ANNUAL REPORT 2021

1

TABLE OF CONTENTS

01

02

04

CORPORATE

AT

OUR

PROFILE

A GLANCE

BRANDS

07

08

11

OUR

CHAIRMAN'S

FINANCIAL

NETWORK

MESSAGE

HIGHLIGHTS

15

19

20

OPERATING AND

CORPORATE

BOARD OF

FINANCIAL REVIEW

STRUCTURE

DIRECTORS

22

24

25

KEY

CORPORATE

SUSTAINABILITY

MANAGEMENT

INFORMATION

REPORT

This annual report has been reviewed by the Company's sponsor, CIMB Bank Berhad, Singapore Branch ("Sponsor") in accordance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist. This annual report has not been examined or approved by the SGX-ST and the SGX- ST assumes no responsibility for the contents of this annual report, including the correctness of any of the statements or opinions made or reports contained in this annual report. The contact person for the Sponsor is Ms Tan Cher Ting, Director, Investment Banking, CIMB Bank Berhad, Singapore Branch, at 50 Raffles Place, #09-01 Singapore Land Tower, Singapore 048623, Telephone: +65 6337 5115.

CORPORATE PROFILE

Established in Singapore in 1997 and listed on the Catalist Board of the Singapore Exchange Securities Trading Limited in February 2009, Japan Foods Holding Ltd ("Japan Foods") is one of the leading Japanese restaurant chains in Singapore. Constantly evolving with changing consumer tastes, Japan Foods has successfully expanded its restaurant portfolio to encompass both franchised and self-developed Japanese- concept brands. To widen its customer reach, the Group launched its first Japanese Halal concept restaurant called "Tokyo Shokudo" in 2020.

Regionally, the Group's network extends beyond Singapore to include a restaurant in Malaysia under a sub-franchise agreement and restaurants in Hong Kong, China and Indonesia operated by associated companies.

Japan Foods also has a joint venture company with Minor Food Group (Singapore) Pte Ltd ("Minor Singapore") to conduct the business of franchising and operating existing restaurant brands owned by the Group and Minor Singapore in Thailand, Japan and the People's Republic of China. In 2020, the parties broadened its partnership to jointly launch a Japanese pizza concept in Singapore called "Pizzakaya".

For its efforts in corporate governance, Japan Foods was named the "Most Transparent Company (Catalist)" at the 17th SIAS Investors' Choice Awards in 2016 and also awarded the "Transparency Award - SMEs" at the 18th SIAS Investors' Choice Awards 2017. In July 2018, the Group received the "Best Managed Board Award (Gold)" at the Singapore Corporate Awards 2018 and in September 2018, it was named Runner-Up in the "Most Transparent Company - Hotel / Restaurant" award category at the 19th SIAS Investors' Choice Awards 2018.

6 SELF-DEVELOPED BRANDS

10 FRANCHISED BRANDS FROM JAPAN

RAMEN HOUSE

1 FRANCHISE BRAND FROM MALAYSIA

ANNUAL REPORT 2021

01

AT A GLANCE

OUR NETWORK AND OPERATIONS

(As at 31 March 2021)

50

Self-Operated Restaurants

1

Restaurant in Singapore operated by

joint venture company

1

Central Kitchen at Kampong Ampat,

Singapore

20

Outlets in China, Hong Kong and

Indonesia through Associated

Companies & 1 Sub-Franchised

Outlet in Malaysia

OUR FOUR-PRONGED STRATEGY

DEVELOPMENT OF

COST & QUALITY

PRUDENT PORTFOLIO

OVERSEAS

NEW CONCEPTS

CONTROL

MANAGEMENT

EXPANSION

• Explore compelling

•

Improve economies

•

Practise good

• Grow via strategic

new franchise

of scale and central

and prudent

investments such

brands and establish

kitchen and bulk

management of

as acquisitions, joint

self-developed

purchase

our Singapore and

ventures or through

brands

overseas restaurant

partnerships

•

Improve operational

and brand portfolios

efficiency via

streamlining of

•

Close/convert

work processes and

underperforming

technology

outlets to drive higher

same store sales

JAPAN FOODS HOLDING LTD.

02

AT A GLANCE

OUR FOCUS ON SHAREHOLDERS' VALUE

We are focused on growing long-term shareholders' value and we have been consistently rewarding shareholders with cash dividends since FY2009.

Our total dividend payment in respect of FY2021 will be 2.5 Singapore cents per share, comprising the interim dividend of 0.75 Singapore cent per share already paid in December 2020 and the proposed final dividend of 1.75 Singapore cents per share. This represented a total dividend payout of 120.1%

of our Group's net profit in FY2021, which is higher than our previous dividend policy1 to distribute not less than 50% of our consolidated net profits attributable to shareholders annually.

Japan Foods will be revising its dividend policy1 to distribute at least 100.0% of net profit attributable to equity holders of the Company annually, up from 50.0% previously. This will be applicable from the financial year ending 31 March 2022.

Dividend History

DIVIDEND PER SHARE (SINGAPORE CENTS)

DIVIDEND PAYOUT RATIO (%)

3.00

300%

2.50

250%

0.50

214.0%

2.00

200%

0.60

1.50

150%

120.1%

1.00

1.00

1.27

1.25

1.25

1.30

1.10

0.25

1.75

1.00

0.40

0.70

45.0%

74.6%

92.2%

74.6%

63.1%

98.9%

100%

0.50

30.0%

53.2%

50%

31.0%

0.00

0.40

0.35

0.90

1.10

0.73

0.75

0.75

0.80

0.80

1.00

0.75

0%

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

Shareholders' Equity

Interim

Final

Special

Payout Ratio

S$' MILLION

40

30.6

30.9

31.6

34

33.8

31.4

33.4

29.4

30

25.0

20.5

17.5

20

10

0

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

  1. The Group's dividend policy shall be subject to the Group's business requirements and other relevant considerations and barring unforeseen circumstances.
    The actual dividend pay-out ratio will depend on the Group's operating results, financial conditions such as cash position and retained earnings, other cash requirements including capital expenditure, restrictions on payment of dividends imposed on the Group by financing arrangements (if any) and other factors deemed relevant by the Directors.

ANNUAL REPORT 2021

03

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Japan Foods Holding Ltd. published this content on 06 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 July 2021 23:41:02 UTC.