Gift : Results Briefing Materials for the Cumulative Second Quarter of the Fiscal Year Ending October 31, 2022

GIFT HOLDINGS INC. Securities Code 9279

Results Briefing Materials for the Cumulative Second Quarter

of the Fiscal Year Ending October 31, 2022

IR website

https://www.gift-group.co.jp/english/

The opinions and forecasts contained in these materials are the judgments of the Company at the time of preparation of the materials, and do not guarantee the accuracy of the information therein.

Actual performance and results may differ significantly due to changes in a variety of factors.

Table of contents

1 | Financial Highlights for the Cumulative Second Quarter

of the Fiscal Year Ending October 31, 2022

2 | Overview of Financial Results for the Cumulative Second Quarter

of the Fiscal Year Ending October 31, 2022

3 | Initiatives in the Second Half of the Fiscal Year Ending October 31, 2022

4 | Forecasts for the Fiscal Year Ending October 31, 2022 (figures unchanged)

5 | Reference Materials: Company Overview

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1 | Financial Highlights for the Cumulative Second Quarter of the Fiscal Year Ending October 31, 2022

Copyright 2022 GIFT HOLDINGS INC. All Rights Reserved.

Financial highlights for the cumulative second quarter of the fiscal year ending October 31, 2022

Net sales	Operating profit	Ordinary profit
7,891 million yen	773 million yen	1,197 million yen
YoY: +25.2%	%	YoY: +116.3%
YoY: +152.6

Overview of Financial Results for the Cumulative Second Quarter

Operating profit was up substantially owing to increased profitability, despite shortened business hours from January to March. In addition, record-highordinary profit was achieved owing to subsidies for cooperation from the previous year.

We also secured subsidies for cooperation for the shortened business hours from January to March.

Improvement in profitability

Implementation of price

revisions

Continuation of aggressive

store opening strategy

Improved man-hourproductivity and profitability through the implementation of 3 reforms (improvement of products, store operations, and logistics).

Implemented price revisions at roadside stores.

Continued to open stores near train stations in anticipation of a recovery in demand from inbound tourism and influx of people to business districts and downtown areas. These will be the busy stores of the future.

Copyright 2022 GIFT HOLDINGS INC. All Rights Reserved.

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Key indicators for the cumulative second quarter of the fiscal year ending October 31, 2022

Growth and Profitability	YoY Change in Sales of
Company-owned Stores

Sales growth

All company-owned

25.2%

stores in Japan

137.8%

(Annual goal: 20.0%)

Operating profit

Ordinary profit

Existing company-

margin

margin

owned stores in Japan

9.8%

15.2%

112.3%

(Annual goal: 11.8%)

(Annual goal: 114.4%)

Man-hour Productivity

Stores Opened in the Period

(company-owned stores)

Recruitment and Retention

Company-owned stores

Net sales per man-hour

Hiring employees

10 stores

5,987 yen

Newly hired 69 mid-career employees.

51 new graduates joined.

(Annual goal: 36 stores)

(Same period of the previous year: 5,561 yen)

Produced stores

Labor cost rate

Retirement rate

24 stores

26.3%

22.2%

(Annual goal: net increase of 48 stores)

(Same period of the previous year: 27.1%)

(Same period of the previous year: 16.2%)

*For details of brands and store types, please refer to "List of brands of company-owned stores" on the page 33 and "Business details" on the page 34, respectively.

Copyright 2022 GIFT HOLDINGS INC. All Rights Reserved.

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