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 Second Quarter of the Fiscal Year Ending March 2024 [Japanese GAAP]
November 14, 2023
Listed company name

HURXLEY CORPORATION

East listed stock exchange

Code No.

7561

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

Representative

Title:

Chief Executive Officer

Tatsuya Aoki (Name)

Contact

Title:

General Affairs Manager

Masaya Nakano

TEL 06-6376-8088

Scheduled date of

Scheduled date to file Quarterly

November 14, 2023

Securities Reportcommencement of dividend

December 1, 2023

payment

Preparation of supplementary material on quarterly
financial results: Yes
Holding of quarterly financial results meeting: None
(Amounts are rounded down to the nearest million yen)
Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 2024 (April 1, 2023 to September 30, 2023)(1)Consolidated Operating Results (Cumulative)(Percentages represent changes from the same quarter of the previous year.)Net sales%

Millions of yen%

Millions of yen%

Millions of yen%

21,284

33.0

891

23.3

1,061

22.5

841

37.9

15,999

14.8

723

124.8

866

58.7

609

75.3

Second Quarter of Fiscal YearEnding March 2023
incomeProfit attributable to owners ofparentProfitOrdinary profit

Millions of yen
Second Quarter of Fiscal 2024

(NOTE)Comprehensive

Operating profit

Millions

Second Quarter of Fiscal 2024

919

of yenSecond Quarter of Fiscal Year

(27.3%)

Millions

722

Ending March 2023

of yen(119.1%)

Diluted earnings
Per share
ProfitPer share
ProfitSecond Quarter of Fiscal 2024
Second Quarter of Fiscal YearEnding March 2023

Yen

Yen

45.68

45.62

33.14

-

(2)Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

Second Quarter of Fiscal 2024

61,844

23,34937.8

As of March 31, 2023

58,514

Reference: Shareholders' equity

22,562Millions ofSecond Quarter of Fiscal 2024

23,347

1st quarter-end

2nd quarter-end

yen

As of March 31, 2023

38.6
22,559Millions ofyen

2.Cash dividends
Annual dividends per share
3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

As of March 31, 2023

-

9.00

-

9.00

18.00

Year ended March 31, 2024

-

9.00
-

9.00

18.00

Year ending March 31, 2024
(Forecast)(NOTE)Revisions to the most recently announced dividend forecasts: None-1-

Forecast of Consolidated Financial Results for the Fiscal Year Ending March 3.2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millions ofyenFull year

44,500Operating profit%
25.0

Millions of
yen
1,650

Attributable to owners ofparent"Ordinary profit%
13.0(NOTE)Revisions to the most recently announced earnings forecasts: None

-2-Millions of
yen
1,750

%
10.8

Millions of
yen
1,400

Per share
Net Income

%

Yen

33.6

76.09

※ Notes(1)Significant changes in subsidiaries during the quarter under review (changes in specified subsidiaries resulting in changes in the scope of consolidation): None

(2)Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3)Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies due to revision of accounting standards: None
① ① Changes in accounting policies other than the above: None
① Changes in accounting estimates: None
① Restatement of revisions: None
(4)Number of shares outstanding (common shares)① Number of shares outstanding at the end of the period(including treasury stock)① Number of treasury shares at the end of the period① Average number of shares during the period (cumulativefrom the beginning of the fiscal year)

2Q for the year ended
March 31, 2024
2Q for the year ended
March 31, 2024
2Q for the year ended
March 31, 2024

Sha
22,050,064
res

As of March 31, 2023

22,050,064

Sha
3,606,050
res

As of March 31, 2023

3,650,850

Sha
18,411,614
res

As of September 30,
2023

18,399,209

Sha
res
Sha
res
Sha
res

※ Quarterly financial results are not subject to quarterly review by a certified public accountant or 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
to be reasonable, and do not constitute guarantees by the Company of future performance. Actual results may differ materially from the forecast depending on a range
of factors.

-3-

○Accompanying Materials – Contents

1.Qualitative Information on Quarterly Financial Results for the Period under Review.

2(1)Explanation of Results of Operations......

2(2)Description of Financial Position......................

5(3)Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information.

5

2.Quarter Consolidated Financial Statements and Major Notes........

6(1)Consolidated balance sheets ........................................................................................................。

6(2)Consolidated statements of income (cumulative) and consolidated statements of comprehensive income ..............................................................。

8

Consolidated statements
Second Quarter of Fiscal 2016 ••8

Consolidated statements of income (cumulative) and of comprehensive income
Second Quarter of Fiscal 2016 ••9(3)Consolidated statements of cash flows ...................................................................................。

10(4)Notes to Quarter Consolidated Financial Statements.....

11(Notes on Going Concern Assumptions).....

11(Notes in the Event of Significant Changes in the Amount of Shareholders' Equity).....

11

-4-

1.Qualitative Information on Quarterly Financial Results(1)Explanation on operating Results
During the consolidated cumulative second quarter, the domestic economy continued to recover moderately, mainly in personal consumption.
On the other hand, the downturn in overseas economies posed risks to the domestic economy, such as the impact of the global monetary tightening and concerns
about the outlook for the Chinese economy, in addition to price rises associated with soaring raw material and energy prices on the back of the prolonged Ukrainiansituation, and conditions remained to be monitored closely. Against this backdrop, our Group has continued to promote the independence of each of our businesses
in anticipation of the uncertain future and strive to achieve a "self-transformational corporate group" that combines diversity, environmental adaptability and growth.
On December 1, 2022, the Group changed its reportable segments from the first three quarters of the previous fiscal year to the Takeout food business, the Store
Asset & Solution Business, and the Logistics and Food Processing Business. The purpose of this change was to ensure consistency with business strategies as Inaba
Peanz Co., Ltd., Yagai Foods Co., Ltd., and i Factory Co., Ltd. joined the Group.
Segment information for the second quarter of the previous fiscal year has been restated to reflect the new segment classification.

(Consolidated Results) (Millions of yen)
Second Quarter ofSecond Quarter of Fiscal 2024

Fiscal 2023

Year-on-year change

Net salesYear on year

15,99921,284

5,284

Up 33.0%

Operating profit

723

891

168

Up 23.3%

Ordinary profit

866

1,061

194

Up 22.5%

609

841

231

Up 37.9%

Profit attributable to owners of parent
ProfitResults by business segment are as follows.
(Net Sales by Segment) (Millions of yen)
Second Quarter of Fiscal 2024

Second Quarter of
Fiscal 2023
Takeout food business

169

Up 2.1%

6,610

6,075

①535

Down 8.1%

2,411

8,119

5,708

Up 236.7%

247

363

116

Up 47.0%

17,377

22,836

5,458

Up 31.4%①1,378①1,551①173-

15,99921,284

5,284

Up 33.0%

Solutions business
Logistics and food processing business
Other industries
Total

Corporate)
Total

Year on year

8,277

Store Assets &Adjustments (Eliminations andYear-on-year change
8,108(Operating Income by Segment) (Millions of yen)
Second Quarter of Fiscal 2024

Second Quarter of
Fiscal 2023
Takeout food businessYear-on-year changeYear on year

①6

103

110

-

971

564

①407

Down 41.9%

Logistics and food processing business

22

269

247

-

Other industries

247

363

116

Up 47.0%

1,234

1,301

66

Up 5.4%

①511

①409

101

-

723

891

168

Up 23.3%

Store Assets &Solutions business

Total
Adjustments (Eliminations andCorporate)
Total

-5-

① Takeout food businessIn the Takeout food business, in the current fiscal year, we are developing the Hokkaitei with a new slogan "Make Faster." In addition, we are engaged in abusiness that responds to a wide range of food situations, including the development of dishes to meet demand for various parties, events and ceremonies. In thesecond quarter of the fiscal year under review, while energy and raw material prices continued to rise, large-scale orders for large-scale events, concerts, sports
watching, and other events showed signs of recovery.
Hokka-Hokka-Tei has launched a limited-time menu, including "Seafood Oroshi Tendon," which offers eight tempura items including shrimp, squid, horsemackerel, and crab-flavored kamaboko, "Bifte Xylies," which is a midsummer treat, and "Tsukimi Tendon," which features boiled egg tempura. In August, welaunched the "Exorcise Harapeko! Campaign" in collaboration with the second season of the TV anime "Jujutsu Kaisen," targeting Nori Stamina Box lunch andNori Stamina Special. The campaign was very well received, especially by the Z generation. In terms of digital sales promotion, we continued to aggressively
implement measures to acquire followers in SNS(X (formerly Twitter)・Instagram・LINE), and the number of official X (formerly Twitter) followers topped
820000. In July, we renewed our official app "Hokka App" to make it easier to use. We will also actively introduce measures to increase mobile order volume on
our apps, which will lead to improved convenience at our stores.
In addition, sales in the catering business have increased significantly and are expected to continue to grow steadily in the future. Specifically, after-sales Corona's
revival of corporate social gatherings, academic societies, social gatherings in rental conference rooms, and other parties were very strong, contributing to sales. In
addition, the catering business has almost recovered to the pre-Corona level due to others such as international soccer plays in national sports stadiums, large-scaleorders for sporting events, and increased party sales, which have led to orders as a result of carefully responding to inquiries from EC websites. In the ceremonybusiness, although not as much as the catering business, the number of orders received and the unit price per case, such as the overnight notice system and legal
cases, have been on an upward trend, and although it is gradual, we are steadily recovering. Shibuchika Tokyu Shibuya Food Show's permanent boxed lunch andside dish sales store "IKUE" continued stable sales of its main product "luxury lunch boxes." We are also continuing to sell to high-end supermarkets and to EC
websites under the "IKUE" brand. We have also begun selling OEM products.
Net sales in the take-out boxed lunches business were 8,277 million yen (up 2.1% from the same quarter of the previous year), and operating income was 103
million yen (operating loss of 6 million yen in the same quarter of the previous year).

① Store Assets & Solutions businessIn the Store Asset & Solution Business, the Group provides solutions for restaurants and other businesses, IT management solutions for confectionery stores, andcommercial real estate value-up planning, development, operation, management, leasing, and investment opportunities. It also rents equipment for parties and eventsand leases real estate, centered on the retail network group that uses sustainable store properties that reuse store interior fixtures to "make tomorrow's town and moreenjoyable." During the consolidated cumulative second quarter, while energy prices, raw material prices, and personnel expenses for store operations soared,
economic activities normalized partly due to a change in classification of new-type coronavirus infectious diseases, and service consumption and general eventswere generally on a recovery track.
<Solutions for store openings and closures and human resources>
Tenpo Ryutsuu Net,Inc, Ltd. responded to the needs of restaurants and other business operators by increasing the number of stores in operation by accurately
capturing growing demand in niche fields. As a result, the number of stores under lease rose to 818. We have supported store openings by providing comprehensive
solutions for people, goods, money, and information, such as store management staffing services (people), provision of properties in good locations (goods), ourproprietary store opening funding support system (money), and provision of a monthly sales forecasting system (information) that does not require entry of historical
data for the first time in the restaurant industry. We have also provided financial support by depositing and liquidating guarantee deposits and purchasing store
interior fixtures. The Group is focusing on the solution business for store operators, such as store leasing, which was established more than 20 years ago and whosestrengths include its lead customer network and store sales data. This business is expected to grow even in the market due to its favorable capital profitability. In
August, we relocated and expanded the Yokohama Branch of Store Distribution Net Co., Ltd. to the front of Yokohama Station with the aim of strengthening thedevelopment of promising markets and improving human capital productivity. In parallel with capital investment and human capital investment, we are also focusing
on improving business processes. In recruitment consulting, the Company operates VUI TOWN, a service that supports the employment of foreign skilled humanresources, which "meets with foreign human resources, which cannot be found elsewhere," to dispel concerns among companies that accept foreign human resources
with special skills and provide consulting to realize hiring plans that look ahead to the future. Partly as a result, the number of designated skilled foreign personnel
recruited by Store Distribution Net Co., Ltd. reached a record high. We expect to expand the number of Skills No. 2, which is unlimited for a period of five years,
in the future. Given that it is a social situation that makes it easier for foreigners to draw up career plans for personnel training managers, store managers, and otherpositions, we are also taking into consideration the support for overseas store openings by employers that utilize foreigners and the independent support for foreign
workers.
<Store real estate solutions>
We are enhancing the value of real estate by combining the strengths of our store business with knowledge and skills in finance, real estate, and construction. At
the mid-rise commercial building TRN Meidaimae, which is owned in Tokyo, we secured successor tenants with no downtime after tenants vacated on the first floor,
revised long-standing renewal rents to new market rents, and conducted legal compliance work on replacements after increasing revenues from the previous year,
thereby realizing improved safety. The number of real estate management tenants totaled 118 as a result of activities to increase the number of stores in operationby providing store properties for managed store buildings. With regard to real estate funds that provide investment advice, the contract asset value has remained at¥10.8 billion, of which the development fund for real estate in front of Hon-Atsugi Station is currently constructing a 12-story building above ground through-6-

Construction Management. Our business model for realizing income by selling after leveraging our strengths in legal compliance construction and store leasing issustainable. In addition to the conventional method of forming a private real estate fund to serve as a customer, we focused on selling real estate to a customer basethat favors real estate in kind. As a result, we sold one real estate property (Musashino-shi, Tokyo) in the second quarter of the consolidated year under review.
<IT Management Solutions>
The Company develops and provides software for ninapos, a POS cash register system that supports the business of confectionery stores, and Ninakart, an
optional specialized cart. In addition to a virtuous circle in which many well-known stores are introduced, and the next-generation patience that was trained there isa virtuous circle that is used at the time of independence, the number of stores introducing ninapos exceeds 1000 and boasts about one-third of the market shares ofWestern-style confectionery stores, which exceeds a certain size. We have a well-established reputation for building relationships of trust through after-sales followup, and we boast a high business continuity rate of 99.7% per year in the most recent year for the companies that have introduced the system. This is a POS cash
register system that not only manages bookings but also spreads sales analysis and customer data analysis throughout the world. It contributes to improved
management in the industry. The effects of this management improvement are being developed in markets not only in the confectionery store industry but also inthe bakery industry. We have also begun efforts to expand our consulting-services in order to effectively utilize POS data as big data.
<Rental of parties and event goods>
In the party and event equipment rental business, business-related in-house parties are on a slight recovery trend, and the demand for large numbers of hotelrelated parties has recovered significantly. The name recognition of the Kansai Branch of First Mate Co., Ltd., which began operations in May, is also expanding,and sales in the Kansai region are growing steadily.
In the Store Asset & Solution Business, net sales were 6,075 million yen (down 8.1% year-on-year) and operating income was 564 million yen (down 41.9%
year-on-year).

(Reference)(a)Store lease
Number of stores

End of March 2021

End of March 2022

End of March 2023 ①

End of Sep. 2023 ②

②-①

754

757

810

818

8

56

80

116

118

2

810

837

926

936

10

(b)Real estate
management
Number of tenants(stores)(a+b) Stores in operation(stores)① Logistics and food processing businessIn the Logistics and Food Processing Business, the Group engages in the production of peanuts, dried fruit, and other confectionery, as well as the wholesale
business, in addition to the distribution of merchandise, foodstuffs, and merchandise, including the processing of foodstuffs that will be introduced into the Hokka
Hokka Tei Store.
In the second quarter of the current fiscal year, the Group is working to expand logistics operations, to bring the Camry to full operation, and to take on thechallenge of new businesses. As a logistics business, the Group is engaged in a variety of operations, including the operation of centers for ordering and inventory
control, frozen and chilled delivery between bases, and storage for incoming and outgoing shipments, in order to achieve efficiency and optimization and accumulate
trust and a track record. In the Camry Summary business, we have been strengthening cooperation with our sales divisions. We have maintained a high occupancy
rate by manufacturing OEM products at supermarkets, convenience stores, and major restaurant ramen chains, and by developing and standard chicken products
using local foodstuffs, specialty products, and specialty products in various parts of the country. As a new business, we have begun to develop our original products.
In addition, the Group is focusing on acquiring new frozen small-lot delivery operations and procuring and supplying meat and marine products that meet the needsof business partners, thereby contributing to the stabilization of the earnings structure.
In the confectionery manufacturing industry, sales remained strong, mainly at supermarkets and drugstores, driven by continued strong sales of products and thesteady introduction of new products launched in September. Further, a further increase in the number of foreign tourists is reflected in the increase in sales of inboundtourist products, which is a positive factor behind the increase in sales. We anticipate that this strong performance will be sustained for the foreseeable future, atleast through the end of the year. Furthermore, we are making steady progress in switching from raw materials, which were affected by the yen's depreciation, to
low-priced raw materials. We have also completed our response to price increases for some products, which has resulted in a gradual improvement in earnings. In
addition, we have expanded our production lines and replenished our workforce, and have completed the strengthening of our production and shipment systems. We
are well prepared for the holiday season. In addition, sales of dried sweet potato using famous potato in Ibaraki Prefecture, where Yagai Shokuhin Co., Ltd. islocated, increased to 130% of the previous year. One of the factors behind this is that the main target luxury supermarket buyers are attracting attention as healthy
foods that do not contain additives, and that they are products that can be sold at high unit prices. In addition, by expanding sales based on dried sweet potato as astarting point, we have been able to revive sales in existing sales channels. In seafood, the price increase for raw materials is large, and we will work to secure
incomes by gradually reviewing the sales price.
In the Logistics and Food Processing Business, net sales were 8,119 million yen (up 236.7% from the same quarter of the previous year) and operating income-7-was 269 million yen (up 247 million yen from the same quarter of the previous year).

(2)Explanation of Financial Position①Financial position
Total assets at the end of the second quarter under review were 61,844 million yen, up 3,329 million yen from the end of the previous fiscal year. This was mainly
due to an increase in deposits from borrowings and the acquisition of company-owned warehouse properties.
Total liabilities increased by 2,542 million yen from the end of the previous fiscal year to 38,495 million yen. This was mainly due to an increase in borrowings
and trade payables.
Net assets were 23,349 million yen, an increase of 787 million yen from the end of the previous fiscal year. This was mainly due to the recording of quarterly net
income attributable to owners of the parent.

①Cash Flows
Cash and cash equivalents (hereinafter "cash") at the end of the second quarter of the current fiscal year increased by 2,397 million yen from the end of theprevious fiscal year to 13,772 million yen.
The status of each cash flow and its factors for the second quarter of the current fiscal year are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 2,284 million yen, compared with 1,353 million yen provided in the same quarter of the previous year. This was
mainly due to quarterly income before income taxes of 1,123 million yen and depreciation and amortization of 537 million yen.
(Net cash provided by (used in) investing activities)
Net cash used in investing activities was 1.406 billion yen, compared with 1,833 million yen used in the same quarter of the previous fiscal year. This was mainly
due to the purchase of property, plant and equipment of ¥1,632 million.
(Cash flows from financing activities)
Net cash provided by financing activities was 1,520 million yen, compared with 565 million yen provided in the same quarter of the previous year. This was
mainly due to proceeds from loans payable of 2,967 million yen and repayment of loans payable of 1,212 million yen.

(3)Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
There are no changes to the consolidated earnings forecasts for the full year announced on May 15, 2023 in the Consolidated Financial Results for the Fiscal Year
Ended March 31, 2023.

-8-

2.Quarter Consolidated Financial Statements and Major Notes(1)Consolidated balance sheets(Millions of yen)
End of second quarter of the fiscal year
under review(As of September 30, 2023)

End of previous fiscal year
(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits

11,68014,071

Notes and accounts receivable-trade, and contract assets

2,683

2,936

Merchandise and supplies

7,087

9,998

Raw materials and supplies

543

719

1,543

1,460

Other
Allowance for doubtful accounts
Total current assets

①25

①26

23,512

29,159Non-current assets
Property, plant and equipment
Buildings and structures, net

6,939

7,087

Machinery, equipment and vehicles, net

932

1,118

Tools, furniture and fixtures, net

181

181

13,26010,618

Leased assets, net

4553

Construction in progress

72

50

21,432

19,109Land

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

3,480

3,480

Goodwill

662

576

Other

218

203

4,360

4,260

3,721

3,842

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

5

4

4,827

4,824

Deferred tax assets

241

239

Long-term accounts receivable - other

537

544

Retirement benefit asset

89

89

Other

298

290

Allowance for doubtful accounts

①513

①518

Total investments and other assets

9,209

9,316

35,002

32,68558,514

61,844

Leasehold and guarantee deposits

Total non-current assets
Total assets-9-

(Millions of yen)
End of second quarter of the fiscal year
under review(As of September 30, 2023)

End of previous fiscal year
(As of March 31, 2023)
Liabilities
Current liabilities
Accounts payable - trade

2,905

Current portion of bonds payable

3,669

24

12

Short-term borrowings

3,507

5,074

Current portion of long-term loans payable

1,924

2,022

Accounts payable - other

389

897

Income taxes payable

278

287

Accrued consumption taxes

171

147

Provision for bonuses

250

249

Other

2,487

2,463

Total current liabilities

11,93914,824Non-current liabilities
Bonds payable65

65

Long-term borrowings

18,693

18,782Long-term guarantee deposits

4,483

4,051

Deferred tax liabilities

55

55

Retirement benefit liability

21

19

Asset retirement obligations

508

517

Other

187

179

24,013

23,67135,95238,495

Share capital

4,036

4,036

Capital surplus

3,971

3,966

Retained earnings

16,96017,644

Treasury shares①2,501①2,471

Total shareholders' equity

22,467

23,176

Valuation difference on available-for-sale securities

92

171

Total accumulated other comprehensive income

92

171

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- 10 -

2

2

22,562

23,34958,514

61,844

(2)Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(Quarter Consolidated Statements of Income)(Consolidated Cumulative Second Quarter)(Millions of yen)First six-month period of previous fiscal
year(April 1, 2022
To September 30, 2022)

First six-month period of fiscal year underreview(April 1, 2023
To September 30, 2023)

Net sales

15,99921,284

Cost of sales

10,392

14,170Gross profit

5,607

7,113

Selling, general and administrative expenses

4,883

6,222

723

891

Operating profit
Non-operating income
Interest income

00Dividend income

7569

Gain on sale of investment securities-

53

Fee and commission received

14

53

Rental income

119Business consignment contract cancelation profit

60

6

Subsidy income

32

1

Other

44

62

Total non-operating income

239

255

Interest expenses

24

42

Rental expenses

0-Commission expenses

36

13

Non-operating expenses

The business consignment contract cancelation is disadvantageous.

2-

Share of loss of entities accounted for using equity method

10

8

Other

21

21

Total non-operating expenses
Ordinary profit

96

86

866

1,061

Extraordinary income
Profit on sale of non-current assets

00Gain on sale of investment securities-

47

Compensation income-

28

Settlement income

9

11

Other

2

0

Total extraordinary income

1287Extraordinary losses
Loss on sale of non-current assets

01

Loss on retirement of non-current assets

24

11

Impairment loss

-

10

Other

7

3

31

25

Profit before income taxes

Total extraordinary losses

847

1,123

Income taxes - current

147

302

Income taxes - deferred

90

①20

Total income taxes

237

282

Profit609

841

Net profit attributable to owners of parent

609

841

- 11 -

Quarter Consolidated Statements of Comprehensive Income(Consolidated Cumulative Second Quarter)(Millions of yen)First six-month period of previous fiscal
year(April 1, 2022
To September 30, 2022)

First six-month period of fiscal year underreview(April 1, 2023
To September 30, 2023)

609

841

108

80

4

①1

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

113

78

722

919

722

919

(Comprehensive income attributable to)Comprehensive income attributable to owners of parent- 12 -

(3)Consolidated statements of cash flows(Millions of yen)First six-month period of previous fiscal
year(April 1, 2022
To September 30, 2022)

First six-month period of fiscal year underreview(April 1, 2023
To September 30, 2023)

Profit before income taxes

847

1,123

Depreciation

447

537

Amortization of goodwill

37

85

Loss (gain) on sale of non-current assets

00Loss on retirement of non-current assets

24

11

Impairment loss-

10

Loss (gain) on sale of investment securities

-

①100

Cash flows from operating activities

Increase (decrease) in allowance for doubtful accounts①5

6

Increase (decrease) in provision for bonuses①1①0

Interest and dividend income

①76

①69

Interest expenses

24

42

Share of loss (profit) of entities accounted for using equity method

108Decrease (increase) in trade receivables

20

①252

Decrease (increase) in inventories

164

265

Increase (decrease) in trade payables

183

763

Increase (decrease) in unearned revenue

43

64

Increase (decrease) in accounts payable - other

173

229

1

178

Increase (decrease) in accrued expenses
Increase (decrease) in consumption taxes receivable (① increased)

①49

106

Decrease (increase) in consumption taxes refund receivable

①71

①24

Other

①114

①416

Subtotal

1,660

2,571

Income taxes paid

①340

①321

Income taxes refund
Cash flows from operating activities

33

34

1,353

2,284

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

76

70①1,892①1,632

Proceeds from sale of property, plant and equipment

114

141

Purchase of intangible assets

①17

①20

Purchase of investment securities

①128

①425

Proceeds from sale of investment securities-

445

Amount of security money of pure increase and decrease

21

15

Other

①7

①1

①1,833①1,406

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

①24

①42

Net increase (decrease) in short-term borrowings

①550

1,567

Proceeds from long-term borrowings

2,200

1,400

Repayments of long-term borrowings①898①1,212

Redemption of bonds

①5

①12

Purchase of treasury shares①0-

Dividends paid

①128

①165

Other

①26

①15

Net cash provided by (used in) financing activities

565

1,520

Effect of exchange rate change on cash and cash equivalents--

Net increase (change) in cash and cash equivalents

85

2,397

Cash and cash equivalents at beginning of period

11,44011,374

Cash and cash equivalents at end of period

11,525

13,772- 13 -

(4)Notes to Quarter Consolidated Financial Statements(Notes on the Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
Not applicable.

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