CEO’s Greeting Remarks and Company Motto

To See the Smiling Faces of Customers Who Visit Halows

I would like to take this opportunity to express my sincere gratitude for your support of the Company.

Halows is a food supermarket with a store network in major cities in the Setouchi market area covering seven prefectures in the Chugoku, Shikoku and Kinki regions (Setouchi coastal region of Hiroshima, Okayama, Kagawa, Ehime, Tokushima, Hyogo and Yamaguchi market areas).

The first and foremost objective set out in our Management Philosophy since the establishment of the Company has been to “contribute to improvements in life and culture in local communities.” Along with this, we have enjoyed substantial growth solely as a food retailer. This has brought about further appreciation of the support given to Company activities by our customers in the local communities and business partners.

In the environment surrounding the retail industry, inter-corporate competition across different business models and sectors is intensifying with acceleration in alliances, consolidation, etc. In addition, demographics, the number of household members, lifestyles and needs of customers have also changed.

Under such circumstances, we offer the ultimate level of “time service” for our customers, operating with a 24 hours a day, all year round open format adopted at all stores with the fundamental understanding that “retailing is a business that should adapt to change.”

We intend to create “No. 1 stores throughout our region, contributing to the well-being of our customers” with our selection of products for daily living, by offering safe and reliable products with the best quality at affordable prices whenever needed and as needed.

We are striving for improvement in our managerial level by expanding operations and improving business performance and efficiency based on the concepts of corporate social responsibility (CSR) and making progress toward the realization of our Long-Term Vision, the “Plan for ¥ 300 Billion in Sales with 180 Stores in the Setouchi Market Area.”

In the belief that retail businesses will be the winner of the times with support from customers, we will concentrate our efforts on our corporate business model including the creation of new business categories and the promotion of operational reform.

I would like to ask for your continued support and patronage.