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, 2024
[Japan GAAP]May 13, 2024
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: Shinzo Yoshimura

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

June 26, 2024
June 26, 2024

Tel. (03) 6862-8842

Scheduled Date of Dividend Paid: June 27, 2024

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

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results
Operating revenue
Million yen
778,370
696,288

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023
(Note) Comprehensive income:

%
11.8
11.7

Fiscal year ended March 31, 2024 ¥26,273 million (31.1%)
Profitper share
Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023
(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%
29,90617.1
30,503
16.6
15,944
3.9
25,535
3.1
26,151
0.2
15,341
0.7
Fiscal year ended March 31, 2023: ¥20,036 million (13.9%)

Diluted profit
per shareYen
106.25102.90Fiscal year ended March 31, 2024: ¥377 million

Return on equity

Yen
94.08
91.11

%
9.4
10.0

Ratio of ordinary
profit to total
assets
%4.8
4.9

Ratio of operating
profit to operating
revenue%
3.8
3.7

Fiscal year ended March 31, 2023: ¥370 million(2) Consolidated Financial Position
Total assets
Million yen
685,120581,850

As of March 31, 2024
As of March 31, 2023
(Reference) Equity:
As of March 31, 2024: ¥179,208 million

Net assets
Million yen
204,186
179,103

Equity ratio
%
26.2
27.6

Net assets per share
Yen
1,197.13
1,075.69

As of March 31, 2023: ¥160,510 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
51,21447,694

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

Cash flows fromfinancing activities

Million yen(62,492)(52,319)

Million yen
33,157
17,730Cash and cash
equivalents at end of
periodMillion yen
79,28456,147

2. Dividends

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2024
Fiscal year ending March 31, 2025
(Forecast)

June
30
Yen
–
–
–

Annual dividend
September December
30
31
Yen
Yen
17.00
–
19.00
–
21.00

–

March
31
Yen
17.00
19.00

Yen
34.00
38.00

21.00

42.00

Total

Aggregate
Dividend on
Payout ratio
amountequity ratio(Consolidated)(Consolidated)(Annual)Million yen
%
%
5,184
33.0
3.3
5,926
35.8
3.3
34.9

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

First half ending September 30, 2024
Fiscal year ending March 31, 2025

Operating revenue

Operating profit

Million yen
412,000
850,000

Million yen
15,30034,000

%
8.5
9.2

%
3.6
13.7

(Percentage figures represent year-on-year changes)
Profit attributable toProfitOrdinary profit
owners of parent
per share
Million yen% Million yen%
Yen
15,300
2.3
8,900
0.5
59.45
33,4009.5
18,00012.9
120.24Notes(1) Changes in significant subsidiaries during the fiscal year (Changes in specified subsidiaries associated with change in scope of consolidation):
None(2) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: None(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, 2024:

157,070,496 shares

As of March 31, 2023:

157,070,496 shares

7,372,422 shares

As of March 31, 2023:

7,853,758 shares(b) Treasury shares
As of March 31, 2024:(c) Average number of sharesFiscal year ended March 31, 2024:

150,070,489 sharesFiscal year ended March 31, 2023:

149,091,281 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, 2024: 805,545 shares;
as of March 31, 2023: 334,566 shares) and Performance-linked Stock Compensation Plan for Directors (as of March 31, 2024: 788,972
shares; as of March 31, 2023: 316,723 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, 2024: 4,055,700 shares; 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, 2024 (From April 1, 2023 to March 31, 2024)(1) Non-Consolidated Operating Results

Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

Operating revenue
Million yen%
16,4475.1
15,656
18.4

Operating profit
Million yen%
6,252(12.3)
7,127
17.4

Profitper share
Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2023

(Percentage figures represent year-on-year changes)
Ordinary profit
ProfitMillion yen%
Million yen
%
6,788
(7.4)
6,127
84.4
7,333
7.2
3,323
(44.1)

Diluted profit
per share
Yen
40.83
22.28

Yen
36.09
19.64

Total assets
Million yen
371,591
320,672

Net assets
Million yen
72,56971,058(2) Non-Consolidated Financial Position

As of March 31, 2024
As of March 31, 2023
(Reference) Equity:
As of March 31, 2024: ¥72,217 million

Equity ratio
%
19.4
22.0

Net assets per shareYen
482.42473.76

As of March 31, 2023: ¥70,692 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 ......................................................................................................................................................................................... 3(3) Fundamental policy for distribution of earnings and dividends for the current and the next fiscal years ................................................. 4(4) Business risks................................................................................................................................................................................................ 4
2. Basic Concept Regarding the Selection of Accounting Standards ...................................................................................................................... 5
3. Consolidated Financial Statements ....................................................................................................................................................................... 6(1) Consolidated balance sheets ....................................................................................................................................................................... 6(2) Consolidated statements of (comprehensive) income ................................................................................................................................ 8
Consolidated statements of income ............................................................................................................................................................ 8
Consolidated statements of comprehensive income ................................................................................................................................. 9(3) Consolidated statements of changes in equity ..........................................................................................................................................10(4) Consolidated statements of cash flows......................................................................................................................................................121

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, 2024

In the fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024), although economic activities have been normalizing after
the reclassification of COVID-19 to Class 5, the outlook for the economic environment overall remained unclear with the worsening
situation in the Middle East and the protraction of the Ukraine situation, concerns about the future of the Chinese economy, and anincreasingly frugal mindset due to the rising price of goods.
Amid this environment, the Senko Group strived for growth in business performance during the second year of its five-year
medium-term business plan.
The following provides an outline of our main activities in the fiscal year ended March 31, 2024.

In Logistics, the Company launched Wangan Yatomi PD Center (Yatomi-shi, Aichi) and Hyuga No. 2 PD Center (Hyuga-shi,
Miyazaki) in April, Hanyu PD Center (Kazo-shi, Saitama) and Kanazawa No. 2 PD Center (Hakusan-shi, Ishikawa) in June, Noda
No. 3 PD Center (Noda-shi, Chiba) in September, Joso PD Center (Joso-shi, Ibaraki) in December, and Hyogo Tojo PD Center(Kato-shi, Hyogo) in January.
In July, NAGASAKI UNSOU CO., LTD. was added to the Group to expand the logistics and heavy machinery business andstrengthen the transportation capabilities of its nationwide network, and Simon Transport Pty. Ltd., a local Australian company withstrengths in heavy cargo transport, joined the Group in March.
In Life Support, SERIO HOLDINGS CO., LTD., which was listed on the Tokyo Stock Exchange and operates businesses including achildcare business, after-school care business, and employment support business, was added to the Group in December through apublic tender offer.
In Business Support, Ams Security Co.,Ltd. and its subsidiary, Human Security Co., Ltd., were added to the Group in July tostrengthen the security business, followed in February by the addition of INFOLOG PTE. LTD., an IT company that is developing
logistics software in Singapore.
In initiatives to reduce environmental impact, SENKO Co., Ltd. and TOKYO NOHIN DAIKO Co. LTD. received a special award fromJapan Association for Logistics and Transport at the 24th Logistics Environment Award in June. Moreover, SENKO Co., Ltd.
received the 2023 Minister’s Commendation for Excellent Transportation-related Environmental Conservation from the Ministry ofLand, Infrastructure, Transport and Tourism in December.
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, 2023
696,288

Fiscal year ended
March 31, 2024
778,370

Operating profit

25,535

Ordinary profit
Profit attributable to owners ofparentOperating revenue

Change%82,082

11.8

29,906

4,370

17.1

26,15130,503

4,352

16.6

15,341

15,944603

3.9

Despite facing the impact of declining cargo movements in logistics, along with rising purchase prices and the like, owing to groupwide efforts to expand sales and revise tariffs and prices, along with the effect of promoting M&A, the Group achieved year-on-yearincreases in operating revenue, operating profit, ordinary profit and profit attributable to owners of parent.
Full-year operating revenue by segment was as follows.
Logistics(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2023
475,833

Fiscal year ended
March 31, 2024
495,626

Segment income

23,74826,664

Change%19,793

4.2

2,916

12.3

Notwithstanding the impact of declining cargo movements, a focus on sales expansion and initiatives to address tariff revisions,
together with the effect of promoting M&A, caused operating revenue to increase by ¥19,793 million year on year to ¥495,626
million, and segment income rose by ¥2,916 million year on year to ¥26,664 million.

2

Trading & Commerce(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2023
159,821

Fiscal year ended
March 31, 2024
171,386

Segment income

2,421

2,359

Change%11,564

7.2

(62)

(2.6)

Although we strived to revise prices and expand sales, we faced rising purchase prices and a decline in sales volume. As a result,operating revenue increased by ¥11,564 million year on year to ¥171,386 million, and segment income declined by ¥62 million year
on year to ¥2,359 million.
Life Support(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2023
38,985

Fiscal year ended
March 31, 2024
50,237

Segment income

186

1,178

Change%11,252

28.9

992

533.6

Owing to the contribution of revenue from M&A and initiatives such as price revisions, operating revenue increased by ¥11,252
million year on year to ¥50,237 million, and segment income rose by ¥992 million year on year to ¥1,178 million.
Business Support(Unit: Millions of Yen)

Operating revenue

Fiscal year ended
March 31, 2023
10,733Fiscal year ended
March 31, 2024
13,637

Segment income

1,252

1,932

Change

%
2,903

27.1

680

54.3

We strived to expand sales and achieve recovery in the hotel business among other initiatives. As a result, operating revenue
increased by ¥2,903 million year on year to ¥13,637 million, and segment income rose by ¥680 million year on year to ¥1,932
million.
Manufacturing(Unit: Millions of Yen)

Operating revenue
Segment income (loss)

Fiscal year ended
March 31, 2023
10,604

Fiscal year ended
March 31, 2024
47,101(180)

364

Change%36,497

344.2

545

–

Owing to the contribution of revenue from CHUO KAGAKU CO., LTD., which is a manufacturer of food packaging and containers
and was made a consolidated subsidiary during the previous fiscal year, operating revenue increased by ¥36,497 million year on
year to ¥47,101 million, and segment income rose by ¥545 million year on year to ¥364 million.
(b) Forecasts

Despite concerns over uncertainties such as the risk of a downturn in overseas economies and price trends, the economy isexpected to continue to recover gradually due to factors such as improvement in the income environment and the achievement of
economic growth led by private-sector demand.
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 ¥850,000 million, consolidated operating profit of¥34,000 million, consolidated ordinary profit of ¥33,400 million, and profit attributable to owners of parent of ¥18,000 million.
(2) Financial condition(a) Assets, liabilities and net assets
Total assets

Total assets as of March 31, 2024 were ¥685,120 million, ¥103,270 million higher than at the end of the previous fiscal year.
Current assets amounted to ¥239,866 million, up ¥38,093 million from the end of the previous fiscal year. This was mainly due toincreases of ¥23,053 million in cash and deposits and ¥13,545 million in trade notes and accounts receivable, and contract assets.
Non-current assets totaled ¥445,254 million, up ¥65,176 million from the end of the previous fiscal year. This was primarily due toincreases of ¥40,182 million in property, plant and equipment, ¥13,129 million in intangible assets, and ¥11,863 million in
investments and other assets.

3

Liabilities

Liabilities as of March 31, 2024 increased by ¥78,187 million from the end of the previous fiscal year to ¥480,934 million.
Current liabilities totaled ¥216,183 million, up ¥50,826 million from the end of the previous fiscal year. This was mainly due toincreases of ¥4,420 million in trade notes and accounts payable, ¥22,026 million in current portion of convertible-bond-type bonds
with share acquisition rights, ¥12,905 million in short-term borrowings and ¥4,339 million in other current liabilities.
Non-current liabilities totaled ¥264,750 million, up ¥27,360 million from the end of the previous fiscal year. This was mainly due toincreases of ¥37,423 million in long-term borrowings, ¥8,793 million in long-term lease liabilities and ¥2,703 million in deferred tax
liabilities, despite a decrease of ¥22,054 million in convertible-bond-type bonds with share acquisition rights.
Net assets

Net assets as of March 31, 2024 rose by ¥25,083 million from the end of the previous fiscal year to ¥204,186 million. This wasprimarily due to increases of ¥10,332 million in retained earnings, ¥2,174 million in foreign currency translation adjustment, ¥4,517
million in remeasurements of defined benefit plans and ¥6,400 million in non-controlling interests. The equity ratio as of March 31,
2024 decreased by 1.4 percentage points to 26.2% from the end of the previous fiscal year.
(b) Cash flows

Cash and cash equivalents as of March 31, 2024 increased by ¥23,137 million from the end of the previous fiscal year to ¥79,284
million.
Net cash provided by operating activities amounted to ¥51,214 million. This was mainly due to a decrease in funds due to anincrease in accounts receivable - trade, and contract assets of ¥10,432 million and income taxes paid of ¥9,504 million, despite
profit before income taxes of ¥28,796 million, depreciation of ¥26,440 million, and increased funds due to an increase in accrued
liabilities of ¥5,936 million.
Net cash used in investing activities totaled ¥62,492 million. This was mainly due to purchase of property, plant and equipment of¥48,703 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥12,177 million.
Net cash provided by financing activities totaled ¥33,157 million. This was mainly due to net increase in short-term borrowings of¥13,606 million, and proceeds from long-term borrowings of ¥50,674 million, despite repayments of long-term borrowings of¥14,859 million, repayments of finance lease liabilities of ¥8,875 million, and dividends paid of ¥5,608 million.
(c) Performance indicators associated with cash flows
Fiscal years ended March 31

2020

2021

2022

2023

2024

Equity ratio (%)

35.1

30.9

30.5

27.6

26.2

Market capitalization equity ratio (%)

35.7

35.6

27.8

24.2

25.1

Interest-bearing debt to Cash flow

3.6

5.2

5.8

4.8

5.4

Interest coverage ratio

28.3

27.7

25.5

28.6

22.7

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
the fiscal year (after deducting treasury shares).

•

Operating cash flows are the figure shown in the consolidated statement of cash flows. Interest-bearing debt is the sum of all
liabilities on the consolidated balance sheet on which interest is paid. Interest expenses are the figure shown in the
consolidated statement of cash flows.

(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 addition, under this policy, the Company aims to pay dividends with a payout ratio of
40% by the final fiscal year of the medium-term business plan (April 2022 to March 2027).
In accordance with this policy, the year-end dividend for the fiscal year ended March 31, 2024 is expected to be ¥19.00 per share.
Combined with the already declared interim dividend of ¥19.00, the total annual dividend is expected to be ¥38.00.
Regarding the dividend forecast for the fiscal year ending March 31, 2025, based on the forecast of operating results, the Company plansto pay an annual dividend of ¥42.00 per share (interim dividend of ¥21.00, year-end dividend of ¥21.00).
(4) Business risks
From the most recent Securities Report (dated June 28, 2023), which includes a section about business and other risks, there were no
significant changes so disclosure will be omitted.

4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.

5

3.

Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of Yen)
As of March 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits

58,583

81,637

Trade notes and accounts receivable, and contract
assets97,197110,742

Electronically recorded monetary claims - operating

4,476

5,417

Merchandise and finished goods

20,197

19,231909

780

Raw materials and supplies

3,136

3,060

Other

17,332

19,081(59)(83)

201,773

239,866

Buildings and structures

215,311

237,663

Accumulated depreciation(103,396)(118,716)

Buildings and structures, net

111,914

118,947

Machinery, equipment and vehicles

100,872

109,656

Accumulated depreciation(70,635)(76,694)

Machinery, equipment and vehicles, net

30,23632,961Tools, furniture and fixtures

22,00423,703

Accumulated depreciation(18,454)(19,874)

3,549

3,828

Land

114,478

124,096

Leased assets

38,25056,655

Accumulated depreciation(13,425)(23,218)

Leased assets, net

24,82433,436

Construction in progress

5,608

17,523

290,612

330,795

Goodwill

11,727

24,079Other

13,553

14,330Total intangible assets

25,28038,40920,24822,276Long-term loans receivable

541

669

Retirement benefit asset

10,207

17,907

Guarantee deposits

17,034

18,566

Deferred tax assets

5,571

5,914

Other

11,36011,613

Allowance for doubtful accounts

(780)

(899)

Total investments and other assets

64,18476,048

Total non-current assets

380,077445,254581,850

685,120Work in process

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

Tools, furniture and fixtures, net

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Total assets

6

(Unit: Millions of Yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Trade notes and accounts payable

56,05860,478

Electronically recorded obligations - operating

11,091

11,650–22,026

Short-term borrowings

40,54353,448

Lease liabilities

6,892

9,907

Income taxes payable

5,113

7,733

Provision for bonuses

7,544

8,605

420

423

Current portion of convertible-bond-type bonds withshare acquisition rights

Provision for bonuses for directors (and other officers)

170

48

Other

Provision for loss on disaster

37,521

41,860Total current liabilities

165,357

216,183

Bonds payable

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

22,054–Long-term borrowings

124,292

161,716

Lease liabilities

25,02233,815

Provision for retirement benefits for directors (andother officers)

608

480

Provision for special repairs

256

255

Provision for share awards

494

363

Retirement benefit liability

8,479

8,741

Asset retirement obligations

2,044

2,987

Deferred tax liabilities

7,973

10,677

Other

6,163

5,714

237,389

264,750

402,747

480,934

Share capital

28,47928,479

Capital surplus

31,31831,283Retained earnings

101,984

112,317

Treasury shares(7,712)(7,421)

Total shareholders’ equity

154,070

164,659

1,668

2,995

(2)

88

Foreign currency translation adjustment

3,082

5,256

Remeasurements of defined benefit plans

1,690

6,207

Total accumulated other comprehensive income

6,439

14,548

Share acquisition rights

366

351

Non-controlling interests

18,226

24,627

Total net assets

179,103

204,186

581,850

685,120

Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

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

Total liabilities and net assets

7

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

Fiscal year ended
March 31, 2024

(April 1, 2022 - March 31, 2023)(April 1, 2023 - March 31, 2024)

Operating revenue

696,288778,370

Operating costs

595,013658,975

Operating gross profit

101,274

119,395

Selling, general and administrative expenses

75,73889,488Operating profit

25,53529,906

Interest income

132

246

Dividend income

198

250

Share of profit of entities accounted for using equity
method370

377

Non-operating income

Subsidy income

244–

Rental income from land and buildings

402

486

Foreign exchange gains

167

452

Other

1,757

1,954

Total non-operating income

3,273

3,768

1,668

2,287

989

883

2,658

3,170

26,15130,503

Subsidy income

279

504

Gain on sale of investment securities

40

351

Gain on sale of non-current assets

253

305

–

246

Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Compensation income
Surrender value of insurance policies–

113

Gain on bargain purchase

1,469

–

Total extraordinary income

2,043

1,520

Compensation expenses

132

640

Loss on tax purpose reduction entry of non-current
assets

279

553

–

515

1,540

491

–

340

Extraordinary losses

Loss on valuation of investment securities
Impairment losses
Loss on withdrawal from business

271

174

Loss on sale of non-current assets

Loss on retirement of non-current assets–

174

Loss on sale of shares of subsidiaries and associates–

151

Expenses related to commemoration for entity
establishment–

75

Loss on office withdrawal

184–

Loss on cancellation of leases

50

–

Other

–

110

2,458

3,228

Profit before income taxes

25,736

28,796

Income taxes - current

8,907

11,497

Income taxes - deferred

507

(77)

Total income taxes

9,415

11,420

Profit16,32017,375979

1,431

15,341

15,944

Total extraordinary losses

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

8

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

Fiscal year ended
March 31, 2024

(April 1, 2022 - March 31, 2023)(April 1, 2023 - March 31, 2024)

Profit16,32017,375207

1,387

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

(81)

103

Foreign currency translation adjustment

2,353

2,517

Remeasurements of defined benefit plans, net of tax

773

4,518

Share of other comprehensive income of entities
accounted for using equity method

463

371

3,715

8,897

20,03626,273Comprehensive income attributable to owners ofparent18,56624,053Comprehensive income attributable to noncontrolling interests

1,469

2,219

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to9(3) Consolidated statements of changes in equity
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
Foreign
Remeasureacquisition
accumulated
currency
ments ofrightsothertranslation
definedcomprehenadjustment 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

179,10310

Fiscal year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Unit: Millions of Yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

28,479Retainedearnings

31,318Treasury shares

101,984

Total
shareholders’equity(7,712)

154,070

Changes during period
Issuance of new shares–

Dividends of surplus(5,611)(5,611)

Profit attributable to owners ofparent15,944

15,944Purchase of treasury shares
Disposal of treasury shares(24)

Change in ownership interest ofparent due to transactions with noncontrolling interests
Net changes in items other thanshareholders’ equity(1,431)(1,431)

1,722

1,697

(9)

(9)
–

Total changes during period
Balance at end of period

–

(34)

10,332290

10,58828,47931,283112,317(7,421)

164,659

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

1,668

(2)

Share
Total
Foreign
Remeasureacquisition
accumulated
currency
ments ofrightsothertranslation
definedcomprehenadjustment benefit plans
sive income
3,082

1,690

6,439

366

Noncontrollinginterests

Total net
assets

18,226

179,103

Changes during period
Issuance of new shares––

Dividends of surplus–(5,611)

Profit attributable to owners ofparent–15,944Purchase of treasury shares–(1,431)

Disposal of treasury shares

–

1,697

–

(9)

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

1,326

90

2,174

4,517

8,109

(15)

6,400

14,494

Total changes during period

1,326

90

2,174

4,517

8,109

(15)

6,400

25,083

Balance at end of period

2,995

88

5,256

6,207

14,548351

24,627204,18611

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

Fiscal year ended
March 31, 2024

(April 1, 2022 - March 31, 2023)(April 1, 2023 - March 31, 2024)

Profit before income taxes

25,736

28,796

Depreciation

22,42926,440

Amortization of goodwill

1,333

1,567

158

112

Decrease (increase) in retirement benefit asset(2,504)(7,700)

Increase (decrease) in retirement benefit liability

583

4,555

Increase (decrease) in provision for bonuses

398

898

Increase (decrease) in provision for share awards

158

(131)

Interest and dividend income

(330)

(497)

Interest expenses

1,668

2,287

Cash flows from operating activities

Increase (decrease) in allowance for doubtful accounts

Loss (gain) on sale of non-current assets

(253)

(130)

Loss on tax purpose reduction entry of non-current assets

279

553

Subsidy income

(279)

(504)

–

(246)

(40)

(351)

–

(113)

Gain on bargain purchase(1,469)–Compensation expenses

132

640

Compensation income
Loss (gain) on sale of investment securities
Surrender value of insurance policies

Loss on valuation of investment securities

–

515

1,540

491

–

340

271

174

Loss on sale of shares of subsidiaries and associates–

151

Expenses related to commemoration for entity establishment–

75

Loss on office withdrawal

184–

Loss on cancellation of leases

50–

Decrease (increase) in accounts receivable - trade, and contract
assets

9,704(10,432)

Decrease (increase) in inventories(1,050)

1,177

Increase (decrease) in accrued liabilities(3,243)

5,936

Other

1,913

7,021

Subtotal

57,371

61,629Subsidies received

279

504

Interest and dividends received

936

842

Interest paid

(1,669)(2,257)

Income taxes paid

(9,223)(9,504)

Cash flows from operating activities

47,694

51,214

Impairment losses
Loss on withdrawal from business
Loss on retirement of non-current assets

Cash flows from investing activities
Payments into time deposits(2,934)(3,024)

Proceeds from withdrawal of time deposits

3,476

3,264

Purchase of property, plant and equipment(34,578)(48,703)

799

1,309

Purchase of intangible assets(1,131)(1,504)Purchase of investment securities(1,666)(721)

Payments of guarantee deposits(2,023)(1,838)Proceeds from refund of guarantee deposits

1,631

558

(15,500)(12,177)

(391)

344

(52,319)(62,492)

Proceeds from sale of property, plant and equipment

Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Other
Cash flows from investing activities

12

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

(April 1, 2022 - March 31, 2023)(April 1, 2023 - March 31, 2024)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(5,149)13,606

Proceeds from long-term borrowings

48,34650,674

Repayments of long-term borrowings(13,424)(14,859)

Repayments of finance lease liabilities(6,603)(8,875)(0)(1,383)(5,089)(5,608)Dividends paid to non-controlling interests

(275)

(440)

Other

(72)

43

17,73033,157848

1,258

Net increase (decrease) in cash and cash equivalents

13,95323,137

Cash and cash equivalents at beginning of period

42,19356,147

Cash and cash equivalents at end of period

56,14779,284Purchase of treasury shares
Dividends paid

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

13