Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

October 7, 2022

Consolidated Financial Results
for the Nine Months Ended August 31, 2022
(Under Japanese GAAP)
Company name:
SALA Corporation
Listing:
Tokyo Stock Exchange / Nagoya Stock Exchange
Securities code:
2734
URL:
https://www.sala.jp/
Representative:
Goro Kamino, President and Representative Director, Group Representative and CEO
Inquiries:
Shinichi Ichikawa, Manager of General Affairs Group, General Affairs Department
Telephone:+81-532-51-1182
Scheduled date to file quarterly securities report:
October 12, 2022
Scheduled date to commence dividend payments:–
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended August 31, 2022 (from December 1, 2021
to August 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
August 31, 2022
August 31, 2021

Operating profit

Millions of yen

3.3
6.5

% Millions of yen

(1.8)
16.7

7,666
7,401

% Millions of yen

3.6
10.3

%

5,350
5,151

3.9
12.7

For the nine months ended August 31, 2022: ¥6,044 million [15.0%]
For the nine months ended August 31, 2021: ¥5,256 million [18.3%]

Basic earnings
per share
Nine months ended
August 31, 2022
August 31, 2021

5,922
6,030

Profit attributable toowners of parent

Ordinary profit% Millions of yen

173,021
167,552

Note: Comprehensive income(Percentages indicate year-on-year changes.)

Diluted earnings
per share
Yen

Yen

83.94
81.50

–
–

Note: The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Board ofJapan (ASBJ) Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the firstquarter of the current fiscal year, and each figure for the nine months ended August 31, 2022, is the figure after
applying the accounting standard and relevant ASBJ regulations.

(2) Consolidated financial position
Total assets
As ofAugust 31, 2022
November 30, 2021
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

184,047
187,481

71,844
66,69938.3
34.9

EquityAs of August 31, 2022:
As of November 30, 2021:¥70,483 million¥65,425 million

Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure
as of August 31, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations.

2. Cash dividends
Annual dividends per shareFirst
quarter-end
Fiscal year ended
November 30, 2021
Fiscal year ending
November 30, 2022

Secondquarter-end

Thirdquarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

10.00

–

13.00

23.00

–

11.00

–
14.00

25.00

Fiscal year ending
November 30, 2022
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending November 30, 2022 (from December 1,
2021 to November 30, 2022)
Net sales

Fiscal year ending
November 30, 2022

(Percentages indicate year-on-year changes.)
Basic
Profit attributable
Ordinary profit
earnings per
to owners of parent
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

224,000

(1.7)

6,800

3.2

7,600

(8.6)

4,900

(6.9)

76.99

Note: Revisions to the earnings forecasts most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, please refer to “(3) Notes to quarterly consolidated financial statements (Changes in accounting
policies)” of “2. Quarterly consolidated financial statements and significant notes thereto” on page 9 of theattachment.

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2022

66,041,147 shares

As of November 30, 2021

66,041,147 shares(ii) Number of treasury shares at the end of the period
As of August 31, 2022

2,239,097 shares

As of November 30, 2021

2,396,033 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Nine months ended August 31, 2022

63,742,298 shares

Nine months ended August 31, 2021

63,210,581 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable by
the Company. Consequently, any statements herein do not constitute assurances regarding actual resultsby the Company. Actual business and other results may differ significantly due to various unforeseen
factors.

SALA Corporation (2734)○Attachment Index
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ......................................................................................................... 2(2) Explanation of financial position........................................................................................................ 4(3) Explanation of consolidated earnings forecasts and other forward-looking statements ..................... 4
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 5(1) Quarterly consolidated balance sheet ................................................................................................. 5(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
income ................................................................................................................................................ 7
Quarterly consolidated statement of income (cumulative) ................................................................. 7
Quarterly consolidated statement of comprehensive income (cumulative) ........................................ 8(3) Notes to quarterly consolidated financial statements ......................................................................... 9
Uncertainties of entity’s ability to continue as going concern ........................................................... 9
Notes on significant changes in the amount of shareholders’ equity ................................................. 9
Changes in accounting policies .......................................................................................................... 9
Additional information ..................................................................................................................... 10
Segment information ........................................................................................................................ 12
Significant events after reporting period .......................................................................................... 15-1-

SALA Corporation (2734)

1. Qualitative information on quarterly consolidated financial results(1) Explanation of operating results
During the nine months ended August 31, 2022, the Japanese economy saw an increase in uncertainties
regarding the economic outlook due to factors such as rising cost of living due to the impact ofsituation in Ukraine, depreciation of the yen, etc., while efforts to both prevent the spread of the novel
coronavirus disease (COVID-19) and to revitalize socioeconomic activities continued to progress.
Under these conditions, the Group (hereinafter referred to as the “SALA Group”) focused on initiatives
for “new developments by SALA in life,” “SALA’s penetration” and “transformation and challenge,”
which are its priority issues in the fourth medium-term management plan with the fiscal year ended
November 30, 2020 as the first fiscal year. The SALA Group is unified in pressing ahead with eachmeasure in the fiscal year ending November 30, 2022, as it is the final year to complete the fourth
medium-term management plan.
During the first nine months of the current fiscal year, SALA ENERGY CO., LTD., which operates theEnergy & Solutions business, worked to prepare to rebuild a core system in order to provide optimalhigh quality services to customers through the use of digital technologies. In March 2022, the company
entered into an agreement related to the “project to introduce renewable energy to city-owned
facilities” with Toyohashi City and started initiatives that systematically entrust services from theinstallation of solar power generation equipment, etc. at 15 facilities owned by Toyohashi City to theoperation, maintenance, and management of the equipment. SALA HOUSE CO., LTD., which is the
Housing business, opened a model house with LCCM (Life Cycle Carbon Minus) specifications inAugust 2022, which reduces the CO₂ balance throughout the life cycle of a house from construction to
demolition, and promoted carbon neutrality in the field of housing. ASCO Co., Ltd., in the animal
health care business, has decided to integrate its subsidiaries A.M.I. Co., Ltd. and Daiwa
Pharmaceutical co,. ltd. through an absorption-type merger on December 1, 2022 in order to further
strengthen profitability and expand its market share, following the integration of its subsidiary
Hokuyaku Co., Ltd., in December 2021. emCAMPUS Co., Ltd, which was founded in December 2021
in the emCAMPUS EAST, has started joint projects through industry-academia collaboration, aiming
to revitalize the local community. Additionally, by holding cross-industrial cooperative training
programs with employees of various companies from the region as participants, emCAMPUS Co., Ltd.
has been working to develop human resources that can create new value in the region.
As for operating results for the first nine months of the current fiscal year, net sales increased by 3.3%
year on year to ¥173,021 million due to increases in revenue mainly in the Energy & Solutions businessand the Housing business amid a decrease in revenue of ¥10,526 million compared with the previous
accounting method due to the application of the Accounting Standard for Revenue Recognition andrelevant ASBJ regulations. As for profit, despite increases in profit in the Energy & Solutions businessand the Housing business, operating profit decreased by 1.8% year on year to ¥5,922 million due todecreases in profit mainly in Engineering & Maintenance business. Meanwhile, as gain on valuation ofderivatives on forward exchange contracts increased, ordinary profit increased by 3.6% year on year to¥7,666 million. As a result, profit attributable to owners of parent increased by 3.9% year on year to¥5,350 million.
Operating results of each segment are as follows.
Energy & Solutions businessNet sales¥86,661 million (up 16.2% year on year)

Operating profit ¥3,933 million (up 11.1% year on year)
With regard to city gas, sales volume mainly for home use and commercial use increased. Net sales
increased due to the upwardly adjustment of the selling price of city gas based on a system to adjust
raw material costs, and due to the revision of the selling price of LP gas was in response to higher
raw material prices. In terms of profit, operating profit increased due to higher gross profit fromcity gas sales.

-2-SALA Corporation (2734)

Engineering & Maintenance businessNet sales¥22,126 million (down 3.6% year on year)

Operating profit ¥1,675 million (down 13.9% year on year)
Net sales decreased as completed projects decreased in the equipment work department and thecivil engineering department. As for profit, despite efforts to reduce cost of sales by thoroughprocess management, operating profit decreased due to the declined profit margin of completed
construction in the equipment work department and the civil engineering department.
Housing businessNet sales¥27,390 million (up 3.1% year on year)

Operating profit ¥274 million (up 18.9% year on year)
In the housing sales department, the number of lot houses sold decreased, but as the number ofcustom-built houses sold surpassed the results of the previous period, the total number of houses
sold in the department, increased slightly. In the housing components and materials processing andsales department, orders received increased as a result of its efforts to expand transactions mainlyin the existing business partners. Consequently, net sales and operating profit both increased.
Car Life Support businessNet sales¥12,042 million (up 6.6% year on year)

Operating profit ¥23 million (down 84.4% year on year)
Both Volkswagen and Audi experienced a decrease in the number of new cars sold due to theimpact of the lower production volume resulting from semiconductor shortages, etc. On the other
hand, the number of used cars sold increased due to the Company focusing on used car sales. As forprofit, operating profit decreased due to an increase in selling, general and administrative expenses,
such as promotion expenses.
Animal Health Care businessNet sales¥19,723 million (down 15.1% year on year)

Operating profit ¥580 million (down 17.3% year on year)
In the livestock farming department, orders for veterinary medical products, etc. received decreased
year on year due to the impact of high feed prices, etc. Net sales decreased due to the inclusion of adecreasing factor of ¥3,391 million from the application of the Accounting Standard for Revenue
Recognition and relevant ASBJ regulations. As for profit, operating profit decreased due to thedeclined gross profit in the livestock farming department.
Properties businessNet sales¥3,495 million (down 45.8% year on year)

Operating loss
fiscal year)¥251 million (operating loss of ¥474 million for the same period of the previous

The asset management department managing real estate properties, etc., performed well, with anincrease in asset management income, but the results of the same period of the previous fiscal year
included sales results of a condominium apartment building completed during the period, which
resulted in a significant decrease in net sales. As for profit, operating loss was recorded in thehospitality department due to the number of customers of banquets, bridal services, hotel stays, etc.
being below the level before the spread of COVID-19.

-3-

SALA Corporation (2734)(2) Explanation of financial position
AssetsAssets amounted to ¥184,047 million, down ¥3,434 million from November 30, 2021. This was mainly
due to decreases in “cash and deposits” by ¥2,449 million, “work in process” by ¥2,415 million and“property, plant and equipment” by ¥1,965 million, despite increases in “notes and accounts receivable- trade, and contract assets” by ¥2,527 million and “other” under investments and other assets by¥1,195 million.
Liabilities
Liabilities were ¥112,202 million, down ¥8,579 million from November 30, 2021. This was mainly due
to decreases in “other” under current liabilities by ¥3,823 million, “long-term borrowings (including
current portion)” by ¥3,259 million, “income taxes payable” by ¥658 million and “short-termborrowings” by ¥410 million.
Net assets
Net assets were ¥71,844 million, up ¥5,144 million from November 30, 2021. This was mainly due toan increase in “retained earnings” of ¥4,366 million (increased by ¥5,350 million due to recording of
profit attributable to owners of parent, decreased by ¥1,584 million due to payment of dividends, andincreased by ¥601 million due to the application of the Accounting Standard for Revenue Recognition
and relevant ASBJ regulations).
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There is no change to the consolidated earnings forecasts for the full-year earnings forecasts announced
on January 12, 2022.

-4-

SALA Corporation (2734)

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Millions of yen)
As of November 30, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Gas pipe, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of August 31, 2022

24,754
26,52822,305––29,055

1,458
12,618
11,135
405
4,781
(196)
81,487

1,472
12,717
8,720
443
4,627
(200)
79,142

20,768
8,821
17,15833,858841
1,475
82,923

20,345
8,191
16,40533,2801,361
1,374
80,958

338
1,149
1,488

245
1,533
1,779

7,552
3,939
4,920
5,599
(428)
21,583105,994
187,481

8,102
3,392
4,308
6,795
(430)
22,167104,905
184,047

SALA Corporation (2734)(Millions of yen)
As of November 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for point card certificates
Provision for loss on guarantees
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits for directors (andother officers)
Provision for share-based compensation
Provision for repairs
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of August 31, 2022

24,656
4,289
6,791
9,845
1,301
2,639

24,491
4,446
6,381
7,898
643
2,664

7

7

64
175
280
193
14,16364,4075986
226–
10,33957,24440,369198

39,057
403

195

181

417
83
11,782
3,327
56,374
120,782437
99
11,534
3,244
54,958112,2028,025
25,26933,365(1,585)65,074

8,025
25,28337,732(1,479)69,561

441
356
(446)
351
1,273
66,699187,481

690
706
(474)
922
1,360
71,844
184,047

SALA Corporation (2734)(2) Quarterly consolidated statement of income and quarterly consolidated statement ofcomprehensive income
Quarterly consolidated statement of income (cumulative)(Millions of yen)
Nine months ended
August 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on valuation of derivatives
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Reversal of provision for loss on guarantees
Gain on sale of businesses
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-7-

Nine months ended
August 31, 2022

167,552
122,361
45,19039,1596,030

173,021
129,395
43,62537,702
5,922

63
85
601

55
84
1,102

255

237

551
1,558

491
1,971

115
72
187
7,401

104
123
227
7,666

64
95
–
–
160

48
33
22
74
178

41
43
–
85
7,476
1,406
785
2,192
5,283
132
5,151

53
17
2
72
7,772
1,937
362
2,299
5,472
122
5,350

SALA Corporation (2734)

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)
Nine months ended
August 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-8-

Nine months ended
August 31, 2022

5,283

5,472

(37)
85
(76)
(27)
5,256

249
350
(27)
572
6,044

5,121

5,921

134

123

SALA Corporation (2734)(3) Notes to quarterly consolidated financial statements
Uncertainties of entity’s ability to continue as going concern
Not applicable.
Notes on significant changes in the amount of shareholders’ equity
Not applicable.
Changes in accounting policies
Application of accounting standard for revenue recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has recognized revenue at the time the control of promised goods or services
is transferred to the customer at the amount expected to be received upon exchange of said goods orservices.
Major changes due to the application of the Accounting Standard for Revenue Recognition and relevant
ASBJ regulations are as follows.
(i) Revenue recognition related to sales of LP gas and electricity
In relation to sales of LP gas and electricity, the Company changed the method of revenue
recognition whereby, of revenues previously recognized on the basis of the date of reading theelectricity meter, revenue arising between the date of reading the meter in the settlement month andthe settlement date is recognized based on the reasonable estimates.
(ii) Revenue recognition related to agent transactions
In relation to revenue for some direct transactions of principally sales of LP gas and veterinary
medical products, the Company previously had recognized the entire amount of consideration
received from customers as revenue, and that has been changed to a method that recognizes
revenue at the net amount after deducting the amount paid to suppliers from the amount received
from customers for transactions in which the SALA Group acts as an agent for the provision of
goods or services to customers.
(iii) Revenue recognition related to construction contracts
With respect to construction contracts, the Company previously had applied the percentage-ofcompletion method to construction work whose outcome from the completed portion was deemeddefinite, and had applied the completed-contract method to other construction work. As a result of
this application, however, the Company has changed the method to recognize revenue over acertain period of time in alignment with its satisfaction of performance obligations to transfer
goods or services to customers when control over a good or service is to be transferred to thecustomer over a certain period of time. In measuring progress made in satisfying a performanceobligation, construction costs incurred as of the last day of each reporting period are to be
calculated based on the ratio of the total estimated construction costs. Furthermore, revenue isrecognized on a cost recovery basis when it is not possible to reasonably estimate progress towards
satisfaction of performance obligations, but it is probable that the costs incurred will be recovered.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the first quarter of the-9-SALA Corporation (2734)

current fiscal year was added to or deducted from the opening balance of retained earnings of the firstquarter of the current fiscal year, and thus the new accounting policy was applied from such opening
balance; provided, however, that the new accounting policy was not retrospectively applied to contracts
for which nearly all the revenue amounts had been recognized according to the previous treatment inperiods prior to the beginning of the first quarter of the current fiscal year, by applying the method
provided for in paragraph 86 of the Accounting Standard for Revenue Recognition. Furthermore, byapplying the method set forth in item (1) of the supplementary provisions of paragraph 86 of the
Accounting Standard for Revenue Recognition, modifications to contracts carried out prior to thebeginning of the first quarter of the current fiscal year were accounted for based on the contractual
terms after all contract modifications were reflected. Consequently, this cumulative effect was added toor deducted from the opening balance of retained earnings of the first quarter of the current fiscal year.
As a result of this change, for the first nine months of the current fiscal year, net sales decreased by¥10,526 million, cost of sales decreased by ¥10,481 million, selling, general and administrative
expenses decreased by ¥268 million, while operating profit, ordinary profit and profit before income
taxes each increased by ¥222 million. In addition, the opening balance of retained earnings increasedby ¥601 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ
regulations, “notes and accounts receivable - trade” under current assets of the consolidated balance
sheet as of the end of the previous fiscal year has been included in “notes and accounts receivable trade, and contract assets” under current assets from the quarterly consolidated balance sheet as of theend of the first quarter of the current fiscal year. In accordance with the transitional treatment provided
for in paragraph 89-2 of the Accounting Standard for Revenue Recognition, figures for the previous
fiscal year have not been restated in accordance with the new approach to presentation. Furthermore,
the information on disaggregation of revenue from contracts with customers during the first ninemonths of the previous fiscal year has not been disclosed as allowed by the transitional treatment
provided for in paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ
Statement No. 12, March 31, 2020).
Application of accounting standard for fair value measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has applied the new accounting policy provided for by the AccountingStandard for Fair Value Measurement, etc. prospectively in accordance with the transitional measuresprovided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
There is no impact on the quarterly consolidated financial statements.
Additional information
Impact of the spread of COVID-19
There has been no material change in the assumptions regarding the impact of the spread of COVID-19
described in Impairment loss on non-current assets in Significant accounting estimates in the annual
securities report for the previous fiscal year.
Application of tax effect accounting for transition from consolidated taxation system to group tax sharing
system
As for items regarding the transition to the group tax sharing system introduced in the “Act Partially
Amending the Income Tax Act” (Act No. 8 of 2020) and items revised on non-consolidated taxation
system in connection with the transition to the group tax sharing system, the Company and someconsolidated subsidiaries have not applied the provisions of paragraph 44 of the “Guidance on
Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, February 16, 2018) asallowed by the provisions of paragraph 3 of the “Tax Effect Accounting for the Transition from theConsolidated Taxation System to the Group Tax Sharing System” (ASBJ PITF No. 39, March 31,- 10 -

SALA Corporation (2734)

2020). Accordingly, amounts of deferred tax assets and deferred tax liabilities are determined inaccordance with the provisions of the tax law before revision.

- 11 -

SALA Corporation (2734)

Segment information
I For the nine months ended August 31, 2021
1. Disclosure of sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Car Life
Supportbusiness

Energy &SolutionsbusinessEngineering &Maintenancebusiness

Net sales
Revenues from externalcustomers
Intersegment sales or transfers

74,60022,947

1,553

3,504

16

7

8

Total

76,153

26,451

26,57911,30323,247

Segment profit (loss)

3,542

1,945

230

150

702

Reportable segments

Housingbusiness

26,562

Animal HealthCare business

11,29523,239Properties
business

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Consolidated(Note 3)

Net sales
Revenues from externalcustomers
Intersegment sales or transfers

6,448

165,093

2,458

167,552–

167,552

368

5,457

1,333

6,790

(6,790)

–

Total

6,816

170,551

3,791

174,342(6,790)167,552

Segment profit (loss)

(474)

6,096

118

6,214

(183)

6,030

(Notes) 1. The “other” category represents operating segments that are not included in reportable segments, and includes
manufacturing auto parts, installment sale and lease.
2. Adjustment to segment profit (loss) of ¥(183) million includes intersegment eliminations of ¥844 million andcorporate expenses of ¥(1,028) million. Corporate expenses are mainly general and administrative expenses,
which are not attributable to the reportable segments.
3. Segment profit (loss) was adjusted with operating profit in the quarterly consolidated statement of income.

2. Disclosure of impairment losses on non-current assets or goodwill for each reportablesegment(Significant impairment losses on non-current assets)
Impairment losses on assets for business use were recorded in the Animal Health Carebusiness. The recorded amount of such impairment losses was ¥43 million in the first ninemonths of the previous fiscal year.

- 12 -

SALA Corporation (2734)

II For the nine months ended August 31, 2022
1. Disclosure of sales and profit (loss) for each reportable segment and disaggregation ofrevenue(Millions of yen)
Reportable segments

Net sales
City gas
LP gasElectric power
Civil engineering work,
construction work, equipment
work
Housing, construction materials
Automotive sales andmaintenance
Veterinary medical products
Lease, sale and purchase, andbrokerage of real estate, hotel
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Revenues from externalcustomers
Intersegment sales or transfers

Car Life
Supportbusiness

Energy &SolutionsbusinessEngineering &Maintenancebusiness

33,916
21,975
10,637

–
–
–

–
–
–

–
–
–

–
–
–

–

22,126

–

–

–

–

–

27,390

–

–

–

–

–

12,042

–

–

–

–

–

19,723

–

–

–

–

–

20,132––––

86,661

22,12627,39012,042

19,723

–

–

–

–

–

86,661

22,12627,39012,042

19,723

Housingbusiness

Animal HealthCare business

1,697

3,609

5

8

0

Total

88,35925,73527,395

12,051

19,724

Segment profit (loss)

3,933

1,675

274

23

580

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SALA Corporation (2734)
Reportable segments
Properties
business
Net sales
City gas
LP gasElectric power
Civil engineering work,
construction work, equipment
work
Housing, construction materials
Automotive sales andmaintenance
Veterinary medical products
Lease, sale and purchase, andbrokerage of real estate, hotel
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Revenues from externalcustomers
Intersegment sales or transfers

Other(Note 1)

Total

Total

Adjustment Consolidated(Note 2)
(Note 3)–––33,916
21,975
10,637–––33,916
21,975
10,637–––33,916
21,975
10,637–

22,126–22,126–22,126–27,390–27,390–27,390–12,042–

12,042–

12,042–

19,723–

19,723–

19,723

3,495

3,495

–

3,495

–

3,495

–

20,132

1,309

21,441

103

21,544

3,495

171,440

1,309

172,749

103

172,852

–

–

168

168

–

168

3,495

171,440

1,477

172,918103

173,021

374

5,696

1,372

7,069

(7,069)

–

Total

3,870

177,136

2,850

179,987(6,966)173,021

Segment profit (loss)

(251)

6,236

26

6,263

(340)

5,922

(Notes) 1. The “other” category represents operating segments that are not included in reportable segments, and includes
manufacturing auto parts, installment sale and lease.
2. Adjustment to segment profit (loss) of ¥(340) million includes intersegment eliminations of ¥907 million andcorporate expenses of ¥(1,248) million. Corporate expenses are mainly general and administrative expenses,
which are not attributable to the reportable segments.
3. Segment profit (loss) was adjusted with operating profit in the quarterly consolidated statement of income.
4. “Other revenue” includes revenue on lease, etc.

2. Disclosure of impairment losses on non-current assets or goodwill for each reportablesegment(Significant impairment losses on non-current assets)
Impairment losses on assets for business use were recorded in the Energy & Solutions
business. The recorded amount of such impairment losses was ¥17 million in the first ninemonths of the current fiscal year.
3. Information related to revisions to reportable segments
As stated under “Changes in accounting policies,” the Company has applied the
Accounting Standard for Revenue Recognition and relevant ASBJ regulations from the
beginning of the first quarter of the current fiscal year, and accordingly changed its method
for calculating net sales, profit and loss for operating segments given that it has changed
accounting methods for revenue recognition.
For the first nine months of the current fiscal year, as a result of this change, and comparedwith the figures obtained by the previous method, net sales decreased by ¥6,250 million
and segment profit decreased by ¥39 million for the “Energy & Solutions business.” Netsales and segment profit increased by ¥155 million and ¥243 million, respectively, for the“Engineering & Maintenance business.” Net sales and segment profit increased by ¥79
million and ¥18 million, respectively, for the “Housing business.” Net sales decreased by¥255 million for the “Car Life Support business,” but there is no effect on segment profit.
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SALA Corporation (2734)

Net sales decreased by ¥3,391 million for the “Animal Health Care business,” but there isno effect on segment profit. Net sales decreased by ¥1 million for the “Properties
business,” but there is no effect on segment profit. Net sales decreased by ¥862 million for“Other,” but there is no effect on segment profit.
Significant events after reporting period
Not applicable.

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