Consolidated Financial Results [Japanese GAAP]
for the First Quarter of the Fiscal Year Ending January 20, 2023
May 25, 2022
Takasho Co., Ltd.
Stock code:
7590
Stock Exchange Listing:
Tokyo
URL:
https://takasho.co.jp/en
Telephone:+81-73-482-4128
Representative: Nobuo Takaoka, President & CEO
For inquiries:
Atsushi Inoue, Corporate Officer, Corporate Management Headquarters Vice Director
Scheduled date to submit statutory quarterly financial report:
June 3, 2022
Scheduled date of starting payment of dividend:
N/A
Availability of supplementary explanatory material on quarterly results:
N/A
Quarterly results briefing:
N/A
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release inJapanese shall prevail.
1. Consolidated Financial Results for the Three Months Ended April 20, 2022 (From January 21, 2022, toApril 20, 2022)*Figures are rounded down to the nearest million yen, except share and per share data*“ %” indicates year-on-year changes from the previous corresponding quarter(1) Consolidated Operating Results（Cumulative）
Net income
Net sales
Operating income
Ordinary income attributable to ownersof the parent
Million yen%
Million yen%
Million yen%
Million yen%
FY2023 1Q(Three months ended
5,671
1.7
424
9.7
764
68.8
525
88.6
April 20, 2022)
FY2022 1Q(Three months ended
5,578
20.6
386
84.2
453 241.1
278 454.7
April 20, 2021)(Note) Comprehensive income:
FY2023 1Q (Three months ended April 20, 2022): 775 million yen (39.2%),
FY2022 1Q (Three months ended April 20, 2021): 556 million yen ( - %)FY2023 1Q(Three months endedApril 20, 2022)
FY2022 1Q(Three months endedApril 20, 2021)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen
30.00

29.98

19.12

19.09

(2) Consolidated Financial Position
Shareholders’ equity
Total assets
Net assets
ratio
As of the end ofMillion yen
Million yen%
FY2023 1Q(As of April 20, 2022)
25,567
13,43752.1
FY2022 4Q(As of January 20,
23,665
13,064
54.8
2022)(Ref.) Shareholders’ equity amount:
FY2023 1Q (As of Apr. 20, 2022): thirteen,321 million yen
FY2022 4Q (As of Jan. 20, 2022): 12,957 million yen

2. Dividends
1st quarter
Yen

Annual cash dividends per share
2nd quarter3rd quarter
Year-end
Yen
Yen
Yen

FY2022 4Q
0.00－－
ended Jan. 20, 2022
FY2023 1Q－
ended Apr. 20, 2022
FY2022 4Q
ending Jan. 20, 2023
0.00－
(forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

Total
Yen

23.00

23.00

23.00

23.00

3. Forecast for the Fiscal Year Ending January 20, 2023 (From Jan. 21, 2022, to Jan. 20, 2023)* Figures are rounded down to the nearest million yen, except share and per share data
* “ %” indicates year-on-year changes from the previous corresponding period
Net income
Basic
Operating
Ordinary
attributableto
Net sales
Earnings
IncomeIncomeowners of the
Per Share
parent company
Million yen % Million yen % Million yen % Million yen %Yen
FY2023 4Q
23,204 11.7
1,568 6.4
1,639 7.1
1,184 18.3
67.55
(full year)(Notes) Revisions to the forecast since the latest announcement: None

※ Notes;(1) Changes in Significant Subsidiaries during the Current Quarter
Changes in specified subsidiaries that caused a change in the scope of consolidation: None
Newly included companies: None
Newly excluded companies: None
(2) Simplified Accounting Procedures and Specific Accounting Procedures: None
(3) Changes in Accounting Policies and Accounting Estimates(i) Changes in accounting policies as required by newly promulgated account pronouncement: Yes(ii) Changes other than (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of Shares Outstanding (Ordinary Shares)

Number of shares outstanding at end of period(Treasury shares included)
Number of treasury shares at end of period

Average number of shares during 1Q

FY2023 1Q(As of Apr. 20, 2022)

FY2022 4Q(As of Jan.20, 2022)

17,590,114

17,590,114

61,578FY2023 1Q(From Jan.21, 2022,
to Apr. 20, 2022)
17,527,692

63,578FY2022 1Q(From Jan.21,2021,
to Apr. 20, 2021)
14,578,329* This quarterly financial results report is out scope of the quarterly review by a certified public accountant nor
audit firm.
* Explanation on appropriate use of performance forecasts and other special notes.
The performance forecast described in this report are based on information that is available to the Group, as wellas certain assumptions and estimates that are deemed to be reasonable, and we make no assurance that suchdescriptions prove to be correct. Actual figures may significantly differ due to various factors. For information
regarding the forecast of consolidated financial results, due attention should be paid to "Explanation of ForwardLooking Statements" on page 3 of the attached documents.

Table of Contents
1. Status of the Group(1) Business Overview and Results for the First Fiscal Quarter……………………………………….…
(2) Explanation on the Financial Position …………………………………………………………………
(3) Explanation on Future Performance Forecast …………………………………………………………
2. Quarterly Financial Statements and Notes

133(1) Quarterly Consolidated Balance Sheet …………………………………………………………………
(2) Quarterly Consolidated Statement of Income and Comprehensive Income …………………………
(3) Notes to Quarterly Consolidated Financial Statement
Note on Going Concern ………………………………………………………………………………

4
6

Note on Significant Change in Equity Capital ………………………………………………………
Changes in Accounting Policies ………………………………………………………………………

8
8

8

1. Status of the Group(1) Business Overview and Results for the First Fiscal Quarter
Business Overview
During the first quarter of the current consolidated fiscal year, the prospects of Japanese economy continue to behighly uncertain and are unpredictable. Although the economy showed signs of slight recovery despite thetenacious adversity out of the novel coronavirus (hereafter referred to as “COVID-19”) pandemic, other factors,
such as fluctuations in financial and capital markets, further depreciation of the yen in the exchange market as wellas the volatile overseas situation incurred by the Ukraine affairs, are rampant and has been deteriorating thisuncertainty.
As for the circumstances of the gardening and exterior industry, strong demands for the comfortable life ingarden are creating new opportunities, with the rising number of new constructions of residence, noticeably,
coupled with lifestyle and mindset shift toward spacy homes with gardens and, in some cases, relocation to thesuburbs.
In addition, the spread of COVID-19 pandemic changed people’s lifestyle and mindset, which is global
phenomena. More people than ever are staying home during the day and looking for stress-free garden lifestyle byenriching their outdoor space with various seasonal flowers, plants, and other natural elements for aesthetic and/or
practical purposes. Travelling less or working from home, more people have been investing in their home, such as
remodeling and renovations of their home, with the purpose of comfortable living with greenery, delightful andquality time with family, and healthy and well-beings, during leisure time in their own house.
In this business environment, for the purpose of enhancing our brand value and fueling future growth, our Groupintensified sales promotion campaigns. Leveraging on our technology and accelerating digital transformation(hereafter referred to as “DX”), we broadcasted TV commercials in 15 prefectures in Japan, including major cities,
such as Osaka and Aichi, which are linked with our web platform in order to increase customer touchpoint andengagement. Also, we participated in impactful exhibitions such as EXG2022 (Exterior Garden Exhibition) which
mobilizes a lot of visitors.
Amid constant technological developments and corresponding changes in the way people purchase, at the"Takasho GLD-LAB. Soft-Factory Tottori," on the other hand, our Group reinforced our efforts in gardening
simulation apps and garden space moving image software packages which equipped with the state-of-the-art
technologies such as AR, VR, and MR.
Moving beyond pandemic, with continuous solid demands for gardening and exterior scaping across the globe,
business performance of our group, domestic sales way surpassed the previous year's sales level, primarily driven
by robust sales of living garden products for newly built houses and remodeling needs, which has been further
expedited by people’s new lifestyles and mindset. Overseas sales, on the other hand, decreased compared to thesame quarter of previous fiscal year, negatively affected by logistics disruptions. Nonetheless, total net sales
recorded strong figure, with strong industry market conditions and our efforts.
1st Quarter Fiscal 2023 Highlight (January 21, 2022, to April 20, 2022)
Revenue: 5,671,002 thousand yen (1.7% increase compared to 20221Q)
Operating income: 424,609 thousand yen (9.7% increase compared to 20221Q)
Ordinary income: 764,979 thousand yen (68.8% increase compared to 20221Q)
Quarterly net income attributable to owners of the parent: 525,874 thousand yen (88.6% increase compared to2022 1Q)

Sales Metrics by Business Segments<Pro-use segment>
As discussed above, fundamentals of our business and industry remain vibrant. Sales by pro-use- segment, ourmajor business, achieved significant growth, recording a 11.6 % increase (approximately plus 310 million yen)
compared to the same quarter of previous fiscal year.
To accelerate our successful growth, we promoted our new multidimensional business model; innovative synergyof online, virtual, and real, more precisely, DX-enabled proposals and sales closing through web-based showrooms(operating 24 hours a day) and VR parks, as well as through our original garden and exterior showrooms locatedthroughout Japan where customers can experience and feel a wide selection of our products.
Also, our Group has our own factory in Japan, which enables flexible “mass customization” to each customer’sorder, and it has been promoting hybrid-style proposals, as mentioned above, that utilize content both online andreal by comprehensively proposing "Facade Exterior & Living Garden" lifestyle through abundance of color-1-variation tailored to each customers’ aesthetics sense, tastes and interests. What is more, sales of living garden
products such as "Home Yard Roof," a key product inspired by "5th ROOM" (fifth room) concept, and "Low Volt
Light," a safe and secure exterior illumination for nighttime gardens, increased 10.0% from the same quarter of theprevious fiscal year.

<Home-use segment>This segment received benefits from shift in people’s lifestyle and mindsets which was caused by the impact of
COVID-19 pandemic. Strong demand has been continuously generated, with increased exodus from urban tosuburbs for spacey houses, stronger desire for comfortable family house closer to nature and fresh air.
Nonetheless, reactionary drop from last year and a delayed spring due to cooler temperatures nationwide
negatively affected, resulting in 0.8% sales decline compared to the same quarter of the previous fiscal year.
<Overseas segment>
Overseas sales were negatively affected by people’s reluctancy to buy, caused by soaring maritime freight cost toEurope and the U.S., and by the unexpected sharp rise in electricity and gas prices due to the conflict in Russia andUkraine.
As the geographical initiatives to further harness overseas businesses, on a happier note, in the U.S., we weresuccessful in TV shopping promotions by QVC, strategic e-commerce partnership initiatives with Wayfair LLC,
one of the world's largest home retailers. Also, in Australia, we launched strategic partnership with Bunnings
Group, leading retailer of home improvement and outdoor living products, which accelerates direct delivery andregular inventory at their retailer shop of our products.
As a result of those upsides and downsides, overseas sales decreased 24.7% from the same quarter of theprevious fiscal year.

Operating income
Operating income amounted to 424,609 thousand yen, an increase of 9.7% from the same quarter of the previous
fiscal year, due to the increase in net sales and gross profit margin, partially offset by incremental expenses inproactive advertising and sales promotion, etc., mainly due to face-to-face and real exhibitions reopened after
COVID-19 pandemic.

Our mission, Future strategies, and SDGs Initiatives.
Passion for our group’s establishment was “Heart and Art”, which has never been changed nor forgotten eversince. Underpinned with passion and mission we have a long history of and reputation for designed gardening andinnovation, inspired by traditional Japanese aesthetics (such as wabi-sabi, elegance and refinement) and British
garden cultures etc., integrating the beauty of nature into daily lives and spiritual values.
Towards better health and wellbeing with happiness, leveraging our technologies and contents, our Group arecommitted to further promote DX-enabled sales promotions such as hybrid of real and Internet, AR/MR, etc., forthe purpose of brand value enhancement and sales promotion reinforcement.
In addition, driving innovation, capabilities and growth, our Group will construct new production factory andintroduce manufacturing equipment, by allocating cash raised from last year's public offering.
Our Group’s employees are precious human capital, and continue to nurture them toward “all-engagement,
diversity & Inclusion” working environment and culture.
Also, as a member of our society, we have been promoting Eco garden (recycle, reduce, reuse) ensuring
sustainable consumption and production patterns.

-2-(2) Explanation on the Financial Position
Status of Assets, Liabilities, and Net assets<Assets>
Current assets at the end of the first quarter amounted to 17,363,211 thousand yen, an increase of 1,442,798
thousand yen from the end of the previous consolidated fiscal year, primarily due to increased note receivable,account receivable and contract assets of 4,592,790 thousand yen (up 909,232 thousand yen from the end of theprevious consolidated fiscal year) and increased merchandise and finished goods of 4,293,967 thousand yen (up295,136 thousand yen from the end of the previous consolidated fiscal year).
Fixed assets at the end of the first quarter amounted to 8,204,484 thousand yen, an increase of 458,903 thousand
yen from the end of the previous consolidated fiscal year, mainly due to increased property, plant and equipment of
6,183,714 thousand yen (up 383,962 thousand yen from the end of the previous consolidated fiscal year) and anincreased intangible assets of 541,537 thousand yen (up 44,592 thousand yen from the end of the previous
consolidated fiscal year).
As a result, total assets at the end of the first quarter amounted to 25,567,696 thousand yen, an increase of
1,901,702 thousand yen from the end of the previous consolidated fiscal year.

<Liabilities>
Current liabilities at the end of the first quarter amounted to 11,329,778 thousand yen, an increase of 1,355,533
thousand yen from the end of the previous consolidated fiscal year, mainly due to an increase of notes and accounts
payable-trade of 3,785,898 thousand yen (up 272,838 thousand yen from the end of the previous consolidated fiscal
year) and an increase of short-term loans payable of 4,428,453 thousand yen (up 693,582 thousand yen from theend of the previous consolidated fiscal year).
Fixed liabilities at the end of the first quarter amounted to 800,458 thousand yen, an increase of 173,177 thousand
yen from the end of the previous consolidated fiscal year, mainly due to an increase of other fixed liabilities of465,226 thousand yen (up 180,947 thousand yen from the end of the previous consolidated fiscal year), partially
offset by a decrease of long-term loans payable of 102,000 thousand yen (down 9,000 thousand yen from the endof the previous consolidated fiscal year).
As a result, total liabilities at the end of the first quarter amounted to 12,130,237 thousand yen, an increase of
1,528,711 thousand yen from the end of the previous consolidated fiscal year.

<Net assets>
Total net assets at the end of the first quarter amounted to 13,437,459 thousand yen, an increase of 372,990
thousand yen from the end of the previous consolidated fiscal year, mainly due to an increase of retained earningsof 6,259,767 thousand yen (up 122,764 thousand yen from the previous consolidated fiscal year), deferred gains orlosses on hedges of 112,643 thousand yen (up 101,308 thousand yen from the previous consolidated fiscal year),and foreign currency translation adjustments of 622,456 thousand yen (up 125,887 thousand yen from the previous
consolidated fiscal year).

(3) Explanation on Future Performance Forecast
At present, there are no changes to the consolidated earnings forecast for the full year announced on March 3,
2022.

-3-

2. Quarterly Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
FY2023 1Q(As of Apr. 20, 2022)

FY2022 4Q(As of Jan. 20, 2021)
ASSETS
CURRENT ASSETS:
Cash and deposits
Note receivable, account receivable
Note receivable, account receivable andcontract assets
Electronically recorded receivables
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
NON-CURRENT ASSETS:
Tangible assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
OthersTotal tangible assets
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OthersAllowance for doubtful accounts
Total investment and other assets
Total non-current assets
TOTAL ASSETSLIABILITIESCURRENT LIABILITIES:Note and accounts payable
Electronically recorded payables
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity-4-

5,600,181
3,096,998

5,521,262--

3,958,623

586,558
3,998,831
506,015
1,344,812
927,886△140,872
15,920,412

634,166
4,293,967
527,086
1,382,068
1,194,829△148,793
17,363,211

3,643,980
1,043,608
208,158
904,004
5,799,751

3,684,762
1,097,071
175,868
1,226,010
6,183,714

24,747472,197496,945

62,491
479,046
541,537

225,576
121,401
1,124,846△22,939
1,448,884
7,745,581
23,665,994

244,065
99,6781,155,432△19,943
1,479,233
8,204,484
25,567,696

3,513,059
1,071,036
3,734,870
39,140338,590
21,684
1,255,864
9,974,245

3,785,898
1,157,730
4,428,453
36,000339,892
134,760
1,447,044
11,329,778

111,000
9,086
222,914284,279
627,280
10,601,526

102,000
9,678
223,552
465,226
800,458
12,130,237

Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeStock subscription rights
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES and NET ASSETS-5-

3,043,623
3,094,927
6,137,003△16,651
12,258,902

3,043,623
3,095,461
6,259,767△16,127
12,382,724

101,669

114,484

11,335496,568
88,811

112,643
622,456
89,068698,384

938,653

1,681
105,500
13,064,468
23,665,994

1,599
114,482
13,437,459
25,567,696

(2) Quarterly Consolidated Statement of Income and Comprehensive Income(Quarterly Consolidated Statement of Income, Cumulative)(Thousands of yen)

Net sales
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Royalty income
Foreign exchange gain
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Sales discounts
Commitment fee
OtherTotal non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirements of non-current assets
Total extraordinary losses
Income before income taxes
Income tax - current
Income tax - deferred
Total income taxes
Quarterly net income
attributable to noncontrolling interests
attributable to owners of the parent

FY2022 1Q(From Jan. 21, 2021,
to Apr. 20, 2021)
5,578,946
3,278,439
2,300,507
1,913,587
386,919

FY2023 1Q(From Jan. 21, 2022,
to Apr. 20, 2022)
5,671,022
3,177,009
2,493,992
2,069,383
424,609

3,297
9,817
77,091
7,481
97,6881,604
3,588
314,626
49,091
386,910

19,847
8,921
1,176
1,539
31,485453,122

18,771
1,176
8,591
28,540764,979

3,156
3,156
449,966
127,343
42,935170,278
279,687909
278,777

764,979
264,028△27,040
236,988527,991
2,117
525,874-6-

(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）(Thousands of yen)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeComprehensive income
attributable to owners of parent
attributable to non-controlling interests

FY2022 1Q(From Jan. 21, 2021,
to Apr. 20, 2021)
279,687

FY2023 1Q(From Jan. 21, 2022,
to Apr. 20, 2022)
527,991

10,096

12,81527,039216,983
23,061

101,308
132,751257

277,181247,133

556,869
552,427
4,441

775,125
766,1438,981-7-

(3) Notes to Quarterly Consolidated Financial Statement(Note on Going Concern): None
(Note on Significant Change in Equity Capital): None
(Changes in Accounting Policies):<Application of Accounting Standard for Revenue Recognition>
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. Hereinafterreferred to as the "Accounting Standard for Revenue Recognition”) has been applied from the beginning of thefirst quarter of the current fiscal year, and revenue is recognized at the amount expected to be received in
exchange for the promised goods or services when control of the promised goods or services has been transferredto the customer.
In accordance with the alternative treatment prescribed in Paragraph 98 of the "Guidance on AccountingStandard for Revenue Recognition" (ASBJ Guidance No. 30, March 26, 2021), for domestic sales of products, ourCompany recognizes revenue at shipping point if the interval between shipment and transfer of the control isnormal.
The major changes resulting from the application of the Accounting Standard for Revenue Recognition are as
follows
 Sales promotion expenses and sales discount: A portion of sales promotion expenses previously recorded inselling, general and administrative expenses and sales discount previously recorded in non-operating expenses
are deducted from net sales.
The Company has followed the transitional treatment prescribed in the provision of Paragraph 84 of the
Accounting Standard for Revenue Recognition, and the cumulative effect of retrospective application of the new
accounting policy prior to the beginning of the first quarter of the current fiscal year has been included in retained
earnings at the beginning of the first quarter of the current fiscal year.
Consequently, the effect of this change on profit and loss for the first quarter of the current fiscal year isimmaterial. There is no effect on the beginning balance of retained earnings for the first quarter of the current
fiscal year.
Due to the application of Accounting Standard for Revenue Recognition "notes and accounts receivable," which
was included in "current assets" in the consolidated balance sheet for the previous fiscal year, is included in"notes, accounts receivable and contract assets" in the consolidated balance sheet for the first quarter of thecurrent fiscal year.
In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for
Revenue Recognition, no reclassification has been made to reflect the new presentation for the previous
consolidated fiscal year.

<Application of Accounting Standard for Fair Value Measurement>
The " Accounting Standard for Fair Value Measurement " (ASBJ Statement No. 30, July 4, 2019; hereinafterreferred to as the " Accounting Standard for Fair Value Measurement ") has been applied from the beginning of
the first quarter of the current fiscal year, and in accordance with the transitional treatment stipulated in Paragraph
19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the new accounting policy will be applied
prospectively. There is no impact on the quarterly consolidated financial statements.

8