Gift Holdings Inc.TSE: 9279

Results Briefing Materials for the First Quarter of the Fiscal Year Ending October 31, 2022

Mar 18, 2022 at 6:10 AM UTC · Issued by Gift Holdings Inc.

Securities Code 9279

GIFT HOLDINGS INC.

IR website

https://www.gift-group.co.jp/english/

Overview of Financial Results for the First Quarter

of the Fiscal Year Ending October 31, 2022

Highlights for the First Quarter of the Fiscal Year Ending October 31, 2022

Growth and Profitability

Sales growth

18.7%

(Annual goal: 20.0%)

Ordinary profit margin

20.5%

(Annual goal: 11.8%)

Man-hour Productivity (company-owned stores)

Net sales per man-hour

6,052 yen

(Same period of the previous year: 5,679 yen)

Labor cost rate

26.7%

(Same period of the previous year: 27.3%)

YoY Change in Sales of

Company-owned Stores

All company-owned

stores in Japan

132.8%

Existing company-

owned stores in Japan

107.0%

(Annual goal: 114.4%)

Recruitment and Retention

Hiring employees

Newly hired 32mid-career employees. 50 new graduates or more will join.

Retirement rate

19.0％

(Same period of the previous year: 18.3%)

Stores Opened in the Period

Company-owned stores

6 stores

(Annual goal: 36 stores)

Produce stores

10 stores

(Annual goal: net increase of 48 stores)

Topics

✓Secured an operating margin of over 10%.

✓Our first store in shopping center opened.

✓New GATTON and

NAGAOKA SHOKUDO stores opened to start to

expand brands' reach.

*For details of brands and store types, please refer to "List of brands of company-owned stores" on the page 19 and "Business details" on the page 20, respectively.

Copyright 2022 GIFT HOLDINGS INC. All Rights Reserved.	2

Statements of income

FYE Oct. 31, 2021	FYE Oct. 31, 2022	Change
Q1	Q1

(Millions of yen)
	Amount	Percentage of	Amount	Percentage of sales	Year-on-year change

		sales


Net sales	3,362	-		3,990	-	+18.7%

Cost of sales	959	28.5%		1,169	29.3%	+21.8%

Gross profit	2,402	71.5%		2,821	70.7%	+17.4%

Selling, general and	2,148	63.9%		2,351	58.9%	+9.4%
administrative expenses

Operating profit	254	7.6%		469	11.8%	+84.8%

Ordinary profit	261	7.8%		816	20.5%	+212.1%

Profit attributable to	169	5.0%		542	13.6%	+220.0%
owners of parent

Copyright 2022 GIFT HOLDINGS INC. All Rights Reserved.	3

Subsidiesfor cooperatingwithrequests to shortenbusinesshours and employment adjustment

The Company has shortened the business hours of stores in response to requests from local governments to shorten the business hours of restaurants, etc. The Company is applying for subsidies for cooperating with early closing-hour requests and employment adjustment and recognizing revenue when the payment is decided.

The Company posted subsidies paid in the first quarter of the fiscal year ending October 31, 2022 in subsidy income under non-operating income for the statements of income for the period and is applying for subsidies for which application period starts.

(Reference) Status of applications and payments for subsidies for cooperating with requests to shorten business hours and subsidies for employment adjustment

				By January 31		After February 1

				Applied for				Grand total

				Paid in the	and already	Applied for	To be applied	Total

				first quarter	decided	but undecided	for


shortentorequests hoursbusiness	withcooperating	forSubsidies	Number of
days with	3,569	456	70	674	1,200	4,769

			shorter
			business hours

			Amount	328,371	51,880	Note 2	Note 2	Note 2	Note 2
			(Thousand yen)


forSubsidies employment adjustment	Amount	10,920	－	Note 2	Note 2	Note 2	Note 2

			(Thousand yen)

(Note 1) "Number of days with shorter business hours" represents the number of days when business hours were shortened in the previous fiscal year and the first quarter of the fiscal year ending October 31, 2022 (excluding days for which subsidies had been paid by the end of the previous fiscal year).

(Note 2) Amounts of subsidies for cooperating with requests to shorten business hours and subsidies for employment adjustment will be determined and the revenue will be recognized when the decision is made on the payment.

Copyright 2022 GIFT HOLDINGS INC. All Rights Reserved.	4

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