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 28, 2023
(Japanese GAAP)

April 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 filing date of Securities Report: April 14, 2023
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, 2023 (June 1, 2022 to February 28, 2023)(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

Nine months ended
282,365
8.3
14,021
5.9
14,366
February 28, 2023
Nine months ended
260,636
3.3
13,240–8.2
13,606
February 28, 2022
(Note) Comprehensive income: Nine months ended February 28, 2023: ¥9,766 million (5.8%)
Nine months ended February 28, 2022: ¥9,234 million (–8.3%)
Earnings per share
Nine months ended
February 28, 2023
Nine months ended
February 28, 2022%

Millions of yen%

5.6

9,734

5.5

–7.8

9,227

–7.9

Diluted earnings per share

Yen

Yen

153.98－145.95－(2) Consolidated Financial Position
Total assets

Total net assets

Millions of yen

Equity ratio

Millions of yen

As of February 28, 2023
181,930
As of May 31, 2022
176,910(Reference) Net assets: As of February 28, 2023: ¥113,055 million
As of May 31, 2022: ¥106,323 million%

113,055
106,323

62.1
60.1

2. Dividend Payments
Dividends per shareFirst quarter

Second quarter
Yen

Yen

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

Third quarter

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 toEarnings per
Ordinary profit
owners of parent
share

Operating profit

Millions of yen%

Millions of yen%

Yen

Full-year
376,800
7.4
18,9504.3
19,380(Note) Revisions to most recently announced financial results forecast: None%

Millions of yen%

3.8

12,7000.8200.89Notes(1) Significant changes of subsidiaries in nine months ended February 28, 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) Application of accounting treatments specific to preparation of quarterly consolidated financial statements: Yes(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(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:

Nine months ended
February 28, 2023
Nine months ended
February 28, 2023
Nine months ended
February 28, 2023

66,819,342 shares
3,600,857 shares
63,218,536 sharesFiscal year ended
May 31, 2022
Fiscal year ended
May 31, 2022
Nine months endedFebruary 28, 2022

66,819,342 shares
3,600,755 shares
63,218,596 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 ……………………………………… 32. 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…………………8
Changes to accounting policies …………………………………………………………………………………………8Changes in accounting estimates ……………………………………………………………………………………… 8Additional information………………………………………………………………………………………………… 83. 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, 2023, although there were steady moves toward normalization of
economic activities affected by COVID-19 in Japan, the economic future remained uncertain due to the rising cost of living brought
about by the prolonged war in Ukraine, rising raw material prices, fluctuations in the financial and capital markets, and other factors.
The business environment in the drug store industry remains harsh due to the entry of new competitors from other industries andan increase in consolidation and restructuring on top of new store openings by competitors and intensification of price competition.
Under these circumstances, the Group will promote comprehensive health care support for regional contribution in the domains ofdaily 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 food offerings,
promoting in-store prescription drug stores, and improving convenience and expertise in small trade areas. These efforts wereimplemented in order to address the need for one-stop shopping in which the necessities for daily life are available in one place andto provide a location for everyday consultations related to healthy living.
During the first nine months of the fiscal year ending May 31, 2023, there was increased demand amid the COVID-19 pandemic.
In addition, our EDLP measures, including those for daily necessities, were successful against a backdrop of the rising cost of living.
These factors pushed net sales higher than the same period of the previous year and the plan. In regard to expenses, we made efforts
to curb them by thoroughly implementing measures to save as much electricity as possible and optimizing person-hours at workplaces
despite the impact of soaring utility costs arising from rising crude oil prices and increased labor costs arising from the expanded
hiring of pharmacists and an increase in the minimum wage.
During the period, we opened 23 new drug stores. Meanwhile, we also closed two for which the contract expired. Moreover, weopened 42 new in-store prescription drug stores and closed one dedicated prescription 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 in orderto enhance the competitiveness of individual stores and create synergy with our drug store business. During the first nine months of
the fiscal year ending May 31, 2023, we converted one existing supermarket into a combination drug store/fresh produce store as in
the previous fiscal year and opened one 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 to live
safely and securely under the care of nursing staff as well as adult day care centers characterized by functional maintenance andimprovement training for muscle strength and other physical performance for those who want to live at home as long as possible. We
poured effort into customer service, which is one of the distinctive characteristics of our Group, in our paid assisted living facilities
and adult day care services to increase user satisfaction and improve occupancy rates. During this period, we closed two adult day
care centers from the standpoint of improving management efficiency.
Owing to the efforts above, as of February 28, 2023, the number of the Group’s drug stores came to 707, the number of dedicatedprescription drug stores to 36, and the number of in-store prescription drug stores to 316, for a total of 352 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 adult day 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, 2023 were as follows: Netsales came in at 282,365 million yen (up 8.3% year on year), operating profit was 14,021 million yen (up 5.9%), ordinary profit was
14,366 million yen (up 5.6%), and profit attributable to owners of parent was 9,734 million yen (up 5.5%).

―2―(2) Overview of Financial Position
Total assets as of February 28, 2023 were 181,930 million yen, up 5,019 million yen from the end of the previous fiscal year. The
main factors were a 315 million yen increase in merchandise and a 12,845 million yen increase in non-current assets as well as a 7,832
million yen decrease in cash and deposits.
Total liabilities as of February 28, 2023 were 68,875 million yen, down 1,712 million yen from the end of the previous fiscal year.
The main factors were a 2,449 million yen decrease in “Other” under current liabilities, and a 1,060 million yen decrease in accrued
income taxes.
Total net assets as of February 28, 2023

were 113,055 million yen, up 6,731 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 9,734 million yen in profit attributable toowners of 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 January 10, 2023.

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

3Q of FY2022(As of February 28, 2023)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

42,067
11,15834,234
11,685Merchandise
Other

35,6159,274

35,9308,438

Total current assets

98,11590,28923,16625,199Land
Other, net

17,196
4,407

24,572
4,570

Total property, plant and equipment44,770

54,341

593

503

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

Intangible fixed assets
Goodwill
Other

918

943

1,511

1,446

Long-term loans receivable
Leasehold and guarantee deposits

9,868
11,251

9,828
11,472

Other
Allowance for doubtful accounts

11,436(43)

14,593(42)

Total investments and other assets

32,51335,852

78,79591,641

176,910

181,930

44,2283,070

44,343
2,009

357

1,664

145

108

164
4

172
95

Other

14,628

12,178

Total current liabilities

62,59860,573Net defined benefit liability
Asset retirement obligations

3,150
3,417

3,426
3,455

Provision for loss on subleasing
Other37
1,383

32
1,387

Total non-current liabilities

7,988

8,301

70,587

68,875

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)

3Q of FY2022(As of February 28, 2023)

Net assets
Equity capital
Share capital
Capital surplus

1,000934

1,000934

Retained earnings
Treasury shares

108,850(4,393)

115,550(4,393)

Total shareholders’ equity

106,391

113,0912333(91)

(69)

(68)

(36)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets

106,323

113,055

Liabilities and net assets

176,910181,930―5―(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
First nine months of the fiscal year ending May 31, 2023

Net sales
Cost of sales

3Q of FY2021(From June 1, 2021
to February 28, 2022)
260,636
190,017(Millions of yen)
3Q of FY2022(From June 1, 2022
to February 28, 2023)
282,365
205,684

Gross profit

70,61976,681

Provision for point card certificates
Salaries and allowances155
24,013

172
25,449Provision for bonuses
Provision for directors’ bonuses

1,482
103

1,601
104

Retirement benefit expenses
Depreciation and amortization

334
2,794

615
3,013

Land/office rent
Other

11,934
16,56012,413
19,289Total selling, general and administrative expenses

57,37862,66013,24014,021

Interest income
Dividend income

69
066
1

Gain on receipt of donated non-current assets
Rent income

35229

25244

Other

162

163

Total non-operating income

498

501

0127

2124

Selling, general and administrative expenses

Operating profit
Non-operating profit

Non-operating expenses
Compensation expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary profit
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on store closings
Loss on tax purpose reduction entry of non-current
assetsTotal extraordinary losses

429

132

156

13,606

14,366

－

9－

93

10－

3－

93

22

Profit before income taxes

13,602

14,352

Income taxes

4,375

4,618

Profit

9,227

9,734

Profit attributable to non-controlling interests
Profit attributable to owners of parent―6―－－

9,227

9,734

Consolidated Statement of Comprehensive Income
First nine months of the fiscal year ending May 31, 2023

ProfitOther comprehensive income

3Q of FY2021(From June 1, 2021
to February 28, 2022)
9,227(Millions of yen)
3Q of FY2022(From June 1, 2022
to February 28, 2023)
9,734

(1)
8922

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

732

9,234

9,766

9,234

9,766

－－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
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 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
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 nine months of the fiscal year ending May 31, 2023 were as follows:
3Q of FY2022(From June 1, 2022
to February 28, 2023)
Product division

Amount(millions of yen)

YoY change (%)

Drug Stores
Medical and health products

77,971112.1

OTC

46,235

108.1

Prescription drug stores

31,735

118.3

Cosmetics

33,121

105.7

Food products

111,264

110.1

Daily products

42,723

104.0

Other

13,391

106.2

Subtotal

278,471

108.9

2,263

68.8

Paid assisted living facilities

522

92.5

Adult day care services

1,023

100.7

Subtotal

1,545

97.7

Revenue from contracts with customers

282,281108.3

Other revenue (Notes)

84―Total

282,365108.3

Supermarkets
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, 2023 were as follows:
3Q of FY2021(From June 1, 2021
to February 28, 2022)
Amount(millions of yen)

3Q of FY2022(From June 1, 2022
to February 28, 2023)

Share (%)

Amount(millions of yen)

Share (%)

Kanagawa

162,370

62.3

175,264

62.1

Tokyo

37,11014.2

40,985

14.5Shizuoka

29,43011.3

31,027

11.0

Chiba

18,377

7.1

20,6897.3

Other

13,347

5.1

14,398

5.1

Total

260,636100.0

282,365

100.0

―9―

(2) Purchase results
Purchase results by product division during the first nine months of the fiscal year ending May 31, 2023 were as follows:
3Q of FY2022(From June 1, 2022
to February 28, 2023)
Product division

Amount(millions of yen)

YoY change (%)

Drug Stores
Medical and health products

45,246109.2

OTC

26,623106.5

Prescription drug stores

18,623113.3

Cosmetics

20,938106.2

Food products

96,141

110.9

Daily products

30,014

103.3

Other

10,465

108.1

Subtotal

202,806

108.7

1,698

68.1

Paid assisted living facilities――

Adult day care services――

Subtotal――

204,504

108.2

―

―

204,504

108.2

Supermarkets
Nursing Care

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