Please note that this document is a translation of the official announcement that was released on November 10, 2023. The translation is prepared andprovided for the purpose of the reader’s convenience only. All readers are strongly recommended to refer to the original Japanese version of the news
release for complete and accurate information.

Consolidated Financial Results for the
Six Months Ended September 30, 2023
[Japanese GAAP]
November 10, 2023
Company name: Raysum Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 8890
URL: http://www.raysum.co.jp/en/
Representative: Tsuyoshi Komachi, President and Representative Director
Contact: Soshi Okino, Operating Officer, Deputy Division Manager of Administration Division
Phone: +81-3-5157-8881
Scheduled date for filing of quarterly securities report: November 10, 2023
Scheduled date of commencing dividend payments: —Availability of supplementary briefing material on financial results: Yes
Schedule of financial results briefing session: Yes (for institutional investors and analysts)(Figures are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(1) Consolidated Results of Operations(% indicates changes from the previous corresponding period)
Net sales
Six months ended
September 30, 2023
Six months ended
September 30, 2022

Operating profit

Ordinary profit

Profit attributable toowners of parent
million yen%

million yen%

million yen%

million yen%

38,828

105.6

9,631

209.3

9,440

196.1

6,212

178.2

18,888

(5.3)

3,113

12.4

3,188

25.4

2,233

39.6

(Note) Comprehensive income:Six months ended September 30, 2023: 6,323 million yen (165.9%)
Six months ended September 30, 2022: 2,378 million yen (47.7%)

Profit per shareyen

Diluted profit per shareyen

216.87

－

66.67

－

(2) Consolidated Financial Position
Total assets
million yen
As of September 30, 2023
121,221
As of March 31, 2023
106,752

Net assets
million yen
57,79652,718Six months ended
September 30, 2023
Six months ended
September 30, 2022

Equity ratio
%
47.7
49.4

(Reference) Equity: As of September 30, 2023: 57,772 million yen
As of March 31, 2023:
52,691 million yen
2. Dividends
Q1 endQ2 endyen

Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024
(Forecast)

－
－

yen
0.00
0.00

Annual dividends
Q3 endyen－－(Note) Changes to the most recent dividend forecast announced: Not applicable－ 1 －Year endyen
55.00
175.00

Total
yen
55.00
175.003. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period)

Net sales
Full year

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

million yen%

million yen%

million yen%

million yen%

yen

90,00032.5

18,00025.2

16,80030.7

11,00031.3

384.63(Note) Changes to the most recent financial results forecast announced: Not applicable*Notes(1) Significant changes of subsidiaries in the first six months of the fiscal year under review (affecting specified subsidiaries
resulting in changes in scope of consolidation): Not applicable(2)

Application of accounting method specific to preparation of quarterly consolidated financial statements: Not applicable(3)

Changes in accounting policies, changes in accounting estimates and restatements
1) Changes in accounting policies due to the revision of accounting standards: Not applicable2) Any changes in accounting policies other than 1) above: Not applicable
3) Changes in accounting estimates: Not applicable4) Restatements: Not applicable(4)

Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares):Six months ended September 30, 2023
29,081,400 sharesFiscal year ended March 31, 2023

29,081,400 shares2) Total number of treasury shares at the end of the period:
Six months ended September 30, 2023

378,542 sharesFiscal year ended March 31, 2023

482,711 shares

3) Average number of shares during the period:
Six months ended September 30, 2023

28,645,796 shares

Six months ended September 30, 2022

33,497,954 shares* This quarterly financial report is not subject to quarterly review by a certified accountant or auditing company.
* Explanation of the proper use of performance forecast and other note
(Note on forward-looking statements, etc.)
Performance forecasts and other forward-looking statements presented in this report are based on information currently available to
the Company and certain assumptions deemed to be reasonable, and are not to be read as guarantees of future performance by theCompany. In addition, actual performance may differ substantially due to various factors.

－ 2 －○ Contents of Appendix
1. Qualitative Information on Quarterly Financial Results ........................................................................................................................ 4(1) Explanation of Results of Operations .............................................................................................................................................. 4(2) Explanation of Financial Position .................................................................................................................................................... 5(3) Explanation of Consolidated Financial Results Forecast and Other Information on Future Forecasts ............................................. 5
2. Quarterly Consolidated Financial Statements ........................................................................................................................................ 6(1) Quarterly Consolidated Balance Sheets ........................................................................................................................................... 6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income ....................... 8(3) Quarterly Consolidated Statements of Cash Flows ........................................................................................................................ 10(4) Notes on Quarterly Consolidated Financial Statements ................................................................................................................. 11(Notes on the Going Concern Assumption) ..................................................................................................................................... 11(Notes in the Event of Material Change in the Amount of Shareholders’ Equity) ........................................................................... 11(Segment Information) .................................................................................................................................................................... 11(Important Subsequent Events)........................................................................................................................................................ 12－ 3 －1. Qualitative Information on Quarterly Financial Results(1) Explanation of Results of Operations
The consolidated financial results for the first six months of the fiscal year under review recorded net sales of 38,828 million
yen (year-on-year increase of 105.6%), operating profit of 9,631 million yen (year-on-year increase of 209.3%), ordinary profitof 9,440 million yen (year-on-year increase of 196.1%), and profit attributable to owners of parent of 6,212 million yen (yearon-year increase of 178.2%). The Company has achieved a steady sales performance in Value Creation Services, which is itscore business, and is making good progress toward its full-year forecasts.
Business results by segment are as follows.
(Value Creation Services)
In this business, we pursue the potential value of individual real estate assets in accordance with the purpose of eachcustomer. We change the use, conduct large-scale renovations and attract new tenants by becoming owners, and create andprovide real estate assets that are meaningful to customers. Our approach to this business reflects our redefinition of what weshould prioritize above all: contemplating and delivering the essence of value that allows society, the economy, and theenvironment to harmoniously coexist and continuously develop.
In the first six months of the fiscal year under review, we were able to deliver a wide range of properties to customers,
including a large-scale commercial/office mixed use building in Kyoto City, a logistics facility in Chiba Prefecture, an
accommodation facility in Hiroshima Prefecture, a commercial facility located in one of Kyoto’s most popular tourist areas,and commercial buildings near Kichijoji Station in Tokyo and Urawa Station in Saitama Prefecture. In the first six months of
the fiscal year under review, Value Creation Services posted net sales of 35,275 million yen (year-on-year increase of 125.7%)
and segment profit of 10,192 million yen (year-on-year increase of 110.6%), continuing to make steady progress toward theachievement of the full-year performance targets for the segment. The second phase of our small-lot investment product thatcombines multiple large-scale properties to enable investors to invest in units of tens of millions of yen in real estate worth asmuch as 10 billion yen was almost completely sold out during the quarter, and we have already started structuring and selling
the third product.
We are earnestly carrying out necessary repair works, conversion preparations, tenant leasing and sales activities, and aresteadily procuring properties that will lead to sales in the next and subsequent fiscal years.
(Value-Add Services)
In this business, we conduct leasing management, building management and other services to maintain and enhance thevalue of the properties we have provided to customers. We listen to customers’ requests in detail and aim to improve the longterm asset value in ways such as proposing measures to increase property value for the future, taking advantage of opportunities
such as tenant replacement.
In the first six months of the fiscal year under review, Value-Add Services posted net sales of 2,528 million yen (year-onyear increase of 18.1%) and segment profit of 685 million yen (year-on-year increase of 98.7%). This improvement was thanks
to rental income from properties held being higher than in the same period of the previous fiscal year.
(Future Value Creation Services)
In this business, we mainly conduct businesses that address future social issues, such as community hostels, advanced
medical facilities that are indispensable in a super-ageing society and development of emergency power sources to prepare forfrequent natural disasters, under our own operation. The experience and knowledge gained through these business operations
will be utilized in conceiving and proposing ideas for Value Creation Services and Value-Add Services in the future.
In the first six months of the fiscal year under review, the flow of people within Japan is recovering compared with theprevious year, contributing to net sales and profit both increasing year-on-year in the accommodation business. However,results were affected by the exclusion from consolidation of the golf course business, which we divested during the previous
fiscal year (in the same period of the previous fiscal year, net sales of the golf course business were 323 million yen). Therefore,
Future Value Creation Services posted net sales of 1,024 million yen (year-on-year decrease of 8.4%), and segment loss of
742 million yen (segment loss of 1,672 million yen in the same period of the previous fiscal year).

－ 4 －(2) Explanation of Financial Position
1) Changes in Financial Position(Assets)
Current assets increased 14,116 million yen compared with the end of the previous fiscal year to 110,333 million yen. Thiswas primarily attributable to cash and deposits increasing 1,151 million yen to 28,675 million yen, real estate for saledecreasing 5,098 million yen to 40,068 million yen, and real estate for sale in process increasing 19,200 million yen to 36,280
million yen.
Non-current assets increased 352 million yen compared with the end of the previous fiscal year to 10,888 million yen. This
was attributable to an increase of 154 million yen in property, plant and equipment from an increase due to acquisition and adecrease due to depreciation, etc.; a decrease of 23 million yen in intangible assets; and an increase of 220 million yen in
investments and other assets.
As a result, total assets as at the end of the second quarter of the fiscal year under review increased 14,469 million yen
compared with the end of the previous fiscal year to 121,221 million yen.
(Liabilities)
Liabilities increased 9,391 million yen compared with the end of the previous fiscal year to 63,425 million yen. This wasprimarily attributable to an increase of 8,645 million yen in borrowings due to the difference between new fundraising andrepayment of borrowings, a decrease of 711 million yen in income taxes payable due to the payment of income taxes, anincrease of 922 million yen in deposits received from tenants of the properties managed by the Company, and an increase of
163 million yen in accounts payable due to construction work on properties, etc.
(Net assets)
Total net assets increased by 5,077 million yen compared to the end of the previous fiscal year to 57,796 million yen. Thiswas primarily attributable to an increase of 6,212 million yen in retained earnings following the recording of profit attributableto owners of parent, and a decrease of 1,572 million yen due to dividends of surplus, along with an increase of 326 million
yen due to the disposal of treasury stock as restricted stock compensation to the Company’s executives and employees.
The equity ratio as of the end of the second quarter of the fiscal year under review was 47.7%.
2) Cash Flows
Cash and cash equivalents (hereinafter, “funds”) at the end of the second quarter of the fiscal year under review increased
1,148 million yen compared with the end of the previous fiscal year to 28,660 million yen.
Cash flows in the first six months of the fiscal year under review and the major contributing factors are as follows.
(Cash flows from operating activities)
Net cash used in operating activities amounted to 5,507 million yen. The main factor for inflow was the increase in funds
related to 35,275 million yen in net sales in Value Creation Services. The main factors for outflow were the decrease in funds
related to 31,873 million yen of payment for purchases of real estate for sale, 4,475 million yen of payment in line with theprogressing development of real estate for sale in process and payment for repair works on real estate for sale in Value Creation
Services; the expenditure of selling, general and administrative expenses, and payment of income taxes.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 516 million yen. The main factor for inflow was 259 million yen inproceeds from the paid-in capital reduction of shares in affiliates, while main factors for outflow were 522 million yen forpurchase of property, plant and equipment and 213 million yen of loan payments.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 7,029 million yen. The main factor for inflow was the difference of
8,645 million yen between new fundraising and repayment of borrowings, and the main factor for outflow was dividends paidof 1,569 million yen.
(3) Explanation of Consolidated Financial Results Forecast and Other Information on Future Forecasts
The consolidated financial results forecast remain unchanged from the full-year consolidated financial results forecast in“Consolidated Financial Results for the Fiscal Year Ended March 31, 2023” announced on May 12, 2023.

－ 5 －2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Trade accounts receivable
Real estate for sale
Real estate for sale in process
Raw materials
Advance payments to suppliers
Income taxes refund receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Investments in capital
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－ 6 －As of June 30, 2023

27,524377
45,167
17,079
1,426
1,155
35
3,460
(10)
96,216

28,675437
40,06836,280
908
862
31
3,136
(67)
110,333

2,710
490
189
924
4,314

3,004
490
－
975
4,469

214
214

191
191

1,915
1,365
1,118
2,094
1,148
(1,636)
6,005
10,535
106,752

1,871
1,269
1,118
2,307
1,325
(1,665)6,226
10,888121,221

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Advances received
Provision for bonuses for directors (and otherofficers)
Provision for bonuses
Provision for loss on liquidation of subsidiaries andassociates
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deposits received from tenants
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－ 7 －As of June 30, 2023

1,359
1,048
4,052
652

1,479
1,211
3,340
756

－

67

－

85

123

－

993
8,230

1,290
8,232

41,3974,067
337
45,80354,03349,923
4,989
279
55,192
63,425100
6,899
45,964(473)
52,490100
7,119
50,604(367)
57,456

130
70
200
27
52,718
106,752

234
81
316
23
57,796
121,221

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income – Second Quarter of Consolidated Fiscal Year)(Millions of yen)Six months ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Rental income from buildings
Benefits income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for a financial loan
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Reversal of provision for loss on liquidation ofsubsidiaries and associates
Gain on capital reduction with compensation ofsubsidiaries and affiliates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Loss on withdrawal from businessTotal extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent－ 8 －Six months ended
September 30, 2023

18,88812,362
6,526
3,412
3,113

38,82826,238
12,589
2,958
9,631

4
2
22
296
9
335

7
2
1
244
18
274

233
3
－
23
260
3,188

259
108
84
13
465
9,440

0

－

－

123

－

67

0

190

5
0
242
248
2,940
314
394
709
2,230
(2)
2,233

－
－
－
－
9,631
3,383
39
3,423
6,208
(4)
6,212

(Quarterly Consolidated Statements of Comprehensive Income – Second Quarter of Consolidated Fiscal Year)(Millions of yen)Six months ended
September 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests－ 9 －Six months ended
September 30, 2023

2,230

6,208

146
1
147
2,378

104
10
115
6,323

2,381

6,328

(2)

(4)

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on liquidationof subsidiaries and associates
Gain on sale of non-current assets
Loss on retirement of non-current assets
Loss on sale of non-current assets
Loss on withdrawal from business
Gain on capital reduction with compensation ofsubsidiaries and affiliates
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in real estate for sale
Decrease (increase) in real estate for sale in process
Decrease (increase) in advance payments to suppliers
Decrease (increase) in deposits paid
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Increase/decrease in consumption taxes
payable/consumption taxes refund receivable
Increase (decrease) in lease deposits received
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from capital reduction of affiliated company
stock
Payments for investments in capital
Payment for withdrawal from golf course business
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Repayments of finance lease liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－ 10 －

Six months ended
September 30, 2023

2,940
326
－
0

9,631
236
153
86

－

(123)

(0)
5
0
242

－
－
－
－

－

(67)

(4)
233
2
2,791
(1,162)
293
(96)
(10)
(248)

(7)
259
(60)
5,212
(19,200)
294
158
102
423

(436)

959

(151)
(200)
4,524
3
(234)
(5,457)(1,164)921(150)(1,172)
6(258)(4,088)(5,507)

(508)
0
(155)

(522)
－
(10)

－

259

(550)
(131)
(308)
7
(13)
(1,658)

(0)
－
(213)
5
(33)
(516)

11,110(14,935)(7,824)(1,351)(44)(13,046)

25,730(17,084)(0)(1,569)
(45)
7,029

121

143

(15,747)
28,222
12,474

1,148
27,511
28,660(4) Notes on Quarterly Consolidated Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Notes in the Event of Material Change in the Amount of Shareholders’ Equity)(Disposal of Treasury Shares)
The Company disposed of 108,700 shares of treasury shares as restricted stock compensation to the executives andemployees in accordance with the resolution made at the Board of Directors meeting held on June 23, 2023. As a result,treasury shares decreased by 105 million yen during the first six months of the fiscal year, and treasury shares amounted to
367 million yen at the end of the second quarter.
(Segment Information)
Information on net sales and profit (loss) by reporting segment and breakdown information on revenues
I. Six Months Ended September 30, 2022 (April 1, 2022 to September 30 2022)(Millions of yen)
Reportable segments
Reconciling items

Total

Per quarterly
consolidated
financialstatements

Value Creation
Services

Value-Add
Services

Future Value
Creation Services

15,629326

1,019

16,976－

16,976

－

1,815

97

1,912

－

1,912

15,629

2,141

1,117

18,888－18,888

－

44

12

57

(57)

－

Net sales

15,629

2,186

1,130

18,946(57)

18,888Operating profit (loss)

4,840

344

(1,672)

3,513

(399)

3,113

Sales
Revenues generated
from contracts withcustomers
Other revenues
Revenues fromexternal customers
Transactions withother segments(Note) 1. The amount of -399 million yen in adjustments of segment profit (loss) is the elimination of inter-segment
transactions (0 million yen) and the company-wide expenses of administrative expenses (-399 million yen) thatare not allocated to each segment. The amount of segment profit (loss) after deduction of this adjustment is thesame as the amount of 3,113 million yen of operating profit stated in the quarterly consolidated statements ofincome.
2. Other revenues mostly consist of rental revenue based on the Accounting Standard for Lease Transactions.
II. Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(Millions of yen)
Reportable segments
Reconciling items

Total

Per quarterly
consolidated
financialstatements

Value Creation
Services

Value-Add
Services

Future Value
Creation Services

35,275413

926

36,614－36,614

－

2,115

97

2,213

－

2,213

35,275

2,528

1,024

38,828－38,828

－

46

3

49

(49)

－

Net sales

35,275

2,574

1,027

38,877(49)

38,828Operating profit (loss)

10,192685(742)

10,135

(504)

9,631

Sales
Revenues generated
from contracts withcustomers
Other revenues
Revenues fromexternal customers
Transactions withother segments(Note) 1. The amount of -504 million yen in adjustments of segment profit (loss) is the company-wide expenses ofadministrative expenses (-504 million yen) that are not allocated to each segment. The amount of segment profit(loss) after deduction of this adjustment is the same as the amount of 9,631 million yen of operating profit statedin the quarterly consolidated statements of income.
2. Other revenues mostly consist of rental revenue based on the Accounting Standard for Lease Transactions.

－ 11 －(Important Subsequent Events)
The Company resolved at its Board of Directors meeting held on September 19, 2023 (including the details of resolutions
at the Board of Directors meeting on October 27, 2023) to conduct a tender offer for its own shares (the “Tender Offer”) as a
specific method of such purchase pursuant to the provisions of Article 156, Paragraph 1 of the Companies Act as appliedmutatis mutandis pursuant to the provisions of Article 165, Paragraph 3 of the Act and Company’s Articles of Incorporation.
The Tender Offer ended on October 18, 2023, and the purchase of treasury shares based on the resolution of the Board of
Directors meeting held on September 19, 2023 ended with the end of the Tender Offer (number of shares purchased: 2,841,768
shares; total purchase amount: 8,982,828,648 yen; class of shares purchased: the Company’s common stock).
In addition, with the settlement of the Tender Offer completed on November 10, 2023, the Board of Directors resolved at
its meeting held on the same day to cancel the 2,841,700 treasury shares purchased in the Tender Offer pursuant to theprovisions of Article 178 of the Companies Act. The scheduled cancellation date is November 16, 2023 (total number of issued
shares after the cancellation: 26,239,700 shares).

－ 12 －