Zensho : 43rd Annual Securities Report

About this update from Zensho Holdings Co., Ltd.

Annual Securities Report (Report pursuant to Article 24, Paragraph 1 of the Financial Instruments and Exchange Act of Japan) The 43rd Fiscal Year (April 1, 2024, to March 31, 2025) Zensho Holdings Co., Ltd. This document is a translation of part of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act of Japan. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original shall prevail. Contents. Annual Securities Report (43rd Fiscal Year) [Cover page] 1 PART I: COMPANY INFORMATION 2 OVERVIEW OF COMPANY 2 Summary of Business Results 2 History 4 Description of Business 7 Subsidiaries and Associates 9 Employees 14 BUSINESS OVERVIEW 16 Management Policy, Business Environment and Issues to Be Addressed, etc. 16 Philosophy and Initiatives for Sustainability 19 Business Risks, etc. 24 Management's Analysis on the Company's Financial Condition, Results of Operations and Cash Flow Conditions 27 Critical Contracts 33 Research and Development 35 STATUS OF EQUIPMENT 36 Overview of Capital Investments, etc. 36 Main Facilities 36 Plans for New Additions or Disposals, etc. of Facilities 39 INFORMATION ON THE COMPANY 40 Information on the Company's Share, etc. 40 Acquisitions of Treasury Shares 49 Dividend Policy 50 Corporate Governance, etc. 51 FINANCIAL INFORMATION 80 Consolidated Financial Statements, etc. 81 Non-Consolidated Financial Statements, etc. 127 VI: STOCK-RELATED ADMINISTRATION FOR THE COMPANY 140 VII. CORPORATE REFERENCE DATA 141 Information on the Parent Company, etc. 141 Other Reference Information 141 PART II: INFORMATION ON CORPORATE GUARANTORS, ETC., FOR THE COMPANY 142 ‌[Cover page] [Document title] Annual Securities Report [Clause of stipulation] Article 24, Paragraph 1 of the Financial Instruments and Exchange Act of Japan [Place of filing] Director-General, Kanto Local Finance Bureau [Filing date] June 30, 2025 [Fiscal year] The 43rd term (from April 1, 2024, to March 31, 2025) [Company name] Kabushiki Kaisha Zensho Holdings [Company name in English] Zensho Holdings Co., Ltd. [Title and name of representative] Yohei Ogawa, Representative Director, President & CEO [Address of head office] 18-1, Konan 2-chome, Minato-ku, Tokyo, Japan [Telephone number] +81-3-6833-1600 [Name of contact person] Kiyohiko Niwa, Chief Financial Officer, Executive Officer, Senior General Manager of Group Finance and Accounting Division [Nearest place of contact] 18-1, Konan 2-chome, Minato-ku, Tokyo, Japan [Telephone number] +81-3-6833-1600 [Name of contact person] Kiyohiko Niwa, Chief Financial Officer, Executive Officer, Senior General Manager of Group Finance and Accounting Division [Place for public inspection] Tokyo Stock Exchange, Inc. (2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo, Japan) ‌PART I: COMPANY INFORMATION ‌OVERVIEW OF COMPANY ‌Summary of Business Results Business results of group (Million yen, unless otherwise stated) Term 39th 40th 41st 42nd 43rd Fiscal year-end March 2021 March 2022 March 2023 March 2024 March 2025 Net sales 595,048 658,503 779,964 965,778 1,136,684 Ordinary profit 12,215 23,117 28,081 50,913 71,890 Profit attributable to owners of parent 2,259 13,869 13,265 30,693 39,290 Comprehensive income 5,324 22,080 18,180 40,807 37,281 Net assets 85,430 104,486 115,837 214,652 240,371 Total assets 396,023 427,172 469,563 748,056 813,109 Net assets per share (yen) 560.87 679.19 761.63 1,171.76 1,335.69 Basic earnings per share (yen) 14.82 91.17 87.30 195.41 240.45 Diluted earnings per share (yen) - - - - - Shareholders' equity ratio (%) 21.5 24.2 24.6 28.7 29.5 Return on equity (%) 2.6 14.7 12.1 18.6 17.3 Price-earnings ratio (times) 191.1 31.4 45.0 33.0 33.5 Cash flows from operating activities 29,686 45,430 53,078 85,985 78,953 Cash flows from investing activities (23,519) (31,550) (35,200) (125,387) (66,497) Cash flows from financing activities 1,753 (11,986) 1,844 54,633 (16,225) Ending balance of cash and cash equivalents 37,643 42,414 64,690 82,171 79,695 Number of employees [average number of part-time employees] (persons) 16,253 [51,125] 15,929 [51,118] 17,324 [56,313] 16,806 [66,418] 18,742 [69,340] Notes: 1. Diluted earnings per share are not stated, as there is no potential share with dilutive effects. The Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc., from the beginning of the 40th term. Figures for the summary of business results from the 40th term onwards are presented after applying these accounting standards, etc. The Company introduced Board Benefit Trust (BBT) in the 41st term. From the 41st term onwards, in the calculation of net assets per share, the Company shares held as trust assets for the BBT are included in the number of treasury shares deducted from the number of issued shares at the fiscal year-end, while in the calculation of basic earnings per share, those are included in the number of treasury shares deducted from the average number of shares outstanding during the period. The Group has applied the "Accounting Standard for Current Income Taxes." (ASBJ Statement No. 27, October 28, 2022) and the transitional treatment as provided for in the proviso to section 20-3 from the beginning of the 42nd term. Figures for the summary of business results for the 42nd term onwards are presented after applying these accounting standards, etc. (2) Business results of reporting company (Million yen, unless otherwise stated) Term 39th 40th 41st 42nd 43rd Fiscal year-end March 2021 March 2022 March 2023 March 2024 March 2025 Net sales 238,248 216,433 256,344 294,751 334,316 Ordinary profit 4,699 5,571 13,436 7,782 6,969 Profit 2,622 5,415 11,961 7,530 8,385 Share capital 26,996 26,996 26,996 47,497 47,497 Total number of issued shares (shares) 154,862,825 154,862,825 154,862,825 160,733,225 160,733,225 Net assets 75,884 78,095 86,248 150,921 148,275 Total assets 360,602 373,293 400,507 535,482 597,556 Net assets per share (yen) 498.83 513.38 568.08 766.67 749.81 Dividends per share (yen) [Interim dividend per share] 20.00 (10.00) 22.00 (11.00) 24.00 (12.00) 50.00 (25.00) 70.00 (35.00) Basic earnings per share (yen) 17.20 35.60 78.72 43.93 43.19 Diluted earnings per share (yen) - - - - - Shareholders' equity ratio (%) 21.0 20.9 21.5 28.2 24.8 Return on equity (%) 3.4 7.0 14.6 6.3 5.6 Price-earnings ratio (times) 164.6 80.4 49.9 146.6 186.4 Payout ratio (%) 116.3 61.8 30.5 113.8 162.1 Number of employees [average number of part-time employees] (persons) 627 [146] 655 [144] 684 [109] 790 [115] 852 [132] Total shareholder return (%) [Benchmark: TOPIX Net Total Return Index] 138.3 (142.1) 140.9 (145.0) 193.6 (153.4) 318.1 (216.8) 399.7 (213.4) Highest share price (yen) 3,125 3,005 4,160 9,274 9,604 Lowest share price (yen) 1,731 2,528 2,835 3,910 5,292 Notes: 1. Diluted earnings per share are not stated, as there is no potential share with dilutive effects. The highest and lowest share prices are those of the First Section of the Tokyo Stock Exchange before April 3, 2022, and of the Prime Market of the Tokyo Stock Exchange after April 4, 2022. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc., from the beginning of the 40th term. Figures for the summary of business results from the 40th term onwards are presented after applying these accounting standards, etc. The Company introduced Board Benefit Trust (BBT) in the 41st term. From the 41st term onwards, in the calculation of net assets per share, the Company shares held as trust assets for the BBT are included in the number of treasury shares deducted from the number of issued shares at the fiscal year-end, while in the calculation of basic earnings per share, those are included in the number of treasury shares deducted from the average number of shares outstanding during the period. The Company has applied the "Accounting Standard for Current Income Taxes." (ASBJ Statement No. 27, October 28, 2022) and the transitional treatment as provided for in the proviso to section 20-3 from the beginning of the 42nd term. Figures for the summary of business results for the 42nd term onwards are presented after applying these accounting standards, etc. ‌History Date Event Jun. 1982 Zensho Co., Ltd. (currently Zensho Holdings Co., Ltd.) was established, and located its head office annexed to Yokohama factory in Tsurumi-ku, Yokohama in Kanagawa Prefecture, Japan. Jul. 1982 Opened its first lunchbox shop (Namamugi shop) in Tsurumi-ku, Yokohama, Kanagawa Prefecture, Japan. Nov. 1982 Opened its first built-in type restaurant (Sukiya Gyudon restaurant: Namamugi Ekimae restaurant) in Tsurumi-ku, Yokohama, Kanagawa Prefecture, Japan. Jul. 1987 Opened its first freestanding type restaurant (Mito restaurant) in Mito, Ibaraki Prefecture, Japan. Aug. 1997 Shares listed on the Japan Securities Dealers Association over-the counter market. Sep. 1999 Shares listed on the Second Section of the Tokyo Stock Exchange. Jul. 2000 Acquired Coco's Japan Co., Ltd. to enter the domestic restaurant business. Oct. 2000 Established Techno Support Co., Ltd. (currently Techno Construction Co., Ltd.) to streamline furnishing and maintenance. Nov. 2000 Established Global Foods Co., Ltd. (currently Zensho Tradings Co., Ltd.) to streamline raw material procurement. Sep. 2001 Share listed on the First Section of the Tokyo Stock Exchange. Jun. 2002 Established Global Table Supply Co., Ltd. to streamline procurement of consumables, equipment. Oct. 2002 Established Hamasushi Co., Ltd., to operate sushi restaurant business. Dec. 2002 Acquired Big Boy Japan, Inc. to expand domestic restaurant business. Feb. 2004 Consolidated the headquarter functions and moved the head office to the current place (18-1, Konan 2- chome, Minato-ku, Tokyo, Japan). Jan. 2005 Established Coco's Shanghai Co., Ltd. (currently Zensho Restaurant (Shanghai) Co., Ltd.) to operate Sukiya in China. Mar. 2005 Acquired Nakau Co., Ltd. to expand the fast-food business. Sep. 2005 Established Food Safety Pursuing Department (currently Group Food Safety Assurance Division) to enhance the approach to food safety. Apl. 2006 UD Foods Co., Ltd. (currently Sanbishi Co., Ltd.) acquired soy sauce manufacturing business from Sanbishi Co., Ltd. May. 2006 Established Central Analysis Center to enhance the food safety initiatives. Jun. 2006 Established Global Pizza System Co., Ltd. (currently Tolona Japan Co., Ltd.) in the manufacturing and sales business to sell frozen foods for home use, etc. Aug. 2006 Established Global Fresh Supply Co., Ltd. to streamline logistics. Feb. 2007 Acquired United Veggies Co., Ltd., to enter the fruit and vegetable sales business. Mar. 2007 Acquired Sunday's Sun Inc. (currently Jolly-Pasta Co., Ltd.) to expand domestic restaurant business. Launched fair trade initiatives in Democratic Republic of Timor-Leste. Jul. 2007 Opened Sukiya (Gyudon) restaurant in Okinawa Prefecture and established the presence in all prefectures in Japan. Aug. 2007 Acquired Inter-Vision Consortium Inc. (currently Human Logic Laboratory Co., Ltd.) to expand personnel strategy. Jan. 2008 Established Zenshoen Co., Ltd. to enter the livestock business. Jun. 2008 Established Global IT Service Co., Ltd. to streamline business through information technologies. Aug. 2008 Established Zensho do Brazil Comercio de Alimentos Ltda. to operate Sukiya in Brassil. Oct. 2008 Acquired Hanaya Yohei Co., Ltd. to expand domestic restaurant business. Dec. 2010 Established Zensho Best Crew Co., Ltd. to streamline the recruiting operation. Feb. 2011 Established Zensho (Thailand) Co., Ltd. to operate Sukiya in Thailand. May. 2011 Established Zensho Spin-Off Preparation Co., Ltd. (currently Sukiya Co., Ltd.). Oct. 2011 Shifted to a holding company structure to start global business development and changed the corporate name from Zensho Co., Ltd. to Zensho Holdings Co., Ltd. Changed the corporate name from Zensho Spin-Off Preparation Co., Ltd. to Zensho Co., Ltd. (currently Sukiya Co., Ltd.). Established Zensho Food de Mexico S.A. de C.V. to operate Sukiya in Mexico. Dec. 2011 Established GFF Co., Ltd. to expand manufacturing function. Mar. 2012 Established Zensho Foods Malaysia Sdn. Bhd. to operate Sukiya in Malaysia. Apr. 2012 Established Zensho Business Service Co., Ltd. to promote employment of challenged persons and to support their self-reliance. Oct. 2012 Established Zensho Clean Energy Co., Ltd. to conduct power generation business using natural energy sources and to supply and sell the electricity. Nov. 2012 Acquired Maruya Co., Ltd. (currently Joy Mart Co., Ltd.) to enter retail business. Jan. 2013 Established Zensho Rice Co., Ltd. in the manufacturing and sales business to sell brown and milled rice. Date Event Apr. 2013 Established Zensho Taiwan Co., Ltd. to operate Sukiya in Taiwan. Established PT. Zensho Indonesia. to operate Sukiya in Indonesia. May. 2013 Acquired Pocino Foods Company in the U.S. to expand business and manufacturing function. Oct. 2013 Acquired Maruei Co., Ltd. (currently Joy Mart Co., Ltd.) to expand retail business. Dec. 2013 Established Nihon Retail Holdings, Co., Ltd. to oversee retail business. Jan. 2014 Acquired Kaigo Service Kagayaki Co., Ltd. (Kagayaki Co., Ltd.) to enter the nursing care business. Jun. 2014 Zensho Co., Ltd. (currently Sukiya Co., Ltd.) split off Kita-Nihon Sukiya Co., Ltd., Kanto Sukiya Co., Ltd., Tokyo Sukiya Co., Ltd., Chubu Sukiya Co., Ltd., Kansai Sukiya Co., Ltd., Chu-Shikoku Sukiya Co., Ltd, and Kyushu Sukiya Co., Ltd. as successor companies, to establish a local community-based restaurant management structure. Aug. 2014 Acquired Owariya Co., Ltd. (currently Joy Mart Co., Ltd.) to expand retail business. Oct. 2014 A Dining Co., Ltd. succeeded in restaurant business and fast-food business from Zensho Co. Ltd. (currently Sukiya Co., Ltd.) by absorption-type split, to enable Zensho Co. Ltd. to concentrate, expand and further develop the Sukiya business. Jan. 2015 Established Zensho USA Corporation to oversee Americas business. Feb. 2015 Established Zensho Factory Holdings Co., Ltd. to oversee production department. Apr. 2015 Established Zensho CooCa Co., Ltd. to introduce original e-money. May. 2015 Established Kagayaki Nursery Facilities Co., Ltd. to operate in-house nursery facilities. Jun. 2015 Acquired Mizushita Farm Co., Ltd. to expand livestock business. Jul. 2015 TAG-1 Co., Ltd. succeeded in the restaurant business by absorption-type split and Zensho Café Co., Ltd. succeeded in the fast-food business by business transfer from A Dining Co., Ltd. to expand the business as a specialty restaurant. TR Factory Co., Ltd. succeeded manufacturing business of frozen pizza, etc. from Tolona Japan Co., Ltd. by absorption-type split, to streamline the operation through separation of the sales and manufacturing functions. Jan. 2016 Established Zensho Vietnam Co., Ltd. to operate Sukiya in Vietnam. Apr. 2016 Zensho Ichiban Malaysia Sdn. Bhd. acquired fast-food business to expand it in Malaysia. Jul. 2016 Established Katsuan Co., Ltd. to expand fast-food business. Sep. 2016 Kyubeiya Co., Ltd. and Setoudon Co., Ltd. succeeded fast-food business from A Dining Co., Ltd. by absorption-type split to expand the business as a specialty restaurant. Nov. 2016 Acquired Royalhouse Ishioka Co., Ltd. and Senior Support Co., Ltd. to expand the nursing care business. Established Zensho China Holdings Co., Ltd. to oversee China business. Acquired Fujita Cooperation Co., Ltd. (currently Joy Mart Co., Ltd.) to expand retail business. Apr. 2017 Established Zensho Insurance Service Co., Ltd. to operate non-life insurance agency services. May. 2017 Established Olive Hill Co., Ltd. to expand restaurant business. Jun. 2017 Established Nihon Kaigo Holdings Co., Ltd. to oversee the nursing care business. Jul. 2017 Acquired Nyereg Co., Ltd. to expand the nursing care business. Dec. 2017 Atack Co., Ltd. (currently Joy Mart Co., Ltd.) succeeded retail business by absorption-type split to expand it. May. 2018 Established Zensho Japanese Restaurant Company Pte. Ltd. to expand fast-food business in Singapore. Aug. 2018 Established Zensho (Philippines), Inc. to operate Sukiya in Philippines. Oct. 2018 Established Zensho Hong Kong Co., Ltd. to operate Sukiya in Hong Kong. Nov. 2018 Acquired Advanced Fresh Concepts Corp. to enter take-out sushi business in USA. Acquired I Medicare Co., Ltd. to expand the nursing care business. Jan. 2019 Established Nihon Restaurant Holdings Co., Ltd. (currently Zensho Global Restaurant Holdings Co., Ltd.) to oversee restaurant business. Feb. 2019 Established Zensho South East Asia Holdings Pte. Ltd. to oversee Southeast Asia business. Established Zensho Holdings Malaysia Sdn. Bhd. to oversee Malaysia business. May. 2019 Acquired TCRS Restaurants Sdn. Bhd. to expand fast-food business in Malaysia. Jun. 2019 Established JinZai Co., Ltd. to realize a society where people can co-exist with various international human resources. Aug. 2019 Converted Jolly-Pasta Co., Ltd. into a wholly owned subsidiary by the share exchange (Delisted). Dec. 2019 Established Zensho Europe Holdings B.V. to oversee Europe business. Acquired Worldfood To Go, S.L. to enter take-out-sushi business in Spain. Feb. 2020 Converted Coco's Japan Co., Ltd. into a wholly owned subsidiary by the share exchange (Delisted). Mar. 2020 Sukiya Honbu Co., Ltd., as the surviving company, merged with nine regional Sukiya companies, as the dissolving companies, to streamline Sukiya management. Date Event Changed the corporate name from Sukiya Honbu Co., Ltd. to Sukiya Co., Ltd. Apr. 2020 Established Zensho Store Support Co., Ltd. to promote employment of challenged persons and to support their self-reliance. Aug. 2020 Acquired Seiun Sake Brewery Co., Ltd. to enter brewing business. Mar. 2021 Maruya Co., Ltd., as a surviving company, merged with four companies (Maruei Co., Ltd., Owariya Co., Ltd., Fresh Corporation, and Atack Co., Ltd.), as the dissolving companies, to further expand the management of retail business. Changed the corporate name from Maruya Co., Ltd. to Joy Mart Co., Ltd. Jun. 2021 Established Global MD Holdings Co., Ltd. to expand domestic and international procurement. Jul. 2021 Acquired Marix Co., Ltd. to enter aquaculture business. Sep. 2021 Established Zensho Fast Holdings Co., Ltd. (currently Zensho Global Fast Holdings Co., Ltd.) to further enhance Japanese specialty restaurant business. Oct. 2021 Acquired Saito Shoten Co., Ltd. to expand manufacturing and sales business of brown and milled rice. Mar. 2022 Acquired Igarashi Marine Products Co., Ltd. to expand aquaculture business. Apr. 2022 Established Shinagawa Design Co., Ltd. to improve UX design quality for all the Group business categories. Moved from the First Section to the Prime Market due to the revision of the market classification of the Tokyo Stock Exchange. Apr. 2023 Acquired Lotteria Co., Ltd. to enter hamburger restaurant business. May. 2023 Acquired Sushi Circle Gastronomie GmbH to enter take-out sushi business in Germany. Aug. 2023 Acquired Nakatani Marine Products Co., Ltd. to expand aquaculture business. Sep. 2023 Acquired SnowFox Topco Limited (currently Wonderfield TopCo Limited) to enter take-out sushi business in UK. ‌Description of Business The Group consists of 170 companies, the Company and 169 subsidiaries, and conducts a broad range of business activities in the food business. The Company falls under the category of specified listed companies, etc., and among the standards for determining insignificance of important facts with respect to insider trading regulations, numerical standards defined in comparison with the scale of the listed company will be judged based on the consolidated figures. From the current fiscal year, the Company has changed its reporting segments. As described in "V. FINANCIAL INFORMATION, Consolidated Financial Statements, etc., (1) Consolidated Financial Statements, Notes to the Consolidated Financial Statements, (Segment Information, etc.). Global Sukiya segments (share of the Group sales: 26.0%) Sukiya Co., Ltd., and its overseas subsidiaries such as Zensho Restaurant (Shanghai) Co., Ltd. directly operates "Sukiya," a Gyudon restaurants chain across Japan, China, Southeast Asia and Central and South America to provide safe, delicious food at affordable prices to a broad range of customers which are included families. Global Hamasushi segments (share of the Group sales: 21.9%) Hamasushi Co., Ltd. and its overseas subsidiaries such as Zensho Restaurant (Shanghai) Co., Ltd. directly operates "Hamasushi" sushi restaurants chain across mainly in Japan and China. In addition to sushi using fresh seafood, the chain offers a wide range of side dishes such as noodles, desserts and drinks, which are enjoyed by both children and adults. Global Fast Food segments (share of the Group sales: 27.6%) Nakau Co., Ltd. operates both directly-operated and franchised restaurants of "Nakau," oyakodon rice bowl dishes and Kyoto style udon noodle chain. Lotteria Co., Ltd. operates both directly-operated and franchised restaurants of "Lotteria," hamburger chain. A Dining Co., Ltd. directly operates ramen specialty restaurants "Denmaru," etc. mainly in Kanto regions. Katsuan Co., Ltd. directly operates "Katsuan," tonkatsu specialty restaurants mainly in Kanto and Chubu regions. Kyubeiya Co., Ltd. directly operates "Kyubeiya" restaurants, which offer Musashino udon noodle, tempura, and shabushabu, in Kanto region. Setoudon Co., Ltd. directly operates" Setoudon," etc. Sanuki udon noodle specialty self-service restaurants mainly in Kanto region. Zensho Café Co., Ltd. directly operates "Moriba Coffee," etc. a café chain which offers fair trade coffee, mainly in Kanto region. TCRS Restaurants Sdn. Bhd. directly operates "The Chicken Rice Shop," etc. chicken rice specialty chain restaurants, in Malaysia. "AFC" and "Zenshi" of Advanced Fresh Concepts Corp., "Sushi Circle" of Sushi Circle Gastronomie GmbH, "SNOWFOX"," Bento"," Taiko," "YO!" and "SNOWFRUIT" of Wonderfield TopCo Limited operates both directly-operated and franchised takeout sushi stores, etc. Restaurants segments (share of the Group sales: 13.7%) Coco's Japan Co., Ltd. offers both directly-operated and franchised restaurants of "Coco's," a standard restaurant chain across Japan. Big Boy Japan Inc. directly operates hamburger steak and steak restaurant chain. It operates "BigBoy" etc. mainly in Kanto, Kansai and Tohoku regions, and "Victoria Station" restaurants in Hokkaido region. Jolly-Pasta Co., Ltd. directly operates "Jolly Pasta," pasta specialty restaurant chain, mainly in Kanto and Kansai regions. TAG-1 Co., Ltd. directly operates "Jukusei Yakiniku Ichiban", etc., barbeque restaurants mainly in Kanto and Kansai regions. Olive Hill Co., Ltd. directly operates "OLIVENOOKA," specialty Italian restaurant chain in Kanto region. Hanaya Yohei Co., Ltd. directly operates "Hanaya Yohei," Japanese-cuisine restaurants, etc. in Kanto region. Retail segments (share of Group sales: 6.7%) Joy Mart Co., Ltd. operates supermarkets. United Veggies Co., Ltd. is mainly engaged in the sale of fruits and vegetables. Corporate and Support segments (share of Group sales: 0.4%) GFF Co., Ltd. is mainly engaged in the production of food. Zensho Tradings Co., Ltd. is mainly engaged in the procurement and sale of food materials. Global Fresh Supply Co., Ltd. is mainly engaged in the nationwide distribution of food materials. Techno Construction Co., Ltd. is mainly engaged in the construction of restaurant and store facilities and maintenance. Global Table Supply Co., Ltd. is mainly engaged in the sale of equipment and uniforms. Others (share of Group sales:3.6%) Others are mainly "Manufacturing and wholesaling business for external sales," "Nursing care business," and "Livestock and aquaculture business." Tolona Japan Co., Ltd. is mainly engaged in the sale of frozen foods for home use, etc. Sanbishi Co., Ltd. is mainly engaged in the production and sale of soy sauce and other seasonings. Kagayaki Co., Ltd. is mainly engaged in nursing care business. Zensho Rice Co., Ltd. is mainly engaged in the sale of brown and milled rice. The following chart illustrates the business structure of the Group. Provides products and services Food business management Zensho Holdings Co., Ltd. ・ GFF Co., Ltd. ・ Zensho Tradings Co., Ltd. ・ Global Fresh Supply Co., Ltd. ・ Techno Construction Co., Ltd. ・ Global Table Supply Co., Ltd. etc. Corporate and Support etc. ・ Tolona Japan Co., Ltd. ・ Sanbishi Co., Ltd. ・ Kagayaki Co., Ltd. ・ Zensho Rice Co., Ltd. ・ Joy Mart Co., Ltd. ・ United Veggies Co., Ltd. etc. ・ Coco's Japan Co., Ltd. ・ Big Boy Japan Co., Ltd. ・ Jolly-Pasta Co., Ltd. ・ TAG-1 Co., Ltd. ・ Olive Hill Co., Ltd. ・ Hanaya Yohei Co., Ltd. etc. ・ Hamasushi Co., Ltd. ・ Zensho Restaurant (Shanghai) Co., Ltd. ・ Zensho Taiwan Co., Ltd. etc. Other Retail Restaurants Global Hamasushi Customers Global Fast Food ・ Nakau Co., Ltd. ・ Lotteria Co., Ltd. ・ A Dining Co., Ltd. ・ Katsu-An Co., Ltd. ・ Kyubeya Co., Ltd. ・ Seto Udon Co., Ltd. ・ Zensho Cafe Co., Ltd. ・ TCRS Restaurants Sdn.Bhd. ・ Advanced Fresh Concepts Corp. ・ Sushi Circle Gastronomie GmbH ・ Wonderfield Topco Limited etc. ・ Sukiya Co., Ltd. ・ Zensho Restaurant (Shanghai) Co., Ltd. ・ Zensho Taiwan Co., Ltd. ・ Zensho (Thailand) Co., Ltd. ・ Zensho do Brasil Comercio de Alimentos Ltda. etc. Global Sukiya ‌Subsidiaries and Associates Name Location Share capital /investments (Million yen) Major business Ratio of voting rights holding/held (%) Details of relationship Consolidated subsidiaries Zensho Global Fast Holdings Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of food service business (holding) 100.00 (22.46) Business transaction Financial support etc. Sukiya Co., Ltd. (Notes 1, 2, and 4) Minato-ku, Tokyo 10 Management of Gyudon chain, Sukiya (holding) 100.00 (100.00) Business transaction Financial support etc. Nakau Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of oyakodon rice bowl dishes and Kyoto style udon noodle chain, Nakau (holding) 100.00 (100.00) Business transaction Financial support etc. Katsuan Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of tonkatsu specialty restaurants chain, Katsuan (holding) 100.00 (100.00) Business transaction Financial support etc. Zensho Café Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of Moriba Coffee, etc., a café chain which offers fair-trade coffee (holding) 100.00 (100.00) Business transaction Financial support etc. Lotteria Co., Ltd. (Note 2) Minato-ku, Tokyo 8 Hamburger restaurant business (holding) 100.00 (100.00) Interlocking directorship Business transaction Financial support etc. Zensho Global Restaurant Holdings Co., Ltd. Minato-ku, Tokyo 10 Management of restaurant business (holding) 100.00 Business transaction Coco's Japan Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of standard restaurant chain, Coco's, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Big Boy Japan Inc. (Note 2) Minato-ku, Tokyo 10 Management of hamburger steak and steak restaurant chain, Big Boy, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Jolly-Pasta Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of pasta specialty restaurant chain, Jolly-Pasta, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. TAG-1 Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of barbeque restaurant chain, Jukusei Yakiniku Ichiban, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Hanaya Yohei Co., Ltd. (Note 2) Minato-ku, Tokyo 100 Management of Japanese cuisine restaurant chain, Hanaya Yohei (holding) 100.00 (100.00) Business transaction Financial support etc. Olive Hill Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of Italian restaurant chain, OLIVENOOKA (holding) 100.00 (100.00) Business transaction Financial support etc. Hamasushi Co., Ltd. (Notes 1 and5) Minato-ku, Tokyo 10 Management of sushi restaurant chain, Hamasushi (holding) 100.00 Business transaction Financial support etc. A Dining Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of ramen specialty restaurants, Denmaru, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Kyubeiya Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of Musashino udon noodle, tempura, and shabushabu restaurant chain, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Setoudon Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Management of Sanuki-udon noodle specialty self-service restaurant chain, Setoudon, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Nihon Retail Holdings Co., Ltd. Minato-ku, Tokyo 85 Management of retail business (holding) 100.00 Business transaction Financial support etc. Name Location Share capital /investments (Million yen) Major business Ratio of voting rights holding/held (%) Details of relationship Joy Mart Co., Ltd. (Note 2) Kasukabe, Saitama 10 Management of supermarket chain, Joy Foods, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. United Veggies Co., Ltd. (Note 2) Minato-ku, Tokyo 74 Sales of fruits, vegetables, etc. (holding) 83.98 (83.98) Business transaction Zensho Factory Holdings Co., Ltd. Minato-ku, Tokyo 60 Management of manufacturing companies (holding) 100.00 Interlocking directorship Business transaction GFF Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Production of foods (holding) 100.00 (100.00) Interlocking directorship Business transaction Financial support etc. TR Factory Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Production of foods (holding) 100.00 (100.00) Business transaction Financial support etc. Sanbishi Co., Ltd. (Note 2) Toyokawa, Aichi 13 Production of soy sauce, etc. (holding) 100.00 (100.00) Business transaction Financial support etc. Zensho Tradings Co., Ltd. (Note 1) Minato-ku, Tokyo 80 Procurement and sale of food materials (holding) 100.00 Business transaction Financial support etc. Tolona Japan Co., Ltd. Minato-ku, Tokyo 10 Sales of frozen foods for home use, etc. (holding) 100.00 Business transaction Financial support etc. Global Fresh Supply Co., Ltd. Minato-ku, Tokyo 70 Provision of logistics service (holding) 100.00 Business transaction Financial support etc. Global Table Supply Co., Ltd. Minato-ku, Tokyo 30 Sales of supplies, equipment, etc. (holding) 100.00 Business transaction Financial support etc. Techno Construction Co., Ltd. Minato-ku, Tokyo 30 Design, construction and supervision of restaurants and stores (holding) 100.00 Business transaction Zensho CooCa Co., Ltd. Minato-ku, Tokyo 10 Trading of financial instruments (holding) 100.00 Business transaction Nihon Kaigo Holdings Co., Ltd. Minato-ku, Tokyo 10 Management of nursing care business (holding) 100.00 Business transaction Kagayaki Co., Ltd. (Note 2) Sapporo, Hokkaido 3 Nursing care business (holding) 100.00 (100.00) Business transaction Financial support etc. Royal House Ishioka Co., Ltd. (Note 2) Ishioka, Ibaraki 50 Nursing care business (holding) 100.00 (100.00) Business transaction Financial support etc. Senior Life Support Co., Ltd. (Note 2) Kawaguchi, Saitama 30 Nursing care business (holding) 100.00 (100.00) Business transaction Financial support etc. Nyereg Co., Ltd. (Note 2) Ama, Aichi 3 Nursing care business (holding) 100.00 (100.00) Business transaction Financial support etc. Name Location Share capital /investments (Million yen) Major business Ratio of voting rights holding/held (%) Details of relationship IMedicare Co., Ltd. (Note 2) Matsudo, Chiba 50 Nursing care business (holding) 100.00 (100.00) Business transaction Human Logic Laboratory Co., Ltd. Minato-ku, Tokyo 10 HR strategy business (holding) 100.00 Business transaction Jinzai Co., Ltd. Minato-ku, Tokyo 35 International HR recruitment support business (holding) 100.00 Business transaction Zenshoen Co., Ltd. (Note 3) Hiroo-gun, Hokkaido 9 Livestock business (holding) 49.45 Business transaction Financial support etc. Mizushita Farm Co., Ltd. (Note 3) Hiroo-gun, Hokkaido 3 Livestock business (holding) 49.66 Financial support etc. Global IT Service Co., Ltd. Minato-ku, Tokyo 10 IT business (holding) 100.00 Interlocking directorship Business transaction Zensho Best Crew Co., Ltd. Minato-ku, Tokyo 10 Recruiting operation (holding) 100.00 Business transaction Zensho Business Service Co., Ltd. Minato-ku, Tokyo 10 Self-supporting for challenged persons (holding) 100.00 Business transaction Financial support etc. Zensho Store Support Co., Ltd. Minato-ku, Tokyo 10 Self-supporting for challenged persons (holding) 100.00 Business transaction Zensho Clean Energy Co., Ltd. (Note 2) Minato-ku, Tokyo 10 Natural energy business (holding) 100.00 (100.00) Business transaction Kagayaki Nursery School Co., Ltd. Minato-ku, Tokyo 10 operating in-house nursery facilities (holding) 100.00 Business transaction Financial support etc. Zensho Insurance Service Co., Ltd. Minato-ku, Tokyo 10 Nonlife insurance agency business (holding) 100.00 Business transaction Seiun Sake Brewery Co., Ltd. Hiki-gun, Saitama 10 Brewing business (holding) 100.00 Business transaction Financial support etc. Global MD Holdings Co., Ltd. Minato-ku, Tokyo 10 Domestic and international procurement (holding) 100.00 Financial support etc. Marix Co., Ltd. (Note 2) Izumi, Kagoshima 25 Aquaculture business (holding) 100.00 (100.00) - Igarashi Marine Products Co., Ltd. (Note 2) Amakusa, Kumamoto 5 Aquaculture business (holding) 100.00 (100.00) Business transaction Zensho Rice Co., Ltd. Minato-ku, Tokyo 10 Sales of rice (holding) 100.00 Business transaction Financial support etc. Saito Shoten Co., Ltd. (Note 2) Shirakawa, Fukushima 8 Sales of rice (holding) 100.00 (100.00) Financial support etc. Shinagawa Design Co., Ltd. Minato-ku, Tokyo 10 UX design business (holding) 100.00 Interlocking directorship Business transaction Zensho USA Corporation (Note 1) California, USA 10 Thousand USD Management of Americas business (holding) 100.00 Business transaction Advanced Fresh Concepts Corp. (Notes 2) California, USA 100 Thousand USD Management of take-out sushi stores (directly- operated and franchise) (holding) 100.00 (100.00) - Pocino Foods Company (Notes 2) California, USA 28,904 Thousand USD Processing and sales of meat products (holding) 100.00 (100.00) Financial support etc. Zensho Food de Mexico S.A. de C.V. (Note 2) Mexico 515,520 Thousand MXN Management of Gyudon chain, Sukiya (holding) 100.00 (100.00) - Zensho do Brazil Comercio de Alimentos Ltda. (Notes 1 and 2) San Paulo, Brazil 210,337 Thousand BRL Management of Gyudon chain, Sukiya (holding) 100.00 (100.00) - Zensho China Holdings Co., Ltd. (Note 1) Shanghai, China 850,315 Thousand CNY Management of China business (holding) 100.00 Interlocking directorship Business transaction etc. Name Location Share capital /investments (Million yen) Major business Ratio of voting rights holding/held (%) Details of relationship Zensho Restaurant (Shanghai) Co., Ltd. （ Notes 1 and 2 ） Shanghai, China 327,975 Thousand CNY Management of Gyudon chain, Sukiya (holding) 100.00 (100.00) - Zensho Hong Kong Co., Ltd. Hong Kong China 119,100 Thousand HKD Management of Gyudon chain, Sukiya (holding) 100.00 Interlocking directorship Zensho Taiwan Co., Ltd. Taipei, Taiwan 552,400 Thousand TWD Management of Gyudon chain, Sukiya (holding) 100.00 - Zensho South East Asia Holdings Pte. Ltd. (Note 1) Singapore 145,924 Thousand SGD Management of South East Asia business (holding) 100.00 Interlocking directorship Zensho (Thailand) Co., Ltd. (Note 2 and 3) Thailand 6,000 Thousand THB Management of Gyudon chain, Sukiya (holding) 49.00 (49.00) Interlocking directorship Business transaction Financial support etc. PT. Zensho Indonesia Indonesia 131,668,121 Thousand IDR Management of Gyudon chain, Sukiya (holding) 51.00 Interlocking directorship Financial support etc. Zensho Japanese Restaurant Company Pte.Ltd. (Note 2) Singapore 12,760 Thousand SGD Management of ramen specialty restaurants, ICHIKOKUDO (holding) 100.00 (100.00) - Zensho Holdings Malaysia Sdn. Bhd. (Notes 1 and 2) Kuala Lumpur, Malaysia 309,065 Thousand MYR Management of Malaysia business (holding) 100.00 (100.00) - Zensho Foods Malaysia Sdn. Bhd. (Note 2) Kuala Lumpur, Malaysia 71,000 Thousand MYR Management of Gyudon chain, Sukiya (holding) 100.00 (100.00) - Zensho Ichiban Malaysia Sdn. Bhd. (Note 2) Kuala Lumpur, Malaysia 18,500 Thousand MYR Management of ramen specialty restaurants, ICHIBAN (holding) 100.00 (100.00) - Zensho Vietnam Co., Ltd. (Note 2) Vietnam 269,996,853 Thousand VND Management of Gyudon chain, Sukiya (holding) 100.00 (100.00) Business transaction Zensho (Philippines), Inc. Philippines 150,000 Thousand PHP Management of Gyudon chain, Sukiya (holding) 70.00 - TCRS Restaurants Sdn.Bhd. (Note 2) Kuala Lumpur, Malaysia 17,180 Thousand MYR Management of chicken rice specialty restaurants, etc. (holding) 100.00 (100.00) - Zensho Europe Holdings B.V. Netherlands 1 EUR Management of Europe business (holding) 100.00 Interlocking directorship Worldfood To Go, S.L. (Note 2) Spain 16 Thousand EUR Management of take-out sushi stores (directly-operated and franchise) (holding) 100.00 (100.00) - Sushi Circle Gastronomie GmbH (Note 2) Germany 1,000 Thousand EUR Management of take-out sushi stores (holding) 100.00 (100.00) - Zensho International Food Service Limited (Note 1) United Kingdom 345,786 Thousand GBP Holding company of take-out sushi business (holding) 100.00 Interlocking directorship Zensho International Limited (Note 1) United Kingdom 260,537 Thousand GBP Holding company of take-out sushi business (holding) 100.00 Interlocking directorship Financial support etc. Zensho International UK Limited (Note 1,2) United Kingdom 614,016 Thousand GBP Holding company of take-out sushi business (holding) 100.00 (100.00) Interlocking directorship Wonderfield TopCo Limited (Note 1,2) United Kingdom 14,939 Thousand GBP Holding company of take-out sushi business (holding) 100.00 (100.00) - Name Location Share capital /investments (Million yen) Major business Ratio of voting rights holding/held (%) Details of relationship Wonderfield Group Limited (Note 1,2) United Kingdom 207,017 Thousand GBP Holding company of take-out sushi business (holding) 100.00 (100.00) - Wonderfield US Holdco, LLC (Note 1,2) Delaware USA 113,251 Thousand USD Holding company of take-out sushi business in USA (holding) 100.00 (100.00) - Wonderfield US Holdco, Inc (Note 1,2) Delaware USA 75,095 Thousand USD Holding company of take-out sushi business in USA (holding) 100.00 (100.00) - JFE Franchising, Inc. (Note 2) Texas USA 300 Thousand USD Management of take-out sushi stores (directly- operated and franchise) (holding) 100.00 (100.00) - Bento Inc. (Note 2) Ontario Canada 1 CAD Management of take-out sushi stores (directly- operated and franchise) (holding) 100.00 (100.00) - Bento Nouveau Inc. (Note 2) Delaware USA 87 USD Management of take-out sushi stores (directly-operated and franchise) (holding) 100.00 (100.00) Bento Sushi Franchise Inc. (Note 2) Delaware USA 99 USD Management of take-out sushi stores (directly-operated and franchise) (holding) 100.00 (100.00) - Taiko Foods Limited (Note 2) United Kingdom 83 Thousand GBP Take-out sushi business (holding) 100.00 (100.00) - YO! Sushi UK Limited (Note 2) United Kingdom 1 Thousand GBP Management of take-out sushi stores (directly-operated and franchise) (holding) 100.00 (100.00) - 75 other companies Associates accounted for by the equity method MARUI Wasabi, Inc. (Note 2) California, USA 2,383 Thousand USD Production of powdered Wasabi (holding) 50.00 (50.00) Interlocking directorship Notes 1. Classified as specified subsidiaries. The figure in parentheses in the "Ratio of voting rights holding/held" column shows the indirect ownership ratio included in the total. Although the Company's shareholding is less than 50/100, it is regarded as a subsidiary because the Company has substantial control. Net sales (excluding inter-company sales between consolidated companies) of Sukiya Co., Ltd. is over 10% of consolidated net sales. Primary profit (loss) information, etc. (Million yen) (1) Net sales: 246,226 (2) Ordinary profit: 24,890 (3) Profit: 16,316 (4) Net assets: 29,829 (5) Total assets: 66,376 Net sales (excluding inter-company sales between consolidated companies) of Hamasushi Co., Ltd. is over 10% of consolidated net sales. Primary profit (loss) information, etc. (Million yen) (1) Net sales: 228,020 (2) Ordinary profit: 19,953 (3) Profit: 13,513 (4) Net assets: 32,840 (5) Total assets: 81,211 ‌Employees Consolidated basis (As of March 31, 2025) Reporting Segment Number of employees (Persons) Global Sukiya 4,893 (19,436) Global Hamasushi 1,951 (22,966) Global Fast Food 6,960 (8,436) Restaurants 884 (13,584) Retail 754 (2,512) Corporate and Support 2,295 (1,785) Other 1,005 (621) Total 18,742 (69,340) Notes: 1. Number of employees represents the number of active employees. 2. The number in parentheses refers to part-time employees (176 hours per month converted to one person), which is excluded from the number of employees. Non-consolidated basis (As of March 31, 2025) Number of employees (Persons) Average age (Years old) Average length of service (Years) Average annual salary (Thousand yen) 852 (132) 40.1 9.1 8,167 Notes:1. Number of employees include seconded personnel from other companies to the Company (68employees) but exclude seconded personnel from the Company to other companies (883employees). The number in parentheses refers to part-time employees (176 hours per month converted to one person), which is excluded from the number of employees. Average annual salary includes bonuses and other non-standard wages. Segment information is omitted as "Corporate and Support" is the only reporting segment of the Company. Labor unions The Group has Zensho Employees Association Network (ZEAN) and several unions at the operating company level. Each union is the member of Zensho Group Workers Union (ZWF). As of March 31, 2025, the number of ZEAN members is 58,081, and the number of ZWF members is 144,973. The relationships between the Company, subsidiaries, associates and these labor unions are quite cooperative and stable. Percentage of female workers in management positions, percentage of male workers taking childcare leave, and differences in wages between male and female workers (i) The company Current fiscal year Supplementary Explanations Percentage of female workers in management positions (%) (Notes 1 and 3) Percentage of male workers taking childcare leave (%) (Notes 2 and 4) Differences in wages between male and female workers (%) (Note 1) All workers Full-time workers Part-time and fixed-term workers 15.4 31.3 61.4 72.9 106.0 Part-time and fixed-term workers are calculated based on the number of full-time equivalents. Wages include bonuses and exclude commuting allowances. Notes:1. Calculated in accordance with the provisions of the "Act on the Promotion of Women's Active Engagement in Professional Life" (Act No. 64 of September 4, 2015). Based on the provisions of the "Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Member" (Act No. 76 of May 15, 1991), the percentage of child care leave, etc. taken is calculated as per Article 71-4-1 of the "Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members" (Ordinance of the Ministry of Labor No. 25 of October 15, 1991). Calculated at the company where the employee works (seconded personnel are included in the destination companies). Calculated at the employing company (seconded personnel are included in the source companies). (ⅱ) Consolidated subsidiaries Current fiscal year Supplementary Explanations Company name Percentage of female workers in management positions (%) (Notes 1 and 4) Percentage of male workers taking childcare leave (%) (Notes 2 and 5) Differences in wages between male and female workers (%) (Notes 1 and 5) All workers All workers Full-time workers Part-time and fixed-term workers (Note 3) Sukiya Co., Ltd. 10.5 34.6 96.8 88.9 97.7 Nakau Co., Ltd. 18.5 No eligible person 93.0 75.0 99.5 Katsuan Co., Ltd. 0.0 No eligible person 98.4 - 97.8 Lotteria Co., Ltd. 20.0 20.0 90.3 84.7 101.9 Coco's Japan Co., Ltd. 9.9 No eligible person 79.4 75.1 100.0 Big Boy Japan Inc. 5.6 No eligible person 90.8 87.6 98.8 Jolly-Pasta Co., Ltd. 0.0 50.0 109.1 80.5 123.0 TAG-1 Co., Ltd. 9.5 - 91.3 84.0 100.5 Hanaya Yohei Co., Ltd. 9.1 100.0 82.6 77.6 102.6 Olive Hill Co., Ltd. 14.3 No eligible person 80.3 68.9 99.4 Hamasushi Co., Ltd. 9.2 25.0 93.1 85.3 99.5 A Dining Co., Ltd. 0.0 - 102.2 - 102.7 Kyubeiya Co., Ltd. 12.5 - 99.8 81.6 102.2 Joy Mart Co., Ltd. 7.6 No eligible person 64.9 85.2 92.7 GFF Co., Ltd. 13.6 40.0 94.9 80.4 100.6 Kagayaki Co., Ltd. 65.6 No eligible person 78.8 87.2 98.6 United Veggies Co., Ltd. 13.5 - 58.6 97.0 81.4 Notes:1. Calculated in accordance with the provisions of the "Act on the Promotion of Women's Active Engagement in Professional Life" (Act No. 64 of September 4, 2015). Based on the provisions of the "Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Member" (Act No. 76 of May 15, 1991), the percentage of child care leave, etc. taken is calculated as per Article 71-6-1 of the "Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members" (Ordinance of the Ministry of Labor No. 25 of October 15, 1991). Part-time and fixed-term workers are calculated based on the number of full-time equivalents. Calculated at the company where the employee works (seconded personnel are included in the destination companies). Calculated at the employing company (seconded personnel are included in the source companies). ‌BUSINESS OVERVIEW ‌Management Policy, Business Environment and Issues to Be Addressed, etc. Forward-looking statements in this document are based on the judgment of the Group at the current fiscal year-end. Management Policy To remain a company "responsible for the stability and development of human society", further evolving the corporate founding philosophy of "Eradicating hunger and poverty from the world", the Group fulfils this responsibility through the creation of "food infrastructure" which the whole of humanity can live together peacefully by seeking to overcome conflicts arising from differences in race, religion, and ethnicity and by cooperating with each other. For this purpose, the Group develops a wide range of food businesses and is expanding globally with the mission of providing safe, delicious food at affordable prices to people around the world. To provide safe and delicious products and quality services to customers, the Group strives to develop a mass merchandising system (MMD) to plan and design all processes ranging from menu development through food procurement, production, processing, logistics and sales, and to implement integrated control of these processes. By practicing MMD, the Group will develop restaurants and stores that can be easily used by a wider range of customers at any time, further expand the business and improve efficiency, and strive to increase shareholder value. Business Environment The business environment surrounding the Group was affected by the prolonged situation in Ukraine and soaring prices of rice and increased prices of imported beef and other ingredients in Japan. Meanwhile, the recovery of foot traffic, normalization of economic activity and improvement in employment and income conditions continued to support a rebound in personal consumption from the previous period. Business and financial issues to be addressed with priority In implementing the management policy and the medium-term business plan stated in (i) and (iv), the business and financial issues to be addressed with priority are as follows: (Business and financial issues to be addressed) Pursuit of food safety The Group places the highest priority on providing safe food to its customers. Based on CODEX standards (global standards for food safety), the Group Food Safety Standard Division sets its own standards, provides food safety education to all employees, and provides food safety information to its suppliers and business partners. In the entire food chain of procurement, manufacturing, logistics, and sales, the traceability of food safety is guaranteed through the completion of food safety management by each group company. The safety of raw materials, packaging materials, and products is guaranteed by analyzing and inspecting hazards (factors that hinder health) at its Central Research Center and Microbiology Testing Center. In addition, the Group takes the incidents of contamination with foreign objects or substances that have been experienced since January 2025 with the utmost seriousness, and the Group will implement the following countermeasures to improve in-store conditions, especially in each business category involved in restaurant operations. Allocation of adequate time for cleaning, including temporary closures of restaurants during late-night hours Regular inspection and repair of cracks, holes, and other proximity breaches that may lead to infestations by harmful insects or rodents; systematic renovation of aging restaurants Review of restaurant design to reinforce against infestation and inhabitation by harmful insects or rodents and enhance ease of cleaning processes Thorough education for employees on safety and hygiene Evolution of the Mass Merchandising System (MMD) In order to ensure that customers can enjoy safe and delicious products with peace of mind, the Group has continued to ensure safety through MMD, while expanding its operations and pursuing group synergies with the aim of improving business performance. In addition, in consideration of the accelerated pace of overseas store openings, the Group will strengthen its procurement network through overseas bases, while pursuing food safety, improving product quality, and improving costs. Evolution of brands The Group will strive to evolve its brands in all aspects to meet the ever-evolving needs of its customers, to respond to their diverse lifestyles and to provide products, services and customer experiences that consistently exceed their expectations. Growth through restaurant and store openings and M&A The Group will continue to proactively open new restaurants and stores in Japan and overseas to enhance the profitability of its businesses. In addition, the Group will explore new business areas and further strengthen MMD by using M&A, and take measures to supply safe, high-quality food ingredients and promote the diversification of food. Recruitment and training in human resources Based on the idea that human resources are human capital that generates added value, the Group will hire excellent human resources who share Group's vision and develop human resources to support sustainable growth. In addition, the Group will promote diverse work styles including the advancement of female employees, strengthen mid-career recruitment and actively recruit and develop global human resources. Improvement of working environment To improve the working environment, the Group has implemented various improvement measures, including strengthening of compliance education for managers, establishment of a contact point and in-house training programs to prevent harassment, and enhancement of opportunities for dialogue with employees. The Group will continue to streamline operations through DX promotion, strengthen communication, and review the personnel evaluation system, salary system, and employee benefits to create a working environment where each employee can enhance his/her abilities and feel satisfaction and growth, thereby ensuring long-term stable employment. Establishment of a system to improve customer convenience and contribute to prompt business decisions The Group is building a system to improve customer convenience and productivity. Meanwhile, as a business management system, the Group is building a system to collect information on sales, inventory, etc. As the Group expands the sales bases of Group companies in Japan and overseas, the Group will further improve the efficiency of information collection and integration, and will also build a system and structure that will contribute to prompt decision making by management. Proactive approach to digital transformation (DX) Amid the rapid progress of digitalization, also known as the 4th Industrial Revolution, the utilization of artificial intelligence (AI), IoT, RPA, robots, and cloud computing has been accelerating. In stores, manpower reduction in both routine and non-routine labor is advancing due to technological innovations such as self-ordering, self-cashing, and robots, and the data utilization using IT. The Group will also promote the streamlining and automation of operations through proactive DX initiatives in each process, including stores, factories, logistics, and headquarters. Initiatives to ensure a stable supply of food ingredients The Group procures food ingredients used in its stores from both domestic and overseas sources, and is working to diversify its suppliers in order to address the risk of price increase due to climate change and exchange rate fluctuations in addition to challenges faced in procurement. In order to approach this issue, the Group will develop global bases for food ingredient procurement, gather information in and purchase directly from production areas, and strive to guarantee the procurement of safe, high-quality food ingredients. In addition, the Group will engage in analysis of the procurement risks presented by the recent phenomenon being referred to as the "Trump tariffs" from a global perspective, restructure its procurement network, and endeavor to develop new procurement channels. Objective management indicators, etc. for judging the achievement status of management goals The Group formulates medium-term management plans, and as Key Performance Indicators (KPI), sets targets for net sales, operating profit, ordinary profit, profit, operating profit to net sales ratio, ordinary profit to net sales ratio, profit to net sales ratio and ROE. The reason for focusing on the above KPI is to enable evaluations of progress and feasibility of the medium-term management policy, which refers a) profitability improvement of existing businesses, b) business expansion by new restaurant and store openings both in Japan and overseas, and c) development of personnel and improvement of working environment. The Group medium-term management plans and the targets of KPI are stated in "4. Management's Analysis on the Company's Financial Condition, Results of Operations and Cash Flow Conditions (2) Views and issues analyzed/discussed with regard to the status of results of operations, etc. from the management's perspective" ‌Philosophy and Initiatives for Sustainability Since its establishment in 1982, the Group has been committed to its management philosophy of "Eradicating hunger and poverty from the world" and has made it its mission "To provide safe, delicious food at affordable prices to people around the world" to achieve this goal. The "Zensho Group Charter," which is the guideline for the behavior of the Group members, begins with "The Zensho Group's Declaration," which states that through the development of its business, "We will realize a society in which all people are truly equal and which is capable of developing in a sustainable and harmonious way." The Group has further evolved its corporate philosophy and is committed to "taking responsibility for the stability and development of human society through food". To embody this philosophy, the Group is working to create a system that can stably supply "food" to all people as "food infrastructure" by developing a mass merchandising system (MMD) worldwide, in which all processes from food procurement to production, processing, logistics and sales are consistently planned, designed, and operated by the Group itself. In addition to business development as "food infrastructure," the Group has been engaged in its own direct fair trade since 2007. Currently, the Group is trading coffee and tea with 20 countries in Asia and Africa, and using the "social development funds" generated from fair trade, and the Group is engaged in social development support activities such as school construction, water supply facility improvement, and women's support. Through these activities, the Group will correct the imbalance in development brought by the negative aspects of capitalism and contribute to the realization of a sustainable world. The Group takes responsibility for the impact of its business activities on the global environment. The Group will act to ensure the sustainability of its business areas and the global environment itself through initiatives to issues closely related to its business areas, such as conservation of natural resources and use of food residues, in addition to such as the use of natural energy. Furthermore, based on the concept that human resources are "human capital," that generates added value, the Group is committed to human resource development and the creation of a workplace environment in which diverse human resources are active. As a global company originating from Japan, the Group established the " Zensho Japanese Culture Center " in Kyoto City in July 2021 to deepen understanding of its own culture to realize a society where multicultural people can live together in harmony. The Group will continue to make further efforts toward multicultural conviviality in the future. Governance The Board of Directors makes decisions on important matters such as sustainability policy and identification of materiality, evaluates medium- and long-term business risks and opportunities, and reflects them in management strategies based on an awareness of their impact on the business. The Company establishes the "Sustainability Committee" chaired by the director in charge of sustainability with the aim of further strengthening its sustainability management. The Sustainability Committee monitors initiatives and progress of sustainability-related issues focused on the materiality determined by the Board of Directors, and regularly reports the status of these activities to the Board of Directors. The "Global Environment Office," which directly reports to the director in charge of sustainability, serves as the secretariat of the Sustainability Committee and works with related departments and Group companies to aggregate information on the Group sustainability-related issues. The materialities decided by the Board of Directors are as below. Stable supply of safe food to the world Contribution to the regional community Creation of a rewarding and worthwhile organization Growth and prosperity with its partners Sustainability Committee monitoring initiatives and progress of sustainability-related issues Board of Directors Environmental initiatives (System chart) Global Environment Office aggregating information on the sustainability issues promoting sustainability issues related departments and Group companies Group operating companies (restaurant, retail, nursing care) Group Manufacturing Companies Group Functional Companies Strategy Risks and opportunities The Group has considered the risks and opportunities that its group faces as a result of climate change. The risks and opportunities of climate change include those arising from the "transition" to a low-carbon economy and society, such as tightening laws and regulations concerning GHG emissions, and those arising from "physical" changes, such as more severe weather disasters. The Group has extracted and identified "Transition Risks," "Physical Risks," and "Opportunities" to be addressed in its business areas as follows. Category Risk Category (broad category) Impact Risk Category (subcategory) Contents Transition Risks Market Risk Middle Changes in consumer preferences and behavior preferences Technology Risk Middle Adapting to technological innovation Policy and Legal Risks Large Rising costs due to introduction of carbon tax introduction of a carbon tax Rising energy costs Tightening plastics regulations Reputation Risk Middle Changes in consumer reputation selection based on customer evaluations Changes in investor reputation Physical Risks Acute Risk Large Intensifying natural and weather disasters disasters (e.g., typhoons) Impact of water stress weather conditions Chronic Risk Large Increasing average temperature Changes in precipitation and weather patterns Opportunities Market Middle Changes in consumer preferences and behavior preferences and behavior Technology Middle Adapting to technological innovation Development of renewable energy Policy and Legal Small Addressing energy costs Reputation Small Improving investor reputation Climate Change (Acute) Middle Intensifying natural and weather disasters adapt to extreme weather conditions Decrease in sales of existing business categories due to changing customer Rising costs due to delayed adaptation to DX and other technological innovations Increase in raw material procurement and logistics costs due to the Increase in energy costs due to higher fossil fuel and electricity prices Increased costs due to changeover to alternative plastics Increased public awareness of climate change response and progressive Progressive selection of investment destinations by ESG investors Damage to restaurants, stores, factories, and logistic facilities caused by natural disasters (e.g., earthquakes) or weather Risk of water procurement due to heat waves, droughts, etc. caused by extreme Deterioration of raw material quality and yield due to higher average temperatures Impact of rising temperatures on livestock growth Impact on higher feed prices Price increases due to adverse impact on raw material production areas caused by changes in precipitation and weather patterns Increase sales by developing new businesses and business categories in line with changes in customer Improve productivity by promoting DX, robotization, etc. Reduce carbon tax burden through renewable energy initiatives, etc. Decrease in raw material procurement costs by streamlining business processes and facilities throughout the supply chain, including suppliers Decrease in logistics costs by improving logistics efficiency Improvement of procurement capability through Sustainability Bonds, etc. by enhancing the evaluation of ESG initiatives Maintain customers by developing a supply system and infrastructure that can The identified "risks" and "opportunities" will be reflected in the Group's strategies and measures, and the Group will work toward the realization of a sustainable society. Policies and strategies for human resource development and internal environmental development With regard to investment in human capital, the Group strives to secure sufficient budgets for education and competitive compensation levels under its basic policy of developing competitive human resources through the education systems and qualification examination systems for each specialized field, proactive reassignment, and encouragement of self-development. The Group also believes that mutual understanding of multicultural conviviality is necessary for humankind to overcome conflicts arising from differences in race, religion, and ethnicity in times of uncertainty. As an organization for this purpose, the Company established the "Zensho Japanese Culture Center" in July 2021 to lay the foundation for future global expansion. Specifically, the Group is developing a training program based at an educational facility in Kyoto City to expose employees to Japanese culture and improve their education from April 2022. Policies on the development of human resources, including ensuring diversity of human resources, and policies regarding the development of the internal environment are as follows. Developing and securing human resources The Company has long described human resources as "human assets," and in the "Zensho Group Charter" that defines the code of conduct for employees, the Company has set "a vital organization that values diversity, independence and originality, in which everyone can work vibrantly" as one of the organizational goals. In the promotion of human assets, the Company is creating an environment that allows equal opportunity in the evaluation of abilities while considering diversity in terms of gender, nationality, work experience, and other factors. Specifically, the Company introduces a job rotation system which allows employees to develop their abilities while gaining experience in a variety of positions and provides training by department and job level, selective training to discover next-generation leaders, and training to experience Japanese culture. As part of its support for self-development, the Company also provides TOEIC examinations for English learning support and opportunities for multilingual learning, as well as selective language training for some employees. In addition, in discussions between management and the labor union, the Company has committed to "10 consecutive years of salary increases" in 2021, and this year, the union has also implemented an increase in starting salaries for university graduates and a 11.2% salary increase for full-time unionized employees. As a result, the cumulative wage increase rate for the last three years (2023 to 2025) is 36.7%. In an increasingly competitive market for human resources, the Company will continue to identify human resources to lead the organization, and to improve the number of recruits and retention rates. Promotion of females' activities and support for balancing work and childcare The following initiatives are underway with the aim of creating an organization in which female employees and employees raising children can play an active role by using their strengths, as well as a system to support them. Establish a consultation service for female employees to support their work before childbirth leave, their return to work, and their work during childcare. Establish a consultation service for male employees taking childcare leave. Establish a system of shortened working hours for employees raising children up to elementary school age and introduce a staggered working hour system. Expansion and structuring of the types of work and positions that can be performed by employees with shortened working hours. Introduction of a leave system that can be used for nursing care of family members, infertility treatment, childcare, and participation in childcare events. Posting of a booklet for pregnant and child-caring employees on the intranet. Internal environmental improvement The Company is promoting the following initiatives to make a company where everyone can work comfortably. Stabilization of restaurant and store operations and improvement of services through community-based management Preventing the occurrence of long working hours through the Time Management Committee Ensure a safe and secure working environment by establishing a system of multiple late-night shifts (strengthening the security system) Expansion of open restaurant and store operations by holding nationwide crew meetings Maintain and improve the living standards of all employees and raise the level of service in restaurants and stores by improving the compensation of crew members Reduce the workload associated with the establishment of take-out and self-ordering systems Review of operations manuals to improve productivity and reduce crew workload at restaurants and stores through the use of DX. Safety and health of employees To ensure the safety and health of employees, the Company has the Health Support Office at the Shinagawa Head Office, staffed by qualified and experienced nurses and public health nurses, to promote mental and physical health. An industrial doctor visits the office several times a month to provide health-related consultations. Furthermore, the Company is a partner company in the Action for Companies Promoting Cancer Control, and are working to improve the cancer screening uptake rate. The Company provides subsidies for influenza vaccinations. As a system to support female in childbirth and childcare, the Company allow female to take leave for 6 weeks before childbirth and 8 weeks after childbirth, and both male and female can take childcare leave (until the child is up to 3 years old) and work shorter hours for childcare (until the child enters junior high school). Risk management The Sustainability Committee confirms and evaluates the progress of initiatives in line with the "Materiality" identified by the Board of Directors and the "Risks" and initiatives to "Opportunities" for sustaining the business, and reports to the Board of Directors as appropriate. When changes to the Sustainability Policy or Materiality are required in environmental or social conditions changes, the Sustainability Committee will review the changes and submit them to the Board of Directors for final approval. Indicators and Targets Indicator Target Result （ Current fiscal year ） Percentage of female workers in management positions 30% by March 2029 15.4 ％ Percentage of male workers taking childcare leave 50% by March 2026 31.3 ％ The Company is addressing specifically based on policies of human resource development, including ensuring diversity of human resources and policies of the development of the internal environment described in the above "(2) Strategies", and also manages data of indicators related to them, but not all companies in the consolidated group implement such policies. For this reason, it is difficult to describe indicators for the Group, therefore the targets and results for the following indicators are those of the Company. ‌Business Risks, etc. The following are principal risks the Group faces that may have a significant impact on management decisions. Recognizing the possibility of these risks, the Company will seek to avoid them while preparing to respond appropriately in the event that they do occur. This information includes forward-looking statements that reflect judgments made at the current fiscal year-end. Control of safety of food products The Group is thoroughly committed to ensuring food safety by setting up the Group Food Safety Standard Division, appointing a director in charge, and setting up a food safety and quality assurance department in each Group company, so that safe and delicious products can be offered to its customers. In the unlikely event of a food safety issue such as incidents of contamination with foreign objects/substances or mass food poisoning, the Group has established the system through which such information will be reported to each Group company's head office within one hour to minimize the damage. However, the loss of corporate image may affect the business results and financial position of the Group. Natural disasters and pandemics The Group has created a BCP plan and a BCP manual in preparation for natural disasters such as large-scale earthquakes, floods, and typhoon and for a pandemic caused by infection, which occur in the regions including its restaurants, stores, factories and distribution center. In the event of a disaster, etc., necessary measures are quickly considered and implemented under the direction of the Emergency Response Headquarters, but since it is difficult to avoid all risks, the damage may cause a scale down of its business activities and it may affect business performance and financial condition of the Group. Establishment strategies and operation of restaurant and store The Group reduces the risk of unprofitable restaurants and stores by having its specialized department evaluate and select the opening area after forecasting sales in candidate sites based on the trade area population, traffic volume and the status of competitor, and after considering conditions such as lease and investment amounts. The number of candidate sites is not significantly decreasing at this time, but if the number of sites that satisfy the conditions for opening restaurants and stores decreases and their establishment plans are revised, or the location environment changes, this may affect the business performance and financial position of the Group. Country risks in overseas expansion Business expansion into overseas market including China, Americas, South-east Asia and Europe is a part of the Group's business strategy, and overseas subsidiaries are engaged in direct operation of restaurants and stores, development of franchises, management of production, processing and sales of foods, etc. The Group makes efforts to collect overseas subsidiaries information on country risks including war, political situation, economy, unpredictable changes in laws and regulations, natural disasters, business practices, etc., and establishes systems through which the Group can respond immediately to such events when they occur. However, such events may affect the business performance and financial position of the Group. Securing human resources It is important for the Group to secure human resources, in order to keep operating restaurants and stores that can satisfy customers. Therefore, the Group strives to create a comfortable working environment for employees. Specifically, the Group enhances initiatives such as those listed below. However, in future, if sufficient personnel cannot be secured due to deterioration in the balance between labor supply and demand or other reasons, this may affect the business performance and financial position of the Group. To operate restaurants in an open and free atmosphere, Sukiya and the labor union jointly organize "Crew Meeting" nationwide, where crews conduct mutual discussions. Based on the opinions expressed at the "Crew Meeting," the Group actively works to respond to matters raised, which have included the opening of the "Kagayaki Nursery School" in Tsukuba City, Ibaraki Prefecture. This initiative is now expanded to other businesses and continuously conducted. To create a comfortable working environment for female employees, the Group has established a consultation office to provide support for working during pregnancy, prenatal and postnatal leave, childcare leave, returning to work, and working after returning to the work. In addition, the Group is striving to create a working environment in which female employees can play an even more active role while raising children by expanding the types of jobs and duties that allow shortened working hours. Security of personal information The Group holds a substantial volume of personal information related to customers, employees and shareholders at each restaurant, store and its headquarters. To oversee the protection and management of personal information, the Company has established the Personal Information Protection Management Committee, have formulated specific rules regarding the handling of personal information of the Group, and promote understanding and penetration of the rules within the Group. Furthermore, the Group provides guidance and education about managing personal information by appointing a personal information protection officer at each department in each company to clarify the responsibility for handling personal information of its own department business, and holds seminars for each COO (Chief Operating Officer) and General Manager to recognize the importance of personal information. As stated above, the Group is strictly controlling information and striving to prevent leakage of personal information. However, if such personal information is leaked to outside parties, the image and social credibility of the Group will be lost and this may affect the business performance and financial position of the Group. Dependence on information systems The Group relies on information systems for its main operations such as restaurant and store operation, purchasing food ingredients, and delivery. The Group IT Division is working to reduce risks by implementing appropriate preventive measures against malicious attacks such as computer viruses and cyber-attacks. No such risk has materialized in the past. However, if various failures occur in the information system due to these attacks, efficient operation may be hindered or important data may be lost and it may affect the business performance and financial position of the Group. Procurement of food materials and fluctuation in prices Since the food ingredients used by the Group are diverse, the Group MD Headquarters of the Company are conducting risk hedging activities such as developing raw material production areas and diversification of procurement. When procurement instability or soaring prices of raw materials occurs due to geopolitical risks, changes in economic activities, tariffs and other import/export restrictions of each country, outbreaks of epidemics such as BSE, bird flu, and pig cholera, natural disasters such as large-scale floods and typhoons, and fluctuations in exchange rates, it may affect the business performance and financial position of the Group. Laws and regulations In addition to the generally applicable laws and regulations such as the Companies Act and the various Corporation Tax Act, the Group is also subject to various legal regulations and systems governing restaurant and store management, including the Food Sanitation Act, the Labor Standards Act, and environment-related laws and regulations. The Group is trying to reduce risks by accurately collecting necessary information by joining various industry groups. However, if these legal regulations are strengthened, new costs will be required to comply with such regulations and it may affect the business performance and financial position of the Group. M&A The Group continues to expand its business and achieve sustainable growth through pursuing mergers and acquisitions (M&A) in addition to opening new restaurants and stores. When conducting M&A, the Company's specialized departments and outside experts conduct detailed due diligence, investigate and analyze the target company from multiple perspectives to avoid as much risk as possible. However, after M&A are executed, it is possible that the initially expected benefits or effects may not be achieved due to the emergence of contingent or unrecognized liabilities, the discovery of compliance issues and changes in the market or competitive environment. In this case, it may affect the business performance and financial position of the Group. Rising interest rates The Group has raised funds used for capital investments in restaurants, stores, factories, etc. and for M&A activities by borrowing from financial institutions and corporate bond issuance. The majority of these funds are long-term and fixed-rate financing, ensuring a certain degree of resistance to rapid increases in interest rates. But increased cost burden in the long-term from a period of rising interest rate may affect the business performance and financial position of the Group. Asset-impairment accounting The Group owns tangible fixed assets relating to restaurants and stores, goodwill acquired through corporate acquisitions, and intangible fixed assets with indefinite useful lives. In cases where expected cash flow cannot be realized or where recovery of such assets cannot be expected due to the decline in profitability, impairment losses may be required to be recorded, which may affect the business performance and financial position of the Group. Reputation risk The Group will promptly act appropriately in case of inappropriate acts such as violation of legal compliance. However, if malicious rumors against the Group are generated or disseminated by media reports or posted on the internet, whether it is based on accurate facts or not, the Group's social credibility will be damaged and this may affect the business performance and financial position of the Group. Litigations The Group may be subject to various legal proceedings by lawsuits and regulatory agencies regarding the conduct of the business. To date, no litigation with an impact on the Group's business performance has been filed. However, if litigation with a significant impact on its business performance or on society occurs and decisions are made against the Group, it may affect the business performance and financial position of the Group. Compliance The Group aims to be a corporate group with transparency and sincerity and is continuously working to thoroughly enhance and establish compliance awareness. In "Group Risk Management Rules" and "Group Compliance Rules," the Group recognizes various risks of the Group comprehensively and appropriately, determines risks to be managed, defines the department in charge and works to develop and enhance the risk and compliance management systems. Furthermore, in order to manage various risks within the Group comprehensively based on the rules, the Group sets up the Comprehensive Risk Management and Compliance Committee to check the implementation status of risk countermeasures in the department in charge, and takes prompt and proper measures. However, in the event of compliance problems such as violations of laws, regulations or company rules by individual directors and employees, and inappropriate behavior in terms of socially accepted norms by them, it may affect the business performance and financial position of the Group. ‌Management's Analysis on the Company's Financial Condition, Results of Operations and Cash Flow Conditions (1) Summary of operating results, etc. Overview of the financial position, performance of business, and cashflow (hereinafter, the "Performance of business, etc.") of the Group for the current fiscal year were as follows. (i) Details of consolidated financial position and financial results In the current fiscal year (from April 1, 2024 to March 31, 2025), consolidated business performance was net sales of 1,136,684 million yen (up 17.7% year-on-year), operating profit of 75,128 million yen (up 39.9% year-on-year), ordinary profit of 71,890 million yen (up 41.2% year-on-year), and profit attributable to owners of parent of 39,290 million yen (up 28.0% year-on-year). The business environment surrounding the Group was affected by the prolonged situation in Ukraine and soaring prices of rice and increased prices of imported beef and other ingredients in Japan. Meanwhile, the recovery of foot traffic, normalization of economic activity and improvement in employment and income conditions continued to support a rebound in personal consumption from the previous period. In the Group as well, demand was on the rise, with more families and groups utilizing relevant services mainly in the restaurant industry. Under these circumstances, year-on-year same restaurant and store sales in each reporting segment were: 109.8% in Global Sukiya, 117.1% in Global Hamasushi, 108.8% in Global Fast Food, 111.7% in Restaurants, and 98.2% in Retail. As of the end of the fiscal year ended March 31, 2025, the number of restaurants and stores was 15,419 (including 8,559 franchises), the result of 880 restaurant and store openings and 570 closures. An overview of conditions by business segment is provided below. Additionally, references to net sales are net sales to external customers. (Global Sukiya) Net sales of Global Sukiya during the current fiscal year were 295,757 million yen (up 11.5% year-on-year) with operating profit of 24,508 million yen (up 32.4% year-on-year). " Sukiya" has locations in Japan, China, Southeast Asia, and Central and South America, providing its mainstay Gyudon to families and groups with safety, good flavor, and reasonable pricing. At domestic "Sukiya," the Group provided a wide selection of various dishes, including "Gyudon with Cod Caviar Mayo & Cheese," "Sukiyaki Style Gyudon with Raw Egg," "Salmon Caviar Rice Bowl," and " Gyudon with Bibimbap." In addition, since January 2025, some domestic Sukiya restaurants have experienced incidents of their products being contaminated with foreign objects or substances. The Group has taken these incidents seriously and temporarily suspended operations at all restaurants except for some restaurants for 4 days starting on March 31, implementing thorough cleaning and other relevant countermeasures. The number of restaurants in this reporting segment as of the end of the current fiscal year was 2,621 (1,969 domestic, 652 overseas), the result of 97 restaurant openings and 108 closures. (Global Hamasushi) Net sales of Global Hamasushi during the current fiscal year were 248,495 million yen (up 26.1% year-on-year) with operating profit of 21,352 million yen (up 87.0% year-on-year). Hamasushi has locations mainly in Japan and China, providing menu items such as sushi, prepared with fresh seafood, alongside side menu items including noodles, desserts, and drinks. These foods are enjoyed by everyone, from children to adults. The number of restaurants in this reporting segment as of the end of the current fiscal year was 735 (639 domestic, 96 overseas), the result of 70 restaurant openings and 2 closures. (Global Fast Food) Net sales of Global Fast Food during the current fiscal year were 314,125 million yen (up 28.9% year-on-year) with operating profit of 29,150 million yen (up 108.7% year-on-year). " Nakau," a Japanese fast food chain, provides a wide variety of foods at affordable prices, mainly with oyakodon rice bowl dishes and Kyoto style udon noodles. "AFC," "SNOWFOX," "YO!," "Bento" and "Sushi Circle" provide sushi and other takeout foods mainly in North America and Europe. This reporting segment also includes "Lotteria," a hamburger restaurant chain, "Katsuan," a tonkatsu specialty restaurant, "Kyubeiya," which serves Musashino style udon noodles and "The Chicken Rice Shop," a halal certified chicken rice specialty restaurant. The number of restaurants and stores in this reporting segment as of the end of the current fiscal year was 10,732 (960 domestic, 9,772 overseas; including 8,482 franchises), the result of 703 restaurant and store openings and 443 closures. (Restaurants) Net sales of Restaurants during the current fiscal year were 156,085 million yen (up 10.9% year-on-year) with operating profit of 11,393 million yen (up 53.6% year-on-year). " Coco's," a standard restaurant chain, has made efforts to improve its business performance by enhancing product competitiveness through active introduction of fair menus with a focus on seasonality, pursuing authentic taste rivaling specialty restaurants, and improving the standard of services to enable customers to enjoy meals with satisfaction. This reporting segment also includes "Jolly Pasta," a pasta specialty restaurant chain, "Big Boy," a chain of hamburger steak and steak restaurants, "Jukusei Yakiniku Ichiban," a barbeque chain that offers carefully selected beef, "OLIVE HILL," an Italian cuisine specialty restaurant chain, and "Hanaya Yohei," a Japanese cuisine chain. The number of restaurants in this reporting segment as of the end of the current fiscal year was 1,186 (1,185 domestic, 1 oversea; including 77 franchises), the result of 7 restaurant openings and 10 closures. (Retail) Net sales of Retail during the current fiscal year were 76,032 million yen (down 3.1% year-on-year) with an operating loss of 1,794 million yen (operating loss of 924 million yen in the fiscal year ended March 31, 2024). This reporting segment includes "Maruya" and "Joy Foods," supermarkets with locations primarily in the North Kanto area, and "United Veggies," which operates fruit and vegetable stores. The number of stores in this reporting segment as of the end of the current fiscal year was 126, the result of 1 store opening and 7 closures. (Corporate and Support) Net sales of Corporate and Support during the current fiscal year were 4,887 million yen (up 9.7% year-on-year) with operating loss of 7,418 million yen (operating profit of 3,948 million yen in the fiscal year ended March 31, 2024). This reporting segment includes GFF CO., LTD, which manufactures and processes food, Global Fresh Supply Co., Ltd., which manages logistics functions, and Global Table Supply Co., Ltd., which procures uniforms, equipment, etc. (Other) Net sales of Others during the current fiscal year were 41,300 million yen (up 14.8 % year-on-year) with an operating loss of 2,002 million yen (operating loss of 605 million yen in the fiscal year ended March 31, 2024). This segment includes Tolona Japan Co., Ltd., which plans, develops, and sells frozen foods for home use, etc., Sanbishi Co., Ltd., which manufactures and sells soy sauce and dressing, etc., Kagayaki Co., Ltd., which operates the nursing business, and Zensho Rice Co., Ltd., which sells brown and milled rice. Assets amounted to 813,109 million yen as of the end of the current fiscal year, an increase of 65,052 million yen compared with the previous fiscal year-end. This was mainly due to increases in property, plant and equipment. Liabilities amounted to 572,737 million yen as of the end of the current fiscal year, an increase of 39,333 million yen compared with the previous fiscal year-end. This was mainly due to increases in interest-bearing liabilities. Net Assets came at 240,371 million yen as of the end of the current fiscal year, an increase of 25,719 million yen compared with the previous fiscal year-end. This was mainly due to an increase in retained earnings.

View stock analysis, news, and events for Zensho Holdings Co., Ltd.