Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Six Months Ended March 31, 2024
[Under Japanese GAAP]May 10, 2024
Company name:
Gakken Holdings Co., Ltd.
Stock exchange listing:Tokyo Stock Exchange
Securities code:
9470
URL:
https://www.gakken.co.jp/
Representative:
Hiroaki Miyahara, President, Representative Director
Contact:
Takashi Sawada, Corporate Officer and General Manager of Financial Strategy OfficePhone:+81-3-6431-1050
Scheduled date of filing quarterly securities report:
May 10, 2024
Scheduled date of commencing dividend payments:
Jun 24, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Six Months Ended March 31, 2024 (October 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Ordinary profit

Million yen%
Million yen%
Million yen
Six months ended
March 31, 2024
93,505
15.2
5,141
59.4
5,154
March 31, 2023
81,1741.9
3,224(25.4)
3,266(Note) Comprehensive income: Six months ended March 31, 2024: ¥2,120 million [0.0%]%

57.8(25.6)

Profit attributable toowners of parent
Million yen

1,772
1,238

Six months ended March 31, 2023: ¥2,120 million [(5.2)%]
Profit per share
Six months ended
March 31, 2024
March 31, 2023

Diluted profit per share
YenYen

41.19
28.15

40.87
27.90

(2) Consolidated Financial Position
Total assets
Million yen

As of March 31, 2024
139,358
As of September 30, 2023
136,328(Reference) Equity: As of March 31, 2024:
As of September 30, 2023:

Net assets

Equity ratio

Million yen%

54,69455,034¥52,264 million¥52,748 million

37.5
38.7

2. Dividends
Annual dividends
1st quarter-end 2nd quarter-end 3rd quarter-end
Yen

Yen

Fiscal year ended–
12.50
September 30, 2023
Fiscal year ending–
12.50
September 30, 2024
Fiscal year ending
September 30, 2024(Forecast)(Note) Revision of dividends forecast since the last announcement: None

Year-endTotalYenYenYen–

12.50

25.00

–

12.50

25.00

%

43.1(51.4)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending September 30, 2024 (October 1, 2023 to September 30,2024)
Net sales
Million yen

Operating profit%

Million yen%(% indicates changes from the previous corresponding period.)
Profit attributable toProfit per share
Ordinary profit
owners of parent
Million yen

Full year
185,000 12.76,400
3.76,600(Note) Revision of financial results forecast since the last announcement:%

1.9

Million yen%

2,700 (15.5)
NoneYen62.72* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in thescope of consolidation): None
Newly added: – (Name) –Excluded: – (Name) –(2) Application of special accounting treatments in preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024:
44,633,232 shares
September 30, 2023:
44,633,232 shares2) Total number of treasury shares at the end of the period:
March 31, 2024:
2,420,712 shares
September 30, 2023:
525,839 shares
3) The average number of shares during the period:
Six months ended March 31, 2024:
43,045,470 shares
Six months ended March 31, 2023:
44,009,834 shares
The Company has a trust-type employee shareholding incentive plan in place. The average number of shares during the period is
calculated with the number of treasury shares deducted; the number of treasury shares deducted includes the number of theCompany’s shares held under this plan by The Nomura Trust & Banking Co., Ltd. (the dedicated trust account for Gakken Employees’
Shareholding Association): 9,514 shares at the end of the six months ended March 31, 2023.
* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Note on forward-looking statements, etc.)
Financial performance forecasts and other forward-looking statements herein are based on information currently available to theCompany and certain assumptions it deems rational. The actual results may vary significantly due to various factors.

Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of September 30, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits

20,83623,769Notes and accounts receivable - trade
Merchandise and finished goods

21,9199,606

28,855
9,296

Real estate for sale
Work in process

386
2,429

767
2,407

Raw materials and supplies
Other

211
7,271

157
6,803

Allowance for doubtful accounts

(41)

(33)

62,62072,023

Buildings and structures, net
Machinery, equipment and vehicles, net

13,06456

13,041130

LandConstruction in progress

4,499
10

4,532
2

Other, net

1,557

1,790

Total property, plant and equipment

19,18919,496

Goodwill
Other

7,754
3,189

10,256
3,369

Total intangible assets

10,943

13,625Investments and other assets
Investment securities

27,64018,419Other
Allowance for doubtful accounts

16,124(190)

15,981(188)

Total investments and other assets

43,57434,212

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total non-current assets
Total assets―1―

73,707

67,335

136,328

139,358(Million yen)
As of September 30, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

6,834
6,956

8,413
5,447

Current positon of bonds payable
Current portion of long-term borrowings－10,245

6,000
9,943

Income taxes payable
Provision for bonuses

1,347
2,326

1,885
2,716

Other

16,84017,361

Total current liabilities

44,55051,767

6,000－
21,107
4,629

Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability

19,052
4,684

Other

7,006

7,158

Total non-current liabilities

36,74332,896

81,294

84,663

Share capital
Capital surplus

19,817
12,37019,817
12,368Retained earnings
Treasury shares

17,433(315)

18,655(2,196)

Total shareholders’ equity

49,306

48,645

Total liabilities
Net assets
Shareholders’ equity

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

1,857

2,221

Deferred gains or losses on hedges
Foreign currency translation adjustment

1271

(0)
199

Remeasurements of defined benefit plans

1,310

1,198

Total accumulated other comprehensive income

3,441

3,619

Share acquisition rights

229

208Non-controlling interests

2,056

2,221

Total net assets
Total liabilities and net assets―2―55,034

54,694

136,328

139,358

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Million yen)
For the Six months
ended March 31, 2023

For the Six months
ended March 31, 2024

Net sales

81,17493,505

Cost of sales

57,56767,011Gross profit

23,606

26,494

Selling, general and administrative expenses

20,381

21,353Operating profit

3,224

5,141

455

1361

18090

126

135367

301

91

156

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Other234

132

Total non-operating expenses

325

288

3,266

5,154

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

40

Gain on sale of investment securities
Other

55
882
8Total extraordinary income

68910173

175
1,085

Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on sale of investment securities

－682
58

Loss on valuation of investment securities
OtherTotal extraordinary losses

1760

743

1,412

2,591

3,834

Income taxes

1,270

1,927

Profit

1,321

1,906

Profit before income taxes

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

―3―

82

133

1,238

1,772

Quarterly Consolidated Statements of Comprehensive Income(Million yen)
For the Six months
ended March 31, 2023
ProfitOther comprehensive income

For the Six months
ended March 31, 2024

1,321

1,906

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

879
–

380
0

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

(20)
(61)

(22)
(83)

1(60)

799

214

Comprehensive income

2,120

2,120

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

2,041

1,950

79

169

―4―

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)
For the six months
ended March 31, 2024For the six months
ended March 31, 2023
Cash flows from operating activities
Profit before income taxes

2,591

3,834

1,061
1378(3)

1,381
75
566
173

626

1,020

Depreciation
Impairment losses
Amortization of goodwill
Loss (gain) on sale and retirement of property, plantand equipment and intangible assets
Loss (gain) on sale and valuation of investment
securities
Increase (decrease) in provisions
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net

139
(74)
(64)
(59)
91
(180)

298
(25)
(203)
(74)
156
(90)

(4,724)
497
1,594
(14)

(6,890)
7
1,579
(248)

Subtotal

1,860

1,560

59(90)

140(152)(1,997)
(167)

49
1,597

(1,145)(1,641)

6

1(431)
89–(379)
9,129(3,329)

7

11

414
(53)

114
(42)

(1,112)

3,864

Net increase (decrease) in short-term borrowingsProceeds from long-term borrowings

2,100
4,939

(1,509)
4,599

Repayments of long-term borrowings
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Other, net(2,035)
41
(0)
(527)
(77)

(2,869)–(2,012)
(551)
(138)

4,439
(145)

(2,481)(25)

3,014
21,672
24,687

3,014
19,09322,049Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment andintangible assets
Proceeds from sale of property, plant and equipment
and intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Subsidies received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period―5―(4) Notes to the Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes When There Are Significant Changes in Amounts of Equity)
For the Six months ended March 31, 2024
There is no relevant information.
(Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements)(Calculation of tax expenses)
Tax expenses are calculated by making a reasonable estimate of the effective tax rate after applying tax effectaccounting to profit before income taxes for the fiscal year, including the second quarter ended March 31, 2024,
and multiplying the profit before income taxes by this estimated effective tax rate.

―6―