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

Consolidated Financial Results
for the Six Months Ended September 30, 2023
[Japanese GAAP]
November 13, 2023
Company name: Sagami Holdings Corporation
Stock exchange listing: Tokyo, Nagoya
Code number: 9900
URL: https://www.sagami-holdings.co.jp
Representative: Hisashi Onishi
President
Contact: Yasufumi Nakajima
Executive Officer in charge of management
Phone: +81-52-737-6000
Scheduled date of filing quarterly securities report: November 13, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended
September 30, 2023
15,027
16.9
930
39.8
970
(26.7)
734(27.0)
September 30, 2022
12,845
31.0
665
1,323
193.3
1,007
176.8
(Note) Comprehensive income:Six months ended September 30, 2023:¥
814 million [(22.7) %]Six months ended September 30, 2022:¥
1,054 million [163.9%]
Basic earnings
per share

Diluted earnings per
share

Yen
Yen
Six months ended
September 30, 2023
24.36
September 30, 2022
33.41
(Note) Diluted earnings per share are not provided as there are no potential shares with dilutive effect.

(2) Consolidated Financial Position
Total assets
Millions of yen
As ofSeptember 30, 2023
24,296
March 31, 2023
24,156(Reference) Equity: As of September 30, 2023:
As of March 31, 2023:

Net assets

Capital adequacy ratio

Millions of yen¥¥

16,576
15,936
16,576 million
15,936 million

%

68.2
65.9

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2023

-

0.00

-

7.00

7.00

Fiscal year ending March 31, 2024

-

0.00
-

5.00

5.00

Fiscal year ending March 31, 2024
(Forecast)(Note) Revision to the forecast for dividends announced most recently:

Year-end

Total

No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen

%

Yen

900

1.5

29.84

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

No

Full year
28,000
5.9
1,250
37.3
(Note) Revision to the financial results forecast announced most recently:

1,300
No

% Millions of yen(17.4)* Notes:(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):
No(Company name: )New
Exclusion:(Company name: )(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
September 30, 2023:
30,301,784 shares
March 31, 2023:
30,301,784 shares
2) Number of treasury shares at the end of the period:
September 30, 2023:
17,967 shares
March 31, 2023:
17,762 shares
3) Average number of shares outstanding during the period:
Six months ended September 30, 2023:
Six months ended September 30, 2022:

30,159,447 shares
30,153,418 shares(Note) The Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E) related to the “Board Benefit Trust (BBT)”
plan are included in the treasury shares to be deducted in calculating the average number of shares during the period, but notincluded in the total number of treasury shares at the end of the period above.

* 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
Financial results forecasts and other forward-looking statements in this document are based on information currently available to theCompany and certain assumptions deemed reasonable. Actual performance and other results may be significantly different from theforecasts due to various factors. For details on the assumptions for financial results forecasts and notes on the use of financial results
forecasts, etc., please refer to “1. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information”
on page 3 of the attachments of this quarterly financial results report.

Table of Contents – Attachments
1. Qualitative Information on Quarterly Financial Results ...........................................................................2(1) Explanation of Operating Results ..........................................................................................................2(2) Explanation of Financial Position ..........................................................................................................3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information........3
2. Quarterly Consolidated Financial Statements and Principal Notes ...........................................................4(1) Quarterly Consolidated Balance Sheets .................................................................................................4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................6(3) Quarterly Consolidated Statements of Cash Flows ...............................................................................8(4) Notes to Quarterly Consolidated Financial Statements .........................................................................9(Notes on going concern assumption) ................................................................................................9(Notes in case of significant changes in shareholders’ equity) ...........................................................91

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023), the Japanese
economy remained uncertain, mainly due to continually soaring global resource prices and supply chain
disruptions caused by geopolitical risks, as well as rising prices of supplies resulting from the depreciation of theyen in the exchange market and an increase in labor costs primarily caused by the staff shortage. Under thecircumstances, there were signs of improvement in consumer confidence and people’s traffic as a result of thereclassification of COVID-19’s category to Class 5 under the Infectious Diseases Control Act, which removed
the legal requirement to refrain from leaving the house, and the measures to economic promotion activities suchas a campaign encouraging travel nationwide by the Government and issuance of premium gift vouchers by the
local governments.
In the food service industry, we saw a stronger recovery trend, mainly due to increase of domestic
consumption and expansion of inbound consumption. Meanwhile, the business environment remained
challenging, with all costs rising, including food supplies, labor, utilities, and logistics.
Under these circumstances, the Group is implementing the Medium-term Management Plan 2023-2025,“Together”, under a new management structure established in April. In accordance with the Plan, we are striving
to improve our basic value of “deliciousness and hospitality” and to “pursue to provide values by food” aiming
for good health both in “mind and body” under the theme of pursuing “sustainability” and realizing “regrowth”.
In addition, we will endeavor to achieve the “material and spiritual richness” of our human resources, our greatest
management resource, and support employees so that they can feel both “worth living” and “rewarding” in theirworks. In this way, we will remain committed to improve the value we provide to our customers and our corporate
value.
The overview of our business segments is as follows.

(Overview of business segments)
1) Sagami
Sagami held a “Cooking Fair” four times as sales promotion measures in all restaurants.
In addition, we carried out “Golden Week Coupon Distribution” promotion and “Distribution of Advertising
Inserts of New Menu” each once in April, “Father’s Day” promotion once in June to promote items using eel,
“Summer Gratitude Fair” once in July, and “Silver Week Coupon Distribution” promotion and “Respect for the
Aged Day Fair” each once in September. Additionally, we broadcasted television advertisements for “Summer
Gratitude Fair” in July and for “Hokkaido Taste Tour Menu” in August. Furthermore, we conducted “Senkyowari(Election Day Discount)” campaign in April and “Invitation to Misono-za” project in July as part of the local
sales promotions in some areas.
As a result, sales from existing restaurants increased by 14.9% year on year, the number of customers at
existing restaurants increased by 12.2% year on year, and the average spending per customer increased by 2.4%
year on year.
As for restaurants, the Company opened “Sagami Kawana Restaurant” (in May), “Sagami Anjo Sakurai
Restaurant” (in July), and “Sagami Togo Restaurant” (in September). On the other hand, the Company closed“Sagami Koshigayaminami Restaurant” (in July).
The number of Sagami restaurants was 135 at the end of the second quarter of the fiscal year under review.
2) Ajino-Mingei
Ajino-Mingei held a “Cooking Fair” four times as a sales promotion project for all restaurants. In addition, weoffered “Mother’s Day Set Meal” menu in May, and held “Father’s Day Fair” in June, “All-you-can-eat Tenobe
Udon (hand-stretched udon noodles)” promotion for six days in total in June and July, “Summer Delicacy Fair”,
in which Tebasaki (chicken wing-tip) foods and alcoholic beverages were sold at a reasonable price, in July, and“Respect for the Aged Day Fair” in September, each once, respectively. Furthermore, we broadcasted television
advertisements in the Okayama and Chiba regions in April.
2

As for restaurants, the Company closed “Ajino-Mingei Higashiyamato Restaurant” (in June).
The number of Ajino-Mingei restaurants, including franchise restaurants, was 50 at the end of the second
quarter of the fiscal year under review.

3) Don Don An
Don Don An held a “Cooking Fair” five times as a sales promotion project for all restaurants and “Don Don
Festival Fair” in April.
The number of Don Don An restaurants, including franchise restaurants, was 32 at the end of the second
quarter of the fiscal year under review.
4) Other Restaurants
In the Other Restaurants segment, Aiso-Ya held a “Cooking Fair” four times. Large-sized, self-service-type Udon
noodles restaurant “Seimen-Daigaku” held a “Cooking Fair” five times. Self-service-type Juwari Soba noodles
restaurant “Chosuke” held a “Cooking Fair” at “Kakiage Juwari Soba Chosuke” five times and at “Juwari Soba
Second Generation Chosuke” five times. In addition, we carried out “All-you-can-eat Juwari Soba” promotion at“Juwari Soba Second Generation Chosuke Noda Store” three times.
As for restaurants in Japan, the Company closed “Dela PASTA Kitchen Toki Restaurant” (in August). We
closed “Aiso-Ya Togo Restaurant” (in August) as well, with the conversion of the type of business operation.
As for restaurants overseas, the Company opened “SAGAMI Verona” (in August) as a franchise restaurant
in Verona, Italy.
The number of restaurants, including franchise restaurants, was 23 in Japan and 10 overseas, for a total of
33 restaurants at the end of the second quarter of the fiscal year under review.
As a result, for the six months ended September 30, 2023, net sales were ¥15,027 million, operating profit was¥930 million, ordinary profit was ¥970 million, and profit attributable of owners of parent was ¥734 million. In
addition, the number of group restaurants was 250 at the end of the second quarter of the fiscal year under review.

(2) Explanation of Financial Position
The total assets at the end of the second quarter of the fiscal year under review were ¥24,296 million, an increaseof ¥139 million from the end of the previous fiscal year. Current assets decreased by ¥406 million from the endof the previous fiscal year to ¥12,062 million, while non-current assets increased by ¥546 million to ¥12,233
million. Current liabilities decreased by ¥136 million from the end of the previous fiscal year to ¥4,564 million,
while non-current liabilities decreased by ¥363 million to ¥3,156 million. Net assets increased by ¥639 million
from the end of the previous fiscal year to ¥16,576 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
No revisions have been made to the consolidated financial results forecasts for the fiscal year ending March 31,
2024, from the forecasts which were announced on November 6, 2023.

3

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,725,470
693,270

10,306,099
706,791

Merchandise and finished goods
Raw materials and supplies

148,159
401,068

169,181434,921

Other

501,235

445,748

12,469,205

12,062,741

Buildings and structures, net
Machinery, equipment and vehicles, net

2,138,535
382,679

2,462,339
438,434

Land
Other, net

6,442,133
251,124

6,442,133
406,957

Total property, plant and equipment

9,214,472

9,749,864

94,603

98,268

Total intangible assets

94,603

98,268Investments and other assets
Investment securities

712,077

796,398

43,017
1,414,253

40,503
1,389,050

129,853
79,284112,450
47,409Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Other

Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

4

2,378,485

2,385,812

11,687,561

12,233,944

24,156,766

24,296,686

(Thousands of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings

772,579
1,160,629

727,226
992,296

Accounts payable - other
Income taxes payable

1,841,692
124,524

1,778,996
223,904

Contract liabilities
Provision for bonuses

98,248
246,10778,383
258,380

Provision for loss on store closings
Other

10,711445,971

10,000495,0254,700,464

4,564,213

2,681,188
165,952

2,331,546
163,650

Provision for share awards
Asset retirement obligations

84,511
477,12373,880479,216Long-term guarantee deposits
Other

69,12941,83571,37436,743

Total non-current liabilities

3,519,739

3,156,412

8,220,204

7,720,625

Shareholders' equity
Share capital

9,090,653

9,090,653

Capital surplus
Retained earnings

6,192,923
633,337

6,192,923
1,156,164

Treasury shares(184,531)(147,911)

15,732,382

16,291,829

204,695

289,779

Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - otherTotal liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5

(515)

(5,547)204,179

284,231

15,936,562

16,576,061

24,156,766

24,296,686

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Thousands of yen)
For the six months
ended September 30, 2022

For the six months
ended September 30, 2023

Net sales
Cost of sales

12,845,264
4,034,422

15,027,706
4,931,068

Gross profit

8,810,841

10,096,638

Selling, general and administrative expenses

8,145,578

9,166,024

665,263

930,614

Operating profit
Non-operating income
Interest income

342

711

Dividend income
Foreign exchange gains

15,611
74,986

13,416
11,326

Insurance claim income
Subsidy income

19,670542,560

1,561-

Miscellaneous income
Total non-operating income

9,122

19,848662,294

46,863

3,500
-

2,891
4,014

Non-operating expenses
Interest expenses
Loss on cancellation of insurance policies
Miscellaneous losses

125

216

3,626

7,121

1,323,930

970,356

-

2,433

-

2,433

Loss on retirement of non-current assets
Impairment losses

170
61,8362,456
50,398Loss on liquidation of subsidiaries and associates
Loss on sale of investment securities

18,296-

1,201

Loss on midterm cancellation of contracts

35,168-

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses

115,472

54,056

Profit before income taxes

Total extraordinary losses

1,208,458

918,733

Income taxes - current
Income taxes - deferred

202,833(1,983)

180,718
3,199

Total income taxes

200,849

183,918

Profit1,007,609

734,815

Profit attributable to owners of parent

1,007,609

734,815

6

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Thousands of yen)
For the six months
ended September 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

For the six months
ended September 30, 2023

1,007,609

734,815

52,231(5,280)85,083(5,031)

46,95180,051

Comprehensive income

1,054,560

814,867

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

1,054,676

814,867

(115)

-

7

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)
For the six months
ended September 30, 2022
Cash flows from operating activities
Profit before income taxes

For the six months
ended September 30, 2023

1,208,458

918,733

Depreciation
Impairment losses

179,967
61,836

216,844
50,398Foreign exchange losses (gains)
Loss (gain) on sale of investment securities(74,986)-(11,326)(1,232)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for share awards
Increase (decrease) in provision for loss on store
closings
Interest and dividend income(18,696)
2,992

12,272(10,630)

4,786

(711)

(15,954)(14,127)

Subsidy income
Interest expenses(542,560)
3,500

2,891

170

2,456

Loss on retirement of non-current assets
Loss (gain) on liquidation of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories

18,296-(24,924)(43,460)(13,304)(54,425)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other

55,906(158,270)(45,700)
29,771

Increase (decrease) in contract liabilities
Other, net(10,598)(112,670)(19,865)(20,648)

Subtotal

533,793

1,041,395

Interest and dividends received
Interest paid

15,644(3,500)13,841(2,891)

542,560(377,594)(80,941)

Subsidies received
Income taxes paid
Income taxes refund

47,04140,015

Net cash provided by (used in) operating activities

757,944

1,011,418

Purchase of property, plant and equipment
Proceeds from sale of investment securities(603,419)-(730,372)
13,787

Payments of guarantee deposits
Proceeds from refund of guarantee deposits(5,585)32,452(24,679)
52,860Cash flows from investing activities

Other, net

1,792(12,359)(574,759)(700,764)(506,148)(517,975)

Purchase of treasury shares
Dividends paid

(67)
(150,499)(276)(210,896)

Repayments of lease liabilities(5,313)(5,835)(662,028)(734,982)

40,733

4,957

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

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(438,109)(419,371)

Cash and cash equivalents at beginning of period

11,574,143

10,725,470

Cash and cash equivalents at end of period

11,136,033

10,306,099

8

(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.

9