February 8, 2024

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2024
(Nine Months Ended December 31, 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:
Holding of quarterly financial results meeting:February 9, 2024
None
None

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

1. Consolidated Financial Results for the Nine Months Ended December 31, 2023
(April 1, 2023 – December 31, 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%
Nine months ended Dec. 31, 2023
16,1182.6
2,569 (13.4)
2,575 (12.3)
1,650 (14.7)
Nine months ended Dec. 31, 2022
15,708
7.1
2,969
15.3
2,936
14.1
1,934
16.4
Note: Comprehensive income (million yen)
Nine months ended Dec. 31, 2023: 1,650 (down 14.7%)
Nine months ended Dec. 31, 2022: 1,934 (up 16.4%)
Net income per share Diluted net income per share
Yen

Yen

Nine months ended Dec. 31, 2023
79.64
Nine months ended Dec. 31, 2022
91.53
Note: SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2023. Net income per share has been calculated
as if this stock split had taken place at the beginning of the previous fiscal year.
(2) Consolidated financial position

Total assets
Net assets
Million yen
Million yen
As of Dec. 31, 2023
36,00932,371
As of Mar. 31, 2023
36,22931,615
Reference: Shareholder’s equity (million yen) As of Dec. 31, 2023: 32,371

2. Dividends
1Q-endYen-

2Q-end
Yen
21.00
23.00

Equity ratio

%
89.9
87.3
As of Mar. 31, 2023: 31,615

Dividend per share
3Q-endYen-

Year-end
Yen
23.00

Total

Yen
Fiscal year ended Mar. 31, 2023
44.00
Fiscal year ending Mar. 31, 2024
Fiscal year ending Mar. 31, 2024 (forecast)
11.50
Notes: 1. Revisions to the most recently announced dividend forecast: None
2. SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2023. The interim and year-end dividends forthe fiscal year ended March 31, 2023 and the interim dividend for the fiscal year ending March 31, 2024 are the actual
amounts before the stock split.
The year-end dividend for the fiscal year ending March 31, 2024 (forecast) is the amount after the stock split.

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
Full year
22,700
4.8
3,570
(7.7)
3,560
(7.4)
2,270 (18.4)
109.37
Notes: 1. Revisions to the most recently announced consolidated forecast: None
2. SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2023. The net income per share forecast for
the fiscal year ending March 31, 2024 is adjusted to reflect the stock split. Prior to this adjustment, the forecast was a
net income per share of 218.75 yen for the full year.

* 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 Dec. 31, 2023:

23,400,000 shares

As of Mar. 31, 2023:

23,400,000 shares

As of Mar. 31, 2023:

2,441,444 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2023:

2,808,088 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2023: 20,728,872 shares

Nine months ended Dec. 31, 2022: 21,136,574 shares

Notes: 1. SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2023. The number of shares outstanding at theend of the period, the number of treasury shares at the end of the period and the average number of shares outstanding
during the period have been calculated as if this stock split had taken place at the beginning of the previous fiscal year.
2. 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 theaverage number of shares outstanding during the period (263,700 shares as of December 31, 2023 and 267,600 shares
as of December 31, 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 Third 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 Nine-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-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 Third Quarter of FY3/24

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
During the first nine months of the fiscal year ending in March 2024, the Japanese economy recovered at amoderate pace primarily because of pent-up demand. The recovery of the global economy slowed down andthere is considerable uncertainty about the outlook because of inflation and the high cost of resources.
In Japan’s funeral industry, where we operate, the demand for funeral services is expected to continue to growuntil 2040 as the number of people in Japan who are at least 65 years old increases. Although there is nochange in the fundamental role of funerals as a valuable place to say farewell to the deceased, there is anincreasing tendency for people to have small and simple funerals. The main reasons are the rising number offamilies consisting only of parents and children (nuclear families) and the pandemic. Competition in Japan’s
funeral market is intense, especially for small funerals, as funeral companies speed up the opening of new
locations nationwide, the number of websites that match funeral requirements with funeral companies
increases, and for other reasons. As a result, M&A and other activities for the reorganization of the funeral andend-of-life support business sectors are increasing.
In May 2022, SAN HOLDINGS announced a New 10-Year Vision that defines the goals for the SAN
HOLDINGS Group as the group looks ahead to its 100th anniversary in 2032. As one step for accomplishing
this vision, a medium-term management plan covering the three-year period ending in March 2025 is underway. The plan has the primary goals of achieving the growth of the funeral business and the growth of theend-of-life support business.
In March 2023, we launched ENDING HAUS. as a brand for family funerals with outstanding quality atreasonable prices. This is part of activities for the growth of the funeral business, which is one of the main
goals of the medium-term management plan. New ENDING HAUS locations will consist of both funeral halls
operated directly by SAN HOLDINGS and locations added through acquisitions. The plan is to increase the
network of ENDING HAUS funeral halls to 31 by the end of the current medium-term management plan.
On December 21, 2023, we announced an agreement for the acquisition of Tokyo Ceremony Co., Ltd., which is
now a wholly owned subsidiary. This acquisition was made to increase the pace of the addition of ENDING
HAUS locations in the Tokyo area. Combining the Tokyo Ceremony infrastructure for providing outstanding
services with the funeral hall network expansion strategy and funeral hall operating skills of SAN HOLDINGS
is expected to make a big contribution to growth in the Tokyo area.
During the first nine months, funeral service revenue at the three funeral companies of the SAN HOLDINGSGroup was 0.7% higher than one year earlier. Although the number of funerals decreased 1.1%, the averagerevenue per funeral was up 1.8%, which was mainly the result of higher revenue at ordinary funerals (less than
5 million yen). The number of deaths in Japan during the first nine months was lower than one year earlier
because of the end of the increase in the number of deaths caused by the pandemic that had continued
throughout 2022 and into early 2023. The smaller number of deaths had an effect to some extent on the numberof funerals at SAN HOLDINGS funeral companies.
In addition, sales of products and services associated with funerals increased as there were higher sales mainlyof family altars and fixtures and courtesy gifts.
Operating expenses increased 6.2%. The main reasons were higher personnel and recruiting expenses to handle
more funerals as new funeral halls are added and to strengthen the workforce to support more sales growth,higher building and land leasing expenses due to new funeral halls, and higher up-front advertising expenses.
Selling, general and administrative expenses increased 8.4%. This was attributable primarily to higher
software depreciation expenses due to the start of operations of a core IT system.
Operating revenue increased 2.6% year on year to 16,118 million yen. Operating profit was down 13.4% to
2,569 million yen due to planned up-front investments for future growth. Ordinary profit decreased 12.3% to2,575 million yen. After taxes, profit attributable to owners of parent was 1,650 million yen, 14.7% lower thanin the first nine months of the previous fiscal year. The equity-method profit associated with GRAN CEREMO
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SAN HOLDINGS, INC. (9628) Financial Results for the Third Quarter of FY3/24

TOKYO CO., LTD. steadily increased to 16 million yen in the first nine months. This funeral company wasestablished in April 2022 and is 51% owned by Kosaido Holdings Co., Ltd. and 49% owned by SANHOLDINGS.
The SAN HOLDINGS Group has segments based on companies, primarily the three funeral companies 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
CO., LTD., EXCEL SUPPORT SERVICE CO., LTD., where operations include funeral support services for thefunerals of KOEKISHA, senior care services, food services for senior care facilities and other activities, andLife Forward CO., LTD., which operates an internet platform for end-of-life services and other assistance.
Tokyo Ceremony is not included in results of operations in the first nine months of this fiscal year and will be
included beginning with the fourth quarter.
Business segment performance was as follows.
1) The KOEKISHA GroupAt KOEKISHA CO., LTD., the core company of this segment, the average revenue per funeral increased 1.7%
year on year but the number of funerals decreased 2.3% year on year due to a smaller number of pandemic
death funerals. As a result, funeral service revenue decreased 0.6% year on year.
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 and recruiting expenses to increase thenumber of funerals for the opening of new funeral halls and to strengthen the workforce in preparation forsales growth, and higher up-front advertising expenses.
Sales in the KOEKISHA Group segment were 13,227 million yen, up 1.7% year on year, and the segment profit
was 1,549 million yen, down 15.1%.
2) The SOU-SEN GroupAt SOU-SEN Corporation, the number of funerals was mostly unchanged from one year earlier. Averagerevenue per funeral continued to increase due to rising number of mourners. The result was a 6.4% increase infuneral service revenue. Sales of products and services associated with funerals were higher than one year
earlier because of heightened emphasis on these sales that resulted mainly in an increase in sales of courtesy
gifts and of family altars and fixtures.
Sales in the SOU-SEN Group segment were 1,163 million yen, up 7.4% year on year, and the segment profit
was 109 million yen, up 4.8%.
3) The TARUI GroupAt TARUI CO., LTD., the number of funerals remained strong, increasing 8.7% from one year earlier due tomore funerals mainly at new halls for small funerals. Although the average revenue per funeral decreased,
funeral service revenue increased 7.1%. Sales of products and services associated with funerals increased
mainly due to an increase in sales of family altars and fixtures and courtesy gifts.
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 1,441 million yen, up 8.1% year on year, and the segment profit was
308 million yen, up 19.6%.
4) Holding Company GroupOperating revenue at SAN HOLDINGS increased mainly because of an increase in dividend income.

3

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

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 5,545 million yen, up 9.3% year on year, and the segment
profit was 2,792 million yen, up 11.0%.
(2) Explanation of Financial Position
AssetsCurrent assets at the end of the third quarter were 10,880 million yen, down 158 million yen from the end of
the previous fiscal year. This was mainly due to a 694 million yen decrease in cash and deposits.
Non-current assets were 25,129 million yen, down 60 million yen from the end of the previous fiscal year. The
decrease was attributable primarily to a 38 million yen increase in property, plant and equipment, the net resultof an increase in construction in progress mainly due to investments in new halls and a decrease due todepreciation, a 213 million yen decrease in investments and other assets mainly caused by a decrease indeferred tax assets and a 115 million yen increase in intangible assets associated with the installation of a coredata system.
As a result, total assets decreased 219 million yen from the end of the previous fiscal year to 36,009 million
yen.
Liabilities
Current liabilities at the end of the third quarter were 2,630 million yen, down 929 million yen from the end of
the previous fiscal year. This was mainly due to decreases of 584 million yen in income taxes payable and 297
million yen in provision for bonuses.
Non-current liabilities were 1,008 million yen, a decrease of 45 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 975 million yen from the end of the previous fiscal year to 3,638 million
yen.
Net assets
Net assets were 32,371 million yen at the end of the third quarter, up 755 million yen from the end of theprevious fiscal year.
The main factors include profit attributable to owners of parent of 1,650 million yen, a 1,165 million yen
increase in retained earnings due to dividend payments of 485 million yen and purchase of treasury shares inan amount of 456 million yen.
Consequently, the equity ratio increased 2.6 percentage points from the end of the previous fiscal year to89.9%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There are no revisions to the consolidated forecast for the fiscal year ending in March 2024 that wasannounced on May 11, 2023.

4

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

FY3/23(As of Mar. 31, 2023)
AssetsCurrent assets
Cash and deposits

9,192

8,498

Accounts receivable and contract assets

919

1,193

Merchandise and finished goods

122

141

Raw materials and supplies

29

38

Other

777

1,011

Allowance for doubtful accounts

(1)

(2)

11,03910,880Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

9,840

9,642

Land

12,25012,250

Leased assets, net

242

240

Other, net

150

387

22,48322,521

398

513

Total property, plant and equipment
Intangible assets
Investments and other assets
Long-term loans receivable

166

157

Beneficial interests in real estate trust

475

442

Investment securities

85

101

Guarantee deposits

794

808

Other

795

594

Allowance for doubtful accounts

(9)

(10)

Total investments and other assets

2,308

2,094

25,18925,12936,22936,009Total non-current assets
Total assets

5

SAN HOLDINGS, INC. (9628) Financial Results for the Third Quarter of FY3/24(Millions of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

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

993

926

Lease liabilities

94

93

Income taxes payable

666

81

Provision for bonuses

520

223

Provision for bonuses for directors (and other officers)

58

45

Other

1,226

1,260

Total current liabilities

3,559

2,630

Non-current liabilities
Lease liabilities

174

171

Asset retirement obligations

512

521

Provision for employee stock ownership plan trust

49

56

Other
Total non-current liabilities
Total liabilities

317

259

1,054

1,008

4,613

3,638

Net assets
Shareholders’ equity
Share capital

2,568

2,568

Capital surplus

5,488

5,505

Retained earnings

25,153

26,318Treasury shares(1,594)(2,020)Total shareholders’ equity

31,61532,371

31,61532,371

36,22936,009Total net assets
Total liabilities and net assets

6

SAN HOLDINGS, INC. (9628) Financial Results for the Third Quarter of FY3/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)(Millions of yen)First nine months of FY3/23
First nine months of FY3/24(Apr. 1, 2022 – Dec. 31, 2022) (Apr. 1, 2023 – Dec. 31, 2023)

Operating revenue

15,708

16,118Operating expenses

11,686

12,407

Operating gross profit

4,022

3,710

Remuneration for directors (and other officers)

128

133

Salaries

253

257

Bonuses

59

62

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

24

24

43

45

0

1

Selling, general and administrative expenses

Depreciation

20

63

Other

521

552

1,053

1,141

2,969

2,569

Interest income

1

1

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

0

0

-

16

21

15

Total non-operating income

23

33

Total selling, general and administrative expenses
Operating profit
Non-operating income

Non-operating expenses
Interest expenses

00

Dismantling removal expense
Share of loss of entities accounted for using equity
methodMiscellaneous losses

23

19

21

-

11

9

Total non-operating expenses

56

28

2,936

2,575

Gain on sale of non-current assets

4-

Total extraordinary income

4-

Loss on retirement of non-current assets

6

16

Total extraordinary losses

6

16

2,935

2,558

953

710

Ordinary profit
Extraordinary income

Extraordinary losses

Profit before income taxes
Income taxes-current
Income taxes-deferred

46

196

Total income taxes

1,000

907

Profit

1,934

1,650

Profit attributable to owners of parent

1,934

1,650

7

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

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)(Millions of yen)First nine months of FY3/23
First nine months of FY3/24(Apr. 1, 2022 – Dec. 31, 2022) (Apr. 1, 2023 – Dec. 31, 2023)

Profit

1,934

1,650

-

-

1,934

1,650

1,934

1,650

-

-

Other comprehensive income
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

8

SAN HOLDINGS, INC. (9628) Financial Results for the Third 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 nine months of FY3/23 (Apr. 1, 2022 – Dec. 31, 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
HoldingCompanyGroup

KOEKISHAGroup

SOU-SENGroup

10,551

948

1,232

-

12,732-

12,732

2,428

135

101

-

2,665

-

2,665

12,980

1,083

1,334

-

15,397-

15,397

-

-

-

310

310

-

310

External sales
Inter-segment sales
and transfers
Total

12,980

1,083

1,334

310

15,708-15,708

26

-

0

4,764

4,790

(4,790)-13,006

1,083

1,334

5,074

20,499(4,790)15,708Segment profit

1,825

104

258

2,514

4,702

(1,766)2,936

Net sales
Funeral service
revenue
Other
Revenue fromcontracts withcustomers
Other revenue

TARUI
Group

Notes: 1. Contents of adjustment to segment profit are as follows.

Total(Millions of yen)AmountElimination of amount equivalent to dividends paid tothe holding company by consolidated subsidiaries
Adjustment of allowance for doubtful accounts related
to the netting elimination of assets and liabilities
Total(1,765)(1)(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 Third Quarter of FY3/24

II . First nine months of FY3/24 (Apr. 1, 2023 – Dec. 31, 2023)
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
HoldingCompanyGroup

KOEKISHAGroup

SOU-SENGroup

10,490

1,008

1,319

-

12,818-12,818

2,711

154

122

-

2,988

-

2,988

13,201

1,163

1,441

-

15,806-15,806

-

-

-

311

311

-

311

External sales
Inter-segment sales
and transfers
Total

13,201

1,163

1,441

311

16,118-

16,118

26

-

-

5,233

5,259

(5,259)-13,227

1,163

1,441

5,545

21,378(5,259)16,118Segment profit

1,549

109

308

2,792

4,760

(2,185)2,575

Net sales
Funeral service
revenue
Other
Revenue fromcontracts withcustomers
Other revenue

TARUI
Group

Notes: 1. Contents of adjustment to segment profit are as follows.

Total(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