3075.T

Core Existing Business Refinement

• Aim to become Japan's No.1 gourmet conveyor-belt sushi company by building on Sushi Choushimaru's unique positioning as a theatrical gourmet concept, leveraging core strengths including artisan sushi-making skill, expert procurement of bluefin tuna and small fish, and product knowledge
• Continue brand-building activities including large publicity events (like the Guinness World Record tuna butchery demonstration) and TV advertising to acquire new customers, and run targeted seasonal and production-area connected events to highlight Choushimaru's unique focus on fresh, seasonal seafood
• Prioritize small oily fish (mackerel, horse mackerel, sardine) as a signature killer content product, and upgrade freezing and processing methods to deliver consistent high quality
• Address raw material price inflation through planned procurement and pricing strategy to control cost of goods sold, and invest in sustainable sourcing, land-based aquaculture, and proprietary aquaculture development to build a stable long-term procurement base amid changing ocean conditions

Store Expansion and New Format Development

• Target ~3 new Sushi Choushimaru openings annually, with a focus on the underdeveloped Kanagawa area and declining store count Saitama area, while refining the urban store model (exemplified by the newly opened Shinjuku Subnade location) to expand into new locations and geographies
• Revitalize underperforming stores through relocation to higher foot traffic areas, systematic renovations to address aging infrastructure and improve operating efficiency
• Scale the new standing sushi bar format Standing Sushi Bar Yasuke, targeting openings in central Tokyo and near train stations where it does not overlap with the core brand's customer base, to expand the company's overall fan base
• Grow the off-premise pop-up conveyor-belt sushi catering business, which has seen consistent annual growth in event count, attendance, and repeat business from both corporate and individual clients, including strong demand from nursing homes, to expand the customer base while delivering social value

Digital Transformation (DX) Push

• Leverage data collected from full-order systems to optimize operations, standardize service quality, and improve cost control
• Use member data from the company's Enishi app to deliver targeted promotions and benefits to drive loyal customer retention, and add customer-facing conveniences like table checkout to streamline operations
• Deploy AI company-wide to automate routine tasks, freeing employee time to focus on creative work and customer-centric engagement
• Combine data analysis with store master planning to move away from experience/intuition based management, building a data-driven control system across headquarters and stores to minimize waste and improve cost of goods sold control

Talent Development

• Implement appropriate hiring and training programs to develop next-generation talent, including new career development programs and training-focused evaluation systems to improve retention and strengthen the organization
• Promote diversity to create an environment where new entrants, mid-career hires, and female employees can thrive, and build a corporate culture that encourages experimentation
• Develop model training stores to embed the company's founding mission of delivering sincere service to earn customer gratitude and joy, and roll out successful practices to all locations

U.S. Market Expansion

• Develop a sushi-focused format through the company's U.S. joint venture, with the first location SUSHI NIGIRIBA opened in Huntington Beach, California in December 2025, and the second location opened in Culver City in March 2026
• Focus on building a local talent-led operating model, building brand awareness, and developing a scalable multi-store success model for future expansion

Capital Allocation and Shareholder Returns

• The mid-term management plan projects cumulative 3-year operating profit of 4.034 billion yen and depreciation of 1.942 billion yen, for a total cash inflow of 5.976 billion yen
• Cash will be allocated to growth initiatives balanced across new store openings, existing store renovations, DX investment, overseas investment, new format development, and M&A, while maintaining consistent shareholder returns
• The company raised the annual dividend per share from 12 yen to 14 yen for the current term, and plans a further 1 yen increase to 15 yen for the 2027 February term. The company follows a stable dividend policy targeting a 2% return on equity dividend ratio, and will review this target as ROE improves.

• For the 2027 February term, management forecasts total revenue of 24.122 billion yen, representing 101.9% growth compared to the 2026 February term actual
• Management forecasts 2027 February term operating profit of 1.203 billion yen, a 23.6% decrease compared to the 2026 term actual, due to planned investments in wage increases to secure talent and system investments to support long-term profit growth
• Over the 3-year mid-term plan, management targets 5% annual revenue growth, and aims to quickly build a structure that converts top-line growth into consistent bottom-line profit

The company operates a single core product segment: sushi restaurant operations under the Sushi Choushimaru brand, supplemented by new test concepts and business formats. For the 2026 February term (the first full 12-month term after the fiscal year-end change), total company revenue was 23.667 billion yen, coming in at 97.5% of budget. Gross profit was 14.168 billion yen (94.5% of budget), operating profit was 1.575 billion yen (109.0% of budget), and net income was 1.006 billion yen (110.4% of budget). By region, Tokyo has the highest revenue contribution percentage, followed by other prefectures in the Kanto region. After adjusting for the new store opening, all regions achieved year-over-year same-store revenue growth. Pure existing store (excluding new, closed, and renovated locations) revenue grew 4.8% year-over-year, with average check size up 7.1% and customer traffic down 2.2% for the full term. In the second half, existing store revenue grew 9.0% year-over-year, with both customer traffic (+2.5%) and average check size (+6.4%) increasing. By the end of the term, the company operated 93 total locations, after opening 2 new stores and renovating 4 existing stores with no closures.

• The original full-year revenue budget was an aggressive stretch target, and unfavorable weather in the first half depressed revenue that could not be fully offset by second half strength, resulting in 2.5% underperformance against budget
• Cost of goods sold came in 1.8 percentage points above budget at 40.0%, driven by broad price increases for rice and seafood, putting downward pressure on gross profit
• Ocean environment changes threaten long-term raw material supply stability, requiring proactive investment in alternative sourcing models

Q: How many new store openings are planned for the current 2027 February term? / A: The company maintains its long-term target of approximately 3 new core brand store openings per year. Focus will remain on high-potential underpenetrated regions, while refining the new urban small-format store model that was debuted with the 2026 Shinjuku opening. New format expansion (standing sushi, U.S. locations) will proceed alongside core brand growth, with no specific fixed store count targets for new concepts at this stage of development.

Q: What are the main drivers of the forecasted profit decrease for the 2027 term? / A: The planned decline is intentional, driven by proactive investments for long-term growth rather than operational weakness. Key investments include wage increases to attract and retain talent in a tight labor market, and system infrastructure investments to support DX initiatives that will improve long-term profitability and cost control. Management expects these investments will enable the company to hit its 5% annual growth target over the mid-term.

Q: Why has gross margin declined, and what measures are you taking to improve it going forward? / A: The main driver of the 1.8 percentage point cost of goods sold overrun was exogenous price increases for key raw materials including rice and wild seafood, which could not be fully passed through in the current term. Going forward, the company will implement more proactive planned procurement, leverage data analytics to reduce food waste, and implement targeted price adjustments to keep cost of goods sold within target ranges. The company is also investing in long-term stable sourcing to mitigate future raw material price volatility.

Q: What measures are you taking to prevent food safety incidents like food poisoning? / A: Food safety is the company's top operational priority, and it has implemented enhanced end-to-end temperature control from procurement to customer service. The company is also upgrading staff training on food handling and hygiene protocols, and conducting regular internal audits across all locations to enforce compliance. All processes are being reviewed to identify and mitigate any potential food safety risks to protect customer health and the company's brand reputation.