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.

November 10, 2023

Consolidated Financial Results
for the Second Quarter of Fiscal Year Ending March 31, 2024
(Japanese GAAP)

Company Name: Renaissance Inc.
Listing:
Tokyo Stock Exchange
Securities Code: 2378
URL:
http://www.s-renaissance.co.jp/
Representative:
Toshiharu Okamoto, Representative Director, President and Corporate Officer
Inquiries:
Yoshitsugu Anzawa, Director, Executive Corporate Officer, Chief Financial Officer
Telephone:+81-3-5600-7811
Scheduled date to file quarterly securities report:
November 13, 2023
Scheduled date to commence dividend payments:
December 7, 2023
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for institutional investors, analysts andmedia)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2024
(April 1, 2023, to September 30, 2023)(1) Consolidated operating results (YTD)(Percentages indicate year-on-year changes)

Net sales

Operating income

Millions of yen%

Millions of yen

21,155

6.4

281

191.6

19,889

12.7

96

89.5

Six months ended
September 30, 2023
Six months ended
September 30, 2022
Note: Comprehensive income

Note:% Millions of yen

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

Millions of yen

%

214

763.9

150

―

24

―

6

―

75 million yen(104) million yen

Basic earnings per share

Diluted earnings per share

Yen

Yen

7.46

7.14

0.33

―

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

Net income attributableto owners of parent
company

Ordinary income[ - %][ - %]

Diluted earnings per share for the second quarter of fiscal year ended March 31, 2023, is not shown because there were no
dilutive shares.

(2) Consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

As of September 30, 2023

42,927

10,987

25.6

As of March 31, 2023

42,272

10,991

26.0

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:

10,976 million yen
10,979 million yen

2. Cash Dividends
Annual dividend
End of firstquarter

End of second
quarter

End of third
quarter

End of term

Total

Yen

Yen

Yen

Yen

Yen

As of March 31, 2023

―

4.0

―

4.0

8.0

Fiscal year ending March 31, 2024

―

3.0
―

5.0

8.0

Fiscal year ending March 31, 2024
(forecast)

Note:

Revisions to the most recently announced dividend forecast: None
The above “Cash Dividends” refers to the status of dividends related to common stock. Please refer to “Dividends on classshares” below for the status of dividends on class shares (unlisted) issued by the Company with different rights from thoseof common stock.

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2024, to March 31, 2025)

Net sales

Full Year
Note:

Operating income

Millions of yen%

44,000

7.9

Millions of yen(Percentages indicate year-on-year changes)
Net income
attributable to
Net income per
Ordinary income
owners of parent
share
company% Millions of yen

1,000 47.0

350%

Millions of yen

%

Yen

12.4

100

―

5.29

Revisions to the most recently announced earnings forecast: Yes
For details, please refer to the “Notice of Difference between Consolidated Earnings Forecast and Actual Earnings for theFirst Half of Fiscal Year Ending March 31, 2024, and Revision of Full-Year Consolidated Earnings Forecast” released today.

* Notes(1) Changes in significant subsidiaries during the period: None
(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatementi)
Changes in accounting policies due to revisions to accounting standards and other regulations: Noneii) Changes in accounting policies due to other reasons: Noneiii) Changes in accounting estimates: Noneiv) Restatement: None
(4) Number of issued shares (common shares)i)ii)

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

21,379,000 shares

As of March 31, 2023

21,379,000 shares

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

2,490,706 shares

As of March 31, 2023

2,490,706 sharesiii) Average number of shares outstanding during the period (YTD)
Six months ended September 30, 2023

18,888,294 shares

Six months ended September 30, 2022

18,888,294 shares

* Quarterly financial results are exempt from an audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
The earnings forecasts and other forward-looking statements in this document are based on information
available to the Company and certain assumptions that the Company considers reasonable. Actual financial
results may differ significantly from the forecasts due to various factors. Please refer to “1. Qualitative
Information on Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2024” on page 1 of
the Summary of Financial Results (Attachments) for the assumptions used in forecasting business results andprecautions regarding the use of the forecasts.
(Reference) Dividends on class shares
Breakdown of dividends per share related to class shares with different rights from those of common stock is as follows:
Annual dividend
End of first quarter
Class A SharesFiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024
(forecast)(Note)End of second
quarter

End of third quarterEnd of term

Total

Yen

Yen

Yen

Yen

Yen

―

―

―

1.57

1.57

―

4.78
―

4.78

9.56

2,092,000 Class A shares were issued on January 31, 2023.

○

Table of Contents of Attachments
1.

Qualitative Information on Financial Results for the Second Quarter of Fiscal Year Ending
March 31, 2024 ............................................................................................................................................ 2(1) Description of Operating Results ......................................................................................................... 2(2) Description of Financial Position ......................................................................................................... 4(3) Description of Consolidated Earnings Forecasts and Other Forward-Looking Information................ 52.

Consolidated Quarterly Financial Statements and Primary Notes ............................................................... 6(1) Consolidated quarterly balance sheet ................................................................................................... 6(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income ........................................................................................................................ 8(3) Consolidated quarterly statement of cash flows ................................................................................. 10(4) Notes to Consolidated Quarterly Financial Statements ...................................................................... 12(Notes on Going Concern Assumption) ............................................................................................. 12(Notes on Significant Changes in the Amount of Shareholders’ Equity) ........................................... 12

- 1 -

1.

(1)

Qualitative Information on Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2024
Description of Operating Results

During the first half of the current consolidated fiscal year (April 1, 2023, to September 30, 2023), social and economic
activities became revitalized, resulting in mostly strong growth in the number of new and enrolled members of sports clubs,
leading to the expected net sales. In terms of costs, they were lower than planned since utility costs were successfully controlled bycompany-wide energy conservation measures and government projects to mitigate drastic changes in electricity and gas prices. On
the other hand, we raised the salary level by an average of 5% in July in order to stabilize the lives of employees and enable themto perform to their ability in the face of recent price hikes. As a result, for the first half of the consolidated fiscal year under review,
net sales were 21,155 million yen (up 6.4% year-on-year), operating income came to 281 million yen (up 191.6% year-on-year),ordinary income posted 214 million yen (up 763.9% year-on-year), and net income attributable to owners of parent company was
150 million yen (up 144 million yen year-on-year).
During the first half of the consolidated fiscal year under review, the Japanese economy showed a moderate recovery even under
the price hikes due to the normalization of economic activities and the acceleration of wage increases. On the other hand, the outlook
remains uncertain due to unstable international situations and soaring resource prices caused by foreign exchange fluctuations.
In the fitness industry, the market is booming with a wide variety of business types as the external environment becomesincreasingly severe, including various rising costs such as for construction and heating/lighting. In addition, people’s awareness of
the importance of exercise and health is increasing due to the emergence of health issues associated with lifestyle changes.
The Renaissance group has the corporate philosophy of a “company for creating purpose in life (ikigai in Japanese)”, and its longterm vision is a “health solution company that enriches the age of the 100-year life span.” Based on these, it is working to realize ahealthy and long-lived society and resolve local social issues. It will do so through the maintenance and promotion of good health toenable people to work throughout their lifetime, and the “shift from treatment to prevention” initiatives that will help reduce social
security expenses such as medical expenses.
In the sports club business, the number of enrolled members as of September 30, 2023, was 390,918 (including 45,620 online
members) (up 8.3% year-on-year), due to new fitness members and steady growth in enrolled members thanks to efforts for acquiring
new members in response to demand for strength training, saunas and swimming pools in heat waves. In addition, in order to copewith various cost increases and to increase added value through continuous investment in human resources and facilities, we haverevised fitness membership fees sequentially since July. In terms of costs, the business commencement expenses for four integrated
sports clubs scheduled to open this fiscal year, 248 million yen, were recorded in the first half of the current consolidated fiscal year.
In the nursing care and nursing/medical care peripheral business, sales increased 13.1% year-on-year due to steady growth in“Genki Gym,” a rehabilitation-focused day service, and other services. In our nursing and rehabilitation efforts, we aim to improve
the quality of life of users through providing and collaborating in multiple services including rehabilitation-focused day services,
home nursing stations, in-home care support, and child development support/after-school day services. In August, we opened a new
franchise facility, “Renaissance Genki Gym Musashi Seki” (Nerima-ku, Tokyo). In addition, we have promoted exercise support forpeople affected by cancer, and have been working on training and certification programs for “Osaka International Cancer InstituteCertified Cancer Specialist Exercise Instructor (hereinafter referred to as “Cancer Specialist Exercise Instructor”).” Currently, there
are more than 150 Cancer Specialist Exercise Instructors nationwide, and they are active in sports clubs and personal training gyms
in various regions. We have started to create an environment where people affected by cancer can do exercise with peace of mind by
sequentially assigning them to our sports clubs and Genki Gym, a rehabilitation-focused day service.
In the health promotion business targeting corporations and health insurance associations, we promoted support for healthmanagement initiatives, and we were entrusted with more original programs utilizing our know-how in exercise and health promotion,such as the program to prevent falls and thus prevent industrial accidents at companies, and these programs are increasing year by
year. In our online lesson service “RENAISSANCE Online Livestream (hereinafter referred to as “ROL”),” we have accelerated
support for health promotion through corporations, such as increasing the use by members of Sumitomo Life Insurance Company’s
Vitality, Daido Life Insurance Company’s activities to promote and spread health management among small and medium-sizedenterprises, and providing ROL to U-NEXT, a video streaming service operated by U-NEXT Co., Ltd.
In addition, in the development and production of original health content to address health issues faced by various companies andcustomers, Square Enix Co., Ltd. consulted us and we cooperated with it for the production of “Eorzean Aetherobics,” an original
exercise video as part of A Realm Reborn’s 10th Anniversary celebrations for the online RPG “Final Fantasy XIV (hereinafterreferred to as “FF14”).” The video was released on FF14’s official YouTube channel in late July and received good reviews.
In the health promotion business for local communities and municipalities, we are working with municipalities to promote healthfor local residents and local businesses. In July, we concluded a memorandum of understanding with the City of Obu, Aichi
Prefecture, and Toyota Systems Corporation on “Obu City Working Generation Sleep Improvement Demonstration Project”. In
September, we signed “Comprehensive collaboration agreement regarding health promotion, etc.” with the city of Zama, Kanagawa
Prefecture. In addition, in order to resolve issues surrounding swimming lessons at schools, we worked to support swimming lessons- 2 -at schools near our sports clubs and in areas where we dispatch regional revitalization entrepreneurs. During the first half of thecurrent consolidated fiscal year, we held swimming lessons in 25 municipalities and 50 schools, approximately 1.5 times more thanin the previous fiscal year.
At our sports clubs in Vietnam, we have sequentially revised their membership fees since August in response to price hikes inVietnam in order to optimize the unit price per member. At our swimming schools held at stores in Hanoi City, we are expanding
swimming lessons for kindergartens and elementary schools.
BEACH TOWN Corporation, a consolidated subsidiary, has been involved in planning and proposing projects for the creation ofprosperity in the region through the public-private partnership (PPP) projects for public facilities, the park private financing initiative(Park-PFI), and the partnership with the private sector. In the first half of the current consolidated fiscal year, we produced amembers-only outdoor fitness facility in Seiseki-Sakuragaoka as a business partner of Keio Corporation. This facility opened in
October as “RIVER PARK Seiseki-Sakuragaoka”.
Since April, three employees from the Company have participated in the management of Tokyu Sports Oasis Inc. (hereinafterreferred to as “Tokyu Sports Oasis”), which is an equity-method affiliate, and have worked to build a new management system andimprove added-value of services. During the first half of the current consolidated fiscal year, business performance has been getting
better due to improved profitability in the sports club business and steady performance in the home fitness business, mainly in goods
sales.
In our efforts with Advantage Advisors, Inc., with which we have entered into a capital business alliance, we have pursued several
projects, including strengthening store development, streamlining company-wide operations, and restructuring our business portfolio.
We will continue to mutually utilize Advantage Advisors’ knowledge and our know-how to steadily implement various measures inorder to enhance our corporate value over the medium to long term.
The Company has positioned the expansion of the number of sports clubs through aggressive M&A and business succession as its
opening strategy. As announced in the “Notice Regarding Additional Acquisition of Shares in Tokyu Sports Oasis Inc., an Equity
Method Affiliate” released on August 10, 2023, the Company decided to acquire all shares held by Tokyu Land Corporation in Tokyu
Sports Oasis on March 31, 2024 (plan). This will make the Group the largest company in the fitness industry in terms of net sales. In
addition, “Sports Club & Spa Renaissance Imazato 24”, which was newly opened in Higashinari-ku, Osaka-shi, in July and thecontents of “Notice Regarding Acquisition of Business and Fixed Assets (Beneficial Interests in Trust) of KSC wellness Fitness Club
Kanamachi and Kanamachi Swimming Club” released on October 2, 2023, will be part of our initiatives for business and facility
succession. As a leading company in the fitness industry, we aim to improve the value of integrated sports clubs and create purposesin life for each and every customer.
During the first half of the consolidated fiscal year under review, we opened new facilities and closed facilities listed in the tablebelow, and the number of our group’s facilities as of the end of September 2023, including the facilities of BEACH TOWN
Corporation, totaled 229: 169 sports clubs (105 directly managed, 62 entrusted, and two Renaissance Vietnam facilities), two studiotype facilities, 43 nursing and rehabilitation facilities (32 directly managed and 11 franchise), and 15 outdoor fitness facilities (fourdirectly managed and 11 entrusted).

- 3 -Opening Date

Facility Name

Facility Type

April 2023

Takeo Civic Baseball Stadium (and 26 other facilities) (Takeo-shi, Saga)

Designated management

April 2023

Five Ozu-machi athletic park facilities (and eight others) (Ozu-machi,
Kikuchi-gun, Kumamoto)

Designated management

April 2023

BEACHTOWN OND PARK (Takeo-shi, Saga)

May 2023

Outdoor Fitness Wakayama (Wakayama-shi, Wakayama)

May 2023

Outdoor Fitness Edogawa (Edogawa-ku, Tokyo)

July 2023

Sports Club & Spa Renaissance Imazato 24 (Osaka-shi, Osaka)

Sports club

July 2023

Sports Club Renaissance Sendai Oroshimachi 24 (Sendai-shi, Miyagi)

Sports club

August 2023

Renaissance Genki Gym Musashi-Seki (Nerima-ku, Tokyo)

Time of outlet closure /termination ofmanagement contract

Facility Name

End of April 2023

Community Park Okegawa (Okegawa-shi, Saitama)

End of June 2023

Sports Club Renaissance Sagami-Ono (Sagamihara-shi, Kanagawa)End of July 2023

Outdoor Fitness Wakayama (Wakayama-shi, Wakayama)

Outdoor fitness(entrusted)
Outdoor fitness(entrusted)
Outdoor fitness(entrusted)

Nursing rehabilitation (FC)
Facility Type
Outdoor fitness(directly managed)
Sports club
Outdoor fitness(entrusted)

The Company also plans to open new facilities listed in the table below in the third quarter of the consolidated fiscal year underreview and thereafter.
Opening Date

Facility Name

Facility Type

October 2023

Sports Club Renaissance Kumamoto Hikari no Mori 24 (Kikuyo-machi,
Kikuchi-gun, Kumamoto)Sports club

October 2023

Sports Club Renaissance Aeon Mall Zama 24 (Zama-shi, Kanagawa)Sports club

October 2023

RIVER PARK Seiseki-Sakuragaoka (Tama-shi, Tokyo)

November 2023

Renaissance Rehabilitation Station Fujimidai (Nerima-ku, Tokyo)

Outdoor fitness(entrusted)
Nursing rehabilitation

Results by segment are not listed since the sports club operation business is the Group’s only reporting segment.
(2) Description of Financial Positioni)
Assets, liabilities and net assets
Total assets at the end of the second quarter of the current consolidated fiscal year rose 655 million yen from the end of
the previous consolidated fiscal year to 42,927 million yen. This was mainly due to a decrease of 617 million yen in total
current assets resulting from a drop in cash and deposits and taxes receivable (current assets, other), and an increase of
1,277 million yen in total fixed assets, mainly due to a boost of 704 million yen in property, plant and equipment, mainly
resulting from an increase in leased assets.
Total liabilities at the end of the second quarter of the current consolidated fiscal year grew 658 million yen from the endof the previous consolidated fiscal year to 31,939 million yen. This was mainly due to a decrease of 141 million yen in total
current liabilities, resulting from smaller short-term borrowings, while noncurrent obligations grew 800 million yen due toan increase in lease obligations.
Total net assets at the end of the second quarter of the current consolidated fiscal year were down 3 million yen from theend of the previous consolidated fiscal year to 10,987 million yen. This was mainly due to an increase of 71 million yen inretained earnings mainly due to the posting of net income attributable to owners of parent company of 150 million yen andthe payment of dividends of 78 million yen, and a decrease of 80 million yen in foreign currency translation adjustments,
resulting in a decrease of 75 million yen in total accumulated other comprehensive income.

- 4 -

ii)

Cash flows
For the first half of the current consolidated fiscal year, the quarter-end balance of cash and cash equivalents (hereinafterreferred to as “cash”) was 5,334 million yen.
The status of cash flows and their factors for the first half of the current consolidated fiscal year are as follows.

a. Cash flows from operating activities
First half of the current consolidated fiscal year: 1,986 million yen (-81 million yen in the same period of the previous
fiscal year)
Cash obtained from operating activities was 1,986 million yen. This was mainly due to depreciation of 1,139 million yen(up 9.2% year-on-year), a decrease of 337 million yen in accrued consumption taxes, and an increase of 235 million yen in
long-term accounts payable - other (down 37.3% year-on-year).
b. Cash flows from investing activities
First half of the current consolidated fiscal year: -1,772 million yen (-1,672 million yen in the same period of theprevious fiscal year)
Cash used for investing activities was 1,772 million yen. This was mainly due to purchase of property, plant andequipment of 1,211 million yen (down 28.9% year-on-year) and leasehold and guarantee deposits of 492 million yen (up103.8%).
c. Cash flows from financing activities
First half of the current consolidated fiscal year: -331 million yen (1,150 million yen in the same period of the previous
fiscal year)
Cash used for financing activities was 331 million yen. This was mainly due to repayments of long-term borrowings of
1,131 million yen (up 7.6% year-on-year), net decrease in short-term borrowings of 600 million yen, repayments of leaseobligations of 352 million yen (up 11.4% year-on-year), proceeds from long-term borrowings of 1,000 million yen (down
16.7% year-on-year) and proceeds from sale and leaseback transactions of 831 million yen (up 50.8% year-on-year).
(3)

Description of Consolidated Earnings Forecasts and Other Forward-Looking Information
The consolidated earnings forecast for the fiscal year ending March 31, 2024, has been revised from that announced on
August 10, 2023, for the full consolidated fiscal year, taking the status until the first half of the current consolidated fiscal
year and the outlook into consideration. For details, please refer to the “Notice of Difference between Consolidated
Earnings Forecast and Actual Earnings for the First Half of Fiscal Year Ending March 31, 2024, and Revision of Full-Year
Consolidated Earnings Forecast” released today.

- 5 -

2.

(1)

Consolidated Quarterly Financial Statements and Primary Notes
Consolidated quarterly balance sheet(Thousands of yen)

As of March 31, 2023

As of September 30, 2023

AssetsCurrent assets
Cash and deposits

5,520,381

5,327,567

Accounts receivable – trade

1,245,183

1,134,605

234,274

289,098

1,791,069

1,422,522(6,881)(7,327)

8,784,027

8,166,467

Commodity
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net

5,586,215

6,054,067

Leased assets, net

10,969,552

11,602,768

Other, net

2,990,709

2,593,710

Total property, plant and equipment

19,546,478

20,250,546

461,076

569,721

Investment securities

1,645,137

1,696,289

Leasehold and guarantee deposits

8,814,555

9,166,097

Other2,994,437

3,056,175

Total investments and other assets

13,454,129

13,918,562

33,461,683

34,738,829

27,01822,542

42,272,729

42,927,839

Intangible fixed assets
Investments and other assets

Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities
Accounts payable – trade54,47952,984

Short-term borrowings

3,000,000

2,400,000

Current portion of long-term borrowings

2,203,084

2,243,084

Income taxes payable

197,429

196,345

Provision for bonuses

684,062

739,945

Asset retirement obligations

13,453―

Other

4,189,421

4,567,638

Total current liabilities

10,341,931

10,199,998

1,499,988

1,499,988

Non-current liabilities
Convertible-bond-type bonds with shareacquisition rights
Long-term borrowings

3,751,721

3,580,179

Lease obligations

11,400,747

12,116,344

Retirement benefit liability

851,520

870,474

Asset retirement obligations

1,357,079

1,423,455

Other

2,078,499

2,249,420

Total non-current liabilities

20,939,556

21,739,862

31,281,487

31,939,860

Total liabilities- 6 -(Thousands of yen)
As of March 31, 2023

As of September 30, 2023

Net assets
Shareholders’ equity
Share capital

3,210,356

3,210,356

Capital surplus

5,813,491

5,813,491

Retained earnings

4,644,051

4,716,045

Treasury shares(2,514,753)(2,514,753)

Total shareholders’ equity

11,153,145

11,225,138

Valuation difference on available-for-salesecurities

4,846

6,318

Foreign currency translation adjustment(145,643)(226,343)

Remeasurements of defined benefit plans(32,779)(28,807)

Total accumulated other comprehensive income(173,576)(248,832)

11,673

11,673

10,991,242

10,987,979

42,272,729

42,927,839

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

- 7 -

(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated quarterly statement of income
Six months ended September 30, 2023
(Thousands of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Net sales

19,889,005

21,155,994

Cost of sales

18,693,893

19,719,245

Gross profit

1,195,112

1,436,749

Selling, general and administrative expenses

1,098,438

1,154,875

96,674

281,874

4,462

4,089

135,152

87,773―49,031

Other

15,63875,073

Total non-operating income

155,253

215,967Interest expenses

205,569

265,712

Other

21,57318,016

Total non-operating expenses

227,143

283,728

24,785

214,112Gain on sale of non-current assets

13―

Total extraordinary income

13―

Loss on retirement of non-current assets

1,984

4,431

Loss on store closings

3,000

―

―

1,950

Total extraordinary losses

4,984

6,382

Net income before income taxes

19,814

207,730

Income taxes – current

44,16845,026

Income taxes – deferred(27,359)

11,869Total income taxes

16,80956,896

Profit3,005

150,833

Net loss attributable to non-controlling interests(3,306)―

6,311

150,833

Operating income
Non-operating income
Interest income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodNon-operating expenses

Ordinary income
Extraordinary income

Extraordinary losses

Other

Net income attributable to owners of parent company- 8 -Consolidated quarterly statement of comprehensive income
Six months ended September 30, 2023
(Thousands of yen)Six months ended
September 30, 2022
ProfitSix months ended
September 30, 2023
3,005

150,833

(834)

1,471

(110,800)(80,699)

3,805

3,971

(107,829)(75,256)(104,824)

75,577(101,518)

75,577(3,306)―Comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent company
Comprehensive income attributable to non-controllinginterests

- 9 -

(3)

Consolidated quarterly statement of cash flows(Thousands of yen)Six months ended
September 30, 2022

Six months ended
September 30, 2023

Cash flows from operating activities
Net income before income taxes

19,814

207,730

1,043,724

1,139,306

Increase (decrease) in retirement benefit liability

22,56024,676

Increase (decrease) in long-term accounts payable other374,927

235,008

Increase (decrease) in provision for bonuses

187,050

41,957

Depreciation

Gain on sale of non-current assets

(13)

―

Loss on retirement of non-current assets

1,984

4,431

Interest and dividend income(4,595)(4,173)

Interest expenses

205,569

265,712

6,489

110,577

Decrease (increase) in trade receivables
Decrease (increase) in inventories(1,577)(41,436)

Decrease (increase) in prepaid expenses(122,486)(114,244)

Increase (decrease) in trade payables(13,068)(1,495)

Increase (decrease) in accounts payable - other(40,969)(186,625)

Increase (decrease) in accrued expenses(7,227)

93,619

Increase (decrease) in advances received

30,065(1,838)Decrease (increase) in consumption taxes refund
receivable―

337,793

Increase (decrease) in accrued consumption taxes(1,119,101)

179,040Other(398,658)(161,877)

Subtotal

184,487

2,128,164

Interest and dividends received

178

134

Interest paid

(206,625)(266,565)

Income taxes refund (paid)(59,415)

124,838

Cash flows from operating activities(81,374)

1,986,571(1,703,294)(1,211,296)

13―

Purchase of intangible assets(41,783)(224,869)

Proceeds from collection of long-term loans
receivable

40,13731,737

Payments of leasehold and guarantee deposits(241,610)(492,342)

Proceeds from refund of leasehold and guarantee
deposits

285,779

143,234

Other(11,594)(19,387)(1,672,351)(1,772,922)

850,000(600,000)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

1,200,000

1,000,000

Repayments of long-term borrowings(1,051,542)(1,131,542)

Repayments of lease liabilities(316,291)(352,428)

Dividends paid

(76,267)(79,080)

Proceeds from sale and leaseback transactions

551,489

831,732

Other
Cash flows from financing activities- 10 -(6,682)―

1,150,706(331,319)(Thousands of yen)Six months ended
September 30, 2022
Effect of exchange rate change on cash and cash
equivalents(110,800)

Six months ended
September 30, 2023
(80,699)

Net increase (decrease) in cash and cash equivalents(713,819)(198,370)

Cash and cash equivalents at beginning of period

4,855,796

5,532,596

Cash and cash equivalents at end of period

4,141,976

5,334,226- 11 -

(4) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.

- 12 -