Sharing Prepared-Food Expertise and Reforming In-Store Offerings with the Parent Group

「In addition to expanding the development and sales of products for the PPIH Group, we positioned the frozen-food business as a new growth area and worked to expand the business based on our product development and manufacturing capabilities.」

「With "strengthening the prepared-foods category" clearly identified as a core pillar of the group strategy in PPIH's long-term management plan, our knowledge and technical capabilities, cultivated over many years as a prepared-foods specialist, are expected to play an extremely important role,」

「Meanwhile, delivery volumes to external customers temporarily declined due to policy-driven production adjustments at certain factories, undertaken with a view to expanding deliveries to the PPIH Group.」

「In the external sales business, against the backdrop of deepening collaboration with Pan Pacific International Holdings Corporation, which gained full momentum in March 2023, we reorganized 4 plants into a dedicated structure for the company, including by adjusting the items produced at each plant.」

「Against this backdrop, centered on our business alliance with Pan Pacific International Holdings Corporation (hereinafter, "PPIH"), we have pursued bold challenges and responded flexibly to change in an effort to expand the scale of our business and enhance corporate value.」

「Against this backdrop, centered on the business alliance agreement entered into with Pan Pacific International Holdings Corporation (hereinafter, "PPIH") in March 2023, we have sought to expand the scale of our business and enhance corporate value by organically integrating our manufacturing bases, store-operating capabilities and product development functions with the PPIH Group's sales, marketing, food procurement and product development functions.」

「In November 2023, we began manufacturing and delivering Henkai Meshi, PPIH’s new boxed-meal and prepared-food brand based on the concept “Rather than 75 points for everyone, 120 points for someone,” and steadily pursued an expansion in delivery volumes.」

「Against this backdrop, we entered into a business alliance agreement with Pan Pacific International Holdings Corporation, or PPIH, in March 2023. As PPIH positions the prepared-foods sector as strategically important to differentiating itself from other companies, we will work to enhance the corporate value of both companies by organically combining our manufacturing sites, store operations capabilities and product development capabilities with those of the PPIH Group in sales, marketing, food-ingredient procurement and product development.」

「For eashion, we launched a project in the previous fiscal year and began preparations to open stores under a new brand that would become a sister brand. We conducted test sales at existing stores and received favorable feedback from developers and customers. We consider this to have enabled us to verify and establish operating procedures, and we also gained confidence in the new brand.」

「In the tenant business, as part of store expansion at the dual-branded, format-converted “MEGA Don Quijote UNY” stores operated by UNY and Don Quijote, we began converting stores to the new brand “Re'z deli” in November 2020. The brand offers valuable, affordable products suited to customer demographics. As product initiatives, we rolled out the “Dera Uma Series” and “World Cuisine Series.” These initiatives matched the purchasing trends of “new family” customers and led to an improvement in the gross profit margin.」

「In the tenant business, in addition to opening 2 new eashion Western-style prepared-food stores, we took on a new challenge to strengthen the business by opening 3 Re'z deli comprehensive prepared-food stores, which provide valuable products emphasizing affordability in line with the customer base, and 1 Torikara Goten specialty fried-chicken store focused on the texture and flavor of its fried chicken.」

「At the converted stores, we rolled out the new Re'z deli brand at 4 stores. Based on the concepts of “providing products at satisfactory, affordable prices,” “providing a sense of seasonality” and “providing deliciousness,” we advanced a store strategy tailored to the customer base and the provision of valuable products emphasizing affordability as well as our commitment to taste.」

「In store expansion, we rolled out the new brand “Re'z deli” at 4 dual-branded, format-converted “MEGA Don Quijote UNY” stores operated by UNY and Don Quijote. In addition to our commitment to taste, we pursued a store strategy suited to customer needs by providing value-oriented products that offer a strong sense of affordability.」

「In the tenant business, in addition to opening 2 Western-style prepared-food stores and 2 comprehensive prepared-food stores, we opened 21 converted stores under formats such as the dual-branded “MEGA Don Quijote UNY” stores operated by Don Quijote and Uny, converted from Apita and Piago stores, for a total of 25 new stores. At the converted stores, as in-store competition increased and the customer mix changed following the conversions, we focused on establishing product policies and store operations suited to the environment and pursued flexible responses.」

「In terms of store expansion, we opened 6 new converted stores during the third quarter accounting period, converting Apita and Piago stores into dual-branded stores such as “MEGA Don Quijote UNY” operated by Don Quijote and Uny, and worked to establish product policies and store operations suited to new markets.」

「In the tenant business, in addition to opening 2 Western-style prepared-food stores and 1 comprehensive prepared-food store, we opened 11 converted stores under formats such as the dual-branded “MEGA Don Quijote UNY” stores operated by Don Quijote and Uny, converted from Apita and Piago stores, for a total of 14 new stores. At the converted stores, as in-store competition increased and the customer mix changed following the conversions, we made establishing product policies and store operations suited to each store environment an urgent priority.」

「As Apita and Piago stores are scheduled to be converted into dual-branded stores combining Don Quijote's time-spending store format with Uny's expertise, we will establish a new business model based on experience at existing converted stores and work on product policies and store operations suited to each store environment, including sales-floor layouts, product assortments and product sizes.」

「Against this management backdrop, we worked as one Group to revitalize sales floors, strengthen product capabilities and improve manufacturing efficiency through personnel exchanges and information sharing within the Group.」

「Amid this business environment, we worked as one group to improve product quality, strengthen product capabilities and revitalize the entire sales floor through personnel exchanges and information sharing within the group.」

「Following the completion of the transition to a production system for the parent company's group, we reexamined the operating status of our tangible fixed assets. Since the equipment is expected to operate stably over the long term, we determined that changing the depreciation method from the declining-balance method to the straight-line method would more appropriately reflect actual usage at our company.」

「Going forward, our stance of continuing to open eashion stores outside Uny, mainly through the tenant business, will remain unchanged. In addition, we established the “Prepared Foods Project” as an organization jointly operated by us and Uny Co., Ltd. and have been working to reform Uny's entire sales floor. The organization was established because reforms must cover not only products but also the development of sales floors. We initially intend to put this into practice at remodeled Apita and Piago stores.」

「Against this management backdrop, we became a subsidiary of Uny FamilyMart Holdings Co., Ltd. on 20 July 2017 and worked to contribute to further development by jointly implementing reforms to sales floors and products in the prepared-foods sector for which we are responsible.」

「Going forward, we will work to contribute to the Group's further development by sharing our expertise in the prepared-foods sector and jointly implementing reforms to sales floors and products.」