Consolidated Financial Results [Japanese GAAP]
for the First Quarter of the Fiscal Year Ending January 20, 2024
May 25, 2023
Takasho Co., Ltd.
Stock code:
7590
Stock Exchange Listing:
Tokyo
URL:
https://takasho.co.jp/en
Telephone:+81-73-482-4128
Representative: Nobuo Takaoka, President & CEO
For inquiries:
Atsushi Inoue, Corporate Officer, Corporate Management Headquarters Vice Director
Scheduled date to submit statutory quarterly financial report:
June 2, 2023
Scheduled date of starting payment of dividend:
N/A
Availability of supplementary explanatory material on quarterly results:
N/A
Quarterly results briefing:
N/A
This is a translation of the original release in Japanese. In the event of any discrepancy, the original release inJapanese shall prevail.
*Figures are rounded down to the nearest million yen, except share and per share data*“%” indicates year-on-year changes from the previous corresponding quarter1. Consolidated Financial Results for the Three Months Ended April 20, 2023 (From January 21, 2023, toApril 20, 2023)(1) Consolidated Operating Results（Cumulative）
Net income
Net sales
Operating income
Ordinary income
attributable toowners of the parent
MillionMillionMillionMillion
%
%
%
%
yen
yen
yen
yen
FY2024 1Q
5,602 △1.2
238 △43.9
253(Three months endedApril 20, 2023)
FY2023 1Q
5,671
1.7
424
9.7
764
(Three months endedApril 20, 2022)(Note) Comprehensive income:
FY2024 1Q (Three months ended April 20, 2023): 300 million yen (△61.2%)
FY2023 1Q (Three months ended April 20, 2022): 775 million yen (39.2%)

FY2024 1Q(Three months endedApril 20, 2023)
FY2023 1Q(Three months endedApril 20, 2022)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen
6.14

6.13

30.00

29.98

(2) Consolidated Financial Position
Total assets
As of the end of
FY2024 1Q(As of April 20, 2023)
FY2023 4Q(As of January 20, 2023)

Million yen

Net assets
Million yen

△66.9

106

△79.7

68.8

525

88.6

Shareholders’equity ratio%

25,936

12,90349.3

23,64013,38956.2

(Ref.) Shareholders’ equity amount:
FY2024 1Q (As of April 20, 2023): 12,785 million yen
FY2023 4Q (As of January 20, 2023): 13,274 million yen
2. Dividends

FY2023 4Q
ended Jan. 20, 2023

Annual cash dividends per share
2nd quarter3rd quarter
Year-end
Yen
Yen
Yen

1st quarter
Yen

－

23.00

23.00

FY2024 4Q
ending Jan. 20, 2024
0.00－
(forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

16.00

16.00

FY2024 1Q
ended Apr. 20, 2023

－

Total
Yen

0.00

－

3. Forecast for the Fiscal Year Ending January 20, 2024 (From Jan. 21, 2023, to Jan. 20, 2024)
Net income
Basic
Operating
Ordinary
attributableto
Net sales
Earnings
IncomeIncomeowners of the
Per Share
parent company
Million yen % Million yen % Million yen % Million yen %Yen
FY2024 4Q
22,700 11.5
1,016 15.3
1,048 6.7
651 25.4
38.65(full year)(Notes) Revisions to the forecast since the latest announcement: None

※ Notes;(1) Changes in Significant Subsidiaries during the Current Quarter
Changes in specified subsidiaries that caused a change in the scope of consolidation: None
Newly included companies: None
Newly excluded companies: None
(2) Simplified Accounting Procedures and Specific Accounting Procedures: None
(3) Changes in Accounting Policies and Accounting Estimates(i) Changes in accounting policies as required by newly promulgated account pronouncement: None(ii) Changes other than (i) above: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of Shares Outstanding (Ordinary Shares)

Number of shares outstanding at end of period(Treasury shares included)
Number of treasury shares at end of period

Average number of shares during period

FY2024 1Q(As of Apr. 20, 2023)

FY2023 4Q(As of Jan.21, 2023)

17,590,114

17,590,114

588,458
FY2024 1Q(From Jan.21, 2023,
to Apr. 20, 2023)
17,371,467

47,658FY2023 1Q(From Jan.21,2022,
to Apr. 20, 2022)
17,527,692* This quarterly financial results report is out scope of the quarterly review by a certified public accountant nor
audit firm.
* Explanation on appropriate use of performance forecasts and other special notes.
The performance forecast described in this report are based on information that is available to the Group, as wellas certain assumptions and estimates that are deemed to be reasonable, and we make no assurance that suchdescriptions prove to be correct. Actual figures may significantly differ due to various factors. For information
regarding the forecast of consolidated financial results, due attention should be paid to "Explanation of ForwardLooking Statements" on page 5 of the attached documents.

Table of Contents
1. Status of the Group…………………………………………………………………………………………

1(1) Business Overview and Results for the First Fiscal Quarter……………………………………………
(2) Explanation on the Financial Position …………………………………………………………………
(3) Explanation on Future Performance Forecast …………………………………………………………
2. Quarterly Financial Statements and Notes…………………………………………………………………

1
5
5
6

(1) Quarterly Consolidated Balance Sheet ………………………………………………………………… 6(2) Quarterly Consolidated Statement of Income and Comprehensive Income…………………………… 8(3) Notes to Quarterly Consolidated Financial Statement ………………………………………………… 10
Note on Going Concern ……………………………………………………………………………… 10
Note on Significant Change in Equity Capital ………………………………………………………

10

1. Status of the Group(1) Business Overview and Results for the First Fiscal Quarter
Business Overview
During the first quarter of the current consolidated fiscal year (hereafter, referred to as “FY2024”), the prospectsof Japanese economy continue to be highly uncertain and are unpredictable. Although the economy showed signsof recovery due to the easing of behavioral restrictions to prevent the spread of the novel coronavirus (hereafterreferred to as “COVID-19”) pandemic, but volatile global factors, which includes severe supply chain issues andskyrocketing material prices, spurred by the Ukraine affairs, are all rampant and have been increasing thisuncertainty.
Against these headwinds, we have taken several important steps to enhance our brand value and fuel future
growth. Especially, we intensified sales promotion campaigns. We delivered DX-enabled sales promotion bybroadcasting TV commercials which are linked with our web platform to increase customer touchpoint andengagement.
Also, leveraging our state-of-the-art technologies, such as XR (AR/VR/MR) and metaverse, we further
strengthened sales promotion campaign utilizing “GLD-LAB Design Network Service” which supports housing
providers and housing reformers to propose housings and exteriors.
Innovation is our heritage and at the heart of our vision “Always Ahead of Changes, Bringing Innovation andCreate New Values; Towards the One and Only Global Enterprise”.
Ever since our establishment, nurturing great urban environment and gardening culture is what we do. With our
passion for innovation, at this juncture, we have been pioneering clean-energy products and solutions which
integrate sustainability into the gardening life.
Further, we introduced innovative product in the field of “LINKED CITY” Concept, which means that originatedfrom tourism, the tourism-oriented smart villages which address various challenges, such as transportation,
logistics, settlement, local government, healthcare & nursing care, education, energy, environment & waste,disaster prevention & safety and etc., from the urban-DX perspective. We are socially and environmentallyengaged companies and promote galvanization of regional economy and sustainability initiatives.

As for the overseas business, in U.S., customer attraction at home center and garden center has been recovering.
Still, our retail partners’ stock overload and refrained consumption due to the price rise in electricity, gas, andnecessities and unusual bad weather in Europe has largely affected our performance as well.
As such, business performance for the first quarter FY2024 has been resulted in as follows.
1st Quarter Fiscal 2024 Highlight (January 21, 2023, to April 20, 2023)
FY2024 1Q(Three months endedApril 20, 2023)

FY2023 1Q(Three months endedApril 20, 2022)

IncreaseorDecrease

5,602

5,671

△68

98.8

Operating income

238

424

△186

56.1

Ordinary income

253

764

△511

33.1

Net income attributableto owners of the parent

106

525

△419

20.3

(Millions of yen)
Revenue%

As mentioned above, the large discrepancy from the same quarter of FY2023 is because low-cost inventories
brought forward from FY2022 were included in the calculation of cost of goods for sales in FY2023 1Q and
resulted in a higher gross profit margin and operating income. Also, foreign exchange gain decreased to 10 million
yen due to the unexpected sharp reverse trend in the exchange market (yen’s depreciation), from the same quarterof FY2023, when the company recorded 314 million yen of foreign exchange gain.
However, in the first quarter of the fiscal year under review, our performance was almost in line with its
announced budget.

-1-

Sales Metrics by Business Segments<Pro-use segment>
Despite deceased housing construction, the sales of Pro-use accounted for 63.0% our total sales and has beenstable (YoY 103.4 % growth).
To accelerate our successful growth, we promoted our new multidimensional business model. This is innovativesynergy of online, virtual, and real, more precisely, DX-enabled proposals of lifestyles and sales closing throughweb-based showrooms and VR parks, as well as through our original Garden & Exterior showrooms locatedthroughout Japan. Of course, in our showroom, customers can experience and feel a wide selection of our products.
Also, we have our own factory in Japan, which enables flexible “mass customization” to each customer’s order.
We have been promoting hybrid-style proposals, as mentioned above, that utilize content both online and real. In
our “mass customization”, we comprehensively propose "Facade Exterior & Living Garden" lifestyle throughabundance of color variation tailored to each customers’ aesthetics sense, tastes, and interests.
What’s more, sales of living garden products such as "Home Yard Roof," a key product inspired by "5th ROOM"(fifth room) concept, increased by the brand designated orders, due to the new DX-enabled proposals and sales
strategy which links TV commercial and web-based platform.
In addition, since the sales of "Low Volt Light," a safe and secure exterior illumination for nighttime gardens,
has been continuously increasing.
Pro-use segment Highlight (January 21, 2023, to April 20, 2023)(Millions of yen)
Revenue

FY2024 1Q(Three months endedApril 20, 2023)

FY2023 1Q(Three months endedApril 20, 2022)

3,531

3,416

IncreaseorDecrease

%

115

103.4

On the other hand, TAKASHO DIGITEC CO., LTD. (hereafter referred to as “DIGITEC”), our consolidated
subsidiary, dedicatedly promoted LED sign and lightening/illumination business. Due to the cooperation with ourlandscape building material team, DIGITEC increased transactions with non-housing fields (Commercial facilities
such as hotels and Japanese-style Ryokans etc.) and achieved 116.6% YoY growth.
Also, first in the industry, DIGITEC was officially certified under the "Eco-First System," a program establishedby the Ministry of the Environment to recognize 54 companies nationwide, as an environmentally advanced
company.
<Home-use segment>
Sales by home-use segment maintained approximately same level (YoY 100.2%). In order to neutralize negative
factors such as rebound decrease in sales by COVID-19 and decreased in customer attraction at large retail stores
due to bad weather in April, we strengthened web marketing and revised selling price for large retail stores.

Home-use segment Highlight (January 21, 2023, to April 20, 2023)(Millions of yen)
Revenue

FY2024 1Q(Three months endedApril 20, 2023)

FY2023 1Q(Three months endedApril 20, 2022)

1,615

1,612

IncreaseorDecrease

%
3

100.2

<Overseas segment>
Although customer attraction at home center and garden center has been recovering, overseas sales decreased(YoY 71.1%) due to the continued stock adjustments caused by our retail partners’ stock overload andcorresponding delivery adjustment. Also, in Europe, added to unusual bad weather, people refrained from buying
due to the price rise in electricity, gas, and necessities.
Nonetheless, we have witnessed that “Lifestyle with gardening” has been penetrated and embedded in everyday
life. In the face of COVID-19, and continuously in “with and after COVID-19” era, people worldwide reaffirmed-2-the importance of health (garden therapy), culture (emotion, arte), and environment (green, nature).
Especially in U.S., surging demand for Gardening & Exterior has raised the average expenditure for lawn care andhorticultural activities. Also, people, especially young generation, are convinced of the importance and necessity ofgardening out of growing consciousness for health and cost; at the face of pricing increase in fruit and vegetables,
self-sufficient and self-reliant in growing their own food.
Also, we will further foster our effort and boost overseas business by horizontally roll-out our success model inAustralian market to U.S. market.
Overseas segment Highlight (January 21, 2023, to April 20, 2023)(Millions of yen)
Revenue

FY2024 1Q(Three months endedApril 20, 2023)

FY2023 1Q(Three months endedApril 20, 2022)

450

633

IncreaseorDecrease
△183

%
71.1

Gross margin and operating income etc.
Although we maintained approximately same level of sales YoY, gross margin decreased by 1.1 points(increased 1.3 point compared to FY2024 forecast) compared to the same quarter of FY2023, when low-cost
inventories brought forward from FY2022 were sold. On the other hand, high-cost inventories, affected by priceincrease in FY2023, were included in the calculation of cost of goods for sales in FY2024, and lowered gross profit
margin accordingly.
As for the sales and administrative costs, sales and administrative costs increased, since, to enhance our brandvalue and fuel future growth, we continued proactive advertising, and sales promotion, etc., such as real exhibitions
reopened after COVID-19 pandemic, and DX-enabled sales promotion by broadcasting TV commercials which arelinked with our web platform.
Other up-front investments in the value creation levers, such as CAPEX and recruiting for higher productivities,
also increased sales and administrative costs.
As a result, operating income decreased to 56.1% (achieved 98% of budget) compared to the same quarter of
FY2023.
Ordinary income decreased to 33.1% (achieved 100.5% of budget) compared to the same quarter of FY2023.
Foreign exchange gain decreased to 10 million yen due to the sharp reverse trend in the exchange market (yen’s
depreciation), from the same quarter of FY2023, when the company recorded 314 million yen of foreign exchangegain.

Our mission, SDGs initiatives and business development
Passion for our establishment was “Heart and Art”, which has never been changed nor forgotten ever since.
Underpinned with our passion and mission, we have a long history of and reputation for designed gardening andinnovation, inspired by traditional Japanese aesthetics (such as wabi-sabi, elegance and refinement) and British
garden cultures etc., integrating the beauty of nature into daily lives and spiritual values.

As society has been taking a transformational shift to low-carbon and resource-smart products, we havedetermined to accelerate the ambitions commitments and foster the proactive efforts in our journey towards ESG
and SDGs excellence. We believe ESG is embedded into our business itself, i.e., the promotion of our products
directly leads to the solution or mitigation of environmental and social problems.
We are continuously pioneering products and solutions that help customers make more sustainable choices everyday. For example, our Eco Garden (3R: Recycle, Reduce, Reuse) ensures sustainable consumption and production
patterns. Especially, since customers can virtually experience quasi-real feelings at our DX-enabled showroom,
namely, a resource-smart customer experience, we don’t need to produce waste (Reduce waste in advance);
produce only high-quality products that can be cherished for a long time. Of course, this DX is also introduced into
our product development and manufacturing phases; resulting in higher quality, shortened time to market andmaking factories and workplaces more energy-operational efficient.
Also, aforementioned eco-electrification gatepost equipped with V2H is part of our sustainability agenda and will
promote GX (Green transformation) and contributes to reduce our carbon footprint.

-3-

Compliance requirements pertaining to sustainability issues are on the rise. Increasingly, investors, customers andother affected communities are becoming more aware about sustainability considerations and implications. Beyond
as a mere compliance issue, the company positioned climate change measures as a significant management theme
and opportunities and will begin considering the disclosure in accordance with the TCFD (Task force on Climaterelated Financial Disclosures), starting in the 4th quarter of FY2024.
In addition, to ensure proper implementation of such climate change measures, the Board of Directors willdevelop the necessary mechanism, including the establishment of a Sustainability Committee, which supports the
management and oversight of sustainability in a focused and coordinated way across the company.
As for the business development by each segment, in pro-use segment, we further promote our new
multidimensional business model, innovative synergy of online, virtual, and real, more precisely, DX-enabled
proposals leveraging AR & VR, in order not only to enhance our brand value and fuel future growth in sales
promotions, but also to strengthen sales and promotion campaign of landscape business. Also, as we are sociallyand environmentally engaged company, we will further implement sales initiatives towards galvanization ofregional economy and sustainability.
In home-use segment, we will further promote our growing e-commerce, product development in our own
factories, and horizontal roll-out of global products. Also, we will launch “Living Garden Store (owned media for
e-commerce)” and revise product mix so that our sales volume will be unaffected by bad weather.
In overseas segment, we will promote new transactions with home centers in U.S., and pioneer untapped regions(France, Italy, etc). Also, in order to strengthen online sales, focusing “VEGTRUG. COM (owned media for ecommerce)”, we will develop and introduce new products. There, we comprehensively propose "Facade Exterior &Living Garden" lifestyle.

-4-

(2) Explanation on the Financial Position
Status of Assets, Liabilities, and Net assets<Assets>
Current assets at the end of the first quarter amounted to 17,475,008 thousand yen, an increase of 2,091,032
thousand yen from the end of the previous consolidated fiscal year, primarily due to increased cash and deposits of
5,226,098 thousand yen (up 1,019,212 thousand yen from the end of the previous consolidated fiscal year) andincreased note receivable, account receivable and contract assets of 3,720,994 thousand yen (up 1,030,545
thousand yen from the end of the previous consolidated fiscal year).
Fixed assets at the end of the first quarter amounted to 8,461,764 thousand yen, an increase of 205,738 thousand
yen from the end of the previous consolidated fiscal year, mainly due to increased construction in progress of
269,588 thousand yen (up 233,912 thousand yen from the end of the previous consolidated fiscal year).
As a result, total assets at the end of the first quarter amounted to 25,936,773 thousand yen, an increase of
2,296,770 thousand yen from the end of the previous consolidated fiscal year.

<Liabilities>
Current liabilities at the end of the first quarter amounted to12,204,130 thousand yen, an increase of 2,817,609
thousand yen from the end of the previous consolidated fiscal year, mainly due to an increase of short-term loans
payable of 5,520,725 thousand yen (up 1,604,928 thousand yen from the end of the previous consolidated fiscal
year) and an increase of notes and accounts payable-trade of 4,744,612 thousand yen (up 977,054 thousand yen
from the end of the previous consolidated fiscal year).
Fixed liabilities at the end of the first quarter amounted to 828,948 thousand yen, a decrease of 35,266 thousand
yen from the end of the previous consolidated fiscal year, mainly due to a decrease of other fixed liabilities of
511,882 thousand yen (down 30,056 thousand yen from the end of the previous consolidated fiscal year) and adecrease of long-term loans payable of 66,000 thousand yen (down 9,000 thousand yen from the end of theprevious consolidated fiscal year).
As a result, total liabilities at the end of the first quarter amounted to 13,033,078 thousand yen, an increase of
2,782,342 thousand yen from the end of the previous consolidated fiscal year.

<Net assets>
Total net assets at the end of the first quarter amounted to 12,903,694 thousand yen, a decrease of 485,571
thousand yen from the end of the previous consolidated fiscal year, mainly due to an increase of treasury shares of395,583 thousand yen (up 383,069 thousand yen from the previous consolidated fiscal year) and an increase ofother comprehensive income of 1,082,415 thousand yen (up 190,860 thousand yen from the previous consolidated
fiscal year), partially offset by a decrease of Retained earnings of 5,955,981 thousand yen (down 296,874 thousand
yen from the previous consolidated fiscal year).

(3) Explanation on Future Performance Forecast
At present, there are no changes to the consolidated earnings forecast for the full year announced on March 3,
2023.

-5-

2. Quarterly Financial Statements and Notes(1) Quarterly Consolidated Balance SheetFY2023 4Q(As of Jan. 20, 2023)
ASSETS
CURRENT ASSETS:
Cash and deposits
Note receivable, account receivable andcontract assets
Electronically recorded receivables
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
NON-CURRENT ASSETS:
Tangible assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
OthersTotal tangible assets
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OthersAllowance for doubtful accounts
Total investment and other assets
Total non-current assets
TOTAL ASSETSLIABILITIESCURRENT LIABILITIES:Note and accounts payable
Electronically recorded payables
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other long-term liabilities
Total long-term liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Share capital
Capital surplus
Retained earnings

4,206,885
2,690,448-6-(Thousands of yen)
FY2024 1Q(As of Apr. 20, 2023)

5,226,098
3,720,994

637,845
4,964,609
498,257
1,581,365
947,746△143,182
15,383,976

608,823
5,167,936
546,538
1,590,464
751,973△137,821
17,475,008

3,825,373
1,136,609
35,675
1,249,059
6,246,717

3,798,509
1,136,609
269,588
1,213,692
6,418,399

51,722
459,309511,032

37,333482,952
520,285

281,434
177,502
1,059,441△20,102
1,498,276
8,256,026
23,640,002

290,841
172,038
1,078,941△18,741
1,523,080
8,461,764
25,936,773

2,570,448
1,197,109
3,915,796
36,000313,029
27,141
1,326,996
9,386,521

3,474,761
1,269,850
5,520,725
36,000213,267
144,471
1,545,054
12,204,130

75,00011,110236,166
541,938
864,215
10,250,736

66,00011,897239,168
511,882
828,948
13,033,078

3,043,623
3,099,197
6,252,855

3,043,623
3,099,197
5,955,981

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeStock subscription rights
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES and NET ASSETS-7-△12,514
12,383,162△395,583
11,703,218

140,290

146,789△7,052751,0317,284

25,034
888,336
22,254

891,554

1,082,415

1,025
113,524
13,389,266
23,640,002

1,025
117,035
12,903,694
25,936,773

(2) Quarterly Consolidated Statement of Income and Comprehensive Income(Quarterly Consolidated Statement of Income, Cumulative)(Thousands of yen)

Net sales
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Royalty income
Foreign exchange gain
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Commitment fee
OtherTotal non-operating expenses
Ordinary income
Extraordinary gains
Gain on retirements of non-current assets
Total extraordinary gains
Extraordinary losses
Loss on retirements of non-current assets
Impairment losses
Total extraordinary losses
Income before income taxes
Income tax - current
Income tax - deferred
Total income taxes
Quarterly net income
attributable to noncontrolling interests
attributable to owners of the parent

FY2023 1Q(From Jan. 21, 2022,
to Apr. 20, 2022)
5,671,002
3,177,009
2,493,992
2,069,383
424,609

FY2024 1Q(From Jan. 21, 2023,
to Apr. 20, 2023)
5,602,950
3,199,178
2,403,772
2,165,711
238,061

1,604
3,588
314,626
49,091
368,9101,800
10,54910,65333,44456,447

18,771
1,176
8,591
28,540764,979

29,744208
11,33341,286253,221

－
－

6,499
6,499

－
－
－
764,979
264,028△27,040
236,988527,991
2,117
525,874-8-

82
11,571
11,653
248,067
170,715△30,360
140,354
107,713
1,111
106,602

(Quarterly Consolidated Statement of Comprehensive Income, Cumulative）(Thousands of yen)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeComprehensive income
attributable to owners of parent
attributable to non-controlling interests

FY2023 1Q(From Jan. 21, 2022,
to Apr. 20, 2022)
527,991

FY2024 1Q(From Jan. 21, 2023,
to Apr. 20, 2023)
107,713

12,815

6,499

101,308
132,751257

32,087
139,703
14,969247,133

193,260

775,125
766,143
8,981

300,973
297,4623,510-9-

(3) Notes to Quarterly Consolidated Financial Statement(Note on Going Concern): None
(Note on Significant Change in Equity Capital):
The Company repurchased 540,800 shares of treasury stock in accordance with a resolution of the Board of
Directors on March 3, 2023. As a result, treasury stock at the end of the first quarter of FY2024 amounted to395,583 thousand yen, an increase of 383,069 thousand yen from the end of FY2023.

10