Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 7, 2023
Company name:
SATOSHOJI CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

8065
URL http://www.satoshoji.co.jp
Representative Director, President
Tetsuo Nozawa

Inquiries:
General Manager of Financial Dept.
Scheduled date to file Quarterly Securities Report:

Yasuhiro Kii
November 8, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 1, 2023
No

Holding of quarterly financial results meeting:

NoTEL 03-5218-5312(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2023
Six months ended September 30, 2022

Millions of yen
135,511
134,713

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
0.6
2,839
2.2
3,123
(3.1)
2,786
30.3
23.6
2,777
15.8
3,223
22.6
2,138
23.7

Earnings per share

Diluted earnings per shareYen
132.02101.31

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen
129.01
98.79(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023

Net assets

Millions of yen
172,220
163,743

Equity ratio

Millions of yen
60,744
56,102

%
35.0
34.0

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
29.00
32.00

Yen–

Yen
38.00

Yen
67.00

–

33.00

65.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
277,000
0.7
6,200
1.0
6,500
(3.3)
5,097 (17.7)
241.701

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

21,799,050 shares As of March 31, 2023

21,799,050 shares

Number of treasury shares at the end of the period
As of September 30, 2023

664,243 shares As of March 31, 2023

725,891 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

21,108,379 shares Six months ended September 30, 2022

221,111,069 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable - trade

3,346
7,610

4,284
7,922

Electronically recorded monetary claims - operating
Accounts receivable - trade25,44556,13428,73056,824Merchandise and finished goods
Other

30,3495,465

28,8204,812

Allowance for doubtful accounts

(237)

(209)

128,114131,186

5,295

5,119

Land
Other, net

10,1492,234

12,822
2,572

Total property, plant and equipment

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

17,67920,513

Intangible assets
Investments and other assets

177

177

Investment securities
Deferred tax assets

15,72276

18,40677

Retirement benefit asset
Other798
1,602

771
1,528

Allowance for doubtful accounts
Allowance for investment loss

(423)
(5)

(434)
(5)

Total investments and other assets

17,771

20,34335,62841,033

163,743

172,220

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Accounts payable - trade53,23456,661

Electronically recorded obligations - operating
Short-term borrowings

12,08020,253

13,78019,039Income taxes payable
Contract liabilities

1,456
492

1,123
683

Provision for bonuses
Other

1,669
2,739

1,525
2,526

Total current liabilities

91,927

95,339Non-current liabilities
Long-term borrowings

12,546

12,000

2,603
154

3,580
163

7255

Deferred tax liabilities
Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)
Other

336

334

15,713

16,135

107,641

111,475

Share capital
Capital surplus

1,321
838

1,321
818

Retained earnings
Treasury shares

46,915(760)

48,903(696)

Total shareholders' equity

48,31550,348

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

6,312

8,398

Deferred gains or losses on hedges
Foreign currency translation adjustment

(6)
1,101

(1)
1,617

Total accumulated other comprehensive income

7,408

10,014

367
11369
12

56,10260,744

163,743

172,220

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

134,713
124,246

135,511125,245

Gross profit

10,467

10,265

Selling, general and administrative expenses

7,689

7,425

Operating profit

2,777

2,839

Interest income
Dividend income

2281

3320

Rental income
Purchase discounts

74
28

63
20

Share of profit of entities accounted for using equity method
Subsidies for employment adjustment166200

Foreign exchange gains
Other

184
34

2330

Total non-operating income

630

482

125

132

627

1324

Non-operating income

Non-operating expenses
Interest expenses
Loss on sale of trade receivables
Rental expenses
Other

25

27

Total non-operating expenses

183

198

3,223

3,123

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

02

Gain on sale of investment securities

62881

Total extraordinary income

62884

Loss on sale and retirement of non-current assets
Loss on sale of investment securities

1–03

Loss on valuation of shares of subsidiaries and associates
Provision of allowance for investment loss

–
1026–

Total extraordinary losses

1131

Profit before income taxes

3,275

3,977

Income taxes - current
Income taxes - deferred

1,061
74

1,121
67

Total income taxes

1,135

1,189

Profit

2,139

2,787

1

1

2,138

2,786

Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

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

ProfitOther comprehensive income

Six months ended

Six months endedSeptember 30, 2022

September 30, 2023

2,139

2,787

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(869)
(9)

2,085
5

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted

587

509

36(288)2,606

Comprehensive income

1,851

5,394

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,849

5,392

1

1

for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2022

September 30, 2023

3,275

3,977

479
370

506(16)2(16)Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability

(74)
1126
8

Interest and dividend income
Interest expenses(284)
125(324)
132

Share of loss (profit) of entities accounted for using equity
method(16)(20)

Loss (gain) on sale of investment securities
Loss (gain) on sale and retirement of non-current assets(62)
0(878)(1)

Decrease (increase) in trade receivables
Decrease (increase) in inventories(6,092)(2,042)(3,663)
1,819

Increase (decrease) in trade payables
Other, net

1,332
2,393

4,727
587

Subtotal(580)6,863Interest and dividends received
Interest paid

284
(118)

321
(130)

Income taxes paid

(1,432)(1,427)

Net cash provided by (used in) operating activities(1,847)

5,626

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

(450)
220

(3,318)2

Purchase of intangible assets
Purchase of investment securities

(57)
(11)

(24)
(13)

Proceeds from sale of investment securities
Loan advances

62
(15)

1,195
(12)

Proceeds from collection of loans receivable
Other, net

94
57

7366

Net cash provided by (used in) investing activities(100)(2,030)Cash flows from financing activities
Net increase (decrease) in short-term borrowings(2,205)

(530)

5,800
(1,566)1,000(2,433)

(0)
(709)

(0)
(800)

(5)

0

Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits fordirectors (and other officers)

Cash flows from investing activities

Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities

1,312(2,764)

Effect of exchange rate change on cash and cash equivalents

177

107

Net increase (decrease) in cash and cash equivalents

(456)

938

Cash and cash equivalents at beginning of period

2,875

3,286

Cash and cash equivalents at end of period

2,418

4,224

7