Investment in Factory Capacity Expansion and New Store Openings

「The Company added production lines at its own factories and pursued further productivity improvements and cost reductions.」

「During the consolidated fiscal year, the Food Business carried out construction of a new Kyushu Plant. In the Food Service Business, it opened 8 new domestic outlets in the Osaka Ohsho format, 3 in the ramen format, 3 in the bakery and café format and 4 in other formats, as well as 1 overseas outlet in other formats. As a result, total capital expenditures for the consolidated fiscal year amounted to ¥5,487 million.」

「During the consolidated fiscal year, the Food Business carried out restoration work at the Kanto No. 3 Plant. In the Food Service Business, it opened 13 new domestic outlets in the Osaka Ohsho format, 1 in the ramen format and 1 in other formats, as well as 1 overseas outlet in the Osaka Ohsho format. As a result, total capital expenditures for the consolidated fiscal year amounted to ¥5,344 million.」

「Cash used in investing activities was ¥2,247 million. The main factor was expenditure on the acquisition of property, plant and equipment.」

「The Company will construct the Kanto Logistics Base (KLB) to help contain logistics and other costs. In addition, with the aim of strengthening its production system in western Japan, it acquired preferential negotiating rights for Lot G in the Sakuragi District of the Miyakonojo Interchange Industrial Park, with a site area of 8,259.88 m². The Company will use the site in Miyakonojo, Miyazaki Prefecture, to build a new plant as an additional supply base for western Japan, with operations targeted to begin in 2026.」

「Cash used in investing activities was ¥1,425 million. The main factor was expenditure on the acquisition of property, plant and equipment.」

「At the production plants, which are the core of the Group's manufacturing operations, the fried gyoza production line at the newly built Kanto No. 3 Plant, among the largest and fastest in Japan, began operating as planned. As raw material, logistics and energy costs continued to rise, the Group worked to further improve productivity and efficiency.」

「株式会社イートアンドフーズ Kanto No. 3 Plant Itakura, Ora District, Gunma Prefecture Food Business Food ingredient processing November 2022」

「Cash used in investing activities was ¥1,758 million. The main factor was expenditure on the acquisition of property, plant and equipment.」

「The Kanto No. 3 Plant is scheduled for completion and start-up in October 2022, with annual production volume expected to increase by approximately 20%.」

「The Company's manufacturing plants, including the Kanto No. 1 Plant and Kanto No. 2 Plant in Itakura, Ora District, Gunma Prefecture, which are at the core of the Group's operations, have achieved further efficiency and labor savings through the active use of AI and robotics. The Company plans to build the Kanto No. 3 Plant on land adjacent to the Kanto No. 2 Plant to expand production facilities and meet rising demand for core products such as Osaka Ohsho Hanetsuki Gyoza.」

「During the current consolidated fiscal year, we completed construction of the Second Kanto Factory in November 2019, installed state-of-the-art equipment incorporating AI and robotics to enhance safety, reduced manual labor, and secured sufficient production capacity to accommodate future increases in demand.」

「In November, we completed construction of the Second Kanto Factory on land adjacent to the existing factory in Gunma Prefecture and established a production system capable of significantly more efficient production than before, using the latest equipment with extensive AI technology and robotics.」

「We plan to begin operations at the Second Kanto Factory in the second half of the current fiscal year and establish a more efficient production system using the latest equipment.」

「We are also preparing to begin operations at the New Kanto Factory in December 2019. Each business, brand and format is returning to the starting point for its products and services, while working to further expand sales of products manufactured in-house by strengthening core products and creating hit products.」

「For the New Kanto Plant in Itakura, Ora District, Gunma Prefecture, the planned investment was ¥3,500 million, the amount already paid was ¥992 million, funding was to come from capital raised and borrowings, construction was scheduled to start in November 2018 and be completed in October 2019, and production capacity after completion was expected to be 740 mt per month.」

「In the production business, which is the core of our unique, unparalleled business model as a full-line food manufacturer, we began construction of the New Kanto Factory on land adjacent to the existing Kanto Factory to further expand frozen-food production capacity.」

「In the production business, which is the core of our unique, unparalleled business model as a full-line food manufacturer, we undertook fundamental enhancements aimed at expanding production capacity and improving business efficiency, including logistics. We began construction of a new factory on land adjacent to the existing Kanto Factory to further expand frozen-food production capacity, proceeded with construction of a new cold-storage building in preparation for higher logistics costs, and began in-house production of gyoza sauce.」

「The Company plans to allocate all funds from the public offering and third-party allotment to capital expenditure for construction of the New Kanto Plant during the fiscal year ending March 2020.」

「The Company has grown as a unique business-model company focused on its production business and maximizing synergies among its food products and food-service businesses. The Kanto Plant in Itakura, Ora District, Gunma Prefecture, one of the manufacturing facilities at the core of this business, has expanded and strengthened its production capacity since commencing operations in October 2012. The Company now plans to build a new plant on land adjacent to the existing facility to expand production capacity and meet rising demand for its core products, including Osaka Ohsho Hanetsuki Gyoza and Osaka Ohsho Purumochi Suigyoza. It will also actively use AI and robotics to reduce labor requirements, pursue greater efficiency and productivity than at its existing plants, and introduce new technologies that will support future growth, while pursuing higher quality and safety alongside low-cost operations.」

「Cash used in investing activities was ¥915 million, compared with ¥969 million of expenditure in the same quarter of the previous year. This was primarily due to higher expenditure on the acquisition of property, plant and equipment.」

「During the fiscal year, the Company newly acquired machinery and equipment in connection with the expansion of freezing facilities at the Kanto Plant and opened 4 Osaka Ohsho stores, 5 Roast Beef Abura Soba Beast stores, 8 café-bakery format stores, and 2 other-format stores. Total capital expenditure in connection with these activities was ¥1,918 million.」

「During the fiscal year, the Company newly acquired machinery and equipment in connection with the expansion of freezing facilities at the Kanto Plant and opened 4 Osaka Ohsho stores, 2 Taiyo no Tomato Men stores, 1 new-format ramen store, and 9 other new-format stores. Total capital expenditure in connection with these activities was ¥1,274 million.」