Genki Global Dining Concepts Second Quarter Financial Supplementary Presentation

Overview of Performance

For the second quarter of this fiscal year, consolidated net sales were 50,059 hundred million yen (Year-over-Year +14,854 hundred million yen, +31.1%), driven by expanded overseas operations and new store openings. Operating income was 2,921 hundred million yen (Year-over-Year -187 hundred million yen), and net income attributable to owners of parent was 1,564 hundred million yen (Year-over-Year -542 hundred million yen), affected by increased one-off costs in global operations and higher goodwill amortization. By segment, domestic operations were steady, global operations declined due to cost factors, and Other increased due to group consolidation effects.

Outlook and Capital Structure

Despite the impact of costs related to the subsidiary acquisition of Food Odyssey, the company is maintaining increased customer traffic through more domestic stores and attractive menu offerings. On the financial side, the decrease in cash and deposits reflects expenditures related to the acquisition, and the increase in fixed assets is due to acquisition-related costs and asset capitalization. The equity ratio declined to 27.7%. Going forward, focus will be on contributions from new store openings and optimizing the cost structure.