Consolidated Financial Results
for the Six Months Ended June 30, 2023
[Japanese GAAP]
July 26, 2023
Company name: SHIKOKU KASEI HOLDINGS CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Code number: 4099
URL: https://www.shikoku.co.jp/eng/
Representative: Mitsunori Watanabe, President
Contact: Yoshiaki Ando, Director in charge of Corporate Management
Phone: +81-877-22-4111
Scheduled date of filing quarterly securities report: August 10, 2023
Scheduled date of commencing dividend payments: September 5, 2023
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled(Amounts less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended June 30, 2023 (from January 1, 2023 to June 30,2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2023
30,880
–
3,786
–
4,720
–
3,212
–
September 30, 2022
31,297
23.9
4,371
15.2
5,480
33.1
3,707
26.0
(Note) Comprehensive income: Six months ended June 30, 2023: ¥5,361 million [– %]Six months ended September 30, 2022: ¥3,084 million [4.9%]
Basic earnings
per share
Six months ended
June 30, 2023
September 30, 2022

Diluted earnings
per share

Yen

Yen

61.22
69.29

–
–

The Company has changed the account closing date from March 31 to December 31 beginning with the fiscal year
ended December 31, 2022. Accordingly, the previous second quarter period (from April 1, 2022 to September 30, 2022),
which is a period for comparison, does not match the period of the second quarter under review (from January 1, 2023 toJune 30, 2023). Therefore, the percentage changes from the previous corresponding period are not presented.

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

83,671
As of June 30, 2023
125,800
81,806
As of December 31, 2022
117,176(Reference) Equity: As of June 30, 2023: ¥82,986 million
As of December 31, 2022: ¥81,323 million

66.0
69.4

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end

Fiscal year ended December 31,
–
13.00
2022
Fiscal year ending December 31,
–
14.00
2023
Fiscal year ending December 31,
2023 (Forecast)(Note) Revisions to the cash dividends forecast most recently announced: Yes

Total

Yen

Yen

Yen

–

13.00

26.00

–

14.00

28.00

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2023 (from January 1,
2023 to December 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen% Million yen% Million yen% Million yen%

Yen

Full year
63,000
–
7,500
–
8,300
–
6,800
–
131.64(Notes) 1. Revisions to the financial results forecast most recently announced: Yes
2. The Company has changed the account closing date from March 31 to December 31 beginning with thefiscal year ended December 31, 2022. The fiscal year ended December 31, 2022 is therefore a transitional
period comprising the nine months from April 1, 2022 to December 31, 2022 for the Company and all of its
consolidated subsidiaries. Therefore, the percentage changes from the previous corresponding period are
not presented.
3. Please also refer to the Notice Regarding Revision of Financial Results Forecast, Dividends of Surplus(Interim Dividend) and Revision of Year-end Dividend Forecast (Japanese only) released today (July 26,2023) regarding the consolidated financial results forecast.
* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Accounting policies adopted specially for the preparation of 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: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares):
June 30, 2023: 50,870,663 shares
December 31, 2022: 52,973,563 shares2) Total number of treasury shares at the end of the period:
June 30, 2023: 176,010 shares
December 31, 2022: 206,031 shares
3) Average number of shares during the period:
Six months ended June 30, 2023: 52,476,931 shares
Six months ended September 30, 2022: 53,514,089 shares* These quarterly financial results are outside the scope of quarterly review by certified public accountants or audit
firms* Explanation regarding the appropriate use of financial results forecasts and other special items
Forward-looking statements such as operating results forecasts and other projections contained in this report are
based on information currently available to the Company and certain assumptions deemed reasonable. Actual results
may differ significantly from these forecasts due to a wide range of factors. For the assumptions underlying theoperating results forecasts and cautionary notes concerning their use, please refer to “(3) Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” under “1. Qualitative Information
on Quarterly Financial Results for the Period under Review” on page 4 of the attached documents to the quarterly
financial statements.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ................................ 2(1) Explanation of Operating Results ............................................................................................................. 2(2) Explanation of Financial Position ............................................................................................................ 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ........ 4
2. Quarterly Consolidated Financial Statements and Primary Notes ............................................................... 5(1) Quarterly Consolidated Balance Sheets ................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................... 7(3) Quarterly Consolidated Statements of Cash Flows .................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements .......................................................................... 10(Notes on going concern assumption) .................................................................................................... 10(Notes in the case of significant changes in shareholders’ equity) ......................................................... 10(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) 10(Regarding the quarterly consolidated statement of income) ..................................................................... 10(Segment information, etc.) .................................................................................................................... 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Company has changed the last day of the fiscal year from March 31 to December 31, beginning with theprevious fiscal year. All consolidated subsidiaries of the Company have also changed their fiscal year-end datefrom March to December. Therefore, for the comparison with the previous period, the six-month period fromJanuary 2022 to June 2022 is compared with the reference figure calculated for the “same period of the previous
year.”In addition, as described in “(4) Notes to Quarterly Consolidated Financial Statements (Segment information,etc.),” the Company has changed the measurement method of segment profit starting from the three months ended
March 31, 2023. The following comparison with the same period of the previous year is calculated by restating
the figures for the same period of the previous year after the change.
The Japanese economy during the six months ended June 30, 2023 continued to pick up moderately,
particularly in consumer spending, as COVID-19 has been contained and economic activities have normalized.
In overseas economies, although the current employment situation in the U.S. remained strong, the manufacturingindustry entered a phase of global adjustment due to cumulative interest rate increases causing demand for goods
to decline and shift to a demand for services, which resulted in an extremely difficult business environment forJapan’s export industry.
Under these circumstances, for the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023),
the Group posted net sales of ¥30,880 million (up 0.6% year-on-year), operating profit of ¥3,786 million (down
5.7% year-on-year), ordinary profit of ¥4,720 million (down 8.0% year-on-year) and profit attributable to ownersof parent of ¥3,212 million (down 12.3% year-on-year).
Although market conditions for the Company became more challenging in the second quarter under review,
the Chemicals and Housing Materials operations secured an increase in revenue due to factors including passthrough pricing and yen depreciation, while operating profit decreased due to factors such as increased production
costs and selling expenses. Ordinary profit and profit attributable to owners of parent also decreased, due to theabsence of significant foreign exchange gains and gain on sale of investment securities posted in the previous
year in the second quarter under review.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, remained sluggish due to a slowdown in supply anddemand in the Chinese and other markets. As for sales of carbon disulfide for rayon and cellophane, domestic
sales increased, and exports also remained solid due to the development of new customers. As for sales of sodium
sulfate for bath agents and detergents, the Company strove to improve profitability by the price pass-through of
the impact of hiking purchase price due to yen depreciation in exchange rates in domestic sales.
(Organic chemicals)
Regarding chlorinated isocyanurates for disinfectants, the domestic market remained at the same level as theprevious year. In the U.S. market, despite declining demand due to customer stockpiling and inventory
adjustments, unit sale prices remained high due to factors including the impact of the depreciating yen anddiversification of selling outlets, exceeding that of the previous year.
(Fine chemicals)
Regarding electronic chemicals, particularly Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability
Preservative) for printed wiring boards, sales fell short of actual demand due to distributor and supply chain
inventory adjustments caused by worsening market conditions in the semiconductor and electronics markets. For
advanced & specialty chemicals, despite sluggish sales of epoxy resin curing agent (imidazoles) and resin modifier(glycoluril derivatives, etc.) resulting from deteriorating market conditions in the electronics industry, sales ofsemiconductor process materials largely surpassed that of the previous year due to evaluation demands and project2

wins.
As a result, net sales for the chemicals operations segment were ¥20,830 million (up 0.0% year-on-year).
However, segment profit was ¥2,898 million (down 6.3% year-on-year) due to the amortization load of theCompany’s new plant of chlorinated isocyanurates (NEO2022), which began operation, and sluggish sales trends
for highly profitable electronics materials in the fine chemicals business, despite the favorable impact of yen
depreciation in exchange rates and lower export logistics costs.
2) Housing Materials operations
The number of new housing starts remained weak for owned houses, and demand for interior, exterior finishes,and paving materials and exterior products remained sluggish. Despite the price revision implemented in January2023 of the current fiscal year and efforts to pass on high raw material costs, sales were lower than the previous
year due to a rush incoming orders before the price revision took effect, while selling expenses increased as aresult of factors including soaring raw material costs and resumption of sales activities after COVID-19, which
led to decreased profit.
As a result, net sales for the housing materials operations segment were ¥9,570 million (up 2.2% year-onyear), and segment profit was ¥715 million (down 15.5% year-on-year).
Reference information[Overseas net sales]
Six months ended June 30, 2022
(from January 1, 2022 to June 30, 2022)
Net sales(Million yen)Six months ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Overseas net sales toconsolidated net sales (%)

Net sales(Million yen)Overseas net sales toconsolidated net sales (%)

Asia

4,317

14.1

2,657

8.6

North America

7,076

23.0

7,464

24.2

Other regions

1,249

4.1

954

3.1

Total
Consolidated net
sales

12,64441.2

11,07535.9

30,70530,880(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets increased by ¥8,624 million from the end of the previous fiscal year to ¥125,800 million. Major
increases were ¥2,857 million in investment securities and ¥1,747 million in construction in progress, and a major
decrease was ¥857 million in machinery, equipment and vehicles.
Liabilities increased by ¥6,758 million from the end of the previous fiscal year to ¥42,128 million. Major
increases were ¥2,346 million in deferred tax liabilities and ¥1,983 million in current portion of long-termborrowings, and a major decrease was ¥847 million in long-term borrowings.
Net assets increased by ¥1,865 million from the end of the previous fiscal year to ¥83,671 million. A major
increase was ¥1,976 million in valuation difference on available-for-sale securities, and a major decrease was¥503 million in retained earnings.
As a result, equity ratio fell to 66.0% from 69.4% at the end of the previous fiscal year.
(Status of cash flows)
Cash flows provided by operating activities totaled ¥6,010 million (an increase of ¥2,623 million year-onyear). Major cash inflows were profit before income taxes of ¥4,700 million and depreciation of ¥1,623 million.
Cash flows used in investing activities totaled ¥3,162 million (an increase of ¥1,673 million year-on-year). A
3

major cash inflow was ¥3,000 million of proceeds from redemption of securities. Major cash outflows werepurchase of securities of ¥3,000 million and purchase of property, plant and equipment of ¥2,358 million.
Cash flows used in financing activities totaled ¥1,814 million (a decrease of ¥123 million year-on-year). The
major component was purchase of treasury shares of ¥3,039 million.
As a result, cash and cash equivalents totaled ¥38,080 million (an increase of ¥1,397 million from the end of
the previous fiscal year).

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The full-year financial results forecast has been revised from the initial plan (announced on January 27, 2023).
Assumptions for the exchange rates of major currencies are ¥135 to U.S. dollar and ¥150 to Euro.
For details of the revision, please refer to the Notice Regarding Revision of Financial Results Forecast, Dividendsof Surplus (Interim Dividend) and Revision of Year-end Dividend Forecast (Japanese only) announced today (July26, 2023).

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of June 30, 2023

23,283879
3,166
13,362
16,400
8,770
37
4,140
602
(0)
70,642

24,430866
3,166
13,682
16,900
8,714
49
4,339
888
(4)
73,033

5,780
7,969
8,509
687
685
23,632
501

6,301
7,111
8,689
2,435
677
25,214495

21,008
412
411
572
(3)
22,40046,533
117,176

23,866
1,869
416
907
(3)
27,05652,767
125,800

(Million yen)
As of December 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Notes payable - facilities
Electronically recorded obligations - facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of June 30, 2023

7,483
570
2,530
3,083
1,105
160
117
25
140
3,068
18,284

7,594
536
3,570
5,066
1,517
1,446
300
2
1,068
2,443
23,548

14,53449
1,004

13,686
2,395
1,004

67

59

656
381
64
328
17,08535,370

710
370
36
316
18,58042,1286,867
5,711
62,808(240)
75,147

6,867
5,711
62,305(217)
74,667

3,766
2,288
136
(15)
6,175
482
81,806
117,176

5,742
2,288
297
(9)
8,319
685
83,671
125,800

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six Months Ended September 30 and June 30(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Transportation and storage costs
Advertising expenses
Salaries
Retirement benefit expenses
Provision for retirement benefits for directors (and otherofficers)
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Donations
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Six months
ended September 30, 2022
31,297
18,572
12,724Six months
ended June 30, 2023
30,88019,137
11,742

3,844
313
1,129
72

2,788
467
1,181
75

8

5

754
2,230
8,353
4,371

867
2,568
7,955
3,786

43
232
826
21
1,124

103
271
554
35
964

13
–
1
15
5,480

17
10
3
31
4,720

21
–
21

–
32
32

24
327
352
5,149
1,461
3,688
(19)
3,707

52
–
52
4,700
1,482
3,217
4
3,212

7

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended September 30 and June 30(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

Six months
ended September 30, 2022
3,688

Six months
ended June 30, 2023
3,217

(876)
263
8
(604)
3,084

1,976
161
6
2,143
5,361

3,103

5,356

(19)

4

8

(3) Quarterly Consolidated Statements of Cash Flows(Million yen)Six months
ended September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on bargain purchase
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Loss (gain) on valuation of investment securities
Subsidy income
Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
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

9

Six months
ended June 30, 2023

5,149
1,288
–
(12)
(4)
(276)
13
327
(21)
24
1,170
(454)
(1,481)
238
(980)
4,981
277
(13)
21
(1,881)
3,386

4,700
1,623
(32)
15
(6)
(374)
17
–
–
52
134
86
(95)
57
(355)
5,823
375
(18)
–
(169)
6,010

–
–
(1,224)(3,000)3,000(2,358)

(20)

(28)

–

(81)

(5)

(706)

–

500

(238)
(1,488)(488)(3,162)–100(49)(1,328)
(647)
(3)
(9)
(1,937)657
617
35,75536,3731,000
3,000(2,080)(3,039)(687)–(6)(1,814)363
1,397
36,68338,080(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)(Purchase of treasury shares)
The Company resolved on May 30, 2023 to purchase its treasury shares pursuant to the provisions of the articles
of incorporation, as set forth in Article 459, Paragraph 1 of the Companies Act, and purchased 2,102,900 shares oftreasury shares. As a result, during the six months ended June 30, 2023, treasury shares increased by ¥3,038 million.
(Cancellation of treasury shares)
The Company resolved on May 30, 2023 to cancel its treasury shares pursuant to the provisions in Article 178 of
the Companies Act, and cancelled 2,102,900 shares of treasury shares on June 9, 2023. As a result, during the six
months ended June 30, 2023, retained earnings and treasury shares decreased by ¥3,028 million and ¥3,028 million,
respectively.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
The Company makes a reasonable estimate of the effective tax rate after the application of tax effect accounting
to profit before income taxes for the current fiscal year, including the second quarter under review, and multiplies
profit before income taxes for the quarter by the estimated effective tax rate.
Income taxes - deferred is included in income taxes.
(Regarding the quarterly consolidated statement of income)(Gain on bargain purchase)Gain on bargain purchase was recognized in connection with the acquisition of the shares of Masuda Chemical
Industries co., LTD. to convert it into a consolidated subsidiary.

10

(Segment information, etc.)
I. For the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)

Reportable segment

Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Inter-segment net sales ortransfers
Total

Other
(Note) 1

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Chemicals
operations

Housing
Materials
operations

7,088
10,314
4,927

–
–
–

7,088
10,314
4,927

–
–
–

7,088
10,314
4,927

–
–
–

7,088
10,314
4,927

–

647

647

–

647

–

647

–
–

7,784
–

7,784
–

–
522

7,784
522

–
–

7,784
522

22,3308,432

30,762522

31,284–31,284

–

–

–

12

12

–

12

22,3308,432

30,762534

31,297–

31,297

0

1

2

123

125

(125)

–

22,3308,433

30,764657

31,422(125)

31,297

Total

Total

Segment profit
3,862
454
4,316
55
4,371
(0)
4,371
(Notes) 1. The “Other” category represents business segments not included in the reportable segments and includes
the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(0) million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

11II. For the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)

Reportable segment

Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Inter-segment net sales ortransfers
Total

Other
(Note) 1

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Chemicals
operations

Housing
Materials
operations

6,785
9,796
4,249

–
–
–

6,785
9,796
4,249

–
–
–

6,785
9,796
4,249

–
–
–

6,785
9,796
4,249

–

633

633

–

633

–

633

–
–

8,937
–

8,937
–

–
465

8,937
465

–
–

8,937
465

20,8309,570

30,401465

30,866–30,866

–

–

–

13

13

–

13

20,8309,570

30,401478

30,880–30,880

3

1

5

150

155

(155)

–

20,834

9,572

30,406629

31,036(155)

30,880

Total

Total

Segment profit
2,898
715
3,614
56
3,671
115
3,786
(Notes) 1. The “Other” category represents business segments not included in the reportable segments and includes
the IT systems operations and food operations.
2. The adjustment for segment profit of ¥115 million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

2. Matters related to changes in reportable segments(Changes in measurement methods)
Beginning with the three months ended March 31, 2023, due to the change in management structure resulting
from the shift to a pure holding company, corporate expenses previously not allocated to each segment are now
allocated to each segment based on reasonable standards. Segment information for the previous year’s first six
months is disclosed based on the measurement method after the change.

12