Earnings results briefing for Q2 of the fiscal year ending February 2018
October 11, 2017
Securities code: 9861
Index
• P/L for Q2 of FY ending Feb 2018
• Sales and YoY change by segment
• YoY changes in sales of existing stores of
4 major domestic companies
• Cost of sales / expense structure
• Operating profit and YoY change
by segment
• Quarterly changes of P/L
• Store opening/closing results by segment
• Capital investment for Q2 of FY ending
Feb 2018
• CF for Q2 of FY ending Feb 2018
• BS for Q2 of FY ending Feb 2018
• Store-opening/closing plan by segment
• Full-year forecast of FY ending Feb 2018
1
Financial highlights and
full-year forecast
• Summary of the 1st half of FY ending
Feb 2018
• Yoshinoya Holdings long-term vision
• Long-term vision, time frame
• Challenges of the entire Group
Strategies and challenges of main
businesses
・ Yoshinoya
• Hanamaru
• Arcmeal
• Kyotaru
• Overseas
• Challenges by segment in the 2nd half of FY
ending Feb 2018
Summary of the first half of the year and
challenges in the second
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18
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20
21
24
25
26
27
28
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4
5
6
7
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9
10
11
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13
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P/L for Q2 of FY ending Feb 2018
As of the end of Q2 Versus the plan YoY change
Sales 97,689 -2,511 +4,208
Sales change YoY 104.5%
Operating profit 2,136 +36 +1,191
Operating profit ratio 2.2% +1.2%
Ordinary profit 2,448 +48 +1,270
Ordinary profit ratio 2.5% +1.2%
Extraordinary gains and
losses-273 -1,523
Total corporate taxes 891 +8
Quarterly profit attributable to non-
controlling interests-5 +20
Quarterly net profitattributable to owners of parent
1,290 +190 -284
3
(million yen)Achieved profit target by profit increase in major segments
4
Sales and YoY change by segment
for Q2 of FY ending Feb 2018Unit: million yen
93,481 +164
+1,657
-145
+729
+1,429+412
-41
97,689
92,000
94,000
96,000
98,000
100,000
92,000
94,000
96,000
98,000
100,000
売上高(前期)
吉野家
はなまる
アークミール
京樽
海外
その他
全社・消去
売上高(当期)
Sale
s
(Sam
e m
onth
pre
v. ye
ar)
Yoshin
oya
Hanam
aru
Arc
meal
Kyota
ru
Overs
eas
Oth
ers
Intr
agro
up tra
nsaction
Rem
oved
Sale
s (
End o
f Q
2)
Apr 2016
“Pork Bowl Returns”
CP
5
0%
+10%
Jan, 2016
Yoshinoya KyotaruArcmealHanamaru
Aug
-10%
-20%Apr
YoY changes in sales of existing stores of 4 major
domestic companies
Aug
+20%
Dec Apr
Hanamaru, Kyotaru, and Arcmeal grew from the previous year.
Oct 2016
SUPER FRIDAY
Prev. year 1Q 2Q 2Q accumulated
Yoshinoya +0.1 ▲2.4 ▲2.5 ▲2.5
Hanamaru ▲1.3 +3.9 +3.7 +3.8
Arcmeal ▲6.1 ▲2.1 +2.8 +0.3
Kyotaru +0.1 +0.9 ▲0.8 +0.1
Jan, 2017
Cost of sales / expense structure
for Q2 of FY ending Feb 2018
6
Rate of cost of sales
[1st half] 34.8%, -1.7 pp YoY
Rate of expense
[1st half] 63.0%, +0.5 pp YoY
7
Operating profit and YoY change by
segment for Q2 of FY ending Feb 2018
945
+355
+343+160
+242 +63 +35
▲10
2,136
0
500
1,000
1,500
2,000
2,500
0
500
1,000
1,500
2,000
2,500
営業利益(前期
)
吉野家
はなまる
アークミール
京樽
海外
その他
全社・消去
営業利益(当期
)
Op
era
ting
pro
fit
(Sa
me
mo
nth
pre
v. ye
ar)
Opera
ting
pro
fit
(En
d o
f Q
2)
Yoshin
oya
Ha
na
ma
ru
Arc
me
al
Kyo
taru
Ove
rse
as
Oth
ers
Intr
agro
up
tra
nsa
ction
Re
mo
ve
d
Unit: million yen
Quarterly changes of P/L
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(million yen)
1Q YoY change 2Q YoY change
Sales 48,493 +1,964 49,195 +2,243
Sales change YoY + 4.2% + 4.8%
Operating profit 748 +596 1,388 +595
Operating profit ratio + 1.5% + 2.8%
Ordinary profit 837 +518 1,611 +752
Ordinary profit ratio + 1.7% + 3.3%
Quarterly net profit 419 +289 870 △573
2Q of the previous year includes fixed asset sale at 1,334 million yen.
Store opening/closing results by segment (1st half)
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23 of 54 newly opened stores overseas are franchise stores.
Stores
opened
Stores
closed
End of Q2 of FY
ending Feb 2018
(Results)
YoY change
Yoshinoya 12 19 1,196 △1
Hanamaru 28 4 454 +43
Arcmeal 0 3 181 △5
Kyotaru 13 10 332 +8
Overseas 54 11 776 +69
Others 7 24 178 +12
Consolidated total 114 71 3,117 +126
10
Capital investment for Q2 of FY ending Feb 2018
(million yen)
New facility
investment
Renovation
investmentOthers Total
Yoshinoya 719 1,015 399 2,133
Hanamaru 1,110 151 93 1,354
Arcmeal 0 302 82 384
Kyotaru 430 50 9 489
Overseas 349 796 37 1,182
Others 68 47 69 184
Consolidated
total2,676 2,361 689 5,726
Ratio 46.8% 41.2% 12.0% 100.0%
CF for Q2 of FY ending Feb 2018
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Operating CF improved by sales growth of major segments.
End of Aug 2017 End of Aug 2016 Change
Operating CF 4,402 2,473 +1,929
Investment CF - 4,402 - 2,619 - 1,783
Financial CF - 527 4,663 - 5,190
Increase/decrease
in cash and cash
equivalents- 578 4,052 - 4,630
(million yen)
BS for Q2 of FY ending Feb 2018
12
End of Aug 2017 End of Feb 2017 Change
Total assets 116,108 114,947 1,161
Cash 24,250 25,474 - 1,224
Interest bearing liabilities 32,202 31,488 714
Net assets 57,762 57,209 553
Equity capital 59,784 59,107 677
Other comprehensive
income total- 2,481 - 2,363 - 118
Non-controlling interest
total459 464 - 5
Equity capital ratio 49.4% 49.4% 0%
(million yen)
Store opening/closing plan by segment (2nd half)
13*Overseas includes results up to Q3.
End of Q2 of FY
ending Feb 2018
(Result)
Stores to
be opened
Stores to
be closed
End of FY ending
Feb 2018 (Plan)Change
from Q2
Yoshinoya 1,196 22 12 1,206 +10
Hanamaru 454 24 0 478 +24
Arcmeal 181 2 1 182 +1
Kyotaru 332 5 2 335 +3
Overseas 776 58 4 830 +54
Others 178 1 3 176 - 2
Consolidated total 3,117 112 22 3,207 +90
Full-year plan of FY ending Feb 2018
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YoY sales of existing stores[Year total] [Yoshinoya] 102.4%
[Hanamaru] 100.2%
[Arcmeal] 101.5%
[Kyotaru] 101.0%
Rate of cost of sales[Year total] 35.0%, -1.3 pp YoY
Rate of expense[Year total] 62.9%, +0.1 pp YoY
Full-year forecast of FY ending Feb 2018
1st half Full year YoY change
Sales 97,689 202,000 +13,377
Sales change YoY 104.5% 107.1%
Operating profit 2,136 4,400 +2,535
Operating profit ratio 2.2% 2.2% +1.2%
Ordinary profit 2,448 5,100 +2,350
Ordinary profit ratio 2.5% 2.5% +1.0%
Net profitattributable to owners of parent
1,290 2,100 +852
15
(million yen)No change in full-year forecast
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Summary of the 1st half of FY ending Feb 2018
■Yoshinoya
■Overseas
■Kyotaru
■Arcmeal
Opened new stores and the store number grew. Sales continued strong
thanks to the Tempura Pass.
■Hanamaru
Became the first restaurant chain operator to provide Foods with Function Claims
Provided five limited-time offers and improved existing products
Making a recovery with introduction of all-you-can-eat steak and one-coin lunch
Continued to open new restaurants of the sushi-go-round chain, "Kaisen
Misakiko"
US sales were strong whereas new-store-opening was slow in the ASEAN region.
Long-term vision
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Yoshinoya Holdings long-term vision
Group
management
philosophyFor the People
Long-term
management
vision
Three co-
productions
to achieve
our vision
(1) Create value in cooperation with customer, rather than one-way
process of value creation.
(2) Jointly create new business models and services by exploiting
networks across divisions, companies, and countries.
(3) Jointly create new value by exploiting external knowledge and
know-how across the boundaries of industry and business.
Three keywords Human, health and technology
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Experiment
First stage
2016-2018
Second stage
2019-2021
Third stage
2022-2025
Expansion
Harvest
Long-term vision, time frame
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First stage
(2016-2018)
・Increase in sales and profits is a must
⇒ Continual annual growths necessary especially at existing
Yoshinoya stores.
・Many experiments and verifications
(Sowing seeds for growth)
⇒Experiments in FY2017
Increase in productivity at Yoshinoya (robotic cleaning, voice recognition)
Hanamaru app
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Attracting customers through Group-company joint
promotion and an increase in sales opportunities
Awaza (Osaka City)
Konoike Shinden
(Higashiosaka City)
Tenjin Southern Street
(Fukuoka City)
Route 4,
Yamanotera, Sendai
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Initiatives for new service styles
In commercial
buildingsSuburbs
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• Slated to have 478 stores in operation as of the end of this fiscal year.
• Attracting customers through promotion with a joint pass, etc. and introduction of seasonal products
Preparation for 500-
store operation
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• Opening new stores in food courts and starting new-
business-style development
Increasing urban-style conveyor belt
sushi bars
Kaisen Misakiko in a food court
New style restaurant, Kamazen
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Promoting localization and
developing services and menus
catering to local needs
New model experiment in Singapore First store in Qinghai, China's 19th
district
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Challenges by segment in the 2nd half of FY ending
Feb 2018
■Yoshinoya
■OverseasOpening new stores in China and the ASEAN region and improving profitability
in Malaysia
■KyotaruOpening urban-style sushi-go-round restaurants and increasing the utilization
rate of newly-installed rice-cooing lines
■ArcmealTurning first-timers who were attracted to a campaign or one-coin lunch into
repeat customers
Opening new stores towards the target of 500 stores in Japan and focusing
on human resources development
■Hanamaru
Productivity increase in stores run on a new service model
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This document includes our current business plans and forecasts. The forecast figures in the future are
planned/estimated by us based on the currently available information. The actual results may be different from this
plan, depending on various conditions and elements in the future, thus this document neither promises nor
guarantees the realization of the said business performance. Neither we nor the provider of this information is liable
for any loss or damage resulting from this information.