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

Consolidated Financial Results for Three Months Ended August 31, 2023
(Japanese GAAP)
October 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: October 13, 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 First Quarter Results for Fiscal Year Ending May 31, 2024 (June 1, 2023 to August 31, 2023)(1) Consolidated Operating Results(Figures in percentages denote the year-on-year change)
Profit attributable toOperating profit
Ordinary profit
owners of parentNet sales
Three months ended
August 31, 2023Three months ended
August 31, 2022
(Note) Comprehensive income:Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

104,078

10.1

4,775

0.9

4,888

0.3

3,293

–0.1

94,530

6.2

4,732

0.2

4,872

0.8

3,297

0.9

Three months ended August 31, 2023: ¥3,298 million (–0.3%)
Three months ended August 31, 2022: ¥3,308 million (1.1%)
Earnings per share

Three months ended
August 31, 2023
Three months ended
August 31, 2022

Diluted earnings per share

YenYen52.09－52.16－(2) Consolidated Financial Position
Total assets

Total net assets

Millions of yen

As of August 31, 2023
195,976
As of May 31, 2023
194,941(Reference) Net assets: As of August 31, 2023: ¥118,001 million
As of May 31, 2023: ¥116,409 million

Equity ratio

Millions of yen%

118,001
116,40960.2
59.7

2. Dividend Payments
Dividends per shareFirst quarter

Second quarter Third quarter

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

AnnualYen

Yen

Yen－27.00

52.00－27.0054.00

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 perOrdinary profit
owners of parent
share

Operating profit%

Millions of yen

Millions of yen%

Millions of yen%

Yen

Six months ending
197,460
5.4
8,440
–8.6
8,720
November 30, 2023
Full-year
404,100
6.1
19,2401.7
19,800(Note) Revisions to most recently announced financial results forecast: None%–7.7

5,930–7.5

93.80

1.9

13,0000.6205.64

Notes(1) Significant changes of subsidiaries in three months ended August 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))
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 in accounting estimates and restatement(i) Changes in accounting policies due to amendments to accounting standards: None(ii) Other changes in accounting policies: None(iii) Changes in accounting estimates: None(iv) Restatements: NoneNotes on changes in accounting policies(4) Issued shares (common shares)(i) Issued shares (including treasury shares) at
period-end:(ii) Treasury shares at period-end:(iii) Average issued shares during period:

Three months ended
August 31, 2023
Three months ended
August 31, 2023
Three months ended
August 31, 2023

66,819,342 shares
3,600,857 shares
63,218,485 sharesFiscal year ended
May 31, 2023
Fiscal year ended
May 31, 2023
Three months ended
August 31, 2022

66,819,342 shares
3,600,857 shares
63,218,567 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 supplementarymaterial 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(3) Notes to Consolidated Financial Statements............................................................................................................... 8Going concern assumption ....................................................................................................................................... 8Notes in case of significant changes in shareholders’ equity .................................................................................... 8Application of specific accounting treatment in the preparation of consolidated financial statements .................... 8Changes to accounting policies ................................................................................................................................ 8Changes in accounting estimates .............................................................................................................................. 8
3. Supplemental Information ............................................................................................................................................ 9(1) Production, Orders Received, and Sales ................................................................................................................... 9―1―1. Qualitative Information Related to Consolidated Financial Results(1) Overview of Operating Results
During the first three months of fiscal year ending May 31, 2024, Japan's economy proceeded to recover in line with thereclassification of COVID-19 as a Class 5 disease, but the outlook still remains uncertain owing to soaring raw material andenergy prices and a fall in consumer sentiment due to the rise in the cost of living.
In the drug store industry, while there are signs of a recovery in demand for medical and health products and cosmetics thanks
to the easing of restrictions on movements, there is less demand for products to contain the spread of the coronavirus and a
growing need for households to save money owing to the rising cost of living. Business conditions for the Group remain harsh
due to new store openings by competitors and intensification of price competition, an increase in the number of new competitors
entering the market from other industries and greater consolidation and restructuring, and revisions to medical fees and drug
prices in the prescriptions division.
Under these circumstances, the Group is promoting comprehensive health care support for regional contribution in thedomains of daily life, prevention, medical care, and nursing care as we continue to strengthen our dominant position in existingareas, mainly in in-store prescription drug stores, to achieve the Medium-term Management Plan.
Drug Stores
In the drug store business, we continued to promote measures to provide everyday low prices (EDLP) and work on productproposals and lineups that included strengthening private brand sales to respond to changes in consumer behavior and growing
need for households to save money post-COVID. We also continued our efforts to target quick, one-stop shopping by promoting
in-store prescription drug stores and improving convenience and expertise in small trade areas by expanding the lineup of fresh
foods and frozen foods.
Net sales for the first three months of fiscal year ending May 31, 2024 exceeded both projections and the first three months ofthe previous fiscal year. This growth resulted from a rebound in demand for common cold medicines and cosmetics products andthe continued success of EDLP measures, including for daily necessities, despite the drop in demand for products such as masks
and test kits 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 despite the impact of regulatory revisions to medical feesand drug prices.
During the period, we opened 4 new drug stores. Meanwhile, we also closed two for which the contract expired. Newprescription drug store openings included four new in-store prescription drug stores and one dedicated prescription drug store ina medical mall.
Supermarkets
We are gradually renovating and converting existing Yuri Store supermarkets into combination drug store/fresh produce stores.
The number of stores as of August 31, 2023 remained unchanged from the end of the previous fiscal year at five stores. This
includes two food supermarkets (one of which is temporarily close for renovation) and three fresh produce stores. At some stores,
we pursued the delivery and sale of delicatessen dishes and fresh meats prepared in Yuri Store supermarkets to drug stores in theGroup and continued our efforts to improve convenience in small trade areas to generate synergies with the drug store business.
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 adult care centers characterized by training tomaintain and improve bodily functions such as muscle strength for those who want to live at home as long as possible. For ourpaid 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 the Group’s drug stores reached 719 as of August 31, 2023, and the total number ofprescription drug stores reached 375, including 37 dedicated prescription drug stores and 338 in-store prescription drug stores.
The Group also has two supermarkets and three combination drug store/fresh produce stores in the supermarket business as wellas two paid assisted living facilities and 37 half-day adult care centers in the nursing care business.
As a result of the above, net sales for the first three months of fiscal year ending May 31, 2024 were 104,078 million yen (up10.1% year on year), operating profit was 4,775 million yen (up 0.9%), ordinary profit was 4,888 million yen (up 0.3%), andprofit attributable to owners of parent was 3,293 million yen (down 0.1%).

―2―(2) Overview of Financial Position
Total assets as of August 31, 2023 were 195,976 million yen, up 1,034 million yen from the end of the previous fiscal year. The
main factors were a 451 million yen increase in accounts receivable - trade and a 6,159 million yen increase in non-current
assets, which exceeded a 4,133 million yen decrease in cash and deposits.
Total liabilities as of August 31, 2023 were 77,974 million yen, down 557 million yen from the end of the previous fiscal year.
The main factors were a 1,717 million yen decrease in accrued income taxes, which exceeded the 1,254 million yen increase inaccounts payable - trade.
Net assets as of August 31, 2023 were 118,001 million yen, up 1,591 million yen from the end of the previous fiscal year. The
main factors were a 1,706 million yen decrease in dividends paid and recording of 3,293 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 forecast for the fiscal year ending May 31, 2024 announced on July 10, 2023.

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

1Q of FY2023(As of August 31, 2023)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade37,526
13,31233,393
13,764Merchandise
Other38,497
10,29537,594
9,755

Total current assets

99,631

94,506

27,762
25,211

28,83625,385

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

4,858

7,709

Total property, plant and equipment

57,832

61,930Goodwill
Other

473
1,055

443
986

Total intangible assets

1,529

1,430

Long-term loans receivable
Leasehold and guarantee deposits

9,654
11,576

9,528
11,630Other
Allowance for doubtful accounts

14,759(40)

16,988(39)

Total investments and other assets

35,948

38,108Intangible fixed assets

Investments and other assets

Total non-current assets

95,310101,469

194,941

195,976

50,48551,739

3,386
378

1,668
1,893

145

39

171

161898848

Other

15,487

13,868

Total current liabilities

70,152

69,465Net defined benefit liability
Asset retirement obligations

3,310
3,579

3,380
3,621

Provision for loss on subleasing
Other30
1,459

29
1,478

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

8,509

78,532

77,974

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

1Q of FY2023(As of August 31, 2023)

Net assets
Equity capital
Share capital
Capital surplus

1,000934

1,000934

Retained earnings
Treasury shares

118,741(4,393)

120,328(4,393)

Total shareholders’ equity

116,282

117,869

3946

87

85

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

126132

Total net assets

Total accumulated other comprehensive income

116,409118,001

Liabilities and net assets

194,941

195,976―5―(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
First three months of the fiscal year ending May 31, 2024

Net sales
Cost of sales

1Q of FY2022(From June 1, 2022
to August 31, 2022)
94,53069,160(Millions of yen)
1Q of FY2023(From June 1, 2023
to August 31, 2023)
104,078
77,399Gross profit

25,37026,678Selling, general and administrative expenses
Provision for point card certificates

164161

8,492
1,411

8,925
1,492

Provision for directors’ bonuses
Retirement benefit expenses

32
202

35192

Depreciation and amortization
Land/office rent

912
4,117

1,048
4,268

Other

5,306

5,778

Total selling, general and administrative expenses

20,63821,902

4,732

4,775

Non-operating profit
Interest income

2221

Dividend income
Rent income

098

090

Other

6247

Total non-operating income

183

159

41
140
5

Salaries and allowances
Provision for bonuses

Operating profit

Non-operating expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit

4246

4,872

4,888－226
1

Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets

227

Profit before income taxes

Total extraordinary losses

4,870

4,860

Income taxes

1,573

1,567

Profit

3,297

3,293

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

―6―－－

3,297

3,293

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

3,297(Millions of yen)
1Q of FY2023(From June 1, 2023
to August 31, 2023)
3,293

377(2)

1Q of FY2022(From June 1, 2022
to August 31, 2022)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

1153,308

3,298

3,308

3,298－－

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, 2024, including the first three months, after applying tax effect accounting and perform the calculation by multiplying
profit before income taxes by the estimated effective tax rate.

Changes to accounting policies
Not applicable

Changes in accounting estimates
Not applicable―8―3. Supplemental Information(1) Production, Orders Received, and Sales
1) Sales results(i) Sales results by product division
Sales results by product division during the first three months of the fiscal year ending May 31, 2024 were as follows:
1Q of FY2023(From June 1, 2023 to August 31, 2023)
Product division

Amount (millions of yen)

YoY change (%)

Drug Stores
Medical and health products

27,422105.5

OTC15,456

96.7

Prescription drug stores

11,966

119.4

Cosmetics

12,384

108.6

Food products

42,575

116.6

Daily products

15,817

106.8

Other

4,807

110.1

Subtotal

103,007

110.7

506

56.7

Paid assisted living facilities

170

93.8

Adult day care services

357104.9

Subtotal

528

101.0

104,042

110.1

Other revenue (Note)

35

110.8

Total

104,078

110.1

Supermarkets
Nursing Care

Revenue from contracts with customers(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 three months of the fiscal year ending May 31, 2024 were as follows:
1Q of FY2022(From June 1, 2022
to August 31, 2022)
Amount(millions of yen)

1Q of FY2023(From June 1, 2023
to August 31, 2023)

Share (%)

Amount(millions of yen)

Share (%)

Kanagawa

58,66862.1

63,808

61.3

Tokyo

13,801

14.6

14,889

14.3

Shizuoka

10,40711.0

11,556

11.1

Chiba

6,800

7.2

8,558

8.2

Other

4,852

5.1

5,264

5.1

Total

94,530100.0

104,078

100.0

―9―

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

Amount (millions of yen)

YoY change (%)

Drug Stores
Medical and health products

16,102

104.0

OTC

8,605

90.8

Prescription drug stores

7,497

124.9

Cosmetics

7,300

105.0

Food products

37,326

118.6

Daily products

11,192

108.9

Other

3,692

108.4

Subtotal

75,615

111.9

381

56.1

Paid assisted living facilities――

Adult day care services――

Subtotal――

75,996

111.3

―

―

75,996

111.3

Supermarkets
Nursing Care

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