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 Year Ended May 31, 2023
(Based on Japanese GAAP)
July 6, 2023
Company name:

DAIKOKUTENBUSSAN CO.,LTD.

Stock exchange listing: Tokyo
Stock code:
2791
Representative:
Inquiries:

URL

http://www.e-dkt.co.jp/

Representative Director and President
Senior Managing Director

SHOJI OGAMASASHI OMURAScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

August 23, 2023
August 23, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

August 24, 2023
No

Holding of financial results meeting:

Yes

TEL

086-435-1100(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended May 31, 2023 (from June 1, 2022 to May 31, 2023)(1) Consolidated operating results
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%
Year ended May 31, 2023
242,2438.1
4,497(47.3)
4,844(45.7)
3,116(44.5)
Year ended May 31, 2022
224,150–
8,540(0.7)
8,923
1.1
5,617
1.8

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
6.5
5.4
1.9
403.23
12.8
11.3
3.8

Diluted earnings pershare

Yen
223.73403.30Year ended May 31, 2023
Year ended May 31, 2022
(2) Consolidated financial position

Total assets
As of May 31, 2023
As of May 31, 2022

Net assets

Equity ratio

Millions of yen
97,194
81,930Millions of yen
49,51846,802

Cash flows fromoperating activities
Millions of yen
7,610
10,406

Cash flows frominvesting activities
Millions of yen(17,889)(9,620)Net assets per share%
50.8
56.9

Yen
3,543.59
3,348.84(3) Consolidated cash flows

Year ended May 31, 2023
Year ended May 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
9,370
8,630
897
9,540

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended May 31, 2022
Year ended May 31, 2023
Year ending May 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

29.00
29.00

29.00
29.00

403
403

7.2
13.0

0.9
0.8

–

0.00

–

29.00

29.00110.9

3. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)
Net sales
Millions of yen
Six months ending
November 30, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

124,800

6.9

2,700

151.6

2,700

102.7

1,600

107.5

114.86257,200

6.2

6,100

35.6

6,100

25.9

3,700

18.7

265.63

4. Notes(1) Changes in significant subsidiaries during the year ended May 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2023

14,474,200 shares As of May 31, 2022

14,474,200 shares

Number of treasury shares at the end of the period
As of May 31, 2023

545,471 shares As of May 31, 2022

545,354 shares

13,928,796 shares Year ended May 31, 2022

13,928,856 shares

Average number of shares during the period
Year ended May 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2022

As of May 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

9,540
123

8,630
151

Merchandise and finished goods
Work in process

7,118
152

8,370
146

Raw materials and supplies
Other378
4,050

593
6,201

Allowance for doubtful accounts

(203)

(203)

21,16023,89056,80075,198

Accumulated depreciation(31,299)(34,988)

Buildings and structures, net

25,50140,209Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

3,675

8,019

Accumulated depreciation(2,442)(3,501)

1,232

4,517

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

13,50915,723

Accumulated depreciation(9,694)(11,010)

Tools, furniture and fixtures, net

3,814

4,713

Land

8,558

9,357

Leased assets
Accumulated depreciation

522
(256)

408
(196)

Leased assets, net

266

212

Construction in progress
Other

8,036
807

460
756

Accumulated depreciation

(338)

(334)

Other, net

468

421

47,87859,892

335

344

474
6473
–

Construction assistance fund receivables
Deferred tax assets

1,516
4,404

1,376
4,830

Guarantee deposits
Other

4,829
1,381

5,1291,316

Allowance for doubtful accounts

(57)

(59)

Total investments and other assets

12,556

13,06760,77073,304

81,93097,194

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

Total non-current assets
Total assets3

(Millions of yen)
As of May 31, 2022

As of May 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

14,523

16,749

Short-term borrowings
Lease liabilities

2,587
96

4,601
73

Income taxes payable
Provision for bonuses

1,810
567503581

Asset retirement obligations
Other

6
6,682

–
8,193

Total current liabilities

26,27330,703

Non-current liabilities
Long-term borrowings

4,095

11,950

Lease liabilities
Deferred tax liabilities

163
136

90
119

Retirement benefit liability
Asset retirement obligations

41
3,008

41
3,397

Other

1,409

1,373

Total non-current liabilities

8,854

16,97235,12847,676

Share capital
Capital surplus

1,661
1,823

1,661
1,823

Retained earnings
Treasury shares

43,909(880)

46,621(881)

Total shareholders' equity

Total liabilities
Net assets
Shareholders' equity

46,51449,225

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

131

131

Total accumulated other comprehensive income

131

131

52
10452
108

46,80249,51881,93097,194

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
May 31, 2022

Fiscal year ended
May 31, 2023

Net sales

224,150

242,243

Cost of sales

170,098

187,755

Gross profit

54,05254,488

Salalaries allowances and bonuses
Provision for bonuses

20,048536

21,005
540

Retirement benefit expenses
Utilities expenses

78
4,053

76
5,705

Rent expenses
Depreciation

6,627
4,182

6,989
4,762

Provision of allowance for doubtful accounts
Other(0)9,985(0)
10,909Total selling, general and administrative expenses

45,511

49,990

8,540

4,497

Interest income
Dividend income

28
4

27
4

Rental income
Insurance claim income

94
155

113
122

Settlement income
Other–
199

165
87

Total non-operating income

482

520

Selling, general and administrative expenses

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

2828

Rental expenses
Loss on cancellation of rental contracts

52865
23

Provision of allowance for doubtful accounts
Other

19253

Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on tax purpose reduction entry of non-current assets
Total extraordinary losses

99

173

8,923

4,84402000200

632970–64297

Profit before income taxes

8,860

4,746

Income taxes - current
Income taxes - deferred

3,414
(175)

2,069(442)

Total income taxes

3,239

1,626

Profit

5,620

3,120

3

3

5,617

3,116

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

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income

Fiscal year ended

Fiscal year ended

May 31, 2022

May 31, 2023
5,620

3,120

410410Comprehensive income

5,662

3,120

Comprehensive income attributable toComprehensive income attributable to owners of parent

5,658

3,116

33

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended May 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,661

Retained earnings

1,823

Total shareholders'equity

Treasury shares

38,695(880)

41,300Changes during period
Dividends of surplus

(403)

(403)

Profit attributable to owners ofparent

5,617

5,617

Purchase of treasury shares

(0)

(0)

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

––

5,213

(0)

5,213

1,661

1,823

43,909(880)

46,514

Accumulated othercomprehensive
incomeValuation difference
on available-for-salesecurities
Balance at beginning of period

Share acquisitionrights90

Non-controllinginterests

46

Total net assets

100

41,537

Changes during period
Dividends of surplus(403)

Profit attributable to owners ofparent

5,617

Purchase of treasury shares
Net changes in items other thanshareholders' equity

(0)
41

6350

Total changes during period

41

63

5,264

Balance at end of period

13152

104

46,802

7

Fiscal year ended May 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

1,661

Retained earnings

1,823

Total shareholders'equityTreasury shares

43,909(880)

46,514

Changes during period
Dividends of surplus

(403)

(403)

Profit attributable to owners ofparent

3,116

3,116

Purchase of treasury shares

(0)

(0)

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

––

2,712

(0)

2,711

1,661

1,823

46,621(881)49,225

Accumulated othercomprehensive
incomeValuation difference
on available-for-salesecurities
Balance at beginning of period

Share acquisitionrights131

Non-controllinginterests

52

Total net assets

104

46,802

Changes during period
Dividends of surplus(403)

Profit attributable to owners ofparent

3,116

Purchase of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

(0)
0–

340–

32,715

131

52

108

49,5188

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

May 31, 2022

May 31, 2023
8,860

4,746

5,132
12

6,729
13

Increase (decrease) in allowance for doubtful accounts
Impairment losses

163

2297

Interest and dividend income
Interest expenses

(33)
28

(31)
28

Settlement income
Subsidy income

–(0)

(165)
(200)

Loss on tax purpose reduction entry of non-current assets
He amount of rent offset of constrution assistance fund

0–192

185

(48)

(48)

2(28)

Decrease (increase) in inventories
Decrease (increase) in other current assets(722)
129(1,461)(2,161)

Increase (decrease) in trade payables
Increase (decrease) in other current liabilities

1,138(61)

2,226
407

34
13

1733

14,742

10,591

8(24)

6(25)

Settlement received
Subsidies received

–0187
200

Income taxes paid

(4,319)(3,350)Net cash provided by (used in) operating activities

10,406

7,610(9,900)
235(17,367)
9

Purchase of intangible assetsProceeds from sale of investment securities

(81)
40

(87)
5

Payments for asset retirement obligations
Expense by payment of guarantee money paid–(201)(22)(425)

Proceeds from refund of guarantee deposits
Payments of construction assistance fund receivables

272
(30)

83
(26)

Proceeds from collection of long-term loans receivable
Other, net

50
(5)

8(67)

(9,620)(17,889)

Depreciation
Increase (decrease) in provision for bonuses

receceivables
He amount of rent off set of constrution assistance fundreceivables deposited
Decrease (increase) in trade receivables

Increase (decrease) in other non-current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Net cash provided by (used in) investing activities

9(Millions of yen)

Cash flows from financing activities
Increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

May 31, 2022

May 31, 2023
(1,200)

(150)

5,500
(2,592)

13,000(2,979)

Repayments of lease liabilitiesPurchase of treasury shares

(405)
(0)

(96)
(0)

Dividends paid

(403)

(403)

Net cash provided by (used in) financing activities

897

9,370

Proceeds from long-term borrowings
Repayments of long-term borrowings

Net increase (decrease) in cash and cash equivalents

1,683

(909)

Cash and cash equivalents at beginning of period

7,857

9,540

Cash and cash equivalents at end of period

9,540

8,630

10