Financial Results for the Fiscal Year Ended (FYE) March 15, 2024 [Japanese GAAP] (Consolidated)
April 26, 2024
Company Name
Security Code
Representative

CAWACHI LIMITED
2664(Title)President

Contact(Title)URL

Exchange listed on:
https://www.cawachi.co.jp/(Name) Shinji Kawachi

Corporate Officer
Director Administration
Manager

Scheduled date of the Ordinary General Meeting of
Shareholders
Scheduled commencement date of dividend payment
Scheduled filing date of the securities report
Supplemental information for financial results:
Investor meeting presentation:(Name)

Tokyo Stock Exchange

Hiroshi Asuke(TEL) 0285 (32) 1131

June 12, 2024
June 13, 2024
June 13, 2024
Available
Scheduled (for securities analysts and institutional
investors)(Amounts rounded down to the nearest millions of yen.)

1. Consolidated Financial Results for the FYE March, 2024 (From March 16, 2023 to March 15, 2024)(1) Consolidated Operating Results(Percent represents comparison changes from the previous year.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
million yen% million yen%
million yen%
million yen%
FYE March,
285,960
1.5
7,601
15.0
8,609
12.2
4,713
12.8
2024
FYE March,
281,871
6,611
7,672
4,177
2023
(Note) Comprehensive income: FYE March, 2024
¥4,732 million (12.8%)
FYE March, 2023
¥4,193 million (-%)
Profit per share

Profit per share –dilutedProfit toShareholders’equity%Ordinary profit to
AssetsOperating profit
to Net sales

yen
yen
%
%
FYE March,
211.03210.79
4.3
4.4
2.7
2024
FYE March,
187.06186.85
3.9
4.0
2.3
2023
(Reference) Equity method investment gain (loss): FYE March, 2024 ¥ - million
FYE March, 2023 ¥ - million(Note) Effective from the beginning of the previous fiscal year, Cawachi Ltd. (the Company) began to apply the“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., and thenumbers for the FYE March, 2023 are ones after applying it. Therefore, percentage changes compared with theprevious fiscal year are not indicated.
(2) Consolidated Financial Positions
Total assets

Net assets

Shareholders’ equity
ratio%

million yen
million yen
FYE March,
196,119
111,295
2024
FYE March,
194,496
107,725
2023(Reference) Shareholders’ equity: FYE March, 2024
¥111,242 million
FYE March, 2023
¥107,627 million

Net assets per share
yen

56.7

4,980.82

55.3

4,818.93

(3) Consolidated Cash Flows

million yen

million yen

million yen

Cash and cash
equivalents at the endof the year
million yen

6,402(5,291)(3,937)35,623

9,817(5,840)(4,485)38,450Cash flows fromoperating activitiesFYE March,
2024
FYE March,2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

2. Dividends
End of
1Q
FYE March, 2023
FYE March, 2024
FYE March, 2025
(forecast)yen-

Annual dividends per share
End of
End of End of
the
2Q
3Q
year
yen
yen
yen
0.00
50.00
0.00
80.00

-

0.00

-

Total
yen
50.00
80.00

80.00

Total
Ratio of
Dividend
amount ofdividends topayout ratio
annualnet assets(consolidated)
dividends(consolidated)
million yen
%
%
1,116
26.7
1.1
1,786
37.9
1.6

80.00

31.3

3. Forecast of Consolidated Results for FYE March, 2025 (March 16, 2024 to March 15, 2025)(Percentage represents changes from the previous year for Full year, and on YoY basis for Quarterly results.)
Profit attributable
Profit per
Net sales
Operating profit
Ordinary profit
to owners of
shareparent2Q (cumulative)
Full year

millionyen%

millionyen%

millionyen%

million
yen

%

yen

149,000
292,000

2.1
2.1

4,500
8,000

2.5
5.2

5,000
9,000

1.7
4.5

3,200
5,700

5.0
20.9

143.28255.21

* NOTES(1) Changes in major subsidiaries during the cumulative quarter under review (Change
in specific subsidiaries that will accompany a change in scope of consolidation):
Newly consolidated:- company (companies)(name of company)
Excluded:- company (companies)(name of company)(2) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting
standards:
2) Change in accounting policies other than item 1) above:3) Change in accounting estimates:
4) Retrospective restatements:(3) Number of shares issued (common stock)1) Number of shares issued at the end of theperiod (including treasury stock)2) Number of shares of treasury stock at the endof the period
3) Average number of shares issued during theperiodFYE March,
2024
FYE March,
2024
FYE March,
2024

24,583,420
shares2,249,173
shares
22,334,273
shares

None

None
None
None
None
FYE March,
2023
FYE March,
2023
FYE March,
2023

24,583,420
shares2,249,122
shares
22,334,298
shares* This summary of consolidated financial results is not subject to audit by certified public accountants or an audit firm.
* Explanation for appropriate use of operating results forecasts, other special notes
Forward-looking statements, including business forecasts, contained in this document are based on information
available to the Company and certain assumptions deemed reasonable as of the date of this document, and actual
performance and results may differ significantly from the forecasts described here due to various factors. Pleaserefer to “1. Overview of Results of Operations, etc. (1) Overview of Results of Operations for the Current Fiscal
Year” of the attached documents for the assumptions underlying the forecasts and cautions when using the forecasts.

○Contents of Attached Documents
1. Overview of Results of Operations, etc. ....................................................................................................................... 2(1) Overview of Results of Operations for the Current Fiscal Year .............................................................................. 2(2) Overview of Financial Position for the Current Fiscal Year .................................................................................... 4(3) Principles of Appropriation of Profits and Dividend Payment for the Current Fiscal Year and the Next Fiscal
Year ......................................................................................................................................................................... 5
2. Basic Policy on Selecting Accounting Standards ......................................................................................................... 5
3. Consolidated financial statements ................................................................................................................................ 6(1) Consolidated balance sheets .................................................................................................................................... 6(2) Consolidated statements of income and consolidated statements of comprehensive income ................................. 8
Consolidated statements of income ......................................................................................................................... 8
Consolidated statements of comprehensive income ................................................................................................ 9(3) Consolidated statements of changes in equity ....................................................................................................... 10(4) Consolidated statements of cash flows .................................................................................................................. 12- 1 -1. Overview of Results of Operations, etc.
(1) Overview of Results of Operations for the Current Fiscal Year
(Results of operations for the current fiscal year)
During the fiscal year ended March 15, 2024, the Japanese economy showed signs of a gradual recovery associoeconomic activity normalized due to the shift in the classification of COVID-19. However, uncertainty over the
economic outlook remained, mainly affected by soaring resource prices and foreign exchange movements as well asheightened geopolitical risks.
A budget-minded trend in consumer spending has become even more widespread resulting mainly from the increasing
burden of living expenses as prices rise and real wages continue to decline, although the economy showed signs ofmoderate recovery due to an increase in opportunities to go out.
The drugstore sector, to which the Cawachi Group (“the Group”) belongs, remained in a tough environment due to areactionary drop from the increase in demand for antigen test kits and, masks, etc. in the previous year, and areactionary drop, etc. from rush demand due to product price hikes. Competitors also continued to open new stores,
and the Group has found itself competing with other format retailers following the price hikes in various products.
There was a recovery in inbound demand, etc. due to increased human flow in Japan, and a recovery in beauty-related
products due to increased opportunities to go out, etc.
Under these circumstances, the Group has been working to open new stores and establish dispensing pharmacies as away to enhance our expertise and has also been making efforts to review and respond to sales prices and sales
promotions by taking advantage of its logistics framework for central buying, etc. to maintain a relative advantage inthe face of a series of gradual price increases. Meanwhile, selling, general & administrative expenses were lower thanplanned mainly due to efforts to curb personnel expenses by improving work efficiency in conjunction with the start ofoperation of the new distribution center. Efforts were also made to curb utility expenses primarily due to a decrease inpower consumption caused by a mild winter and the extension of measures to mitigate drastic changes by thegovernment.
In terms of new store openings, the Group opened a total of 13 stores: three stores in Ibaraki, two stores each in Iwate
and Chiba, and one store each in Miyagi, Yamagata, Fukushima, Tochigi, Gunma, and Yamanashi, all of which areareas in which it currently operates. The Group also opened a total of nine in-store dispensing pharmacies: two in new
stores in Chiba, one each in new stores in Yamagata, Ibaraki, and Gunma, two in existing stores in Ibaraki, and one
each in existing stores in Yamagata and Gunma. The Group closed a total of two stores—one in Chiba (in-store
dispensing pharmacy type) and another in Niigata—for the purpose of relocation as well as two dispensing
pharmacies.
Accordingly, the Group has a total of 375 stores (of which 151 have an in-store dispensing pharmacy).
As a result, the Group recorded net sales of 285,960 million yen (year-on-year increase of 1.5%) on a consolidated
basis for the current fiscal year under review. The Group recorded operating profits of 7,601 million yen (year-on-yearincrease of 15.0%), ordinary profit of 8,609 million yen (year-on-year increase of 12.2%), and profit attributable toowners of parent of 4,713 million yen (year-on-year increase of 12.8%).

-2-

(Sales)
The Group’s net sales by segment are as follows.
Previous consolidated fiscal year Current consolidated fiscal year
Segment(From March 16, 2022

(From March 16, 2023

to March 15, 2023)

to March 15, 2024)

Amount(Mil. yen)Amount(%)(Mil. yen)

YoY comparison
(%)

(%)

Pharmaceuticals

52,78018.8

52,26218.4

99.0

Cosmetics

21,421

7.6

22,573

7.9

105.4

Sundries

77,581

27.6

78,724

27.6

101.5

General food

129,16446.0

131,452

46.1

101.8

280,948100.0

285,013

100.0

101.4

Total

(Notes) 1. Number of units sold is omitted because the Company has an extensive product range.
2. Amounts above do not include rent revenue from real estate.
(Outlook for the next fiscal year)
For the fiscal year ending March 15, 2025, the Japanese economy is predicted to recover moderately in economic
activity against a backdrop of rising stock prices and rising prices as well as increased human flow, a rebound in
inbound tourism-related demand, and other factors. On the other hand, the outlook is predicted to remain uncertain as
prices are predicted to continue to rise moderately mainly due to heightened geopolitical risks and the impact of
exchange rates, etc. The consumer spending environment is expected to remain severe due to economic circumstances
and uncertainty about the future on the back of rising product prices and cost-of-living expenses, which have caused
consumers to be more aware of protecting their current lifestyles and to be more conscious of saving money.
In these circumstances, in order to cope with the rapidly changing business environment, the Group will promote
productivity improvement measures through a new logistics framework and work on systemization and mechanization
based on DX promotion measures to improve overall productivity in order to further strengthen its business
infrastructure. In addition, the Company will rein in rising utility bills by continuously introducing power-saving
equipment, etc.
Further, as a differentiation measure against increasingly fierce competition, we will continue to open dispensing
pharmacies in our new stores. At the same time, we will make progress with measures for enhancing our expertise bystrengthening functions that enable qualified specialists to provide counseling in order to maintain and step up people’s
health, including disease prevention and beauty, and extend their health longevity while enhancing our product lineup
catering for people’s growing health awareness as a measure to enhance their health and beauty care. Furthermore, wewill make every effort to improve the quality of consumers’ living and customer satisfaction by making further
progress in building local community-based stores with functions as local infrastructure. We will do this while
focusing on offering products that value safety at reasonable prices in an effort to respond to the consumption
environment where people are increasingly conscious about protecting their living.
Regarding new store openings and closings, the Group plans to open 13 stores mainly in the areas where it currently
operates, and to close two stores. Furthermore, to further make progress on measures for expertise enhancement, theGroup plans to launch seven in-store dispensing pharmacies at new and existing stores.
From the above, the Group forecasts, for the fiscal year ending March 2025, net sales will be 292,000 million yen,operating profit will be 8,000 million yen, ordinary profit will be 9,000 million yen, and profit attributable to owners ofparent will be 5,700 million yen.

-3-(2) Overview of Financial Position for the Current Fiscal Year
1) Assets, liabilities and net assets
Assets increased 1,623 million yen compared with the end of the previous fiscal year, to 196,119 million yen. Thiswas mainly due to an increase in accounts receivable-trade and merchandise despite a decrease in cash and deposits.
Liabilities decreased 1,946 million yen compared with the end of the previous fiscal year, to 84,824 million yen.
This was due primarily to a decrease in long-term borrowings.
Net assets increased 3,569 million yen compared with the end of the previous fiscal year to 111,295 million yen.
This was due primarily to an increase in retained earnings.
Equity ratio increased to 56.7% (year-on-year increase of 1.4 points).
2) Cash flows
Cash and cash equivalents (hereinafter referred to as “funds”) as of the end of the fiscal year under review amounted
to 35,623 million yen (2,826 million yen decrease compared with the end of the previous fiscal year).
(Cash flow from operating activities)
Net cash provided by operating activities amounted to 6,402 million yen (year-on-year decrease of 3,414 millionyen). This was due primarily to an increase in trade receivables of 3,851 million yen (year-on-year decrease of 3,098
million yen), despite profit before income taxes of 7,153 million yen (year-on-year increase of 581 million yen), anddepreciation of 4,306 million yen (year-on-year decrease of 43 million yen).
(Cash flow from investing activities)
Net cash used in investing activities amounted to 5,291 million yen (year-on-year decrease of 549 million yen). Thiswas due primarily to the fact that purchases of property, plant and equipment associated with the opening of newstores amounted to 4,835 million yen (year-on-year decrease of 416 million yen).
(Cash flows from financing activities)
Net cash used in financing activities amounted to 3,937 million yen (year-on-year decrease of 548 million yen). Thiswas due primarily to the fact that while proceeds from long-term borrowings were 5,720 million yen (year-on-year
decrease of 780 million yen), repayments of long-term borrowings were 8,540 million yen (year-on-year decrease of
1,329 million yen), and dividends paid were 1,116 million yen (year-on-year increase of 0 yen).
(Trends of Cash Flow-related Indicators)
Equity ratio (%)
Equity ratio on
market value (%)

FYE3/2020

FYE3/2021

FYE3/2022

FYE3/2023

FYE3/2024

50.3

51.9

54.5

55.3

56.7

20.9

33.6

27.5

25.3

30.3

2.4

1.7

3.3

2.0

2.6

178.8

246.8

138.0

235.1

181.1

Ratio of interestbearing debts tocash flows(years)Interest coverage
ratio (multiples)

Equity Ratio: Shareholders’ equity/Total assets
Equity ratio on market value: Market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expenses
Note 1: All figures are calculated based on consolidated financial results.
Note 2: Market capitalization is calculated based on number of shares issued excluding treasury stock.
Note 3: Cash flows are based on operating cash flows.
Note 4: Interest-bearing debt represents debt posted on the consolidated balance sheet and accompanied by interest
payments.
-4-(3) Principles of Appropriation of Profits and Dividend Payment for the Current Fiscal Year and the Next Fiscal Year
The Group recognizes that returning profit to shareholders is a top-priority management issue, and its basic policy is tocontinue to pay progressive dividends while retaining the necessary internal reserves to ensure stable growth byenhancing and strengthening its management base, taking into account future business prospects.
The Group is planning to propose an ordinary dividend of 80 yen per share by increasing the dividend by 30 yen per
share for the current fiscal year in the 57th Ordinary General Meeting of Shareholders scheduled to be held on June
12, 2024.
The Group also plans to distribute an ordinary dividend of 80 yen per share in the following fiscal year.
Internal reserves will be used as funds to open new stores and to make renovations and system investments, etc.

2. Basic Policy on Selecting Accounting Standards
The Group has adopted Japanese accounting standards to ensure that its operating results are comparable withcompetitors in Japan.

-5-3. Consolidated financial statements(1)Consolidated balance sheets(Millions of yen)
As of March 15, 2023

As of March 15, 2024

AssetsCurrent assets
Cash and deposits

38,45035,623

Accounts receivable - trade
Merchandise

6,604
32,961

10,456
34,699Supplies
Other

32
5,474

30
5,209

Total current assets

83,52386,018114,911(74,785)

117,360(77,208)

40,12640,152Land
Construction in progress

49,292791

49,170178

Other
Accumulated depreciation

25,016(21,839)

25,452(22,418)

3,177

3,034

93,38892,535

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

Other, net
Total property, plant and equipment
Intangible assets
Other

5,243

5,387

Total intangible assets

5,243

5,387

Investments and other assets
Investment securities

101

129

Leasehold and guarantee deposits
Deferred tax assets

7,633
4,285

7,474
4,275

Other

321

298

12,342

12,177110,973

110,100

194,496

196,119

Total investments and other assets
Total non-current assets
Total assets-6-

(Millions of yen)
As of March 15, 2023

As of March 15, 2024

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

41,923
7,909

42,011
6,706

Income taxes payable
Provision for bonuses

1,424
1,204

1,400
1,351

Contract liabilities
Other

2,046
7,927

2,096
8,109

Total current liabilities

62,43561,675

Non-current liabilities
Long-term borrowings

11,64010,023

8,693
3,078

8,959
3,243

Retirement benefit liability
Asset retirement obligations
Other

922

922

24,33523,14886,771

84,824

Shareholders' equity
Share capital

13,001

13,001

Capital surplus
Retained earnings

14,902
84,07014,902
87,666

Treasury shares(4,362)(4,363)

Total shareholders' equity

107,612111,208

Valuation difference on available-for-sale securities

15

34

Total accumulated other comprehensive income

15

34

98

52

107,725

111,295

194,496

196,119

Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets-7-

(2)Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Millions of yen)
Fiscal year ended
March 15, 2023

Fiscal year ended
March 15, 2024

Net sales
Cost of sales

281,871
217,824

285,960
220,158

Gross profit

64,04765,801

Selling, general and administrative expenses

57,43558,200Operating profit

6,611

7,601

Interest income
Dividend income

21
2

19
3

Commission income
Revenue from sales of electric power

824
186

799
176

Non-operating income

Other

407

461

Total non-operating income

1,442

1,460

Interest expenses
Commission expenses

41
142

35
136

Depreciation
Loss on tax purpose reduction entry of non-current assets

59
–

56
59

Other

137

164

Total non-operating expenses

381

452

7,672

8,609

10
137

0
73

–
–

45
25

148

145

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Gain on reversal of share acquisition rights
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets

948

Loss on retirement of non-current assets
Impairment losses

64
911

27
1,117

Loss on store closings
Other

29
235

303
104

Total extraordinary losses

1,248

1,601

Profit before income taxes

6,572

7,153

Income taxes - current

2,604

2,437

Income taxes - deferred

(209)

2

Total income taxes

2,394

2,440

Profit

4,177

4,713

Profit attributable to owners of parent

4,177

4,713

-8-

(Consolidated statements of comprehensive income)(Millions of yen)

ProfitFiscal year ended

Fiscal year ended

March 15, 2023

March 15, 2024
4,177

4,713

15

19

15

19

Comprehensive income

4,193

4,732

Comprehensive income attributable toComprehensive income attributable to owners of parent

4,193

4,732

Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income-9-(3)Consolidated statements of changes in equity
Fiscal year ended March 15, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

13,001Retained earnings

14,901

Treasury shares

81,008

Total shareholders' equity(4,387)

104,524

Changes during period
Dividends of surplus(1,116)

Disposal of treasury shares(1,116)

1

24

Profit attributable to owners ofparent

26

4,177

4,177

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

1

3,061

24

3,088

13,001

14,902

84,070(4,362)

107,612

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Balance at beginning of period

Share acquisition rights

Total accumulated othercomprehensive income

(0)

(0)

Total net assets

126

104,649

Changes during period
Dividends of surplus(1,116)

Disposal of treasury shares

26

Profit attributable to owners ofparent4,177

Net changes in items other thanshareholders' equity

15

15

(28)

Total changes during period

15

15

(28)

3,075

Balance at end of period

15

15

98

107,725- 10 -(12)

Fiscal year ended March 15, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

13,001Retained earnings

14,902

Treasury shares

84,070Total shareholders' equity(4,362)

107,612

Changes during period
Dividends of surplus(1,116)(1,116)

Purchase of treasury shares(0)Profit attributable to owners ofparent

(0)

4,713

4,713

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

–

3,596

(0)

3,596

13,001

14,902

87,666(4,363)111,208

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Balance at beginning of period

Share acquisition rights

Total accumulated othercomprehensive income

15

15

Total net assets

98

107,725

Changes during period
Dividends of surplus(1,116)

Purchase of treasury shares(0)Profit attributable to owners ofparentNet changes in items other thanshareholders' equity

4,713
19

19

(45)

(26)

Total changes during period

19

19

(45)

3,569

Balance at end of period

34

34

52

111,295- 11 -

(4)Consolidated statements of cash flows(Millions of yen)
Fiscal year ended

Fiscal year ended

March 15, 2023

March 15, 2024

Cash flows from operating activities
Profit before income taxes
Depreciation

6,572
4,350

7,153
4,306

Impairment losses
Loss on store closings

911
–

1,117
303

Loss on retirement of non-current assets
Increase (decrease) in provision for bonuses

9
16

17
147

Increase (decrease) in retirement benefit liability
Interest and dividend income

476
(24)

265
(23)

Interest expenses
Loss (gain) on sale of non-current assets

41
2

35
48

Increase(decrease) in contract liabilities
Decrease (increase) in trade receivables

169
(753)

49
(3,851)

Decrease (increase) in inventories
Increase (decrease) in trade payables(1,560)1,297(1,735)88

Other, net

1,019

1,256

Subtotal

12,5279,178

Interest and dividends received

33Interest paid
Income taxes paid

(42)
(2,671)(34)(2,744)

Net cash provided by (used in) operating activities

9,817

6,402

Cash flows from investing activities
Purchase of property, plant and equipment(5,252)(4,835)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

50
(455)

94
(544)

Purchase of long-term prepaid expenses
Payments of leasehold and guarantee deposits

(55)
(244)

(46)
(168)

Proceeds from refund of leasehold and guarantee deposits
Other, net

112
4

209
0

(5,840)(5,291)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings

6,500

5,720

Repayments of long-term borrowings
Purchase of treasury shares(9,869)–(8,540)(0)Proceeds from disposal of treasury shares
Dividends paid

0
(1,116)–(1,116)

Net cash provided by (used in) financing activities(4,485)(3,937)

Net increase (decrease) in cash and cash equivalents(509)(2,826)

Cash and cash equivalents at beginning of period

38,95938,450Cash and cash equivalents at end of period

38,45035,623- 12 -