投資家の皆様へ | 株式会社サガミホールディングス

TOP MESSAGE 投資家の皆様へ

13 Nov. ,2018

Second Quarter Financial Results

While sales slightly increased in the second quarter of 2018, profits were slightly below that of the previous year due to the effect of increases in material and labor costs. It can be said that the economic conditions remain severe. In addition to the progression of the aging and declining population, the government has formally announced that the consumption tax will be raised from October 2019, which would increase the severity of the environment surrounding the dining-out industry. In order to combat this, we will take proactive actions to strengthen CIS (Customer Impressive Satisfaction) and EIS (Employee Impressive Satisfaction).

Change to a Holding Company Structure

Sagami Group has transferred its business structure to a holdings structure as of October 1, 2018. Sagami Chain has changed its name to Sagami Holdings Corporation and D.D.A Co., Ltd. has changed its name to Sagami Restaurants Corporation. The main reason to change to a holdings structure is for the “acceleration of the speed of decision making”. The management strategy functions will also be separated from the business operation functions and thus the company operations will be more efficiently pursued.
Our group management philosophy has been changed to the below following our transfer to the new organizational structure.


We contribute to the community through co-creating the delights of “Shoku (食)” (eating) and “Shoku (職)” (working)

-all for your smile and life of abundance -

Based on this new management philosophy, all employees of the group will work together as one for our continued growth.

Opening of SAGAMI Milano Centrale

In 2015, we participated in the Milan Expo, Japanese pavilion, and from 2016 to 2017 we conducted two test marketing cases in Milan. Following the success of the Expo and our test marketing, we opened our first restaurant in Europe, SAGAMI Milano Centrale on November 10th. The restaurant is located in front of Milano Central station, which is the second busiest station in Italy with the highest number of people getting on and getting off the train, and is thus a very convenient location.

Before the actual opening, an opening ceremony was held at the restaurant on November 3rd. Many people from the media as well as many other different industries attended the ceremony, and we felt the deep support and encouragement and have a strong resolve to make the restaurant one that would be loved by the community. There are very few Japanese noodle restaurants operated by Japanese companies in Italy, the home of pasta. As a restaurant offering authentic Japanese food and Nagoya meshi to the people of Milan, we will work hard to meet the expectations of all our guests.

Regarding our ESG Initiatives

We are proactively pursuing ESG initiatives for the promotion of CSV (Creating Shared Value).

With regard to Environment, we have changed to LED lighting for less CO2 emission and have experimentally introduced the use of LIMEX (a newly created limestone based material) in our menus, and promoted the use of “eco-chopsticks” to decrease garbage discharge.
With regard to Social, we have taken initiatives for the promotion of women’s participation and advancement, and have received recognition as the “Company where Aichi ladies shine”. As a restaurant company in the dining-out industry with headquarters in the Aichi prefecture, we are the first to receive such recognition.

With regard to Governance, we have gradually dissolved the Compensation Advisory Committee in order to strengthen governance, and instead established a nominating compensation advisory committee that has the additional function of being able to decide the appointment and dismissal of board members.

We will continue with our efforts with ESG and through such efforts, we will proactively contribute to helping solve the challenges of society.

IR Activities

For the promotion of dialogue between our company and our shareholders/ investors, we participated in the Nagoya Stock Exchange Expo held in July at the Fukiage Hall in Nagoya city. Although our time was limited, we were able to explain our current situation and our future strategies and receive valuable feedback and opinions from our shareholders and investors. In order to achieve our group vision as the “No. 1 Noodle Restaurant Company”, and to increase the Sagami brand recognition beyond the Chubu region, we will commit to continuing further IR activities.
In closing, we thank you and request for your continued support and encouragement in the years ahead.


Shuji Ito, President and COO

November 13, 2018

09 Aug. ,2018

First Quarter Financial Report


The business environment still remains severe due to continuing savings-oriented trends, surging food prices, and persisting difficulties in hiring. Amid such harsh conditions, however, sales have slightly increased over the past year. However, the rise in personnel costs, capital investment in equipment for new outlets, led to a decrease in profits, and we are working as a group to combat this.

New Openings of Sagami Restaurant

Sagami has opened 3 new outlets.
-April 27 (Friday)   Koshigaya Minami outlet  (134th outlet)  Koshigaya city, Saitama prefecture
-June 29 (Friday)  Tokai outlet  (135th outlet)   Tokai city, Aichi prefecture
-July 13 (Friday)  Toyohashi Hashira outlet   (136th outlet)  Toyohashi city, Aichi prefecture
These 3 outlets have rooms that cater to group dinners/ private parties for a capacity of 2-40 persons. They are universally accessible rooms equipped with multi-purpose bathrooms. There is a millstone placed at the entrance of the restaurant and guests can see the soba-making process. We plan to accelerate our outlet roll-out in the Chubu (central region of Japan’s Honshu island) and Kanto (Greater Tokyo Area and surrounding prefectures) regions.

The Franchise Business

D.D.A. Co. Ltd. opened a specialty tonkatsu restaurant, Katsutani, within APiTA shopping mall in Yokkaichi city, Mie prefecture. This is the model prototype within a commercial facility for future franchisees.
Ajino-Mingei Food Service Co., Ltd. entered the Ramen Championship match with Bubuka, a specialty ramen store, and finished 3rd place at the preliminary qualifying contest held in July. Bubuka will be competing in the finals in October and is preparing to recruit for franchisees at that time. We will be taking proactive action for the roll-out of the franchise operations.

Induction into the Tebasaki Summit Hall of Fame

The 5th Tebasaki (Chicken Wing) Summit 2018 was held from June 8 for 3 days at the Nagoya Hisaya Odori Park to which approximately 99,000 people attended. We have won the gold prize twice, and the Grand Prix once, and based on our past awards, we were inducted into the Hall of Fame and were welcomed as a special guest to this years’ summit. With pride in Nagoya specialty foods, we will continue to improve our brand going forward.

General Meeting of Shareholders

On June 28 (Thursday), we held our Annual General Meeting of Shareholders at the Moriyama Bunka Shogekijo (Moriyama Cultural Playhouse) located in Moriyama ward, Nagoya city, Aichi prefecture. The 5 items on the agenda for this years’ meeting included the appropriation of surplus, amendments to the Articles of Incorporation, election of 9 directors, election of 1 corporate auditor, election of 1 substitute corporate auditor, and we received approval on all bills. We appreciate the support of all our shareholders. We now have 13 executive officers, of which 6 members are external officers (3 Board of Directors, 3 Auditors), raising the ratio of external officers from 36.3% to 46.1%. From October we will be transferring to a holding company structure, and by separating the management supervision and business execution, we will work to establish a more transparent management structure. At the Shareholders’ Meeting, we received many questions and opinions from a management perspective, such as regarding our company’s fund management situation, and this invaluable dialogue reaffirmed to us the immense support we continue to receive from our shareholders. Going forward, we will commit to undertaking further reforms to fulfill and exceed the expectations of our valued shareholders and customers.
In closing, we thank you and request for your continued support and encouragement in the years ahead.


Shuji Ito, President and COO
(August 9, 2018)

11 May ,2018

During the current fiscal year (April 1, 2017-March 31, 2018), the Japanese economy was on a gradual recovery, especially with improvements in the employment situation due to benefits from the expanding global economy, the continued economic reform measures implemented by the government, and the effects of the monetary easing policies introduced by the Bank of Japan.

With regard to the dining-out industry, the industry recorded monthly sales that exceeded the previous years’ sales for 19 consecutive months through March 2018. Despite the strong performance however, weakness was seen in consumption and consumers still continued to have a strong preference for low prices. Furthermore, the rise in personnel costs due to the shortage of workers and the rise in logistic costs led to a heightened competition within our brands and restaurants, and we continue to be challenged by the difficult economic and management conditions.

FY2017 Financial Results

The financial results of FY 2017 are as follows.

平成29年度の決算は以下の通りとなりました。

With regard to consolidated performance, sales, operating profit, ordinary income and net income, we exceeded the previous years’ results. One of the main reasons attributing to this is the strong and stable performance by Sagami and Ajino-Mingei. With regard to profits, our efforts to offer seasonal menus as well as our measures to conduct direct transactions with local producers led to high efficiencies for us to offset the rise in costs.

Efforts in FY2017

・New Openings of Sagami Restaurant after a 9-year hiatus
After opening Sagami Mizunami Chuo (Mizunami city, Gifu prefecture) in 2008, we were on a hiatus and refrained from opening new outlets. However, after seeing that all existing outlets were performing well, we decided to restart opening new outlets. Thus, as the end of March 2018, we have opened 3 new outlets in the Tokai region (area in central Japan comprising 5 prefectures: Yamanashi, Shizuoka, Aichi, Gifu, Mie): Seki Mago in October, Gifu Kitaisshiki in December and Toyokawa Ushikubo in March. We plan to accelerate the speed of our outlet openings in the Tokai and Kanto (Tokyo metropolitan) regions.
・Ajino-Mingei outlet sales exceed previous years’ sales for 50 consecutive months (as of end of April 2018)
The monthly sales of the existing Ajino-Mingei outlets of the Ajino-Mingei Food Service Co., Ltd. (Hisashi Ohnishi, President & CEO) which is one of our group companies, have exceeded the previous years’ sales by over 100% since March 2014. This can be attributed to incorporating “Nagoya Meshi menus”, a strength of Sagami, into Ajino-Mingei, as well as adopting new menus based on themes such as “delicious for the heart and body” which were very popular amongst our guests.
・Test Marketing in Milan, Italy
At the Milan Expo held in Milan in 2015, our booth at the Japanese pavilion was able to capture more guests than we had initially forecasted. The success at the Expo led us to conduct test marketing in Milan, the efforts of which were featured on a Japanese T.V. program called Mirai Seiki Jipangu, aired on January 8, 2018. Based on the results and success of our test marketing efforts, we would like to link it to the next step.

Our Efforts in 2018

・Acceleration in the speed of opening new outlets as the Sagami Group
After opening Sagami Mizunami Chuo (Mizunami city, Gifu prefecture) in 2008, we were on a hiatus and refrained from opening new outlets. However, after seeing that all existing outlets were performing well, we decided to restart opening new outlets. Thus, as the end of March 2018, we have opened 3 new outlets in the Tokai region (area in central Japan comprising 5 prefectures: Yamanashi, Shizuoka, Aichi, Gifu, Mie): Seki Mago in October, Gifu Kitaisshiki in December and Toyokawa Ushikubo in March. We plan to accelerate the speed of our outlet openings in the Tokai and Kanto (Tokyo metropolitan) regions.
・Franchise Business
The monthly sales of the existing Ajino-Mingei outlets of the Ajino-Mingei Food Service Co., Ltd. (Hisashi Ohnishi, President & CEO) which is one of our group companies, have exceeded the previous years’ sales by over 100% since March 2014. This can be attributed to incorporating “Nagoya Meshi menus”, a strength of Sagami, into Ajino-Mingei, as well as adopting new menus based on themes such as “delicious for the heart and body” which were very popular amongst our guests.
・Strengthening of Corporate Governance

Since 2012, Sagami group has been directing efforts on the management pillars of “strengthening the business base”, “improvement of profitability” and “promotion of growth strategy”. As a result, we have had good news such as moving out of the red into revenue surplus, opening new overseas outlets (especially in the ASEAN region), and also restarting the opening of Sagami restaurants.

On the other hand, the conditions surrounding the dining-out industry and our company have been increasing in severity. In order to respond to such severe conditions, in addition to our measures for ESG (Environment, Social, Governance), we are further strengthening our governance structure. In particular, we plan to welcome an external female director and external female auditor into our Board of Directors from this year to include female perspectives to our management. In addition, we plan to establish Sagami Holdings Company in October to separate the management strategy functions and business operation functions in order to accelerate the speed of our decision making and to increase the ratio of external board members.
We thank you and request for your continued support and encouragement as we move forward.

Shuji Ito, President & COO
May 11, 2018

09 Feb. ,2018

【Third Quarter Financial Report】

Our core brands Sagami and Ajino-Mingei have been performing strongly, and sales increased by 1.0% from the same period last year. We view that our efforts in offering seasonal menus using foods in season and implementing various sales promotion plans have been positively received by our customers and will draw on these efforts for our future strategies to further increase guest satisfaction.
Operating profits fell below that of last year, due to factors such as the rise in personnel expenses. In the domestic market, the shortage of labor is especially growing in the service industry and has even begun to affect our company, which has had a low employee turnover rate. Such severe conditions are projected to continue, but we are determined to move forward to optimize operations and retain our employees for future growth and improvement.

New Opening of Sagami

Last year on December 14, we opened Sagami Gifu Kitaisshiki, the 133rd Sagami outlet, in Gifu city, Gifu prefecture. The Sagami Seki Mago outlet which opened in the same year on October 28, has been performing extremely well with the number of guests exceeding our forecasts.
The 2 newly opened outlets have private rooms that allow for dinner meetings and banquets from 2-40 persons, and equipped with a multi-purpose accessible toilet. We also have a noodle-making facility with a millstone by the entrance and our guests can enjoy watching the noodle-making process.
The 2 newly opened outlets have private rooms that allow for dinner meetings and banquets from 2-40 persons, and equipped with a multi-purpose accessible toilet. We also have a noodle-making facility with a millstone by the entrance and our guests can enjoy watching the noodle-making process.

Promotional Tie-up Campaign with Idol Group “SKE48”

From December 1, 2017 to February 19, 2018, we collaborated in a promotional tie-up with an idol group, SKE48, which has deep roots in Aichi prefecture, the place of origin of the Sagami Group, and hosted a “Tebasaki (chicken wing) showdown” campaign. Customers who had purchased the Tebasaki were eligible to take part in a gift drawing to win SKE48 merchandise. During the campaign period, the outlets participating in this campaign competed against one another on the number of “salt flavor” and “tare (sauce) flavor” Tebasaki sold, and posted the number of sales on the homepage with frequent updates

It was the first time for us to conduct a promotional tie-up campaign with an idol group and by appealing to the fans and supporters of SKE48, we aimed to capture a new customer base.

Sagami Booth at Oedowaen

During the 4 days from November 23-26, 2017, Sagami Group participated in the “2nd Oedowaen” (Soba and Japanese sake exposition). This exposition was held at the event site of Yoyogi Park in Tokyo, and is the largest Soba and Sake exposition held in Japan. This was a perfect occasion for us to exhibit our vision as the “No.1 Noodle Restaurant Company”. We sold 9 items at our booth, including “2-colored Soba: Chakkiri and Dattan (Tartary) Soba” (a dish with green (green tea color) Soba and brown (Tartary buckwheat color) Soba).

Ajino-Mingei

The sales of the existing Ajino-Mingei outlets have exceeded that of last year (as of the end of January) for 47-months consecutively. With regard to the menu, we focused our attention on bringing forth seasonality in the “fair menu” which we believe was very well received by our guests.We are currently hosting a fair called the “Kyushu Aji Meguri Fair” (Kyushu Food Tasting Fair). We offer Motsu Nabe Udon (hot pot stew with offal and Udon) with Mentaiko (spicy cod roe) from Hakata, Unaju (broiled eel served over rice in a lunch box) using Unagi (eel) from Kagoshima, so please stop by should you be in the nearby vicinity.
Our Company’s vision is “500 outlets, sales of JPY40 billion, ordinary profits of JPY3 billion, FC ratio of 20%, and 10 overseas countries with our outlets” and we are committed towards an early achievement of this future vision. In closing, we thank you and request for your continued support and encouragement as we move forward.

Shuji Ito, President and COO
February 9, 2018

11 Nov. ,2017

Second Quarter Financial Report

The steady performance of our core brands, Sagami and Ajino-Mingei, has enabled our revenues to exceed that of the previous year. This has been achieved through sales promotion plans and seasonal menus which were positively received by our customers at Sagami, and through the success of our menu innovation and improved customer service at Ajino-Mingei.
The food service industry is faced with rising cost burdens and increasing personnel expenses caused by difficulties in hiring, and such severe economic conditions are projected to continue going forward. In midst of such conditions, however, we are strengthening our group management and making strides in improving our performance.

New Opening of Core Brand “Sagami” after a 9-year hiatus

On October 28, we opened Sagami Seki “Mago” outlet in Seki city, Gifu prefecture, after a 9-year hiatus in opening new outlets to focus on reform initiatives to deliver strong and sustainable profits. During the 2nd year of such reform initiatives in the fiscal year of 2012, all Sagami outlets achieved a revenue surplus at the outlet level, and we achieved a positive consolidated net income and resumed dividend payments for the first time in 5 years. In January 2014 of the following fiscal year, 55 Ajino-Mingei outlets joined the Sagami Group, all of which have also achieved a revenue surplus at the outlet level in the 2nd full year of reforms (2015 fiscal year).
Thereafter, in April 2016, 6 “Hamacho” outlets also joined the Sagami Group, of which 4 outlets have been rebranded into Sagami, and 2 outlets continue to operate as Hamacho. Concurrently with these expansion undertakings, 3 professionals joined our site development department to search for locations for new Sagami outlets. Thus, for the first time in 9 years, we opened the new outlet in Seki city.
Two new openings of Sagami are scheduled for this fiscal year, and the outlet roll-out plans are steadily moving forward. We plan to continue to expand our growth in areas we have designated as the key outlet opening areas, such as the Tokai region (central Japan region where Sagami’s HQ is located) and Tokyo metropolitan (or Kanto) region.

Opening of “Binmugi Celeo Hachioji”, small-scale Tenobe-Udon brand

On September 1, we opened Binmugi in the JR Hachioji station building Celeo. This is the second outlet of the brand, following the outlet in the food court of the “Karuizawa Prince Shopping Plaza”.
The Celeo outlet features 16 Udon (Japanese wheat noodle) dishes, double that of the Karuizawa outlet, and we will continue to pursue the innovative and unique texture of “Tenobe-Udon” (hand-stretched type Udon) as well as offer creative Udon dishes with particular insistence on ingredients and dashi (aromatic broth). Revenues have had strong performance in the 2 months after opening. We will continue to offer a wide array of unique dishes and create outlets that can be enjoyed by many customers.

Ajino-Mingei

Ajino-Mingei has received a lot of support from its customers, which has led to a performance exceeding that of the previous year (as of the end of October) for 44-months consecutively. Ajino-Mingei has had no new openings for the last 10 years, but a new outlet opening is scheduled for spring 2018. We have employed the reform examples of Sagami and have implemented changes in customer service and menu offerings, which have garnered favorable support from our customers. As an example of customer service reform, we have worked on “strengthening Omotenashi (Japanese hospitality)” by reflecting customers’ voices through the use of mystery shoppers.
With regard to examples of reform on the food-side, all outlets participated in sales contests, and in August we offered new menu items in collaboration with Fuefuki city, Yamanashi prefecture. Amongst them, the dessert menu using the very sweet “Shine Muscat” grapes was particularly popular.
From the end of September, we held the “Nagoya-Meshi” (specialty food from Nagoya area) fair which is one of our areas of specialty. Ajino-Mingei mainly operates its outlets in metropolitan areas. We will continue to implement reforms for the continued patronage by our customers, and we ask that in the case that you are in the close vicinity, to please drop by.

Change to Direct Import of U.S. Pork

From October 2017, we started importing U.S. pork directly from the world’s largest pork processing company. In April we executed a test import and after inspecting the local factory and monitoring the quality of the products, we entered into a direct contract. It is the usual practice in the food service industry to go through an intermediary trading company or wholesaler for the purchase of foreign food products. It is easier to control the quality of the products and also lower purchase costs through direct imports.
The severe conditions surrounding the food service industry is projected to continue, and by increasing the direct import of food supplies, we seek to maintain a high level of quality as well as to improve our cost savings.

IR Activities

We participated in the Nagoya Stock Exchange IR Expo held in July at the Fukiage Hall in Nagoya city. At the information sessions held at the booth and the special meeting room, we had a high level of interest from many participating investors and there is growing anticipation for our company.
We also hold information sessions for private investors in Tokyo metropolitan region. We feel the need to continue strengthening our brand awareness in the Kanto region and such sessions are held as a part of the measures to enhance awareness. We will continue to hold precious opportunities for dialogue with our investors through IR activities going forward.
In closing, we thank you and request for your continued support and encouragement in the years ahead.

Shuji Ito, President and COO
(November 10, 2017)

10 Aug. ,2017

First Quarter Financial Report

The business environment still remains severe due to increasing savings-oriented trends, surging food prices, and persisting difficulties in hiring.
Amid such harsh conditions, however, our core brands Sagami and Ajino-Mingei have had a strong net sales performance, increasing by 1.3% from the previous fiscal year. Operating and ordinary profits fell below that of the previous year due to an increase in personnel costs, but the quarterly net profits increased as we reduced cross-shareholding.

20th Anniversary of Company’s Listing on the Tokyo Stock Exchange and Nagoya Stock Exchange, First Section

On July 13th, we held a reception at the Hotel Castle Plaza located in Nagoya city to celebrate the 20th Anniversary of our Company’s Listing on the Tokyo Stock Exchange, First Section and the Nagoya Stock Exchange, First Section. In July 1997, our company’s stocks were moved to the First Section of both stock exchanges and to celebrate our 20th year of our listing, many distinguished guests attended our commemorative event, reaffirming to us that the Sagami Group is supported by many people.
At the ceremony we received many messages from our distinguished guests, and presented a slideshow of our 20 year history. “A superior Sagami Group for the next generation” has been the slogan amongst the management team, but we have made a resolution to pursue this with an even stronger determination going forward.

Ajino-Mingei

At the end of the first quarter, all existing outlets of Ajino-Mingei, which joined our group in January 2014, had exceeded the net sales of the previous year for 40 months consecutively, and even in July 2017, it continues to exceed 100% and will set a new record for 41 consecutive months.
Ajino-Mingei has implemented the reform examples undertaken at Sagami for customer service and menu offerings, and this has been very successful. Since most Ajino-Mingei outlets are located in the Tokyo metropolitan region, there are probably less opportunities for our shareholders in the Chubu region to dine at the outlets, but we offer a wide variety of dishes with “tsuru tsuru mochi mochi” Udon (“smooth but glutinous and chewy” Japanese wheat noodles) in a specially made broth from extracts. It is blended daily at each outlet with a golden ratio of Rishiri Kelp from Hokkaido and Bonito Flakes from Makurazaki, Kagoshima prefecture and Yaizu, Shizuoka prefecture. When in Tokyo, please stop by and enjoy the dishes.

Grand Prix Winner at the Tebasaki (Chicken Wing) Summit

We participated in the 4th Tebasaki Summit 2017 held from June 9 (Friday) for 3 days. The venue had been changed to Nagoya Hisaya Odori Park from Nagoya Kanayama Sogo Station which hosted the past 3 summits, and this year, the number of attendees was a record high. Our company has won the “Gold Prize” 2 times out of 3 summits, and this year, we sold “Premium Tebasaki” and “Shichimencho (Turkey) Wing (limited quantity)” at the Summit and a long queue had formed in front of our booth even before actual opening. We received Grand Prix, the top award, this year.

General Meeting of Shareholders

On June 29 (Thursday), we held our Annual General Meeting of Shareholders at the Owariasahi City Community Hall in Owariasahi city in Aichi prefecture. This year’s agenda included “appropriation of surplus”, “election of 8 directors”, “election of 1 corporate auditor”, “election of 1 substitute corporate auditor”, and we received approval on all bills. To all our shareholders, we thank you. We currently have 11 board members, of which 4 members (2 directors, 2 corporate auditors) are external board members. We will work on improving the speed of our business execution and further strengthen our corporate governance.
During the Annual General Shareholders’ Meeting, we received many comments and questions from the customer perspective on issues such as outlet facilities and menus, etc., and this invaluable dialogue reaffirmed to us the immense support we continue to receive from our shareholders. Going forward, we will commit to undertaking further reforms to fulfill and exceed the expectations of our valued shareholders and customers.

Shuji Ito, President and COO
(August 10, 2017)

11 May ,2017

Review of FY2016

The global economy showed signs of a modest recovery in part due to the stable growth of the U.S. economy, but it was a year of tumultuous changes, such as seen in the surge in crude oil prices. With regard to the Japanese economy, the decline in personal consumption, the tight supply and demand in the labor market leading to increased personnel costs etc., continued to challenge the food service industry.
In order to respond to the stringent business environment surrounding our business, we prepared a new medium-term business plan with FY2016 as the first year of the 3 year rolling plan.
With regard to consolidated results, although both operating profits and ordinary profits were lower than the previous fiscal year, net sales and net profits exceeded that of the previous year. Net sales, operating profits, ordinary profits were below budget, but due to efforts made to decrease costs, the current net profits achieved target budget. Even amid the increasing pressures of the consumers’ savings-oriented mindset, the net sales of our existing outlets of the core brands Sagami and Ajino-Mingei have been increasing, and so we will make efforts for the trends to continue into the new fiscal year. With regard to Ajino-Mingei, net sales have exceeded the previous year results for 38 consecutive months (as of end of April 2017), and it continues to renew the record.
Regarding our domestic activities, we participated in the G7 Ise-Shima Summit held in May and presented Soba (buckwheat noodle) and Tempura to journalists from around the world at the international media center, opened Sukoyaka-Shokudo (“healthy menu” restaurant) in the Obu City Hall, Sagami Tei in Hotel Castle Plaza located 5 minutes by foot from Nagoya station, and a SAGAMI with a soba-making facility for children to experience soba-making by hand in Maker’s Pier, adjacent to Legoland in Nagoya.
We also converted 3 Hamacho outlets which joined our group last year into Sagami brand and changed one Don Don An into a specialized Tonkatsu outlet Katsutani with future franchise options. Further, we received the “Kon Ninsho” (Navy Blue Certification) which is the highest form of certification from the Omotenashi (Japanese Hospitality) Standard Certification System for Soba Atelier Sagami, a workshop facility to experience soba-making by hand, located in Tobishima village, Ama-gun, Aichi prefecture.
Overseas, we opened SAGAMI, a long-term experimental outlet in Milan, Italy, and opened Tenobe Udon (hand-stretched type Udon) outlet Suizan and fresh pasta outlet JINJIN in Vietnam, a country with highly anticipated economic growth and on friendly terms with Japan. Currently, our overseas outlets include 1 outlet in Italy, 2 in Vietnam, 2 in Thailand, 1 in Indonesia, and 2 in China- a total of 8 outlets in 5 countries. We will strive to enhance our brand awareness overseas as the leading Soba company.
With regard to our efforts towards providing a higher level of “Safety and Reliability”, 2 of our factories- Iruma Factory and Bisai Factory- obtained ISO22000, the international standard certification for Food Safety Management. We will continue to provide the highest level of assurance for safety and reliability.

Efforts in FY 2017


While the gradual recovery of the recent economic conditions is projected to continue, we assess that the sluggish personal consumption arising from the decrease in real income will continue. Under such conditions, our group has reviewed the medium-term management plans (rolling plans) in order to make relevant improvements to the factors that have caused the unachieved targets of our business plans, and based on our management pillars of “strengthening our business base”, “improvement of profitability”, “promotion of growth strategy”, we will commit ourselves to further improving our corporate value.
With regard to our growth strategies, we have signed for openings of 3 outlets of our core brand Sagami and 1 outlet of Binmugi (small sized outlet serving hand-stretched type Udon). Although under different brand names, Suizan and Binmugi have the same concept and we are planning on recruiting franchise partners for this concept.
As we move forward, we are strengthening our corporate structure to handle the expanded business, and following the 3 professionals who joined our site development department and 1 professional who joined our franchise development department, 1 professional joined our overseas department this year. In addition, in preparation for the new openings, we recruited graduates for the first time in 8 years, and welcomed 23 new employees in April 2017.
In response to an increase in demand for home-meal replacements, we are expanding the number of outlets offering delivery services and all outlets with the said services have had a strong sales performance. Healthy menu items such as Dattan (Tartary) Soba and foods with reduced salt as well as original dishes created by each outlet that use local produce of the areas are highly popular, and we will continue to work on efforts to raise our customers’ motivations for dining with us.
We will continue to aim to achieve our group vision to be the “No. 1 Noodle Restaurant Company” and expand our businesses both domestically and internationally. The company and each outlet will make dedicated efforts to raise the awareness of Soba and Nagoya Meshi (specialty food from Nagoya), both of which are Sagami’s strengths, to people around the world.

20th Anniversary of Company’s Listing on the Tokyo Stock Exchange and Nagoya Stock Exchange, the 1st Section


With your continued support and patronage, we were able to celebrate our 20th year as a public company on the Tokyo Stock Exchange 1st section and the Nagoya Stock Exchange 1st Section in July. We hereby express our sincere gratitude for your long-term support and while the matter will be approved at the annual general meeting of shareholders, the end-of-year dividend will be 6 yen, consisting of ordinary dividend per share of 5 yen and commemorative dividend of 1 yen.

In closing, we thank you and request for your continued support and encouragement as we move ahead.

Toshiyuki Kamada, Chairman and CEO
Shuji Ito, President and COO
(May 11, 2017)

09 Feb. ,2017

Third Quarter Financial Report for the Year Ending March 2017

Despite the ongoing severe economic conditions and household consumption expenditures on a downward swing since the beginning of the year in comparison to last year, we have been able to end the period with an increase in gross sales at JPY19,631 million.
We have been responding to consumers’ savings-oriented mindset and demand for home meal replacements by enhancing sales of “to-go” menus and increasing delivery services which have resulted in the strong performance of our core brands, Sagami and Ajino-Mingei.
Operating profits were lower than last year at JPY783 million but it had amounted to what we had forecasted in our plans. Outlet renewals were the main factors attributing to the decrease.

Participation in Activities and Events in the Tokyo Metropolitan Area

Although the outlets of our core brand Sagami is located in areas ranging from the Tokai region (central region of Japan where Sagami’s HQ is located) to the Kanto (Tokyo metropolitan area) and Kansai (southern central region of Japan) regions, we are aware that we need to improve the brand awareness in the Tokyo metropolitan area so we have proactively participated in IR events as well as events to promote “Aichi prefecture” and “Nagoya Meshi” (specialty food from Nagoya area).
As we move forward, we will continue to participate in events to raise awareness and strengthen our brand.

Ajino-Mingei

Ajino-Mingei, which mainly serves Tenobe Udon (hand-stretched type Udon) dishes, had had great performance.
In 2016, all existing outlets exceeded the sales of the previous year in every month and this record has continued for 35 consecutive months as of January 2017.
This has been achieved due to the menu and service that has been well received by those in the local areas, and we are very grateful for the ongoing support.

Received the “Omotenashi Standard Certification 2016” from the Ministry of Economy, Trade and Industry

We received the Omotenashi (Japanese Hospitality) Standard Certification System, implemented by the Ministry of Economy, Trade and Industry in September 2016 for the 252 outlets in our group. The Omotenashi standard is intended to activate and increase the productivity of the service providers by promoting the transparency of service quality.
We have been making efforts to date, such as increasing connectivity by setting up a Wi-Fi environment and facilitating ease of ordering by providing information in foreign languages. We will continue to provide a high level of service quality that is highly transparent for our outlets to be the restaurant of choice for our guests.

Sales of Dattan Soba Dishes using “Manten Kirari”

Since October 2016, we have started the sales of Dattan (Tartary) Soba dishes using Manten Kirari (new variety of Tartary with reduced bitterness as compared to the conventional Tartary buckwheat), produced in Oumu town, Monbetsu district, Hokkaido.
Manten Kirari is a new variety of Tartary developed in Japan with the bitter taste of Dattan significantly reduced, and it is said that it contains approximately 100 times more Rutin, (one type of functional component of polyphenol) than Soba. As the leading company in the category for Soba in the restaurant dining industry, we will continue to develop our Soba dishes to offer Soba with superior nutritional value and hence improve our brand value.

Opening of Directly Managed Outlet in Milan, Italy

We participated in the Japan pavilion of the Milan Expo hosted in 2015, and after test operations in Milan in the spring of 2016, we opened “Sagami Milan” at the end of December 2016.
In addition to Soba and Nagoya Meshi which were very popular during the test operations, we offer dishes that have the feeling of Japanese culture and its seasonality.
There are very few restaurants that serve Japanese noodles in Italy, the home of pasta, and we will continue to examine our opportunities for our future roll out in Europe. In order to thrive in this competitive market, as a group, we will continue to stick resolutely to the customer’s perspective and strengthen the organization into one that responds timely to the changes of the times.

In closing, we thank you and request for your continued support and encouragement as we move ahead.

Toshiyuki Kamada, President
(February 9, 2017)

10 Nov. ,2016

Second Quarter Financial Report

Amid the growing the savings-oriented mindset during this period, the performance of our core brands Sagami and Ajino-Mingei was very strong and led to sales slightly exceeding our forecasts.
The limited seasonal menus at Sagami were very popular amongst our guests, resulting in an increase in the average price per guest, and further pursuing the integration of distribution and back offices at Ajino-Mingei proved successful, and because of the strong performance of our core brands, on November 7, we announced the upward revisions to our initial sales and revenue forecasts.
However, because the future market prospects remain uncertain, we left the projections for the full fiscal year unchanged.

Our Company’s Strengths

From this fiscal year, we have employed the phrase “The Healthy-Menu Company” to convey our company’s strengths and I will hereby explain the origin of these words. Average life expectancy and healthy life expectancy do not only stem from diet but is determined by several factors such as exercise and stress, and by the social environment. However, for the purposes of our discussion, we restricted ourselves to thinking only about “diet”.
Amongst the countries with populations over 10 million people, Japan has the highest average life expectancy. By prefecture in Japan, Nagano, a prefecture in eastern Japan, has the highest life expectancy. Nagano prefecture also has highest number of soba restaurants per 100,000 persons in Japan. It is said that “aging begins in the blood vessels” and Rutin, which is contained in Soba, is said to be effective in strengthening and maintaining flexibility in the blood vessels, so it can be thought that there perhaps is some kind of correlation between longevity and Soba.
With regard to healthy life expectancy, amongst the countries with over 10 million people, Japan ranks first for both males and females, and Aichi prefecture ranks first for males and ranks third for females. One of the characteristics of the diet in Aichi prefecture is that the expenditures for dining out at Japanese cuisine restaurants is the highest in the country. The characteristic Japanese cuisine dish served at restaurants in Aichi prefecture is “Nagoya Meshi” (specialty food from Nagoya) and we think that there could be some correlation here as well.
While this is only based on research conducted by ourselves, as a food service company, we have the highest number of outlets serving Soba as the main dish on the menu and the majority of Nagoya Meshi is served at all Sagami outlets. So it can be said that we are the leading company in Soba and at the same time, we can also be called “the Nagoya Meshi company” and hence, “The Healthy-Menu Company”.
In order to respond to the increasing health conscious mindset, this year we included dishes with reduced salt, as well as Dattan (Tartary) soba that is said to contain more than 100 times Rutin than the usual Soba, in our menus. In the hopes that it would connect to the improvement in company’s brand value, we are working to develop products that are tasty and very high in health value.

*Average life expectancy / Healthy life expectancy related data source: Published data from World Health Organization, Ministry of Health Welfare and Labor, Ministry of Internal Affairs and Communications

IR Activities

As part of promoting dialogue with our shareholders and investors, we are strengthening our IR activities. As we did last year, this year we also participated in the Nagoya Stock Exchange IR Expo held at the Fukiage Hall in Nagoya city, and for the first time attended the Nikkei IR/ Investment Fair held in August at Tokyo Big Site in Tokyo.
At both events, we had a booth for company information and also talked during the seminar about the current conditions of the company and our future strategic plans. Until last year, we had stopped attending IR Fairs but because we were able to receive very valuable opinions from those in attendance, we will make efforts to participate on an ongoing basis. In achieving our group vision as the “No.1 Noodle Restaurant Company”, we will work together with all employees of the group.

In closing, we thank you and request for your continued support and encouragement as we move forward.


Toshiyuki Kamada, President
(November 10, 2016)

10 Aug. ,2016

Financial Results for First Quarter of FY 2017

Ajino-Mingei

At the end of the first quarter, the existing outlets of Ajino-Mingei, which joined our group in January 2014, had sales exceeding the net sales of the previous year by 100% for 28 consecutive months.
As a restaurant with Japanese noodles as its specialty menu, it has many commonalities with Sagami, and therefore the synergy effects of joining together has been invaluable. We are grateful to the support of all of our guests for the great performance.

General Meeting of Shareholders

On June 29 (Wednesday), we held our Annual General Meeting of Shareholders at the Owariasahi City Community Hall in Owariasahi city in Aichi prefecture. The six items on the agenda for this years’ meeting included the appropriation of surplus, election of 7 Board of Directors, election of 1 corporate auditor, election of 1 substitute corporate auditor, new compensation system for the board of directors, and the Continuation of Measures Against Large-Scale Purchases of the Company’s Shares (Takeover Defense Measures), and we received approval on all bills. We send our heartfelt gratitude to all our shareholders.
This year, we welcomed Shugo Fukui, a lawyer, as our external auditor. With Mr. Fukui, we now have 10 executive officers, of which 4 members are external officers (2 Board of Directors, 2 Auditors).
We received many questions from our shareholders during the meeting and this invaluable dialogue reaffirmed to us the immense support we continue to receive from all our shareholders. Going forward, we will commit to undertaking further reforms to fulfill and exceed the expectations of our valued shareholders and customers.

New Outlet Opening

In April, we opened a Sagami Sukoyaka Shokudo (“healthy menu” restaurant) on the 6th floor of the municipal office of Obu city, Aichi prefecture, which is a city known for advocating healthy food. We want the residents of the city to become more familiar with the Sagami brand as we accumulate our know-how of healthy foods through the development of a proprietary healthy menu.
In July, we opened Sagami Tei, a Japanese cuisine restaurant, in the basement of the Castle Plaza Hotel located in front of Nagoya station, a location in which we had long sought to open. We also opened a specialty tonkatsu (deep-fried pork cutlet) restaurant, Katsutani, that serves as a prototype for a new franchise roll-out.
With regard to our overseas developments, on July 30, we opened a Tenobe Udon (hand-stretched type Udon) restaurant “Suizan” and fresh pasta “JINJIN” in the Takashimaya in Ho Chi Minh City. It is our goal that by 2020 we will have opened 20 outlets in the ASEAN countries.
Currently, our overseas outlets include 3 in Thailand, 1 in Indonesia, 2 in Vietnam, 2 in Shanghai - a total of 8 outlets in Asia.

Raising Awareness of Soba and Nagoya-Meshi

or one month and a half since April, we have been conducting a test marketing case in Milan, because we wanted to test the demands and viability of our main products Soba (buckwheat noodles) and Nagoya-Meshi (specialty food from Nagoya area) in a more open and public location, after our great success at the Milan Expo. We serve about 15 dishes with Soba and Nagoya-Meshi as the main dishes. If this test case is well-received, we would like to consider opening in Europe in the long-term.
We participated in the G7 Ise-Shima Summit held from May 25-May 27 and served Udon (Japanese wheat noodles), Tempura, and Ise Udon for the journalists from around the world at the international media center (press center). It was a great opportunity to appeal the Japanese food culture to people from abroad.

We will continue moving forward to realize our group vision as the “No. 1 Noodle Restaurant Company” and commit to doing our best. In closing, we thank you and request for your continued support and encouragement as we move ahead.


Toshiyuki Kamada, President
(August 10, 2016)

Translate »