Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended June 30, 2023
(Based on Japanese GAAP)
August 10, 2023
Company name:
Advance Create Co., Ltd.
Stock exchange listing: Tokyo, Sapporo, Fukuoka
Stock code:
Representative:

8798
PresidentURL

https://www.advancecreate.co.jp/Yoshiharu Hamada

Inquiries:

Senior Executive Director and General
Takeshi Kushibiki
Manager, Corporate Administration Division

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 10, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
NoTEL

06-6204-1193(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended June 30, 2023 (from October 1, 2022 to June 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended June 30, 2023
8,635
(2.1)
(584)
–(724)–(669)–
Nine months ended June 30, 2022
8,823
5.2
1,618
0.2
1,550
1.0
1,007
(1.7)
Earnings per share

Diluted earnings per share

Yen(30.57)46.04

Nine months ended June 30, 2023
Nine months ended June 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2023
As of September 30, 2022

Net assets

Millions of yen
11,76812,491Equity ratio

Millions of yen
5,739
7,145%
48.8
57.2

2. Cash dividends
Annual dividends per share

Year ended September 30, 2022
Year ending September 30, 2023
Year ending September 30, 2023
(Forecast)

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
15.00
17.50

Yen––

Yen
17.50

Total
Yen
32.50

17.50

35.00

3. Forecast of consolidated financial results for the year ending September 30, 2023 (from October 1, 2022 to September 30, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
12,0001.2(310)–(500)–(480)–(21.92)

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended June 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Yes

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023

22,557,200 shares As of September 30, 2022

22,557,200 shares

Number of treasury shares at the end of the period
As of June 30, 2023

655,107 shares As of September 30, 2022

689,178 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended June 30, 2023

21,884,696 shares Nine months ended June 30, 2022

221,882,615 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2022

As of June 30, 2023

AssetsCurrent assets
Cash and deposits

2,273,548

1,068,166Accounts receivable - trade
Accounts receivable - other

2,231,307
2,261,020

2,254,238
1,962,084

Income taxes receivable
Other–
1,090,946

234,275
1,149,940

Total current assets

7,856,821

6,668,704

1,073,502

1,025,256

900,317

1,163,497

Non-current assets
Property, plant and equipment
Intangible assets
SoftwareOther

102,359

123,307

1,002,676

1,286,804

Investment securities
Guarantee deposits

119,164
694,850

147,422855,965

Insurance funds
Deferred tax assets

764,910379,101

443,222659,381

Total intangible assetsInvestments and other assets

Other
Total investments and other assets
Total non-current assets
Deferred assets

588,880

674,100

2,546,906

2,780,091

4,623,086

5,092,153

11,213

7,160

12,491,121

11,768,018

Accounts payable - trade
Short-term borrowings

85,042–

158,762900,000

Current portion of bonds payable
Income taxes payable

200,000
342,449

200,000
96,954

Accounts payable - other
Deposits received

1,110,741
395,611

1,716,596
397,617

Lease liabilities
Provision for bonuses

110,000
178,002

128,458
98,174Other583,255

337,095

3,005,103

4,033,659

Long-term borrowings
Bonds payable

256,250
400,000

230,320200,000

Lease liabilities
Retirement benefit liability

704,300
416,197

705,531427,896

Asset retirement obligations
Other

304,576
259,227

308,999
122,460

Total non-current liabilities

2,340,551

1,995,206

5,345,655

6,028,866

Total assets
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities

Total liabilities3(Thousands of yen)
As of September 30, 2022

As of June 30, 2023

Net assets
Shareholders' equity
Share capitalCapital surplus

3,158,703
585,325

3,158,703
585,325

Retained earnings
Treasury shares

3,908,226(552,474)

2,449,655(518,511)

Total shareholders' equity

7,099,781

5,675,173

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

45,684

63,979Total accumulated other comprehensive income

45,684

63,979Total net assets
Total liabilities and net assets

4

7,145,466

5,739,152

12,491,121

11,768,018

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)
Nine months ended
June 30, 2022
8,823,722(Thousands of yen)
Nine months ended
June 30, 2023
8,635,895

Cost of sales

1,904,900

2,870,368

Gross profit

6,918,821

5,765,526

Selling, general and administrative expenses

5,300,534

6,350,314

Operating profit (loss)

1,618,287(584,787)

1,737

2,325

Guarantee commission received
Gain on sales of gold bullion

6,878
19,061

6,971–

Foreign exchange gains
Other

25,406
4,311

–
4,624

Total non-operating income

57,39613,921

Non-operating expenses
Interest expenses

10,314

12,929Commission expenses
Other

108,2396,212

130,696
10,175Net sales

Non-operating income
Interest and dividend income

Total non-operating expenses

124,765

153,8011,550,917(724,667)

Gain on cancellation of insurance policies

–

9,972

Total extraordinary income

–

9,972

Loss on retirement of non-current assets
Loss on termination of ESOP trust

9,957
10,925––

Loss on cancellation of insurance policies–

35,783

Total extraordinary losses

20,88235,783

Profit (loss) before income taxes

Ordinary profit (loss)
Extraordinary income

Extraordinary losses

1,530,034(750,479)

Income taxes

522,495(81,323)

Profit (loss)

1,007,538(669,156)

Profit (loss) attributable to owners of parent

1,007,538(669,156)5

Consolidated statements of comprehensive income (cumulative)
Nine months ended
June 30, 2022
1,007,538(Thousands of yen)
Nine months ended
June 30, 2023
(669,156)(47,612)

18,294(47,612)

18,294Comprehensive income

959,926(650,862)

Comprehensive income attributable toComprehensive income attributable to owners of parent

959,926(650,862)––

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

Comprehensive income attributable to non-controlling interests6