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 Year Ended March 31, 2023
[Japanese GAAP]May 12, 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 Annual General Meeting of Shareholders: June 28, 2023
Scheduled date of commencing dividend payments: June 29, 2023
Scheduled date of filing annual securities report: June 28, 2023
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 01, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2023
26,423
23.8
910
1,574
(30.1)
886(25.7)March 31, 2022
21,339
4.8
(620)
2,253
1,192
(Note) Comprehensive income:Fiscal year ended March 31, 2023:¥
1,029 million [(16.9) %]Fiscal year ended March 31, 2022:¥
1,240 million [-%]Basic earnings per Diluted earnings per Rate of return on
share
share
equityOrdinary profit tototal assets ratio

Yen
Yen
%
Fiscal year ended
March 31, 2023
29.38
5.7
March 31, 2022
40.46
9.0
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:

Operating profit to
net sales ratio

%

%

6.5
10.0
¥
¥

3.4
(2.9)
- million- million(Note) Diluted earnings per share are not provided as there are no potential shares with dilutive effect.
(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Million yen

Million yen

24,15624,164As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio¥¥

15,936
15,05915,936 million
15,058 million

Net assets per share

%

Yen

65.9
62.3

528.51499.39(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

1,725
3,014

(1,408)(708)(1,172)
1,354

10,725
11,574

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Payoutratio

Total
dividends

Total(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2022

-

0.00

-

5.00

5.00

151

12.3

1.0

March 31, 2023

-

0.00

-

7.00

7.00

211

23.8

1.3

-

-

-

5.00

5.00

Fiscal year ending
March 31, 2024

37.8

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 01, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Six months ended
September 30, 2023
Full year

Operating profit% Million yen

Profit attributable to Basic earnings perowners of parent
share

Ordinary profit% Million yen% Million yen%

Yen

13,0001.2

500(24.8)

510(61.4)

280(72.2)

9.28

26,200(0.8)

800(12.1)

820(47.9)

400(54.8)

13.26* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2023:
30,301,784 shares
March 31, 2022:
30,301,784 shares2) Total number of treasury shares at the end of the period:
March 31, 2023:
17,762 shares
March 31, 2022:
17,655 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2023:
30,153,374 sharesFiscal year ended March 31, 2022:
29,476,328 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 not includedin the total number of treasury shares at the end of the period above.

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 01, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen

%

2,565
2,827

(9.2)
12.6

56
395

(85.6)
1,095.0

68458(85.0)
208.0

61
482

(87.2)-

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Yen

Yen

2.03
16.36

-

(Note) Diluted earnings per share are not provided as there are no potential shares with dilutive effect.
(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Million yen

20,637
21,239Net assets
Million yen

Capital adequacy ratio%

Net assets per share
Yen

16,13778.1
535.16
16,08875.7
533.56
As of March 31, 2023:¥
16,137 million
As of March 31, 2022:¥
16,088 million* Consolidated financial results reports are outside the scope of audit 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. Overview of Operating Results, etc. (4) Outlook” on page 5 of the attachments of this consolidated
financial results report.

Table of Contents – Attachments
1. Overview of Operating Results, etc. ........................................................................................................ 2(1) Overview of Operating Results for the Fiscal Year under Review ........................................................ 2(2) Overview of Financial Position for the Fiscal Year under Review ........................................................ 4(3) Overview of Cash Flows for the Fiscal Year under Review .................................................................. 4(4) Outlook .................................................................................................................................................. 5
2. Basic Policy on Selection of Accounting Standards ................................................................................ 5
3. Consolidated Financial Statements and Principal Notes ......................................................................... 6(1) Consolidated Balance Sheets ............................................................................................................... 6(2) Consolidated Statements of Income and Comprehensive Income ....................................................... 8(3) Consolidated Statements of Changes in Equity ..................................................................................10(4) Consolidated Statements of Cash Flows .............................................................................................12(5) Notes to Consolidated Financial Statements .......................................................................................14(Notes on going concern assumption) .............................................................................................14(Changes in accounting policies) ....................................................................................................14(Segment information, etc.) .............................................................................................................14(Per share information) ....................................................................................................................14(Significant subsequent events) .......................................................................................................14

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023), the Japanese economy
experienced price increases of all commodity items, including energy and various supplies, which profoundly
impacted on both people’s daily lives and business activities. These price increases were attributable to soaring
global resource prices and supply chain disruptions caused by geopolitical risks, as well as the rapid depreciationof the yen in the exchange market. The economy was also impacted by the infectious disease, as full lifting of
the quasi-state of emergency measures in late March 2022 caused temporal resurgence of the infection.
Meanwhile, there were signs of improvement in consumer confidence and people’s traffic as a result of thegovernment implementing measures to balance the infection control and the promotion of economic activities,
driven, for example, by a campaign encouraging travel nationwide.
In the food service industry, although it was temporarily affected by the seventh and the eighth waves of
COVID-19 infections after behavioral restrictions were lifted by the government, the gradual increase in people’s
traffic put the industry in a recovery trend. The trend was further strengthened mainly by improvements in service
consumption and inbound consumption, backed by the campaign to encourage nationwide travel and the easingof border restrictions. Meanwhile, the business environment remained challenging, with all costs rising,including food supplies, labor, utilities, and logistics.
Under these circumstances, the Group has given top priority to measures to prevent the spread of theinfectious disease from the standpoint of protecting the safety and health of customers and employees. In addition,
the Group is implementing the new Medium-term Management Plan, “Challenge to ‘300’”, with firmly keeping
viewpoint of putting ourselves in customers’ places. In accordance with the Plan, we are continuously striving to
improve our basic value of “deliciousness and hospitality” and to pursue “food and health” under the theme ofpursuing “sustainability” and realizing “regrowth”. In order to meet the needs of various customers, we willcontinue to flexibly implement sales measures such as developing take-away products, increasing the number ofrestaurants that offer delivery services or serve during the morning hours, and installing vending machines forfrozen food. In this way, we will remain committed to improving the value we provide to our customers and our
corporate value.
In addition, from a medium- to long-term perspective, we will promote digital transformation and enhance
the use of information technology in various operations, and focus on “what people do = value creation” tofurther increase productivity in response to the lowering birthrate and aging society, and declining populationthat will continue to accelerate going forward.
The overview of our business segments is as follows.

Food Service Business
1) Sagami
Sagami held a cooking fair nine times as sales promotion measures in all restaurants.
Furthermore, we executed “Sagami Official Twitter Follow & Retweet Campaign” once in April and October,
respectively, “Golden Week Coupon Distribution” once in April, “Father’s Day” promotion once in June, “Big
Gratitude Summer Fair” once in July, “Distribution of Silver Week Coupons” once in September, “WinterCampaign of Big Thanks Giving Day” once in November, “Year-end and New Year Coupon Distribution”
promotion once in December, “JAF Plus Coupon Distribution” promotion once in January, “Distribution of
Leaflet with Ehomaki (a rolled sushi) and Hamaguri (clam) Dish Coupon” event once in February, and“Foundation Anniversary Fair” once in March. In addition, as part of the regional sales promotion measures, we
held “Invitation to Misono-za Campaign” in June, carried out a joint program with “Central Aichi SymphonyOrchestra” on which we handed out a brand promotion leaflet at the performance venue in October andNovember, each held once, offered “Wajima Natural Fugu-ten (tempura of globefish) and Miso-nikomi (udonnoodles stewed with miso)” at specified restaurant in collaboration with Wajima City, Ishikawa Prefecture, andconducted “Senkyowari (Election Day Discount) Campaign” within the restaurants in Aichi Prefecture in
February that allowed diners to get a 10% discount from total prices by presenting a voting certificate issued
2upon completion of voting. Moreover, we released the Sagami Official App in September.
As a result, sales from existing restaurants increased by 25.0% year on year, the number of customers at
existing restaurants increased by 21.0% year on year, and the average spending per customer increased by 3.3%
year on year.
As for restaurants, the Company opened “Sagami Handa Inter Restaurant” (in September), “Sagami
Kizugawa Shiroyamadai Restaurant” (in December), “Sagami Nagakute Restaurant” (in January), and “Sagami
Toyoyama Restaurant” (in March). On the other hand, the Company closed “Sagami Nishiotsu Restaurant” (inMay), “Sagami Fujieda Restaurant” (in August), and “Sagami Kagiya Restaurant” (in October).
The number of Sagami restaurants was 133 at the end of the fiscal year under review.

2) Ajino-Mingei
Ajino-Mingei held a “Cooking Fair” seven times as sales promotion project for all restaurants and “Mother’s
Day Fair”, “Father’s Day Fair”, “All-you-can-eat Tenobe Udon (hand-stretched udon noodles)” promotion,“Respect for the Aged Day Fair”, “Japanese Food Day Fair”, “Year-End and New Year Fair”, and “Setsubun (theclose of winter day) and Ehomaki Fair” once, respectively.
In addition, “a 10% discount campaign for dining in the restaurant and take-out” was offered along with“Big Gratitude Summer Fair”, “Autumn New Menu Fair”, and “Spring Delicacy Fair” each held once.
As for restaurants, the Company closed “Ajino-Mingei Nishikokubunji Restaurant” (in August).
The number of Ajino-Mingei restaurants, including franchise restaurants, was 51 at the end of the fiscal
year under review.
3) Don Don An
Don Don An held a “Cooking Fair” nine times as a sales promotion project for all restaurants. In addition, Don
Don An held a “Free Large-sized Noodle Campaign” once in April and a “GO! Don Don An Coupon Campaign”
once in May, October, and February, respectively.
As for restaurants, we changed the type of business operation of “Katsutani Ichinomiya Bisai Restaurant”
to open “Don Don An Ichinomiya Bisai Restaurant” (in November). Meanwhile, we closed “Don Don An
Tobishima Restaurant” (in December).
The number of Don Don An restaurants, including franchise restaurants, was 32 at the end of the fiscal
year under review.
4) Other Restaurants
In the Other Restaurants segment, Aiso-Ya held a “Cooking Fair” 12 times. Furthermore, 3 Aiso-Ya restaurants,
Tendo, Daijuji, and Togo started serving during morning hours in July. Large-sized, self-service-type Udon
noodles restaurant Seimen-Daigaku held a “Cooking Fair” 11 times.
As for restaurants in Japan, we opened “Juwari Soba Second Generation Chosuke Gifu Iwataki Store” in
Gifu City, Gifu Prefecture (in May), “Juwari Soba Second Generation Chosuke Inazawa Store” in Inazawa City,
Aichi Prefecture (in March), and “Juwari Soba Second Generation Chosuke Noda Store” in Noda City, Chiba
Prefecture (in March). On the other hand, we closed “Gochitaku Ajino-Mingei Nerima Heiwadai Restaurant” (inOctober), “Bubuka Nishidai Restaurant” (in November), “Gochitaku Sagami Moriyama Restaurant” (inDecember), “Totokura Shonandai Restaurant” (in December), and “JINJIN Sano Restaurant” (in January). We
closed “Katsutani Ichinomiya Bisai Restaurant” (in November) and “Aiso-Ya Toyoyama Restaurant” (inFebruary) as well, with the conversion of the type of business operation.
As for restaurants overseas, we opened “SAGAMI Bellinzago Lombardo” (in April), as a franchiserestaurant in the suburbs of Milan, Italy. On the other hand, we closed “SAGAMI Siena” (in August) in Italy.
The number of restaurants, including franchise restaurants, was 25 in Japan and９overseas, for a total of
34 restaurants at the end of the fiscal year under review.
As a result, for the fiscal year ended March 31, 2023, net sales were ¥26,423 million, operating profit was ¥910
million, ordinary profit was ¥1,574 million, and profit attributable to owners of parent was ¥886 million. In
addition, the number of group restaurants was 250 at the end of the fiscal year under review.
3(2) Overview of Financial Position for the Fiscal Year under Review
The total assets at the end of the fiscal year under review were ¥24,156 million, a decrease of ¥７million fromthe end of the previous fiscal year.
Current assets decreased by ¥681 million from the end of the previous fiscal year to ¥12,469 million. The
main factors were a decrease of ¥848 million in cash and deposits and an increase of ¥112 million in accounts
receivable - trade.
Non-current assets increased by ¥673 million from the end of the previous fiscal year to ¥11,687 million.
The main factors were an increase of ¥389 million in buildings and structures and an increase of ¥140 million in
investment securities, and a decrease of ¥27 million in guarantee deposits.
Current liabilities increased by ¥202 million from the end of the previous fiscal year to ¥4,700 million.
The main factors were an increase of ¥164 million in notes and accounts payable - trade, an increase of ¥141
million in accounts payable - other, and a decrease of ¥304 million in income taxes payable.
Non-current liabilities decreased by ¥1,087 million from the end of the previous fiscal year to ¥3,519
million. The main factors were a decrease of ¥1,160 million in long-term borrowings, an increase of ¥55 million
in provision for share awards, and an increase of ¥15 million in asset retirement obligations.
Net assets increased by ¥877 million from the end of the previous fiscal year to ¥15,936 million. The main
factors were an increase of ¥734 million in retained earnings and an increase of ¥138 million in valuationdifference on available-for-sale securities.
(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (hereinafter "cash") at the end of the fiscal year under review amounted to ¥10,725
million, a decrease of ¥848 million from the end of the previous fiscal year.
The status of respective cash flows and underlying factors for the fiscal year under review are as follows:（Cash flows from operating activities）
Net cash provided by operating activities amounted to ¥1,725 million. The main inflows include ¥1,110
million in profit before income taxes, ¥443 million in impairment losses, and ¥89 million in increase inaccounts payable - other, while the main outflow includes ¥547 million in income taxes paid.
（Cash flows from investing activities）
Net cash used in investing activities amounted to ¥1,408 million. The main inflow includes ¥50 million inproceeds from refund of guarantee deposits, while the main outflow includes ¥1,353 million in purchase ofproperty, plant and equipment.
（Cash flows from financing activities）
Net cash used in financing activities amounted to ¥1,172 million. The main outflows include ¥150 million in
dividends paid and ¥1,012 million in repayments of long-term borrowings.
(Reference) Changes in indicators related to cash flow
Fiscal year
ended March
31, 2019
70.8

Fiscal year
ended March
31, 2020
67.3

Fiscal year
ended March
31, 2021
54.4

Fiscal year
ended March
31, 2022
62.3

Fiscal year
ended March
31, 2023
65.9

Capital adequacy ratio based on fair value (％)

169.5

171.7

150.9

149.6

160.8

Interest-bearing debt to cash flow ratio (％)

148.8

1,022.5

-

161.7

224.1

Interest coverage ratio (times)

419.9

60.7

-

386.7

270.6

Capital adequacy ratio (%)(Notes) Capital adequacy ratio: Equity / Total Assets
Capital adequacy ratio based on fair value: Market capitalization / Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / Net cash flows from operating activities
Interest coverage ratio: Net cash flows from operating activities / Interest paid
1) All indicators were calculated using the consolidated financial statement.
2) Market capitalization is calculated by multiplying the closing share price at the end of the period by the number ofoutstanding shares at the end of the period.
3) Net cash flows from operating activities are the figure of net cash provided by (used in) operating activities stated in
the Consolidated Statements of Cash Flows. Interest-bearing debt includes all debts stated in the Consolidated Balance
Sheets for which interest is paid. Interest paid is the amount of interest paid stated in the Consolidated Statements of4

4)

Cash Flows.
Interest-bearing debt to cash flow ratio and interest coverage ratio for the fiscal year ended March, 31 2021 is notprovided as net cash flows from operating activities for the period were negative.

(4) Outlook
The environment surrounding our Group is expected to remain challenging with ongoing concerns about supply
chain disruptions caused by geopolitical risks and soaring costs in all aspects such as food supplies, labor, utilities,
and logistics, in addition to declining and aging population, competition against other industries, and global pricehike in resources along with inflation pushed by the yen depreciation.
The Group is committed to all possible measures from the standpoint of prioritizing the safety of customers
and employees. In addition, while firmly keeping the viewpoint of putting ourselves in customers’ places as a
key principle, we strive to "strengthen our business foundation", "improve profitability", and "promote growthstrategies" and advance CSV (Creating Shared Value) management. Specifically, we will evolve our existing
CSR initiatives to enhance our efforts in addressing the Sustainable Development Goals (SDGs).
In our existing restaurants, we will expand sales channels by developing take-away products and delivery
services while further improving service and quality. As for the opening of new restaurants, we will steadily
progress with the opening of our mainstays, Sagami and Ajino-Mingei, as well as small-sized franchise storeswithin Japan, and SAGAMI in overseas countries, in particular, the ASEAN region.
For the fiscal year ending March 31, 2024, we forecast net sales of ¥26,200 million, operating profit of¥800 million, ordinary profit of ¥820 million, and profit attributable to owners of parent of ¥400 million, on aconsolidated basis.

2. Basic Policy on Selection of Accounting Standards
The Group adopts Japanese generally accepted accounting principles (Japanese GAAP) because its business iscurrently centered around Japan. However, we intend to consider adopting the International Financial ReportingStandards (IFRS) by taking into consideration the changes in our foreign shareholders’ ratio and the trend of
IFRS adoption among other Japanese companies.

53. Consolidated Financial Statements and Principal Notes(1) Consolidated Balance Sheets(Thousand yen)
As of March 31,2022
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Other

As of March 31,2023

11,574,143
580,614
119,494
437,045439,511

10,725,470
693,270
148,159
401,068
501,235

13,150,809

12,469,205

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

13,638,991(11,890,081)

14,111,675(11,973,140)

Buildings and structures, net

1,748,909

2,138,535

Machinery, equipment and vehicles
Accumulated depreciation and impairment

3,330,673(2,967,823)

3,417,765(3,035,086)

Machinery, equipment and vehicles, net

362,849

382,679

Tools, furniture and fixtures
Accumulated depreciation and impairment

975,252(923,953)

971,472(893,667)

Total current assets

Tools, furniture and fixtures, net

51,29977,805350,583(330,350)

357,123(336,938)

Leased assets, net

20,232

20,184Land
Construction in progress

6,442,133
5,951

6,442,133
153,134

Total property, plant and equipment

8,631,375

9,214,472

Leased assets
Accumulated depreciation and impairment

Intangible assets
Other

102,248

94,603

Total intangible assets

102,248

94,603

Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits

571,339
77,6881,442,245

712,077
43,017
1,414,253

104,131
84,769129,853
79,284

Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

6

2,280,174

2,378,485

11,013,798

11,687,561

24,164,607

24,156,766

(Thousand yen)
As of March 31,2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for loss on store closings
Other

As of March 31,2023

608,127
1,012,296
1,700,443
428,702110,765
212,830

772,579
1,160,629
1,841,692
124,524
98,248
246,107-

49,970424,652

10,711
396,001

4,497,817

4,700,464

Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Provision for share awards

3,841,817
171,10728,9032,681,188
165,952
84,511

Asset retirement obligations
Long-term guarantee deposits
Other

461,529
69,04435,217477,123
69,12941,835

Total non-current liabilities

4,607,619

3,519,739

Total liabilities

9,105,437

8,220,204

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

9,090,653
6,192,923(101,395)(184,400)

9,090,653
6,192,923
633,337(184,531)

14,997,781

15,732,382

66,249204,695

Total current liabilities

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

7(5,556)(515)

60,692

204,179696-

15,059,170

15,936,562

24,164,607

24,156,766

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year
ended March 31,2022

For the fiscal year
ended March 31,2023

Net sales
Cost of sales

21,339,433
6,649,677

26,423,094
8,490,260

Gross profit

14,689,755

17,932,833

Total selling, general and administrative expenses

15,310,069

17,022,483

Operating profit(620,314)

910,350

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Insurance claim income
Subsidy income
Miscellaneous income

760
16,44825,381
10,1142,804,252
43,448686
27,86638,937
19,670566,950
46,1382,900,405

700,249

Interest expenses
Share issuance costs
Bad debt expenses
Miscellaneous losses

8,053
1,988
13,465
3,417

6,376
29,124412

Total non-operating expenses

26,92435,9132,253,166

1,574,686

26
74,967
131

34,216-75,12534,216

2,782
779,817-1,339
443,107
18,29635,168

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Compensation income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on liquidation of subsidiaries and associates
Loss on midterm cancellation of contracts

782,599

497,912

Profit before income taxes

Total extraordinary losses

1,545,691

1,110,990

Income taxes - current
Income taxes - deferred

410,548(57,646)

250,848(26,010)

Total income taxes

352,902

224,837

Profit1,192,789

886,153

Profit attributable to owners of parent

1,192,789

886,1538

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year
ended March 31,2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

For the fiscal year
ended March 31,2023

1,192,789

886,153

50,279(2,697)

138,446
4,924

47,582

143,371

Comprehensive income

1,240,371

1,029,524

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

1,239,473

1,029,640

898

(115)

9

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022
(Thousand yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodIssuance of newsharesDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

7,873,917

4,976,188

1,216,735

1,216,735

Retainedearnings(1,294,184)

Treasury shares

Total
shareholders'equity(184,296)

11,371,625

2,433,470
1,192,789

1,192,789
(103)

(103)
-

1,216,735

1,216,735

1,192,789(103)

3,626,155

9,090,653

6,192,923(101,395)(184,400)

14,997,781

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulated Share acquisition Non-controlling Total net assets
difference onrightsinterests
translation
otheravailable-foradjustment
comprehensive
sale securities
incomeBalance at beginningof period
Changes during
periodIssuance of newsharesDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period15,969(1,960)14,0089,550

691

11,395,875

2,433,470
1,192,789(103)
50,279(3,596)

46,683(9,550)5

37,13950,279(3,596)

46,683(9,550)5

3,663,294

66,249(5,556)

60,692-696

15,059,170

10

For the fiscal year ended March 31,2023(Thousand yen)
Shareholders' equity

Balance at beginningof period
Changes during
periodIssuance of newsharesDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
periodShare capital

Capital surplus

9,090,653

6,192,923

Retainedearnings(101,395)

Treasury shares

Total
shareholders'equity(184,400)

14,997,781(151,420)(151,420)

886,153

886,153
(131)

(131)
-

-

-

734,732(131)

734,600

9,090,653

6,192,923

633,337(184,531)

15,732,382

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulated Share acquisition Non-controlling Total net assets
difference onrightsinterests
translation
otheravailable-foradjustment
comprehensive
sale securities
incomeBalance at beginningof period
Changes during
periodIssuance of newsharesDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period66,249(5,556)

60,692-696

15,059,170(151,420)
886,153(131)
138,446

5,040

143,487-(696)

142,790

138,446

5,040

143,487-(696)

877,391

204,695(515)

204,179--

15,936,562

11

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended March 31,2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Bad debt expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for share awards
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for loss on store
closings
Interest and dividend income
Subsidy income
Interest expenses
Share issuance costs
Loss on retirement of non-current assets
Loss (gain) on liquidation of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities

12

For the fiscal year
ended March 31,2023

1,545,691
395,802779,817
100,658
13,465(25,381)(26)

1,110,990
385,011443,107
29,124(38,937)-(74,967)-

11,20833,276-49,9705,767
723

55,607-(4,940)10,711(17,209)(2,804,252)
8,053
1,988
2,782

(28,552)(566,950)
6,376
1,339

-

18,296(95,888)(116,654)
108,805
189,427
230,710(112,566)
7,561
164,284
89,654(20,699)

255,582

1,637,605

16,517(7,793)2,804,252(53,957)

27,934(6,376)566,950(547,204)-

47,041

3,014,600

1,725,951(646,545)
131
132(1,353,858)-

21,645

8,264(37,449)
56,360(103,048)(19,179)
50,969(94,544)(708,774)(1,408,348)

(Thousand yen)
For the fiscal year
ended March 31,2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Repayments of lease liabilities
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
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

For the fiscal year
ended March 31,2023(500,000)
500,000(1,058,986)
(103)
(41)
(8,639)(1,012,296)(131)(150,682)(9,600)2,421,931-

1,354,160(1,172,711)

31,592

6,435

3,691,579(848,672)

Cash and cash equivalents at beginning of period

7,882,563

11,574,143

Cash and cash equivalents at end of period

11,574,143

10,725,470

13

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) from the beginning of
the fiscal year under review, and will prospectively apply the new accounting policies stipulated by the Fair Value
Measurement Guidance in accordance with the transitional treatment provided in Paragraph 27-2 of the Fair
Value Measurement Guidance. This application has no impact on the consolidated financial statements.
(Segment information, etc.)(Segment information)
The Group’s only business segment is “food services”. Since other business segments are considered to beimmaterial, segment information is omitted.
(Per share information)
Items
Net assets per share

For the fiscal year ended
March 31, 2022
¥499.39

For the fiscal year ended
March 31, 2023
¥528.51¥40.46¥29.38

Basic earnings per share(Notes) 1) Diluted earnings per share are not provided as there are no potential shares with dilutive effect.
2) 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 forthe purpose of calculating basic earnings per share. The average number of treasury shares during the period that was
deducted for the purpose of calculating basic earnings per share was 130,700 shares. The number of treasury shares atthe end of the period that was deducted for the purpose of calculating net assets per share was 130,700 shares.
3) The basis for the calculation of basic earnings per share is as follows:
Items
Basic earnings per share
Profit attributable to owners of parent(Thousand yen)
Profit not attributable to common shareholders(Thousand yen)
Profit attributable to owners of parent relating tocommon shares (Thousand yen)
Average number of common shares during theperiod (Thousand shares)

For the fiscal year ended
March 31, 2022
40.46

For the fiscal year ended
March 31, 2023
29.38

1,192,789

886,155--

1,192,789

886,155

29,47630,153(Significant subsequent events)
Not applicable.

14