2015 Pres English PDF

HUB Co., Ltd.
Financial Results for the Fiscal

Year ended February 2015
Corporate Presentation
HUB CO., LTD.
Financial
Results for
FY2/15
Business
Forecast for
FY2/16
Progress of
Medium-Term
Management Plan
HUB CO., LTD. Youll never walk alone.
FY2/15 Management Policy
Motion
Take initiative as a professional by
clarifying our role and responsibilities
to gain a foothold
Highlights
Results improved steadily.
Sales and ordinary income achieved the plan

Net sales 9,168 million yen (up101.9% vs. plan)
Ordinary income 655 million yen (up 109.2% vs. plan)
Existing-store sales up 103.8% YoY

Membership exceeded 200,000 people
Opened 3 new restaurants (Initial plan 4 restaurants)
Measures for consumption tax hike

Soccer event
Business Environment
Harsh business environment continues while there was a slight improvement in the whole market
Changes in sales of HUB (existing-stores) and pub and beer hall (market)
representing fiscal 2000 as 100
101.9
125.0
106.3
104.2
115.0
106.1
101.6
105.0
95.0
103.7
97.4
97.0
100.0
93.9
97.8
103.0
100.5
125.9
102.4
98.8
Achieved 100% of YoY sales

for 5 consecutive years!
96.5
95.0
99.5
85.0
75.0
103.8
100.5
100.6
96.9
99.7
95.4
98.3
99.1
103.2
98.5
79.1
HUB (existing-store)
Pub/beer hall (market)
65.0
SourceFood Safety and Security Foundation
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201
FY2/15 Sales of Existing Stores YoY

Domestic pub industrys situation remains tough
HUB
* Figures in ( ) are numbers excluding extraordinary factors such as effect of events and advantage and disadvantage due to the day of week
Mar.
Apr.
May
Jun.
2012
133.1
104.9
105.4
115.5
100.4
114.3
2013
109.0
103.2
104.6
96.8
101.4
94.8
103.9
106.8
110.9
(102.4)
(102.1)
(102.2)
(101.8)
2014
Jul.
Aug. Sep.
Jan.
Feb.
Fullyear
Oct.
Nov.
Dec.
102.3
99.2
102.2
99.2
102.4
104.0
106.3
94.9
98.5
99.9
106.0
104.5
107.6
96.5
101.9
102.6
101.3
102.3
108.0
102.8
101.3
106.0
107.0
103.8
(100.5)
(103.2)
(101.0)
(104.5)
(102.4)
(100.3)
(102.0)
(101.9)
(102.0)
Consumption
tax hike
Industry avg.
Mar.
Apr.
May
Jun.
Jul.
Aug. Sep.
2012
126.5
103.0
101.0
100.6
94.8
99.8
2013
99.0
97.9
100.4
97.9
98.0
2014
96.0
100.3
100.2
95.2
97.6
Fullyear
Oct.
Nov.
Dec.
Jan.
Feb.
99.4
95.9
98.6
95.8
97.0
97.8
100.8
99.2
96.2
94.6
99.7
98.6
99.9
91.6
97.7
98.9
99.2
101.4
98.6
97.8
98.3
105.5
99.1
Reference: Average number of 13 listed companies of restaurant (pub) industry (investigation by HUB from each companys website)
Number of card members exceeded 200,000

Total number of members are 205,624 and increasing steadily
Person
220,000
170,000
31.1
33.0
32.2
28.8
HUB members
Pct. of net sales
membership
membership
37.7 37.6
7,990
14,535
30.0
16,260
25.0
11,456
70,000
85,190 95,082
79,263
69,222
35.0
17,563
29.1
25.4
39.8 40.0
39.1
18,480
33.3
3,432
38.3
35.0
82 members
Pct. of net sales
120,000
35.0
33.3
37.3
36.6
107,767 119,045
136,775
154,679
170,819
187,144
20.0
15.0
10.0
20,000
5.0
FY11 1H
FY12 2H
FY12 1H
FY12 2H
FY13 1H
FY13 2H
FY14 1H
FY14 2H
FY15 1H
FY15 2H
0.0
-30,000
Newly opened 3 restaurants renovated 1 restaurant

Opened 2 large-scale restaurants, although the number of new restaurant openings did not reach the plan of 4 restaurants
New openings
Jun. 2014
HUB Shinjuku Kuyakushodori restaurant
Sep. 2014
HUB Sendai Ichibancho 4-chome restaurant
HUB Shinjuku
Kuyakushodori
restaurant
294.21
HUB Sendai Ichibancho

4-chome restaurant
Nov. 2014
HUB Shibuya Center-gai restaurant
125.62
Renovated
Dec. 2014
HUB Shinjuku Nishiguchi O-guard
restraurant
HUB Shibuya Centergai restaurant
231.4
HUB Shinjuku Nishiguchi

O-guard restraurant
119.01
8
Closed 3 restaurants
Closed 3 restaurants due to rebuilding
Apr. 2014 Closed Shinjuku Yasukunidori restaurant

Operated for 13 years
Reopening plan Undecided
Jan. 2015 Closed Ueno restaurant

Shinjuku Yasukunidori restaurant
Reopening planOctober 1, 2016
Jan. 2015 Kyoto Kyogeki restaurant

Reopening plan Undecided
Ueno restaurant
Kyoto Kyogeki restaurant
Effect of Consumption Tax Hike

The number of customers increased steadily even after the consumption tax hike
HUB has passed on only the 3% Consumption Tax hike to customers in the form of higher prices at a time when many
competitors started reviewing menu prices to take advantage of the tax hike to factor in soaring raw material prices
The number of customers at existing-stores YoY
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
HUB
104.1
107.6
103.7
104.6
102.3
106.0
108.7
104.0
101.7
108.1
109.8
Other
companies
avg.
99.8
99.3
94.9
96.9
97.8
98.7
100.0
97.9
97.2
97.8
105.6
Consumption tax hike
Average customer spend at existing-stores YoY
Apr.
May
Jun.
HUB
99.9
99.2
106.9
Other
companies
avg.
100.1
100.5
99.9
Jul.
Aug.
Sep.
98.0
98.9
96.5
99.4
98.9
99.6
98.0
97.5
100.4
100.7
100.1
100.9
100.2
100.2
100.1
99.6
Oct.
Nov.
Dec.
Jan.
Feb.
Source: Average of listed 13 companies in the restaurant industry (investigated by HUB from each companies website)
10
FY2/15 Summary of Operating Results: P/L

Million yen
FY2/14
Plan
FY2/15
actual
Net sales
8,478
9,000
9,168
108.1%
101.9%
Cost of sales
2,316
2,520
108.8%
+0.2P
109.7%
+0.9P
93.6%
108.9%
1.1P
+0.5P
92.6%
109.2%
1.2P
+0.4P
89.2%
105.8%
12.49 yen
+5.54 yen
0 yen
0 yen
27.3
Cost rate
SG&A expenses
5,502
64.9
SG&A expense ratio

Operating income
703
Net income
Net income per
share*
Dividends*
No. of restaurants
6,034
65.8%
604
707
Ordinary income
margin
27.5
8.3
Operating margin
Ordinary income
658
6.7
600
8.3
7.2
655
6.7
7.1
427
360
381
113.97 yen
95.94 yen
101.48 yen
28 yen
28 yen
28 yen
YoY
Vs. plan
*HUB conducted a 100-for-1 stock split and adopted a unit share system which sets a share-trading unit as 100 shares effective March 1, 2015. Accordingly, net
income per share and dividends are presented assuming that the stock split was conducted at the beginning of the previous fiscal year.
11
FY2/15 Ordinary Income YoY

Effect of restaurant
openings in FY2/15
42 million
Increase in cost
due to
maintenance of
existing
restaurants
64 million
openings in FY2/14
+120 million
Increase in
personnel
expenses
121 million
Other
+13 million
Closing due to
rebuilding
102 million
Increase in profit due to
increased existing-store sales
+159 million
Increased cost
rate 15 million
FY2/14
FY2/15
Ordinary income
707 million
Ordinary income
655 million
12
FY2/15 Summary of Operating Results: B/S, CF

BS
Current assets
Total fixed assets
Total
Current liabilities
FY2/14
1,658
2,644
4,302
FY2/15
2,016
2,678
4,695
Difference
CF
+358
Cash flows from

operating activities
768
964
Cash flows from

investing activities
377
346
Cash flows from

financing activities
250
277
Cash and cash

equivalents at end of
year
1,303
1,644
+34
+393
1,147
1,375
+228
676
566
110
Total liabilities
1,823
1,941
+118
Total net assets
2,478
2,753
+275
Total
4,302
4,695
+393
Fixed liabilities
FY2/14
Million yen
FY2/15
Due to accrued consumption tax

+110
Net assetsNet income/Dividend paid

+381
105
13
Financial Results
for FY2/15
Business
Forecast for
FY2/16
Progress of
Medium-Term
Management Plan
14
Assumptions for forecast FY2/16 Management policy

Assumptions for forecast
Japans economy is showing gradual recover trend. However, the situation remains unpredictable because
prospect of consumer spending is still unclear, and there are concerns about pressure on profits from
difficulty in recruitment and soar in raw material prices
FY2/16 Management policy
People
To generate the great force, promote to improve individual skills and bring it together
15
TOPICS 2015
35 years since the establishment in1980
35th anniversary
Mar.1980
Opened HUB Sannomiya restaurant

as the first restaurant
Closed in 1986
Aug. 1980 Opened HUB

Roppongi restaurant as the
second restaurant
Current HUB Roppongi restaurant

The oldest extant restaurant
Reopened HUB Roppongi restaurant

as the memorial restaurant
New corner displaying the history of HUB
Sports event UK rugby
16
FY2/16 Business Forecast

Million yen
Net sales
Operating income
FY2/15
actual
FY2/16
forecast
YoY
9,168
9,400
102.5
658
695
105.6
Operating margin
Ordinary income
655
Ordinary income margin

Net income
7.4%
7.2
690
105.3
7.3%
7.1
+0.2P
+0.2P
381
410
107.6
101.48 yen
109.20 yen
+7.72 yen
Dividend
28 yen
28 yen
0 yen
Existing-store sales YoY
103.8%
100.0
3.8P
New restaurants
+4
Closing due to rebuilding
464
530
114.2
Net income per share
Capital investment
*HUB conducted a 100-for-1 stock split and adopted a unit share system which sets a share-trading unit as 100 shares effective March 1, 2015. Accordingly, net
income per share and dividends are presented assuming that the stock split was conducted at the beginning of the previous fiscal year.
17
FY2/15 Ordinary income YoY

openings in FY2/16
56 million
Decrease in cost
for maintenance
of existing
restaurants
+48 million
Effect of
restaurant
openings in
FY2/15
+164 million
Closing due to rebuilding

127 million
Increase in profit due

to increased
existing-store sales
+8million
Decrease in
depreciation cost
+40 million
Cooperation money from

manufacturers etc.
+77 million
Increase in
personnel Increase in raw
expenses material cost
95 million 24 million
FY2/16
FY2/15
Ordinary income (forecast)

690 million
Ordinary income
655 million
18
Financial Results
for FY2/15
Business Forecast
for FY2/16
Progress of
Medium-Term
Management
Plan
19
Business environment and issues

Business environment
Restaurant industry
Consumer
Pressure on household
finance due to
consumption tax increase
Rise in prices of
consumer goods
Consciousness on
defending livelihoods due
to unclear outlook
Operate various types of

restaurants
Business diversification
Overseas development
Competition heats up and goes beyond
business sectors and business formats
New store openings slow down as
construction costs surge and labor
shortages surface
Business model cycle shortens further
Differentiation strategies
Difficulty in recruitment
due to labor shortage/
rise in labor cost
After a brief period of recovery from 2013,

negative trends resurface as customer
traffic falls
Measures by companies
Expansion
strategies
Soar in raw material

prices
Current status of the restaurant industry
Differences in competitive power

among companies becomes evident
Operate only one type of restaurant
Further development of the

business
Unique service backed by

excellent human resources
Formation of local
communities
Pursuit of Valuable price
Be unique!
20
Medium-term management policy (FY2/15 through FY2/17)

Basic policy and outline of the strategies
Basic policy
Recruit and train powerful workforces with a strong dedication to our corporate philosophy
(Build a strong foundation capable of running a 100-store network)
Acquire human resources
Priority issue 2
Conduct renovation and maintenance of

existing restaurants
Priority issue 3
Create value of menu items
Outline of strategies
Priority issue 1
21
Priority issue 1Acquire human resources

As the restaurant network reaches 100, strengthen recruiting activities to hire the
people who are best suited to accomplish strategic objectives. In addition, provide
employees with the best compensation and benefits in the industry to become an
even more attractive place to work
FY2/15
FY2/16
Difficulty in recruitment backed by

economic recovery
Increasing difficulty in recruiting
Ratio of personnel expenses

FY2/14 31.9
FY2/15 32.9
Recruitment of crewsHourly wages are in the

increasing trend
Recruitment of corporate members Shorten the
recruitment period by three months by leveraging
the companys ethics charter
Implemented measures
Crew Up hourly wage
Acquired necessary crew
Corporate memberRevised the salary
Achieve the highest wage levels in the
industry
Measure
Establish the Recruiting and Training Division
Recruit highly capable human resources by
leveraging a team specially established for
recruiting and training new employees
22
Priority issue 2 : Renovation and maintenance of existing restaurants

Do maintenance of existing restaurants that werent previously done
Build a mechanism for regular maintenance
FY2/15
Slow down new store openings in order to
achieve a 100-restaurant network by
assuring that existing restaurants are in
best condition. Focus on renovation and
refurbishing of existing restaurants
Renovation and refurbishing of existing
restaurants
Prioritize refurbishing of restaurants
more than ten years old
Renovated 18 restaurants
FY2/16
Renovation and maintenance

of existing restaurants
Do maintenance to restaurants
7 years to 9 years old
23
Restaurant opening plan

However decelerate its pace in the previous year, open restaurants at usual pace for FY2/16
Opened 7 restaurants
Maintain new store openings rate to about 10% of existing restaurants.
May 29, 2015

Jun. 2015
Jun. 2015
Oct. 2015
Nov. 2015
Dec. 2015
Jan. 2016
Umeda Chayamachi Applause restaurant

Shinyokohama restaurant (provisional title)
Kanto
Kansai/Chubu
Kansai/Chubu
Kanto
Kanto
24
Priority issue 3 Create value of menu items

Reduce purchase cost and improve the ability to procure to realize magazine price and develop killer menu
items creating even more attractive menu items
FY2/15
Soar in raw material prices

Maintain and reduce purchase cost
Cost rate
Plan 28.0
Actual 27.5
FY2/14 27.3
Develop killer menu items

Brush-up of existing menu items
Improve the quality of fish&chips
FY2/16
Raw material prices continue to rise
Maintain and reduce purchase cost
Cost rate
Target 27.0
Review procurement and renegotiate
supplier prices
Cooperation money from
manufacturers
Brush-up of magazine price menu items
Brush-up of existing menu items
Develop more menu items
Pursue Valuable price further
25
Summary
Million yen
Mid-term
management plan
FY2/15
Net sales
9,000
5,922
FL ratio
Ordinary
income
ratio
9,168
28.0
Cost rate
SG&A
ratio
FY2/15
actual
Mid-term
management plan
FY2/16
9,300
9,400
28.0
27.5
6,072
6,034
FY2/16
forecast
Mid-term
management plan
FY2/17
10,000
27.0
6,213
28.0
6,444
65.8
65.8
65.3
66.1
64.4
60.4
60.4
60.1
60.5
59.6
600
670
655
6.7
690
7.2
7.1
800
7.3
8.0
Net
income
360
381
400
410
480
Dividend*
28 yen
28 yen
28 yen
28 yen
31 yen
*HUB conducted a 100-for-1 stock split effective March 1, 2015. Accordingly, dividend per share is presented assuming that the stock split was conducted at the
beginning of the previous fiscal year.
26
Thank you for your attention.
IR contact
Public Relations & Investor Relations Department, HUB Co., Ltd.
TEL: 03-3526-8690
E-mailir@pub-hub.com
27
Reference
Changes in business results

(Million yen)
(Million yen)
Build a base for 3 years
12,000
800
707
10,000
659
Net sales
8,000
560
7,586
6,402
6,000
5,620
Ordinary
income
4,000
2,000
2,318
2,567
2,797 3,016
97
100
275
241
700
8,478
600
10,000
500
9,400
9,168
400
300
200
205
143
12
354
3,265
192
739
800
4,306
3,811
1,829 2,021
6,811
4,989
655 690
900
158
144
167
83
Plan 100
0
28
Reference
FY2/16 - FY2/17 Restaurant openings plan

Open in Tokyo area, Kansai area and Nagoya
Kanto
Kansai
Nagoya
Sendai
Total
Existing
restaurant
70
10
85
FY2/16
4(-1)
91
FY2/17
4(+1)
100
(-1) is closing of HUB Shibuya second restaurant due to rebuilding

(+1) is reopening of HUB Ueno restaurant
Existing
restaurant
2015
2016
Existing
restaurant
Existing
restaurant
10
70
Existing
restaurant
2015 2016
2015
4(-1) 2016
4(+1)
29
Reference
Changes in dividends
While securing a certain amount of retained earnings to positively develop business and to prepare for
unforeseen business risk, total amount of dividend will be about 15% of ordinary income and a dividend
payout ratio of less than 50%.
35
30
26
20
28
15
15
11
11
Dividend
forecast
28
22
25
10
28
31
FY2/08
FY2/09
FY2/10
FY2/11
FY2/12
FY2/13
FY2/14
FY2/15
FY2/16
Plan
FY2/17
*HUB conducted a 100-for-1 stock split effective March 1, 2015. Accordingly, dividend per share and is presented assuming that the stock split was conducted at
every fiscal year.
30
Reference
Business of HUB
Corporate philosophy
To bring the British pub culture to Japan, we will operate an exciting
culture creation business that uses these pubs to give customers
memorable experiences.
Employees
Stable dividend
Sustainable growth
Achieve the highest wage levels in the industry

A workplace where one can work with confidence for a
long time (Turnover rate : 5%)
Customers
Shareholders
Local
Clients
Owners of
properties
A Community-Based store with deep roots the

local community (operate J-League support
restaurants)
Form local communities
Hire more handicapped persons
Stable business relationship

Long-term association (No store closures due to poor
business performance for the past 15 years)
31
Reference
Stock price chart (five years)

Closing price as of Apr. 13, 2015
Stock price
Market capitalization
1,850 yen,
6,947 million yen
32
Reference
Company Description/Shareholders Situation (as of end-Feb. 2015)
Company name
HUB Co., Ltd.
Head quarter
3-14-10 Sotokanda, Chiyoda-ku, Tokyo
Date of establishment
May 28, 1998
Date of listing
April 3, 2006
Representative
Tsuyoshi Ohta, president and CEO
Business Description
Operating the English pub chain business
Employees
251 temporary employees: 544
Number of shares issued
1,251,700 sharesincluding treasury stock

Number of shareholders762
Major shareholder
foundationMarch 1980
Distribution condition
by shareholders
ROYAL HOLDINGS CO LTD
32.84%
KUZE CO LTD
9.75
KAWACHIYA
9.59
STATE STREET BANK AND TRUST 505224
6.32
SCB(Hongkong) SACDBS VICKERS HONG KONG LTD
3.67
TOKAI TOKYO SECURITIES ASIA LTD
2.29
SHINICHI TAKANO
2.18
KENICHI KANESHIKA
2.13
HUB SHAREHOLDERS ASSOCIATION
1.66
The Master Trust Bank of Japan ,Ltd. (Trust account)
1.54
Financial
institutions
2%
Treasury
stock
1%
Foreign
corporations
19%
Domestic
corporations
51%
Individuals,
others
27%
33

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HUB Co., Ltd.

Financial Results for the Fiscal

HUB CO., LTD. Youll never walk alone.

FY2/15 Management Policy

HUB CO., LTD. Youll never walk alone.

Sales and ordinary income achieved the plan

Existing-store sales up 103.8% YoY

Measures for consumption tax hike

HUB CO., LTD. Youll never walk alone.

Achieved 100% of YoY sales

SourceFood Safety and Security Foundation

HUB CO., LTD. Youll never walk alone.

FY2/15 Sales of Existing Stores YoY

HUB CO., LTD. Youll never walk alone.

Number of card members exceeded 200,000

HUB CO., LTD. Youll never walk alone.

Newly opened 3 restaurants renovated 1 restaurant

HUB Sendai Ichibancho

HUB Shibuya Centergai restaurant

HUB Shinjuku Nishiguchi

HUB CO., LTD. Youll never walk alone.

Apr. 2014 Closed Shinjuku Yasukunidori restaurant

Jan. 2015 Closed Ueno restaurant

Shinjuku Yasukunidori restaurant

Reopening planOctober 1, 2016

Jan. 2015 Kyoto Kyogeki restaurant

HUB CO., LTD. Youll never walk alone.

Kyoto Kyogeki restaurant

Effect of Consumption Tax Hike

The number of customers at existing-stores YoY

Consumption tax hike

Average customer spend at existing-stores YoY

HUB CO., LTD. Youll never walk alone.

FY2/15 Summary of Operating Results: P/L

SG&A expense ratio

HUB CO., LTD. Youll never walk alone.

FY2/15 Ordinary Income YoY

HUB CO., LTD. Youll never walk alone.

FY2/15 Summary of Operating Results: B/S, CF

Cash flows from

Cash flows from

Cash flows from

Cash and cash

Total net assets

Due to accrued consumption tax

Net assetsNet income/Dividend paid

HUB CO., LTD. Youll never walk alone.

HUB CO., LTD. Youll never walk alone.

Assumptions for forecast FY2/16 Management policy

FY2/16 Management policy

HUB CO., LTD. Youll never walk alone.

Opened HUB Sannomiya restaurant

Aug. 1980 Opened HUB

Current HUB Roppongi restaurant

Reopened HUB Roppongi restaurant

Sports event UK rugby

HUB CO., LTD. Youll never walk alone.

FY2/16 Business Forecast

Ordinary income margin

Existing-store sales YoY

Closing due to rebuilding

Net income per share