Publication of Q&A Regarding Inbound Business and Shareholder Benefit System

Horii Food Service Co., Ltd. (Headquarters: Mito City, Ibaraki Prefecture; Representative Director and President: Akihisa Fujita; hereinafter "the Company") has published a Q&A regarding future store opening strategies and the shareholder benefit system, focusing on the inbound-oriented format "Emperor Steak".
Against the backdrop of expanding demand from foreign visitors to Japan, this business format has been performing well, and we are planning to open 3 new stores in the fiscal year ending November 2026.

This Q&A primarily features contents based on questions received from our investors.

## About the Inbound Business

**Q: Emperor Steak seems to be doing well. Please tell us about the store opening plan for the inbound business format.**
A: For the fiscal year ending November 2026, we plan to open 3 stores. Currently, a store in Kyoto has been finalized, and we are scheduling its opening around early May.

**Q: Also, how many locations are there that can maintain the same level of customer attraction and high unit price as the Shinjuku store?**
A: In Tokyo alone, areas with many foreign visitors include Shibuya, Ginza, Asakusa, and Roppongi. Nationally, we believe there is plenty of room in places like Osaka, Kyoto, Fukuoka, and Hyogo.

**Q: I understand that the inbound-oriented business is performing well, but it has aspects that are easily influenced by exchange rates and geopolitical risks. Regarding this:**
**① To what extent do you plan to accelerate the store opening pace of these high-unit-price formats in the future?**
A: There are forecasts that foreign visitors to Japan will continue to increase, and we recognize that the supply side is insufficient, so we believe there is still much room left for opening new stores.

**② In the unlikely event that inbound demand sharply decreases, have you envisioned risk hedging measures, such as converting these stores for the domestic market?**
A: If it becomes a COVID-level crisis, we will make a separate judgment, but looking at our current stores, we judge that even a 20% decrease would have no impact.

**Q: Is there any impact from Japan-China relations?**
A: We have many foreign visitors from Western countries, so there is no impact at present. Our current customer base is 70% Western and 30% Southeast Asian. We would like to increase Chinese customers in the future, but currently, we are not being chosen by them.

**Q: Are there any advantages or disadvantages due to the current exchange rates?**
A: Currently, since our development is centered domestically and our ingredients are also primarily domestic, there are increases in material costs, but there are no major advantages or disadvantages.

**Q: What is the reason for the strong performance of the Emperor Steak business?**
A: We didn't do anything special; we made decisions after conducting thorough marketing. Within that, we are nurturing a format that is recognized by inbound tourists through "Kobe Beef" and "Experience".

**Q: The Emperor Steak Kyoto store is on the 3rd floor. Is there a chance of success?**
A: Based on the track record of our first store, we have recently recorded a reservation rate of 70%. For the Kyoto store, in addition to strengthening reservation pathways and establishing an experience-based operation, we judge there is a chance of success by advancing "destination-making," leveraging the value of the view from the 3rd floor and tourist pathways.