Business Performance Reports

Business Progress and Results
(from April 1, 2015 to March 31, 2016)

Over this consolidated fiscal year, the Japanese economy showed signs of gradual recovery thanks to the government’s economic policies and monetary easing implemented by the Bank of Japan leading to greater corporate earnings, better employment conditions and other improvements. Yet uncertainty over the future state of the economy remains, underpinned by factors like the stronger yen from the beginning of the year, sluggish stock prices and overseas economic trends.

Products with high added value continue to remain popular throughout the food-service industry, and together with updated menus and revised prices, customer spending is on the rise, however there is still intense competition that spans industries.
With these economic factors in play, the Toridoll Group has been implementing measures aimed at increasing revenue in Japan, including taking an active approach to product policies and airing TV commercials around the country to help boost our brand visibility and customer satisfaction by adopting management policies with an emphasis on earnings.

Outside of Japan, we have been making efforts to improve profitability of overseas ventures, by continuing to acquire other businesses and opening new stores, while at the same time carefully assessing market conditions in countries we are expanding, and closing underperforming stores.

During this fiscal year, we opened eight new MARUGAME SEIMEN restaurants and two TORIDOLL restaurants, and also expanded into new business domains like cafes, opening a total of 14 new outlets in other businesses (of which one was a franchise restaurant (*1)).

Outside Japan, we continued a policy of aggressive expansion to build up our business, while keeping a focus on profitability. We opened 14 new directly owned and operated restaurants as well as 143 franchise restaurants (including 84 restaurants following an increase in subsidiaries and other businesses), to scale up our overseas operations.

As a result, the number of restaurants operated by the Toridoll Group at the end of this consolidated fiscal year increased by 142 year on year (of which 138 were franchise restaurants), to 1,092 restaurants(*2) (of which 210 were franchise restaurants.)

Business performance during this consolidated fiscal year saw continued strong growth in consolidated total trading transactions 9.5% year on year to ¥95,587 million, with significant increases in operating profit of 109.2% to ¥8,733 million, profit before tax by 124.6% to ¥8,117 million, and profit for the year attributable to the owners of the parent company by 163.0% to ¥5,212 million.

EBITDA also increased to ¥11,751 million (50.2% year on year), with adjusted EBITDA to ¥12,799 million (27.8% year on year).(*3)

(*1) Restaurants other than those directly owned and operated by the Company or its subsidiaries are referred to as franchise restaurants.
(*2) The change in the number of restaurants does not include directly owned and operating restaurants that became franchise restaurants (these numbered three in the previous year).
(*3) EBITDA and adjusted EBITDA are being disclosed from this fiscal year as useful comparative information on the Toridoll Group’s business performance.
EBITDA represents operating profit before non-cash charges (depreciation and amortization).
Adjusted EBITDA represents EBITDA before impairment losses and extraordinary expenses (such as advisory expenses related to stock purchases).
The calculations for EBITDA and adjusted EBITDA are shown as follows.
・ EBITDA = Operating profit + Other operating expenses - Other sales income + Depreciation and amortization
・ Adjusted EBITDA = EBITDA + Impairment loss + Extraordinary expenses