Toridoll Corporation FY2015(4Q) Financial Result

May 16, 2016

1

Financial Result Digest FY2015(4Q)

2

Profit & Loss Outline

※ Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses (EBITDA = Operating profit + Other operating expenses - Other operating income + Depreciation and amortization)

3

Profit for this year increase 2.6 times as last year, reach a record high.

Highlights (Consolidated) ・Domestic business has been performing well and Overseas business became profitable early. ・Profit for the year of this period increased by 2.6 times as much as that of last year. (Non-consolidated) ・Performance of Existing Stores increased (+6.4% vs. previous period). Performance of Existing Stores of Marugame Seimen brand increased (+6.7% vs. previous period). ･Material cost decreased by price revision and Advertising cost increased by broadcasting TV CM’s. ・Cost ratio to Net sales decreased because of Net sales increase.

Consolidated PL (IFRS) (unit: Million yen)

Actual Ratio toRevenue Planned Ratio to

RevenueRatio to

Plan Amount Ratio toRevenue

Ratio toPrev. period

Revenue 95,587 100% 93,399 100% 102.3% 87,294 100% 109.5%Adjusted EBITDA 12,799 13.4% - - - 10,013 - 127.8%Operating profit 8,733 9.1% 6,440 6.9% 135.6% 4,175 4.8% 209.2%Profit before tax 8,117 8.5% 6,092 6.5% 133.2% 3,614 4.1% 224.6%Profit for the year 5,242 5.5% 3,758 4.0% 139.5% 2,011 2.3% 260.7%Profit for the yearattributable to owners ofthe parents 5,212 5.5% 3,695 4.0% 141.1% 1,982 2.3% 263.0%

Previous periodThis period

Profit & Loss Outline（J-GAAP）

4

Consolidated PL (J-GAAP) (unit: Million yen)

Actual Ratio toNet sales Amount Ratio to

Net salesRatio to

Prev. period

Net sales 95,587 100% 87,294 100% 109.5%Operating profit 10,026 10.5% 7,564 8.7% 132.5%Ordinary profit 9,266 9.7% 6,994 8.0% 132.5%Profit for the year 5,395 5.6% 2,640 3.0% 204.4%

Non-consolidated PL (J-GAAP)

Actual Ratio toNet sales Planned Ratio to

Net salesRatio to

Plan Amount Ratio toNet sales

Ratio toPrev. period

Net sales 89,611 100% 87,971 100% 101.9% 83,479 100% 107.3%Gross profit 67,176 75.0% - - - 62,254 74.6% 107.9%Operating profit 9,886 11.0% - - - 8,144 9.8% 121.4%Ordinary profit 9,498 10.6% 8,500 9.7% 111.7% 8,096 9.7% 117.3%Profit for the year 5,467 6.1% 4,004 4.6% 136.5% 2,467 3.0% 221.6%

This period Previous period

This period Previous period

4,600

4,700

4,800

4,900

5,000

5,100

5,200

5,300

5,400

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

（unit: Million yen）

※Calculation is based on the Existing Stores at the end of March, 2014.

5

Non-consolidated Sales Change of Existing Stores of Marugame Seimen Brand

（Year –over-year result in domestic Existing Stores）

Moving average for 12 months of Existing Stores

Sales keep increasing for consecutive

20 months

Monthly sales of Existing Stores of Marugame Seimen brand keep better than last year’s months even after August, 2015 when a whole yearly promotion measures ended.

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total

Net Sales 117.0% 113.3% 106.2% 111.8% 102.0% 101.1% 103.6% 103.2% 108.5% 109.6% 103.3% 103.5% 106.7%

# of Guests 108.9% 106.5% 99.2% 104.5% 99.2% 98.6% 101.1% 100.2% 101.9% 103.8% 98.3% 99.6% 101.8%

Sales per Guests 107.4% 106.4% 107.0% 107.0% 102.8% 102.5% 102.5% 103.0% 106.5% 105.6% 105.0% 104.0% 104.9%

Sales & Marketing Measures

Developed value-added menus effectively, such as “Niku tama ankake Udon“ and “Dashitama niku zutsumi Udon“, based on the data from previous years.

Improved variety of value-added products and sub-products which contributed to increasing their composition ratio of sales.

Rolled out cost effective promotions such as limiting the TV commercials to specific areas.

Guest-count Increasing Measures

Eliminated staff lack : increased approx.+2,000 staffs compared to previous period （※Head count of part-time workers）

Implemented trainer certification Trained trainers who can not only provide knowledge and techniques but also equipped with the ability to teach, which contributed to more effective training of newly hired and retention of the staffs

Reinforced the sales of “Tempura” of take-aways.

6

Measures implemented to support the performance of the Existing Stores

Measures Implemented in the 2nd Half

Year-on-year Analysis of Adjusted EBITDA

Adjusted EBITDA ratio to Net sales for the 1st half of this period achieve 13.4%. +1.9pt because of decrease of cost ratio (by increase of sales) in domestic business and improvement of profit structure in overseas business

7

11.5%

+0.5%

+0.3pt

+0.6pt

-0.8pt

13.4%

+1.2pt

Note 1) Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses (EBITDA = Operating profit + Other operating expenses - Other operating income + Depreciation and amortization

Non-consolidated

Open Close779 8 -12 775

Road Side 622 1 -8 615Shopping Center 157 7 -4 160

Toridoll (Yakitori) 19 2 -3 18Marushoya (Ramen) 14 -1 13Nagatahonjoken (Yakisoba) 14 -2 12Kona's Coffee etc. (Café) 8 7 -2 13Others 14 7 -3 18

848 24 -23 849

March2016

March2015

During period

Total

Marugame Seimen (Udon)

Subidiaries, JVs, FCs

Open CloseHawaii Marugame Udon 2 2Korea Marugame Udon 10 3 -2 11TDC Tokyo Table 5 -4 1GEORGE’S CRACKIN KITCHEN 1 1 -1 1Taiwan (90%) Marugame Udon, Tonichi 10 8 18Kenya (90%) Teriyaki Japan 1 1 2Cambodia (65%) Marugame Udon 0 1 1NNE (60%) Kaya Street Kitchen 0 2 -1 1WOK TO WALK (60%) WOK TO WALK 0 78 -1 77Russia (49%) Marugame Udon 5 5Thailand (40%) Marugame Udon 17 11 -3 25U5FB (40%) Boat Noodle、Chill Chill 0 17 17China (37%) Marugame Udon 27 16 -1 42Malaysia (30%) Marugame Udon 0 2 -1 1Indonesia Marugame Udon, Toridoll 16 12 28Vietnam Marugame Udon etc. 5 5 10Australia Marugame Udon 3 -2 1

102 157 -16 243Total

BrandMarch2015

During period March2016

Open/Close Stores Outline

8

+24 stores for Domestic; +157 stores in Overseas (+85 stores by Acquisition) Huge progress in number of shops in overseas business, which lead 1,092 shops of Toridoll Group at end of FY2015.

Number of stores by brands/countries

Note 1) Name of “DREAM DINING CORPORATION“ was changed to “TORIDOLL DINING CORPORATION” （”TDC”）. This subsidiary company is operating/managing “Tokyo Table” brands in north America. Note 2) GEORGE’S CORPORATION (”GEORGE’S”) is operating/managing “CRACKIN’KITCHEN” brand. Note 3) Nom Nom Enterprise LLC（”NomNom”）is operating/managing “Kaya Street Kitchen” brand in L.A.. Note 4) Wok to Walk Franchise B.V.（”WOK TO WALK”）is operating/managing “WOK TO WALK” brand around Europe.

Overseas segment J-GAAP

Actual Ratio toRevenue Amount Ratio to

RevenueRatio to

Prev. period PlannedProgress

rate

Revenue 6,255 100.0% 4,030 100.0% 155.2% Revenue 5,469 114.4%OP of Overseassegment 436 7.0% △ 620 - -

Operatingprofit 278 157%

This period FY2015(4Q)Previous period

Overseas Consolidated Subsidiary Companies’ PL Outline

9

Operating profit of overseas segment improve 500 million yen from last year. Overseas business turn into the black earlier than scheduled.

Improve 500 million yen from last year by maintaining opening new stores and closing unprofitable stores. Taiwan : 190 million yen increased Russia : 240 million yen improved GEORGE’S : 100 million yen improved

Profit of investments accounted for using the equity method improve 130 million yen from last year by the profitability of China business

Profit at store level has been profitable since before. Stable profit and scalability are ensured covering the cost of store opening and head office

（Unit: Million yen）

-620

43

436

FY13 FY14 FY15 2Q FY15 4Q

Achievement of profitability

10

USA

• Tokyo Table operated by TDC continues to perform well. Plan to open a 2nd store is under way.

• Marugame Seimen Waikiki and CRACKIN’KITCHEN continue to perform well. They proudly represent No.1 and No. 2 sales among all stores of Toridoll in the world.

Asia

• Taiwan：Continues to perform well with high profitability. New Tonkatsu brand opened in October and planning on expanding.

• Korea：Affected by MERS, but recovering. Improved by closing unprofitable stores.

• China：Both existing and new stores are performing well. Continue to expand aggressively.

• Thailand：Struggling with the influence of terrorism. Improve by closing unprofitable stores.

• Indonesia：Performing well. Acquired halal authorization last October. Continue to expand aggressively.

• Vietnam：Continuing to open new stores. 7th store of Marugame Seimen opened recently. Examining transition to Joint Venture company.

• Cambodia：Implementing measures, such as introducing breakfast menu, to improve profitability.

• Malaysia （Boat Noodle）：Operating 17 stores currently and aggressively expanding.

Others

• Kenya ： Struggling with the influence of strikes. Measures taken to enhance profitability.

• WOK TO WALK：Aggressively expanding with currently 77 stores. Seeking direct-owned stores as well as expanding areas of franchise stores.

Overview of Overseas Businesses by Locations

BS Outline

11

Equity attributable to owner of parent company for this period: 51.9% Interest-bearing liabilities dependence: 25.3%

Main factors of fluctuation Decrease of assets ●Decrease of cash equivalents by little borrowing money Decrease of liabilities

●Little borrowing money Increase of equity ●Profit for the year

Consolidated BS (IFRS)

Amount Ratio Amount Ratio Difference

Total assets 57,793 100.0% 59,019 100.0% △ 1,226

Current assets 13,680 23.7% 17,997 30.5% △ 4,317

Non-current assets 44,113 76.3% 41,022 69.5% 3,091

Total liabilities and equity 57,793 100.0% 59,019 100.0% △ 1,226

Liabilities 26,921 46.6% 33,659 57.0% △ 6,738

(included interest-bearing liabilities) 14,614 25.3% 21,489 36.4% △ 6,875

Current liabilities 15,804 27.3% 18,329 31.1% △ 2,525

Non-current liabilities 11,117 19.2% 15,330 26.0% △ 4,213

Total equity 30,872 53.4% 25,359 43.0% 5,513

(Equity attributable toowners of the parent) 29,989 51.9% 25,302 42.9% 4,687

End of this year End of previous year

CF Outline

12

CF by investing activities decrease by M&A CF by financing activities decrease by little borrowing money

Main factors of fluctuation Net cash provided by (used

in) operating activities ●Decrease by increase of Income tax & Consumption tax Net cash provided by (used

in) investing activities ●Decrease by M&A ■ Net cash provided by (used in) financing activities ●Decrease by little borrowing money

Consolidated CF (IFRS) (unit: Million yen)This

periodPrevious

periodDifference

Net cash provided by(used in) operatingactivities

8,578 9,497 △ 919

Net cash provided by(used in) investingactivities

△ 6,194 △ 3,468 △ 2,726

Net cash provided by(used in) financingactivities

△ 7,324 977 △ 8,301

Cash and cashequivalents at end ofperiod

10,094 14,992 △ 4,898

Financial forecast for FY2016 / 3 Years Expansion Plan

13

Financial forecast for FY2016 3 Years Expansion Plan Domestic business Overseas Business Expansion of Business Domain Future Vision

14

Domestic business： Reinforcing business base. Aggressive expansion of new brands. Overseas business： Continue aggressive development estimating 670m yen growth in profit

Opened new stores: Domestic: 34 stores, Overseas: 80 stores (direct-owned:11 stores, JV･FC:69 stores)

Premise of monthly sales of Existing Stores: First half 100.0%, Second half 101.2% 1,590 million yen calculated for impairment loss

Financial forecast for FY 2016

Consolidated PL (IFRS) (unit: Million yen)Ratio to

Prev. period

Revenue 102,660 - 95,587 - 107.4%Adjusted EBITDA 14,110 14% 12,799 13% 110.2%Operating profit 8,760 8.5% 8,733 9% 100.3%Profit before tax 8,580 8.4% 8,117 8.5% 105.7%Profit for the year 5,490 5.3% 5,242 5.5% 104.7%Profit for the year attributableto owners of the parent 5,500 5.4% 5,212 5.5% 105.5%

FY 2016 Previous period

Overseas segmentRatio to

Prev. period

Revenue 8,102 - 6,255 100% 129.5%

Operating profit ofOverseas segment 1,109 13.7% 436 7.0% 254.4%

Previous periodFY 2016

Consolidated PL (IFRS)

Ammount Ratio toRevenue

Ratio toPrev. period Ammount Ratio to

RevenueRatio to

Prev. period Ammount Ratio toRevenue

Ratio toPrev. period

Revenue 102,660 - 107.4% 111,277 - 108% 126,976 - 114%Adjusted EBITDA 14,110 13.7% 110.2% 15,120 13.6% 107% 17,628 13.9% 117%Operating profit 8,760 8.5% 100.3% 9,934 8.9% 113% 11,664 9.2% 117%Profit before tax 8,580 8.4% 105.7% 10,400 9.3% 121% 12,240 9.6% 118%Profit for the year 5,490 5.3% 104.7% 7,162 6.4% 130% 8,562 6.7% 120%Profit for the year attributable toowners of the parents 5,500 5.4% 105.5% 6,898 6.2% 125.4% 7,984 6.3% 115.7%

Overseas segment

Revenue 8,102 129.5% 11,915 147% 20,476 172%OP of overseas segment 1,109 13.7% 254.4% 1,679 14.1% 151% 3,044 14.9% 181%

Numbers of opening stores(numbers in overseas） - - -Total numbers of stores(numbers of overses) - - -

FY2018FY2017FY2016

114(80)

1,185(315)

183 (119)

1,358 (434)

260 (166)

1,608(600)

3 years Expansion Plan

15

Continuously expand business and reach 1,600 stores in the world in FY2016

(Unit: million yen)

Existing Stores

Opening stores in the metropolitan area

• Build the base of expansion in the metropolitan area by reinforcing adequate staffs.

• Strategically renovate store design and client route.

Evolving measures for products and marketing enhancement.

• Expanding sub products, period-limited value-added products, and introducing Don (rice bowl) and combination menus.

• Effective sales promotion by quantitative analysis of the TV CM effect.

Continue investing in talented persons (Improvement of QSC by Staff sufficiency) • Reinforce hiring of part time staffs. Improve retention by improving staff education. • Implementing High-school grads in addition to University grads to stabilize recruitment.

New brands

Rolling out Tempura brand and Tonkatsu brand

• Utilization of real estates in metropolitan area.

• Building a base for multiple-store expansions.

16

Reinforcing business base for even more rapid growth

Domestic business

Develop various regions as our market Adopt the culture and taste in each county/region Pursue mass-market by local customization Not mono-brand strategy but multi-brand strategy

17

Overseas: Multi-portfolio Strategy

Our goal is 4,000 stores in overseas in 2025 with multi-portfolio strategy

18

Marugame Udon is one of popular restaurants in the US Plan to open a store in Los Angels this fall

Waikiki store ranked in 10th No.1 in Japanese restaurant

category *イメージパース図

Started Cambodia business in FY2015

Continuously open stores in Asia

Source：https://www.yelpblog.com/2016/02/yelps-top-100-places-to-eat-in-the-us-for-2016-fast-track-to-a-food-coma

Overseas: Marugame Udon

Decided to open Marugame Udon in the main land of the US

Target new middle class in Asia and other developing countries

Penetrate Islamic market in South East Asia and Middle East

Malaysian noodle restaurant chain

“Boat Noodle”

19

Established subsidiaries in UK & US Searching potential locations for

directly owned restaurants

Hot fast casual restaurants in Euro

“WOK TO WALK”

Overseas: Boat Noodle / WOK TO WALK

20

Acquired 100% shares of “SONOKO” which is a life-style company providing beauty and health with oil-free and additive-free foods

For customers’

pleasure with

“food” all over

the world

Mail-order channel

The elderly & the wealthy

Food safety & security

Highly loyal customers

Procurement

Merchandising

Business development in overseas

New customers

M&A: Expansion of Business Domain

Develop “SONOKO” brand as our domestic business with comfort and safe foods

Also strengthen its brand mainly in developing counties where food safety and

security are getting required

Mass marketing

21

Future Vison

4,000 stores 290 bil yen

700 stores 80 bil yen

1,300 stores 130 bil yen

Overseas business

New domestic brands

Existing domestic brands

95.6 bil yen 500 bil yen

0 5,000 10,000 15,000 20,000 25,000 30,000

TIM HORTONS Inc. (Canada)

Chipotle Mexican Grill, Inc. (USA)

ARCOS DORADOS HD Inc. (Argentine)

Bloomin Brands Inc. (USA)

ZENSHO HOLDINGS CO., LTD. (Japan)

AUTOGRILL SPA (Italy)

Darden Restaurants Inc. (USA)

Yum Brands Inc. (USA)

Starbucks Corporation (USA)

McDonald's Corporation (USA)

To be ranked in ten years

150 bil yen

500 billion yen revenue and 6,000 restaurants in the world in 2025 Rank in top ten companies in restaurant industry

Multi-brands in the world Global company with

growth axes

World leading company from Japan in restaurant

business market

(Unit: million USD)

22

■ New management philosophy

■ New corporate logo design

Corporate logo and management philosophy renovated

23

New Tokyo Headquarter

23

Newly set up the Tokyo headquarter in order to keep on challenging world’s restaurant market with our creativity and innovation

Entrance Symbol of challenging the global market from Japan

Cafe area Space that support creativity & innovation in business

Reference materials

24

Non-consolidated year-on-year analysis of Ordinary profit

25

9.7%

+0.2%

+0.4pt +0.5pt

-0.9pt

10.6%

+1.2pt

Achieve 10.6% of Ordinary profit ratio (to Net sales) at Non-consolidated basis. Advertising cost increase but cost ratio (to sales) itself go down because of the sales increase, which increase profit ratio from the previous period.

26

Basic information of Overseas Marugame Seimen brand

※・Sales, # of Guests, Sales per Guests are the means in the period from July to December of 2015. ・Adopt an exchange rate at end of March, 2016 ・# target stores are ranning in the period from July to December of 2015.

Overseas Marugame Seimen brand　Basic information (Monthly date per store)

# target stores Sales (1,000 yen)

# of Guests (person)

Sales perGuests (yen)

USA 2 31,554 31,756 994

Russia 10 6,005 7,465 804

South Korea 12 16,033 24,226 662

Taiwan (ROC) 5 7,736 10,644 727

Cina(PRC) <JV> 29 8,479 12,302 689

Thailand <JV> 20 3,160 5,895 536

Japan 756 8,836 16,213 545