Trustee Services Bank, Ltd. (Trust Account) 1,594,600 1.69
Jun Kawai 1,215,000 1.29
Japan Trustee Services Bank, Ltd. (Trust Account 5) 1,037,700 1.10
The Master Trust Bank of Japan, Ltd. (Trust Account) 1,003,900 1.06
Risako Okamoto 846,000 0.90
Yuriko Okamoto 846,000 0.90
Japan Trustee Services Bank, Ltd. (Trust Account 1) 704,600 0.75
Breakdown of Shareholders
Individuals and other(118,457 shareholders) 39,885,564 shares 42.11%
Financial institutions (21 shareholders) 6,253,400 shares 6.60%
Foreign corporations etc.(262 shareholders) 1,271,088 shares 1.34%
Other corporations (525 shareholders) 46,806,006 shares 49.41%
Brokerages (27 shareholders) 173,309 shares 0.18%
Treasury stock(1 shareholder) 333,275 shares 0.35%
Stock Price Range
32018
4 5 6 7 8 9 10 11 12 12019
2
1,800 30,000,000
1,200 20,000,000
(Yen) (Volume)
600 10,000,000
0 0
Total number of shares issued
(share) 94,722,642
Effective from the fiscal year ended February 28, 2019, the Group adopted the International Financial Reporting Standards (IFRS).
Accordingly, the results for the fiscal year ended February 28, 2018 are presented in accordance with the IFRS.
20 21create restaurants holdings inc. ANNUAL REPORT 2019
Stock Code : 3387
Year Ended February 28, 2019
ANNUAL REPORT 2019
5-10-18 Higashigotanda, Shinagawa-ku, Tokyo 141-0022, Japan
Tel. +81-3-5488-8001
https://www.createrestaurants.com
010_0170901371909.indd 1 2019/09/20 19:24:24