Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Summary of Non-consolidated Financial Results
for the Year Ended July 31, 2023
[Based on Japanese GAAP]
September 11, 2023
Company name: SILVER LIFE CO., LTD.
Stock exchange listing: Tokyo
Code number: 9262
URL: https://www.silver-life.co.jp/
Representative: Takahisa Shimizu
President, CEOContact: Hirokazu Masuyama
Director, Administration ManagerPhone: +81-03)6300-5629
Scheduled date of Annual General Meeting of Shareholders: October 27, 2023
Scheduled date of commencing dividend payments: October 30, 2023
Scheduled date of filing annual securities report: October 30, 2023
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down.)
1. Non-consolidated Financial Results for the Fiscal Year Ended July 31, 2023 (August 1, 2022 to July 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
July 31, 2023
July 31, 2022

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

12,266
11,215

9.4
11.6

670
561

19.3
(33.1)

857
709

20.9(27.1)

602
401

49.9(26.4)

Basic earnings per Diluted earnings per Rate of return on
share
shareequity

Ordinary profit tototal assets ratio

Yen
Yen%
Fiscal year ended
July 31, 2023
55.74
55.02
10.7
July 31, 2022
37.2636.66
7.9(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended July 31, 2023:
Fiscal year ended July 31, 2022:

Operating profit tonet sales ratio

%%

9.3
8.3
¥
¥

5.5
5.0
millionmillion(2) Non-consolidated Financial Position
Total assets
As ofJuly 31, 2023
July 31, 2022
(Reference) Equity:

Net assets

Millions of yen

Millions of yen

9,562
8,859
As of July 31, 2023:
As of July 31, 2022:

Capital adequacy ratio

¥¥

5,916
5,304
5,916 million
5,304 million

Net assets per share%Yen

61.9
59.9

545.65491.51(3) Non-consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
July 31, 2023
July 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,201
1,209(937)(1,470)

(230)
263

1,507
1,474

―1―2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end
Fiscal year ended

Year-end
Yen

Total
dividends

TotalDividends
to netassets

Payout
ratio

Yen

Yen

Yen

Yen Millions of yen%%

July 31, 2022

-

0.00

-

0.00

0.00

---

July 31, 2023

-

0.00

-

15.00

15.00

162

26.9

2.9

-

0.00

-

15.00

15.00

Fiscal year ending
July 31, 2024

26.2

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended July 31, 2023 :Commemorative dividend- yenSpecial dividend- yen
3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending July 31, 2024 (August 1, 2023 to July 31, 2024)(% indicates changes from the previous corresponding period.)
Net sales

Six months ending January
31, 2024
Full year

Operating profit

Ordinary profit

Basic earnings pershare

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

6,550

8.9

435

4.2

529

4.3

345

8.6

31.82

13,100

6.8

760

13.4

950

10.7

620

2.9

57.18

* Notes:(1) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(2) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
July 31, 2023:
10,842,800 shares
July 31, 2022:
10,792,400 shares
2) Number of treasury shares at the end of the period:
July 31, 2023:
422 shares
July 31, 2022:
399 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended July 31, 2023:
Fiscal Year ended July 31, 2022:

10,811,156 shares
10,786,519 shares―2―Non-consolidated Financial Statements
Non-consolidated Balance Sheets(Thousands of yen)
As of July 31, 2023

As of July 31, 2022
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

1,474,844
1,019,139

1,507,524
1,138,985

Merchandise and finished goods
Raw materials and supplies

287,792
28,053

420,316
45,642

Prepaid expenses
Accounts receivable - other55,560333,81258,071
381,663

Other
Allowance for doubtful accounts

92,089(58,705)

106,139(78,858)

3,232,587

3,579,485

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

3,477,453

3,733,475

Accumulated depreciation(460,923)(697,423)

Buildings, net

3,016,529

3,036,051

142,721

206,896

Structures
Accumulated depreciation(25,755)(38,794)

Structures, net

116,965

168,101

1,968,042

2,366,110

Machinery and equipment
Accumulated depreciation(662,558)(944,782)

Machinery and equipment, net

1,305,483

1,421,328

8,637(5,838)34,260(17,087)

VehiclesAccumulated depreciation
Vehicles, net

2,799

17,172

146,997(78,779)

201,290(115,202)

68,21886,088575,900
3,276

575,900
3,276

Accumulated depreciation

(109)

(764)

Leased assets, net

3,166

2,511

-52,085

5,089,063

5,359,240

2,360
288,518

1,168
366,997

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets

Construction in progress
Total property, plant and equipment
Intangible assets
Trademark right
SoftwareOther

38,26731,513

Total intangible assets

329,146

399,679

Long-term loans receivable
Distressed receivables

53,5101,06646,367
1,066

Long-term prepaid expenses
Deferred tax assets

13,07892,131

28,427
105,370

Other
Allowance for doubtful accounts

63,607(14,666)

57,139(14,278)

Total investments and other assets

208,727

224,092

5,626,937

5,983,012

8,859,525

9,562,497

Investments and other assets

Total non-current assets
Total assets―1―

(Thousands of yen)
As of July 31, 2022

As of July 31, 2023

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings

570,916
239,400

591,357
239,400Accounts payable - otherAccrued expenses

403,436
18,242564,476
31,383

Income taxes payable
Deposits received

54,512
14,933

173,545
17,797

Provision for shareholder benefit program
Contract liabilities

61,527
11,45857,9238,681

Lease liabilities
Other

720
32,368720
67,497

Total current liabilities

1,407,517

1,752,782

Non-current liabilities
Long-term borrowings

1,951,450

1,712,050

Lease liabilities
Guarantee deposits received

2,762
169,085

2,042
163,290

Long term contract liabilities
Other

21,121
3,210

12,927
3,210

Total non-current liabilities

2,147,630

1,893,520

3,555,147

3,646,302

Total liabilities
Net assets
Shareholders' equity
Share capital

725,645

730,286

Capital surplus
Legal capital surplus

715,645

720,286

Total capital surplus

715,645

720,286

3,864,006

4,466,578

3,864,006

4,466,578

(919)

(956)

5,304,378

5,916,194

5,304,378

5,916,194

8,859,525

9,562,497

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets―1―Non-consolidated Statements of Income(Thousands of yen)
For the fiscal year
ended July 31, 2022
Net sales
Cost of sales
Beginning inventory of merchandise and finishedgoods
Cost of products manufactured
Cost of purchased goods
Total
Ending inventory of merchandise and finished goods

For the fiscal year
ended July 31, 2023

11,215,914

12,266,758

186,720

287,792

3,839,887
4,388,231

5,519,832
3,173,034

8,414,839

8,980,659

287,792

420,316

8,127,046

8,560,343

3,088,868

3,706,414

Salaries and allowances
Freight costs

268,658
537,780

331,624
718,631

Depreciation
Outsourcing expenses

119,264
232,166

218,380
122,928

Advertising expenses
Bad debt expenses

445,876
7,945

481,0812,362

Provision of allowance for doubtful accounts
Provision for shareholder benefit program

23,41944,34020,92925,055

Other

847,855

1,115,268

Total cost of sales
Gross profit
Selling, general and administrative expenses

2,527,305

3,036,262

Operating profit

Total selling, general and administrative expenses

561,562

670,152

Non-operating incomeInterest income

12,354

12,853Compensation income
Commission income

132,022
29,450165,890
33,364

Other

18,701

17,520Total non-operating income

192,529

229,629

Interest expenses
Rental expenses

5,073
17,462

4,456
18,198Depreciation
Bad debt expenses

12,216
4,051

12,2593,368

Provision of allowance for doubtful accounts
Other

5,775
60

1,532
2,118

Total non-operating expenses

44,64041,933

709,451

857,848

Gain on sale of non-current assets

22,916-

Total extraordinary income

22,916-

19,293
95,478

1,320-

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses

114,772

1,320

Profit before income taxes

Total extraordinary losses

617,595

856,528

Income taxes - current

224,768

267,195

Income taxes - deferred(9,064)(13,238)

Total income taxes

215,703

253,956

Profit401,891

602,571―2―

Non-consolidated Statements of Changes in Net Assets
For the fiscal year ended July 31, 2022
(Thousands of yen)
Shareholders' equity
Capital surplus

Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes duringperiod
Issuance of newshares - exercise ofshare acquisitionrightsPurchase oftreasury shares
ProfitTotal changes
during period
Balance at end ofperiod

SharecapitalLegalcapitalsurplus724,137

714,137

Retained earnings
Otherretainedearnings
Total
Total capitalretained
Retained
surplusearnings
earnings
brought
forward714,137

724,137

714,137

714,137

1,508

1,508

1,508

Total net
Total
Treasury
assetsshareholders
shares' equity

3,488,980

3,488,980(919) 4,926,335

4,926,335(26,865)(26,865)(26,865)(26,865)

3,462,115

3,462,115(919) 4,899,470

4,899,470

3,016

3,016

-

-

401,891

401,891

404,907404,907(919) 5,304,378

5,304,378

401,891

401,891

1,508

1,508

1,508

401,891

401,891

725,645715,645715,6453,864,006

3,864,006-

For the fiscal year ended July 31, 2023
(Thousands of yen)
Shareholders' equity
Capital surplus

Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodIssuance of newshares - exercise ofshare acquisitionrightsPurchase oftreasury shares
ProfitTotal changes
during period
Balance at end ofperiod

SharecapitalLegalcapitalsurplus725,645715,645

Retained earnings
Otherretainedearnings
Total
Total capitalretained
Retained
surplusearnings
earnings
brought
forward715,645725,645715,645715,645

4,640

4,640

4,640

3,864,006

3,864,006

3,864,006

3,864,006

Total net
Total
Treasury
assetsshareholders
shares' equity(919) 5,304,378

5,304,378--(919) 5,304,378

5,304,378

9,281

9,281

(36)

(36)

602,571

602,571

611,816

611,816(956) 5,916,194

5,916,194(36)
602,571

602,571

4,640

4,640

4,640

602,571

602,571

730,286

720,286

720,286

4,466,578

4,466,578

―3―

(36)

Non-consolidated Statements of Cash Flows(Thousands of yen)
For the fiscal year
ended July 31, 2022
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended July 31, 2023

617,595

856,528

Depreciation
Impairment losses

610,147
95,478689,725-Increase (decrease) in allowance for doubtful accountsIncrease (decrease) in provision for shareholder
benefit program
Interest and dividend income

20,74919,76529,807(3,604)(12,354)(12,853)

Interest expenses
Loss on retirement of property, plant and equipment

5,073
19,293

4,456
1,320

Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables(22,916)(51,424)(119,846)

Decrease (increase) in inventories
Increase (decrease) in trade payables(113,093)
29,647(150,112)
20,440

Increase (decrease) in accrued consumption taxes
Increase (decrease) in contract liability

328,731(6,141)

43,242(10,971)

Other, net

9,704

12,401

Subtotal

1,560,298

1,350,491

12,354(5,062)

12,853(4,400)

Income taxes paid

(357,709)(157,515)

Net cash provided by (used in) operating activities

1,209,881

1,201,428(1,419,238)
65,016(787,429)-(120,529)(16,000)(171,387)(8,574)

Proceeds from collection of loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Refund of guarantee deposits received

14,495(1,168)

12,580(1,249)372

13,372(9,000)(8,000)

Guarantee deposits received
Purchase of other investments

20,961(5,879)18,470(5,655)(1,470,971)(937,873)

500,000-(239,400)
3,016(239,400)
9,281

(120)

(36)
(720)

263,495(230,876)Interest and dividends received
Interest paid

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Loan advances

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from exercise of employee share options
Purchase of treasury shares
Repayments of lease liabilities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

2,405

32,679Cash and cash equivalents at beginning of period

1,472,438

1,474,844

Cash and cash equivalents at end of period

1,474,844

1,507,524―4―