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 the Fiscal Year Ended May 31, 2023
(Japanese GAAP)
July 10, 2023
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 date of the Ordinary General Meeting of Shareholders: Scheduled date of start of dividend payment:
August 25, 2023
August 28, 2023
Scheduled filing date of Securities Report: August 28, 2023
Supplementary materials for the financial results: Yes
Financial results briefing sessions: Yes (For securities analysts and institutional investors)(Figures are rounded down to the nearest million yen)

1. Consolidated Results for Fiscal Year Ended May 31, 2023 (June 1, 2022 to May 31, 2023)(1) Consolidated Operating Results(Figures in percentages denote the year-on-year change)
Net sales

Operating profit

Millions of yen%

Millions of yen%

Millions of yen

Fiscal year ended
380,963
8.6
18,912
4.1
19,428
May 31, 2023
Fiscal year ended
350,744
3.6
18,176–2.4
18,665
May 31, 2022
(Note) Comprehensive income: Fiscal year ended May 31, 2023: ¥13,121 million (4.6%)
Fiscal year ended May 31, 2022: ¥12,544 million (0.2%)
Earnings per share

Diluted earnings per
share

Yen

Yen

Profit attributable toowners of parent

Ordinary profit

Return on equity

Fiscal year ended
204.46－
May 31, 2023
Fiscal year ended
199.24－
May 31, 2022
(Reference) Share of profit of entities accounted for using equity method:
Fiscal year ended May 31, 2023: ¥－ million
Fiscal year ended May 31, 2022: ¥－ million%

Millions of yen%

4.1

12,925

2.6–2.1

12,595

1.8

Return on assets

Operating margin

%

%

%

11.6

10.4

5.0

12.4

11.0

5.2

(2) Consolidated Financial Position
Total assets

Total net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen

As of May 31, 2023
194,941
As of May 31, 2022
176,910(Reference) Net assets: As of May 31, 2023: ¥116,409 million
As of May 31, 2022: ¥106,323 million

116,409106,323

%

Yen

59.7
60.1

1,841.39
1,681.84(3) Consolidated Cash FlowsNet cash provided byoperating activities
Fiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2022

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

18,985(20,491)(3,034)

37,126

16,101(10,808)(2,908)41,667

2. Dividend Payments
Total
dividends
paid(annual)Dividends per shareFirst quarter

Fiscal year ended
May 31, 2022
Fiscal year ended
May 31, 2023
Fiscal year ending
May 31, 2024
(forecast)Year-end

Second quarter Third quarter

AnnualDividend
Dividend on
payout ratio
equity ratio(consolidated) (consolidated)

Yen

Yen

Yen

Yen

%

%

－

23.00

－

23.00

46.00

Yen Millions of yen

2,908

23.1

2.9

－

25.00

－

27.00

52.00

3,287

25.4

3.0

－

27.00

－

27.00

54.00

26.3

3. Consolidated Financial Forecast (From June 1, 2023 to May 31, 2024)
Net sales(% indicates changes from the previous corresponding period.)
Profit attributable toEarnings per
Ordinary profit
owners of parent
share

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Six months ending
November 30, 2023

197,460

5.4

8,440

–8.6

8,720

–7.7

5,930

–7.5

93.80

Full-year

404,100

6.1

19,2401.7

19,8001.9

13,0000.6

205.64Notes(1) Significant changes of subsidiaries in fiscal year ended May 31, 2023 (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))(2) 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(3) Issued shares (common shares)
Fiscal year ended
Fiscal year ended(i) Issued shares (including treasury shares) at
66,819,342 shares
May 31, 2023
May 31, 2022
period-end:
Fiscal year ended(ii) Treasury shares at period-end:

May 31, 2023(iii) Average issued shares during period:

Fiscal year ended
May 31, 2023

3,600,857 shares
63,218,523 sharesFiscal year ended
May 31, 2022
Fiscal year ended
May 31, 2022

66,819,342 shares
3,600,755 shares
63,218,593 shares(Reference) Overview of Non-Consolidated Results
1. Non-Consolidated Results for Fiscal Year Ended May 31, 2023 (June 1, 2022 to May 31, 2023)(Figures in percentages denote the year-on-year change)(1) Non-Consolidated Operating Results
Net sales
Fiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2022

Operating profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

7,890

2.3

7,362

1.8

7,368

2.6

6,840

2.7

7,711

–2.6

7,232

–1.5

7,185

–2.2

6,660

–2.2

Earnings per share
Fiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2022

Ordinary profit

Diluted earnings per share
Yen

Yen

108.21－105.35－

(2) Non-Consolidated Financial Position
Total assets

Total net assets

Millions of yen

As of May 31, 2023
As of May 31, 2022
(Reference) Net assets:

53,65549,845
As of May 31, 2023: ¥53,509 million
As of May 31, 2022:¥49,703 million

Equity ratio

Net assets per share

Millions of yen%

Yen

53,50949,70399.7
99.7

846.42786.21This financial summary is not subject to audits by certified public accountants or audit firms.
Cautionary statement regarding business results forecasts and special notes
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“1. Operating Results (4) Future Outlook” on page 3 of the supplementary material for the underlying assumptions and proper use of theforecasts.

Contents
1. Operating Results ........................................................................................................................................ ................................ 2(1) Operating Results for the Fiscal Year under Review ............................................................................................................. 2(2) Financial Position ........................................................................................................................................................... ........ 3(3) Cash Flows ......................................................................................................... .................................................................... 3(4) Future Outlook ............................................................................................................................. .......................................... 3
2. Basic Concept of Selecting Accounting Standards ....................................................................................................................... 4
3. Consolidated Financial Statements and Notes .............................................................................................................................5(1) Consolidated Balance Sheet ............................................................................................................................. ...................... 5(2) Consolidated Statements of Income and Comprehensive Income ......................................................................................... 7(3) Consolidated Statements of Changes in Equity .................................................................................................................... 10(4) Consolidated Statements of Cash Flows ............................................................................................................................. .. 12(5) Notes to Consolidated Financial Statements ........................................................................................................................ 13
Going concern assumption ............................................................................................................................. ....................... 13
Changes to accounting policies .............................................................................................................................................. 13
Changes to presentation ............................................................................................................................. ............................ 13
Segment information ............................................................................................................................. ................................ 13
Per share data ............................................................................................................................. ............................................ 13
Significant subsequent events ................................................................................................................................................ 13
4. Other ............................................................................................................................. ............................................................. 14(1) Changes in Officers ................................................................................................................................. ............................. 14(2) Other ................................................................................................................................................... ................................. 14―1―

1. Operating Results(1) Operating Results for the Fiscal Year under Review
During the fiscal year ended May 31, 2023, although the impact of the COVID-19 pandemic continued to be felt, Japan's economy
showed signs of normalization of economic activities thanks to an easing of restrictions on movement and border control
measures. However, the economic outlook remained uncertain due to the rising cost of living brought about by soaring raw
material and energy prices.
In the drug store industry, while there are signs of a recovery in inbound demand thanks to the easing of restrictions on
movements, the business environment remains harsh due to new store openings by competitors and intensification of pricecompetition, as well as an increase in the number of new competitors entering the market from other industries and greater
consolidation and restructuring. This is on top of less demand for products to contain the spread of the coronavirus and thegrowing need for households to save money owing to the rising cost of living.
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, while promoting everyday low prices (EDLP), we focused on enhancing our fresh and frozen foodofferings, promoting in-store prescription drug stores, and improving convenience and expertise in small trade areas. These efforts
were implemented in order to address the need for one-stop shopping in which the necessities for daily life are available in one
place and to provide a location for everyday consultations related to healthy living.
During the fiscal year ended May 31, 2023, net sales exceeded projections and those of the previous year as a result of thesuccess of EDLP measures, including for daily necessities, in addition to demand for products to limit the spread of thecoronavirus. In the prescriptions division, despite the impact of medical service fee revisions, the number of prescriptions filled
remained steady as a result of efforts to promote in-store prescription drug stores. In terms of expenses, although utility costs
increased significantly as a result of soaring energy prices, they were kept within projections by thoroughly implementing
measures to save as much electricity as possible and optimizing person-hours at workplaces.
During the period, we opened 34 new drug stores. Meanwhile, we also closed three for which the contract expired. While we
opened 59 new in-store prescription drug stores and one new dedicated prescription drug store, we closed one dedicatedprescription drug store for which the contract expired.

Supermarkets
We are gradually renovating and converting existing Yuri Store supermarkets into combination drug store/fresh produce stores inorder to enhance the competitiveness of individual stores and create synergy with our drug store business. During the fiscal year
ended May 31, 2023, we converted one existing supermarket into a combination drug store/fresh produce store as in the previous
fiscal year and opened a new combination drug store/fresh produce store in Chigasaki City, Kanagawa. Meanwhile, we also
closed one supermarket from the standpoint of improving management efficiency.

Nursing Care
As society ages, we are operating paid assisted living facilities characterized by delicious meals for elderly people who want tolive safely and securely under the care of nursing staff as well as half-day adult care centers characterized by training to improveand maintain bodily functions such as muscle strength for those who want to live at home as long as possible. 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. During this period, we closed two adultday care centers from the standpoint of improving management efficiency.
Owing to the efforts above, as of May 31, 2023, the number of the Group’s drug stores came to 717, the number of dedicatedprescription drug stores to 36, and the number of in-store prescription drug stores to 334, for a total of 370 stores. The Group also
has two supermarkets and three combination drug store/fresh produce stores in the supermarket business as well as two paid
assisted living facilities and 37 half-day adult care centers in the nursing care business.

―2―

As a result, the financial results for the fiscal year under review were as follows: Net sales came in at 380,963 million yen (up8.6% year on year), operating profit was 18,912 million yen (up 4.1%), ordinary profit was 19,428 million yen (up 4.1%), andprofit attributable to owners of parent was 12,925 million yen (up 2.6%).

(2) Financial Position
Total assets were 194,941 million yen, up 18,030 million yen from the end of the previous fiscal year. The main factors were an
increase of 2,154 million yen in accounts receivable, 2,881 million yen in merchandise, and 16,514 million yen in non-current
assets due to an increase in new and soon to be opened stores, and a decrease of 4,541 million yen in cash and deposits.
Total liabilities were 78,532 million yen, up 7,944 million yen from the end of the previous fiscal year. The main factors werean increase of 6,256 million yen in accounts payable, 316 million yen in income taxes payable, 159 million yen in retirement
benefit liability, and 161 million yen in long-term asset retirement obligations.
Net assets were 116,409 million yen, up 10,086 million yen from the end of the previous fiscal year. The main factors were a
3,034 million yen decrease in dividends paid and recording of 12,925 million yen in profit attributable to owners of parent.

(3) Cash Flows
Cash and cash equivalents at the end of the fiscal year under review was 37,126 million yen, down 4,541 million yen from theend of the previous fiscal year.
Cash flows for the fiscal year ended May 31, 2023 were as follows:
Cash flows from operating activities
Net cash provided by operating activities amounted to 18,985 million yen, up 2,884 million yen year on year. The main factorsof the increase were profit before income taxes of 18,661 million yen, depreciation of 4,351 million yen, and income tax refundsof 798 million yen, which offset cash outflows such as an increase in trade receivables of 2,154 million yen, an increase ininventories of 2,878 million yen, and income taxes paid of 6,684 million yen.
Cash flows from investing activities
Net cash used in investing activities amounted to 20,491 million yen, up 9,683 million yen year on year. This was mainly due to15,959 million yen of purchase of property, plant and equipment associated with the store openings, 559 million yen of loan
advances, and 4,426 million yen for store openings in progress.
Cash flows from financing activities
Net cash used in financing activities amounted to 3,034 million yen, up 126 million yen year on year. This is the result of dividends
paid of 3,034 million yen.
Capital resources and liquidity of funds
Regarding the Group's capital resources and liquidity of funds, cash obtained mainly from operating activities are used for capital
investment for the opening of new stores.

(4) Future Outlook
In the next fiscal year, Japan's economy is expected to recover in line with the reclassification of COVID-19 as a Class 5 disease,but the outlook still remains uncertain owing to soaring raw material and energy prices and a fall in consumer sentiment due tothe rise in the cost of living.
The harsh business environment in the drug store industry is expected to continue as competition further intensifies acrossindustries and industry reorganization moves heat up, as well as with the risk of downward pressure due to revisions to medical
fees and drug prices.
Under these circumstances, the Group will continue to open stores with a focus on in-store prescription drug stores to achieve
the medium-term management plan, and will continue to build market share in local areas by forming a strong and dominantposition rooted in comprehensive health care support in the community.

―3―

In the drug store division, in response to changes in consumer behavior and growing need for households to save money postCOVID, we will not only continue to promote EDLP measures and work on product proposals and lineups that include private
brands, but we will also make every effort to continue to improve convenience in small trade areas by expanding the lineup of
fresh foods and frozen foods with our aim for quick, one-stop shopping. In the prescriptions division, in addition to promoting
in-store prescription drug stores, we will work to develop family pharmacists who are trusted by patients, further strengtheninterpersonal work, and expand demand for home-based services, aiming to become the stores and pharmacies of choice forcustomers and patients.
Based on the above, we forecast the financial results for the fiscal year ending May 31, 2024 as follows:
Consolidated Financial Forecast (From June 1, 2023 to May 31, 2024)
Net sales
Full-year

Operating profit

Ordinary profit

Profit attributable toowners of parent

Millions of yen

Millions of yen

Millions of yen

Millions of yen

404,100

19,24019,80013,000(Reference) Forecast earnings per share: 205.64 yen, average number of shares during the forecast period: 63,218,485 shares(Note) The above forecasts, which include risks and uncertainties, are made by the Company based on information available
at the time. Actual results may differ from these forecasts due to various factors.

2. Basic Concept of Selecting Accounting Standards
The Group presently intends to prepare consolidated financial statements based on Generally Accepted Accounting Principles inJapan (Japanese GAAP), taking into account the comparability of consolidated financial statements over the period and thecomparability between companies.
Regarding the application of International Financial Reporting Standards (IFRS), we will take appropriate measures inconsideration of domestic and overseas circumstances.

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

FY2022(As of May 31, 2023)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

42,067
11,15837,526
13,312Merchandise
Supplies

35,61559

38,497
55

Other

9,214

10,239Total current assets

98,115

99,631

43,328(20,162)

49,209(21,447)

23,166

27,762

17,19625,00625,211
27,119(20,598)(22,261)

4,407

4,858

44,77057,832

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill

593

473

918

1,055

1,511

1,529

Investment securities
Long-term loans receivable

161
9,868

183
9,654

Deferred tax assets
Leasehold and guarantee deposits

6,024
11,251

6,394
11,576

Other
Allowance for doubtful accounts

5,251
(43)

8,180
(40)

Total investments and other assets

32,51335,94878,79595,310176,910

194,941

Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets―5―

(Millions of yen)
FY2021(As of May 31, 2022)

FY2022(As of May 31, 2023)

Liabilities
Current liabilities
Accounts payable - trade
Contract liabilities

44,2283,580

50,485
3,580

Accrued income taxes
Accrued bonuses
Provision for bonuses for directors (and otherofficers)
Provision for point card certificates

3,070
357

3,386
378

145

145

164

171

4

89
8

Asset retirement obligations
Provision for loss on store closings
Other－
11,048

11,907

Total current liabilities

62,59870,152

Net defined benefit liability
Asset retirement obligations

3,150
3,417

3,310
3,579

Provision for loss on subleasing
Other

37
1,383

30
1,459

Non-current liabilities

Total non-current liabilities
Total liabilities

7,988

8,379

70,58778,532

1,000

1,000

934
108,850934
118,741

Net assets
Equity capital
Share capital
Capital surplus
Retained earnings
Treasury shares(4,393)(4,393)

Total shareholders’ equity

106,391

116,282

23

39

(91)

87

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

(68)

126

Total net assets

Total accumulated other comprehensive income

106,323

116,409

Liabilities and net assets

176,910

194,941―6―

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales

FY2021(From June 1, 2021
to May 31, 2022)
350,744
255,165(Millions of yen)
FY2022(From June 1, 2022
to May 31, 2023)
380,963
277,975

Gross profit

95,578102,987164
32,361

171
34,243

Provision for bonuses
Provision for directors’ bonuses

328
135

349
140

Retirement benefit expenses
Depreciation and amortization

480
3,822

826
4,195

Land/office rent
Other

15,984
24,125

16,64727,502

Total selling, general and administrative expenses

77,402

84,075

18,176

18,912

Interest income
Dividend income

92
1

89
1

Gain on receipt of donated non-current assets
Rent income

45
317

34
328

Subsidy income
Other

50
160

89
173

Total non-operating income

668

716

1

2

169

166
20

Selling, general and administrative expenses
Provision for point card certificates
Salaries and allowances

Operating profit
Non-operating profit

Non-operating expenses
Compensation expenses
Rental expenses
Loss on abandonment of goods
Other

－
8

Total non-operating expenses

178

200

18,665

19,4285

9

5

9

Ordinary profit
Extraordinary profit
Subsidy income
Total extraordinary income
Extraordinary losses
Impairment losses

11

623

744

Provision for loss on store closings
Loss on tax purpose reduction entry of non-current
assets
Other

－

8

5

9

3

13

Total extraordinary losses

632

776

―7―

FY2021(From June 1, 2021
to May 31, 2022)
18,038(Millions of yen)
FY2022(From June 1, 2022
to May 31, 2023)
18,661

Income taxes - current

5,868

6,116

Income taxes - deferred

(425)

(381)

Profit before income taxes

Total income taxes

5,442

5,735

Profit12,595

12,925

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

―8―

－

－

12,595

12,925

Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income

FY2021(From June 1, 2021
to May 31, 2022)
12,595(Millions of yen)
FY2022(From June 1, 2022
to May 31, 2023)
12,925

0
(51)

15
179

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

(51)

195

12,544

13,121

12,544

13,121－－

Comprehensive income attributable to:
Owners of parent
Non-controlling interests―9―(3) Consolidated Statements of Changes in Equity
FY2021 (From June 1, 2021 to May 31, 2022)(Millions of yen)
Equity capital
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

1,000

Retained earnings

934

99,114

Total shareholders’equityTreasury shares(4,393)

48
1,000

934

99,16296,65548(4,393)96,704

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(2,908)(2,908)12,595

12,595
(0)

－
－

－

9,687

(0)

9,687

1,000

934

108,850(4,393)

106,391

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income

23

(40)

(17)

Total net assets

96,638
48

23

(40)

(17)

96,686

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(0)(2,908)12,595
(0)
0

(51)

(51)

(51)

0

(51)

(51)

9,636

23

(91)

(68)

106,323―10―

FY2022 (From June 1, 2022 to May 31, 2023)(Millions of yen)
Equity capital
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

1,000

Retained earnings

934

108,850

Total shareholders’equityTreasury shares(4,393)

106,391
－

1,000

934

108,850(4,393)

106,391

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(3,034)(3,034)

12,925

12,925
(0)

(0)

－

－

9,891

(0)

9,891

1,000

934

118,741(4,393)

116,282

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income

23

(91)

(68)

Total net assets

106,323
－

23

(91)

(68)

106,323

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(3,034)
12,925
(0)
15

179

195

195

15

179

195

10,086

39

87

126

116,409―11―

(4) Consolidated Statements of Cash Flows(Millions of yen)
FY2022(From June 1, 2022
to May 31, 2023)

FY2021(From June 1, 2021
to May 31, 2022)
Cash flows from operating activities
Profit before income taxes

18,03818,661

Depreciation and amortization
Impairment losses

3,983
623

4,351
744

(2)
29

(2)
21

16

0

38

6

5

(6)

－

8

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for loss on subleasing
Increase (decrease) in provision for loss on store
closings
Increase (decrease) in retirement benefit liability

359

418

Interest and dividend income
Decrease (increase) in trade receivables(93)(1,476)(90)(2,154)

Decrease (increase) in inventories
Increase (decrease) in trade payables(2,175)2,529(2,878)
6,256

288
(26)

277
(746)

22,137

24,867

Increase (decrease) in advances received
Other
SubtotalInterest and dividends received

3

3

Income taxes paid
Income taxes refund(6,963)923(6,684)798

Net cash provided by operating activities

16,101

18,985

Cash flows from investing activities
Purchase of property, plant and equipment(7,473)(15,959)

(205)
(762)

(346)
(559)

1,043

1,022

0
(75)
(174)

－
(117)
(149)

109

133

(2,714)(183)(4,426)
(88)

(371)

(1)

(10,808)(20,491)(2,908)(3,034)Purchase of intangible assets
Long-term loan advances
Proceeds from collection of long-term loans
receivable
Proceeds from sale of investment securities
Purchase of long-term prepaid expenses
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments for store openings in progress
Payments into deposit money
Other
Net cash used in investing activities
Cash flows from financing activities
Dividends paid
Purchase of treasury shares

(0)

(0)

(2,908)(3,034)

Net increase (decrease) in cash and cash equivalents

2,384(4,541)

Cash and cash equivalents at beginning of period

39,282

41,667

Cash and cash equivalents at end of period

41,667

37,126

Net cash used in financing activities―12―(5) Notes to Consolidated Financial Statements
Going concern assumption
Not applicable
Changes to accounting policies
Not applicable
Changes to presentation
Subsidy income, which was included in the Other section of Non-operating Income in the previous fiscal year has been recorded
separately from this fiscal year owing to its increased quantitative significance. In order to reflect this change in how it is presented,
we have reorganized the consolidated financial statements for the previous fiscal year.
As a result, the 211 million yen shown in the Other section of Non-operating Income in the consolidated statement of income forthe previous fiscal year has been reclassified as 50 million yen for Subsidy Income and 160 million yen for Other.
Segment information
Since the Group has a high proportion of drug store business which is considered to be of little importance as disclosed information,
segment information has been omitted.
Per share information
FY2021(From June 1, 2021
to May 31, 2022)

FY2022(From June 1, 2022
to May 31, 2023)

Net assets per share¥1,681,84

Net assets per share¥1,841,39

Earnings per share¥199,24

Earnings per share¥204,46(Notes) 1. Diluted earnings per share is not stated because there are no diluted shares.
2. The basis for calculating earnings per share is as follows:
FY2021(From June 1, 2021
to May 31, 2022)

FY2022(From June 1, 2022
to May 31, 2023)

Earnings per share
Profit attributable to owners of parent (millions of yen)

12,595

12,925

Amount not attributable to ordinary shareholders (millions of yen)――

Profit attributable to owners of parent related to common shares(millions of yen)

12,595

12,92563,218,593

63,218,523

Average issued shares during period

Significant subsequent events
Not applicable―13―4. Other(1) Changes in Officers
To be disclosed when details are concluded.

(2) Other
Purchases and Sales(i) Sales results by product division
FY2022(From June 1, 2022
to May 31, 2023)
Product division

Amount(millions of yen)

YoY change (%)

Drug Stores
Medical and health products

104,590

111.1

OTC

61,110106.6

Prescription drug stores

43,479118.1

Cosmetics

44,519105.8

Food products

151,719

111.2

Daily products

57,172

104.3

Other

17,999107.4

Subtotal

376,000

109.2

2,774

65.0

Paid assisted living facilities

689

93.0

Adult day care services

1,385

100.8

Subtotal

2,075

98.0

Revenue from contracts with customers

380,850

108.6

Other revenue (Notes)

113

96.4

Total

380,963

108.6

Supermarkets
Nursing Care

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

―14―

(ii) Sales results by region
Sales results by region for the fiscal year ended May 31, 2023 were as follows:
FY2021(From June 1, 2021
to May 31, 2022)
Amount(millions of yen)

FY2022(From June 1, 2022
to May 31, 2023)

Share (%)

Amount(millions of yen)

Share (%)

Kanagawa

218,54962.3

235,809

61.9

Tokyo

49,88514.2

55,224

14.5

Shizuoka

39,46011.3

41,903

11.0

Chiba

24,847

7.1

28,586

7.5

Other

18,0005.1

19,4395.1

Total

350,744100.0

380,963

100.0(iii) Purchase results
Purchase results by product division for the fiscal year ended May 31, 2023 were as follows:
FY2022(From June 1, 2022
to May 31, 2023)
Product division

Amount(millions of yen)

YoY change (%)

Drug Stores
Medical and health products

61,507110.3

OTC

35,779107.1

Prescription drug stores

25,727115.2

Cosmetics

28,552

106.8

Food products

131,156

111.9

Daily products

41,367

105.2

Other

14,201

109.3

Subtotal

276,785

109.8

2,080

64.2

Paid assisted living facilities――

Adult day care services――

Subtotal――

278,866

109.3

―

―

278,866

109.3

Supermarkets
Nursing Care

Purchases for revenue from contracts
with customers
Other purchases
Total―15―