The 59th period Annual Report

Transcription

1 Kazokutei Co., LTD Fujimura-Yamato Seimei Bldg. 2F , Fushimimachi, Chuo-ku, Osaka Japan TEL The 59th period Annual Report January 1, December 31, 2009

2 Kazokutei keeps moving forward as "a venture company emerging in a traditional industry". Udon and soba noodle industry is very traditional. Kazokutei also commemorates the 63nd anniversary this year. However, it is not an old-fashioned company. We commenced management reform 7 years ago focusing on young managers. We always wish to be youthful and challenging like a venture company. Kazokutei makes everyone in the world smile. From Osaka, Kazokutei is bringing delicious noodles to Asia and the world. Kazokutei's secret recipe for soba and Tokutoku's handmade udon bring smiles to everyone. Topics of 2009 Securing profit amid adverse winds while making investments for the medium and long term future. TOPIC 1 TOPIC 3 Establishment of profit making structures. From the first quarter, the emphasis on the sales strategy was shifted from revenue increase to profit generation, in an effort to cope with prolonged downturn in the food service industry. The process of building up structures to generate profit from the sale of the existing shops at 90% level as compared to previous year was completed by March. Closures of unprofitable shops were also proactively carried out. TOPIC 2 TOPIC 4 Opening of Hanyu Seimensho in Hanyu parking area. (An example of tie-up business) When a Udon noodle shop (Hanyu Seimensho) was launched in the PASAR Hanyu business complex in Hanyu parking area, which is managed by NEXCO East Japan Retail Co., Ltd, Kazokutei has given advice on how to manage Udon noodle shop in a food court based on its know-how and experiences and helped create the menu, select food materials, and design kitchen layout, and also provided technical assistance to cooking, while supplying certain food materials. February March May June Investor Relations Annual Schedule (January 1, December 31, 2010) The First Half of 2010 (scheduled) Announcement of financial results[feb. 4] Briefing session on the financial results (Tokyo)[Feb. 5] Jasdaq net live[mar. 5] Franchise show 2010[Mar. 911] Briefing session for private investors (Osaka, Nomura Securities)[Mar. 12] Ordinary general meeting of shareholders [Mar. 30] Announcement of financial results for the first quarter of 2010 Nomura Asia Equity Forum (Singapore) Two shops were opened in Singapore, and two shops were launched in Thailand. In 2009, two shops were opened in Singapore on April 9 and September 17. Two shops were launched in Thailand on November 27 and December 9. November 18, 2009 December 28, 2009 Establishment of a joint venture to promote chain restaurant business in Shanghai, China. Kazokutei concluded a basic agreement on the establishment of a joint venture company designed to operate food service business in China with Juggernole Limited, a wholly owned subsidiary of Want Want Group, a major food company originated in Taiwan. The joint venture company has been already established. Taking advantage of both ourknow-how and experiences in operating chain restaurants as well as the business base and management resources which Want Want Group has in China, Kazokutei is developing Japanese cuisine restaurants in China with primary focus on Udon and Soba noodles. August September November The Second Half of 2010 (scheduled) Announcement of financial results for the second quarter of 2010 Nikkei IR Fair 2010 STOCK WORLD Announcement of financial results for the third quarter of 2010 TOPICS 2

3 Interview Inui-san vs. Otei-chan President & CEO PROFILE Mitsuhiro Inui Born and raisedkanagawa Ken Born April 19, 1953 March 1977 graduated from Department of Liberal Arts, College of Arts and Sciences, the University of Tokyo April 1977 entered Nissan Motor Co.,Ltd. June 1983 (as a company order of Nissan Motor) graduated from the Graduate School of Management at Northwestern University (Illinois, USA) (obtained MBA) January 1989 entered KPMG Consulting, Inc. May 1992 entered Booz Allen Hamilton (Japan) Inc. June 1998 entered as Corporate Officer of Suruga Seiki Co.,Ltd. April 2002 entered Kappa Create Co.,Ltd April 2003 dispatched to Kazokutei Co., Ltd. as General Manager of Business Operation Reform June 2003 became Director of Kazokutei Co., Ltd. May 2005 became Representative Director & President of Tokutoku Co., Ltd. (left office in March 2006) January 2006 took office as Representative Director & President of Kazokutei Co., Ltd Establishment of a management system that can generate profit from the sale of the existing shops at 90% level as compared to previous year Otei-chan : President Inui, very nice to see you again. It s been a long time. (Otei-chan looks a bit nervous.) The other day, the statement of accounts for FY2009 was announced. So today, could you let me know about it and the future plans of the company? Inui-san : Good to see you gain, Otei-chan! How have you been? Miki-san (Director and General Manager of New Business Development Division) told me how hard you were working every day as image character for Kazokutei. Well, now, let me try to explain about the settlement of accounts as easily as possible. very well, despite the impact of new strain of influenza in May and worsened market conditions in September and onward. We were able to generate profits constantly throughout the year. We have also proactively closed down unprofitable shops. Otei-chan : I see. You started with firm policies from the very beginning of the year, and fully implemented them throughout the year. That is why the company successfully generated profits. I saw people in the shops working very hard! Two shops were launched in Thailand Two shops were launched in Singapore TOP MESSAGE Otei-chan and President Inui Talk on financial results Expand operations based on the Franchise Management Platform! In the Udon and Soba (wheat and buckwheat) noodle shop markets, where concentration has been progressing, Kazokutei gained its momentum to expand franchise chain networks through the acquisition of Toku Toku. As Kazokutei also has as many as 10 types of business operations including directly managed shops plus 7 types of franchise chain operations, there is virtually no restriction in site selection, etc. for opening new shops. Kazokutei has been entering overseas markets mostly in the form of franchise. In Singapore, two shops were opened in April and September. As for Thailand, two shops were launched in November and December. In China, Kazokutei concluded a basic agreement on the establishment of a joint venture to operate chain restaurant business in China with Juggernole Limited, a wholly owned subsidiary of Want Want Group, a major food company originated in Taiwan The joint venture company was already established in December On February 4, 2010, the financial statements for FY2009 (the 59th term) were announced. Revenues were 8,955 million Yen, with 260 million Yen of operating profits and 276 million Yen of ordinary profits. Interest-bearing liabilities were decreased by 263 million Yen to 1,814 million Yen, which resulted in a substantial improvement in the financial strength of the company. In terms of the number of shops, there are 117 directly managed shops and 107 franchise chain restaurants. The number of shops in total turned out to be 224, which increased by 17 from the previous year. Otei-chan : Thank you for your clear-cut explanations. Now I can see that the company has as many as 224 shops and made good profits. Inui-san : During the previous term, severe situations for the food service industry were anticipated from the beginning of the year due to the rapidly deteriorated economic environments. Therefore, we allocated 80% of the company s energy for defensive business management and Otei-chan : And you have stepped up your efforts on the development of new businesses to generate future profits, haven t you? Inui-san : Exactly! In the business development activities, we have started off by opening overseas shops. Two shops were launched in Singapore and two more in Thailand. We have also established a joint venture company in China, too. Otei-chan : Actually, one of our customers mentioned about it to me. He told me that Kazokutei is doing so well that the future is very promising. I have never been to overseas countries. Please take me to a foreign country some day! Opening of Hanyu Seimensho in Hanyu parking area (An example of tie-up business) the remaining 20% for developing business for future profits. Inui-san : Moreover, we have gained a good foothold for expressway Otei-chan : What do you mean by defensive business management? related business, as part of new domestic business alliance. There are You can view a short message from President Inui (moving pictures) on your mobile phone. Image character of Kazokutei PROFILE Otei-chan Place of Birth Osaka Date of Birth A secret As of 2009 actively promoting its PR activities every day as Image Character of Kazokutei. Inui-san : Well, let me put it this way. In January 2009, we started to build up a management system to generate profit from the sale of the existing shops at 90% level compared to previous year and almost completed it in March. We have thoroughly implemted the management system in all the shops. This management system to ensure profit worked restaurants in parking areas of expressways, you know. We have established a partnership with NEXCO East Japan Group, which manages such restaurants. The first restaurant under the partnership agreement was Hanyu Seimensho in Hanyu parking area of Tohoku Expressway. Kazokutei provides technical support and food materials to the restaurant. 3 4

4 Interview Inui-san vs. Otei-chan Otei-chan : Expressway tolls have been reduced, so shops in service areas are now full of people. How wonderful it will be for us to be able to enjoy financial corporations to finance individual franchisees. Last year that resulted in a series of suspensions or cancellations of new entry into our franchise chain. Mid-term business plan (Basic strategies) Otei-chan : Wow, so many Kazokutei shops are to be opened in so many countries! (What languages on earth should I be learning???) delicious Udon and Soba noodles in such shops! Inui-san : We are planning to develop this kind of business in many more service areas by building up good relations with the partner. Otei-chan : I do hope that a lot of shops will be opened. And now, let me know about your plan for Kazokutei next year (FY 2010). 1. Expansion of tie-up businesses 2. Increase of domestic corporate franchisees 3. Overseas businesses 4. M&A That s why, since this business year we are planning to reinforce the development of new large-sized corporate franchisees with strong financial status in addition to individual franchisees and small-to-medium-sized corporate franchisees to increase the number of the franchise shops. We have already prepared a new packaged program for large-scale corporate franchisees. For example, as we internally call it the regional scheme, we will guarantee, in our franchise agreement, the expansion of franchisees business by establishing multiple shops per regional unit area. Also, we will implement shop manager rental system as part of our shop management support for franchisees. Otei-chan : Shop manager rental system sounds very helpful for franchisees (I wonder if somebody may rent me out for one of those shops?). Inui-san : The third key business initiative is overseas business. In 2010, Business operations based on Franchise Management Platform in Japan and overseas, by growing out of the traditional type of business operations relying on Udon and soba noodle shops. Soba and Udon noodle business is just one of our business areas to which we can apply our platform. Kazokutei will expand itself to other business areas through M&A and development of new markets on its own. The primary differentiation factor is the high quality in our Franchise Management Platform Therefore, Uchiyama-san (Director and General Manager of International Business Division) and Irie-san (Director and General Manager of Products Inui-san : The fourth key area of business is M&A. I will explain it to you as plainly as possible by referring to the mid-term business plan that I am going to talk about now. Otei-chan : You have released, the new mid-term business plans together with the financial results. Is that right? Inui-san : Yes, that s right. The previous business plans didn t include projection figures of M&A and overseas businesses, but the new mid-term business plans (from 2010 to 2014) do reflect those figures of overseas business except for M&A. The basic strategy is to promote operations based on our Franchise Management Platform in Japan and overseas, by outgrowing the traditional type of Udon and Soba noodle business. Otei-chan : Franchise Management Platform? Could you explain a bit TOP MESSAGE we will open shops in China following Singapore and Thailand. China is a Division) have been frequently having meetings with those concerned in more fully about it? Inui-san : Most certainly... I d like Otei-chan to understand our plans for this promising market and we are scheduled to open about 200 to 300 shops China. We are also making preparations to open shops in other countries year very well. I think the food service industry will continue to face difficult in China in several years. such as India, Indonesia, Vietnam, and Russia. business conditions for this year. So, if we do exactly what we did during the previous business year, our sales are likely to decrease to somewhere around 95% compared to the previous year. With this level of sales, we will secure the same level of ordinary profits with the previous year, or approximately 280 million Yen by thoroughly implementing our cost management system which was completed last year. Naturally, we will aim at even higher level of profits Mid-Term Business Plan(FC Management Platform) Former Strategies Directly Managed Businesses FC Businesses Soba and Udon noodles Ramen? New Strategies Sushi? Applications(Business Formats) Japanese Cuisine? Teppan-Yaki Grill? through our various sales promotion initiatives to boost revenue as much as possible. In our efforts to further improve profits, we will also implement the following four policies: The first one is expansion of tie-up business, as I just explained to you. We are planning to promote partnership with NEXCO East Japan Group who runs Pasar*, or parking areas on Expressways, and other companies in the food service industry. Secondly, we will increase the number of domestic corporate franchisees. Historically, franchisees of Kazokutei have been mainly individual proprietors and small-to-medium-sized corporations. However, due to economic recession, etc., it has become difficult for public * PASAR is a word made from abbreviations consisting of PA for parking area, SA for service area, and R for relaxation. PASAR is the development project promoted by NEXCO East Japan Retail Co., Ltd to make PA and SA more comfortable facilities for users. Soba and Udon noodles Defense FC support FC Businesses Soba and Udon noodles Active Growth Enlarging Evolution Directly Managed Businesses Defense Development of FC Human Resources and knowhow Pilot Shops Domestic Overseas Development Development Franchisee membership Shop properties Business Forrmats Menus Soba and Udon noodles Financial Support Financial Support Consultation on funding for launching business Support for operating fund Support for utilization of subsidies etc. Ramen? Training Purchasing and Logistics FC Management Platform (Base) Training Cooking technique Customer service Shop management Sushi? Purchasing and Logistics Cost saving by centralized purchasing and logistics Japanese Cuisine? Management of Business Operations Management of Business Operations Management of shop operation by SV Checking of taste and customer service by itinerant Technical Instructors Teppan-Yaki Grill? Applications(Business Formats) Attraction of Customers Sales Attraction of Customers Sales Proposals for sales expansion and promotion Brand Management Brand Management Planning and implementation of comprehensive brand management ( Including registration of brand name and prevention of Knowhow leakage) Expansion of Businesses 5 6

5 Interview Inui-san vs. Otei-chan Inui-san : Platform means a base, as it is often used in the IT industry. appropriately and continuously manage operations based on the Franchise differentiated business formats to expand our businesses. However, the discussed with Kawabata-san (Director and General Manager of In other words, Kazokutei has its unique high-quality franchise Management Platform (the whole value chain ranging from Development business formats of food service industry depend somewhat on trends. Administrative Division) and executed very dynamic operational reforms and management knowhow and, based on that, we will further add new types to Brand Management). There seem to be some franchisers which are Therefore, generally speaking, it s quite difficult to keep the business improvements. As a result, Kazokutei is now able to complete the settlement of business formats other than Udon and Soba noodle shops through faced with various lawsuits with their franchisees. In contrast, Kazokutei formats differentiated for such a long time. I would like Kazokutei to of monthly results on the 1st day of the following month. This is thanks to M&A and through our own markets development. Recently, many M&A opportunities have been referred to us, and I think that we now have a good prospect of acquiring business formats of the companies which are poorly managed. Through M&A, Kazokutei can drastically improve their financial strength. More new business formats will has never had any lawsuit with any of our franchisees since its establishment. This fact clearly demonstrates that the Franchise Management Platform of Kazokutei is firmly established. Otei-chan : Good franchisees relations have been built up, too. How marvelous! Then, may I understand that from now on, Kazokutei will differentiate itself by taking advantage of its Franchise Management Platform. I believe that Kazokutei can keep its distinctive advantages over other companies for as many as 20 years, by firmly establishing Franchise Management Platform which covers end-to-end value chain and provides the basis for thorough operations and management. the efforts of all the shops to report inventory, employee attendance status, and expenses for power and utilities exactly by the end of previous month. Then, Kawabata-san s team calculates the results within that day. This teamwork allows us to hold a monthly budget and result meeting (an important meeting to review and judge the TOP MESSAGE be added as applications to our Franchise Management Platform. Even the launch new business areas other than Udon and Soba noodle shops? Otei-chan : Establishment of the Franchise Management Platform is a sales situations) on the 3rd day of each month to take necessary actions companies presently doing well can be acquired at favorable terms in Inui-san : Definitely. One of our strength lies in its flexibility. Kazokutei very, very important initiative to the future of Kazokutei, isn t It? according to the situation. As you can see, Kazokutei has a good some cases. already runs as many as 10 types of business operations centering on Inui-san : By all means! According to the new business plans announced system that enables us to quickly know what is happening in the actual Otei-chan : New business operations other than Udon and Soba noodle Udon and Soba noodle shops. From now on, we are planning to operate lately, we will aggressively develop new type of business formats other business fields, and that s why we can make quick business decisions. I acquired by M&A will be put on to the Franchise Management Platform as other shops such as Ramen (Chinese noodles), Sushi, and Teppanyaki Grill. than Udon and Soba noodle shops not only in Japan but also overseas, really appreciate everyone s efforts for that. new applications, right? Now researches and experiments for that purpose are advancing. taking advantage of our Franchise Management Platform. In five years Otei-chan : It is fantastic to have very strong teamwork among so many Inui-san : Exactly! Kazokutei has its Franchise Management Platform and Otei-chan : I love Sushi and Teppanyaki Grill. (and, of course, I love cakes, time, or by 2014, we will be having 17 billion Yen of revenues and 3 billion shops! Now, we are quite ready to have more and more shops..i am knowhow, which has long been built up together with franchisees for Manjyu-a Japanese style sweet, and.) Yen of ordinary profits. The number of restaurants and shops in total will looking forward to future development of Kazokutei. Then it is about time years., There are very few franchisers other than Kazokutei, who can Inui-san : I would like to keep adding applications, or various be 770 including 470 in Japan and 300 overseas. when I started a full-fledged preparations for overseas campaigns, right? Otei-chan : We are having many, many family members of Kazokutei all Inui-san : You are quite right. As we are having more and more Kazokutei Mid-Term Business Plan Revenue (a billion yen) Ordinary Income about10 times Period ending in December 2014 Revenue Ordinary Income 17 billion yen 3billion yen Overseas businesses FC Business 17.0 (large-sized corporation, tie-up) FC Business (individual, small-to-medium-sized corporation) Directly-Managed Businesses Ordinary Income (a billion yen) Revenue <Ordinary Income> Overseas businesses FC Business (large-sized corporation, tie-up) FC Business (individual, small-to-medium-sized corporation) Directly-Managed Businesses over the world. Inui-san : Yes, we sure are. We are planning to keep increasing the number of shops. And, I d like to stress that the management system to support that is also really scrupulous, though I don t mean to boast about. One of the key indexes to show organizational capability as a food service company, is On which date of each month can you get the previous month s financial results? In really strong organizations, the information such as monthly results is very quickly reported from the business fields. That enables the management immediately to analyze, and judge the latest field information, and to make decisions or to take actions at the earliest timing. This sense of speed is very crucial to our business. Shortly after I started working in Kazokutei, the results of the previous month became available sometime between the 18th and 20th of the following month. Therefore, in the shop manager meetings regularly held around all over the world, I d like you, Otei-chan, to play an important role in its global campaigns. Keep up good work, won t you, Otei-chan! Otei-chan : Certainly. Mr. Inui. I will do my best! The end of interview(otei-chan and President Inui kept on talking lively about their overseas campaigns.) 0 Period ended in December 2008 (Actual) December 2009 (Actual) December 2010 (Actual) December 2011 December 2012 December 2013 Period ended in December the 10th of each month, we did not have the necessary figures for our concrete discussions and the meeting ended up with just moral talks. So, I 7 8

6 Start of overseas expansion Kazokutei s accelerating overseas operations - From Asia to the rest of the world. Last year, we opened two shops in Singapore and launched two shops in Bangkok, Thailand. This year, we will keep on opening new shops expeditiously through our new joint venture company established in China with Juggernole Limited, a wholly owned subsidiary of Want Want Group, a major food company originated in Taiwan. We will also aim at concluding new franchises and joint venture agreements in other countries. We will continue to aggressively develop overseas operations so as to build up structures in which we can generate sustainable profits (excluding license fees) in our overseas business by The record of our overseas openings During 2009, 4 franchise shops in total were opened in 2 countries. INFORMATION Our overseas shop opening projection, starting this year Already opened On April 9, 2009 On September 17, 2009 India Russia To be opened Target: The number of shops to be opened in the next 5 years Toku Toku No. 1 shop was opened in Tampines 1, Singapore. Toku Toku No. 2 shop was opened in Liang Court, Singapore. China (Target: 200 to 300 shops) Vietnam Thailand (Target: 30 shops) Kazokutei On November 27, 2009 On December 9, 2009 Singapore (Target: 20 shops) Indonesia Basic policies for overseas business Target customers : presently growing middle income class in each local market. Business formats/menu : Initially, we are planning to start mainly with Udon and Soba noodle shops, but will not confine ourselves to this area of business. As for the taste of dishes, we will basically use our original recipes, while also adjusting to local tastes. Price : Reasonable prices for our target customers. Procurement : Because imported materials are generally expensive, we will mainly purchase materials locally, depending on the situation of each country. We will build our own procurement and logistic system. The utilization of centralized kitchens to effectively manage our brand. Kazokutei No. 1 shop was Kazokutei No. 2 shop was opened in Central Pinklao, opened in Thonglor, Bangkok(Thailand). Bangkok(Thailand). In China, a new joint venture was established with Want Want Group in December

7 Information Instructions Support in starting your business Concluding the contract Kazokutei provides Japanese cuisine. We are searching for overseas business partners that can share our philosophy. Support available before you sign an FC contract We will give you an overview as well as the details of our system for running a Kazokutei franchise chain business and ask you, as a potential member, about your requirements. After carefully looking into what advantages you have and what problems need to be resolved in order to develop your business, we will suggest a business model to you, while you are still a candidate member. After you have thoroughly examined, understood and agreed to our proposed business plan, we will create an FC member contract for you. Our research We study the local market conditions, including your potential competitors and various costs. Plan creation Based on our local marketing study, we will create a business plan, determine the initial investment amount required, establish earnings and expense models, and provide you with the technical details you need to get started. Initial membership fee Affiliating fee Marketing investment fee Shop design fee Training fee Other costs A type : From JPY35,000,000 to JPY50,000,000 (To be determined considering a market size and other factors.) You will have a local headquarters and be given exclusive membership rights for a specific country or region. B type : JPY10,000,000 This is an ordinary membership with no exclusive rights. * The amounts below are given in Japanese yen. JPY1,000,000 - To study your competitor and cover the various costs that will be incurred in creating your business plan,earning and expenditure model plan. (The actual fees for this investigation include travel and accommodation costs, charged separately.) * The marketing investment fee pays for evaluating your eligibility for membership, and is non refundable, even if you are not invited to become a member, or choose not to. JPY800,000 (travel and accommodation costs for local meetings are charged separately) JPY1,000,000 - Covers two weeks at Kazokutei traning facilities and restaurants in Osaka,Japan and our staff at your side for four weeks before and after you open your own restaurant. - Use of the English version of both Food preparation manual and customer service manual. - More traning days can be provided at an additional charge. - All travel cost to Japan and supervisors sent from Kazokutei to your side will be charged separately. - The cost of obtaining the restaurant premises, interior and exterior improvements, cooking facilities, and the cost of other needed equipment will be separate. INFORMATION Support for starting, maintaining, and expanding your business Support for starting your business Opening a restaurant We give you lots of support so you can start up your business smoothly. Local preparation for opening a restaurant, aid and instruction on how to operate after opening. Training You will receive training at Kazokutei headquarters in Osaka, Japan and at your side. Food preparation - You will receive support for starting a central kitchen, if necessary. - We help you identify the tastes, menus, and cooking methods that are suitable for your local customers. Start-up know-how Procurement Establishing foodstuff procurement lines and distribution routes. Operating a restaurant - Developing restaurant managers, cooks, and support staff. - Help establishing a PC based operating management system. - Our supervisors help you develop a management system. Running costs Royalty 5% of gross monthly sales Support to stabilize the business Support for expansion and recovery We fully support you to stabilize your business by having our supervisors make periodic visits, and by making continuous checks on each operation. Support for increasing the number of restaurants, expanding the range of restaurant locations, and improving business at slow restaurants. Know-how to help you expand your business or recover from poor business Training We offer ongoing training so you can keep improving your business skills. Food preparation - Installation of a central kitchen. - Maintaining current menus and developing new menus. Procurement How to maintain your current suppliers and develop new sources. Restaurant management - Instructions about how to start up a new restaurant. - Analysis of business at a slow location, with help from our supervisors to develop a recovery plan. - Re-education of restaurant staff. Kazokutei has the English website so that people overseas can fully understand our FC Business

8 Introduction of our restaurants and shops Directly-managed businesses We always keep on improving our taste and services as a leader in our group. Offering new-style Udon dishes targeting at young generation and ladies. 63 years of business with superior hospitality and service with a bright smile. We offer new-style Udon dishes. INFORMATION Modern restaurant where creative and seasonal dishes are served in a soothing atmosphere. Using stone mill in our restaurant, we serve fresh soba noodles with rich aroma for you. Soba restaurant with fashionably modern design. We improve our taste and services as a leader in our group. Izakaya (Japanese style bar restaurant) where you can enjoy authentic soba dishes. 63 years since establishment, we at Kazokutei have been offering superior hospitality and service with a bright smile and our speciality soba that can be tasted even to "soba-yu" (the water where soba was boiled in.) We prepare the soba by "grinding, kneading and boling" with great delicacy and care, In October 2009, my shop serve it to our customers Otei-chan shop at Takami was also established. with our whole heart. You can taste modern creative soba dishes and sake. Traditional orthodox upper grade soba restaurant that inherits Kazokutei's original taste. Soba dining spot where you can enjoy tasty sake. Upper-grade Soba restaurant where you can enjoy seasonal tastes. In our restaurant, we show performance of making real hand made soba noodles and serve them

9 家族亭 P15-16 Introduction of our restaurants and shops FC Business Middle-to-large sized restaurant on road sides mainly serving Udon. (Mainly corporate franchisees) Self-service noodle shops on the road-side. Middle-to-large sized self-service noodle shops on road sides. (Private and corporate franchisees) With a wide choice of selections, customers can enjoy varieties of traditional udon. We would like our customers to get toku (benefit) It has a variety of dinner menus and its warm homemade dishes are popular. Shops in office buildings located in commercial districts or in front of stations. (individual and corporate franchise chain shops) by enjoying delicious dishes while we would also like to Shops located in office building blocks. Small-sized shops along the arcaded street and inside buildings. (Mainly private franchises) INFORMATION Suburban shops that are popular for their rich variety. Self-service noodle shops in food courts. Small-sized self-service noodle shops in food courts. (Private and corporate franchisees) Casual shops with substantial dishes at reasonable prices. We serve authentic Soba with reasonable prices. (Private and corporate franchisees) share the joy of our customers. "Toku Toku" with this concept has developed its Shops with high value added kyoto-style dishes and udon, jointly developed with Kinrei Corporation. directly-managed shops and FC shops across Japan as an authentic Udon-dish restaurant where customers can enjoy the original daintiness of Udon. 15 Hanyu Seimensho or Noodle Plant was established in PASAR Hanyu at Hanyu Service Area on Tohoku Expressway. Hanyu Seimensho is our tie-up business with NEXCO East Japan Group. Middle-to-large sized road side shops designed like a traditional merchant house in Kyoto. (Mainly corporate franchisees) Medium-sized shops for shopping centers and inside-building locations. (Mainly corporate franchisees) 16

10 Shop list (96shops as of April 30, 2010) The newest information of shops is shown at our website. Osaka Kyoto Hokkaido Nokiba Tennoji shop Nokiba Minoo shop Nokiba Kyobashi shop Kazokuan Awaji shop Otei-chan Takami shop Kazokuan Tenjinbashi5 shop Umeda-chikagai shop Umeda Hankyu sanbangai shop Umeda Hankyu grand bldg. shop Umeda Navio shop Umeda Yodobashi shop Umeda Chayamachi shop Noda Hanshin shop Esaka shop Senri-chuo shop Hankyu Yamada shop Osaka Business Park shop Tsurumi shop Hirakata shop Moriguchi shop Nanba Walk shop Nanba Minatomachi shop Suminoe shop Sakai Higashi shop Ibaraki shop Hankyu Ibaraki shop Takatsuki shop Hankyu Takatsuki shop Hankyu Okamachi shop Ikeda shop Izumisano shop Banpaku Oyuba shop New shop Kazokuan Noda shop Tennoji Mio 11F Minoo Market Park Visola EAST2 Kyobashi Coms Garden B2F In a shopping district west of Hankyu Awaji station concourse Inside the Takami Floral Town in Konohana-ku East of the Tenjinbashisuji-shopping street crossroads Whity Umeda North mall1 Hankyu Sanbangai Minami-kan B2F Hankyu Grand Bldg. 28F HEP Navio 6F Yodobashi Umeda Bldg. 8F Umedachayamachi Applause Tower B1F Wiste 4F, in front of Hanshin Noda station Esaka Tokyu Bldg. B1F In front of Osaka monorail Senri Chuo station Hankyu Yamada station Dew Hankyu Yamada 2F OBP Cristal Tower B1F Aeon mall Tsurumi Leafa 4F Foleo Hirakata 1F Keihan Department store 7F Nanba walk Ichibangai Minami street OCAT mall 5F South of Subway Suminoe-koen station entrance Sakai Takashimaya S.C.UPru B1F 200m north of Fudo Suita-Takatsuki line Ibaraki Police station Hankyu Ibaraki-shi station Rosavia 2F Takatsuki Matsuzakaya 5F Under the elevated railroad of Hankyu Takatsuki-shi station (Osaka side) Under the elevated railroad of Hankyu Okamachi station (Toyonaka side) West side of Hankyu Ikeda station concours Shoppers' mall Izumisano 1F Senri Banpaku-koen Yoshino , Fukushima-ku, Osaka-shi Kyoto Nishioji shop Keihanna shop Nara Naragakuen-mae shop Hyogo Nokiba Hankyu Nishinomiya shop Udonno Mint Kobe shop Hanshin Amagasaki shop Hankyu Sonoda shop Kawanishi Noseguchi shop Sannomiya shop Sanchika shop Shin-Kobe shop Kobe Asahi Bldg. shop Life Kobe-ekimae shop Kobe station chikagai shop Maitamon shop Nishijin Chuo shop Aeon Kobe Kita shop Jusco Rakunan store 2F Jusco Rakunan store 2F Kintetsu Gakuen-mae station Paradi 4F Under the elevated railroad of Hanshin Nishinomiya station (South side) Mint Kobe 7F In the Amagasaki chuo shopping district, north of Hanshin Amagasaki station Hankyu Sonoda station Sonoda Hankyu Plaza 2F East of Hankyu Kawanishi Noseguchi station concourse Under the elevated railway of Hankyu Sannomiya station (North side) North of Sanchika subway Kaigan line concourse Shin-Kobe Oriental Park Avenue 3F Kobe Asashi Bldg. 2F Life Kobe ekimae store 1F JR Kobe station Duo Kobe Hamanote Blumer Maitamon 2F Plenty Senmonten Nibankan 1F, Subway Nishijin Chuo station Aeon mall Kobe Kita 1F Chiba Udonno Nagareyama Otakanomori shop Sin-Urayasu shop Tsudanuma shop Minami Kashiwa shop Inage shop Saitama Kyosyun Urawa shop Ageo shop Shiki shop Soka shop Kyomen Gion Aeon Lake Town Koshigaya shop Kanagawa Kashun-an Yokohama Bay quarter shop Yokohama Sanpoan Udonno Lalaport Yokohama shop Kohoku Center Kita shop Kanazawa Hakkei shop Kawasaki shop Kazokuan Yokohama Tsunashima shop New shop Mizonokuchi Sanpoan Shizuoka Hamamatsu May-one shop Aichi Jusco Moriyama shop Nagareyama Otakanomori SEC3F Atre Shin-Urayasu 2F Ito Yokado Tsudanuma store 7F Fields Minami Kashiwa mall 4F In Frespo Inage, north of Chiba sports ground Isetan Urawa store 7F Haricots Verts Maruhiro 6F Marui Family Shiki 8F Marui Soka store 8F Aeon Lake Town Kaze Tower3F Yokohama Bay Quarter 5F Sky Bldg. 10F Lalaport Yokohama 3F North Port mall 5F Daiei Kanazawa Hakkei store 3F Kawasaki Chikagai Azelea Minami 4bangai With in short walking distance from the west gate of Tokyu-toyoko line, Tsunashima station Nocty Plaza1 9F Hamamatsu Terminal Bldg. May-one 7F Jusco Moriyama store 1F Sapporo Stellar Place shop JR Tower Sapporo Stellar Place 6F Sapporo shop Marui Imaihonten Shinkan 10F Kashun-an Nissay Sapporo Building Nissay Sapporo Building B1F New shop shop Tochigi Kazokuan Ustunomiya Ikegamicho shop Nakasato Tenpo 1F, Ikegami-cho 2-7, Ustunomiya-shi Ibaraki Udonno Loc City Moriya shop Loc City Moriya SC 1F Tokyo Kashun-an Ebisu shop Atre Ebisu 6F Kashun-an Musashi Murayama shop Aeon mall Musashi Murayama Myu 1F Genmyo-waraku Oimachi shop Ogikubo Sanpoan Atre Oimachi 6F Udonno Meguro shop Ogikubo Lumine 5F Kyosai Shiodome shop Atre Meguro 5F Kyosai Meguro shop Shiodome City Center B1F Kyosai Kinshicho shop Atre Meguro 2F Ikebukuro shop Marui Kinshicho store7f Shibuya shop Tobu Spice 12F Hibiya shop Shibuya Tokyu Plaza B2F Korakuen shop Hibiya Chanter B2F Kamata shop Metro M Korakuen 5F Omori shop Kamata Tokyu Plaza 7F Tachikawa shop Atre Omori 5F Hachioji shop Granduo 6F Kashun-an Musashikoganei shop Hachioji Now 9F Ito Yokado Musashikoganei store 1F Thailand New shop Central Pinklao shop (Bang kok) New shop Grass Thonglor shop (Bang kok) China New shop Shi men yi lu shop (Shanghai) New shop Yu yuan shop (Shanghai) SHOP LIST 17 * Please refer to Start of overseas expansion on Page 9 & 10 for further. details. 18

11 Shop list (130shops as of April 30, 2010) The newest information of shops is shown at our website. Osaka Kyoto Nara Aomori Izumisano Ichiba Nishi shop Ichiba Nishi 3-6-8, Izumisano-shi Sakai Kurotuchi shop Kurotuchi-cho , Sakai-shi Oonoshiba shop Oonoshiba-cho 136-1, Naka-ku, Sakai-shi Settsu Torigai shop Torikaiue , Settsu-shi Higashi Osaka Hishiya Amenity Santorini 2F, Hishiya Higashi shop , Higashi Osaka-shi Tanimachi shop Uchihon-machi 1-4-3, Chuo-ku, Osaka-shi Minoo shop Nobre Villa 1F, Minoo 6-4-1, Minoo-shi Abiko Karita shop Kitano Mansion 1F, Karita , Sumiyoshi-ku,Osaka-shi Korien shop Kansouzuka 3-6, Neyagawa-shi Kazokuan Juso shop Juso-honmachi , Yodogawa-ku, Osaka-shi Minamimori-machi shop Kawachi Nagano shop Toku Toku Seimen Kishidado shop Zenya Makino shop New shop Kadoma shop New shop Suminodo shop New shop Shiki shop New shop Senboku shop New shop Komyouike shop Hyogo Tatsuno shop Gakuen Minami shop Mukonosho shop Itami shop Hyogo Yamazaki shop Harima-cho shop Shin Osada shop New shop Iwaoka shop New shop Hanshin Fukae shop New shop Himeji Shikama shop Shin Nihon Tenma Bldg., Higashi Tenma , Kita-ku, Osaka-shi Nishinoyama-cho 5-20 Kawachi Nagano-shi Kotobuki-cho Higashi osaka-shi Makinohoncho Maikata-shi Honmachi 43-43, kadoma-shi hamamachi 9-15, Daitou-shi Shiki-cho 3-25, Yao-shi Obadera 813-2, Minami-ku, Sakai-shi Combox Komyouike 1F, Murodo-cho , Izumi-shi Yokka 52-6, Tatsuno-cho, Tatsuno-shi Autobacs Gakuen Minami store Parking Lot, Kozukadai , Tarumi-ku, Kobe Mukonosho , Amagasaki-shi Funabara , Itami-shi Shounou343-3, Yamazaki-cho, Shiso-shi Kitahonjo Harima-cho Kako-gun Matsuno-dori Osada-ku Kobe-shi Iwaoka-cho Furusato , Nishi-ku, Kobe-shi Fukaekitamachi , Higashinada-ku, Kobe-shi Imazaike 1063, Shikama-ku, Himeji-shi Fushimi-takeda shop Kyoto Rakusei shop Fushimi-shimotoba shop Maizuru Nishi shop Fujinomori shop Kyoto-yawata shop Kisshoin shop New shop Toku Toku Rokujizo shop Shiga Kusatsu shop Omi-hachiman shop Moriyama shop Mizuguchi shop Ritto shop Shimane Shinhamada shop Hiroshima Hiroshima Gion shop Ehime Imabari shop Imabari Bypass shop Matsuyama Kume shop Toyo shop Onishi shop Niihamagawa Higashi shop Takedanakagawara-cho 1-4, Fushimi-ku, Kyoto-shi Ooenakayamacho 2-155, Saikyo-ku, Kyoto-shi Nekoya-cho 43, Fushimi-ku, Kyoto-shi Koaza Ihara 140-1, Aza Kamiyasuhisa, Maizuru-shi Sujikaibashi 2-423, Fukakusa, Fushimi-ku, Kyoto-shi Yawata Suihaku28, Yawata-shi Kisshoin-miyanonishi-cho 4-1, Minami-ku, Kyoto- shi Itoyokado Rokujizo store B1F, Rokujizo Naramachi 67-1, Uji-shi Noji-cho , Kusatsu-shi Horikami-cho 208-5, Omi-hachiman-shi Imaichi-cho 1-1, Moriyama-shi Higashi Nazaka 288-1, Mizuguchi-cho, Koga-shi Ogaki , Ritto-shi Power City Hamada nai, Shufu-cho i-61-1, Hamada-shi Nishihara , Asa Minami-ku, Hiroshima-shi Ebisu-cho 2-4-1, Imabari-sh Haccho Higashi , Imabari-shi Kume Kubota-machi 844-1, Matsuyama-shi Mitsuya Minami 6-19, Saijo-shi Miyawakiko 16-1, Onishi-cho, Imabari-shi Go 2chome, Ko 367-3, Niihamagawa-shi Kashihara shop Gosho shop Sanjo Soegawa shop Nishiyamato shop Tenri Bessho shop Tawaramoto shop Foleo Town Tsutsui shop Toku Toku Life Gakuen-mae shop Kashiharatokiwa shop New shop Izumiya koryo-cho shop Kochi Kagamigawa Ohashi Minami shop Nangokuai shop Suzaki Oma shop Hidaka shop Haruno shop Seto shop Nakamura Higashi-machi shop Kochi-kita shop Takasu shop Kochi Asahi shop Aki shop Tokushima Komatsushima shop Kokufu shop Anan shop Hokke Otani shop Hokkeji-cho82, Kashiwara-shi Oaza Higashi Matsumoto 125, Gosho-shi Sanjo Soegawa-cho 5-28, Nara-shi Nakayamadai , Kawai-cho, Kitakatsuragi-gun Bessho-cho 12-2, Tenri-shi Touko 64-4, Tawaramoto-cho, Shiki-gun Foleo Town Tsutsui nai, Tsutsui-cho 531-1, Yamato-koriyama-shi Life Gakuen-mae store 1F, Nakatomigaoka3-3, Nara-shi Tokiwa-cho 367, Kashihara-shi Abe 214-3,koryo-cho,kitakatsuragi-gun Kitashinden-cho 18-28, Kochi-shi Osone Otsu 872-3, Nangoku-shi Oma Higashi-machi 107, Suzaki-shi Iwameji 727-2, Hidaka-mura, Takaoka-gun Hirookashita , Haruno-cho, Agawa-gun Seto , Kochi-shi Higashi-machi 3-5-6, Nakamura-shi Higashi Taisen-ji 120-1, Kochi-shi Takasu997-1, Kochi-shi Higashikawahara 226, Motomiya-cho, Kochi-shi Tsukumo-cho , Aki-shi Aza Akaishi Minami , Tano-cho, Komatsushima-shi Sakurama Aza Todoro 31-1, Kokufu-cho, Tokushima-shi Motomura 5-1, Nishijimi-cho, Anan-shi Shin-tsutsumi 9-1, Otani-cho, Tokushima-shi Fukui Tsuruga-honmachi shop Wakasa Takahama shop Aichi Tokai shop Okazaki Midorigaoka shop Minami Anjo shop Okazaki Mutsumi shop Nishio shop Okazaki Honjuku shop Okazaki Iga shop Shin Gamagori shop Nagoya Chugo shop New shop handa shop Mie Yokkaichi-shiikuwa shop Iga Ueno shop New shop Nabari shop Honmachi , Tsuruga-shi Aza Kyogahana, Miyazaki35, Takahama-cho, Oi-gun Kenmaku 9-1, Arao-machi, Tokai-shi Midorigaoka 3-8-6, Okazaki-shi Kyone 25-2, Jojo-cho, Anjo-shi Aza Ikeda Ko 38, Doi-machi, Okazaki-shi Nagayoshi-machi 1-35, Nishio-shi Aza Shiro-yashiki 21-1, Honjuku-cho, Okazaki-shi Iga-cho , Okazaki-shi Midori-machi , Gamagori-shi Chugo 5-54, Nakagawa-ku, Nagoya-shi Yanabenakamachi , Handa-shi Takada 796-1, Shiikuwa-cho, Yokkaichi-shi Hirano Nishi-machi 79, Iga-shi Sekoguchi 213-1, Nabari-shi Tokyo Nerima Heiwadai shop Itabashi Nishidai shop Jujo shop Kitakoiwa shop Hinotoyota shop Okachimachi shop Toku Toku Hachioji shop Koenji Minami shop Kanagawa Toku Toku Kohoku Center Kita shop (SELF) Tsunashima shop Tsurugamine shop New shop Kazokuan Totsuka shop Nagano Komoro shop Kikyogahara shop Habasaka shop Iida-Kiribayashi shop Matsumoto Namiyanagi shop Minami-wada shop Toyoshina shop Shizuoka Shimoda shop Koike-cho shop Hamamatsu-hongo shop Hamakita shop Urushibara Green Mansion, Heiwadai 4-1-1, Nerima-ku Ishida Mansion, Nishidai , Itabashi-ku Chiba Bldg, Kamijujo , Kitaku Kitakoiwa , Edogawa-ku Asahigaoka , Hino-shi Sky Nobre Okachimachi, Taito , Taito-ku Kitano-cho 588-1, Hachioji-shi Koenji Minami 4-7-3, Suginami-ku North Port mall 3F, Nakagawachyuo , Tuzyki-ku, Yokohama-shi Tsunashima Higashi 1-1-6, Kohoku-ku, Yokohama-shi Tsurugamine 2-2-1, Asahi-ku, Yokohama-shi Totsuka-cho 16-1, Totsuka-ku, Yokohama-shi Ko 16-13, Komoro-shi Takaide , Hirooka, Shiojiri-shi Habasaka-cho , Iida-shi Kiribayashi , Iida-shi Idegawa , Matsumoto-shi Oaza Wada 4462, Matsumoto-shi Minami-hodaka 578-1, Toyoshina, Azumino-shi Higashi Hongo 1-2-1, Shimoda-shi Koike-cho , Higashi-ku, Hamamatsu-shi Hongo-cho 452, Minami-ku, Hamamatsu-shi Shinbaru , Hamakita-ku, Hamamatsu-shi Ishido shop Iwate Kitakami shop Miyagi Natori Bypass shop Fukushima Toku Toku Funehiki Park New shop Shop Niigata Toku Toku AganogawaSA shop Kita-cho shop Niigata Shin-matsuzaki shop Chiba Shin-oguradai shop KashiwaHananoi shop New shop Funabashi Shintakane shop Toku Toku New shop Mallage Kashiwa shop Saitama Higashiurawa shop Asaka Hizaori shop Kameya Omiya shop New shop Kumagaya shop Singapore TAMPINES shop New shop Liang Court shop Shimonaga 2-1-1, Hachinohe-shi Kurosawajiri 3-1-1, Kitakami-shi Aza Yanagida 397-1, Masuda, Natori-shi Funehikimachi Funehiki Harada 9, Tamura-shi Kumawatari , Aga-machi, Higashi Kanbara-gun Kita-cho , Nagaoka-shi MK Bldg, Shin-matsuzaki 2-2-7, Higashi-ku, Niigata-shi Ogura-cho 882-8, Wakaba-ku, Chiba-shi Hananoi 712-8, Kashiwa-shi Shintakane , Funabashi-shi Mallage Kashiwa 2F, Oyamadai 2-3, Kashiwa-shi Higashiurawa 5-2-6, Midori-ku, Saitama-shi Hizaori-cho , Asaka-shi Takahana-cho , Omiya-ku, Saitama-shi Kamino 647-1, Kumagaya-shi SHOP LIST 19 * Please refer to Start of overseas expansion on Page 9 & 10 for further. details. 20

12 The general business situation Business progress and results, outlook for next year We, Kazokutei Co., Ltd., have changed our basic policy for business operations since January, Specifically, we have set it as our basic policy to build up a management structure that can generate profit even with the 90% sales of existing shops as compared to previous year and have established a system for staff rotation management in shops, reduction of food material waste, and saving of utility expenses. As a result, despite the aggravated consumer behavior of spending cuts for eating out and the subsequent low level sales in existing shops as compared to previous year as well as the negative impact of new strain of influenza centered on Kansai area, in particular, we were able to realize greater operating and ordinary income than those of the revised business outlook. Moreover, we have generated positive net profit for the term, though slightly, while proactively implementing Scrap & Build of existing shops to build up future profitable structures. We initiated sales promotion campaigns such as Happy Meal Coupon which costs 5,000 Yen but is worth 6,000 Yen dining in June. Also we started in selected shops Longevity Service and Blood Donation Campaign. They enabled us to attract new customers and secure a large number of repeat customers. In addition, directly managed Toku Toku shops carried out Grand Thanksgiving Festival jointly with franchise chain shops in August and The World s Three Major Soup Pan Cuisines Festival in November in order to increase the number of regular customers. Concerning upgrading of sales networks, increase of the number of shops due to new openings as our direct business was 13 while decrease was 11 due to strategic Scrap & Build initiative and a shift to franchisees, which has brought the number of directly managed shops to 117 in total as of the end of this business year. Meanwhile, as for the FC business, 32 new franchise agreements were concluded and 19 shops were newly opened, including a shop whose owner has changed and a shop shifted to franchisee from directly managed shop, while we have terminated 9 franchisees. Among the reasons of such termination, business successor problems or unprofitable performance are included. All together, the total number of shops resulted in 219 including directly managed shops and franchise chain shops. With regard to new business areas, we have concluded a technical support agreement with NEXCO East Japan Retail Co., Ltd in October, 2009 with the development of PASAR business complex to improve the convenience of parking and service areas in expressways in East Japan, which is promoted by NEXCO East Japan Group. This agreement was concluded, with establishment of PASAR in Hanyu service area in Tohoku Expressway, to provide our technical know-how and food materials for supporting the launch of a noodle shop in the complex. Accordingly, Hanyu Seimensho was opened in November. We hope that we will continue to build up similar partnership in other facilities. As for the current situation in overseas Japanese cuisine restaurant business, we opened shops in Singapore, namely Toku Toku No. 1 shop in Tampines 1 in April and Toku Toku No. 2 shop in Liang Court in September. In addition, we agreed on Mega-franchisee contract with Thai local food service company, Oishi Group Public Co., Ltd. in June and opened Kazokutei No. 1 shop in Central Pinklao, Bangkok in November and Kazokutei No. 2 shop in Thonglor, Bangkok in December, which resulted in 4 overseas FC shops as of the end of this business year. In January, 2009 we concluded a basic agreement with Juggernole Limited, a wholly owned subsidiary of Want Want Group, a major food company originated in Taiwan and are planning to open a shop in spring in 2010 based on the license obtained in December to establish a joint venture. As a result of the above-mentioned sales activities, revenues were decreased by 3.2% from the previous year to billion Yen, with operating income decreased by 20.7% to 260 million Yen, with ordinary income decreased by 18.9% to 276 million Yen. Net profit for the business year amounted to be 20 million Yen, with extraordinary losses of 159 million Yen mainly due to loss on disposal of fixed asset and loss on shop closure based on Scrap & Build initiative, etc. This represents 85.0% reduction compared to the previous term. Interest-bearing liabilities were decreased by 263 million Yen to 1,814 million Yen compared to 2,078 million Yen in the previous business year. Concerning the outlook for the next business year, our existing shop sales on a full year basis is projected to be somewhere around 95% as compared to previous year, based on the assumption that food service industry will likely remain sluggish. Even under such situations we are determined to generate the same level of profit as in this business year in the existing business areas by thoroughly implementing cost management. Moreover, we will make our best efforts to expand the tie-up business (in which we provide technical know-how and food materials, while partners' original brand is used,) including the Expressway related businesses, conclude franchise agreements with large-scale franchisees, and enter into franchise agreements with new overseas partners in order to generate further profits. The performance for the whole business year is projected as 9,622 million Yen in revenues, 421 million Yen in operating income, 414 million Yen in ordinary income, and 167 million Yen in net profit. For the year ended December 31, 2009 Total sales by each business department 8,955 million yen FC business department 13.6% Kazokutei business department 66.1% Toku Toku directly-managed business department 20.3% Financial Highlights * Due to a change in account settlement term, the 57th period was 9 months from April 1st to December 31st, However, mid term settlement term for period of 6 months was from April 1st to September 30th, 2007, period of 6 months. Revenue The 56th period The 57th period the account closed in 9months The 58th period The 59th period The 56th period The 57th period the account closed in 9months The 58th period The 59th period For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended March31, 2007 December31, 2007, December31, 2008 December31, 2009 March31, 2007 December31, 2007, December31, 2008 December31, 2009 Ordinary Income The 56th period The 57th period the account closed in 9months The 58th period The 59th period The 56th period The 57th period the account closed in 9months The 58th period The 59th period For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended March31, 2007 December31, 2007, December31, 2008 December31, 2009 March31, 2007 December31, 2007, December31, 2008 December31, 2009 The 56th period Net Profit for this Period The 57th period the account closed in 9months The 58th period (unit: million yen) (unit: million yen) (unit: million yen) The 59th period Total asset The 56th period The 57th period the account closed in 9months The 58th period (unit: million yen) (unit: million yen) (Unit: yen) The 59th period For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended For the year ended March31, 2007 December31, 2007, December31, 2008 December31, 2009 March31, 2007 December31, 2007, December31, 2008 December31, 2009 Net asset Net Profit per Share for this period The interim period The whole year BUSINESS REPORT / FINANCIAL HIGHLIGHTS 21 22