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 Nine Months Ended February 29, 2024
(Japanese GAAP)
April 8, 2024
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: April 12, 2024
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 Third Quarter Results for Fiscal Year Ending May 31, 2024 (June 1, 2023 to February 29, 2024)(1) Consolidated Operating Results(Figures in percentages denote the year-on-year change)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

10,712

10.0

9,734

5.5

Nine months ended
313,119
10.9
15,58811.2
16,063
11.8
February 29, 2024
Nine months ended
282,365
8.3
14,021
5.9
14,366
5.6
February 28, 2023
(Note) Comprehensive income: Nine months ended February 29, 2024: 10,710 million yen (9.7%)
Nine months ended February 28, 2023: 9,766 million yen (5.8%)
Earnings per share
Nine months ended
February 29, 2024
Nine months ended
February 28, 2023

Diluted earnings per share
Yen

Yen

169.24169.24153.98－(2) Consolidated Financial Position
Total assets

Total net assets

Millions of yen

Equity ratio

Millions of yen%

As of February 29, 2024
203,128
126,058
As of May 31, 2023
194,941
116,409(Reference) Net assets: As of February 29, 2024: 126,036 million yen
As of May 31, 2023: 116,409 million yen

62.0
59.7

2. Dividend Payments
Dividends per shareFirst quarter
Yen

Second quarter Third quarter
Yen

Fiscal year ended
25.00－
May 31, 2023
Fiscal year ending
27.00－
May 31, 2024
Fiscal year ending May 31,
2024 (forecast)(Note) Revisions to most recently announced dividend forecast: Yes

Year-end

Annual

Yen

Yen

Yen

－

27.00

52.00

37.00

64.00

－

3. Consolidated Financial Forecast (From June 1, 2023 to May 31, 2024)
Net sales
Millions of yen(Figures in percentages denote the year-on-year change)
Profit attributable toEarnings per
Ordinary profit
owners of parent
share

Operating profit%

Millions of yen

Millions of yen%

Millions of yen%

Yen

Full-year
423,550
11.2
20,98010.9
21,600(Note) Revisions to most recently announced financial results forecast: Yes

%

11.2

13,9507.9

218.10Notes(1) Significant changes of subsidiaries in nine months ended February 29, 2024 (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: None
Notes on changes in accounting policies(4) Issued shares (common shares)(i) Issued shares (including treasury shares) at
period-end:(ii) Treasury shares at period-end:(iii) Average issued shares during period:

Nine months ended
February 29, 2024
Nine months ended
February 29, 2024
Nine months ended
February 29, 2024

66,819,342 shares
2,858,557 shares
63,298,393 sharesFiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2023
Nine months ended
February 28, 2023

66,819,342 shares
3,600,857 shares
63,218,536 shares

Note on issued sharesThis financial summary is not subject to a quarterly review by a certified public accountant or audit firm.
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 andcertain 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 the underlying 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
Consolidated Statement of Income ......................................................................................................................................6First nine months of the fiscal year ending May 31, 2024 ...............................................................................................6
Consolidated Statement of Comprehensive Income .............................................................................................................7
First nine months of the fiscal year ending May 31, 2024 ...............................................................................................7(3) Notes to Consolidated Financial Statements ......................................................................................................................8
Going concern assumption ...................................................................................................................................................8
Notes in case of significant changes in shareholders’ equity................................................................................................8Application of specific accounting treatment in the preparation of consolidated financial statements ................................8
Changes to accounting policies ............................................................................................................................................8
Changes in accounting estimates..........................................................................................................................................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 nine months of the fiscal year ending May 31, 2024 (June 1, 2023 to February 29, 2024), the Japanese economy
continued its return to normal in line with the reclassification of COVID-19 and the domestic economy showed a gradual
recovering trend. However, the economic outlook remains uncertain. This is due notably to a fall in consumer sentiment as real
wages stagnate while the cost of living continues to rise due to soaring resource prices.
In the drug store industry, while demand did increase for cosmetics due to the easing of restrictions on movement and for
medical and health products due to the spread of colds and influenza, business conditions for the Group became increasingly
difficult due to a range of factors. Demand for products to contain the spread of the coronavirus fell, households increasingly
sought to save money owing to the rising cost of living, while revised medical fees and drug prices resulted in lower prescription
unit prices. These impacts were compounded by competitors from other industries opening new stores, intensification of pricecompetition, and restructuring within the industry involving a number of major operators.
Under these circumstances, the Group is promoting comprehensive health care support for regional contribution in the domainsof daily life, prevention, medical care, and nursing care as we continue to strengthen our dominant position in existing areas,
mainly in in-store prescription drug stores, to achieve the Medium-term Management Plan.
Drug Stores
The drug store business faced a further strengthening of the tendency among households to seek money savings and consume
selectively. This was due mainly to the continuing rise in the cost of living, and particularly of food products, driven by soaring
resource prices. In response, the Group continued its everyday low prices (EDLP) strategy offering affordable prices at all times,
thus acting as a lifeline to support the health and lifestyles of local customers and patients. We also continued our efforts to realize
quick, one-stop shopping by promoting in-store prescription drug stores and improving convenience and expertise in small tradeareas by expanding the lineup of fresh foods and other food products.
Sales and the number of customers at existing stores remained steady during the first nine months of fiscal year ending May 31,
2024. This was a result of an increase in demand for common cold medicines and cosmetics products and the continued successof EDLP strategy, including for daily necessities, despite the drop in demand for products to contain the spread of the coronavirus.
In the prescriptions division, the number of prescriptions filled remained steady as a result of efforts to promote in-store
prescription drug stores and enhance interpersonal work, despite the impact of regulatory revisions to medical fees and drug prices.
During the period, we opened 28 new drug stores. On the other hand, we closed four stores, one for renovation works, two due
to expiration of contracts, and one from the standpoint of improving management efficiency. New prescription drug store openings
consisted of 30 new in-store prescription drug stores and one dedicated prescription drug store in a medical mall.
Nursing Care
As society ages, we are operating two paid assisted living facilities characterized by delicious meals for elderly people who wantto live safely and securely under the care of nursing staff as well as 37 half-day rehabilitative adult care centers for those who wantto continue living at home. For our paid assisted living facilities and adult day care services we have put every effort into customer
service, which is one of the distinctive characteristics of our Group, to increase user satisfaction and improve occupancy rates.
Owing to the efforts above, the number of Group stores as of February 29, 2024, was as follows: 741 drug stores, two
supermarkets, and three combination drug store/fresh produce stores. The total number of prescription drug stores was 401,
consisting of 38 dedicated prescription drug stores and 363 in-store prescription drug stores. The Group also has two paid assisted
living facilities and 37 half-day adult care centers in the nursing care business.
As a result of the above, the financial results for the first nine months of the fiscal year ending May 31, 2024 were as follows:
Net sales came in at 313,119 million yen (up 10.9% year on year), operating profit was 15,588 million yen (up 11.2%), ordinary
profit was 16,063 million yen (up 11.8%), and profit attributable to owners of parent was 10,712 million yen (up 10.0%).

―2―

(2) Overview of Financial Position
Total assets as of February 29, 2024 were 203,128 million yen, up 8,186 million yen from the end of the previous fiscal year. The
main factors were a 515 million yen increase in merchandise and an 11,746 million yen increase in non-current assets as well as a
3,732 million yen decrease in cash and deposits.
Total liabilities as of February 29, 2024 were 77,070 million yen, down 1,462 million yen from the end of the previous fiscal
year. The main factors were current liabilities items: a 1,392 million yen increase in accrued bonuses and decreases of 2,441
million yen in “Other” and 1,103 million yen in accrued income taxes.
Total net assets as of February 29, 2024 were 126,058 million yen, up 9,648 million yen from the end of the previous fiscal year.
The main factors were a 3,413 million yen decrease due to dividends paid, decreases of 1,425 million yen in capital surplus and905 million yen in treasury shares, and the recording of 10,712 million yen in profit attributable to owners of parent.

(3) Overview of Consolidated Financial Results Forecast and Future Expectations
The forecasts for the fiscal year ending May 31, 2024 announced on July 10, 2023 have been revised in light of trends inconsolidated operating results in the first nine months of the fiscal year.
For details, please refer to the “Notice concerning Revision of Full-Year Financial Forecast and Dividend Forecast (Dividend
Increase)” published today (April 8, 2024).

―3―

2. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)
FY2022(As of May 31, 2023)

3Q of FY2023(As of February 29, 2024)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade37,526
13,312

33,793
13,960

Merchandise
Other38,497
10,29539,012
9,358

－

(54)

99,631

96,071

27,762
25,211

35,104
26,777

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

4,858

8,205

Total property, plant and equipment

57,83270,088Goodwill
Other

473
1,055

392
823

Total intangible assets

1,529

1,216

Intangible fixed assets

Investments and other assets
Long-term loans receivable
Leasehold and guarantee deposits
Other

9,654

9,767

11,576
14,75911,76014,264

Allowance for doubtful accounts

(40)

(39)

Total investments and other assets

35,94835,752

Total non-current assets

95,310107,057

194,941

203,128

50,48550,724

3,386
378

2,282
1,771

145

117

171

160

89
8

11
21

Other

15,487

13,045

Total current liabilities

70,152

68,136

Net defined benefit liability
Asset retirement obligations

3,310
3,579

3,541
3,825

Provision for loss on subleasing
Other

30
1,459

25
1,540

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
Provision for loss on store closings

Non-current liabilities

Total non-current liabilities
Total liabilities

―4―

8,379

8,933

78,532

77,070(Millions of yen)
FY2022(As of May 31, 2023)

3Q of FY2023(As of February 29, 2024)

Net assets
Equity capital
Share capital
Capital surplus

1,000
934

1,000
2,359

Retained earnings
Treasury shares

118,741(4,393)126,040(3,488)

Total shareholders’ equity

116,282

125,912Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

39
87

42
81

Total accumulated other comprehensive income

126

124

－

21

Total net assets

116,409

126,058

Liabilities and net assets

194,941

203,128

Accumulated other comprehensive income

Share options―5―(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
First nine months of the fiscal year ending May 31, 2024

Net sales
Cost of sales

3Q of FY2022(From June 1, 2022
to February 28, 2023)
282,365
205,684(Millions of yen)
3Q of FY2023(From June 1, 2023
to February 29, 2024)
313,119
231,232

Gross profit

76,681

81,886

Provision for point card certificates
Salaries and allowances

172
25,449160
26,875

Provision for bonuses
Provision for directors’ bonuses

1,601
104

1,702
113

Retirement benefit expenses
Depreciation and amortization

615
3,013

577
3,477

Land/office rent
Other

12,413
19,28912,927
20,463

Total selling, general and administrative expenses

62,66066,29814,021

15,588Interest income
Dividend income

66
1

64
1

Gain on receipt of donated non-current assets
Rent income

25
244

18
260

Subsidy income
Other

47
116

149
131

Total non-operating income

501

624

2

4

Rental expenses
Other

124
29

122
21

Total non-operating expenses

156

148

Ordinary profit

14,366

16,063

Subsidy income

9

16

Other

－

1

Total extraordinary income

917Loss on sale of non-current assets
Loss on retirement of non-current assets

－
10

26
165

Loss on store closings
Loss on tax purpose reduction entry of non-current
assetsProvision for loss on store closings

3

－

9

16

－

21

Selling, general and administrative expenses

Operating profit
Non-operating profit

Non-operating expenses
Compensation expenses

Extraordinary losses

22

229

Profit before income taxes

Total extraordinary losses

14,35215,851

Income taxes

4,618

5,138

Profit9,734

10,712

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

―6―

－

－

9,734

10,712

Consolidated Statement of Comprehensive Income
First nine months of the fiscal year ending May 31, 2024

ProfitOther comprehensive income

3Q of FY2022(From June 1, 2022
to February 28, 2023)
9,734(Millions of yen)
3Q of FY2023(From June 1, 2023
to February 29, 2024)
10,712

9
22

3
(6)

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

32

(2)

9,766

10,7109,766

10,710－－Comprehensive income attributable to:
Owners of parent
Non-controlling interests―7―(3) Notes to Consolidated Financial Statements
Going concern assumption
Not applicable

Notes in case of significant changes in shareholders’ equity
Following the exercise of first-time share options issued on November 22, 2023, the Group’s capital surplus in the first nine monthsof the fiscal year ending May 31, 2024 increased by 1,425 million yen and its treasury shares decreased by 905 million yen. As aresult, the capital surplus as of February 29, 2024, stood at 2,359 million yen while treasury shares showed a negative figure of
3,488 million yen.

Application of specific accounting treatment in the preparation of consolidated financial statements
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, 2024, including the first nine 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―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 nine months of the fiscal year ending May 31, 2024 were as follows:
3Q of FY2023(From June 1, 2023 to
February 29, 2024)
Product division

Amount (millions of yen)

YoY change (%)

83,259106.8

OTC

46,078

99.7

Prescription drug stores

37,181

117.2

Cosmetics

35,638

107.6

Food products

130,211

117.0

Daily products

46,102

107.9

Other

14,641

109.3

Subtotal

309,854

111.3

1,539

68.0

Paid assisted living facilities

520

99.5

Adult day care services

1,088

106.4

Subtotal

1,608

104.0

Revenue from contracts with customers

313,002

110.9

Other revenue (Notes)

117

139.4

Total

313,119

110.9

Drug Stores
Medical and health productsSupermarkets
Nursing Care

(Note) Other revenue includes rent income based on the Accounting Standard for Lease Transactions (ASBJ Statement No. 13).
(ii) Sales results by region
Sales results by region during the first nine months of the fiscal year ending May 31, 2024 were as follows:
3Q of FY2022(From June 1, 2022 toFebruary 28, 2023)
Amount(millions of yen)

3Q of FY2023(From June 1, 2023 to
February 29, 2024)

Share (%)

Amount(millions of yen)

Share (%)

Kanagawa

175,264

62.1

191,945

61.3

Tokyo

40,98514.5

44,409

14.2

Shizuoka

31,02711.0

34,194

10.9

Chiba

20,6897.3

26,657

8.5

Other

14,398

5.1

15,912

5.1

Total

282,365

100.0

313,119

100.0

―9―

(2) Purchase results
Purchase results by product division during the first nine months of the fiscal year ending May 31, 2024 were as follows:
3Q of FY2023(From June 1, 2023 to
February 29, 2024)
Product division

Amount (millions of yen)

YoY change (%)

49,211108.8

OTC26,250

98.6

Prescription drug stores

22,960123.3

Cosmetics

22,015105.1

Food products

113,472

118.0

Daily products

32,954

109.8

Other

11,441

109.3

Subtotal

229,095

113.0

1,147

67.6

Paid assisted living facilities――

Adult day care services――

Subtotal――

230,243

112.6

―

―

230,243

112.6

Drug Stores
Medical and health productsSupermarkets
Nursing Care

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