Consolidated Financial Results [Japanese GAAP]
for the Third Quarter of the Fiscal Year Ending January 20, 2023
November 25, 2022
Takasho Co., Ltd.
Stock code:
7590
Stock Exchange Listing:
Tokyo
URL:
https://takasho.co.jp/en
Telephone:+81-73-482-4128
Representative: Nobuo Takaoka, President & CEO
For inquiries:
Atsushi Inoue, Corporate Officer, Corporate Management Headquarters Vice Director
Scheduled date to submit statutory quarterly financial report:
December 2, 2022
Scheduled date of starting payment of dividend:
N/A
Availability of supplementary explanatory material on quarterly results:
N/A
Quarterly results briefing:
N/A
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release inJapanese shall prevail.
*Figures are rounded down to the nearest million yen, except share and per share data*“ %” indicates year-on-year changes from the previous corresponding quarter1. Consolidated Financial Results for the Nine Months Ended October 20, 2022 (From January 21, 2022, toOctober 20, 2022)(1) Consolidated Operating Results（Cumulative）
Net income
Net sales
Operating income
Ordinary income attributable to ownersof the parent
Million yen%
Million yen%
Million yen%
Million yen%
FY2023 3Q(Nine months ended
15,884 △0.5
619 △55.7
1,138 △22.9
629 △37.8
October 20, 2022)
FY2022 3Q(Nine months ended
15,965
12.3
1,399
25.0
1,476
41.5
1,012
35.2
October 20, 2021)(Note) Comprehensive income:
FY2023 3Q (Nine months ended October 20, 2022): 1,305 million yen (△0.3%),
FY2022 3Q (Nine months ended October 20, 2021): 1,308 million yen (64.5 %)FY2023 3Q(Nine months ended
October 20, 2022)
FY2022 3Q(Nine months ended
October 20, 2021)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen
35.90

35.87

68.77

68.62

(2) Consolidated Financial Position
Total assets
As of the end ofMillion yen
FY2023 3Q(As of October 20,
26,0822022)
FY2022 4Q(As of January 20,
23,6652022)

Net assets
Million yen

Shareholders’ equity
ratio

%

13,971

53.1

13,06454.8

(Ref.) Shareholders’ equity amount:
FY2023 3Q (As of Oct. 20, 2022): 13,845 million yen
FY2022 4Q (As of Jan. 20, 2022): 12,957 million yen
2. Dividends
1st quarter
Yen

Annual cash dividends per share
2nd quarter3rd quarter
Year-end
Yen
Yen
Yen

FY2022 4Q
0.00－－
ended Jan. 20, 2022
FY2023 3Q
0.00－－
ended Jul. 20, 2022
FY2022 4Q
ending Jan. 20, 2023
(forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

Total
Yen

23.00

23.00

23.00

23.00

3. Forecast for the Fiscal Year Ending January 20, 2023 (From Jan. 21, 2022, to Jan. 20, 2023)
Net income
Basic
Operating
Ordinary
attributable to owners Earnings
Net sales
IncomeIncomeof the parent
Per Sharecompany
Million yen % Million yen%
Million yen%
Million yen%
Yen
FY2023 4Q
20,880 0.5
810 △45.1
1,320 △13.8
730 △27.1
41.63(full year)(Notes) Revisions to the forecast since the latest announcement: Yes

※ Notes;(1) Changes in Significant Subsidiaries during the Current Quarter
Changes in specified subsidiaries that caused a change in the scope of consolidation: None
Newly included companies: None
Newly excluded companies: None
(2) Simplified Accounting Procedures and Specific Accounting Procedures: None
(3) Changes in Accounting Policies and Accounting Estimates(i) Changes in accounting policies as required by newly promulgated account pronouncement: Yes(ii) Changes other than (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of Shares Outstanding (Ordinary Shares)

Number of shares outstanding at end of period(Treasury shares included)
Number of treasury shares at end of period

Average number of shares during 3Q

FY2023 3Q(As of Oct. 20, 2022)

FY2022 4Q(As of Jan.21, 2022)

17,590,114

17,590,114

57,578FY2023 3Q(From Jan.21, 2022,
to Oct. 20, 2022)
17,531,126

63,578FY2022 1Q(From Jan.21,2021,
to Oct. 20, 2021)
14,716,852* This quarterly financial results report is out scope of the quarterly review by a certified public accountant nor
audit firm.
* Explanation on appropriate use of performance forecasts and other special notes.
The performance forecast described in this report are based on information that is available to the Group, as wellas certain assumptions and estimates that are deemed to be reasonable, and we make no assurance that suchdescriptions prove to be correct. Actual figures may significantly differ due to various factors. For information
regarding the forecast of consolidated financial results, due attention should be paid to "Explanation of ForwardLooking Statements" on page 4 of the attached documents.

Table of Contents
1. Status of the Group(1) Business Overview and Results for the Third Fiscal Quarter…………………………………….…
(2) Explanation on the Financial Position …………………………………………………………………
(3) Explanation on Future Performance Forecast …………………………………………………………
2. Quarterly Financial Statements and Notes

144(1) Quarterly Consolidated Balance Sheet …………………………………………………………………
(2) Quarterly Consolidated Statement of Income and Comprehensive Income……………………………
(3) Notes to Quarterly Consolidated Financial Statement
Note on Going Concern ………………………………………………………………………………

5
7

Note on Significant Change in Equity Capital ………………………………………………………
Changes in Accounting Policies ………………………………………………………………………

9
99

1. Status of the Group(1) Business Overview and Results for the Third Fiscal Quarter
Business Overview
During the third quarter of the current consolidated fiscal year, the prospects of Japanese economy continue to behighly uncertain and are unpredictable. The tenacious adversity out of the novel coronavirus and emerging variants(hereafter referred to as “COVID-19”) pandemic, and other volatile global factors, including the supply shortage ofmaterials, such as semiconductors, as well as sharp appreciation of the energy prices and materials, further
depreciation of the yen in the exchange market and the Ukraine affairs, are all rampant and have been increasing
this uncertainty.
In this business environment, for the purpose of enhancing our brand value and fueling future growth, we
intensified sales promotion campaigns. We broadcasted TV commercials which are linked with our web platform
to increase customer touchpoint and engagement. Also, we hosted our original exhibition, TGEF2022 (Takasho
Garden Exterior Fair 2022).
Further, we launched “GLD-LAB Design Network Service” which supports housing providers and housingreformers to propose housings and exteriors. Leveraging our state-of-the-art technologies, such as XR(AR/VR/MR) and metaverse, users can utilize technologically advanced offerings with more enhanced customer
engagement.
Overseas sales nosedived due to the stock adjustments caused by merchants’ stock overload. In U.S., customer
attraction at home center and garden center temporary slowed down due to the relaxation of voluntary curfew. In
Europe, people refrained from buying due to the price rise in electricity, gas, and necessities.
As such, business performance for the third quarter of the current consolidated fiscal year has been resulted in as
follows.
3rd Quarter Fiscal 2023 Highlight (January 21, 2022, to October 20, 2022)
FY2023 3Q(Nine months ended
October 20, 2022)

IncreaseorDecrease

15,884FY2022 3Q(Nine months
ended October 20,
2021)
15,965△81

99.5

Operating income

619

1,399

△779

44.3

Ordinary income

1,138

1,476

△338

77.1

629

1,012

△382

62.2

Revenue

Net income attributableto owners of the parent%

Sales Metrics by Business Segments<Pro-use segment>
The sales of Pro-use accounted for a percentage of 62% our total sales and has been stable. To accelerate our
successful growth, we promoted our new multidimensional business model; innovative synergy of online, virtual,
and real, more precisely, DX-enabled proposals of lifestyles and sales closing through web-based showrooms andVR parks, as well as through our original Garden & Exterior showrooms located throughout Japan where
customers can experience and feel a wide selection of our products.
Also, we have our own factory in Japan, which enables flexible “mass customization” to each customer’s order,
and it has been promoting hybrid-style proposals, as mentioned above, that utilize content both online and real bycomprehensively proposing "Facade Exterior & Living Garden" lifestyle through abundance of color variation
tailored to each customers’ aesthetics sense, tastes, and interests.
What’s more, sales of living garden products such as "Home Yard Roof," a key product inspired by "5th ROOM"(fifth room) concept, increased by the brand designated orders, due to the new DX-enabled proposals and sales
which links TV commercial and web-based platform.
In addition, since the sales of "Low Volt Light," a safe and secure exterior illumination for nighttime gardens,
has been continuously increasing, Pro-use sales increased by 107.5% from the same quarter of the previous fiscal
year.

Pro-use segment Highlight (January 21, 2022, to October 20, 2022)

Revenue

FY2023 3Q(Nine months ended
October 20, 2022)

FY2022 3Q(Nine months ended
October 20, 2021)

9,859

9,174

IncreaseorDecrease
684

%
107.5

On the other hand, TAKASHO DIGITEC CO.,LTD., our consolidated subsidiary which is engaged with LED
sign and lightening/illumination business, has been growing its business and its sales achieved 124.8% growthcompared to the same quarter of previous fiscal year, due to the cooperation with our landscape building material
company and the increased transactions with non-housing fields (Commercial facilities such as hotels andJapanese-style Ryokans etc.).
<Home-use segment>
Sales by home-use segment maintained approximately same level (98.7%) compared to the same quarter ofprevious fiscal year. Positive factors such as YoY 120% growth in the e-commerce were not sufficient to neutralize
negative factors such as decreased sales of gardening-related products due to bad weather, with more typhoons thanusual, in demand-period autumn.
Home-use segment Highlight (January 21, 2022, to October 20, 2022)

Revenue

FY2023 3Q(Nine months ended
October 20, 2022)

FY2022 3Q(Nine months ended
October 20, 2021)

4,673

4,733

IncreaseorDecrease
△60

%
98.7

<Overseas segment>
Although maritime freight cost has been stabilized, overseas sales decreased to 65.3% compared to the samequarter of previous fiscal year. In U.S., due to the relaxation of voluntary curfew, customer attraction at home
center and garden center temporary slowed down, inversely correlated with the surging demand for overseas traveland outdoor activities whose demands were all pent up during COVID-19. In Europe, people refrained from buying
due to the price rise in electricity, gas, and necessities. As a result of these circumstances, the stock adjustments andcorresponding delivery adjustment were caused by merchants’ stock overload, and overseas sales decreased fromthe same quarter of the previous fiscal year.
Nonetheless, we’ve witnessed that “Lifestyle with gardening” has been penetrated and embedded in everyday life.
In the face of COVID-19, and continuously in “with and after COVID-19” era, people worldwide reaffirmed theimportance of health (garden therapy), culture (emotion, art), and environment (green, nature). Accordingly, stabledemands are expected and, embracing this propitious trend, we will foster our effort and boost overseas business byhorizontally expand our success model in Australian market to U.S. market (several projects are in pipeline orunder constructions).
Overseas segment Highlight (January 21, 2022, to October 20, 2022)

Revenue

FY2023 3Q(Nine months ended
October 20, 2022)

FY2022 3Q(Nine months ended
October 20, 2021)

1,334

2,044

IncreaseorDecrease

△710

%
65.3

Operating income
Although we maintained approximately same level of sales compared to the same quarter of the previous fiscal
year, operating income decreased to 44.3% from the same quarter of the previous fiscal year. The skyrocketingpurchase price at foreign subsidiaries lowered gross profit margin by 2.1%. Also, though we strenuously made ourefforts to lower logistic cost, by switching to cheaper shipping companies and by utilizing partners’ logistics
networks, proactive advertising and sales promotion, etc., such as real exhibitions reopened after COVID-19
pandemic, and up-front investment, such as CAPEX and recruiting, increased sales and administrative costs
compared to the same quarter of the previous fiscal year.

As for non-operating Profit and Loss, foreign exchange gain increased compared to the same quarter of theprevious fiscal year due to further depreciation of yen in the exchange market.
Our mission, Future strategies, and SDGs Initiatives.
Passion for our establishment was “Heart and Art”, which has never been changed nor forgotten ever since.
Underpinned with passion and mission we have a long history of and reputation for designed gardening andinnovation, inspired by traditional Japanese aesthetics (such as wabi-sabi, elegance and refinement) and British
garden cultures etc., integrating the beauty of nature into daily lives and spiritual values.
As future strategies, in Pro-use segment, we will further promote DX-enabled sales promotions such as hybrid ofreal and internet, AR/MR, etc., for the purpose of brand value enhancement and sales promotion reinforcement.
Also, we will expand the sales channels by strengthening sales and proposals toward landscapes.
In Home-use segment, we will further strengthen e-commerce, which we have witnessed stable growth.
Also, we will promote innovative new product developments in our own factories and accelerate simultaneous
sales efforts of the global items.
As for the overseas segment, we are committed to launch trading with large home centers and further strengthen
sales promotion, especially in Europe (France, Italy etc.), which were relatively left behind in our overseas
geographical sales efforts. Also, we will strengthen our sales promotion by newly introducing sales items and by
developing the new products, thereby proposing the comprehensive product mix which decorate the whole garden
toward more enjoyable and comfortable space.
In addition, our competitive advantageous business model “mass customization”, which accommodates eachcustomer’s needs by tools, equipment, and system, significantly contributes to our success. Under this model, we
will further promote tailored Garden & Exterior, not as the producer of consumer items, but as the creator of
professional materials and space. Also, we appointed new officer responsible for “market creation”, which
manifests our commitment to augment sales by venturing into untapped industries and fields.
Our employees are precious human capital, and continue to nurture them toward “all-engagement, diversity &Inclusion” working environment and culture.
Also, as a member of our society, we have been promoting Eco Garden (recycle, reduce, reuse) ensuring
sustainable consumption and production patterns.

(2) Explanation on the Financial Position
1) Status of Assets, Liabilities, and Net assets
Total assets at the end of the current third quarter amounted to 26,082,826 thousand yen, an increase of 2,416,831
thousand yen from the end of the previous consolidated fiscal year. Current assets have been increased by
17,625,623 thousand yen (an increase of 1,705,210 thousand yen from the end of the previous consolidated fiscal
year). Note receivable, account receivable and contract assets have been increased, mainly due to our sales
promotion of the support of housing providers and housing reformers to propose exteriors. Also, finished goods
have been increased, primarily due to the temporary demand decrease affected by restrained buying of gardening
products, with the price rise in materials and energy.
Noncurrent assets have been increased by 8,457,202 thousand yen (an increase of 711,620 thousand yen from theend of the previous consolidated fiscal year), mainly due to an increase of tangible noncurrent assets.
Current liabilities at the end of the current third quarter amounted to 11,278,082 thousand yen (an increase of
1,303,836 thousand yen from the end of the previous consolidated fiscal year), primarily due to an increase of
short-term loans payable, to finance incremental working capital at the beginning of fiscal year.
Noncurrent liabilities at the end of current third quarter amounted to 832,868 thousand yen (an increase of
205,588 thousand yen from the end of the previous consolidated fiscal year), primarily due to an increase of othernoncurrent liabilities, partially offset by a decrease of long-term loans payable.
Total net assets at the end of the current third quarter amounted to 13,971,875 thousand yen (an increase of
907,407 thousand yen from the end of the previous consolidated fiscal year), mainly due to an increase ofaccumulated other comprehensive income.
2) Explanation on Future Performance Forecast
In view of actual performance to the current third quarter, we revised the consolidated financial results forecast
for the full year announced on March 3, 2022. For more detailed information, due attention should be paid to"Revision to the Consolidated Financial Results Forecast for the Fiscal Year Ending January 20, 2023” announced
today.

2. Quarterly Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
FY2023 3Q(As of Oct. 20, 2022)

FY2022 4Q(As of Jan. 20, 2022)
ASSETS
CURRENT ASSETS:
Cash and deposits
Note receivable, account receivable
Note receivable, account receivable andcontract assets
Electronically recorded receivables
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
NON-CURRENT ASSETS:
Tangible assets
Property, plant and equipment (net)
Buildings and structures, net
LandConstruction in progress
Others (net)Total tangible assets
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OthersAllowance for doubtful accounts
Total investment and other assets
Total non-current assets
TOTAL ASSETSLIABILITIESCURRENT LIABILITIES:Note and accounts payable
Electronically recorded payables
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Share capital

5,600,181
3,096,998

5,754,293―

3,435,807

586,558
3,998,831
506,015
1,344,812
927,886△140,872
15,920,412

606,491
4,959,671
562,561
1,629,350
824,658△147,211
17,625,623

3,643,980
1,043,608
208,158
904,004
5,799,751

3,985,740
1,123,571
17,144
1,211,586
6,338,042

24,747472,197496,945

55,312476,473
531,785

225,576
121,401
1,124,846△22,939
1,448,884
7,745,581
23,665,994

264,478
192,927
1,149,706△19,739
1,587,373
8,457,202
26,082,826

3,513,059
1,071,036
3,734,870
39,140338,590
21,684
1,255,864
9,974,245

3,056,320
1,246,539
5,157,387
36,000371,449
146,263
1,264,122
11,278,082

111,000
9,086
222,914284,279
627,280
10,601,526

85,087
10,632
235,517501,631
832,868
12,110,951

3,043,623

3,043,623―

Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeStock subscription rights
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES and NET ASSETS

3,094,927
6,137,003△16,651
12,258,902

3,097,865
6,363,189△13,770
12,490,907

101,669

128,568

11,335496,568
88,811
698,384

19,034
1,145,034
62,426
1,355,064

1,681
105,500
13,064,468
23,665,994

1,230
124,673
13,971,875
26,082,826

(2) Quarterly Consolidated Statement of Income and Comprehensive Income(Quarterly Consolidated Statement of Income, Cumulative)(Thousands of yen)

Net sales
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gain
Royalty income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Sales discounts
Commitment fee
OtherTotal non-operating expenses
Ordinary income
Extraordinary gains
Gain on sales of non-current assets
Total extraordinary gains
Extraordinary losses
Loss on retirements of non-current assets
Loss on sales of non-current assets
Impairment losses
Total extraordinary losses
Income before income taxes
Income tax - current
Income tax adjustment
Total income taxes
Quarterly net income
attributable to noncontrolling interests
attributable to owners of the parent

FY2022 3Q(From Jan. 21, 2021,
to Oct. 20, 2021)
15,965,282
8,732,663
7,232,618
5,833,424
1,399,194

FY2023 3Q(From Jan. 21, 2022,
to Oct. 20, 2022)
15,884,176
9,019,102
6,865,074
6,245,108
619,966

7,836
3,092
90,967
13,767
71,520187,185

6,202
3,376
463,162
33,493
81,273
587,508

53,80327,584
3,530
24,968109,886
1,476,492

52,572―
1,961
14,54869,081
1,138,392

―
―

4,454
4,454

3,156
2,838
666
6,661
1,469,831
383,850
71,308455,159
1,014,672
2,553
1,012,118

2,418―
13,688
16,107
1,126,739
499,077△7,591
491,485
635,254
5,957
629,296

(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）(Thousands of yen)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeQuarterly comprehensive income
attributable to owners of parent
attributable to non-controlling interests

FY2022 3Q(From Jan. 21, 2021,
to Oct. 20, 2021)
1,014,672

FY2023 3Q(From Jan. 21, 2022,
to Oct. 20, 2022)
635,254△10,990

26,89924,895
217,119
62,772
293,797

7,699
661,680△26,384
669,894

1,308,469
1,296,785
11,6841,305,148
1,285,976
19,172

(3) Notes to Quarterly Consolidated Financial Statement(Note on Going Concern): None
(Note on Significant Change in Equity Capital): None
(Changes in Accounting Policies):<Application of Accounting Standard for Revenue Recognition>
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020. Hereinafterreferred to as the "Accounting Standard for Revenue Recognition”) has been applied from the beginning of thefirst quarter of the current fiscal year, and revenue is recognized at the amount expected to be received in
exchange for the promised goods or services when control of the promised goods or services has been transferredto the customer.
In accordance with the alternative treatment prescribed in Paragraph 98 of the "Guidance on AccountingStandard for Revenue Recognition" (ASBJ Guidance No. 30, March 26, 2021), for domestic sales of products, ourCompany recognizes revenue at shipping point if the interval between shipment and transfer of the control isnormal.
The major changes resulting from the application of the Accounting Standard for Revenue Recognition are as
follows
 Sales promotion expenses and sales discount: A portion of sales promotion expenses previously recorded inselling, general and administrative expenses and sales discount previously recorded in non-operating expenses
are deducted from net sales.
The Company has followed the transitional treatment prescribed in the provision of Paragraph 84 of the
Accounting Standard for Revenue Recognition, and the cumulative effect of retrospective application of the new
accounting policy prior to the beginning of the first quarter of the current fiscal year has been included in retained
earnings at the beginning of the first quarter of the current fiscal year.
Consequently, the effect of this change on profit and loss for the first quarter of the current fiscal year isimmaterial. There is no effect on the beginning balance of retained earnings for the first quarter of the current
fiscal year.
Due to the application of Accounting Standard for Revenue Recognition "notes and accounts receivable," which
was included in "current assets" in the consolidated balance sheet for the previous fiscal year, is included in"notes, accounts receivable and contract assets" in the consolidated balance sheet for the first quarter of thecurrent fiscal year.
In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Accounting Standard for
Revenue Recognition, no reclassification has been made to reflect the new presentation for the previous
consolidated fiscal year.

<Application of Accounting Standard for Fair Value Measurement>
The " Accounting Standard for Fair Value Measurement " (ASBJ Statement No. 30, July 4, 2019; hereinafterreferred to as the " Accounting Standard for Fair Value Measurement ") has been applied from the beginning of
the first quarter of the current fiscal year, and in accordance with the transitional treatment stipulated in Paragraph
19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the new accounting policy will be applied
prospectively. There is no impact on the quarterly consolidated financial statements.