This document is an English translation of a statement written originally in Japanese. The Japanese original should
be considered as the primary version.

Consolidated Financial Results for Three Months Ended August 31, 2022
(Japanese GAAP)

October 3, 2022
Name of Listed Company: CREATE SD HOLDINGS CO., LTD.
Listing: Tokyo Stock Exchange
Securities code: 3148
URL: https://www.createsdhd.co.jp/English/tabid/129/Default.aspx
Representative: Taizo Hirose, Representative Director and President
Contact: Tetsuya Yamazaki, Executive Officer and General Manager, Finance andTel: +81-45-914-8241
Accounting Dept.
Scheduled filing date of Securities Report: October 7, 2022
Scheduled date of start of dividend payment: ―Supplementary materials for the financial results: None
Quarterly results briefing sessions: None
(Figures are rounded down to the nearest million yen)

1. Consolidated First Quarter Results for Fiscal Year Ending May 31, 2023 (June 1, 2022 to August 31, 2022)(1) Consolidated Operating Results(Figures in percentages denote the year-on-year change)
Profit attributable toOperating profit
Ordinary profit
owners of parentNet sales
Millions of yen%

Millions of yen%Millions of yen%Three months ended
94,530
6.2
4,732
0.2
4,872
0.8
August 31, 2022
Three months ended
89,032
3.5
4,722
–13.2
4,836
–12.9
August 31, 2021
(Note) Comprehensive income: Three months ended August 31, 2022: ¥3,308 million (1.1%)
Three months ended August 31, 2021: ¥3,272 million (–13.4％)
Earnings per share
Three months ended
August 31, 2022
Three months ended
August 31, 2021

Diluted earnings per share

YenYen52.16－51.68－(2) Consolidated Financial Position
Total assets

Total net assetsMillions of yen

As of August 31, 2022
As of May 31, 2022
(Reference) Net assets:

180,625
176,910
As of August 31, 2022: ¥108,177 million
As of May 31, 2022: ¥106,323 million

Equity ratio

Millions of yen％

108,177
106,323

59.9
60.1

Millions of yen

%

3,297

0.9

3,266

–13.2

2. Dividend Payments
Dividends per shareFirst quarter

Second quarter
Yen

Third quarter

Yen

Fiscal year ended—
23.00
May 31, 2022
Fiscal year ending—
May 31, 2023
Fiscal year ending
25.00
May 31, 2023 (forecast)(Note) Revisions to most recently announced dividend forecast: None

Year-end

AnnualYen

YenYen—

23.00

46.00

—

25.00

50.00

3. Consolidated Financial Forecast (From June 1, 2022 to May 31, 2023)
Net sales
Millions of yen(Figures in percentages denote the year-on-year change)
Profit attributable to Earnings perOrdinary profit
owners of parent
share

Operating profit% Millions of yen% Millions of yen

Six months ending
November 30, 2022

182,270

4.9

7,270 –17.8

Full-year

371,300

5.9

16,970–6.6%Yen

7,500 –17.5

5,130 –16.8

81.15

17,40011,440180.96(Note) Revisions to most recently announced financial results forecast: None%–6.8

Millions of yen–9.2

Notes(1) Significant changes of subsidiaries in three months ended August 31, 2022 (changes in specific subsidiaries
accompanied by a change in the scope of consolidation):
None
Newly consolidated: ― companies (company name(s)); Deconsolidated: ― companies (company name(s))
Notes on significant changes of subsidiaries during period(2) Application of accounting treatments specific to preparation of quarterly consolidated financial statements:
Yes
Notes on application of accounting treatments specific to preparation of quarterly consolidated financial statements(3) Changes in accounting policies, changes of accounting estimates and restatement(i) Changes in accounting policies due to amendments to accounting standards: None(ii) Other changes in accounting policies:None(iii) Changes in accounting estimates:None(iv) Restatements:
NoneNotes on changes in accounting policies(4) Issued shares (common shares)(i) Issued shares (including treasuryshares) at period-end:(ii) Treasury shares at period-end:(iii) Average issued shares during period:

Three months ended
August 31, 2022
Three months ended
August 31, 2022
Three months ended
August 31, 2022

66,819,342 shares
3,600,793 shares
63,218,567 sharesFiscal year ended
May 31, 2022
Fiscal year ended
May 31, 2022
Three months ended
August 31, 2021

66,819,342 shares
3,600,755 shares
63,218,613 shares

Note on issued sharesThis financial summary is not subject to a quarterly review by certified public accountants or audit firms.
Cautionary statement regarding business results forecasts and special notes(Notes concerning forward-looking statements, etc.)
The financial forecasts and other forward-looking statements contained herein are based on currently available information and certain
assumptions considered by the Company to be reasonable. Actual financial results may differ materially due to various factors. Refer to“(3) Overview of Consolidated Financial Results Forecast and Future Expectations” on page 3 of the supplementary material for theunderlying assumptions and proper use of the forecasts.

Contents

1.Qualitative Information Related to Consolidated Financial Results……………………………………………………… 2(1) Overview of Operating Results……………………………………………………………………………………………2(2) Overview of Financial Position ………………………………………………………………………………………… 3(3) Overview of Consolidated Financial Results Forecast and Future Expectations ……………………………………

3

2. Consolidated Financial Statements and Notes …………………………………………………………………………… 4(1) Consolidated Balance Sheet……………………………………………………………………………………………… 4(2) Consolidated Statements of Income and Comprehensive Income ……………………………………………………… 6(3) Notes to Consolidated Financial Statements………………………………………………………………………………8Going concern assumption…………………………………………………………………………………………

8Notes in case of significant changes in shareholders’ equity……………………………………………………………8Application of specific accounting treatment in the preparation of consolidated financial statements ………………

8Changes to accounting policies …………………………………………………………………………………………8Changes in accounting estimates ……………………………………………………………………………………… 8
Additional information………………………………………………………………………………………………… 8
3. Supplemental Information…………………………………………………………………………………………………9(1) Production, Orders Received, and Sales ……………………………………………………………………………9-1-

1.Qualitative Information Related to Consolidated Financial Results(1) Overview of Operating Results
During the first three months of the fiscal year ending May 31, 2023, despite the trend toward normalization of economic activity,
the future of the Japanese economy remained uncertain due to heightened geopolitical risks, soaring raw material prices, andfluctuations in the financial and capital markets on top of the ongoing difficult circumstances arising from the COVID-19 pandemic.
The business environment in the drug store industry remains harsh due to the entry of new competitors from other industries
and an increase in consolidation and restructuring on top of new store openings by competitors and intensification of pricecompetition.
Under these circumstances, the Group will promote comprehensive health care support for regional contribution in the domainsof daily life, prevention, medical care, and nursing care.
Drug Stores
In the drug store business, we worked on expanding our lineup of fresh and frozen foods to respond to demand for one-stop
shopping for daily life necessities while promoting everyday low prices (EDLP) so that customers can buy products at attractive
prices no matter when they come to our stores. In addition, we continued to focus on improving convenience and expertise in small
trade areas by promoting in-store prescription drug stores.
During the first three months of the fiscal year ending May 31, 2023, there was an increase in demand for antiviral products,
antigen test kits, common cold medicines, and other such products associated with the seventh wave of COVID-19 and an increasein demand for seasonal products associated with a record-breaking heat wave. In regard to expenses, although utility costs soared
due to rising crude oil prices, and personnel expenses increased as we promoted in-store prescription drug stores, both net sales
and profit were higher than the previous year owing to efforts to control costs such as thorough company-wide electricity saving
measures and optimization of man-hours at work sites.
During the period, we opened five new drug stores. Moreover, we opened 12 new in-store prescription drug stores and closed
one dedicated prescription drug store for which the contract expired.
Supermarkets
We operate Yuri Store supermarkets in Asao Ward and Tama Ward, Kawasaki City, Kanagawa. As in the previous fiscal year, weare gradually renovating and converting existing supermarkets into combination drug store/fresh produce stores in order to enhance
the competitiveness of individual stores and create synergy with our drug store business. Yuri Store offers fresh produce and side
dishes while Create SD provides other foods, daily products, cosmetics, and medical and health products, and operates drug
stores. As of the end of the first three months of the fiscal year ending May 31, 2023, we have three supermarkets and two drug
store/fresh produce stores.
Nursing Care
As society ages, we are operating paid assisted living facilities characterized by delicious meals for elderly people that want tolive safely and securely under the care of nursing staff as well as adult day care centers characterized by strength and functional
maintenance and recovery training for those who want to live at home as long as possible. We took care to prevent the spread of
COVID-19 in our paid assisted living facilities and adult day care services while also pouring effort into customer service, which
is one of the distinctive characteristics of our Group, to increase user satisfaction and improve occupancy rates. During the first
three months of the fiscal year ending May 31, 2023, we closed two adult day care facilities in order to improve management
efficiency.
Owing to the efforts above, as of the end of the first three months of the fiscal year ending May 31, 2023, the number of theGroup’s drug stores came to 691, the number of dedicated prescription drug stores to 35, and the number of in-store prescription
drug stores to 287, for a total of 322 stores. The Group also has three stores in the supermarket business, two fresh produce stores,
two paid assisted living facilities, and 37 adult day care centers in the nursing care business.
As a result of the above, the financial results for the first three months of the fiscal year ending May 31, 2023 were as follows:
Net sales came in at 94,530 million yen (up 6.2% year on year), operating profit was 4,732 million yen (up 0.2%), ordinary profit
was 4,872 million yen (up 0.8%), and profit attributable to owners of parent was 3,297 million yen (up 0.9%).

-2-

(2) Overview of Financial Position
Total assets as of August 31, 2022 were 180,625 million yen, up 3,714 million yen from the end of the previous fiscal year. The
main factors were a 1,599 million yen increase in accounts receivable and a 5,015 million yen increase in land as well as a 3,318
million yen decrease in cash and deposits.
Total liabilities as of August 31, 2022 were 72,447 million yen, up 1,860 million yen from the end of the previous fiscal year.
The main factors were a 2,535 million yen increase in accounts payable and a 1,328 million yen decrease in accrued income taxes.
Net assets as of August 31, 2022 were 108,177 million yen, up 1,854 million yen from the end of the previous fiscal year. The
main factors were a 1,454 million yen decrease in dividends paid and recording of 3,297 million yen in profit attributable to ownersof parent.

(3) Overview of Consolidated Financial Results Forecast and Future Expectations
At this time, no changes have been made to the forecasts for the fiscal year ending May 31, 2023 announced on July 11, 2022.

-3-2. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)
FY2021(As of May 31, 2022)

1Q of FY2022(As of August 31, 2022)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

42,067
11,15838,74812,758Merchandise
Other

35,6159,274

35,2508,831

Total current assets

98,115

95,58923,16623,140Land
Other, net

17,196
4,407

22,212
4,285

Total property, plant and equipment

44,77049,638593

563

Non-current assets
Property, plant and equipment
Buildings and structures, net

Intangible fixed assets
Goodwill
Other

918

920

1,511

1,483

Long-term loans receivable
Leasehold and guarantee deposits

9,868
11,251

9,752
11,293

Other
Allowance for doubtful accounts11,436(43)

12,910(42)

Total investments and other assets

32,51333,91378,79585,036

176,910

180,625

44,2283,070

46,764
1,741

357

1,790

145

36

164
4164
4

Other

14,62813,872

Total current liabilities

62,59864,373Net defined benefit liability
Asset retirement obligations

3,150
3,417

3,229
3,446

Provision for loss on subleasing
Other

37
1,383

35
1,361

Total non-current liabilities

7,988

8,074

70,58772,447

Total intangible assets
Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Accrued income taxes
Accrued bonuses
Provision for bonuses for directors (and otherofficers)
Provision for point card certificates
Asset retirement obligations

Non-current liabilities

Total liabilities-4-(Millions of yen)
FY2021(As of May 31, 2022)

1Q of FY2022(As of August 31, 2022)

Net assets
Equity capital
Share capital
Capital surplus

1,000934

1,000934

Retained earnings
Treasury shares

108,850(4,393)

110,693(4,393)

Total shareholders’ equity

106,391108,234

23(91)

27(84)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

(68)

(56)

Total net assets

Total accumulated other comprehensive income

106,323

108,177

Liabilities and net assets

176,910

180,625-5-

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
First three months of the fiscal year ending May 31, 2023

Net sales
Cost of sales

1Q of FY2021(From June 1, 2021
to August 31, 2021)
89,032
65,388(Millions of yen)
1Q of FY2022(From June 1, 2022
to August 31, 2022)
94,53069,160Gross profit

23,64325,370

Provision for point card certificates
Salaries and allowances

136
7,965

164
8,492

Provision for bonuses
Provision for directors’ bonuses

1,312
27

1,411
32

Retirement benefit expenses
Depreciation and amortization

111
897

202
912

Land/office rent
Other

3,923
4,546

4,117
5,306

Total selling, general and administrative expenses

18,92020,638

4,722

4,732

Interest income
Dividend income

230

220

Rent income
Other

74
58

98
62

Total non-operating income

156

183

4241

Selling, general and administrative expenses

Operating profit
Non-operating profit

Non-operating expenses
Rental expenses
Other01

Total non-operating expenses

4342

4,836

4,872

32

3

2

Profit before income taxes

4,832

4,870

Income taxes

1,565

1,573

Profit

3,266

3,297

－－

3,266

3,297

Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent-6-Consolidated Statement of Comprehensive Income
First three months of the fiscal year ending May 31, 2023

3,266(Millions of yen)
1Q of FY2022(From June 1, 2022
to August 31, 2022)
3,297

323
7

1Q of FY2021(From June 1, 2021
to August 31, 2021)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

511

3,272

3,308

3,272

3,308

－－

Comprehensive income attributable to:
Owners of parent
Non-controlling interests-7-(3) Notes to Consolidated Financial StatementsGoing concern assumption
Not applicable
Notes in case of significant changes in shareholders’ equity
Not applicable
Application of specific accounting treatment in the preparation of consolidated financial statements(Calculation of tax expenses)
We make a reasonable estimate of the effective tax rate to be imposed on profit before income taxes in the fiscal year ending May
31, 2023, including the first three months, after applying tax effect accounting and perform the calculation by multiplying profit
before income taxes by the estimated effective tax rate.
Changes to accounting policies
Not applicable
Changes in accounting estimates
Not applicable
Additional Information
There are no significant changes to the assumptions regarding the impact of COVID-19 described in (Additional Information)and (Accounting Estimates for Impact of COVID-19) in the securities report for the previous fiscal year.

-8-3. Supplemental Information(1) Production, Orders Received, and Sales
1) Sales results(i) Sales results by product division
Sales results by product division during the first three months of the fiscal year ending May 31, 2023 were as follows:
1Q of FY2022(From June 1, 2022 to August 31, 2022)
Product division

Amount (millions of yen)

YoY change (%)

Drug Stores
Medical and health products

26,002111.9

OTC

15,984

109.1

Prescription drug stores

10,018116.6

Cosmetics

11,402

105.6

Food products

36,507

105.8

Daily products

14,803

101.4

Other

4,365

103.4

Subtotal

93,081

106.5

894

79.1

Paid assisted living facilities

182

94.5

Adult day care services

341

102.9

Subtotal

523

100.0

Revenue from contracts with customers

94,498106.1

Other revenue (Notes)

31－Total

94,530106.2

Supermarkets
Nursing Care(Note) Other revenue includes rent income based on the Accounting Standard for Lease Transactions (ASBJ Statement No. 13).

-9-(ii) Sales results by region
Sales results by region during the first three months of the fiscal year ending May 31, 2023 were as follows:
1Q of FY2021(From June 1, 2021
to August 31, 2021)
Amount(millions of yen)

1Q of FY2022(From June 1, 2022
to August 31, 2022)

Share (%)

Amount(millions of yen)

Share (%)

Kanagawa

55,251

62.1

58,668

62.1

Tokyo12,756

14.3

13,801

14.6

Shizuoka

10,16911.4

10,40711.0

Chiba

6,314

7.1

6,800

7.2

Other

4,540

5.1

4,852

5.1

Total

89,032100.0

94,530100.0(2) Purchase results
Purchase results by product division during the first three months of the fiscal year ending May 31, 2023 were as follows:
1Q of FY2022(From June 1, 2022 to August 31, 2022)
Product division

Amount (millions of yen)

YoY change (%)

Drug Stores
Medical and health products

15,484

110.5

OTC

9,481

109.7

Prescription drug stores

6,003

111.8

Cosmetics

6,951

101.1

Food products

31,476

106.0

Daily products

10,274100.6Other

3,407

103.9

Subtotal

67,595

105.5

679

78.4

Paid assisted living facilities――

Adult day care services――

Subtotal――

68,275

105.1

―

―

68,275

105.1

Supermarkets
Nursing Care

Purchases for revenue from contracts
with customers
Other revenue
Total- 10 -