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, 2024
(Japanese GAAP)
July 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 date of the Ordinary General Meeting of Shareholders:
Scheduled date of start of dividend payment:
August 23, 2024
August 26, 2024
Scheduled filing date of Securities Report: August 26, 2024
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, 2024 (June 1, 2023 to May 31, 2024)(1) Consolidated Operating Results(Figures in percentages denote the year-on-year change)
Net sales

Operating profit

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen

Fiscal year ended
422,330
10.9
20,2277.0
20,882
May 31, 2024
Fiscal year ended
380,963
8.6
18,912
4.1
19,428
May 31, 2023
(Note) Comprehensive income: Fiscal year ended May 31, 2024: ¥13,967 million (6.5%)
Fiscal year ended May 31, 2023: ¥13,121 million (4.6%)
Earnings per share

Diluted earnings per
share

Yen

Yen

Return on equity

Fiscal year ended
215.61215.61
May 31, 2024
Fiscal year ended
204.46－
May 31, 2023
(Reference) Share of profit of entities accounted for using equity method:
Fiscal year ended May 31, 2024: ¥－ million
Fiscal year ended May 31, 2023: ¥－ million%

Millions of yen%

7.5

13,691

5.9

4.1

12,925

2.6

Return on assets

Operating margin

%

%

%

11.1

10.2

4.8

11.6

10.4

5.0

(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, 2024
216,481
As of May 31, 2023
194,941(Reference) Net assets: As of May 31, 2024: ¥130,224 million
As of May 31, 2023: ¥116,409 million

130,243
116,409

%

Yen

60.2
59.7

2,027.07
1,841.39(3) Consolidated Cash FlowsNet cash provided byoperating activities
Fiscal year ended
May 31, 2024
Fiscal year ended
May 31, 2023

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

21,034(20,207)(140)

37,812

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

37,126

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

Fiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2024
Fiscal year ending
May 31, 2025
(forecast)Year-end

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

Yen

Yen

Yen

Yen

%

%

－

25.00

－

27.00

52.00

Yen Millions of yen

3,287

25.4

3.0

－

27.00

－

37.00

64.00

4,083

29.7

3.3

－

34.00

－

34.00

68.00

30.3

3. Consolidated Financial Forecast (From June 1, 2024 to May 31, 2025)
Net sales(Figures in percentages denote the year-on-year change)
Profit attributable to Earnings per
Ordinary profit
owners of parent
share

Operating profit

Millions of yen%

Millions of yen%

Millions of yen

227,300

9.6

10,7008.6

457,600

8.4

22,0008.8

Six months ending
November 30, 2024
Full-year% Millions of yen%

Yen

10,900

7.0

7,300

6.2

113.6322,4007.3

14,4005.2

224.15Notes(1) Significant changes of subsidiaries in fiscal year ended May 31, 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))(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)(i) Issued shares (including treasury shares) at
period-end:

Fiscal year ended
May 31, 2024
Fiscal year ended(ii) Treasury shares at period-end:

May 31, 2024(iii) Average issued shares during period:

Fiscal year ended
May 31, 2024

66,819,342 shares
2,576,458 shares
63,500,165 sharesFiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2023

66,819,342 shares
3,600,857 shares
63,218,523 shares

Note on issued shares(Reference) Overview of Non-Consolidated Results
1. Non-Consolidated Results for Fiscal Year Ended May 31, 2024 (June 1, 2023 to May 31, 2024)(Figures in percentages denote the year-on-year change)(1) Non-Consolidated Operating Results
Net sales
Fiscal year ended
May 31, 2024
Fiscal year ended
May 31, 2023

Operating profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

8,195

3.9

7,709

4.7

7,794

5.8

7,232

5.7

7,890

2.3

7,362

1.8

7,368

2.6

6,840

2.7

Earnings per share
Fiscal year ended
May 31, 2024
Fiscal year ended
May 31, 2023

Profit attributable toowners of parent

Ordinary profit

Diluted earnings per share
Yen

Yen

113.90113.90108.21－

(2) Non-Consolidated Financial Position
Total assets

Total net assets

Millions of yen

As of May 31, 2024
60,760
As of May 31, 2023
53,655(Reference) Net assets: As of May 31, 2024: ¥60,589 million
As of May 31, 2023: ¥53,509 million

Equity ratio

Net assets per share

Millions of yen%

Yen

60,60753,50999.7
99.7

943.13846.42This 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. Referto “1. Operating Results (4) Future Outlook” on page 3 of the supplementary material for the underlying assumptions and proper useof the forecasts.

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
Consolidated Statement of Income ............................................................................................................................... 7
Consolidated Statement of Comprehensive Income ...................................................................................................... 9(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
Segment information ................................................................................................................................................... 13
Per share informtion .................................................................................................................................................... 13
Significant subsequent events ..................................................................................................................................... 14
4. Other ............................................................................................................................................................................... 15(1) Changes in Officers ................................................................................................................................................... 15(2) Other.......................................................................................................................................................................... 15－1－

1. Operating Results(1) Operating Results for the Fiscal Year under Review
During the fiscal year ended May 31, 2024, the Japanese economy continued its return to normal in line with the reclassificationof 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 recover for cosmetics due to a rebound in footfall and more opportunities to goout, 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. There was a drop in sales for products to contain the spread of the coronavirus,
including masks and antigen test kits, households increasingly sought to save money owing to the rising cost of living, whilerevised medical fees and drug prices resulted in lower prescription unit prices. These impacts were further compounded bycompetitors from other industries opening new stores, intensifying price competition, 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.
During the fiscal year ended May 31, 2024, while there was a fall in demand for products to contain the spread of thecoronavirus, such as masks and antigen test kits, the recovery in demand for common cold medicines and cosmetics, as well as
our successful efforts on competitive pricing, particularly for food products, led to a significant increase in sales and customer
numbers at existing stores. In the prescriptions division, despite the impact of price reductions due to revisions in medical service
fees and drug prices, the number of prescriptions filled remained steady due to factors such as an increase in the number of instore prescription drug stores, a rise in prescriptions for acute medical conditions due to the spread of colds and influenza, and arecovery from the reluctance to seek medical attention following the reclassification of COVID-19 as a Class 5 disease. As aresult of the above factors, while sales and customer numbers remained strong, the gross profit margin was lower than the previous
year. However, due to securing gross profits through increased sales and controlling SG&A expenses, including personnel costs,
we were able to increase both revenue and profit.
During the period, we opened 43 new drug stores. On the other hand, we closed eight stores, one for renovation works, fivedue to expiration of contracts, and two from the standpoint of improving management efficiency. New prescription drug store
openings consisted of 47 new in-store prescription drug stores and one dedicated prescription drug store in a medical mall.

Nursing CareRegarding the nursing care business, amid an aging population, we operate two paid assisted living facilities characterized bydelicious meals for elderly people who want to live safely and securely under the care of nursing staff, as well as 37 half-day
rehabilitative adult care centers for those who want to continue living at home. For our paid assisted living facilities and adultday care services we have put every effort into customer service, which is one of the distinctive characteristics of our Group, toincrease user satisfaction and improve occupancy rates.
Owing to the efforts above, the number of Group stores as of May 31, 2024, was as follows: 752 drug stores, two supermarkets,and four combination drug store/fresh produce stores. The total number of prescription drug stores was 418, consisting of 38
dedicated prescription drug stores and 380 in-store prescription drug stores. The Group also has two paid assisted living facilitiesand 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 422,330 million yen (up10.9% year on year), operating profit was 20,227 million yen (up 7.0%), ordinary profit was 20,882 million yen (up 7.5%), andprofit attributable to owners of parent was 13,691 million yen (up 5.9%).

(2) Financial Position
Total assets were 216,481 million yen, up 21,540 million yen from the end of the previous fiscal year. The main factors were an
increase of 2,118 million yen in accounts receivable, 3,518 million yen in merchandise, and 13,983 million yen in non-current
assets due to an increase in new and soon to be opened stores.
Total liabilities were 86,238 million yen, up 7,706 million yen from the end of the previous fiscal year. The main factors werean increase of 5,872 million yen in accounts payable, 57 million yen in income taxes payable, and 346 million yen in long-term
asset retirement obligations.
Net assets were 130,243 million yen, up 13,833 million yen from the end of the previous fiscal year. The main factors were a3,413 million yen decrease due to dividends paid, an increase of 2,011 million yen in capital surplus due to exercise of shareoptions, a decrease of 1,249 million yen in treasury shares, and the recording of 13,691 million yen in profit attributable to ownersof parent.

(3) Cash Flows
Cash and cash equivalents at the end of the fiscal year under review was 37,812 million yen, up 686 million yen from the end of
the previous fiscal year.
Cash flows for the fiscal year ended May 31, 2024 were as follows:
Cash flows from operating activities
Net cash provided by operating activities amounted to 21,034 million yen, up 2,049 million yen year on year. The main factorsof the increase were profit before income taxes of 19,352 million yen, depreciation of 4,995 million yen, impairment losses of
1,284 million yen, and income tax refunds of 837 million yen, which offset cash outflows such as an increase in trade receivablesof 2,118 million yen, an increase in inventories of 3,578 million yen, and income taxes paid of 7,074 million yen.
Cash flows from investing activities
Net cash used in investing activities amounted to 20,207 million yen, down 284 million yen year on year. This was mainly due
to 15,772 million yen of purchase of property, plant and equipment associated with the store openings, 792 million yen of loan
advances, and 3,960 million yen for store openings in progress.
Cash flows from financing activities
Net cash used in financing activities amounted to 140 million yen, down 2,893 million yen year on year. This is the result ofdividends paid of 3,413 million yen and proceeds from disposal of treasury shares of 3,250 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, while the Japanese economy is expected to experience a gradual recovery, the outlook still remains
uncertain owing to soaring raw material and energy prices, and a fall in consumer sentiment resulting from a continued rise in
the cost of living and stagnant growth in real wages.
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－3－

the medium-term management plan, and will continue to build market share in local areas by forming a strong and dominantposition.
In the drug store division, while we aim to increase the number of customers and items purchased by continuing to offer
competitive pricing primarily for food products, in response to the growing need for households to save money, we will also
strengthen sales, particularly in the health and beauty sectors, and work on controlling our gross profit margin through thedevelopment and renewal of private branded products. In the prescriptions division, in addition to promoting in-store prescription
drug stores, we will work to strengthen our primary care functions through initiatives such as enhancing pharmacists’interpersonal skills, collaborating with nearby medical institutions, and establishing a system to handle electronic prescriptions,aiming to become the stores and pharmacies of choice for customers and patients. Additionally, we aim to maintain an ordinary
profit margin of 5.0% by rigorously implementing low-cost operations and striving to control expenses, including personnel costs.
Based on the above, we forecast the financial results for the fiscal year ending May 31, 2025 as follows:
Consolidated Financial Forecast (From June 1, 2024 to May 31, 2025)
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

457,600

22,00022,40014,400(Reference) Forecast earnings per share: 224.15 yen, average number of shares during the forecast period: 64,242,884 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)
FY2022(As of May 31, 2023)

FY2023(As of May 31, 2024)

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

38,212
15,431

Merchandise
Supplies

38,49755

42,015115

Other

10,23911,415

Total current assets

99,631

107,191

49,271(21,509)60,364(23,870)

27,76236,49325,211

27,274
3,019

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress－
27,119(22,261)

Other
Accumulated depreciation
Other, net

29,582(24,189)

4,858

5,392

57,832

72,180Goodwill
Other

473
1,055

372
770

Total intangible assets

1,529

1,142

Total property, plant and equipment
Intangible fixed assets

Investments and other assets
Investment securities

183

182

Long-term loans receivable
Deferred tax assets

9,654
6,394

10,024
6,878

Leasehold and guarantee deposits
Other

11,576
8,180

11,939
7,002

Allowance for doubtful accounts

(40)

(60)

Total investments and other assets

35,94835,967

95,310109,290

194,941

216,481

Total non-current assets
Total assets－5－

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

FY2023(As of May 31, 2024)

Liabilities
Current liabilities
Accounts payable—trade
Contract liabilities

50,4853,580

56,3573,600

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

3,386
378

3,444
387

145

157

171

160

89
8

6
36

Other

11,907

13,374

Total current liabilities

70,152

77,524

Net defined benefit liability
Asset retirement obligations

3,310
3,579

3,234
3,925

Provision for loss on subleasing
Other

30
1,459

24
1,529

Asset retirement obligations
Provision for loss on store closings

Non-current liabilities

Total non-current liabilities
Total liabilities

8,379

8,714

78,532

86,238

1,000

1,000

934
118,7412,945
129,019

Net assets
Equity capital
Share capital
Capital surplus
Retained earnings
Treasury shares(4,393)(3,144)

Total shareholders’ equity

116,282

129,821

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

39

39

Remeasurements of defined benefit plans

87

363

Total accumulated other comprehensive income

126

403

－

18

Total net assets

116,409130,243

Liabilities and net assets

194,941

216,481

Share options－6－

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

Net sales
Cost of sales

FY2022(From June 1, 2022
to May 31, 2023)
380,963
277,975(Millions of yen)
FY2023(From June 1, 2023
to May 31, 2024)
422,330
312,143

Gross profit

102,987

110,187

171
34,243160
36,131

Provision of allowance for doubtful accounts
Provision for bonuses

－
349

21
387

Provision for directors’ bonuses
Retirement benefit expenses

140
826

153
777

Depreciation and amortization
Land/office rent

4,195
16,647

4,847
17,385

Other

27,50230,095

Total selling, general and administrative expenses

84,07589,95918,912

20,227

89

85

Dividend income
Gain on receipt of donated non-current assets

1
34

1
30

Rent income
Subsidy income

328
89

364
166

Other

173

186

Total non-operating income

716

835

Provision of allowance for doubtful accounts
Compensation expenses

－
2

1
5

Rental expenses
Loss on abandonment of goods

166
20

163

Other

11

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

Operating profit
Non-operating profit
Interest income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary profit
Subsidy income

－
10

200

180

19,42820,882

9

73

Other

－

1

Total extraordinary income

9

74

－
744

26
1,284

8
－

36
165

9

73

13

18

776

1,604

Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Provision for loss on store closings
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current
assets
Other
Total extraordinary losses－7－

FY2022(From June 1, 2022
to May 31, 2023)
18,661(Millions of yen)
FY2023(From June 1, 2023
to May 31, 2024)
19,352

Income taxes—current

6,116

6,250

Income taxes—deferred

(381)

(588)

Profit before income taxes

Total income taxes

5,735

5,661

Profit12,925

13,691

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

－8－

－

－

12,925

13,691

Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income

FY2022(From June 1, 2022
to May 31, 2023)
12,925(Millions of yen)
FY2023(From June 1, 2023
to May 31, 2024)
13,691

15
179

0
275

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

195

276

13,121

13,967

13,121

13,967－－

Comprehensive income attributable to:
Owners of parent
Non-controlling interests－9－(3) Consolidated Statements of Changes in Equity
FY2022 (June 1, 2022 to May 31, 2023)(Millions of yen)
Equity capital
Share capital
Balance at beginning of
periodCapital surplus

1,000

Retained earnings

934

108,850

Total shareholders’equityTreasury shares(4,393)

106,391

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesExercise of shareoptions
Net 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
periodValuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income

23

(91)

(68)

Share options

Total net assets－

106,323

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesExercise of shareoptions
Net 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

－

116,409－10－

FY2023 (June 1, 2023 to May 31, 2024)(Millions of yen)
Equity capital
Share capital
Balance at beginning of
periodCapital surplus

1,000

Retained earnings

934

118,741

Total shareholders’equityTreasury shares(4,393)

116,282

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesExercise of shareoptions
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(3,413)(3,413)

13,691

13,691

2,011

(0)

(0)

1,249

3,261

－

2,011

10,277

1,249

13,538

1,000

2,945

129,019(3,144)

129,821

Accumulated other comprehensive income

Balance at beginning of
periodValuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income

39

87

126

Share options

Total net assets－

116,409

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesExercise of shareoptions
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(3,413)
13,691
(0)
3,261
0

275

276

18

295

0

275

276

18

13,833

39

363

403

18

130,243－11－

(4) Consolidated Statements of Cash Flows(Millions of yen)
FY2023(From June 1, 2023
to May 31, 2024)

FY2022(From June 1, 2022
to May 31, 2023)
Cash flows from operating activities
Profit before income taxes

18,661

19,352

Depreciation and amortization
Impairment losses

4,351
744

4,995
1,284

Increase (decrease) in allowance for doubtful accounts
Increase in provision for bonuses
Increase in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for loss on subleasing
Increase in provision for loss on store closings

(2)
21

19
8

0

12

6

(10)

(6)
8

(6)
36

Increase in retirement benefit liability
Interest and dividend income

418
(90)

322
(87)

Decrease in trade receivables
Decrease in inventories(2,154)(2,878)(2,118)(3,578)

Increase in trade payables
Increase in advances received

6,256
277

5,872
240

Other

(746)

924

Subtotal

24,86727,268

3

3

Income taxes paid
Income taxes refund(6,684)798(7,074)837

Net cash provided by operating activities

18,98521,034

Net cash used in investing activities
Purchase of property, plant and equipment(15,959)(15,772)

(346)
(559)

(45)
(792)

1,022

1,076

－
(117)
(149)

(338)
(233)

133

177

(4,426)(3,960)

(88)
(1)

(310)
(10)

(20,491)(20,207)(3,034)(3,413)

(0)

(0)
3,250

Interest and dividends received

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
Net cash used in financing activities
Dividends paid
Purchase of treasury shares
Proceeds from disposal of treasury shares

－

Other

2

－

22

(3,034)(140)

Net increase (decrease) in cash and cash equivalents(4,541)

686

Cash and cash equivalents at beginning of period

41,667

37,126

Cash and cash equivalents at end of period

37,12637,812

Net cash used in financing activities－12－(5) Notes to Consolidated Financial Statements
Going concern assumption
Not applicable
Changes to accounting policies
Not applicable
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
FY2022(From June 1, 2022
to May 31, 2023)

FY2023(From June 1, 2023
to May 31, 2024)

Net assets per share¥1,841.39¥2,027.07

Earnings per share¥204.46¥215.61－¥215.61

Diluted earnings per share
Notes:

1. Diluted earnings per share not stated for the previous fiscal year because there were no diluted shares.
2. The basis for calculating earnings per share is as follows:
FY2022(From June 1, 2022
to May 31, 2023)

FY2023(From June 1, 2023
to May 31, 2024)

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

12,925

13,691

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

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

12,925

13,691

63,218,523

63,500,165

Adjusted profit attributable to owners of parent (millions of yen)－－

Increase in number of common shares

－

1,638

(of which, share options)

(－)

(－)

Average number of common shares during period

Diluted earnings per share

Summary of dilutive shares that are not included in the calculationof diluted earnings per share because they do not have a dilutive
effect－13－－

Significant subsequent events(Acquisition and cancellation of second and third round share options (with provision for exercising price revision) through thirdparty allotment using treasury shares)
At a meeting of the Board of Directors held on June 3, 2024, CREATE SD HOLDINGS CO., LTD. resolved to acquire on June 18,2024, and cancel on June 30, 2024, all of the second and third share options (the “Share Options”) of the first through third rounds
issued on November 22, 2023 with EVO FUND as the allottee on the premise of appropriation of treasury shares.
1. Overview of the Share Options to be acquired and canceled(1) Name of share options

1. CREATE SD HOLDINGS CO., LTD. second share options
2. CREATE SD HOLDINGS CO., LTD. third share options(2) Number of share options to be acquired and canceled

1. 10,170
2. 12,000(3) Acquisition price and total amount

1. 770 yen per share option, total 7,000,000 yen
2. 635 yen per share option, total 7,000,000 yen
Total: 15,000,000 yen(4) Date of acquisition

June 18, 2024

(5) Date of cancellation

June 30, 2024

(6) Number of share options remaining after cancellation

1. 0
2. 0

2. Reasons for acquisition and cancellation of Share Options
As stated in the “Notice Concerning the Issuance of the 1st to 3rd Share Options through Third-Party Allotment Using Treasury Shares
and Conclusion of the Share Option Purchase Agreement (with Exercise Price Correction Clause)” dated November 6, 2023
(hereinafter referred to as the “Disclosure Dated November 6, 2023”), CREATE SD HOLDINGS issued the first round of share options
and the Share Options through a third-party allotment to allocate treasury shares on November 22, 2023, for the purpose of raisingfunds for investment in new stores and investment in logistics facilities. The allottee, EVO FUND (Cayman Islands, Representatives:
Michael Lerch and Richard Chisholm), exercised the share options with the utmost care based on the terms of the agreement with
CREATE SD HOLDINGS. As a result, the exercise of share options went more smoothly than expected, raising a total amount of
4,449 million yen through the exercise of 13,838 options (1,383,800 shares).
As stated in the Disclosure Dated November 6, 2023, CREATE SD HOLDINGS aims to achieve sustainable growth by further
expanding its business scale and improving performance. Although there is no change in its funding requirements, CREATE SDHOLDINGS has judged that these requirements have been met for the time being and has decided to acquire and cancel all remaining
Share Options in accordance with the terms of issue.
Going forward, we aim to achieve optimal funding that takes into account the cost of shareholder’s equity for any new funding
requirements.
3. Future Outlook
The impact of the acquisition and cancellation of the Share Options on the Company’s financial results is minimal.

－14－4. Other(1) Changes in Officers
To be disclosed when details are concluded.

(2) Other
Purchases and Sales(i) Sales results by product division

Product division

FY2023(From June 1, 2023
to May 31, 2024)
AmountYoY change (%)(millions of yen)

Drug Stores
Medical and health products

111,686

106.8

OTC

61,169100.1

Prescription drug stores

50,517116.2

Cosmetics

47,768

107.3

Food products

176,791

116.5

Daily products

62,070

108.9

Other

19,598108.9

Subtotal

417,915

111.1

2,078

74.9

Paid assisted living facilities

701

101.7

Adult day care services

1,467

105.9

Subtotal

2,169

104.5

Revenue from contracts with customers

422,163

110.8

Other revenue (Note)

167

147.6

Total

422,330

110.9

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 for the fiscal year ended May 31, 2024 were as follows:
FY2022(From June 1, 2022
to May 31, 2023)
Amount(millions of yen)

FY2023(From June 1, 2023
to May 31, 2024)

Share (%)

Amount(millions of yen)

Share (%)

Kanagawa

235,80961.9

258,601

61.2

Tokyo

55,224

14.5

59,593

14.1

Shizuoka

41,90311.0

45,988

10.9

Chiba

28,586

7.5

36,5408.7

Other19,4395.1

21,605

5.1

Total

380,963100.0

422,330

100.0

－15－

(iii) Purchase results
Purchase results by product division for the fiscal year ended May 31, 2024 were as follows:
FY2023(From June 1, 2023
to May 31, 2024)
Product division

Amount(millions of yen)

YoY change (%)

Drug Stores
Medical and health products

66,467108.1

OTC

35,376

98.9

Prescription drug stores

31,090120.8

Cosmetics

30,699107.5

Food products

153,637

117.1

Daily products

45,807

110.7

Other

15,472

108.9

Subtotal

312,083

112.8

1,560

75.0

Paid assisted living facilities－－

Adult day care services－－

Subtotal－－

313,644

112.5

－

－

313,644

112.5

Supermarkets
Nursing Care

Purchases for revenue from contracts
with customers
Other purchases
Total－16－