Consolidated Financial Results [Japanese GAAP]
for the Second Quarter of the Fiscal Year Ending January 20, 2024
August 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:
September 1, 2023
Scheduled date of starting payment of dividend:
N/A
Availability of supplementary explanatory material on quarterly results:
Yes
Quarterly results briefing (exclusive for institutional investors and analysts):
Yes
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 Six Months Ended July 20, 2023 (From January 21, 2023, to July20, 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 2Q
10,687 △3.0
386 △50.9
480(Six months ended July20, 2023)
FY2023 2Q
11,022786 △32.4
1,098(Six months ended July
△2.2
20, 2022)(Note) Comprehensive income:
FY2024 2Q (Six months ended July 20, 2023): 585 million yen (△58.1%)
FY2023 2Q (Six months ended July 20, 2022): 1,396 million yen (16.6%)

FY2024 2Q(Six months ended July20, 2023)
FY2023 2Q(Six months ended July20, 2022)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen
13.13

13.12

38.75

38.73

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

Million yen

Net assets
Million yen

△56.3

225

△66.9

△10.5

679

△21.5

Shareholders’equity ratio%

25,93813,07950.0

23,64013,38956.2

(Ref.) Shareholders’ equity amount:
FY2024 2Q (As of July 20, 2023): 12,956 million yen
FY2023 4Q (As of January 20, 2023): 13,274 million yen
2. Dividends
1st quarter
Yen

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

FY2023 4Q
0.00－－
ended Jan. 20, 2023
FY2024 2Q
0.00－
ended Jul. 20, 2023
FY2024 4Q
ending Jan. 20, 2024－
(forecast)(Note) Revisions to the dividends forecast since the latest announcement: None

Total
Yen

23.00

23.00

16.00

16.00

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 2Q(As of Jul. 20, 2023)

FY2023 4Q(As of Jan.20, 2023)

17,590,114

17,590,114

745,658
FY2024 2Q(From Jan.21, 2023,
to Jul. 20, 2023)
17,141,552

47,658FY2023 2Q(From Jan.21,2022,
to Jul. 20, 2022)
17,529,221* 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 6 of the attached documents.

Table of Contents
1. Status of the Group(1) Business Overview and Results for the Second Fiscal Quarter…………………………………………
(2) Explanation on the Financial Position …………………………………………………………………
(3) Explanation on Future Performance Forecast …………………………………………………………
2. Quarterly Financial Statements and Notes…………………………………………………………………

1
5
6
7

(1) Quarterly Consolidated Balance Sheet ………………………………………………………………… 7(2) Quarterly Consolidated Statement of Income and Comprehensive Income…………………………… 9(3) Quarterly Consolidated Statement of Cash Flows ……………………………………………………… 11(4) Notes to Quarterly Consolidated Financial Statement ………………………………………………… 12
Note on Going Concern ………………………………………………………………………………
Note on Significant Change in Equity Capital ………………………………………………………

12
12

1. Status of the Group(1) Business Overview and Results for the Second Fiscal Quarter
Business Overview
During the second quarter of the current consolidated fiscal year (hereafter, referred to as “FY2024”), theprospects of Japanese economy continue to be highly uncertain and are unpredictable. Although the economy
showed signs of recovery due to the easing of behavioral restrictions to prevent the spread of the novel coronavirus(hereafter referred to as “COVID-19”) pandemic, but volatile global factors, which includes prolonged Ukraine
affairs and continued yen’s depreciation, and resulting soaring prices of materials and energy, as well as successive
increases in food prices and wages, have led to an inflationary trend in Japan, following U.S. and Europe. These are
all rampant and have been amplifying this uncertainty.
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 such, business performance for the second quarter of FY2024 has been resulted in as follows.

2nd Quarter of FY2024 Highlight (January 21, 2023, to July 20, 2023)(Millions of yen)
Revenue

FY2024 2Q(Six months ended
July 20, 2023)

FY2023 2Q(Six months ended
July 20, 2022)

IncreaseorDecrease%

10,687

11,022△334

97.0

Operating income

386

786

△399

49.1

Ordinary income

480

1,098

△618

43.7

Net income attributableto owners of the parent

225

679

△454

33.1

The above large variations between FY2023Q2 and FY2024Q2 were due to the occurrence of unparalleled events,
such as a high ratio of inventory sales before the sharp rise in material and freight costs in the previous two fiscal
years, which boosted the gross profit margin, and a foreign exchange gain of 269 million yen (80 million yen in
FY2024Q2) due to sharp exchange rate fluctuations (yen’s depreciation).
Sales Metrics by Business Segments<Pro-use segment>
Despite deceased housing construction, the sales of Pro-use accounted for 63.8% our total sales and has been-1-

stable (YoY 101.4 % 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 July 20, 2023)(Millions of yen)
Revenue

FY2024 2Q(Six months ended
July 20, 2023)

FY2023 2Q(Six months ended
July 20, 2022)

6,818

6,724

IncreaseorDecrease

%
94

101.4

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 120.3% 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 66 companies nationwide, as an environmentally advanced
company.
<Home-use segment>
Sales by home-use segment has been slightly decreased (YoY 84.4%). In order to neutralize negative factors
such as rebound decrease in sales by COVID-19, inflation and decreased customer attraction at large retail stores
due to bad weather, we strengthened web marketing and revised selling price for large retail stores.
In this business environment, we have launched new initiatives in anticipation of business demand and willproactively pursue the establishment of a new business model.
Home-use segment Highlight (January 21, 2023, to July 20, 2023)(Millions of yen)
Revenue

FY2024 2Q(Six months ended July20, 2023)

FY2023 2Q(Six months ended
July 20, 2022)

2,769

3,280

IncreaseorDecrease
△511

%
84.4

<Overseas segment>
The stock adjustments have been continued which are caused by our retail partners’ stock overload andcorresponding delivery adjustment. Also, in Europe, added to unusual bad weather, people have refrained frombuying due to the price rise in electricity, gas, and necessities. However, customer attraction at home center andgarden center has been recovering. In addition, a part of sales categories changed, as a result, overseas sales
increased (YoY 107.5%).
Nonetheless, we’ve 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 theimportance of health (garden therapy), culture (emotion, arte), and environment (green, nature).

-2-

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.
Furthermore, Also, greenery-enclosed spaces within landscape and garden rooms are gaining popularity abroad,especially in Europe.
Walls of flora give people various comforts. People become immersed in the natural world, a practice known as“nature bathing”, which can reduce stress and even improve concentration; for further privacy, people hide aneighbor’s house with a towering garden tree hedge, and for noise reduction, people utilize greenery to buffersound from outside the yard.
The garden room functions like rooms in a house - extended to outdoor, for reading, resting, entertaining. Better
yet, they visually “enlarge” the outdoor area. Rejecting the idea of a mere open lawn, many people transform it into
architecturally interconnected garden spaces, for example, a porch room/garden room, a parterre, a dining area, anda pool..
Additionally, we will further foster our effort and boost overseas business by horizontally roll-out our successmodel in Australian market to U.S. market.
Overseas segment Highlight (January 21, 2023, to July 20, 2023)(Millions of yen)
Revenue

FY2024 2Q(Six months ended
July 20, 2023)
1,081

FY2023 2Q(Six months ended
July 20, 2022)
1,005

IncreaseorDecrease

%
75

107.5

Gross margin and operating income etc.
Although we maintained approximately same level of sales YoY, gross margin decreased by 0.6 points(increased 1.1 point compared to FY2024 forecast) compared to the same quarter of FY2023, when a large
proportion of sales was composed of cheap FY2022 inventories (before skyrocketing prices in materials andfreights). Comparatively high-cost inventories, affected by price increase in FY2023, were included in thecalculation 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 49.1% (achieved 62.6% of budget) compared to the same quarter of
FY2023.
Ordinary income decreased to 43.7% (achieved 77.4% of budget) compared to the same quarter of FY2023.
Foreign exchange gain decreased to 80 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 269 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-3-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.
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 Position① Status of Assets, Liabilities, and Net assets<Assets>
Current assets at the end of FY2024 2Q amounted to 17,210,721 thousand yen, an increase of 1,826,744 thousand
yen from the end of FY2023 4Q, primarily due to increased cash and deposits of 5,431,865 thousand yen (up1,224,979 thousand yen from the end of FY2023 4Q) and increased note receivable, account receivable andcontract assets of 3,210,946 thousand yen (up 520,497 thousand yen from the end of FY2023 4Q).
Fixed assets at the end of FY2024 2Q amounted to 8,728,028 thousand yen, an increase of 472,001 thousand yen
from the end of FY2023 4Q, mainly due to increased construction in progress of 345,911 thousand yen (up 310,235
thousand yen from the end of FY2023 4Q).
As a result, total assets at the end of FY2024 2Q amounted to 25,938,749 thousand yen, an increase of 2,298,746
thousand yen from the end of FY2023 4Q.

<Liabilities>
Current liabilities at the end of FY2024 2Q amounted to11,593,498 thousand yen, an increase of 2,206,977
thousand yen from the end of FY2023 4Q, mainly due to an increased notes and accounts payable-trade of
4,568,165 thousand yen (down 800,607 thousand yen from the end of FY2023 4Q) and increased short-term loans
payable of 5,066,466 thousand yen (up 1,150,669 thousand yen from the end of FY2023 4Q).
Fixed liabilities at the end of FY2024 2Q amounted to 1,265,709 thousand yen, an increase of 401,494 thousand
yen from the end of FY2023 4Q, mainly due to an increase of long-term loans payable of 457,043 thousand yen (up382,043 thousand yen from the end of FY2023 4Q).
As a result, total liabilities at the end of FY2024 2Q amounted to 12,859,208 thousand yen, an increase of
2,608,472 thousand yen from the end of FY2023 4Q.

<Net assets>
Total net assets at the end of FY2024 2Q amounted to 13,079,541 thousand yen, a decrease of 309,725 thousand
yen from the end of FY2023 4Q, mainly due to treasury shares of 503,632 thousand yen (up 491,118 thousand yen
from the end of FY2023 4Q) and retained earnings of 6,074,422 thousand yen (down 178,433 thousand yen fromthe end of FY2023 4Q), partially offset by an increase of other comprehensive income of 1,243,158 thousand yen(up 351,603 thousand yen from the end of FY2023 4Q).

② Explanation on the Cash Flows
Cash and cash equivalents (hereafter, referred to as “cash”) at the end of FY2024 2Q amounted to 5,431,865
thousand yen, an increase of 1,224,979 thousand yen from the end of FY2023 4Q.
Cash flows from each activity and their significant components are as follows:(Cash flows from operating activities)
Net cash provided by operating activities from Jan. 21, 2023, to Jul. 20, 2023 amounted to 1,099,259 thousandyen (236,334 thousand yen was used in operating activities in the same quarter of FY2023).
This is mainly attributable to the increased depreciation of 374,741 thousand yen (355,447 thousand yen in thesame quarter of FY2023) and increase in changed amount of accounts payable to 741,739 thousand yen (decrease inchanged amount of accounts payable to 304,872 thousand yen in the same quarter of FY2023), partially offset bydecreased “Profit before tax” to 470,571 thousand yen (1,100,947 thousand yen in the same quarter of FY2023).
(Cash flows from investing activities)
Net cash used in investing activities from Jan. 21, 2023, to Jul. 20, 2023 amounted to 396,183 thousand yen(376,955 thousand yen net cash was used in investing activities in the same quarter of FY2023). This is mainly
attributable to 317,772 thousand yen of acquisition payment for tangible assets (278,926 thousand yen in the samequarter of FY2023).

-5-

(Cash flows from financing activities)
Net cash provided by financing activities from Jan. 21, 2023, to Jul. 20, 2023 amounted to 639,008 thousand yen(416,820 thousand yen net cash was provided by investing activities in the same quarter of FY2023).
This is mainly attributable to a net increase in short-term loan of 1,140,970 thousand yen (925,698 thousand yen in
the same quarter of FY2023), partially offset by 492,465 thousand yen cash disbursement for the acquisition oftreasury stocks (None in the same quarter of FY2023).
(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.

-6-

2. Quarterly Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
FY2023 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 LIABILITIES-7-

FY2024 2Q(As of Jul. 20, 2023)

4,206,885

5,431,865

2,690,448

3,210,946

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

582,012
5,237,728
549,407
1,545,332
796,704△143,275
17,210,721

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

3,777,746
1,136,609
345,911
1,276,908
6,537,176

51,722
459,309511,032

34,515504,182
538,697

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

318,006
201,981
1,150,769△18,602
1,652,154
8,728,028
25,938,749

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

3,188,355
1,379,809
5,066,466
135,960
300,948
25,084
1,496,875
11,593,498

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

457,043
13,637
239,833
555,194
1,265,709
12,859,208

(Thousands of yen)
FY2023 4Q(As of Jan. 20, 2023)
NET ASSETS
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
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-8-

FY2024 2Q(As of Jul. 20, 2023)

3,043,623
3,099,197
6,252,855△12,514
12,383,162

3,043,623
3,098,907
6,074,422△503,632
11,713,321

140,290

165,613△7,052751,031
7,284

25,276
978,31073,957

891,554

1,243,158

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

943
122,118
13,079,541
25,938,749

(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
Dividends 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 sales of non-current assets
Total extraordinary gains
Extraordinary losses
Loss on retirements of non-current assets
Loss on sales 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 2Q(From Jan. 21, 2022,
to Jul. 20, 2022)
11,022,284
6,070,931
4,951,352
4,165,137
786,215

FY2024 2Q(From Jan. 21, 2023,
to Jul. 20, 2023)
10,687,644
5,957,448
4,730,196
4,343,957
386,238

3,863
2,496
22,262
269,009
63,773
361,405

3,180
2,856
22,21780,19958,635167,090

36,242
1,961
10,756
48,961
1,098,660

57,736276
15,094
73,107480,221

2,287
2,287

8,641
8,641

－
－
－
－
1,100,947
384,762
32,400417,163683,784
4,479
679,305472
1,170
16,64818,292
470,571292,503△50,125
242,377
228,194
3,151
225,043-9-

(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 2Q(From Jan. 21, 2022,
to Jul. 20, 2022)
683,784

FY2024 2Q(From Jan. 21, 2023,
to Jul. 20, 2023)
228,194

19,11825,32374,602622,246△3,699712,267

32,329232,72166,672357,046

1,396,052
1,378,301
17,751

585,240
576,646
8,593- 10 -

(3) Quarterly Consolidated Statement of Cash Flows(Quarterly Consolidated Statement of Cash Flows, Cumulative)(Thousands of yen)

FY2023 2Q(From Jan. 21, 2022,
to Jul. 20, 2022)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Goodwill amortization
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on retirement of property, plant andequipment and intangible assets
Impairment losses
Decrease (increase) in accounts receivable
Decrease (increase) in inventory
Decrease (increase) in other current assets
Increase (decrease) in accounts payable
Increase (decrease) in other current liabilities
Increase (decrease) in unpaid consumption tax
Increase (decrease) by other operating activities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Increase (decrease) by other investing activities
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) from short-termborrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Increase (decrease) by other financing activities
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -FY2024 2Q(From Jan. 21, 2023,
to Jul. 20, 2023)

1,100,947
355,447
5,845

470,571374,741
5,636

6,078

3,022

4,592
△6,35936,242
32,466△2,057△6,03757,736
1,919

－

472

－
△366,822△748,385△2,612△304,872△50,962
23,65925,016110,2826,359△35,787△317,190

16,648△441,056△28,160
224,607741,739△37,688
56,371
17,9781,456,445
6,037△58,640△304,584△236,334

1,099,259△278,926△317,772－

8,989△79,884△160△17,983△91,109△156
3,865△376,955△396,183

925,698

1,140,970－△21,1402,928－△403,110△87,555

500,003△18,000
976△492,465△403,476△88,999

416,820

639,008

326,160△117,103

129,689
5,600,181
5,729,871

1,224,979
4,206,885
5,431,865

(4) Notes to Quarterly Consolidated Financial Statement(Note on Going Concern): None
(Note on Significant Change in Equity Capital):
The Company repurchased 700,000 shares of treasury stocks in accordance with a resolution of the Board of
Directors on March 3, 2023. As a result, treasury stocks at the end of FY2024 2Q amounted to 503,632 thousand
yen, an increase of 492,465 thousand yen from the end of FY2023 4Q.

12