Dialogue with Shareholders and Investors

February 2025 Interim Shareholder Message

To our shareholders:

Thank you for your continuing understanding and support.

Operating results for the interim consolidated fiscal year were as follows: Net sales of 99,313 million yen (up 8.4% compared to the same period of the previous year), operating profit of 3,713 million yen (down 6.9%), ordinary profit of 3,968 million yen (down 8.7%), and net income attributable to owners of the parent of 2,213 million yen (down 23.1%).

Yoshinoya opened 22 new stores and closed 12 and now has a total of 1,239 stores. During the summer season, stores sold strategic products such as Beef Plate Mugitoro Gozen (beef plate with wheat and grated yam), and Beef Rice Bowl with Mugitoro (beef mixed rice with wheat and grated yam), Beef Tongue/Beef Plate Gozen, and Ostrich Rice Bowl. Sales promotions included child discounts and a collaborative campaign between Yoshinoya and Kirby. In addition, prices were adjusted on July 29 in light of increased costs, personnel expenses, and raw material expenses in particular. Hanamaru opened six new stores and closed five and now has a total of 419 stores. Strategic products for the summer season included Shibazuke Oniorshi Bukkake and Yuzu Onioroshi Bukkake as well as White Sesame Tantan, Salad Tantan, and Shrimp Tantan. Sales promotions included a “Come-back Next Day Coupon Campaign" to increase the frequency of customer visits. Overseas, we opened 50 new stores and closed 39 and now have a total of 1,005 stores. In particular, in the U.S. (California) the minimum hourly wage for fast food restaurants was raised to 20 dollars, so on April 1, we adjusted prices, which affected not only us but the restaurant market overall. In China as well, the economic slowdown is greatly affecting the restaurant industry. Responding to such conditions, we are working to make headway by introducing low price combos and new products in the U.S. and China.

This year, we acquired stock in Takara Sangyo Co., Ltd., a manufacturer of ramen soup and noodles, and made it a wholly owned subsidiary. Going forward, we will work to expand our business portfolio. In addition, as a new business initiative, we started an ostrich-related business via Speedia, Co., Ltd., a wholly owned subsidiary, and in August sold products with ostrich meat, “the fourth meat," at limited stores and times.

We will continue to provide the joy of food and health to more customers, enabling them to have fulfilling lifestyles. To achieve this material issue of the Group, we will continue to provide products that contribute to healthy dietary habits and work to further promote sustainability.

I want to thank all of our shareholders for your continuing support.

Yoshinoya

Opening of Stores with a New Service Model, Including Dedicated Takeout and Delivery Stores

This year, we are aiming to reach 1,500 stores in Japan and are working to open or renovate around 100 stores. The pillar to this strategy will be bold initiatives to open stores with new service models. We currently have over 400 “cooking and comfort" style stores and 43 dedicated takeout and delivery stores, which together account for over 30% of all stores. In addition to store openings, we are conducting activities for the profitability of dedicated takeout and delivery stores. Going forward, we will accelerate the speed of new service model store openings all around Japan, not only in the Tokyo metropolitan area and major cities, and work to raise experience value and convenience for customers, providing to even more customers Yoshinoya's delicious beef bowls and fried chicken.

Expanding Sales of Yoshinoya's Thoughtful Meals, Food for Nursing Care

Providing safe, fulfilling meals that contribute to health is an important social value of Yoshinoya, a provider of daily meals, and while we maintain our traditional flavors, we are making improvements and offering new products. As part of this effort, we sell Yoshinoya's Thoughtful Meals at drugstores and supermarkets for people with trouble chewing and swallowing and for people receiving nursing care. To get our products better known by people receiving nursing care, first of all, but also by medical professionals working at hospitals and other facilities, we worked to spread awareness at the 30th Annual Meeting of the Japanese Society of Dysphagia Rehabilitation in August, where we gave a lecture and set up a booth to allow people to sample our products.

Yoshinoya Official Online Shop QR Code https://e-shop.yoshinoya.com/shop/c/c78/

Speedia

Speedia's Ostrich Oil Is Popular with Men and Customers Overseas

This year, in the process of researching new functions of ostriches, Speedia discovered that ostrich oil has strong cosmetic effects. It blends easily into the skin and works well to promote the penetration of ingredients for beautiful skin. Focusing on these features, we developed the product Glamorous Booster Oil. When used as the first step in a skincare regimen, it plays a role in robustly delivering to the skin the ingredients of toner and other products applied later, awakening the skin's original beauty. It can be used by anyone, regardless of age or sex. When we set up limited-time shops in Tokyo, the customers included many businessmen and other men from overseas. We also sell another product that uses the oil, Glamourous-Aging Cream. To commemorate announcement of the business, we provided Speedia's skincare products as a redeemable shareholder benefit limited to shareholders at the end of August 2024.

Overseas

Opening a Concept Store in Singapore and Collaboration with the Artist Jimmy Onishi

This year, as part of rebranding efforts, the Yoshinoya Bugis Junction store was renovated and opened in September as a concept store in a shopping mall in central Singapore. The store design incorporated works by Jimmy Onishi on the theme of Singapore that are colorfully painted with a dynamic touch to upgrade our brand image. Also, in October, in the ramen business, the Group opened its first store in Europe. Bariuma was opened in Edinburgh, the capital city of Scotland, offering ramen from tonkotsu chicken to soy sauce based.

Collaboration with the Artist Jimmy Onishi

Hanamaru

Onioroshi Bukkake and Cold Tantan Were Hits in the Sweltering Summer

Onioroshi Bukkake, launched this year, was a major hit. The product, which features grated daikon piled generously on Sanuki-style udon noodles with shibazuke pickles and other toppings, won the support of women in their forties to sixties in particular. The colorful appearance made an outstanding impact, and this easy-to-eat masterpiece, thanks to the grated daikon and condiments, satisfied the appetites of many people. Cold Tantan is a regular menu item for summer. We revised the cooking method for the meat miso, achieving a more delicious flavor, and maintained strong sales figures. Moreover, there was high demand for combo meals with draught beer due to the impact of the hot weather.

Promoting Activities to Contribute to Society and the Community, Starting with Children's Cafeterias

Our support as a Group for children's cafeterias began in 2020 and we have gradually expanded initiatives. Hanamaru started the Hanamaru Children's Cafeteria Project in 2021. Throughout the year, Hanamaru udon products are provided free of charge. In addition, we give practical instruction to children in udon classes sponsored by the community. Going forward, we will continue engaging in employee-led activities that contribute to local communities so that we can help bring joy and happiness to all stakeholders through the experience of food.

Others

Takara Sangyo Co., Ltd. Becomes a Group Company of Yoshinoya Holdings

The Group positions the ramen business as its next business pillar and is aiming to expand over the medium to long term. As we build a foundation for growth, in May, Takura Sangyo, which specializes in ramen ingredients, was added to the Group. Takara Sangyo was established as a noodle manufacturer in 1970 and today has seven factories in six countries, in Kyoto and Chiba in Japan and in the U.S., France, Indonesia, Thailand, and the Philippines. It develops, manufactures, and provides original noodles and soup in line with the needs of ramen shops. Ramen is a national food of Japan and is drawing attention from around the world. By Takura Sangyo joining the Group, we will work to further strengthen and expand the earnings base of the ramen business.

Interim Shareholder Message