Financial Results for the Period Ended December 31, 2023 [IFRS](Consolidated)
February 14, 2024
NOVARESE, Inc.
Stock Exchange: Tokyo Stock Exchange
9160
URL: https://www.novarese.co.jp/
Hiroki Ogino, President & CEO
Terutoshi Masuyama, Member of the Board and Corporate Officer,
General Manager of the Administration Division
Tel. +81-(0)3-5524-3344
Scheduled date of the Annual General Meeting of Shareholders: March 28, 2024
Scheduled date of the start of dividends payment:‒
Scheduled date to submit securities report:
March 28, 2024
Supplementary material for financial results:
Yes
Briefing on financial results:
Yes (for institutional investors and analysts)
Listed Company:
Code Number:
Representative:
Contact:(Amounts of less than one million yen are rounded off.)

1. Consolidated financial results for the fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Percentages calculated on year-on-year basis.)(1) Consolidated results of operations
Revenue
Fiscal year ended

Operating profit

Net profit%

Million yen%

Million yen%

Million yen%

18,265
17,222

6.1
53.9

1,539
2,775

-44.5
237.6

1,230
2,485

-50.5
360.9

942
1,656

-43.1
343.0

December 31, 2023
December 31, 2022

Profit attributable to ownersof the parent
Fiscal year ended

Profit before income taxes

Million yen

Total comprehensive
income for the period

Basic earnings per share

Million yen%

Million yen

%

942
1,656

-43.1
343.0

926
1,630

-43.2
363.4

December 31, 2023
December 31, 2022

Fiscal year ended

%

Yen

Yen

37.69
66.27

Pre-tax return on assets(ROA)

Return on equity (ROE)

Diluted earnings per share––

Operating profit to revenue%%

December 31, 2023
12.2
3.8
8.4
December 31, 2022
25.9
7.8
16.1
(Reference) Share of profit (loss) of investments accounted for using the equity method: Fiscal year ended December 31, 2023: 1 million yen
Fiscal year ended December 31, 2022: 18 million yen(Note) On May 25, 2023, the Company implemented a two-hundred-for-one common stock split. The basic earnings per share has been calculated
under the assumption that the said share split was conducted at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial position
Total assets
As ofTotal equity

Million yen

Equity attributable toowners of the parent

Ratio of equity
attributable to ownersof the parent

Equity attributable toowners of the parent
per share

Million yen%

Yen

Million yen

December 31, 2023
32,301
8,177
8,177
25.3
327.12
December 31, 2022
31,980
7,234
7,234
22.6
289.37(Note) On May 25, 2023, the Company implemented a two-hundred-for-one common stock split. The equity attributable to owners of the parent per
share has been calculated under the assumption that the said share split was conducted at the beginning of the previous consolidated fiscal
year.

(3) Consolidated cash flows
Cash flows from operating
activities
Fiscal year ended

Cash flows from investing
activities

Million yen

December 31, 2023
December 31, 2022

Cash flows from financing
activities

Million yen

2,996
4,620

Cash and cash equivalents at
end of period

Million yen-2,034-1,340Million yen-2,044-2,725

1,719
2,803

2. Dividends
End of 1stquarter
Yen

Fiscal year ended
December 31, 2022
Fiscal year ending
December 31, 2023
Fiscal year ending
December 31, 2024
(forecast)

Dividend per share
End of 2nd End of 3rdYear endquarterquarter
Yen

Yen

Yen

AnnualYen

Total amountof dividends(Total)Dividend
payout ratio(consolidated)

Dividend on
equity(consolidated)

Million yen

%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

(Note) Revisions from dividends forecasts announced most recently: None

3. Consolidated financial results forecasts for the fiscal year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Revenue(Percentages calculated on year-on-year basis.)
Profit attributable to Basic earnings
Net profit
owners of the parent
per share

Profit before income
taxes

Operating profit

Million yen%

Million yen%

Million yen%

Million yen%

Million yen%

Yen

First half

8,653

4.9

92

-66.8

-95

－

-64

–

-64

–

-2.56

Full year

19,576

7.2

1,710

11.1

1,361

10.6

943

0.1

943

0.1

37.72

* Notes(1) Changes in significant subsidiaries during the period (changes in specific subsidiaries resulting in changes in scope of
consolidation): No(2) Changes in accounting policies and changes in accounting estimates(i) Changes in accounting policies as required by IFRS: Yes(ii) Changes in accounting policies other than (i): No(iii) Changes in accounting estimates: No(3) Number of shares outstanding (common stock)(i) Number of shares outstanding at the end of the period (including treasury shares)
As of December 31, 2023:
25,000,000 shares
As of December 31, 2022:
25,000,000 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023:– shares
As of December 31, 2022:– shares(iii) Average number of shares outstanding during the period
Fiscal year ended December 31, 2023:
25,000,000 sharesFiscal year ended December 31, 2022:
25,000,000 shares(Note) On May 25, 2023, the Company implemented a two-hundred-for-one common stock split. The number of shares outstandingat the end of the period, the number of treasury shares at the end of the period, and the average number of shares outstanding
during the period were calculated assuming that the stock split was implemented at the beginning of the previous
consolidated fiscal year.
(Reference) Summary of non-consolidated results
Non-consolidated financial results for the fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Percentages calculated on year-on-year basis.)(1) Non-consolidated operating results
Net sales
Fiscal year ended

December 31, 2023
December 31, 2022

Operating profit

Ordinary profit

Net profit

Million yen%

Million yen%

Million yen%

Million yen

15,977
15,429

3.6
52.2

295
1,101

-73.2
–

195
1,196

-83.6
–

-131
446

Basic earnings per share
Fiscal year ended%––

Diluted earnings per share

Yen

Yen

December 31, 2023
-5.27–
December 31, 2022
17.87–
(Note) On May 25, 2023, the Company implemented a two-hundred-for-one common stock split. The basic earnings per share has been calculated
under the assumption that the said share split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets
As ofDecember 31, 2023
December 31, 2022
(Reference) Equity:

Net assets

Million yen

19,216
1,570
20,230
1,702
As of December 31, 2023: 1,479 million yen

Million yen

Equity ratio

Net assets per share
%

Yen

8.1
62.54
8.4
67.81
As of December 31, 2022: 1,695 million yen(Note) On May 25, 2023, the Company implemented a two-hundred-for-one common stock split. The net assets per share has been calculated under
the assumption that the said share split was conducted at the beginning of the previous fiscal year.

* This consolidated financial results falls outside the scope of review procedures to be performed by certified public accountants oran audit firm.
* Note regarding proper use of consolidated financial results forecasts and other special comments(Notes on forward-looking statements)
The forward-looking statements, such as results forecasts, included in this document are based on information available to theCompany and certain assumptions that the Company considers reasonable as of the date of the document. The Company does notpromise that the forecasts will be achieved. Actual results may differ significantly due to a range of factors. For conditions regarding
the assumptions for results forecasts and notes on the use of results forecasts, etc., please refer to page 4 of the accompanying
materials “1. Overview of results of operations, (4) Outlook.”Accompanying Materials - Contents
1. Overview of results of operations .................................................................................................................................. 2(1) Results of operations .................................................................................................................................................. 2(2) Financial position ....................................................................................................................................................... 3(3) Cash flows .................................................................................................................................................................. 3(4) Outlook ....................................................................................................................................................................... 4
2. Basic stance on selection of accounting standards ......................................................................................................... 4
3. Consolidated financial statements and significant notes ................................................................................................ 5(1) Consolidated statements of financial position ............................................................................................................ 5(2) Consolidated statements of profit or loss and consolidated statements of comprehensive income ............................ 7(3) Consolidated statements of changes in equity ............................................................................................................ 9(4) Consolidated statements of cash flows ..................................................................................................................... 10(5) Notes to consolidated financial statements ................................................................................................................11(Notes regarding going concern assumptions) ..............................................................................................................11(Changes in accounting policies) ..................................................................................................................................11(Segment information) ..................................................................................................................................................11(Per-share information) ................................................................................................................................................ 13(Significant subsequent events).................................................................................................................................... 13–1–

1. Overview of operating results, etc.
(1) Overview of operating results for the period under review
During the consolidated fiscal year under review (January 1, 2023 to December 31, 2023), the Japanese economy recovered
moderately, partly due to the effects of measures implemented in an improving employment and income situation; however, thefuture of the economy remained uncertain due to the effects of continuing global monetary tightening and concern over the futureof the Chinese economy, and risks of downward pressure on the Japanese economy, such as a downturn in overseas economies,
price increases and changes in financial markets.
In this environment, NOVARESE, Inc. (the “Company”) and its associated companies (the “Group”) have been implementing
priority initiatives guided by its corporate philosophy, “Rock your life: We want to be a company that provides vitality to society.”
One of the priority initiatives is the opening of new wedding venues. In April 2023, the Company opened Amandan Blue Aoshima(Miyazaki, Miyazaki prefecture), the Company’s first venue in Miyazaki prefecture. The Company built Southern Chapel Kiranah
Resort Okinawa, its first wedding venue in Okinawa (Yaesecho, Shimajiri-gun, Okinawa prefecture). The venue was opened in July2023.
In July 2024, the Company will open Seiryuso, an exclusive use wedding venue in Sendai City and the Company’s first venue inMiyagi prefecture.
The Company will build a two-story building on part of a site covering an area of approximately 2,556 m2 adjacent to Zuihoden,
the mausoleum of Masamune Date, who was the founder of the Sendai domain. The location is on a hill offering a stunning view of
Zuihoden’s surroundings of cedar-lined paths, Aobayama to the west of Sendai plain, and the Hirose River running through thecenter of the city. Wedding guests will be offered food incorporating plenty of the local specialities such as seafood caught near Mt.
Kinka and in the Sanriku coastal area.
In September 2024, the Company will open Amandan Aisle, an exclusive use wedding venue in Fukushima City, Fukushima
prefecture.
Amandan Aisle is situated opposite Arakawa Sakura-zutsumi Park, which straddles the Arakawa River, and is a wedding facility
that boasts views of natural beauty. On land with an area of approx. 3,775.17 m2, the Company will build a one-story building (witha total floor space of approx. 1,122.05 m2). The side of the building looking out on the Arakawa River will be made completely of
glass. The banquet hall and chapel will look out directly onto the cherry trees lining the Arakawa River, with majestic views ofMount Azuma-kofuji and Mount Adatara in the background. The Company will incorporate the seasonal changes in the landscape,the cherry blossom of spring, the greenery of summer, the red leaves of autumn, and the snow of winter, into wedding production.
The building will have a contemporary Japanese design. With a wooden ceiling and walls and an elaborate design that accentuateshorizontal and vertical lines, the building will incorporate “Japanese” design elements. It will also create a calm ambience byincorporating the surrounding nature into the design, including the flow of water (water and wave patterns), mountain ranges andcherry blossom. The building exterior will feature a large roof that works in concert with the Adatara mountain range and the banquet
hall will have lighting that evokes water and wave patterns. The floors will be covered with carpet which looks as though it isscattered with cherry blossom.
In the wedding production division of the Bridal business, the number of couples from whom the Company received orders increased
1.0% year on year, to 4,323, and the number of back orders stood at 2,853, down 9.7% year on year. The number of new orders
received and the number of back orders were lower than the levels a year earlier due to increasing competition at some existingvenues, offsetting the strong performance of new venues.
Revenue for the consolidated fiscal year under review amounted to 18,265 million yen, rising 6.1% year on year, primarily due toan increase in the number of wedding guests and growth in sales from banquets and general food and drink at wedding facilities.
Operating profit stood at 1,539 million yen, down 44.5% year on year, profit before income taxes came to 1,230 million yen, falling
50.5% year on year, and net profit was 942 million yen, down 43.1% year on year, reflecting the absence of subsidies related toshorter business hours of 268 million yen and employment adjustment subsidies of 292 million yen which were recorded in theprevious consolidated fiscal year, and an increase in selling, general and administrative expenses, primarily due to higher personnel
expenses mainly associated with the resumption of new graduate recruitment to secure human resources for the opening of new
facilities and higher fixed costs for new facilities.
The number of our facilities as of the end of the fiscal year under review is as follows.
Segment

Bridal businessRestaurant businessType of facility

Guesthouse

Dress shop

Other

Japan

34

23

1

7

Overseas

–

–

1

–

–2–

Results by segment are as follows.
(Bridal business)
In the Bridal business, revenue rose 4.8% year on year, to 17,372 million yen, reflecting recovery in the number of wedding guests
compared with the previous consolidated fiscal year as well as improvement in demand for banquets and general food and drink at
wedding facilities; however, segment profit declined 28.3% year on year, to 2,756 million yen, primarily due to the absence of
employment adjustment subsidies of 249 million yen and subsidies related to shorter business hours of 246 million yen which wererecorded in the previous consolidated fiscal year as well as an increase in selling, general and administrative expenses, chiefly
owning to higher fixed costs for new facilities and higher personnel expenses.
(Restaurant business)
In the Restaurant business, revenue rose 39.4%, to 892 million yen, and segment profit stood at 42 million yen (a segment loss of
13 million yen in the previous consolidated fiscal year), primarily due to the full-year contribution of SHARI Akasaka, which openedin the previous consolidated fiscal year, and growth in sales at existing facilities driven mainly by inbound demand, despite theabsence of employment adjustment subsidies of 42 million yen and subsidies related to shorter business hours of 22 million yen
recorded in the previous consolidated fiscal year.
(2) Overview of financial position for the period under review(Assets)
At the end of the consolidated fiscal year under review, assets totaled 32,301 million yen, an increase of 320 million yen from theend of the previous consolidated fiscal year. Major factors were an increase of 1,102 million yen in property, plant and equipment
due to purchase of property, plant and equipment for new and existing facilities, a climb of 123 million yen in deferred tax assets
resulting from an increase in depreciation in excess of the deductible amount due to the purchase of fixed assets of new and existing
facilities and a provision for shareholder benefit program, and a rise of 112 million yen in trade and other receivables due to anincrease in accounts receivable primarily as a result of growth in restaurant sales, which offset a decrease of 1,084 million yen in
cash and cash equivalents mainly due to the purchase of property, plant and equipment at Amandan Blue Aoshima (Miyazaki,
Miyazaki prefecture), which opened in April 2023, and Southern Chapel Kiranah Resort Okinawa (Yaesecho, Shimajiri-gun,
Okinawa prefecture), which opened in July 2023, and pre-existing facilities, and the payment of accrued consumption taxes recordedin the previous consolidated fiscal year.
(Liabilities)
As of the end of the consolidated fiscal year under review, liabilities totaled 24,123 million yen, a decrease of 622 million yen fromthe end of the previous consolidated fiscal year. The major factors were a decrease of 103 million yen in contract liabilities owed tocustomers and a decrease of 1,038 million yen in borrowings due to repayments of borrowings from financial institutions, which
offset an increase of 431 million yen in other financial liabilities due to an increase in lease liabilities related to openings of facilities.
(Equity)
As of the end of the consolidated fiscal year under review, equity totaled 8,177 million yen, an increase of 943 million yen from theend of the previous consolidated fiscal year. The main factor was an increase in retained earnings resulting from the recording of anet profit of 942 million yen.
(3) Overview of cash flows for the period under review
Cash and cash equivalents (“cash”) as of the end of the consolidated fiscal year under review decreased 1,084 million yen or 38.7%
from the end of the previous consolidated fiscal year, to 1,719 million yen.
Cash flow conditions in the consolidated fiscal year under review and the main associated factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 2,996 million yen. This is primarily attributable to profit before income taxes of 1,230
million yen and depreciation and amortization of 2,344 million yen, partially offset by an increase of 107 million yen in trade andother receivables, a decrease of 103 million yen in contract liabilities, a decrease of 216 million yen in accrued consumption taxes,
and income taxes paid of 236 million yen.

–3–

(Cash flows from investing activities)
Net cash used in investing activities was 2,034 million yen. This primarily reflects the purchase of property, plant and equipment of
1,944 million yen related to Amandan Blue Aoshima (Miyazaki, Miyazaki prefecture), which opened in April 2023, and Southern
Chapel Kiranah Resort Okinawa (Yaesecho, Shimajiri-gun, Okinawa prefecture), which opened in July 2023, and pre-existing
facilities and payments of guarantee deposits of 86 million yen for facilities.
(Cash flows from financing activities)
Net cash used in financing activities was 2,044 million yen. This is primarily due to repayments of long-term borrowings, including
refinancing, of 13,129 million yen and repayments of lease liabilities of 919 million yen in connection with leases of buildings, etc.,
which were partially offset by a net increase in short-term borrowings of 58 million yen due to new short-term loans and borrowing
under overdraft agreements with financial institutions, and proceeds from long-term borrowings related primarily to refinancing of
11,946 million yen.
(Reference) Trends in cash flow indicators
Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
December 31,
December 31,
December 31,
December 31,
December 31,
2019
2020
2021
2022
2023
Ratio of equity attributable toowners of the parent (%)

23.5

15.7

17.1

22.6

25.3

Ratio of equity attributable toowners of the parent onmarket value basis (%)

–

–

–

–

22.8

Cash flow to debt ratio (years)

6.5

–

9.4

4.2

6.3

Interest coverage ratio (times)

17.9

–

8.4

15.7

14.7

Ratio of equity attributable to owners of the parent: Equity attributable to owners of the parent/Total assets
Ratio of equity attributable to owners of the parent on market value basis: Market capitalization/Total assets
Cash flow to debt ratio: Interest-bearing liabilities/Cash flow
Interest coverage ratio: Cash flow/Interest payments(*1) All indicators are calculated based on the consolidated financial results.
(*2) Ratio of equity attributable to owners of the parent on market value basis from the fiscal year ended December 31, 2019 to
the fiscal year ended December 31, 2022 is not stated as market value cannot be determined.
(*3) Cash flows from operating activities are used as cash flow.
(*4) Interest-bearing liabilities mean all interest-bearing liabilities recorded on the consolidated statements of financial position.
(*5) The cash flows to debt ratio (years) and interest coverage ratio (times) for the fiscal year ended December 31, 2020 is notstated as cash flows from operating activities were negative.
(4) Outlook
Looking at our business environment during the consolidated fiscal year under review, the Vital Statistics Report (Preliminary data)
published by the Ministry of Health, Labour and Welfare estimates the number of marriages in 2023 at around 500,000, with figures
still far below the pre-COVID 2019 level of around 600,000 (according to the same statistics). Under such conditions, the Groupwill leverage its strength in the in-house production of various items to develop high added value products and increase efficiency.
At existing facilities, the Group will seek to maintain the appeal of the facilities and win more customers and orders through flexible
renovation that accurately reflects customer preferences and vigorous advertising activities.
As the Group undertakes these initiatives, it forecasts that it will record revenue of 19,809 million yen, an operating profit of 1,775
million yen, a profit before income tax of 1,427 million yen and a net profit of 1,006 million yen in the next consolidated fiscal year.

2. Basic stance on selection of accounting standards
The Group started applying IFRS from the fiscal year ended December 31, 2019 to enhance the international comparability offinancial information in capital markets and improve convenience.

–4–

3. Consolidated financial statements and significant notes(1) Consolidated statements of financial position
As of December 31, 2022

As of December 31, 2023

Thousand yen

Thousand yen

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets
Property, plant and equipment, net
Goodwill
Intangible assets, net
Investments accounted for using the equity method
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets–5–2,803,410
290,256
230,081
20,207
178,581

1,719,405
402,477
241,505
20,033
140,739

3,522,538

2,524,162

14,718,529
11,203,452
68,03622,550937,015
1,506,811
1,714

15,820,651
11,203,452
71,26823,718999,161
1,630,672
28,31328,458,110

29,777,239

31,980,649

32,301,401

As of December 31, 2022

As of December 31, 2023

Thousand yen

Thousand yen

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Other financial liabilities
Provisions
Income taxes payable
Other current liabilities

1,358,780
1,315,725
13,068,564
902,475–
179,367
1,068,691

1,427,247
1,212,356
3,399,769
982,90760,448349,179
745,531

Total current liabilities
Non-current liabilities
Borrowings
Other financial liabilities
Provisions
Other non-current liabilities

17,893,605

8,177,438

1,058,634
4,586,356
1,162,046
45,733

9,688,801
4,937,598
1,271,155
48,443

Total non-current liabilities

6,852,771

15,945,998

24,746,377

24,123,437

100,000
6,150,000
923,664
60,607100,000
6,150,000
1,865,936
62,027

Total equity attributable to owners of the parent

7,234,271

8,177,964

Total equity

7,234,271

8,177,964

31,980,649

32,301,401

Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Other components of equity

Total liabilities and equity–6–(2) Consolidated statements of profit or loss and consolidated statements of comprehensive income(Consolidated statements of profit or loss)
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Thousand yen
17,222,448(7,080,231)

Thousand yen
18,265,376(8,080,801)

Gross profit
Selling, general and administrative expenses
Other income
Other expenses

10,142,217(7,663,626)
322,274(25,131)

10,184,574(8,621,052)
26,034(49,996)

Operating profit
Finance income
Finance expenses
Share of profit of investments accounted for using theequity method

2,775,733
36,086(344,664)

1,539,559
22,481(332,324)

18,054

1,168

Profit before income taxes
Income taxes

2,485,209(828,334)

1,230,884(288,611)

Net profit

1,656,874

942,272

Net profit attributable to
Owners of the parent

1,656,874

942,272

1,656,874

942,272

Revenue
Cost of sales

Net profit
Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)

66.27
–

–7–

37.69
–

(Consolidated statements of comprehensive income)Fiscal year ended
December 31, 2022
Net profit
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Total of items that may be reclassified to profit orloss
Other comprehensive income, net of tax

Fiscal year ended
December 31, 2023

Thousand yen
1,656,874

Thousand yen
942,272(26,562)(15,487)(26,562)(15,487)(26,562)(15,487)

Comprehensive income

1,630,312

926,785

Comprehensive income attributable to
Owners of the parent

1,630,312

926,785

1,630,312

926,785

Comprehensive income–8–(3) Consolidated statements of changes in equity
Fiscal year ended December 31, 2022
Equity attributable to owners of the parent
SharecapitalCapitalsurplusRetainedearnings

Other
componentsof equity

Total equity
attributableto owners of
the parent

Thousandyen
100,000––

Thousandyen
6,150,000––

Thousandyen(733,210)
1,656,874–

Thousandyen
70,262–(26,562)

Thousandyen
5,587,051
1,656,874(26,562)

Thousandyen
5,587,051
1,656,874(26,562)

Total comprehensive income––

1,656,874(26,562)

1,630,312

1,630,312

Stock compensation

–

–

–

16,907

16,907

16,907

Balance as of January 1, 2022
Net profit
Other comprehensive income

Total transactions with owners
Balance as of December 31, 2022

Total equity

–

–

–

16,907

16,907

16,907100,000

6,150,000

923,664

60,607

7,234,271

7,234,271

Fiscal year ended December 31, 2023
Equity attributable to owners of the parent
SharecapitalCapitalsurplusRetainedearnings

Other
componentsof equity

Total equity
attributableto owners of
the parent

Thousandyen
100,000––

Thousandyen
6,150,000––

Thousandyen
923,664
942,272–

Thousandyen
60,607–(15,487)

Thousandyen
7,234,271
942,272(15,487)

Thousandyen
7,234,271
942,272(15,487)

Total comprehensive income––

942,272(15,487)926,785926,785

Stock compensation

–

–

–

16,907

16,907

16,907

Balance as of January 1, 2023
Net profit
Other comprehensive income

Total transactions with owners
Balance as of December 31, 2023

Total equity

–

–

–

16,907

16,907

16,907100,000

6,150,000

1,865,936

62,027

8,177,964

8,177,964–9–

(4) Consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Finance income
Finance expenses
Share of profit (loss) of investments accounted for using
the equity method
Impairment losses
Loss on retirement of fixed assets
Gain on sale of businesses
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in deposits received
Increase (decrease) in accrued consumption taxes
Other

Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Thousand yen

Thousand yen

2,485,209
2,098,922(36,086)
344,664

1,230,884
2,344,642(22,481)332,324(18,054)(1,168)–20,015(31,239)(57,222)(29,662)
169,570
63,633(30,563)(41,244)
41,420(34,233)

16,314
17,335–(107,970)(10,822)62,853(103,451)(3,006)
16,444(216,100)(89,319)

4,945,130
2,631(315,837)(11,710)3,466,478
2,213(235,783)(236,446)

4,620,214

2,996,462(1,352,426)–(11,680)
19,836(49,552)
28,44725,000(1,944,513)
193(29,175)
20,207(86,785)
5,247–

Net cash used in investing activities
Cash flows from financing activities
Net decrease (increase) in deposits with withdrawal
restrictions
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities(1,340,374)(2,034,824)

693,668–(500,000)
700,000(2,686,508)(932,911)

58,335
11,946,564(13,129,462)(919,894)

Net cash used in financing activities
Effect of exchange rate changes in cash and cash
equivalents(2,725,751)(2,044,457)

2,483(1,185)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

556,572
2,246,838(1,084,004)
2,803,410

Cash and cash equivalents at end of period

2,803,410

1,719,405

SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of intangible assets
Proceeds from collection of loans receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Proceeds from sale of businesses– 10 –

(5) Notes to consolidated financial statements(Notes regarding going concern assumptions)Not applicable.
(Changes in accounting policies)
The Group has applied the following standards from the first quarter of the fiscal year ended December 31, 2023.
IFRS
Description of new standards/amendments
IAS 1

Presentation of Financial Statements

Requires disclosure of not only significant accounting policies but
also material accounting policies.

IAS 8

Accounting policies, changes inaccounting estimates and errors

Clarifies how to distinguish changes in accounting policies fromchanges in accounting estimates.

IAS 12

Income taxes (revised in May 2021)

Clarifies deferred tax accounting related to leases and disposal
obligations

The application of the accounting standards above does not have material impact on the consolidated financial statements.
(Segment information)(1) Overview of reportable segments
The Group’s reportable segments are the Company’s components for which separate financial information is available and forwhich the Board of Directors performs periodic reviews for the purposes of determining management resources allocation andevaluating performance.
The Group’s business is classified into segments according to business type. The Group has two reportable segments: the Bridal
business and the Restaurant business.
The major operations of the Bridal business are the planning and operations of ceremonies and banquets, wedding attire rental
and sale, and provision of banquet food and beverages.
The major operations of the Restaurant business are preparing banquets and general meals (lunches and dinners).
(2) Revenues and business results by segment
The following are the results, including revenue, of the reportable segments of the Group.
Profit or loss of the reportable segments is the operating profit on the consolidated statements of profit or loss.
Intersegment transaction prices are based on prevailing market prices.

– 11 –

Fiscal year ended December 31, 2022
Reportable segments

Revenue
External
Intersegment
Total
Segment profit (loss)

Bridal businessRestaurant
business

Total

Adjustments(Notes 1 and 2)

Consolidated

Thousand yen

Thousand yen

Thousand yen

Thousand yen

Thousand yen

16,582,108
3,631

640,340
33,243

17,222,448
36,874–(36,874)

17,222,448–

16,585,739

673,583

17,259,323(36,874)

17,222,448

3,844,139(13,586)

3,830,552(1,054,819)

2,775,733

Finance income
Finance expenses
Share of profit of investments
accounted for using the equity
method36,086(344,664)

Profit before income taxes

2,485,209

18,054

Segment assets (Note 3)

28,975,010

809,063

29,784,073

2,196,576

31,980,649

Other information
Depreciation andamortization (Note 3)
Impairment losses (Note 3)

1,987,544

46,8272,034,372

64,5502,098,922

–

–

–

–

–

Capital expenditures (Note 3)

1,735,029

359,570

2,094,599

17,492

2,112,091(Notes) 1. “Adjustments” in segment profit (loss) is mostly the elimination of intersegment transactions and corporate expenses
that are not allocated to either reportable segment. Corporate expenses are primarily general and administrative
expenses that are not attributable to either reportable segment.
2. The adjustment for segment assets is corporate assets that are not allocated to the reportable segments. Corporate
assets are assets of the Company.
3. Segment assets, depreciation and amortization, and capital expenditures include amounts related to right-of-use assets.
Fiscal year ended December 31, 2023
Reportable segments

Revenue
External
Intersegment
Total
Segment profit

Bridal businessRestaurant
business

Total

Adjustments(Notes 1 and 2)

Consolidated

Thousand yen

Thousand yen

Thousand yen

Thousand yen

Thousand yen

17,372,704
2,736

892,671
27,457

18,265,376
30,194–(30,194)

18,265,376–

17,375,441

920,129

18,295,570(30,194)

18,265,376

2,756,912

42,5152,799,427(1,259,868)

1,539,559

Finance income
Finance expenses
Share of profit of investments
accounted for using the equity
method22,481(332,324)

Profit before income taxes

1,230,884

Segment assets (Note 3)
Other information
Depreciation andamortization (Note 3)
Impairment losses (Note 3)
Capital expenditures (Note 3)

1,168

30,402,216

754,317

31,156,533

1,144,868

32,301,401

2,208,690

74,0242,282,714

61,9272,344,642

16,314
3,864,598–
3,214

16,314
3,867,812–
14,053

16,314
3,881,866(Notes) 1. “Adjustments” in segment profit is mostly the elimination of intersegment transactions and corporate expenses thatare not allocated to either reportable segment. Corporate expenses are primarily general and administrative expenses
that are not attributable to either reportable segment.
2. The adjustment for segment assets is corporate assets that are not allocated to the reportable segments. Corporate
assets are assets of the Company.
– 12 –

3. Segment assets, depreciation and amortization, impairment losses, and capital expenditures include amounts related toright-of-use assets.
(Per share information)
The basis for calculation of basic earnings per share is as shown below.
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Profit attributable to owners of the parent (thousand yen)

1,656,874

942,272

Average number of common shares during the period (shares)

25,000,000

25,000,000

66.27

37.69

Basic earnings per share (yen)(Notes) 1. Diluted earnings per share is not stated because there are no dilutive shares.
2. On May 25, 2023, the Company implemented a two-hundred-for-one common stock split. The basic earnings per
share has been calculated under the assumption that the said share split was conducted at the beginning of theprevious fiscal year.
(Significant subsequent events)
Not applicable.

– 13 –