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

17

18

19

20

21

24

25

26

27

28

3

4

5

6

7

8

9

10

11

12

13

14

Financial highlights and full-year plan

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

8

(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)

9

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

11

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

14

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

Summary of the first half of the year

and challenges in the second

17

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

18

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

19

Experiment

First stage

2016-2018

Second stage

2019-2021

Third stage

2022-2025

Expansion

Harvest

Long-term vision, time frame

20

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

21

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

22

Initiatives for new service styles

In commercial

buildingsSuburbs

23

Various efforts for “better health”

24

• 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

25

Conducting various campaigns in all businesses

Productivity improvement of

existing businesses

26

• 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

27

Promoting localization and

developing services and menus

catering to local needs

New model experiment in Singapore First store in Qinghai, China's 19th

district

28

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

29

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.