August 8, 2023

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2024
(Three Months Ended June 30, 2023)
Company name:
Stock code:
Representative:
Contact:[Japanese GAAP]SAN HOLDINGS, INC.
Listing: Tokyo Stock Exchange
9628
URL: https://www.san-hd.co.jp
Satoshi Harishima, President and Representative Director
Yoshiyuki Yokota, Director, Executive Officer, General Manager of Corporate Planning
Department

Tel: +(81)6-6226-0038

Scheduled date of filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Scheduled date of filing of Quarterly Report:

August 10, 2023
None
None

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023
(April 1, 2023 – June 30, 2023)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toOperating revenue
Operating profit
Ordinary profit
owners of parent
Million yen% Million yen% Million yen% Million yen%
Three months ended Jun. 30, 2023
5,081
4.6
761
(9.2)
766
(7.2)
497
(5.5)
Three months ended Jun. 30, 2022
4,856
(1.2)
838 (10.3)
825 (12.1)
526 (13.8)
Note: Comprehensive income (million yen)Three months ended Jun. 30, 2023: 497 (down 5.5%)
Three months ended Jun. 30, 2022: 526 (down 13.8%)
Diluted net income
Net income per shareper share
Three months ended Jun. 30, 2023
Three months ended Jun. 30, 2022

Yen

Yen

47.79
49.41

-

(2) Consolidated financial position

Total assets
Net assets
Million yen
Million yen
As of Jun. 30, 2023
35,26431,556
As of Mar. 31, 2023
36,22931,615
Reference: Shareholder’s equity (million yen) As of Jun. 30, 2023: 31,556

2. Dividends
1Q-endYen-

2Q-endYen
21.00

Fiscal year ended Mar. 31, 2023
Fiscal year ending Mar. 31, 2024
Fiscal year ending Mar. 31, 2024 (forecast)
23.00
Note: Revisions to the most recently announced dividend forecast: None

Equity ratio

%
89.5
87.3
As of Mar. 31, 2023: 31,615

Dividend per share
3Q-endYen-

Year-end
Yen
23.00
23.00

Total

Yen
44.00
46.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Operating revenue
Operating profit
Ordinary profit
owners of parent
shareMillion yen%
Million yen%
Million yen%
Million yen%
Yen
10,6005.1
1,470 (17.5)
1,450 (17.8)
920 (24.5)
87.20
First half
22,700
4.8
3,570
(7.7)
3,560
(7.4)
2,270 (18.4)
215.17Full year
Notes: 1. Revisions to the most recently announced consolidated forecast: None
2. Net income per share is calculated based on the average number of shares outstanding during the period, which uses thenumber of shares outstanding as of March 31, 2023 (excluding treasury shares).

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2023:

11,700,000 shares

As of Mar. 31, 2023:

11,700,000 shares

As of Mar. 31, 2023:

1,220,722 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2023:

1,359,822 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2023: 10,402,280 shares

Three months ended Jun. 30, 2022:10,649,721 shares

Note: The SAN HOLDINGS’ stock held by the Employee Stock Ownership Plan are included in the treasury shares that are
deducted from the number of shares for calculating the number of treasury shares at the end of the period and the average
number of shares outstanding during the period (132,900 shares as of June 30, 2023 and 134,400 shares as of June 30,2022).
* The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
* Explanation of appropriate use of earnings forecasts, and other special items
Note concerning forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available tothe management of SAN HOLDINGS at the time the materials were prepared, but are not promises by SAN HOLDINGS
regarding future performance. Actual results may differ materially from the forecasts. Please refer to “1. Qualitative
Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 4 for forecast assumptions and notes of caution for usage.

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

4(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Three-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Segment and Other Information

91

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first quarter of the fiscal year ending in March 2024, the Japanese economy showed a recovery due
to a slow increase in consumer spending centered on face-to-face services as most restrictions involving the
pandemic ended. The outlook for the economy is still uncertain because of the risk of a downturn of overseas
economies caused primarily by worldwide monetary tightening, concerns about inflation and other sources of
uncertainty.
In Japan’s funeral industry, the potential demand for funerals is expected to increase every year until 2040
because of the growing number of people in Japan who are at least 65 years old. At the same time, there is anincreasing tendency for people to have small and simple funerals due to the rising number of families
consisting only of parents and children (nuclear families). Even during the pandemic, there was no change inthe fundamental role of funerals as a valuable place to say farewell to the deceased. However, the pandemic
increased the speed of the shift to small and simple funerals. In addition, competition has become increasingly
heated, especially for small funerals, as companies step up the pace of opening new funeral halls nationwide,
more companies are providing matching services for selecting funeral companies, and due to other events.
Many activities are under way based on the medium-term management plan that covers the three-year period
ending in March 2025. The plan is centered on the SAN HOLDINGS Group’s 10-year vision that includes
establishing a nationwide network of funeral halls and expanding the end of life support business.
In March 2023, we launched ENDING HAUS. as a brand for family funerals with outstanding quality atreasonable prices and opened four halls at the same time. This step is part of activities for the growth of thefuneral business, which is one of our highest priorities. Our goal is to open 31 funeral halls during the next
three years, primarily by using this new brand. We plan to open eight funeral halls during the current fiscal
year.
In the first quarter of the current fiscal year, funeral service revenue at the three funeral companies of the SAN
HOLDINGS Group was 1.5% higher than one year earlier. While the Group’s average revenue per funeral was
down 1.0% from one year earlier mainly due to lower sales from large funerals (more than 5 million yen), thenumber of funerals increased by 2.6% from one year earlier due to the opening of new funeral halls. Sales of
products and services associated with funerals increased as there were higher sales mainly of food, family
altars and fixtures and courtesy gifts.
Operating expenses increased 7.7%. The main reasons were higher personnel expenses to increase the numberof funerals for the opening of new funeral halls and to strengthen the workforce in preparation for sales growth,higher advertising expenses to strengthen marketing activities, and higher building and land leasing expenses
due to the opening of new funeral halls. Selling, general and administrative expenses increased 6.2%. This was
attributable primarily to higher depreciation expenses of software due to the start of operations of a core IT
system.
Operating revenue increased 4.6% year on year to 5,081 million yen. Operating profit was down 9.2% to 761
million yen partially due to investments for future growth. Ordinary profit decreased 7.2% to 766 million yen.
After taxes, profit attributable to owners of parent was 497 million yen, 5.5% lower than in the first quarter ofthe previous fiscal year. There was an improvement from an equity-method loss of 15 million yen one year
earlier to an equity-method profit of 4 million yen in the first quarter of the current fiscal year associated withGrand Ceremo Tokyo Co., Ltd. This funeral company was established in April 2022 and is 51% owned by
Kosaido Holdings Co., Ltd. and 49% owned by SAN HOLDINGS.
The SAN HOLDINGS Group is composed of segments based on companies, primarily the three funeralcompanies and SAN HOLDINGS, the holding company. There are four reportable segments: KOEKISHA
Group, SOU-SEN Group, TARUI Group and Holding Company Group. The KOEKISHA Group segment
includes KOEKISHA, Excel Support Service Co., Ltd., where operations include funeral support services by
KOEKISHA, senior care services, food services for senior care facilities and other activities, and Life Forward

2

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24

Co., Ltd., which operates an internet platform for end-of-life services and other assistance. Business segment
performance was as follows.
1) The KOEKISHA GroupAt KOEKISHA CO., LTD., the core company of this segment, the number of funerals increased 2.0% year on
year as the number of ordinary funerals (less than 5 million yen) increased mainly because of the opening offuneral halls. Average revenue per funeral decreased 1.3% year on year because revenue from large funerals(more than 5 million yen) decreased although revenue from ordinary funerals was largely unchanged.
Sales of products and services associated with funerals were higher than one year earlier because of heightenedemphasis on these sales that resulted mainly in an increase in sales of food, family altars and fixtures andcourtesy gifts.
Operating expenses were higher because of the higher personnel expenses to increase the number of funerals
for the opening of new funeral halls and to strengthen the workforce in preparation for sales growth, higher
advertising expenses to strengthen marketing activities, and higher building and land leasing expenses due tothe opening of new funeral halls.
Sales in the KOEKISHA Group segment were 4,195 million yen, up 4.1% year on year, and the segment profit
was 415 million yen, down 12.4%.
2) The SOU-SEN GroupAt SOU-SEN CORPORATION, the number of funerals increased 4.9% overall because of the larger number offunerals mainly in the Yonago and Sakaiminato areas. Average revenue per funeral increased due to risingnumber of mourners. The result was a 15.2% increase in funeral service revenue. Sales of products andservices associated with funerals were higher than one year earlier because of heightened emphasis on thesesales that resulted mainly in an increase in sales of family altars and fixtures and courtesy gifts.
Sales in the SOU-SEN Group segment were 378 million yen, up 18.6% year on year, and the segment profit
was 30 million yen, up 155.4%.
3) The TARUI GroupAt TARUI CO., LTD., the number of funerals increased 5.0% due to more funerals mainly at new halls tohandle small funerals. Average revenue per funeral decreased. As a result, funeral service revenue decreased
1.2%. Sales of products and services associated with funerals increased due to an increase in sales of courtesy
gifts and family altars and fixtures.
Expenses were higher mainly because of higher advertising and building and land leasing expenses due to the
opening of new funeral halls.
Sales in the TARUI Group segment were 414 million yen, up 0.8% year on year, and the segment profit was 62
million yen, down 11.9%.
4) Holding Company GroupOperating revenue at SAN HOLDINGS increased mainly because of an increase in dividend income.
Fixed expenses were higher mainly because of building and land leasing and depreciation expenses at new
funeral halls.
Sales in the Holding Company Group segment were 3,299 million yen, up 15.2% year on year, and the segment
profit was 2,443 million yen, up 20.1%.

3

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24(2) Explanation of Financial Position
AssetsCurrent assets at the end of the first quarter were 10,318 million yen, down 720 million yen from the end of theprevious fiscal year. This was mainly due to a 1,001 million yen decrease in cash and deposits while there wasa 415 million yen increase in income taxes refund receivable.
Non-current assets were 24,946 million yen, down 243 million yen from the end of the previous fiscal year.
The decrease was attributable primarily to a 15 million yen decrease in property, plant and equipment, the net
result of an increase in construction in progress mainly due to investments in new halls and a decrease due todepreciation, and a 226 million yen decrease in investments and other assets caused by a decrease in deferred
tax assets.
As a result, total assets decreased 964 million yen from the end of the previous fiscal year to 35,264 million
yen.
Liabilities
Current liabilities at the end of the first quarter were 2,679 million yen, down 879 million yen from the end of
the previous fiscal year. This was mainly due to decreases of 288 million yen in trade accounts payable, 629
million yen in income taxes payable, 142 million yen in accounts payable-other, and 324 million yen inprovision for bonuses, while there was an increase in deposits involving tax withheld from dividend payments.
Non-current liabilities were 1,029 million yen, a decrease of 25 million yen from the end of the previous fiscal
year. This was mainly due to a decrease in long-term accounts payable-other.
As a result, total liabilities decreased 905 million yen from the end of the previous fiscal year to 3,708 million
yen.
Net assets
Net assets were 31,556 million yen at the end of the first quarter, down 58 million yen from the end of theprevious fiscal year.
The main factors include profit attributable to owners of parent of 497 million yen, a 253 million yen increase
in retained earnings due to dividend payments of 244 million yen and purchase of treasury shares in an amountof 312 million yen during the first quarter.
Consequently, the equity ratio increased 2.2 percentage points from the end of the previous fiscal year to89.5%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There are no revisions to the forecast for the fiscal year ending in March 2024 that was announced on May 11,
2023

4

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/24(As of Jun. 30, 2023)

FY3/23(As of Mar. 31, 2023)
AssetsCurrent assets
Cash and deposits
Trade accounts receivable from contracts withcustomers
Merchandise and finished goods

9,192

8,190

919

899

122

123

Raw materials and supplies

29

29

Other

777

1,077

Allowance for doubtful accounts

(1)

(1)

11,03910,318

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

9,840

9,752

Land

12,25012,250

Leased assets, net

242

232

Other, net

150

232

22,483

22,467398

397

Long-term loans receivable

166

166

Beneficial interests in real estate trust

475

451

Investment securities

85

89

Guarantee deposits

794

791

Other

795

592

Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(9)

(8)

Total investments and other assets

2,308

2,081

25,18924,94636,22935,264

Total non-current assets
Total assets

5

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24(Millions of yen)First quarter of FY3/24(As of Jun. 30, 2023)

FY3/23(As of Mar. 31, 2023)
Liabilities
Current liabilities
Trade accounts payable

993

704

Lease liabilities

94

92

Income taxes payable

666

36

Provision for bonuses

520

195

Provision for bonuses for directors (and other officers)

58

9

Other

1,226

1,640

Total current liabilities

3,559

2,679

Non-current liabilities
Lease liabilities

174

164

Asset retirement obligations

512

521

Provision for employee stock ownership plan trust

49

52

Other
Total non-current liabilities
Total liabilities

317

290

1,054

1,029

4,613

3,708

Net assets
Shareholders’ equity
Share capital

2,568

2,568

Capital surplus

5,488

5,488

Retained earnings

25,15325,406

Treasury shares(1,594)(1,906)

Total shareholders’ equity

31,61531,556

31,61531,55636,22935,264

Total net assets
Total liabilities and net assets

6

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)(Millions of yen)First three months of FY3/23 First three months of FY3/24(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2023 – Jun. 30, 2023)

Operating revenue

4,856

5,081

Operating expenses

3,667

3,948

Operating gross profit

1,188

1,132

Remuneration for directors (and other officers)

44

44

Salaries

86

85

Bonuses

7

11

Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision of allowance for doubtful accounts

20

19

8

9

(0)

(0)

Selling, general and administrative expenses

Depreciation

2

20

Other

179

180

Total selling, general and administrative expenses

349

370

838

761

Interest income

00Dividend income
Share of profit of entities accounted for using equity
methodMiscellaneous income

0

0

-

4

4

4

Total non-operating income

49Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodMiscellaneous losses

0

0

15

-

2

4

Total non-operating expenses

18

4

825

766

Loss on retirement of non-current assets

00

Total extraordinary losses

00Profit before income taxes

824

765

Income taxes-current

106

63

Income taxes-deferred

191

205

Total income taxes

298

268

Profit526

497

Profit attributable to owners of parent

526

497

Ordinary profit
Extraordinary losses

7

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)(Millions of yen)First three months of FY3/23 First three months of FY3/24(Apr. 1, 2022 – Jun. 30, 2022) (Apr. 1, 2023 – Jun. 30, 2023)

Profit526

497

Comprehensive income

526

497

526

497

-

-

Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

8

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment and Other Information
I . First three months of FY3/23 (Apr. 1, 2022 – Jun. 30, 2022)
1. Information related to net sales, profit or loss for each reportable segment and breakdown of revenue(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 1)statement ofincome(Note 2)

Reportable segment

Net sales
Funeral service
revenue
Other
Revenue fromcontracts withcustomers
Other revenue
External sales
Inter-segment sales
and transfers
Total
Segment profit

HoldingCompanyGroup

KOEKISHAGroup

SOU-SEN
Group

TARUI
Group

3,310

280

383

-

3,973

-

3,973

711

38

28

-

778

-

778

4,022

318

411

-

4,752

-

4,752

-

-

-

103

103

-

103

4,022

318

411

103

4,856

-

4,856

9

-

0

2,760

2,770

(2,770)

-

4,031

318

411

2,864

7,626

(2,770)

4,856

473

11

70

2,034

2,591

(1,766)

825

Total

Notes: 1. Contents of adjustment to segment profit are as follows.
(Millions of yen)AmountElimination of amount equivalent to dividends paid tothe holding company by consolidated subsidiaries(1,765)Adjustment of allowance for doubtful accounts related
to the netting elimination of assets and liabilities

(1)

Total

(1,766)

2. Segment profit is adjusted to be consistent with ordinary profit recorded in the quarterly consolidated statementof income.
2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Not applicable.

9

SAN HOLDINGS, INC. (9628) Financial Results for the First Quarter of FY3/24

II . First three months of FY3/24 (Apr. 1, 2023 – Jun. 30, 2023)
1. Information related to net sales, profit or loss for each reportable segment and breakdown of revenue
Reportable segment

Net sales
Funeral service
revenue
Other
Revenue fromcontracts withcustomers
Other revenue
External sales
Inter-segment sales
and transfers
Total
Segment profit

HoldingCompany
Group

TARUI
Group

(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 1)statement ofincome(Note 2)

KOEKISHAGroup

SOU-SEN
Group

3,326

325

379

-

4,030

-

4,030

859

52

35

-

948

-

948

4,186

378

414

-

4,978

-

4,978

-

-

-

102

102

-

102

4,186

378

414

102

5,081

-

5,081

9

-

-

3,197

3,206

(3,206)

-

4,195

378

414

3,299

8,287

(3,206)

5,081

415

30

62

2,443

2,951

(2,185)

766

Total

Notes: 1. Contents of adjustment to segment profit are as follows.
(Millions of yen)AmountElimination of amount equivalent to dividends paid tothe holding company by consolidated subsidiaries(2,184)

Adjustment of allowance for doubtful accounts related
to the netting elimination of assets and liabilities(0)(2,185)Total

2. Segment profit is adjusted to be consistent with ordinary profit recorded in the quarterly consolidated statementof income.
2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment
Not applicable.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.

10