This document has been translated from a part of 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.

SENKO Group Holdings Co., Ltd.

Summary of Financial Statements for the Fiscal Year Ended March 31, 2023
[Japan GAAP]
Name of Listed Company:
Code Number:
Representative:
Inquiries:

SENKO Group Holdings Co., Ltd.
Stock Listed on: Tokyo Stock Exchange
9069
URL https://www.senkogrouphd.co.jp/en/
Title: President and Representative Director
Name: Yasuhisa Fukuda
Title: Executive Officer, Responsible for PR & IR
Name: Satoru Kokubo

Scheduled Date of Annual Meeting of Shareholders:
Scheduled Date of Issue of Financial Report:
Supplemental Information Materials:
Information Meeting for Financial Results:

June 28, 2023
June 28, 2023

May 12, 2023

Tel. (03) 6862-8842

Scheduled Date of Dividend Paid: June 29, 2023

Yes
Yes (for analysts)(Amounts less than ¥1 million have been rounded down)

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results
Operating revenue
Million yen
696,288623,139

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022
(Note) Comprehensive income:

%
11.7
8.9

Fiscal year ended March 31, 2023: ¥20,036 million (13.9%)
Profitper share
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022
(Reference) Equity in earnings (losses) of affiliates:(Percentage figures represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
25,535
3.1
26,151
0.2
15,341
0.7
24,771
15.1
26,103
17.4
15,233
6.9
Fiscal year ended March 31, 2022: ¥17,596 million (–1.4%)

Diluted profit
per shareYen
102.90104.09Fiscal year ended March 31, 2023: ¥370 million

Return on equity

Yen
91.11
91.99

%
10.0
10.8

Ratio of ordinary
profit to total
assets
%4.9
5.7

Ratio of operating
profit to operating
revenue%
3.7
4.0

Fiscal year ended March 31, 2022: ¥402 million(2) Consolidated Financial Position
Total assets
Million yen
581,850
480,818

As of March 31, 2023
As of March 31, 2022
(Reference) Equity:
As of March 31, 2023: ¥160,510 million

Net assets
Million yen
179,103
160,854

Equity ratio

%
27.6
30.5

Net assets per share
Yen
1,075.69
985.67

As of March 31, 2022: ¥146,817 million(Note) During the second quarter ended September 30, 2022, the Company finalized the provisional accounting treatment for businesscombinations. As a result, figures for the fiscal year ended Mach 31, 2022 reflect the finalization of the provisional accounting treatment.
(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
47,69431,885

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Cash flows fromfinancing activities

Million yen(52,319)(46,141)

Million yen
17,7305,773

Cash and cash
equivalents at end of
periodMillion yen
56,14742,193

2. Dividends

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
(Forecast)

June
30
Yen
–
–
–

Annual dividend
September December
30
31
Yen
Yen
17.00
–
17.00
–
17.00

–

March
31
Yen
17.00
17.00

Yen
34.00
34.00

19.00

36.00

Total

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
5,020
32.7
3.6
5,184
33.0
3.3
32.2

3. Forecast of Consolidated Operating Results for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)(Percentage figures represent year-on-year changes)

First half ending September 30, 2023
Fiscal year ending March 31, 2024

Profit attributable toowners of parent% Million yen
%
(2.8)
7,600
(4.8)
10.9
16,7008.9

Operating revenue

Operating profit

Ordinary profit

Million yen
385,000
790,000

Million yen
13,20029,000Million yen
13,00029,000

%
15.0
13.5

%
1.2
13.6

Profitper shareYen
50.93
111.92Notes(1) Changes in significant subsidiaries during the fiscal year (Changes in specified subsidiaries associated with change in scope of consolidation):
Yes
Newly included: 1 company(Company name) CHUO KAGAKU CO., LTD.

(2) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None(c) Changes in accounting estimates: None(d) Retrospective restatement: None
(3) Shares outstanding (Common shares)(a) Shares outstanding (including treasury shares)
As of March 31, 2023:

157,070,496 shares

As of March 31, 2022:

157,070,496 shares

7,853,758 shares

As of March 31, 2022:

8,117,957 shares(b) Treasury shares
As of March 31, 2023:(c) Average number of sharesFiscal year ended March 31, 2023:

149,091,281 sharesFiscal year ended March 31, 2022:

146,347,358 shares(Note) Starting with the third quarter of the fiscal year ended March 31, 2018, the number of treasury shares at term-end includes Senko shares
owned by the trust accounts of Performance-linked Stock Compensation Plan for Employees (as of March 31, 2023: 334,566 shares;
as of March 31, 2022: 338,276 shares) and Performance-linked Stock Compensation Plan for Directors (as of March 31, 2023: 316,723
shares; as of March 31, 2022: 338,607 shares). In addition, starting with the fourth quarter of the fiscal year ended March 31, 2023, thenumber of treasury shares at term-end includes Senko shares owned by the employee shareholding association support trust ESOP
(as of March 31, 2023: 5,255,100 shares).
[Reference] Overview of Non-Consolidated Operating Results
Non-Consolidated Operating Results for the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Operating revenue
Million yen%
15,65618.4
13,227
12.3
Profitper share

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Operating profit
Million yen
%
7,127
17.4
6,072
7.3

Yen
22.28
40.65

Diluted profit
per share(Percentage figures represent year-on-year changes)
Ordinary profit
ProfitMillion yen%
Million yen
%
7,333
7.2
3,323
(44.1)
6,837
21.9
5,948
251.2

Yen
19.64
35.82

(2) Non-Consolidated Financial Position
As of March 31, 2023
As of March 31, 2022
(Reference) Equity:
As of March 31, 2023: ¥70,692 million

Total assets
Million yen
320,672
277,316

Net assets
Million yen
71,05872,625Equity ratio

%
22.0
26.0

Net assets per shareYen
473.76484.64As of March 31, 2022: ¥72,236 million

This financial report is exempt from audit conducted by certified public accountants or an audit corporation.
Cautionary statement regarding forecasts of operating results and special notes
 Forward-looking statements in these materials are based on information available to management at the time this report was prepared andassumptions that management believes are reasonable. Actual results may differ significantly from these statements for a number of reasons.
For information about the assumptions used for forecasts and precautions concerning the use of forecasts, please see “Forecasts” on page 3.
 The supplementary material on financial results will be available on the Company’s website.

Index to accompanying materials

1. Overview of Operating Results and Others .......................................................................................................................................................... 2(1) Overview of operating results and others .................................................................................................................................................... 2(2) Financial condition ......................................................................................................................................................................................... 4(3) Fundamental policy for distribution of earnings and dividends for the current and the next fiscal years ................................................. 5(4) Business risks................................................................................................................................................................................................ 5
2. Basic Concept Regarding the Selection of Accounting Standards ...................................................................................................................... 6
3. Consolidated Financial Statements ....................................................................................................................................................................... 7(1) Consolidated balance sheets ....................................................................................................................................................................... 7(2) Consolidated statements of income and consolidated statements of comprehensive income ................................................................ 9
Consolidated statements of income ............................................................................................................................................................ 9
Consolidated statements of comprehensive income ............................................................................................................................... 11(3) Consolidated statements of changes in equity ..........................................................................................................................................12(4) Consolidated statements of cash flows......................................................................................................................................................141

1.

Overview of Operating Results and Others(1) Overview of Operating Results and Others(a) Overview of results of operations in the fiscal year ended March 31, 2023

In the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023), the economic environment continued to undergo gradual
recovery as socioeconomic activities normalized following the COVID-19 pandemic. At the same time, a severe businessenvironment continued due to factors including soaring energy and food prices worldwide and sharp fluctuations in exchange rates
against a backdrop of monetary tightening in Europe and the United States.
Amid this environment, the Senko Group strived for growth in business performance during the first year of its five-year mediumterm business plan.
The following provides an outline of our main activities in the fiscal year ended March 31, 2023.

In Logistics, the Company launched Saitama PD Center (Iwatsuki-ku, Saitama-shi) and Sendai North PD Center (Rifu-cho, Miyagi)
in April, Kasai No. 2 PD Center (Edogawa-ku, Tokyo) in May, Sapporo Center of Across Transport (Kitahiroshima-shi, Hokkaido) in
July, Ayase Logistics Center (Ayase-shi. Kanagawa) in August, and North Kobe PD Center (Nishi-ku, Kobe-shi) and Keiyo PD
Center (Ichihara-shi, Chiba) in December.
In February, OHNAMI CORPORATION, which possesses an integrated sea and land transport system for large and heavy cargo,joined the Group.
In Trading & Commerce, in August the Company established ZERO BRANDS Inc., a company engaging in the reprocessing,resale, and recycling of products, to support efforts aimed at achieving zero disposal of apparel inventory.
In Life Support, COSPA Wellness Co., Ltd., which is engaged in the fitness business, joined the Group in July. ARS Co., Ltd., which
offers on-site emergency response to troubles involving electricity, plumbing, locks, etc. joined the Group in January.
In Business Support, Kyoudou Project Co., Ltd., which specializes in dispatch of foreign workers, joined the Group in April, andNissei Security Services, Co., Ltd., which provides transport and heavy machinery road guidance, stationed security services atuniversities, railway security, and other services joined the Group in February.
CHUO KAGAKU CO., LTD., a manufacturer of food packaging and containers listed on the Tokyo Stock Exchange, was added to
the Group in December through a public tender offer.
In initiatives to reduce environment impact, SENKO Co., Ltd., Runtec Corporation, and Saitamaminami Senko Logi Co., Ltd.
received a special award from Japan Association for Logistics and Transport at the 23rd Logistics Environment Award in June, and
SENKO Co., Ltd. and Runtec Corporation received the 2022 Award for Excellent Business Entities Working on Modal Shift in
December. Moreover, Runtec Corporation received the 2022 Minister’s Commendation for Excellent Transportation-related
Environmental Conservation from the Ministry of Land, Infrastructure, Transport and Tourism in December, and SENKO Co., Ltd.
received the FY2022 Excellent Logistics Partnership Commendation Program Categorical Award in the Logistics Structural Reform
Commendations category.
The Group will continue to support and contribute to developing a sustainable society that supports people in their daily lives.
Full-year performance for the fiscal year was as follows.
(Unit: Millions of Yen)
Fiscal year ended
March 31, 2022
623,139

Fiscal year ended
March 31, 2023
696,288

Operating profit

24,771

Ordinary profit
Profit attributable to owners ofparentOperating revenue

Change%73,148

11.7%

25,535764

3.1%

26,103

26,15147

0.2%

15,233

15,341107

0.7%

Despite facing rising electricity tariffs, fuel prices, and purchase prices, along with dwindling demand for COVID-19-related products,
owing to group-wide efforts to expand sales and revise tariffs and prices, along with the effect of promoting M&A, the Group
achieved year-on-year increases in operating revenue, operating profit, ordinary profit and profit attributable to owners of parent.
Full-year operating revenue by segment was as follows.

Note that effective from the first quarter ended June 30, 2022, a newly changed classification and aggregation method forreportable segments has been applied, and the data used for comparison and analysis of the fiscal year ended March 31, 2023 isbased on the newly changed classification.
With the addition of CHUO KAGAKU CO., LTD. into the scope of consolidation, we established the Manufacturing segment in the
fourth quarter ended March 31, 2023.
2

Logistics(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2022
440,565

Fiscal year ended
March 31, 2023
475,833

Segment income

23,27523,748Change%35,267

8.0%

472

2.0%

Despite rising electricity tariffs and fuel prices as well as a sharp decline in cargo movements in the second half of the fiscal year,
we strived to expand sales and revise pricing while reaping the contribution of revenue from M&A. As a result, operating revenue
increased ¥35,267 million year on year to ¥475,833 million, and segment income rose ¥472 million year on year to ¥23,748 million.
Trading & Commerce(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2022
146,123

Fiscal year ended
March 31, 2023
159,821

Segment income

2,447

2,421

Change%13,6979.4%(26)(1.1%)In addition to the contribution from revenue from household paper wholesale distributor Cartas Co., Ltd., which was made a
consolidated subsidiary in the previous fiscal year, we worked on revising prices and expanding sales, as well as improving cost
efficiency. However, as a result of decreased demand for packaging used for takeaways and deliveries, and rising purchase prices,
operating revenue increased by ¥13,697 million year on year to ¥159,821 million and segment income fell ¥26 million year on yearto ¥2,421 million.
Life Support(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Fiscal year ended
March 31, 2022
28,812

Fiscal year ended
March 31, 2023
38,985(708)

186

Change%10,172

35.3%

894

–

As people’s everyday lives have been normalizing, we saw a recovery in the number of users and the number of customers visiting
stores, new stores were opened, and M&A also contributed to revenue. As a result, operating revenue increased ¥10,172 million
year on year to ¥38,985 million, and segment income rose ¥894 million year on year to ¥186 million.
Business Support(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2022
7,626

Fiscal year ended
March 31, 2023
10,733

Segment income

1,099

1,252

Change

%
3,107

40.7%

152

13.9%

We strived to expand sales and improve cost efficiency while reaping the contribution of revenue from M&A. As a result, operating
revenue increased ¥3,107 million year on year to ¥10,733 million, and segment income rose ¥152 million year on year to ¥1,252
million.
Manufacturing(Unit: Millions of Yen)
Fiscal year ended
March 31, 2022
Operating revenue–

Fiscal year ended
March 31, 2023
10,604

Segment loss

–

(180)

Change%10,604

–

(180)

–

Results for CHUO KAGAKU CO., LTD., which was made a consolidated subsidiary during the fiscal year, were operating revenueof ¥10,604 million and operating loss of ¥180 million.
(b) Forecasts

Despite concerns over the risk of a downturn in overseas economies, the economic environment is expected to show slow growthamid recovery from COVID-19 pandemic and improvement in the employment and income environments.
Amid this environment, the Group will continue its efforts to improve performance and achieve its five-year medium-term businessplan.
For the next fiscal year, the Group forecasts consolidated operating revenue of ¥790,000 million, consolidated operating profit of3¥29,000 million, consolidated ordinary profit of ¥29,000 million, and profit attributable to owners of parent of ¥16,700 million.
(2) Financial condition(a) Assets, liabilities and net assets
Total assets

Total assets as of March 31, 2023 were ¥581,850 million, ¥101,032 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥201,773 million, up ¥30,739 million from the end of the previous fiscal year. This was mainly due toincreases of ¥13,490 million in cash and deposits, ¥5,303 million in trade notes and accounts receivable, and contract assets, ¥6,013
million in merchandise and finished goods, ¥2,290 million in raw materials and supplies, and ¥1,920 in other current assets.
Non-current assets totaled ¥380,077 million, up ¥70,293 million from the end of the previous fiscal year. This was primarily due toincreases of ¥58,973 million in property, plant and equipment, ¥1,226 million in intangible assets, and ¥10,093 million in investments
and other assets.
Liabilities

Liabilities as of March 31, 2023 increased ¥82,783 million from the end of the previous fiscal year to ¥402,747 million.
Current liabilities totaled ¥165,357 million, up ¥27,710 million from the end of the previous fiscal year. This was mainly due toincreases of ¥5,383 million in trade notes and accounts payable, ¥2,015 million in electronically recorded obligations - operating,¥4,208 million in short-term borrowings, ¥2,260 million in lease liabilities, and ¥13,100 million in other current liabilities.
Non-current liabilities totaled ¥237,389 million, up ¥55,072 million from the end of the previous fiscal year. This was mainly
attributable to increases of ¥37,546 million in long-term borrowings, ¥9,052 million in long-term lease liabilities, ¥1,428 million inretirement benefit liability, ¥1,093 million in asset retirement obligations, ¥2,853 million in deferred tax liabilities, and ¥2,871 million inother non-current liabilities.
Net assets

Net assets as of March 31, 2023 were ¥179,103 million, ¥18,248 million higher than at the end of the previous fiscal year. This wasprimarily due to increases of ¥10,247 million in retained earnings, ¥2,327 million in foreign currency translation adjustment, and¥4,578 million in non-controlling interests. The equity ratio as of March 31, 2023 decreased by 2.9 percentage points to 27.6% fromthe end of the previous fiscal year.
(b) Cash flows

Cash and cash equivalents as of March 31, 2023 increased by ¥13,953 million from the end of the previous fiscal year to ¥56,147
million.
Net cash provided by operating activities amounted to ¥47,694 million. This was mainly due to decrease in funds due to decrease inaccrued liabilities of ¥3,243 million and income taxes paid of ¥9,223 million, despite profit before income taxes of ¥25,736 million,
depreciation of ¥22,429 million, and increased funds due to decrease in trade receivables and contract assets of ¥9,704 million.
Net cash used in investing activities totaled ¥52,319 million. This was mainly due to purchase of property, plant and equipment of¥34,578 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥15,500 million.
Net cash provided by financing activities totaled ¥17,730 million. This was mainly due to proceeds from long-term borrowings of¥48,346 million, despite net decrease in short-term borrowings of ¥5,149 million, repayments of long-term borrowings of ¥13,424
million, repayments of finance lease liabilities of ¥6,603 million, and dividends paid of ¥5,089 million.
(c) Performance indicators associated with cash flows
Fiscal years ended March 31

2019

2020

2021

2022

2023

Equity ratio (%)

35.0

35.1

30.9

30.5

27.6

Market capitalization equity ratio (%)

41.0

35.7

35.6

27.8

24.2

Interest-bearing debt to Cash flow

4.2

3.6

5.2

5.8

4.8

Interest coverage ratio

26.2

28.3

27.7

25.5

28.6

Notes: Equity ratio: Equity / Total assets
Market capitalization equity ratio: Market capitalization / Total assets
Interest-bearing debt to Cash flow ratio: Interest-bearing debt / Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expenses•

All figures are based on the consolidated financial statements.

•

Market capitalization is calculated by multiplying the fiscal year-end stock price and the number of shares issued at the end of•

Operating cash flows are the figure shown in the consolidated statement of cash flows. Interest-bearing debt is the sum of all

the fiscal year (after deducting treasury shares).
liabilities on the consolidated balance sheet on which interest is paid. Interest expenses are the figure shown in the
consolidated statement of cash flows.

4(3) Fundamental policy for distribution of earnings and dividends for the current and the next fiscal years
While securing internal reserves necessary for future business development and management structure reinforcement, the basic policy of
the Company is to return profits to shareholders by implementing stable dividends and dividends that are linked to business results withthe aim of enhancing the return to its shareholders.
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2023 is expected to be ¥17.00 per share.
Combined with the already declared interim dividend of ¥17.00, the total annual dividend is expected to be ¥34.00.

Regarding the dividend forecast for the fiscal year ending March 31, 2024, based on the forecast of operating results, the Company
plans to pay an annual dividend of ¥36.00 per share (interim dividend of ¥17.00, year-end dividend of ¥19.00).
(4) Business risks

From the most recent Securities Report (dated June 28, 2022), which includes a section about business and other risks, there
were no significant changes so disclosure will be omitted.

5

2.

Basic Concept Regarding the Selection of Accounting Standards
To facilitate comparisons of its consolidated financial statements across time periods and with other companies, the Senko Group intends toprepare its consolidated financial statements based on Japanese generally accepted accounting principles (JGAAP) for the time being.
With regard to the adoption of International Financial Reporting Standards (IFRS), the Company intends to respond to this issue appropriately
while giving consideration to various circumstances in Japan and overseas.

6

3.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits

45,09358,583

Trade notes and accounts receivable, and contract
assets

91,893

97,197

Electronically recorded monetary claims - operating

3,543

4,476

Merchandise and finished goods

14,183

20,197Work in process

95

909

Raw materials and supplies

845

3,136

15,411

17,332(34)(59)

171,033

201,773

Buildings and structures

187,259

215,311

Accumulated depreciation(96,162)(103,396)

Buildings and structures, net

91,096111,914

Machinery, equipment and vehicles

101,063

100,872

Accumulated depreciation(73,248)(70,635)

Machinery, equipment and vehicles, net

27,81530,236

Tools, furniture and fixtures

13,52822,004

Accumulated depreciation(10,611)(18,454)

Tools, furniture and fixtures, net

2,917

3,549

Land

90,313

114,478

Leased assets

23,82338,250

Accumulated depreciation(8,890)(13,425)

Leased assets, net

14,932

24,824

Construction in progress

4,562

5,608

231,639

290,612

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Goodwill

12,104

11,727

Other

11,94913,553

Total intangible assets

24,05425,28017,957

20,248Long-term loans receivable

279

541

Retirement benefit asset

7,703

10,207

Guarantee deposits

14,38817,034

Deferred tax assets

5,115

5,571

Other

9,066

11,360Allowance for doubtful accounts

(418)

(780)

Total investments and other assets

54,09164,184

Total non-current assets

309,784

380,077

Business commencement expenses

0–

Total deferred assets

0–

480,818

581,850

Investments and other assets
Investment securities

Deferred assets

Total assets

7

(Unit: Millions of Yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Trade notes and accounts payable

50,67556,058

Electronically recorded obligations - operating

9,076

11,091

24–

Short-term borrowings

36,33540,543

Lease liabilities

4,632

6,892

Income taxes payable

5,052

5,113

Provision for bonuses

6,585

7,544

Provision for bonuses for directors (and other officers)

427

420

Provision for loss on disaster

416

170

Other

24,42037,521

Total current liabilities

137,646

165,357

Bonds payable

40,00040,000Convertible-bond-type bonds with share acquisitionrights

22,08122,054Long-term borrowings

86,746124,292

Lease liabilities

15,97025,022

Provision for retirement benefits for directors (andother officers)

573

608

Provision for special repairs

196

256

Provision for share awards

336

494

Retirement benefit liability

7,050

8,479

Asset retirement obligations

950

2,044

Deferred tax liabilities

5,120

7,973

Other

3,291

6,163

182,317237,389

319,963402,747

28,47928,479Current portion of bonds payableNon-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

31,54531,318Retained earnings

91,737

101,984

Treasury shares(8,159)(7,712)

Total shareholders’ equity

143,602

154,070

1,472

1,668

Deferred gains or losses on hedges

70

(2)

Foreign currency translation adjustment

755

3,082

Remeasurements of defined benefit plans

916

1,690

3,215

6,439

Share acquisition rights

388

366

Non-controlling interests

13,64818,226

Total net assets

160,854

179,103

480,818

581,850

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

Total liabilities and net assets8(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(April 1, 2021 - March 31, 2022)(April 1, 2022 - March 31, 2023)

Operating revenue

623,139696,288

Operating costs

534,352

595,013

Operating gross profit

88,786

101,274

Selling, general and administrative expenses

64,01575,738Operating profit

24,771

25,535Interest income

100

132

Dividend income

286

198

Share of profit of entities accounted for using equity
method402

370

Revenue from subsidies

531

244

Rental income from land and buildings

356

402

Other

1,670

1,925

Total non-operating income

3,349

3,273

1,244

1,668

772

989

2,016

2,658

26,103

26,151–

1,469

Subsidy income

248

279

Gain on sale of non-current assets

111

253

Gain on sale of investment securities

–

40

359

2,043

Impairment losses

31

1,540

Loss on tax purpose reduction entry of non-current
assets253

279

Loss on retirement of non-current assets

182

271

Loss on office withdrawal–

184

Compensation expenses

298

132

Loss on cancellation of leases

202

50

Provision for loss on disaster

416–

Loss on COVID-19 impact

211–

Loss on sale of non-current assets

43–

Loss on disaster

28–

Provision of allowance for doubtful accounts for
subsidiaries and associates

12–

Provision of allowance for doubtful accounts

3

–

1,684

2,458

Non-operating income

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses

Total extraordinary losses

9Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(April 1, 2021 - March 31, 2022)(April 1, 2022 - March 31, 2023)

Profit before income taxes

24,77825,736

Income taxes - current

8,831

8,907

Income taxes - deferred

(230)

507

Total income taxes

8,601

9,415

Profit16,177

16,320943

979

15,233

15,341

Profit attributable to non-controlling interests
Profit attributable to owners of parent

10

(Consolidated statements of comprehensive income)(Unit: Millions of Yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2022

(April 1, 2021 - March 31, 2022)

Profit(April 1, 2022 - March 31, 2023)

16,177

16,320(337)

207

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

47

(81)

Foreign currency translation adjustment

781

2,353

Remeasurements of defined benefit plans, net of tax

927

773

–

463

1,419

3,715

17,596

20,036

16,60918,566987

1,469

Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests11(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Unit: Millions of Yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

26,56429,806

1,915

1,915

Retainedearnings

Treasury shares

Total shareholders’equity(4,638)132,944

81,211

Changes during period
Issuance of new shares

3,830

Dividends of surplus(4,708)(4,708)

Profit attributable to owners ofparent15,233

15,233Purchase of treasury shares
Disposal of treasury shares(3,661)(3,661)

139

100

(39)

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders’ equity

(136)

(136)
–

Total changes during period

1,915

1,739

10,525(3,521)

10,658

Balance at end of period

28,47931,54591,737(8,159)143,602

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

1,759

32

Share
Total
RemeasureForeign
accumulated acquisition
ments ofcurrency
rightsotherdefinedtranslation
comprehenadjustment benefit plans
sive income
57

(10)

1,839

410

Noncontrollinginterests

Total net
assets

10,926

146,120

Changes during period
Issuance of new shares

–

3,830

Dividends of surplus–(4,708)

Profit attributable to owners ofparent–15,233Purchase of treasury shares–(3,661)

Disposal of treasury shares

–

100

–

(136)

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders’ equity

(287)

38

697

927

1,375

(21)

2,721

4,075

Total changes during period

(287)

38

697

927

1,375

(21)

2,721

14,734

Balance at end of period

1,472

70

755

916

3,215

388

13,648160,85412

Fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Unit: Millions of Yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Retainedearnings

Capital surplus

28,47931,545

Treasury shares

91,737

Total
shareholders’equity(8,159)143,602

Changes during period
Issuance of new shares–

Dividends of surplus(5,093)(5,093)

Profit attributable to owners ofparent15,341

15,341

Purchase of treasury shares
Disposal of treasury shares(230)

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders’ equity

(0)

(0)

447

217

3

3
–

Total changes during period
Balance at end of period

–

(227)

10,247447

10,46728,47931,318

101,984(7,712)

154,070

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

1,472

70

Share
Total
RemeasureForeignacquisition
accumulated
ments ofcurrency
rightsotherdefinedtranslation
comprehenadjustment benefit plans
sive income
755

916

3,215

388

Noncontrollinginterests

Total net
assets13,648160,854

Changes during period
Issuance of new shares––

Dividends of surplus–(5,093)

Profit attributable to owners ofparent–15,341

Purchase of treasury shares–(0)

Disposal of treasury shares

–

217

–

3

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

196

(72)

2,327

773

3,224

(22)

4,578

7,781

196

(72)

2,327

773

3,224

(22)

4,578

18,248

1,668

(2)

3,082

1,690

6,439

366

18,226

179,10313

(4) Consolidated statements of cash flows(Unit: Millions of Yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2022

(April 1, 2021 - March 31, 2022)(April 1, 2022 - March 31, 2023)

Profit before income taxes

24,77825,736

Depreciation

19,81722,429Amortization of goodwill

1,071

1,333

2

158

Decrease (increase) in retirement benefit asset(2,232)(2,504)

Increase (decrease) in retirement benefit liability

874

583

Increase (decrease) in provision for bonuses

218

398

Increase (decrease) in provision for share awards

186

158

Increase (decrease) in provision for loss on disaster

416

(246)

Interest and dividend income

(386)

(330)

Cash flows from operating activities

Increase (decrease) in allowance for doubtful accounts

Foreign exchange losses (gains)

(251)

(167)

Interest expenses

1,244

1,668

Loss (gain) on sale of non-current assets

(68)

(253)

Loss on tax purpose reduction entry of non-current assets

253

279

Subsidy income

(248)

(279)

Gain on bargain purchase–(1,469)Loss (gain) on sale of investment securities

–

(40)

Impairment losses

31

1,540

Loss on retirement of non-current assets

182

271

Loss on office withdrawal–

184

Compensation expenses

298

132

Loss on cancellation of leases

202

50

(5,123)

9,704

Decrease (increase) in inventories(592)(1,050)

Increase (decrease) in accrued liabilities

3,654(3,243)

Increase (decrease) in accrued consumption taxes(1,685)878

Decrease (increase) in trade receivables and contract assets

Decrease (increase) in consumption taxes refund receivable

22

(377)

Other

(837)

1,827

Subtotal

41,83057,371

Subsidies received

248

279

Interest and dividends received

377

936

Interest paid

(1,249)(1,669)

Income taxes paid

(9,321)(9,223)

Cash flows from operating activities

31,88547,694

Payments into time deposits(2,071)(2,934)

Proceeds from withdrawal of time deposits

2,028

3,476

Purchase of property, plant and equipment(30,311)(34,578)

Cash flows from investing activities

Proceeds from sale of property, plant and equipment

907

799

Purchase of intangible assets(730)(1,131)(5,668)–Purchase of investment securities(653)(1,666)

Payments of guarantee deposits(1,097)(2,023)

354

1,631

(8,837)(15,500)

(60)

(391)

(46,141)(52,319)

Payments for investments in capital of subsidiaries and associates

Proceeds from refund of guarantee deposits
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Other
Cash flows from investing activities

14

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

(April 1, 2021 - March 31, 2022)(April 1, 2022 - March 31, 2023)

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

4,671(5,149)Proceeds from long-term borrowings

22,563

48,346

Repayments of long-term borrowings(4,035)(13,424)

Repayments of finance lease liabilities(5,359)(6,603)

Proceeds from issuance of bonds

10,000–

Redemption of bonds(13,288)(24)

Purchase of treasury shares(3,630)(0)

Dividends paid

(4,704)(5,089)Dividends paid to non-controlling interests

(148)

(275)

Purchase of shares of subsidiaries not resulting in change in scope of
consolidation

(249)

(29)

Other

(45)

(18)

5,773

17,730304

848

Net increase (decrease) in cash and cash equivalents(8,177)

13,953

Cash and cash equivalents at beginning of period

50,371

42,193

Cash and cash equivalents at end of period

42,19356,147

Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

15