Upload
others
View
5
Download
0
Embed Size (px)
Citation preview
TORIDOLL Holdings Corporation
ANNUALREPORT2019
CONTENTS
0203040607091113161718192022242829
CORPORATE PHILOSOPHY
MESSAGE FROM PRESIDENT
FINANCIAL HIGHLIGHTS
GLOBAL PRESENCE
CORPORATE STRATEGY
FLAGSHIP BRAND
OUR BRANDS IN JAPAN
OUR BRANDS WORLDWIDE
LIFESTYLE BUSINESS
M&A
HISTORY
SOCIAL INITIATIVES
CORPORATE GOVERNANCE
MANAGEMENT DISCUSSION & ANALYSIS
CONSOLIDATED FINANCIAL STATEMENTS
COMPANY OVERVIEW
INVESTOR INFORMATION
01
CORPORATE PHILOSOPHY
02
“Delicious” has no borders
Takaya AwataPresident & Founder
TORIDOLL Holdings Corporation
The passion for food is what made me start my business. An appetizing aroma
that stirs the appetite, the master chef’s amazing culinary skills, the heat from
the kitchen as food is being prepared in front of you… all of these elements come
together to create a “deliciousness” that is experienced (enjoyed/appreciated)
with all the five senses instead of just with your tongue… It is our desire to bring
this passion for food to as many customers as possible, and our mission is to
spread it to the entire world. With each bite we want you to smile and think,
“This is delicious!” We don’t speak the same language, but our customers’ smiles
tell us their emotions. We, at TORIDOLL, are proud to be a company that continues
to cherish these values. With our commitment to world-class hospitality, we will
develop business models that respect the cultural and regional differences of each
country. With our origins in Japan, we aim to become a leading global company in
the restaurant industry. I believe we can open up a future of unlimited opportunities
in the global market.
MESSAGE FROM PRESIDENT
03
NUMBER OF STORES
TOTAL TRADING TRANSACTIONS
145.0billion YEN
Total tradingtransactions
145.0billion YEN
Other Brands13.2%
MARUGAME SEIMEN62.0%
TONICHI2.7%
Overseas Brands20.9%
TORIDOLL1.3%
2017 2018 20192016201520142013201220112010200920082007200620052004200320022001
(Stores)
1,600
1,400
1,200
1,000
800
600
400
200
0
1,678STORES
Number of stores
(Billions of yen)
*Figures for fiscal 2014 and fiscal 2015 represents net income attributable to owners of the parent company,
while International Financial Reporting Standards has been introduced from fiscal 2015.
Number of restaurants outside JapanNumber of restaurants in Japan
FINANCIAL HIGHLIGHTS Years Ended March 31, 2019.
04
*The Company Group has applied International Financial Reporting Standards (IFRS) starting from the consolidated year ended March 31, 2015.
*Figure for the previous year is also disclosed adhering to IFRS.
IFRSIFRSIFRSIFRS
2019201720162015
Payout ratio 24.120.0
PER 18.6
ROE 0.8
433.8
17.5
Equity ratio
Major indicators28.8%53.4%
(%)
19.920.5
18.834.1
18.99.1
51.9%42.9%
Profit for the year 2215,585
Operating profit 2,3028,619
Selling, general and administrative expenses (66,280) (98,634)
Gross profit 105,90475,563
Cost of sales (39,117)(26,216)
For the yearTotal trading transactions 145,022101,779
(Millions of yen)
5,2422,011
8,7334,175
(62,347)(58,605)
71,48264,986
(24,105)(22,309)
95,58787,294
(Millions of yen)
Total equity 35,00335,006
Total assets 117,83364,011
At year end
30,87225,359
57,79359,019
Cash dividends 1.5026.00
Per share data (Yen)
EPS 6.22129.89
BPS 788.44
IFRS
2018
24.7
36.0
13.2
32.5%
4,663
7,635
(77,685)
85,644
(30,860)
116,504
37,470
111,525
26.50
107.44
834.13
24.0010.00
120.5648.84
692.48586.10 798.02
FINANCIAL HIGHLIGHTS Years Ended March 31, 2019.
05
NUMBER OF STORES IN MAJOR COUNTRIES AND REGIONS
Japan
Hong Kong
China
Malaysia
Indonesia
Taiwan
Other Asia countries
Portugal
UK
Other European countries
USA
Other countries
0 20 40 60 80 100 120 (Stores)
1,117
126
68
66
57
35
70
38
24
22
55
40
Our multi-portfolio strategy to reflect diverse regional food cultures.
Opened 1,718 restaurants globally*As of July 30, 2019.
Japan
1,117STORES
40STORES
55STORES
22STORES
35STORES
24STORES
38STORES
57STORES
Hong Kong
126STORES
Other Asiacountries
70STORES
Malaysia
66STORES
China
68STORES
GLOBAL PRESENCE
06
MID-TERM GOAL
MID TO LONG-TERM VISION
We aim for consolidated net sales of 4.6 billion $, with 6,000 restaurants worldwide*The exchange rate as of July 31, 2019.
Restaurant Health care
BeautyCosmetics
BeautyCosmetics
Homemade meals,take-away
Homemade meals,take-away
NEXTLIFESTYLEINCUBATOR
NEXT LIFESTYLE INCUBATOR Started out as a restaurant company evolving into a global lifestyle company
Asia2,000 stores1.2 billion $
Japan2,300 stores2.1 billion $
North America1,000 stores0.9 billion $
Central & South America200 stores0.1 billion $
Europe & Middle East500 stores0.3 billion $
CORPORATE STRATEGY
07
BUSINESS STRATEGY
THE BUSINESS BASE
With our concept of “freshly hand-made”, we achieved rapid growth.As a result, we developed unique strengths
Restaurant Development100 restaurants annually
OperationTurning inefficient into efficient
NEW BUSINESS
Product DevelopmentForming a trinity with the producer
and the manufacturer
ProcurementOverwhelming volume
Corporate CulturePassion and speed
RESTAURANT
Further growth of our business base
Domesticrestaurants
Overseasrestaurants Health care Beauty
The business base of
TONICHI
BANPAIYA
Creation of a new business base
Existing main business
Establish a cycle of creating new businesses and expanding the business base to exploit our existing business base
CORPORATE STRATEGY
08
TORIDOLL Group’s flagship brand, MARUGAME SEIMEN, is a self-service restaurant chain specializing in Sanuki udon. Since its first restaurant opened in Japan in November 2000, MARUGAME SEIMEN has been committed to serving the tasty, genuine “freshly handmade” udon. With a noodle machine installed at each restaurant, we make the best dough each day from carefully selected domestic wheat, salt and water. Fresh noodles are cooked right away for “freshly kneaded and boiled taste”. By cooking in front of our customers in an open kitchen, we aim to create an authentic restaurant with the ambience of a noodle-making factory in Kagawa prefecture, home of Sanuki udon. Today, MARUGAME SEIMEN has become a popular brand that is supported by many customers young and old, totaling more than 150 million people a year. Since our establishment, we have steadily expanded our restaurant network, reaching about 800 restaurants in all prefectures, and we are actively expanding not only in Japan but also around the world. With a reach unsurpassed by other companies, we have the absolute No.1 position in the udon industry, both in sales and number of restaurants.
MARUGAME SEIMEN
FLAGSHIP BRAND
09
Udon is a type of thick wheat flour noodle, used frequently in Japanese cuisine. In the past, Udon was a special food that people eat at ceremonies and celebrations. It has become a popular staple food in Japan as an alternative to rice. There are numerous varieties of Udon today, and Sanuki Udon is recognized as one of the three most famous types of Udon. Named after the old name of Kagawa prefecture in the south-west of Japan, Sanuki Udon is known for its firm, al-dente texture. The thick long flour noodle is perfectly nice and chewy, yet so soft and silky to slurp. Udon remains extremely popular in Kagawa Prefecture, which is number one in the production and consumption of Udon.
What is “Sanuki Udon”?
FLAGSHIP BRAND
10
TORIDOLLThis is an authentic “Yakitori (grilled chicken)” restaurant where all family members can enjoy together regardless of age. The business name “TORIDOLL” comes from “tori” of “Yakitori”. TORIDOLL was the first business of TORIDOLL Holdings.
TONICHIA restaurant chain specializing in katsu-don (pork cutlets over rice) and ton- teki (pork steak) known for the ultimate in savory and tender pork. This restaurant chain is known for its katsu-don featuring freshly deep fried pork cutlet enveloped with egg and special warishita stock and its tonteki teishoku (set meal) featuring pork steak barbequed with special sauce.
MARUSHOYAA chain of ramen shops committed to the in-house production of not just the noodles but other ingredients as well. Their extremely flavorful bowls of ramen are possible only because they are elaborately prepared all by hand.
NAGATA-HONJYO-KENA chain of yakisoba restaurants, featuring medium-thick noodles made in-house and rich flavorings typical of Kobe’s old town area.
OUR BRANDS IN JAPAN
11
Kona’s Coffee / Lanai CafeA Hawaiian-style cafe designed with a classic Hawaiian vacation mood. The soft, fluffy pancakes are made by hand in store and cooked fresh to order, while each cup of Hawaii Kona Blend Coffee is brewed to perfection with an aroma that instantly set you in Hawaiian vacation mode.
ZUNDO-YASince opening the first shop in Himeji city in April 2002, we have stores mainly in the Kansai region with our focus in TONKOTSU (rich pork based soup) ramen. Our customers can choose from two kinds of fine noodles that are carefully hand-made. Our TONKOTSU soup is made only from water and pork bones in a process of over 20 hours, giving it its unique taste.
MAKINOThis chain of restaurants specialized in a set tempura menu only frying the ingredients after the order is place by the customers, always serving crisp, piping hot tempura.
BANPAIYASince opening our first store in 2009, we have established our business mainly in Tokyo. We have characterized the concept to fit the current needs of the people, whereby rapid-growing single and senior households can enjoy us casually. Most of our stores are standing bars with satisfying dishes starting from 100 yen and drinks for 500 yen or less.
OUR BRANDS IN JAPAN
12
MARUGAME UDONA specialized Sanuki Udon restaurant serves an authentic tasty Udon in self-service style. In an open kitchen style, all the preparation procedures are visible and customers can make sure that all food is freshly made in the restaurant.
OUR BRANDS WORLDWIDE
13
Boat NoodleTracing its roots back to small soup noodle dishes of the floating markets of Thailand, this popular fast food chain offers the perfect blend of convenience, flavor and visual entertainment. Pork-free dishes have also received Malaysian Halal certification, making them ideal for customers of Islamic faith to enjoy.
SHORYUSHORYU triggered a ramen boom in London with the authentic tonkotsu pork broth style ramen it serves.
Other dishes like yakitori, pan-fried gyoza dumplings and Hakata buns with ingredients wrapped in a
Chinese-style dough help to complement this quick and convenient, authentic style of Japanese dining.
WOK TO WALKAsian fast food chain that spreads worldwide, mainly in Europe, featuring a modern feel by adding Western trends to the Thai street food concept. With dishes cooked right in front of customers on raging flames, this style of cooking that fuses entertainment value with rich flavor is popular everywhere.
Tamjai Yunnan Mixian / Tamjai Samgor MixianTamjai’s Yunnan Noodle is a rice noodle very popular for its texture and spicy soup, added with wide
variety of toppings and level of spiciness. It attracts especially the young generations with its value for price.
OUR BRANDS WORLDWIDE
14
Monster CurryMONSTER CURRY, as a Japanese curry shop, has been widely accepted from people in Singapore and ranked the first in the market share of Singapore. The Japanese-style chopped curry sauce is rich in flavor, and its big portion can be shared and the five spicy levels can be chosen make the MONSTER CURRY full of popularity.
PokéworksPokeworks is a leader in the North American poke (cubed raw fish) movement. Inspired by sustainable, seasonal, and natural ingredients. Pokeworks is committed to bring you healthy and superior seafood. In collaboration with celebrity U.S. Top Chef, Sheldon Simeon, Pokeworks offers an authentic taste of the Hawaiian islands through innovative dishes.
OUR BRANDS WORLDWIDE
15
SONOKO“SONOKO” is a lifestyle company that provides beauty and health through oil-free, additive-free food and domestically produced beauty products that do not damage your skin, with the desire to “provide joy to our customers through safe and ethical health and beauty products”. In response to the needs for beauty, health and food safety, which are increasingly becoming important worldwide, we will develop group synergy with our know-how and expansive reach cultivated over many years to create new lifestyle concepts as well as added values.
A lifestyle brand that provides beauty and health through food
fufu“fufu” provides quality professional services at a reasonable price by specializing in hair coloring services and streamlining the business. Generally, coloring hair requires significant amount of money and time at a hair salon or even more effort to do it at home, but “fufu” has established new options in the hair color market.
Energize your day with beautiful hair
LIFESTYLE BUSINESS
16
10 M&A deals in 4 years
In 2015, we established TD Investment Co., Ltd, a wholly-owned subsidiary that makes business investments. Our subsidiary aims to create a rich restaurant culture by bringing new ideas in the restaurant market where fragmentation continues. As a group, we aim to create new businesses that we alone cannot realize by connecting ideas and people.
Established an investment subsidiary, TD Investment Co., Ltd.
We have taken a stake in an investment fund, Hargett Hunter Premiere Brands Fund I, LP (headquartered in North Carolina, USA, hereinafter referred to as HHPBF) formed by a US investment company, Hargett Hunter Capital Partners (headquartered in North Carolina, USA, hereinafter referred to as HHCP). HHCP aims to raise US$100 million in total to invest in the US restaurant market, which is the world’s largest restaurant market with a size of around 80 trillion JPY as of 2016. HHCP will explore and invest in restaurant chains and franchise companies where high growth is expected, as well as offer a variety of platforms ranging from investment branding and location development to operation improvement.
Investment in US Food Fund
May2015
WOK TO WALK(The Netherlands)
Nov.2017
ZUNDO-YA(Japan)
Jan.2017
fufu(Japan)
May2016
SONOKO(Japan)
Dec.2017
Tamjai Yunnan MixianTamjai Samgor Mixian
(Hong kong)
Aug.2018
Nov.2018
Jul.2017
BANPAIYA(Japan)
Dec.2016
SHORYU(UK)
Feb.2016
Boat Noodle(Maraysia)
Cross-Border Domestic
CORPORATE VENTURE CAPITAL
FUND INVESTMENT
Pokéworks(US)
Monster Curry(Singapore)
M&A
17
*Figures for fiscal 2014 and fiscal 2015 represents net income attributable to owners of the parent company, while International Financial Reporting Standards has been introduced from fiscal 2015.
Established in 1985.Expanded the business around “Yakitori Family Dining TORIDOLL”.
2003-Achieved the diverse food court strategy with a focus on MARUGAME SEIMEN.
2007-Expanded the MARUGAME SEIMEN brand with roadside restaurants. Started to expand into overseas.
Established the first yakitori shop “TORIDOLL SANBAN-KAN”
Opened its first MARUGAME SEIMEN restaurant
Listed shares on the Tokyo Stock Exchange (TSE) Mothers Index
Changed listing to the First Section of the TSE
Opened its first restaurants outside of Japan, in Hawaii
Opened MARUGAME SEIMEN restaurants in Thailand, China and South Korea
Opened MARUGAME SEIMEN restaurants in every prefecture in Japan, reaching 500 restaurants
Opened MARUGAME SEIMEN restaurants
in Hong Kong, Russia, Indonesia, Taiwan and Australia
Opened MARUGAME SEIMEN restaurant in Vietnam
Opened MARUGAME SEIMEN restaurant in Malaysia
Achieved 1,000 restaurants in 30 countries and regions
around the world on the Company’s 30th anniversary
Opened MARUGAME SEIMEN restaurant in the Philippines
MARUGAME SEIMEN has opened 1,000 restaurants worldwide
Aug. 1985
Nov. 2000
Feb. 2006
Dec. 2008
2011
2013
2014
2015
Jun. 2015
Aug. 2017
Mar. 2018
Operating more than 1,700 restaurants around the world
*The exchange rate as of Aug. 30, 2018.
(Billions of $)
1.4
1.2
1
0.8
0.6
0.4
0.2
Total trading transactions
Number of restaurants outside Japan
Number of restaurants in Japan
1.4billion $(145 billion JPY)
2017 20182016201520142013201220112010200920082007200620052004200320022001
629
762
847 848 849877
1985
Our beginning
2019
15 22 26 39 5687
132190
285
403
519
4
22
61102
243
334
528
1012
1103
575
HISTORY
18
The MARUGAME udon class is a handmade udon class where you can experience “freshly handmade” taste. It’s also held at kindergartens, elementary schools, and even MARUGAME SEIMEN restaurants. This class has been held more than 800 times since its inception, joined by more than 10,000 children. Filled with the smiles of the children and the seriousness of their eyes, this udon class has become an irreplaceable activity for us as well.
MARUGAME udon class
MARUGAME SEIMEN is committed to various CSR activities. For example, we donate a portion of domestic sales of our top menu item “Kama-age Udon” to cover the cost of school lunches for children in developing countries. In 2016, we constructed a school in Myanmar as a part of these initiatives.
Donating 1 yen from each bowl of Kama-age (straight-from-the-pot) Udon
We want to improve our society through food-related activities
SOCIAL INITIATIVES
19
Board of Directors
Audit and Supervisory Committee
CORPORATE GOVERNANCE STRUCTURE
OVERVIEW OF EACH ORGANIZATION
For the foreseeable future, the Company will maintain a small, seven-member Board of Directors (including three outside
directors) to ensure agility and quick decision-making regulations. The Board of Directors aims to achieve transparency in
corporate management, disclose information in a timely manner and always maximize corporate
value for stakeholders.
As a result of this resolution, the Company will grant directors who are members of the Audit and Supervisory Committee voting
rights at board meetings to further strengthen the Company’ s audit and supervisory functions as well as the corporate
governance structure.
The Company’s Board of Directors meets monthly in principle
and at other times when necessary to decide
on important business matters and to supervise the perfor-
mance of duties by the directors in accordance
with the law, Articles of Association, Board of Directors
Regulations and other company rules.
The Company’s Audit and Supervisory Committee audits
independently the duties of the directors. The Audit and
Supervisory Committee meets regularly with the president to
exchange opinions. When necessary, the committee commu-
nicates and shares information with other
directors, corporate auditors of subsidiaries (or people who
hold a similar position), the general manager of the Internal
Audit Office and the accounting auditor, to ensure the
effectiveness of its audits. This committee meets monthly in
principle and at other times when necessary to discuss
material matters in accordance with the laws, Articles of
Association, Audit and Supervisory Committee Regulations
and other company rules.
The Company has established the Internal Audit Office, which
reports directly to the president. This office carries out
reviews and assessments, from an independent position, on
the appropriateness and effectiveness of
the Company Group’s internal controls in accordance with
the Company’s management policy. Through proposals for
improvement based on these results, the Company strives to
continuously improve the soundness and efficiency of its
corporate management. The Internal Audit Office conducts
internal audits of subsidiaries when necessary in accordance
with the Internal Audit Regulations and reports the results of
these audits to the president.
Internal Audit Office
CORPORATE GOVERNANCE
20
Risk Management StructureThe Company has established Risk Management
Regulations and the Risk Management Committee,
chaired by the president, to comprehensively identify
and evaluate risks concerning the execution of business and
to respond to these risks appropriately.
The chair of the Risk Management Committee convenes
the committee whenever risks associated with financial loss
due to changes in the management environment, violations
of the law or Articles of Association or other reasons are
detected, to ascertain the facts. The chair
then issues instructions on countermeasures and asks
the applicable business division(s) to report on the details of
the risks and the extent of the loss that might result.
The Internal Audit Office periodically audits the head office
divisions and restaurants to ensure that risks are quickly
identified and reported to the president, who is responsible
for all business operations.
General shareholders’ meeting
Selection/Retirement
Selection/Retirement
Accounting auditor(audit firm)
Instructions
Report
Cooperation/Collaboration
President Internal Audit Office
Directors(Seven directors)
Executive directors(Four directors)
Audit and Supervisory Committee(Three directors, of whom three are
outside directors)
Audit
Appointment/Dismissal
Appointment/Dismissal
Appointment/Dismissal
Cooperation/Collaboration
Business divisions
Report Internal audit Operating audits/Accounting audits
Cooperation/Collaboration
Instructions/Control
Executive Officer
Accountingaudits
CORPORATE GOVERNANCE
21
BUSINESS PERFORMANCEDuring the consolidated fiscal year ended March 31, 2019, Japan’s economy has been on a moderate recovery path, supported by the improved business performance and employment situation. However, the Japanese economy is forecast to remain subdued because of the negative effect of prolonged uncertainty about the trade war between the United States and China.
The whole of the food sector in Japan is under pressure at the moment. The top three reasons are: 1) adverse effects of incremental weather conditions and earthquakes during the period, 2) rising price of raw materials and higher labor costs due to the shortage of suitable workers, and 3) fierce competition between restaurant brands in an increasingly challenging market.
In a continuing challenging economic environment, we continue to strengthen and intensify our efforts to improve profitability.
In Japan, the Group has implemented a series of measures aimed at boosting brand awareness and customer engage-ment to drive sales, including aggressive promotions and a new nationwide TV advertising campaign.
The Group continued to expand through several mergers and acquisitions within domestic and international markets. Domestically, the Group opened a number of new stores while exploring new business models to seek new market opportunities. Likewise, to reinforce the profitability of overseas operations, it also focused on expanding the number of locations.
During fiscal 2019, the Group added 27 new Marugame Seimen locations, while opening 81 stores of other brands, including a new concept Butaya Tonichi, to drive new and existing concepts to maximize revenue.
Its international expansion remains equally aggressive. While focusing on profitability, the Group opened 25 new company-owned stores and 110 franchise1 locations during the period.
By the end of fiscal 2019, the Group opened 138 stores,
including 34 franchise locations, bringing the total number of stores to 1,678 stores, including 413 franchise stores.
The Group has continued to see robust growth in fiscal 2019, recording consolidated revenue of ¥145,022 million, up 24.5% year-on-year.
However, operating profit dropped by 69.8% to ¥2,302 million, and profit before tax fell by 81.4% to ¥1,337 million, while profit for the year attributable to owners of the parent company totaled ¥267 million, down 94.3% year-on-year.
EBITDA2 declined by 26.2% to ¥8,671 million, while adjusted EBITDA increased by 0.3% to ¥12,402 million.
MARUGAME SEIMEN Twenty-seven new restaurants, including 15 roadside locations and 12 shopping mall locations, opened under the brand during the period, while two stores were closed, and the total number of stores at the end of fiscal 2019 was 817.
Meanwhile, revenue decreased by 0.5% year-on-year to ¥89,944 million, and segment profit decreased by 11.1% year-on-year to ¥12,438 million.
TORIDOLLTwo stores were closed, and the total number of stores at the end of fiscal 2019 was 15.
As a result, revenue decreased by 10.3% year-on-year to ¥1,829 million, and segment profit decreased by 39.3% year-on-year to ¥46 million.
(*1) All stores except those owned and operated by the Group or its subsidiaries
are referred to as “franchise restaurants.”
(*2) The Group discloses EBITDA and adjusted EBITDA, starting with the current
fiscal year under review as useful comparative information for the Group’s
performance. EBITDA excludes the effects of non-cash expenditure items (i.e.,
depreciation and amortization) from operating profit. In addition, adjusted EBITDA
excludes the effects of impairment losses and extraordinary expenses, including
advisory fees concerning stock acquisitions from EBITDA. EBITDA and adjusted
EBITDA are calculated as follows. ・EBITDA = Operating profit + Other operating expenses – Other operating income
+ Depreciation and amortization ・Adjusted EBITDA = EBITDA + Impairment losses + Extraordinary expenses
MANAGEMENT DISCUSSION & ANALYSIS
22
ANALYSIS OF FINANCIAL CONDITION
CASH FLOWS
AssetsTotal consolidated assets at the end of the fiscal year under review increased ¥4,621 million, compared with the end of the previous fiscal year, to ¥110,212 million. The main reason for this change was increases in cash and cash equivalents, trade and other receivables, and intangible assets and goodwill of ¥3,615 million, ¥5,398 million, and ¥32,314 million, respectively.
Liabilities / EquityTotal liabilities increased ¥43,961 million, compared with the end of the previous fiscal year, to ¥72,966 million. This change was mainly due to increases in trade and other payables and long-term loans payable of ¥34,555 million and ¥3,689 million, respectively, compared with the end of the previous fiscal year.Total equity increased ¥2,240 million, compared with the end of the previous fiscal year, to ¥37,246 million, due to an increase in retained earnings and other factors.
The consolidated balance of cash and cash equivalents (hereafter, “cash”) at the end of the fiscal year under review increased ¥3,615 million, compared with the end of the previous fiscal year, to ¥14,798 million, a year-on-year increase of 32.3%.
Cash Flow from Operating ActivitiesCash obtained from operating activities totaled ¥9,862 million, up 1.2% from the previous fiscal year. This was mainly attributable to profit before tax of ¥7,175 million and depreciation and amortization of ¥3,984 million, increase in trade and other receivables of ¥1,276 million, while income taxes paid totaled ¥2,439 million.
Cash Flow from Investing ActivitiesCash used in investing activities increased to ¥39,860 million, compared with ¥8,769 million in the previous year. This was mainly attributable to expenditures for the purchase of property, plant and equipment of ¥5,498 million, expendi-
tures for the purchase of shares of subsidiaries resulting in a change in the scope of consolidation of ¥32,418 million.
Cash Flow from Financing ActivitiesCash gained from financing activities totaled ¥35,039 million, compared with an outflow of ¥102 million in the previous year. This was mainly attributable to net increase in short-term loans payable by ¥34,579 million, proceeds from long-term loans payable of ¥8,745 million as well as expendi-tures for the repayments of long-term loans payable of ¥7,007 million, and cash dividends paid of ¥1,128 million.
MANAGEMENT DISCUSSION & ANALYSIS
23
Consolidated statements of financial position (Millions of yen)
As of March 31, 2019As of March 31, 2018
Total assets
Total non-current assets
Other non-current assets
Deferred tax assets
Other financial assets
Investments accounted for using the equity method
Intangible assets and goodwill
Property, plant and equipment
Non-current assets
Total current assets
Other current assets
Inventories
Trade and other receivables
Cash and cash equivalents 14,398
4,416
830
2,108
21,752
30,682
41,660
5,477
14,594
2,719
949
96,081
117,833
Current assets
Assets
Total liabilities
Total non-current liabilities
Other non-current liabilities
Deferred tax liabilities
Provisions
Lease obligations
Long-term loans payable
Non-current liabilities
Total current liabilities
Other current liabilities
Provisions
Income taxes payable
Lease obligations
Current portion of long-term loans payable
Short-term loans payable
Trade and other payable 9,542
64
10,310
295
278
899
4,565
25,953
48,764
3,241
2,180
2,140
552
56,878
82,830
Current liabilities
Liabilities
Total liabilities and equity
Total equity
Non-controlling interests
Total equity attributable to owners of the parent
Other components of equity
Treasury shares
Retained earnings
Capital surplus
Capital stock 4,076
4,085
28,477
(2,143)
(516)
33,979
1,024
35,003
117,833
14,798
5,766
815
1,423
22,802
29,370
39,872
4,084
12,597
1,685
1,116
88,724
111,525
9,818
34,580
5,198
325
1,886
505
3,906
56,217
10,246
3,457
1,728
2,225
182
17,838
74,056
4,031
4,064
29,347
(0)
(1,200)
36,242
1,228
37,470
111,525
Equity attributable to owners of the parent
Equity
CONSOLIDATED FINANCIAL STATEMENTS
24
Cost of sales
Gross profit
Selling, general and administrative expenses
Impairment loss
Other operating income
Other operating expenses
Operating profit
Finance income
Finance costs
Finance income (costs), net
Share of profit (loss) of investments accounted for using the equity method
Income tax expense
Profit before tax
Profit for the year
Profit for the year attributable to
Owners of the parent
Non-controlling interests
Profit for the year
Earnings per share attributable to owners of the parent (yen)
Basic earnings per share
Diluted earnings per share
145,022
(39,117)
105,904
(98,634)
(3,630)
562
(1,900)
2,302
356
(415)
(59)
(907)
1,337
(1,116)
221
Total trading transactions
Consolidated statements of income (Millions of yen)
Year ended March 31, 2019
Year ended March 31, 2018
Other comprehensive income
Items that may be reclassified to profit or loss
Share of other comprehensive income of investments accounted for
Exchange differences on translating foreign operations
using the equity method
Other comprehensive income
Comprehensive income for the year
Comprehensive income for the year attributable to
Owners of the parent
Non-controlling interests
116,504
(30,860)
85,644
(77,685)
(198)
335
(462)
7,635
182
(458)
(276)
(184)
7,175
(2,513)
4,663
267
(46)
221
4,665
(2)
4,663
6.22
6.19
107.44
106.66
221
800
(218)
582
802
902
(100)
4,663
(1,721)
148
(1,574)
3,089
3,019
70
Profit for the year
Consolidated statements of comprehensive income (Millions of yen)
Year ended March 31, 2019
Year ended March 31, 2018
CONSOLIDATED FINANCIAL STATEMENTS
25
Commonstock
Capitalsurplus
Retainedearnings
Treasuryshares
Exchangedifferences
ontranslating
foreignoperations
Subscriptionrights
to shares
Other components of equity
Total TotalNon-
controllinginterests
Totalequity
Equity attributable to owners of the parent
35,0031,02433,979(516)378(894)(2,143)28,4774,0854,076As of March 31, 2019
——(14)(14)14Transfer to retained earningsfrom other components of equity
(3,269)(104)(3,165)6363—(2,143)(1,151)
(4)
2145Total transaction amountwith owners
(4)
(90)
(4)
—
—
(15)(1,151)Dividends (1,166)
(90)
(1,151)—
—
Share-based payment transactions
Acquisition of treasury shares
938686 93
636343 (23)(23)43
2 3
(2,165)— (2,165)(20) (2,146)
2
Issuance of new shares(exercise of subscription rights)
802— — — 635—267 635Total comprehensiveincome for the year
582635635Other comprehensive income
221267
902
(46)
635 (53)
(100)
—267Profit for the year
37,47036,242 1,228(1,200)329(1,529)(0)29,3474,0644,031As of April 1, 2018
Consolidated statements of changes in equity (Millions of yen)
Change of scope of consolidation
(Millions of yen)
Others
Commonstock
Capitalsurplus
Retainedearnings
Treasuryshares
Exchangedifferences
ontranslating
foreignoperations
Subscriptionrights
to shares
Other components of equity
Total TotalNon-
controllinginterests
Totalequity
Equity attributable to owners of the parent
37,4701,22836,2421,200329(1,529)(0)29,3474,0644,031As of March 31, 2018
——(0)(0)0Transfer to retained earningsfrom other components of equity
(625)354(979)3838——(1,131)
(3)
5757Total transaction amountwith owners
(3)
374
(3)
—
—
(20)(1,128)Dividends (1,148)
374
(1,128)—
—
Share-based payment transactions 767373 76
767655 (34)(34)55
22
Issuance of new shares(exercise of subscription rights)
3,089— — — (1,646)—4,665 (1,646)Total comprehensiveincome for the year
(1,574)(1,646)(1,646)Other comprehensive income
4,6634,665
3,019
(2)
(1,646) 72
70
—4,665Profit for the year
35,00634,203 804408291117(0)25,8134,0073,975As of April 1, 2017
Change of scope of consolidation
Others
CONSOLIDATED FINANCIAL STATEMENTS
26
(Millions of yen)
Year endedMarch 31, 2019
Year ended March 31, 2018
Cash flows from operating activities1,337
5,098
3,630
(212)
348
907
351
(7)
(900)
1,978
12,529
56
(357)
(3,812)
8,416
Profit before tax
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Share of loss (profit) of investments accounted for using the equity method
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Subtotal
Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities(9,032)
(358)
(1,340)
568
(302)
452
(1,102)
(2,272)
(824)
(14,210)
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payments of construction assistance fund receivables
Collection of construction assistance fund receivables
Purchase of shares of subsidiaries resulting in change in scope consolidation
Purchase of investments accounted for using the equity method
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities(34,578)
51,358
(7,728)
(262)
(1,151)
(2,146)
41
5,534
(260)
14,798
(140)
14,398
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Cash dividends paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
7,175
3,984
198
(181)
275
184
(1,276)
120
985
1,286
12,510
34
(243)
(2,439)
9,862
Other, net
(5,498)
(202)
(778)
66
(283)
465
(32,418)
(60)
(1,151)
(39,860)
34,579
8,745
(7,007)
(221)
(1,128)
—
70
35,039
5,041
11,183
(1,426)
14,798Cash and cash equivalents at end of period
Effect of exchange rate change on cash and cash equivalents
Consolidated statements of cash flows
CONSOLIDATED FINANCIAL STATEMENTS
27
COMPANY NAME
MAIN BUSINESS
MAIN BRAND
ESTABLISHMENT
CAPITAL
TOKYO HEADQUARTERS
KOBE OFFICE
BOARD MEMBERS
CORRESPONDING BANKS
NUMBER OF EMPLOYEES
TORIDOLL Holdings Corporation
Business management of group
subsidiaries mainly consisting restaurant businesses
MARUGAME SEIMEN (Sanuki Udon)
TORIDOLL (Yakitori family dining)
Fried Pork Chop・Thick-cut Sopping Pork Chop Shop — Butaya Ton-Ichi
SONOKO (Beauty and lifestyle brand)
June 11, 1990
October 28, 1995
October 1, 2016
4,100,163,000yen
*As of March 31, 2019.
SHIBUYA SOLASTA 19F, 1-21-1 Dogenzaka,
Shibuya-ku, Tokyo 150-0043, Japan
TEL: +81-3-4221-8900
FAX: +81-50-3156-0890
Nihon-Seimei Sannomiya-eki-mae Bldg. 11F, 7-1-1 Onoedori,
Chuo-ku, Kobe 651-0088, Japan
TEL: +81-78-200-3430
FAX: +81-78-200-3431
[President (CEO)] Takaya Awata
[Executive Director (COO)] Kimihiro Tanaka
[Executive Director (CFO)] Hiroyuki Kobayashi
[Director (CSCO)] Masatoshi Kamihara
[Director(Audit and Supervisory Committee Member)] Toshiyasu Umeki
[Director(Audit and Supervisory Committee Member)] Hiroaki Umeda
[Director(Audit and Supervisory Committee Member)] Maki Kataoka
*As of July 1, 2019
Sumitomo Mitsui Banking Corporation
The Bank of Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Number of Regular Staff 3,871(current as of March 31, 2019)
Number of Part Time Staff 13,084(current as of March 31, 2019)
*Calculated from the average number of people per month each working 8 hours a day.
TORIDOLL Ltd. established
Became incorporated as Toridoll. Corporation
Converted the corporation to a holdings company (TORIDOLL Holdings Corporation)
COMPANY OVERVIEW
28
STOCK INFORMATION
Stock Listing
Number of Shares Authorized for Issue
Tokyo Stock Exchange First Section (Code No. 3397)
115,200,000 shares
43,489,576 sharesTotal number of issued shares
Share Trading Unit 100 shares
63,059Number of shareholders
*The shareholding ratio has been calculated by deducting the treasury shares.
32.37
13.1
4.39
2.57
1.66
1.12
0.76
0.7
0.7
0.62
Takaya Awata
T&T inc.
SMBC Trust Bank Ltd. Designated Securities Trust
Japan Trustee Services Bank, Ltd. (Trust account)
Japan Master Trust Bank, Ltd. (Trust account)
Japan Trustee Services Bank, Ltd. (Trust account 5)
Japan Trustee Services Bank, Ltd. (Trust account 1)
ARIAKEJAPAN Co., Ltd.
Japan Trustee Services Bank, Ltd. (Trust account 2)
STATE STREET BANK WEST CLIENT-TREATY 505234
13,784,701
5,580,000
1,998,500
1,093,900
708,600
475,600
321,900
300,000
296,200
264,600
Ratio of Ownership
(%)
No. of Shares Owned (Shares)
Major Shareholders
MAJOR SHAREHOLDERS
(noninal shareholding 0.00%)
SHAREHOLDER COMPOSITION
STOCK PRICE RANGE / MONTHLY TRADING VOLUME
*As of March 31, 2019.
Total number ofissued shares43,389,576
Number ofshareholders
63,0590.40%
Other corporations
13.86%Other corporations
0.04%Financial institutions
12.95%Financial institutions
99.2%Individuals and others
66.42%Individuals and others
0.04%
Financial instrumentsbusiness operators 2.09%
noninal shareholding
1.03%
Financial instrumentsbusiness operators
0.32%
Foreigncorporations,etc.
3.65%
Foreigncorporations,etc.
2014 2015 2016 2017 2018 20194 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
0
500
1,000
1,500
2,000
2,500
3,000
3,500
5,000,000
10,000,000
15,000,000
20,000,000
0
(Shares)
4,000
4,500(Yen)
INVESTOR INFORMATION
29
TORIDOLL Holdings Corporation
SHIBUYA SOLASTA 19F, 1-21-1 Dogenzaka,
Shibuya-ku, Tokyo 150-0043, Japan TEL:+81-3-4221-8900
Nihon-Seimei Sannomiya-eki-mae Bldg. 11F, 7-1-1 Onoedori,
Chuo-ku, Kobe 651-0088, Japan TEL:+81-78-200-3430
TOKYO HEADQUARTERS
KOBE OFFICE