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.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 [Japanese GAAP]May 15, 2024
Listed company name

HURXLEY CORPORATION

Code No.

7561

URL https://www.hurxley.co.jp/

Representative

Title:

Chief Executive Officer

Tatsuya Aoki (Name)

Contact

Title:

General Affairs Manager

Masaya Nakano

Scheduled date of ordinary general
meeting of shareholders

East listed stock exchange

TEL 06-6376-8088

Scheduled date of commencement ofJune 19, 2024

June 20, 2024

dividend payment

Submitting a security report schedule date June 20, 2024
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing (for analysts): Yes(Amounts are rounded down to the nearest million yen)
Consolidated Financial Results for the Year Ended March 31, 1.2024 (April 1, 2023-March 31, 2024)(1)Consolidated operating results (comulative)(Percentages represent year-on-year changes.)

Net sales

Operating profit

Profit attributable to owners ofparentNet Income

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31,
2024

46,761

31.3

2,436

66.8

2,588

63.9

1,601

52.8

As of March 31, 2023

35,613

12.3

1,460

33.4

1,579

14.5

1,047

7.1

(NOTE)Comprehensive
incomeYear ended March 31,
2024

1,882

Millions(51.9%)
of yenPer share
Net Income

As of March 31, 2023

Diluted earnings
Net income per share

Year ended March 31,2024
As of March 31, 2023

1,238

Millions(41.2%)
of yenShareholders' equity
Net income margin

Total assets
Ordinary income ratio

Net sales
Operating income
margin

Yen

Yen

%

%

%

86.87

86.76

6.9

4.0

5.2

56.91

4.7

2.7

4.1

56.94

(Reference) Equity in earnings ofYear ended March 31,

affiliates

2024

△97

Millions

As of March 31, 2023

of yen△24

Millionsof yen(2)Consolidated Financial Position
Total assets

Net assets

Net assets per share

Millions of yen%

Yen

64,39824,15537.5

1,307.32

38.6

1,226.10

Year ended March 31,2024
As of March 31, 2023
Reference: Shareholders' equity

Equity ratio

Millions of yen

58,514
Year ended March 31,
2024

22,562

24,153

Millions

As of March 31, 2023

of yen22,559Millionsof yen(3)Consolidated Cash Flows
Operating activities
Cash Flows

Investing activities
Cash Flows

Financing activities
Cash Flows

Cash and cash equivalents period
At end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

7,008△6,153

1,981

14,210

1,675△7,9836,241

11,374

Fiscal year-end

Total dividends
amount(Total)Year ended March 31,2024
As of March 31, 2023
2.Cash dividends

Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Total

Dividend payout
ratio(Consolidated)

Ratio ofdividends to net
assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

As of March 31, 2023

-

9.00

-

9.00

18.00

331

31.6

1.5

Year ended March 31, 2024

-

9.00

-

15.00

24.00

443

27.7

1.8

Year ending March 31, 2025
(Forecast)

-

13.00

-

13.00

26.00

-1-

26.7

Consolidated Forecasts for the Fiscal Year Ending March 3.2025 (April 1, 2024 to March 31, 2025)(Percentages indicate year-on-year changes)
Net sales

Operating profit

Millions ofyen%

Second quarter (cumulative)

21,400

Full year

49,000Attributable to owners ofparent"Ordinary profit

Millions ofyen%Millions of
yen

%

0.5

700

4.8

2,450

△21.5

950

0.6

2,850

-2-

Per share
Net Income

Millions of
yen

%

Yen

△10.5

750

△10.8

40.59

10.1

1,800

12.4

97.43

※ Notes(1)Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in the scope of consolidation): None
New:-(Company name:-), Excluded:-(Company name:-)(2)Changes in accounting policies and changes or restatement of accounting estimates△ Changes in accounting policies due to revision of accounting standards: None
△ △ Changes in accounting policies other than the above: None
△ Changes in accounting estimates: None
△ Restatement of revisions: None
(3)Number of shares outstanding (common shares)△ Number of shares outstanding at the end of the period

Year ended March(including treasury stock)

19,050,064

31, 2024
Year ended March
31, 2024△ Number of treasury shares at the end of the period

Year ended March△ Average number of shares during the period

As of March 31,

es

2023

Shar
574,850es

As of March 31,
2023

Shar

As of March 31,

es

2023

18,431,922

31, 2024

Shar

22,050,064
3,650,850
18,399,211

Shar
es
Shar
es
Shar
es

(Reference) Summary of Non-consolidated Financial Results
Non-consolidated results for the year ended March 31, 1.2024 (April 1, 2023 to March 31, 2024)(1)Non-Consolidated Results of Operation(Percentages represent year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Year ended March 31,
2024

1,236

43.8

499

120.1

1,002

236.7

829

140.0

As of March 31, 2023

859

△90.8

227

△31.2

297

△38.4

345

△49.1

Per share
Net Income

Diluted earnings
Net income per share
Yen

Yen

Year ended March 31,
2024

44.99

44.93

As of March 31, 2023

18.78

18.77

(2)Non-consolidated financial position
Total assets

Equity ratio

Net assets per share

Millions of yen%

Yen

18,942

11,89262.8

643.0663.1

601.09Year ended March 31,2024
As of March 31, 2023
Reference: Shareholders' equity

Net assets

Millions of yen

17,538Year ended March 31,
2024

11,89011,071Millionsof yenAs of March 31, 2023

11,068Millionsof yen※ The financial results are outside the scope of audits by a certified public accountant or an auditing firm.
※ Explanations and other special notes concerning the appropriate use of business performance forecasts(Notes on forward-looking statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions deemed tobe reasonable, and do not constitute guarantees by the Company of future performance. Actual results may differ materially from the forecast depending on a range offactors.

(Notice of Formulation of Medium-Term Management Targets)
It is scheduled to be announced on June 3, 2024.

(Response to Realize Management with an Awareness of Capital Costs and Stock Prices)
It is scheduled to be announced on June 3, 2024.

-3-

○Accompanying Materials – Contents
1.Overview of Operating Results and Financial Position.
(1)Overview of Operating Results for the Fiscal Year under Review.
(2)Summary of Financial Position for the Fiscal Year under Review.
(3)Overview of Cash Flows for the Fiscal Year under Review(4)Future Outlook
2.Basic Approach to Selection of Accounting Standards
3.CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY NOTES(1)Consolidated balance sheets(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(3)Consolidated Statements of Changes in Net Assets(4)CONSOLIDATED STATEMENTS OF CASH FLOWS(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumptions)(Segment Information)(Per Share Information)(Significant Subsequent Events)-4-

1.General conditions including operating Results(1)Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, the Japanese economy showed a gradual recovery as personal consumption and inbound demand picked up due to the normalizationof socioeconomic activities accompanying the change in classification of the new coronavirus. On the other hand, the outlook remained uncertain due to a risk that a
downturn in the overseas economy could also affect the domestic economy, such as the impact of the global monetary tightening and concerns about the outlook for the
Chinese economy, in addition to a rise in prices associated with the rising prices of raw materials and energy on the back of the prolonged situation in Ukraine. In thisenvironment, our Group continued to work to secure sales and profits by promoting the independence of each business and by continuing to emphasize the policy of a "selftransformational corporate group" that combines diversity, environmental adaptability, and growth.
As a result, our consolidated results for the fiscal year under review were as follows.
Net sales were 46,761 million yen (up 31.3% year on year), operating income was 2,436 million yen (up 66.8% year on year), ordinary income was 2,588 million yen(up 63.9% year on year), and profit attributable to owners of parent was 1.601 billion yen (up 52.8% year on year).
Consolidated Financial Results (Millions of yen, %)Year ended March 31, 2024

As of March 31, 2023

ChangeNet sales

35,613

46,761

Operating profit

1,460

Ordinary profit

1,579

1,047

Year on year
11,147Up 31.3%

2,436

975

Up 66.8%

2,588

1,009

Up 63.9%

1,601

553

Up 52.8%

Net Income that profit
attributable to owners ofparentResults by business segment are as follows.
(Net Sales by Segment) (Millions of yen, %)Year ended March 31, 2024

As of March 31, 2023
Takeout food businessStore Assets &Solutions business
Logistics and food processing
business
Other
Total
Adjustments (Eliminations
and Corporate)
Total

ChangeYear on year

16,79916,88788

Up 0.5%

11,842

15,764

3,922

Up 33.1%

9,277

16,4997,221

Up 77.8%

481

852

370

Up 77.0%

38,40150,004

11,603Up 30.2%△2,787△3,243△456―

35,613

46,761

11,147Up 31.3%(Operating Income by Segment) (Millions of yen, %)Year ended March 31, 2024

As of March 31, 2023
Takeout food businessStore Assets &Solutions business
Logistics and food processing
business
Other
Total
Adjustments (Eliminations
and Corporate)
Total

ChangeYear on year

257

259

1

Up 0.5%

1,691

1,956

264

Up 15.6%

212

673

460

Up 216.8%

481

852

370

Up 77.0%

2,643

3,741

1,097

Up 41.5%△1,183△1,304

△121

―

1,460

2,436

975

Up 66.8%-5-

△ Takeout food businessIn the takeout boxed lunch business, the Group operates the Hokka Hokka Tei, which advocates "making products even faster." It also operates a business that responds
to a wide range of food situations, including the development of dishes to meet demand for various parties, events, and ceremonies.
During the fiscal year under review, while energy and raw material prices continued to soar, the pass-through of cost increases also proceeded steadily, and external sales
such as sports and music events also drove sales. Demand for catering also showed a significant recovery.
Hokka Hokka Tei launched seasonal menus that are popular every year, such as the Gyu Sukiyaki Bento and the Chuka Ankake series. We also launched new products
targeting young consumers, such as the Yangnyom Chicken Bibimbap Bento, Shiokaraage Bento, and the Nanbam Takana Bento, and new products targeting new customers.
These products have been very popular.
In terms of digital sales promotion, we aggressively implemented measures to acquire followers at the official SNS (X. Instagram・LINE) and reached the point ofacquiring 250000 followers per year. In July 2023, the Company renewed its own "Hokka App" app. With the feature of "Mobile Order," which enables the distribution of
discount coupons, advance orders, and online payments, membership is steadily growing. In Uber Eats and Demae-can delivery services, we expanded the service coverageand introduced it, and sales continued to grow. In conjunction with digital sales promotions, we also implemented a receipt coupon, which is the first attempt at a store, anda scratch lottery campaign, which led to attracting customers to shops.
In the catering business, sales have increased significantly in the catering division and have recovered to the same level as before Corona's excesses. We plan to increase
sales further by continuing to strengthen sales for acquiring new projects.
In the catering division, the recovery in demand for large-scale party projects was conspicuous. Sales of EC websites, which have been growing since last year, remained
steady, reflecting the continued acquisition of repeat customers as well as new customers. We will continue to strengthen e-commerce and strive to generate residual incomesin this market.
The Ceremony Division is also showing signs of recovery, albeit with a slight increase.
As a result, net sales in the take-out boxed lunches business were ¥16,887 million (an increase of 0.5% year on year) and operating income was ¥259 million (an increaseof 0.5% year on year).
△ Store Assets & Solutions business
Below are the businesses that are being developed in the Store Asset & Solution Business. a～E. The information will be divided into the following four categories.
a. Solutions for restaurant operators, such as store leasing, store construction, and staffing services (store business)
1. Increase commercial real estate value through store leasing, etc., and provide investment opportunities (store real estate business)
U. IT management solutions to improve the operation and management of confectionery stores and bakeries
E. Party and event equipment rental
During the fiscal year under review, the normalization of economic activity progressed and the recovery of inbound tourists against the backdrop of the yen's depreciation.
This was a year of recovery in demand for restaurants and other services. On the other hand, raw material, utility and labor costs soared, and the management of the service
industry was difficult in terms of profitability. While existing stores, which lacked competitiveness and ability to pass through costs, were closed, many new stores wereopened with attractiveness and growth potential in the store properties.

<A. Store Business Activities>
With regard to store leasing, which boasts high capitalization and profitability, information on our aggressive investment policy, we proactively obtained store closure
data by ascertaining the trends of store closures by existing business partners and utilizing SNS media in order to purchase prime properties that are in high demand forstore openings, mainly for restaurants and other customers. By taking advantage of vacated facilities without removing store interior facilities after store closures, we cansocially reduce equipment disposal losses and economically reduce the cost of restoring stores to their original condition and the period of renovation work. As a professionalin store properties, we conducted legal compliance checks, and as a consultant in store management, we proposed multifaceted solutions to store operators in the areas of"people (recruiting), goods (store properties), money (financial support related to interior facilities and guarantee deposits), and information." As a result, the number ofstores under lease rose by a net 19 from the end of the previous fiscal year to 829. This foundation is the source of recurring revenue from store leasing transactions, as wellas the source of multiple transaction opportunities, such as store construction and recruitment consulting. In the recruitment consulting business, which provides solutions
to the shortage of human resources in the service industry, we managed the "V-Town" (VUITOWN, an enjoyable district), a special foreign skilled human resources
employment support service that "encounters foreign human resources who cannot be found elsewhere." We also focused on recruitment planning with an eye to the growthof companies that accept specialized foreign skilled human resources and consulting activities related to retention and training. In order to further strengthen our employment
support and recruitment consultancy pipeline in the future, we have begun efforts to develop a Japanese language education system in the host country (Southeast Asia).

(a) Activities of the store real estate business>
We focused on activities to increase the number of operating stores by combining the strengths of our store business with knowledge and skills in finance, real estate,
and construction, and by leasing buildings owned or managed under contract. We also focused on activities to increase the value of purchased real estate by improving
occupancy rates and constructing legal compliance. As a result, the number of real estate management tenants increased by 25 from the end of the previous fiscal year to141.
In the retail real estate business, the number of buildings in operation for real estate owned was 15, and the number of buildings in operation for real estate asset
management was 7. This base is a source of recurring revenue that generates revenues from rental businesses, asset management fees, and property management fees. In
addition, real estate owned is a source of flow revenues when it is sold through value-up. In the fiscal year under review, the Company delivered three real estate properties(two properties in Minato-ku, Tokyo and one property in Musashino-shi, Tokyo). As this includes large-scale properties, net sales and gross profit on sales of real estate-6-

exceeded those of the previous fiscal year, contributing to an increase in both sales and profits. In addition to working to increase the value of real estate owned in preparationfor earnings next fiscal year, in December 2023 we acquired a 10-story above-ground commercial building in the central commercial area of Sakae 3-chome in Nagoya
City, and in February 2024 we acquired a 12-story above-ground commercial building in Atsugi Station in Atsugi City, Kanagawa Prefecture, which was completed in thedevelopment fund, for leasing business.

<Activities of.IT Management Solutions Business>
The Company develops and offers ninapos, a niche-top POS checkout system that responds to the need for improved store management operations through reservation
management and sales promotion and management improvement through sales and customer data analysis, as well as software for its exclusive cart, Ninakart, mainly in
the Western-style confectionery industry. In addition to a virtuous cycle, which is often introduced at well-known stores and used by the next-generation pacifiers wholearned there at the time of independence, more than 1000 stores have introduced ninapos, which is about one-third of Western-style confectionery stores, exceeding acertain size.
We have a well-established reputation for building relationships of trust through post-sales follow up, and the business continuity rate of the companies that haveintroduced the system has been high, reaching 99.7% per year in recent years. As part of our growth strategy, we introduced this system, which contributes to improving
store management and management, not only in the confectionery industry but also in the bakery industry. We also promoted initiatives to develop markets and expand ourconsulting services to collect and effectively utilize POS data as big data.

<Activities for party and event equipment rentals>
In the fiscal year under review, the restaurant rental market was recovering in line with the revival of various parties and events, and sales were steady. We are also
focusing on improving operational efficiency and realizing an increase in earnings. We anticipate that demand for large-scale hotel and catering-related events will continue
to increase. Accordingly, we are further strengthening our focus on product mix and market analysis, investing in appropriate products and improving operational efficiency,
and preparing to meet further demand.
As a result, net sales in the Store Asset & Solution Business were 15,764 million yen (year-on-year increase of 33.1%), and operating income was 1,956 million yen(year-on-year increase of 15.6%).

End of March 2021

End of March 2022

End of March 2023 ①

End of March 2024 ②

②-①

754

757

810

829

19

56

80

116

141

25

810

837

926

970

44

(a) Number of stores withlease transactions (stores)(1)Property management
tenants (stores)(a) +(A)Stores in operation (stores)△ Logistics and food processing businessIn the Logistics and Food Processing Business, the Group is engaged in food processing and supermarkets that will be introduced into the Hokka Hokka Tei Store, theCampaign Business, which includes the contract manufacturing of OEM from convenience stores, and the Logistics Business, which is responsible for the delivery ofmerchandise, foodstuffs, etc., as well as the confectionery manufacturing business and wholesale business, including peanuts and dry fruits.
During the fiscal year under review, we have been working to expand our logistics operations, launch the Cammissory at full capacity, and take on the challenge of
new businesses. The Logistics Division is working to improve efficiency and optimize its operations, including the operation of centers for order management andinventory control, transportation between bases and store delivery, and loading/unloading, warehousing, purchasing, and storage of goods. We are steadily building up
our trust and track record in this area. We were also among the first to introduce measures for the "2024 Problem" in the transportation industry, and have alreadyestablished a system for resolving this problem. In the Cam Summary Division, the Group systematically manufactures OEM products for approximately 20 companies,
including supermarkets and convenience stores, and poultry products for more than 40 business partners as a spot, through strong cooperation with the Sales Division,and maintains a high utilization rate.
In addition, as a new business, we developed new flavors for our own products, such as fresh foodstuffs, using local foodstuffs, specialty foodstuffs, seasonal foodstuffs,
and popular foodstuffs throughout the country, and promoted a wide variety of ideas and perspectives. These promotions contributed to sales growth.
In the confectionery manufacturing division, sales were driven by sales of standard products, which remained robust, and the number of stores introducing otherproducts was decided at the same time. As a result, the number of stores introducing products and the number of orders increased steadily, and sales, mainly at supermarkets
and drugstores, remained strong. In addition, an increase in the number of foreign tourists has led to demand for inbound tourist products, which is returning to the scaleof sales before the corona crisis. The number of requests to develop PB products has also increased, and this is a good news for further sales improvement in the future.
Sales of the popular product "dried potatoes (produced in Ibaraki Prefecture)" grew throughout the year, mainly at high-end supermarkets, which are our main
customers. In addition, amid continuing rises in the prices of imported raw materials due to the yen's depreciation, transportation charges, energy and other factors, theprice of raw materials for Chiba Prefecture's flagship "peanut" products also declined slightly, and the full-year plan for the cost of sales ratio has been maintained at thatlevel.
As a result, the Logistics and Food Processing Business recorded net sales of ¥16,499 million (up 77.8% year on year) and operating income of ¥673 million (up216.8% year on year).

-7-

(2)Overview of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year under review were 64,398 million yen, up 5,883 million yen from the end of the previous fiscal year. This was mainly due to anincrease in cash and deposits and property, plant and equipment associated with borrowings.
Total liabilities were 40,243 million yen, an increase of 4,290 million yen from the end of the previous fiscal year. This was mainly due to an increase in borrowings.
Net assets increased by ¥1,592 million from the end of the previous fiscal year to ¥24,155 million. This was mainly due to the recording of income attributable to ownersof parent.

(3)Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter referred to as "cash") at the end of the fiscal year under review increased by 2,836 million yen from the end of the previous fiscal
year to 14,210 million yen.
The status of each cash flow for the current consolidated fiscal year and its factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥7.008 billion. This was mainly due to income before income taxes and minority interests of 2,391 million yen,depreciation and amortization of 1,157 million yen, and a decrease in inventories, which are real estate for sale, of 2,655 million yen.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities was ¥6,153 million. This was mainly due to purchase of fixed assets of 6,800 million yen and proceeds from sales of investment
securities of 9.103 billion yen.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥1,981 million. This was mainly due to proceeds from long-term loans payable of 7,110 million yen, repayments ofloans payable of 4.607 billion yen, and cash dividends paid of 331 million yen.
(4)Future Outlook
The domestic economy is expected to normalize and demand for food is expected to expand. However, uncertainty over the future is expected to continue for thetime being due to soaring energy and raw material prices caused by unstable global conditions, rising labor costs, and exchange rate fluctuations. Consequently, there
are concerns about downside risks to consumer spending, particularly for individuals.
In light of this environment, the consolidated results forecast for the year ended March 31, 2025 was as follows.
Consolidated Financial Results (Millions of yen, %)Year ended March 31, 2025
ChangeYear on year

Net sales

49,0002,239

Operating profit

2,450

14

Up 4.8%Up 0.6%

Ordinary profit

2,850

262

Up 10.1%

Net Income that profit attributable to owners of parent

1,800

199

Up 12.4%△ Takeout food business
We anticipate that the take-out boxed lunches business will evolve into an increasingly essential service for consumers against the backdrop of a decrease in the numberof household members, a declining birthrate and aging population, the advancement of women into society and an increase in the employment rate, and the contemporarysocial situation, such as an increase in single-person households.
With the slogan of "Building the Hokkaido Hokkaitei is even faster," the Hokkaido Hokkaitei will seek to differentiate itself from competitors by delivering its flavor
and taste more quickly to customers, and to pursue the provision of food that can only be made from the Hokkaido Hokkaitei. In store operations, we will continue torespond to consumer needs by improving efficiency through the promotion of mobile orders and each delivery service. In addition, we will steadily win large-scale orders
for various events in anticipation of the 2025 Osaka-Kansai Expo. In our efforts to protect the global environment, we will continue to reduce water and CO2 by using
thinner plastic boxed lunch containers and unwashed rice, introduce wooden spoons, and make paper chopstick bags. Through these efforts, we aim to create value for ourcustomers and contribute to a sustainable society.
In the restaurant business, we plan to acquire contractors for rental meeting rooms and funeral halls, which will lead to increased sales, and to a UP in the order rate fromEC websites through the renewal of our website. We will further expand our market share in the industry by acquiring survivor incomes in line with the decline in thenumber of small-scale catering service providers and collaborating with other catering service providers.

-8-

△ Store Assets & Solutions business
In March 2025, the gross incomes on the sales of property are expected to decrease as compared to March 2024, when large-scale properties were handed over. However,in the fiscal year ending March 2025, revenues from the replacement of large-lot tenants in the first quarter will be the underlying factor, and we expect steady growth in
the number of operating stores and other business base stocks. With regard to the increase in the number of stores in operation, under the slogan "Tomorrow's Street, MoreFun," the Group will not only increase the number of store lease transactions in which the properties leased from property owners are utilized by restaurant operators andother store operators, but also work to revitalize the district by leasing properties owned in the store real estate business or by increasing the number of real estate management
tenants in the store properties that are operated by entrusted real estate management from third parties.
In store leasing, demand is expected to recover in domestic service consumption, including inbound demand, and demand for service-related stores, which attract people,
is expected to remain firm. Amid growing interest in beauty, health, and reuse due to the diversification and individuality of food, the Group will focus on activities that
accurately grasp the trends in store openings in formats that grow in niche fields, as well as restaurants in its core customer base, faster than other companies. At the sametime, the Group will focus on identifying trends in store closures and acquiring introducing customers based on relationships of trust and identifying trends in store closuresthrough providing solutions to the management issues of existing business partners. In order to improve the quality and efficiency of these activities, the front department
will adopt appropriate methods for activities in which inexperienced persons and managerial levels work together like Buddy, while the front support department will
promote activities that link promising information discovered using digital marketing to the front department.
In the store real estate business, while focusing on maintaining high occupancy rates for commercial real estate commissioned by real estate funds and other sources, theGroup will promote property management commissioned sales, including master leases, toward building owners and customers of real estate owned that it expects tooperate. The business model that aims for profit from sales after raising value by leveraging strengths such as legal compliance construction and store leasing is sustainable,
and we will secure sales flow revenue while increasing stable earnings by accumulating outsourced stock. In the business environment related to the increase in the valueof real estate owned, while the leasing-related business is generally the same as in the previous fiscal year, in the construction-related business, there are concerns that
construction costs will continue to rise and that the construction period will be prolonged. The nine-story above-ground construction project in Akihabara, which began
demolishing the old building in November 2023, has already concluded a construction contract. Construction is scheduled to begin in April 2024, completed in March 2025,
and operations are scheduled to begin in the first half of fiscal 2025. If we change our view on the rise in construction costs, we can say that the existing buildings that haverecently been completed have a value equivalent to the rise in construction costs rather than book value, and we will utilize them in our sales activities. When purchasing
real estate, the Group will focus on purchasing locations and sizes that are easy to envision for value-up scenarios through store leasing and other means, in light of trends
in opening stores in the service industry, where people gather as well as restaurants, and pay attention to shortening the inventory turnover period until such sales. We will
also keep in mind the shortening of the period from the vacation of existing tenants to the securing of successor tenant rents. In the Recruitment Consulting Services
Business, stable earnings are expected to increase due to stock growth in designated skilled foreign recruitment consulting for store operators. In addition, flow success fees
will be accumulated through job change support activities that respond to the recent robust demand for non-food and beverage recruitment, particularly in the consulting
industry.
In IT Management Solution Business, we plan to introduce POS cash register system ninapos to the bakery industry in the first half of the fiscal year ending March 2025.
In addition to the Western confectionery industry, which is the foundation of our customers, we expect earnings to grow in the future as we cultivate the bakery industry. In
consulting, which is accompanied by activities to improve the performance of the companies that have installed the system, we will promote actual activities for existing
contractors and increase the number of contractors. For the exclusive cart "NINAKART," we will use external EC consulting to improve the system itself and strengthen
proposals to business partners, and aim to be a business-growth partner that co-creates e-commerce that connects customers' confectionery stores and bakery stores with
consumers.

△ Logistics and food processing businessIn the Cambodian Summary Division, we will focus even more on expanding existing transactions and acquiring new business partners. We will reform the production
system at Campaign Summit, which is increasingly operating rates, and work to build a management system that looks ahead to the next generation.
In the confectionery manufacturing division, we expect sales of dried potatoes, which grew rapidly, to fall to one stage. However, we are promoting sales proposals forretail store-specific products (retaining-type products). In light of the successive closures of regional department stores and the decline in the number of undergroundgrocery sales floors at department stores, which are our main sales floors, we are developing new sales channels that are not constrained by conventional sales channels,
such as overseas exports, food for outdoor stores, and pet food.

2.Basic Approach to Selection of Accounting Standards
In order to ensure comparability with other companies in the same industry in Japan, our Group has adopted Japanese accounting standards.

-9-

3.Consolidated Financial Statements and Major Notes(1)Consolidated balance sheets(Millions of yen)
End of previous fiscal year
(As of March 31, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

AssetsCurrent assets
Cash and deposits

11,68014,611

Notes and accounts receivable-trade, and contract assets

2,683

3,068

Merchandise and supplies

7,087

7,574

Raw materials and supplies

543

729

Other

1,543

1,704

Allowance for doubtful accounts

△25

△19

23,512

27,668

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

6,939

9,241

Machinery, equipment and vehicles, net

932

1,108

Tools, furniture and fixtures, net

181

191

13,26012,258Land
Leased assets, net

45

115

Construction in progress

72

132

21,432

23,047

Total property, plant and equipment
Intangible assets
Leasehold interests in land

3,480

3,480

Goodwill

662

490

Other

218

201

4,360

4,172

3,721

4,190

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

5

3

4,827

4,785

Deferred tax assets

241

134

Long-term accounts receivable - other

537

420

Retirement benefit asset

89

106

Other

298

277

△513

△408

Leasehold and guarantee deposits

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 10 -

9,209

9,509

35,002

36,72958,51464,398(Millions of yen)
End of previous fiscal year
(As of March 31, 2023)

Current consolidated fiscal year
(As of March 31, 2024)

Liabilities
Current liabilities
Accounts payable - trade

2,905

Current portion of bonds payable

3,574

24

7

Short-term borrowings

3,507

1,965

Current portion of long-term loans payable

1,924

5,155

Accounts payable - other

389

1,012

Income taxes payable

278

591

Accrued consumption taxes

171

184

Provision for bonuses

250

285

Other

2,487

2,830

Total current liabilities

11,93915,606

Non-current liabilities
Bonds payable6558

Long-term borrowings

18,693

19,507Long-term guarantee deposits

4,483

4,203

Deferred tax liabilities

55

55

Retirement benefit liability

21

20

Asset retirement obligations

508

530

Other

187

262

24,013

24,63635,95240,243

Share capital

4,036

4,036

Capital surplus

3,971

1,904

Retained earnings

16,96018,229Treasury shares△2,501△391

Total shareholders' equity

22,467

23,779Valuation difference on available-for-sale securities

92

373

Total accumulated other comprehensive income

92

373

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets- 11 -

2

2

22,562

24,15558,51464,398

(2)Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Profit and Loss Statement)(Millions of yen)
End of previous fiscal year
(April 1, 2022
To March 31, 2023)

Current consolidated fiscal year
(April 1, 2023
To March 31, 2024)

Net sales

35,613

46,761

Cost of sales

23,091

31,510Gross profit

12,522

15,251

Selling, general and administrative expenses

11,061

12,814

Operating profit

1,460

2,436

Non-operating income
Interest income

10Dividend income

95

108

Gain on sale of investment securities

46

164

Fee and commission received

29

87

Rental income

20-

Business consignment contract cancelation profit

29

20

Subsidy income

50

1

Other

121

116

Total non-operating income

394

500

Interest expenses

61

93

Rental expenses

0

-

-

3

Commission expenses

107

100

Share of loss of entities accounted for using equity method

24

97

Other

82

53

Total non-operating expenses

276

348

1,579

2,588

Non-operating expenses

The business consignment contract cancelation is
disadvantageous.

Ordinary profit
Extraordinary income
Profit on sale of non-current assets

04Gain on sale of investment securities-

47

Settlement income

15

11

Compensation income

16

28

Other

12

0

Total extraordinary income

45

92

Extraordinary losses
Loss on sale of non-current assets

01

Loss on retirement of non-current assets

70

74

Impairment loss

83

206

Other

16

8

Total extraordinary losses

170

289

Income before income taxes

1,453

2,391

Income taxes - current

372

841

Income taxes - deferred

33

△50

Total income taxes

405

790

Net Income

1,047

1,601

Net Income that profit attributable to owners of parent

1,047

1,601

- 12 -

Consolidated Statements of Comprehensive Income(Millions of yen)
End of previous fiscal year
(April 1, 2022
To March 31, 2023)
Net Income

Current consolidated fiscal year
(April 1, 2023
To March 31, 2024)
1,047

1,601

187

281

3

0

Other comprehensive income
Valuation difference on available-for-sale securities
Share of other comprehensive income of entities company forusing equity method
Total other comprehensive income
Comprehensive income

191

281

1,238

1,882

1,238

1,882

(Comprehensive income attributable to)Comprehensive profit attributable to owners of the parent- 13 -

(3)Consolidated Statements of Changes in Net Assets
Previous fiscal year (April 1, 2022, to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Opening balance

Capital surplus
4,036

Retained earnings
3,971

Treasury shares

16,207

Total shareholders' equity△2,501

21,714

Change during the year
Dividend of surplus

△294

△294

Net Income that profit attributable toowners of parent

1,047

1,047

Purchase of treasury stock△0△0

Disposal of treasury stock00

Net change in items other thanshareholders' equity
Total changes during the year
Closing balance

-

-

752

△0

752

4,036

3,971

16,960△2,501

22,467

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Opening balance△99

Share acquisition rights

Total accumulated othercomprehensive income△99

Total net assets

6

21,621

Change during the year
Dividend of surplus△294

Net Income that profit attributable toowners of parent

1,047

Purchase of treasury stock△0

Disposal of treasury stock0

Net change in items other thanshareholders' equity

191

191

△3

188

Total changes during the year

191

191

△3

941

Closing balance

92

92

2

22,562- 14 -

Current fiscal year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Opening balance

Capital surplus
4,036

Retained earnings
3,971

Treasury shares

16,960Total shareholders' equity△2,501

22,467

Change during the year
Dividend of surplus

△331

△331

Net Income that profit attributable toowners of parent

1,601

1,601

Purchase of treasury stock

Disposal of treasury stock

Retirement of treasury stock

△9

52

42

△2,0582,058-

Net change in items other thanshareholders' equity
Total changes during the year
Closing balance-△2,067

1,269

2,110

1,312

4,036

1,904

18,229△391

23,779

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Opening balance92

Share acquisition rights

Total accumulated othercomprehensive income
92

Total net assets

2

22,562

Change during the year
Dividend of surplus△331

Net Income that profit attributable toowners of parent

1,601

Purchase of treasury stock

Disposal of treasury stock

42

Retirement of treasury stock-

Net change in items other thanshareholders' equity

281

281

△0

280

Total changes during the year

281

281

△0

1,592

Closing balance

373

373

2

24,155- 15 -

(4)Consolidated Statements of Cash Flows(Millions of yen)
End of previous fiscal year
(April 1, 2022
To March 31, 2023)

Current consolidated fiscal year
(April 1, 2023
To March 31, 2024)

Cash flows from operating activities
Income before income taxes

1,453

2,391

Depreciation

932

1,157

Amortization of goodwill

114

171

Loss (gain) on sale of non-current assets

0△3

Loss on retirement of non-current assets

70

74

Impairment loss

83

206

Loss (gain) on sale of investment securities

△46

△212

Increase (decrease) in allowance for doubtful accounts

△43

△110

Increase (decrease) in provision for bonuses

6

35

△96

△109

61

93

24

97

Decrease (increase) in trade receivables

△422

△384

Decrease (increase) in inventories

△774

2,655

Increase (decrease) in trade payables

218

668

Increase (decrease) in unearned revenue

64

64

Increase (decrease) in accounts payable - other

229

229

Increase (decrease) in accrued expenses

178

178

Increase (decrease) in allowance deposit

182

383

△113

△65

Decrease (increase) in consumption taxes refund receivable

△12

12

Other

△30

46

Subtotal

2,079

7,582

Income taxes paid

△431

△610

Income taxes refund

28

36

1,675

7,008

Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodIncrease (decrease) in consumption taxes receivable (△increased)

Cash flows from operating activities
Net cash provided by (used in) investing activities
Interest and dividends received
Purchase of property, plant and equipment

96

110

△5,523△6,762

Proceeds from sale of property, plant and equipment

248

247

Purchase of intangible assets

△85

△37

Purchase of investment securities

△252

△574

103

913

△2,668-Proceeds from sale of investment securities
For shares of subsidiaries resulting in change in scope of
consolidation
PurchaseAmount of security money of pure increase and decrease

53

49

Other

43

△98

△7,983△6,153

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Interest paid

△62

△93

Net increase (decrease) in short-term borrowings

817△1,542

Proceeds from long-term borrowings

7,340

7,110

Repayments of long-term borrowings△1,486△3,065△17△24

Redemption of bonds
Purchase of treasury shares
Dividends paid

0

-

△294

△331

Other

△55

△72

Net cash provided by (used in) financing activities

6,241

1,981

Net increase (change) in cash and cash equivalents

△65

2,836

Cash and cash equivalents at beginning of period

11,44011,374- 16 -Cash and cash equivalents at fiscal year-end

11,374- 17 -

14,210(5)Notes fo consolidated financial statements(Notes on the Going Concern Assumption)
Not applicable.
(Segment Information)[Segment Information]
1.The outline of any Reporting Segment
The reportable segments of the Group are the constituent units of the Group for which separate financial information is available and which are subject to periodic
review by the Board of Directors for the purpose of deciding the allocation of management resources and evaluating business performance.
The businesses of our group consist of segments by products and services that are aggregated based on the economic characteristics of the related businesses ofeach operating company.
Our Group consists of three reportable segments: the Taking-Back Box Business, the Store Asset & Solution Business, and the Logistics and Food Processing
Business.
The business operations of each reportable segment are as follows.

Business Segment

Main products and business
Production and sales of boxed lunches and prepared foods

Takeout food business

Provision of foodstuffs, etc.
Catering service
Solutions for store operators, such as store leasing
Enhancement and sales of store real estateStore Assets & Solutions business

HR recruitment solutions
IT management solutions
Party and event equipment rental
Operation of distribution centers, corporate logistics, etc.

Logistics and food processing business

Food processing
Confectionery manufacturing
Wholesale

2.Calculation method for net sales, income or loss, assets and other items by reportable segment
The accounting methods for reportable business segments are generally the same as those described in "Basis of Presenting Consolidated Financial Statements."
Intersegment sales and transfers are based on prevailing market prices.

- 18 -

3.Information on net sales, income or loss, assets and other items by reportable segment, and breakdown of revenue
Previous fiscal year (April 1, 2022, to March 31, 2023)(Millions of yen)
Reportable Segments
Take-out
Bento-box
business

Logistics and foodStore Assets &Processed Foods
Solutions businessBusiness

Other(NOTE)1

Total

Total

Net sales
Goods that are transferred at a point in time

16,656

4,690

7,401

28,748-28,748

29

-

-

29

-

29

16,685

4,690

7,401

28,777-

28,777

1

6,833

-

6,834

-

6,834

Sales to customers

16,686

11,5247,401

35,612-35,612

Intersegment sales

112

318

1,876

2,307

481

2,788

16,79911,842

9,277

37,919481

38,401

257

1,691

212

2,162

481

2,643

Adjusted amount(NOTE)2

Consolidated
Financialstatements
Amount recorded(NOTE)3

Goods that are transferred at a point in time1

28,749Goods transferred over a certain period of time-

29

Revenue from contracts with customers

1

28,778

Goods transferred over a certain period of time
Revenue from contracts with customers
Other income (Note 4)

Total
Segment profit (loss) (△)

Net sales

Other income (Note 4)

-

6,834

Sales to customers

1

35,613

Intersegment sales
Total
Segment profit (loss) (△)△2,788-△2,78735,613△1,183

1,460(NOTE) 1. "Others" is a business segment that is not attributable to reportable segments and is a group support business.
2.△ of ¥1.183 billion in adjustments to segment income includes an elimination △ of ¥6 million for inter-segment transactions and a △ of ¥1.176 billion forcorporate expenses that are not allocated to the respective reportable segments.
3.Segment income is adjusted with operating income in the consolidated statements of income.
4.Other income includes rental income in accordance with Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and transfers of real estate(including real estate trust beneficiary interests) subject to the Practical Guidance on Accounting for Transferors' Liquidation of Real Estate Utilizing
Special Purpose Companies (ASBJ Report No. 15).

- 19 -

Current fiscal year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable Segments
Take-out
Bento-box
business

Logistics and foodStore Assets &Processed Foods
Solutions businessBusiness

Other(NOTE)1

Total

Total

Net sales
Goods that are transferred at a point in time
Goods transferred over a certain period of time
Revenue from contracts with customers
Other income (Note 4)
Sales to customers

16,7594,770

14,52436,054-36,054

28

-

-

28

-

28

16,7874,770

14,52436,082-

36,082

6

10,657

14

10,678-

10,678

16,794

15,428

14,53846,761-

46,761

93

336

1,960

2,390

852

3,243

16,887

15,764

16,49949,151852

50,004

259

1,956

673

2,888

852

3,741

Adjusted amount(NOTE)2

Consolidated
Financialstatements
Amount recorded(NOTE)3

Goods that are transferred at a point in time-

36,054

Goods transferred over a certain period of time-

28

Revenue from contracts with customers-

36,082Other income (Note 4)-

10,678

Sales to customers-

46,761

Intersegment sales△3,243-△3,243

46,761△1,3042,436Intersegment sales
Total
Segment profit (loss) (△)

Net sales

Total
Segment profit (loss) (△)(NOTE) 1. "Others" is a business segment that is not attributable to reportable segments and is a group support business.
2.△ of ¥1.304 billion in adjustments to segment income includes an elimination △ of ¥2 million for inter-segment transactions and a △ of ¥1.302 billion forcorporate expenses that are not allocated to the respective reportable segments.
3.Segment income is adjusted with operating income in the consolidated statements of income.
4.Other income includes rental income in accordance with Accounting Standard for Lease Transactions (ASBJ Statement No. 13) and transfers of real estate(including real estate trust beneficiary interests) subject to the Practical Guidance on Accounting for Transferors' Liquidation of Real Estate Utilizing
Special Purpose Companies (ASBJ Report No. 15).

- 20 -

[Related Information]
Previous fiscal year (April 1, 2022, to March 31, 2023)
1.Information for each product and service
This information is omitted because the same information is disclosed in Segment Information.
2.Information for each region(1)Net sales
Not applicable because there are no overseas sales.
(2)Property, plant and equipment
Not applicable because there are no property, plant and equipment located outside Japan.
3.Information for each major customer
This information is omitted because there are no external customers that account for 10% or more of net sales in the consolidated statements of income.
Current fiscal year (from April 1, 2023 to March 31, 2024)
1.Information for each product and service
This information is omitted because the same information is disclosed in Segment Information.
2.Information for each region(1)Net sales
Not applicable because there are no overseas sales.
(2)Property, plant and equipment
Not applicable because there are no property, plant and equipment located outside Japan.
3.Information for each major customer
This information is omitted because there are no external customers that account for 10% or more of net sales in the consolidated statements of income.
[Information on impairment loss on non-current assets by reportable segment]
Previous fiscal year (April 1, 2022, to March 31, 2023)(Millions of yen)

Impairment loss

Take-out
Bento-box businessStore Assets &Solutions business

Logistics and foodprocessing business

74

9

-

Take-out
Bento-box businessStore Assets &Solutions business

Logistics and foodprocessing business

139

66

-

Corporate andeliminations

Other
-

Total
-

83

Current fiscal year (From April 1, 2023 to March 31, 2024)(Millions of yen)

Impairment loss

Corporate andeliminations

Other
-

Total
-

206

[Information on Amortization of Goodwill and Unamortized Balance by Reportable Segment]
Previous fiscal year (April 1, 2022, to March 31, 2023)(Millions of yen)
Corporate andTake-out
Bento-box businessStore Assets &Solutions business

Logistics and foodprocessing business

Amortization of current
term

-

74

40

-

-

114

Closing balance

-

216

445

-

-

662

Other

Total

eliminations

Current fiscal year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Corporate andTake-out
Bento-box businessStore Assets &Solutions business

Logistics and foodprocessing business

Amortization of current
term

-

74

97

-

-

171

Closing balance

-

142

348

-

-

490

- 21 -

Other

Total

eliminations

(Per Share Information)
End of previous fiscal year
(April 1, 2022
To March 31, 2023)

Current consolidated fiscal year
(April 1, 2023
To March 31, 2024)

Net assets per share

1,226.10 yen

1,307.32 yen

Net income per share

56.94 yen

86.87 yen

Diluted EPS

56.91 yen

86.76 yen

(NOTE)The basis for calculating net income per share and diluted net income per share is as follows.
End of previous fiscal year
(April 1, 2022
To March 31, 2023)

Current consolidated fiscal year
(April 1, 2023
To March 31, 2024)

Net income per share
Profit attributable to owners of parent (Millions of yen)Amount not attributable to common shareholders
Profit attributable to owners of parent related to common stock(millions of yen)
Average number of common shares outstanding during the period(thousands of shares)

1,047

1,601

-

-

1,047

1,601

18,39918,431

-

-

8

22

Diluted EPS
Adjustment to profit attributable to owners of parent(1,000,000 yen)
Increase in common shares (thousands)
Subscription rights to shares (thousands of shares)(8)

Explanation of residual stock not included in calculation of diluted net(22)
By resolution of the Board of Directors on

income per share due to lack of dilutive potential

January 29, 2024-

Share acquisition rights
Number of stock acquisition rights: 530
Common shares 53,000 shares(Significant subsequent events)
Not applicable- 22 -