Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023 [J-GAAP]
July 28, 2022
Name of listed company:
Securities code:
Representative:
Contact:

ARTNATURE INC.
Listed on: Tokyo Stock Exchange
7823
URL: https://www.artnature.co.jp/english/index.html
Yoshikata Igarashi, Chairman and President
Hiroaki Inoue, General Manager, Finance & Accounting Division
TEL: +81-3-3379-3334
Senior Corporate Officer
Scheduled date of filing the quarterly financial report:
August 4, 2022―
Scheduled date of the start of dividends distribution:
Supplementary quarterly materials prepared:
None
Explanation meeting for quarterly financial results:
None(Figures shown are rounded down to the nearest million yen.)

1. Consolidated results for the first quarter ended June 30, 2022 (April 1, 2022 – June 30, 2022)(Percentage figures show changes from the previous year.)(1) Consolidated operating results
Net sales

Operating income

Millions of yen%
Millions of yen%
Millions of yen
Three months ended
June 30, 2022
10,414
9.5
1,225
35.5
1,260―June 30, 2021
9,513
75.7
904
842
Note: Comprehensive income:Three months ended June 30, 2022: ¥752 million (28.8%)
Three months ended June 30, 2021: ¥584 million (―%)

Net income per share
Three months ended
June 30, 2022
June 30, 2021

Net income attributable toowners of the parent
company

Ordinary income%

Millions of yen

%

49.7

790
488

61.8

――

Diluted net income
per share

Yen

Yen

24.60
15.22

24.32
15.07

(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Millions of yen

Millions of yen

As of June 30, 2022
45,933As of March 31, 2022
46,510(Reference) Equity capital: As of June 30, 2022: ¥24,684 million

24,903
24,596

Net assets per share%

53.7
52.4
As of March 31, 2022: ¥24,367 million

767.94758.47

2. Dividends
First quarter-end

Second quarter-end

Dividends per share
Third quarter-end

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2022―
14.00
Year ending March 31, 2023―
Year ending March 31, 2023
14.00
(forecast)
Note: Revisions to dividend forecasts published most recently: None―

14.00

28.00

―

14.00

28.00

Year-end

Annual

3. Consolidated financial forecast for the fiscal year ending March 31, 2023 (April 1, 2022 – March 31, 2023)(Percentage figures show changes from the previous year.)Net sales
Millions of yen

Operating income%

Millions of yen

Net income
attributable to ownersof the parent company

Ordinary income

Net income
per share%

Millions of yen%

Millions of yen%

Yen

Full year
41,9913.8
2,105 (30.3)
Note: Revisions to most recently announced results forecasts: None

2,155(29.1)

1,137(5.6)

35.40

Notes:(1) Significant changes to subsidiaries during the period (Transfers of specific subsidiaries with changes in the scope of consolidation): None
(2) Application of specific accounting methods for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies due to revision of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1):
None3) Changes in accounting estimates:
None4) Restatement of revisions:
NoneNote: More information is provided on page 7 of the supplementary materials, “2. Quarterly consolidated financial statements and related
notes, (3) Notes on quarterly consolidated financial statements (Changes in accounting policies).”(4) Number of outstanding shares (common stock):1) Number of shares issued and outstanding (including treasury shares)
As of June 30, 2022
34,393,200 shares
As of March 31, 2022
2) Number of treasury shares
As of June 30, 2022
2,249,539 shares
As of March 31, 2022
3) Average number of shares issued and outstanding in each period
Three months ended June 30, 2022
32,128,780 shares
Three months ended June 30, 2021

34,393,200 shares
2,266,339 shares
32,097,256 shares*This quarterly kessan tanshin document is outside the scope of audit procedures conducted by certified public
accountants or the independent auditor.

*

Explanation of the appropriate use of financial results forecasts; other important items(Cautionary statement regarding forward-looking statements, etc.)
Forward-looking statements in this document, including forecasts, are based on information available at the time of disclosure and on
certain assumptions deemed reasonable by the Company. Actual results may differ materially from forward-looking statements due to anumber of factors. For more information about these assumptions and other conditions that form the basis of these forecasts, please see
page 2 of the supplementary materials, “1. Analysis of operating results and financial position, (3) Qualitative information on consolidated
financial forecasts.”

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023
Contents
1. Analysis of operating results and financial position .............................................................................................................. 2(1) Analysis of operating results ................................................................................................................................................. 2(2) Analysis of financial position ............................................................................................................................................... 2(3) Qualitative information on consolidated financial forecasts ................................................................................................. 22. Quarterly consolidated financial statements and related notes ............................................................................................ 3(1) Quarterly consolidated balance sheets .................................................................................................................................. 3(2) Quarterly consolidated statements of income and comprehensive income .......................................................................... 5(Quarterly consolidated statements of income) .................................................................................................................... 5(Quarterly consolidated statements of comprehensive income) ........................................................................................... 6(3) Notes on quarterly consolidated financial statements .......................................................................................................... 7(Notes on the going concern assumption) ............................................................................................................................ 7(Notes on significant fluctuation in amounts of shareholders’ equity) ................................................................................. 7(Changes in accounting policies).......................................................................................................................................... 7–1–ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

1. Analysis of operating results and financial position(1) Analysis of operating results
Operating results for the first three months of fiscal 2023
During the first quarter of the consolidated fiscal year under review, the situation surrounding the Japanese economy remained
uncertain because the surge in crude oil and raw material prices, which was attributable to the Russian invasion of Ukraine andsharp weakening of the yen, started to affect consumer spending. However, there were signs of a recovery in consumer spending
following the easing of restraints on a range of activities that had been enforced to prevent the spread of COVID-19.
Against this backdrop, ARTNATURE INC. and its consolidated subsidiaries (the ARTNATURE Group) saw the ARTNATURE
Challenge Plan, the three-year medium-term management plan, mark its final year. Under the plan, we have been implementing
six priority challenge initiatives, as we did in the previous year: (1) grow the Group’s earnings, (2) develop new business fields,(3) reinforce recruitment, (4) cultivate human resources, (5) encourage dialogue with capital markets, and (6) drive business
innovation, with the aim of strengthening the ARNATURE Group’s position in existing businesses and further expanding new
businesses to build the foundations for a new ARTNATURE capable of opening up the next phase in the Group’s history. At
the same time, we have continued to take comprehensive measures to prevent COVID-19 infections in our business activities.
As a result, consolidated net sales in the first three months under review increased 9.5% year on year to ¥10,414 million. In
terms of profits, operating income stood at ¥1,225 million (increasing 35.5% year on year), and ordinary income came to¥1,260 million (increasing 49.7% year on year) due to an increase in net sales. Net income attributable to owners of the parentcompany was ¥790 million (increasing 61.8% year on year).
Business results by segment are as follows.
< Men’s business >Sales in the men’s business increased 1.5% year on year, to ¥5,394 million, as a result of the sale of new products and thepromotion of customer retention programs, among other initiatives.
< Ladies’ business >Sales in the ladies’ business climbed 19.5% year on year, to ¥3,561 million, mainly reflecting strong sales of new products andan increase in the number of exhibition and trial fitting events held as well as that of products sold.
< Ladies’ ready-made wigs business >Sales in the ladies’ ready-made wigs business rose 26.0% year on year, to ¥1,072 million, chiefly reflecting an increase in thenumber of products sold due to a rise in the number of customers visiting retail facilities in which the Company’s stores arelocated.
(2) Analysis of financial position
Assets, liabilities and net assets(Assets)
As of the end of the first quarter, total assets were ¥45,933 million, a decrease of ¥576 million compared with the end of theprevious fiscal year. Current assets decreased ¥758 million, mainly due to a fall in cash and deposits, while non-current assets
increased ¥181 million, primarily reflecting an increase in investments and other assets.
(Liabilities)
As of the end of the first quarter, liabilities totaled ¥21,030 million, a decrease of ¥883 million compared with the end of theprevious fiscal year. This was largely due to decreases in accounts payable-other, income taxes payable and advances received,
as well as a decrease of ¥946 million in current liabilities mainly due to increases in provision for bonuses and others in currentliabilities.
(Net Assets)
As of the end of the first quarter, net assets were ¥24,903 million, an increase of ¥306 million compared with the end of theprevious fiscal year. This largely reflected an increase in retained earnings.
(3) Qualitative information on consolidated financial forecasts
Consolidated financial forecasts for the fiscal year ending March 31, 2023 remain the same as those announced on May 13,2022.

–2–

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

2. Quarterly consolidated financial statements and related notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Accounts receivable – trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Others, net
Total property, plant and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
OthersAllowance for doubtful accountsTotal investments and other assets
Total non-current assets
Total assets–3–

As of June 30, 2022

19,546
3,066
23
3,050
182
1,195
964(5)
28,021

18,626
2,754
25
3,225
186
1,227
1,224(6)27,263

4,779
3,915
8,694

4,783
3,976
8,759

233
441
674

209
426
636

9,512
(393)
9,119
18,48846,5109,719(444)9,27418,67045,933

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Accounts payable – trade
Accounts payable – other
Income taxes payable
Advances received
Provision for bonuses
Provision for directors’ bonuses
Provision for product warranties
OthersTotal current liabilities
Non-current liabilities
Net defined benefit liability
Asset retirement obligations
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets–4–

As of June 30, 2022

320
2,288
929
6,502
1,053
145
36
2,961
14,237

408
1,145
639
6,155
1,550
37
37
3,315
13,290

4,170
1,547
1,959
7,676
21,914

4,205
1,571
1,963
7,739
21,0303,667
3,557
18,307(1,272)
24,2603,667
3,560
18,648(1,262)
24,613

62
14
29
106
217
12
24,596
46,510230
3871
208
1024,903
45,933

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023
(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(Millions of yen)Three months ended
June 30, 2021
9,513
3,085
6,428
5,523
904

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on investments in investment partnerships
Foreign exchange gains
OthersTotal non-operating incomeNon-operating expenses
Foreign exchange losses
Provision of allowance for doubtful accounts
Guarantee commission
OthersTotal non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Loss attributable to non-controlling interests
Net income attributable to owners of the parent company–5–

Three months ended
June 30, 2022
10,414
3,278
7,135
5,909
1,225

1110―
1436

15―
6910959816199842―516260
1,260

―
00841
459
(104)
354
487
(1)
488

022
1,258
566(97)
469
789
(0)
790

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023
(Quarterly consolidated statements of comprehensive income)(Millions of yen)Three months ended
June 30, 2021
487

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive incomeComprehensive income(Comprehensive income attributable to)
Owners of the parent company
Non-controlling interests–6–

Three months ended
June 30, 2022
789

1277
797584(60)
149(36)752585
(1)

754
(1)

ARTNATURE INC. (7823) Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023
(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
There is no related information.
(Notes on significant fluctuation in amounts of shareholders’ equity)
There is no related information.
(Changes in accounting policies)
The Company decided to start applying the Implementation Guidance on Accounting Standard for Fair Value Measurement(ASBJ Guidance No. 31, June 17, 2021; hereinafter the “Fair Value Measurement Implementation Guidance”) at the beginningof the first quarter under review, while also implementing the new accounting policy stipulated in the Fair Value Measurement
Implementation Guidance according to the provisional treatment provided for in Paragraph 27-2 of the Fair Value Measurement
Implementation Guidance into the future. This application has no impact on quarterly consolidated financial statements.

–7–