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.

July 7, 2023

Consolidated Financial Results
for the Six Months Ended May 31, 2023
(Under Japanese GAAP)

Company name:
SALA Corporation
Listing:
Tokyo Stock Exchange / Nagoya Stock Exchange
Securities code:
2734
URL:
https://www.sala.jp/
Representative:
Goro Kamino, President and Representative Director, Group Representative and CEO
Inquiries:
Shinichi Ichikawa, Manager of General Affairs Group, General Affairs Department
Telephone:+81-532-51-1182
Scheduled date to file quarterly securities report:
July 11, 2023
Scheduled date to commence dividend payments:
July 31, 2023
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
Yes (for institutional investors andanalysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended May 31, 2023 (from December 1, 2022 to
May 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended
May 31, 2023
May 31, 2022

Operating profit

Millions of yen

6.5
3.9

% Millions of yen(19.6)
(1.0)

5,680
7,030

For the six months ended May 31, 2023:
For the six months ended May 31, 2022:

Basic earnings
per share
Six months ended
May 31, 2023
May 31, 2022

5,022
6,243

Profit attributable toowners of parent

Ordinary profit% Millions of yen

125,976
118,277

Note: Comprehensive income(Percentages indicate year-on-year changes.)% Millions of yen(19.2)
1.3

%

4,748
4,801

(1.1)
0.8

¥4,756 million [(8.5)%]¥5,199 million [3.8%]

Diluted earnings
per share
Yen

Yen

74.37
75.36

–
–

(2) Consolidated financial position
Total assets
As of
May 31, 2023
November 30, 2022
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

185,745
188,417

77,20973,35540.8
38.2

EquityAs of May 31, 2023:
As of November 30, 2022:¥75,809 million¥72,012 million

2. Cash dividends
Annual dividends per shareFirst
quarter-end

Secondquarter-end

Thirdquarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

–

11.00

–

15.00

26.00

–

13.00
13.00

26.00

Fiscal year ended
November 30, 2022
Fiscal year ending
November 30, 2023

Fiscal year ending
November 30, 2023–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending November 30, 2023 (from December 1,
2022 to November 30, 2023)
Net sales

Fiscal year ending
November 30, 2023

(Percentages indicate year-on-year changes.)
Basic
Profit attributable
Ordinary profit
earnings per
to owners of parent
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

250,000

6.5

5,500

(20.2)

6,300(26.8)

5,400

(5.0)

84.64

Note: Revisions to the earnings forecasts most recently announced: Yes

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note: For details, please refer to “(4) Notes to quarterly consolidated financial statements (Changes in accounting
policies)” of “2. Quarterly consolidated financial statements and significant notes thereto” on page 12 of theattachment.

(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2023

66,041,147 shares

As of November 30, 2022

66,041,147 shares(ii) Number of treasury shares at the end of the period
As of May 31, 2023

2,093,283 shares

As of November 30, 2022

2,239,289 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Six months ended May 31, 2023

63,844,022 shares

Six months ended May 31, 2022

63,712,083 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable by
the Company. Consequently, any statements herein do not constitute assurances regarding actual resultsby the Company. Actual business and other results may differ significantly due to various unforeseen
factors.

SALA Corporation (2734)○Attachment Index
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ......................................................................................................... 2(2) Explanation of financial position........................................................................................................ 4(3) Explanation of consolidated earnings forecasts and other forward-looking statements ..................... 5
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 6(1) Quarterly consolidated balance sheet ................................................................................................. 6(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
income ................................................................................................................................................ 8
Quarterly consolidated statement of income (cumulative) ................................................................. 8
Quarterly consolidated statement of comprehensive income (cumulative) ........................................ 9(3) Quarterly consolidated statement of cash flows ............................................................................... 10(4) Notes to quarterly consolidated financial statements ....................................................................... 12
Uncertainties of entity’s ability to continue as going concern ......................................................... 12
Notes on significant changes in the amount of shareholders’ equity ................................................ 12
Changes in accounting policies ........................................................................................................ 12
Additional information ..................................................................................................................... 12
Segment information ........................................................................................................................ 13
Significant events after reporting period .......................................................................................... 16-1-

SALA Corporation (2734)

1. Qualitative information on quarterly consolidated financial results(1) Explanation of operating results
During the first six months of the fiscal year ending November 30, 2023, while the Japanese economy
saw a move toward normalization of socioeconomic activities with the easing of restrictions relating to
the novel coronavirus disease (COVID-19), the economic outlook remained uncertain due to the impactof rising prices, depreciation of the yen, etc. caused by the prolonged uncertainty over the situation in
Ukraine.
Under these conditions, the SALA Group has established the fifth medium-term management plan withthe fiscal year ending November 30, 2023 as the first fiscal year, and focuses on collaboration and cocreation for further growth, setting the basic policy of “going beyond the framework.” The plan sets
forth five key strategies: “service and business development in the Life Creative Business Unit* andtransformation of the business format,” “enhancing brand value through ‘customer experience’ thatexceeds expectations,” “business creation through ‘co-creation’ with parties inside and outside theGroup,” “improving profitability in existing business fields,” and “transforming into an organizational
culture that attracts people who ‘think and act on their own initiative.’” The Company aims to enhance
SALA’s brand value by solving local community and customer issues. In addition, in order to achieve
the goals of the plan, the Company will work to fundamentally reform the business structure throughdigital transformation (DX) and will proactively invest in new growth areas for promoting carbon
neutrality. During the first six months of the current fiscal year, in January 2023, SALA CARS JAPANCo., Ltd., which is the Car Life Support business, through collaboration and co-creation efforts with
Energy & Solutions business SALA ENERGY CO., LTD. and SALA e ENERGY CO., LTD., began
operating a carbon neutral store that uses electricity and gas with virtually zero CO₂ emissions at the
Audi Hamamatsu store in Hamamatsu City, Shizuoka Prefecture. Furthermore, SALA ENERGY CO.,LTD. has decided to use the “Supplementary Budget for FY2022: Subsidies for Projects to Support the
Introduction of Distributed Energy Resources That Will Contribute to Expanded Use of Renewable
Energy (Projects to Support the Introduction of Grid Storage Battery Systems and Water Electrolysis
Equipment)” of the Agency for Natural Resources and Energy as investment in new growth to install
grid storage batteries on the premises of that company’s Hamamatsu Supply Center in Hamamatsu
City, marking the first such battery system in Shizuoka Prefecture. This storage battery facility isscheduled to start operations around spring 2026. In addition, the company proceeded with therestructuring of its core system to transform operations traditionally divided by gas type (city gas andLP gas) through the use of digital technology and to provide high quality services tailored to eachindividual customer. In addition, ASCO Co., Ltd., which is the Animal Health Care business, integrated
its subsidiaries A.M.I. Co., Ltd. and Daiwa Pharmaceutical Co., Ltd. in December 2022 to streamline
business.
As for operating results for the first six months of the current fiscal year, net sales increased by 6.5%
year on year to ¥125,976 million due to a significant increase in revenue in the Energy & Solutions
business. As for profit, operating profit decreased by 19.6% year on year to ¥5,022 million due todecreases in profit in each segment except the “Properties business.” As gain on valuation ofderivatives on forward exchange contracts of ¥205 million, etc. were recorded in non-operating
income, ordinary profit decreased by 19.2% year on year to ¥5,680 million. Profit attributable toowners of parent decreased by 1.1% year on year to ¥4,748 million due to the recording of gain on
revision of retirement benefit plan recorded as extraordinary income, accompanying revision of thepersonnel system, which primarily involved the extension of the retirement age and revision of theretirement benefit plans implemented on April 1, 2023.
* “Life Creative Business Unit” refers to business areas for daily living other than the energy business.
Operating results of each segment are as follows.

-2-

SALA Corporation (2734)

Energy & Solutions businessNet sales¥71,337 million (up 19.4% year on year)

Operating profit ¥4,056 million (down 10.2% year on year)
Net sales increased due to the upward adjustment of the selling price of city gas based on a system
to adjust raw material costs. On the other hand, as for profit, operating profit decreased due to theimpact of high energy and raw material prices in addition to decreased sales volume of city gas,
mainly for home use and industrial use.
Engineering & Maintenance businessNet sales¥14,999 million (down 4.8% year on year)

Operating profit ¥1,384 million (down 1.8% year on year)
Net sales decreased as completed projects decreased in the civil engineering department, theconstruction department and the maintenance department. As for profit, operating profit decreased
due to the increase in selling, general and administrative expenses, although gross profit was about
the same level year on year due to efforts of each department to reduce cost of sales by thoroughprocess management.
Housing businessNet sales¥14,868 million (down 19.7% year on year)

Operating loss
fiscal year)¥400 million (operating profit of ¥211 million for the same period of the previous

In the housing sales department, the number of houses sold decreased due to fewer orders carriedover for custom-built houses from the previous period compared to the same period of the previous
fiscal year, as well as due to a decline in the number of lot houses delivered. On the other hand, inthe housing components and materials processing and sales department, orders performed well as aresult of efforts to cultivate new customers in addition to strengthening relationships with existing
business partners. Overall segment sales declined, and operating loss was recorded due to thedecrease in the number of houses sold.
Car Life Support businessNet sales¥8,826 million (up 17.3% year on year)

Operating loss
fiscal year)¥133 million (operating profit of ¥5 million for the same period of the previous

For Volkswagen, efforts were made to sell used cars as well as new cars in a higher price range toaddress the impact of the lower production volume resulting from semiconductor shortages, etc.
For Audi, the numbers of new cars sold and used cars sold both increased. As a result, net sales
increased. As for profit, operating loss was recorded due to an increase in selling, general andadministrative expenses, such as promotion expenses.
Animal Health Care businessNet sales¥12,889 million (down 4.6% year on year)

Operating profit ¥277 million (down 46.0% year on year)
In the livestock farming department, orders for veterinary medical products, etc. received decreased
due to the impact of high feed prices, outbreak of avian influenza, etc. In the pet-related
department, orders decreased due to the recoil in demand following the last-minute surge in-3-

SALA Corporation (2734)

demand before the price hike of veterinary medical products, etc. in the same period of the previous
year. Consequently, net sales and operating profit both decreased.
Properties businessNet sales¥2,132 million (up 3.3% year on year)

Operating loss
fiscal year)¥18 million (operating loss of ¥188 million for the same period of the previous

In the real estate properties department, transactions for corporate clients such as for offices andstores remained strong, mainly in the asset management department that engages in brokerage,
management of real estate properties, etc. In the hospitality department, the number of guests forhotel overnight stays, banquets, bridal services, etc. increased due to the easing of restrictions
associated with COVID-19. As a result, net sales increased, and operating loss declined.
(2) Explanation of financial position(i) Assets, liabilities and net assets
AssetsAssets amounted to ¥185,745 million, down ¥2,671 million from November 30, 2022. This was mainly
due to decreases in “notes and accounts receivable - trade, and contract assets” by ¥3,959 million,“property, plant and equipment” by ¥2,316 million, and “deferred tax assets” by ¥911 million, despite
increases in “merchandise and finished goods” by ¥1,494 million, “retirement benefit asset” by ¥1,297
million, and “other” under current assets by ¥1,031 million.
Liabilities
Liabilities were ¥108,535 million, down ¥6,526 million from November 30, 2022. This was mainly due
to decreases in “notes and accounts payable - trade” by ¥3,142 million, “long-term borrowings(including current portion)” by ¥1,626 million, “provision for bonuses” by ¥1,241 million, “retirement
benefit liability” by ¥1,112 million and “other” under current liabilities by ¥1,086 million, despite anincrease in “short-term borrowings” by ¥1,982 million.
Net assets
Net assets were ¥77,209 million, up ¥3,854 million from November 30, 2022. This was mainly due toan increase in “retained earnings” of ¥3,757 million (increased by ¥4,748 million due to recording of
profit attributable to owners of parent and decreased by ¥990 million due to payment of dividends).
(ii) Cash flows
Cash and cash equivalents (hereinafter referred to as “cash”) in the six months ended May 31, 2023
decreased by ¥620 million in total, resulting from net cash provided by operating activities of ¥3,151
million, net cash used in investing activities of ¥3,112 million, and net cash used in financing activitiesof ¥660 million. As a result, cash and cash equivalents at the end of the six months ended May 31, 2023
were ¥23,151 million.
Cash flows from operating activities
Net cash provided by operating activities was ¥3,151 million (¥7,276 million provided in the same
period of the previous fiscal year). This was mainly due to increase factors such as “profit before
income taxes” of ¥7,191 million, “decrease in trade receivables” of ¥3,929 million and “depreciation”
of ¥3,256 million, and decrease factors including “decrease in trade payables” of ¥3,069 million,“increase in inventories” of ¥2,512 million, “income taxes paid” of ¥2,145 million and “increase inretirement benefit asset” of ¥1,297 million.

-4-

SALA Corporation (2734)

Cash flows from investing activities
Net cash used in investing activities was ¥3,112 million (¥2,747 million used in the same period of theprevious fiscal year). This was mainly due to “purchase of property, plant and equipment” of ¥3,229
million.
Cash flows from financing activities
Net cash used in financing activities was ¥660 million (¥4,809 million used in the same period of theprevious fiscal year). This was mainly due to decrease factors such as “repayments of long-termborrowings” of ¥3,620 million and “dividends paid” of ¥984 million, and increase factors including“proceeds from long-term borrowings” of ¥2,000 million and “net increase in short-term borrowings”
of ¥1,982 million.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
In the full-year consolidated earnings forecast announced on January 12, 2023, operating profit wasrevised from ¥7,000 million to ¥5,500 million, and ordinary profit was revised from ¥7,800 million to¥6,300 million. The effects of loss (gain) on valuation of derivatives on forward exchange contracts are
not included in the consolidated earnings forecasts for the fiscal year ending November 30, 2023.
For details, please refer to “Notice Concerning Revision to the Full-Year Consolidated Earnings
Forecast and Recording of Extraordinary Income” announced today (July 7, 2023) (in Japanese only).

-5-

SALA Corporation (2734)

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Millions of yen)
As of November 30, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims - operating
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
Gas pipe, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

As of May 31, 2023

24,191

23,57133,077

29,1172,010
12,520
7,656
267
4,886
(206)
84,4042,188
14,015
8,529
370
5,918
(170)
83,541

20,205
7,737
16,34733,287
1,572
1,348
80,498

19,838
7,605
15,67732,637
1,093
1,329
78,181

274
1,731
2,006

321
1,924
2,245

7,913
3,204
–
4,492
6,358
(460)
21,507104,012
188,417

8,240
2,808
1,297
3,580
6,345
(497)
21,776102,203
185,745

SALA Corporation (2734)(Millions of yen)
As of November 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for point card certificates
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits for directors (andother officers)
Provision for share-based compensation
Provision for repairs
Retirement benefit liability
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
Deferred gains or losses on hedges
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-

As of May 31, 2023

27,827
4,592
5,944
7,411
1,695
2,621

24,685
4,713
7,927
7,394
1,300
1,380

11

4

56
82
233
11,60962,08548
45
228
10,52258,25038,862423

37,253
591

190

162

470
104
9,535
3,389
52,976
115,062

438
115
8,422
3,302
50,285
108,535

8,025
25,281
38,076(1,480)69,902

8,025
25,29841,833(1,383)73,774

518
587
1,003
2,109
1,342
73,355
188,417

626
493
915
2,035
1,399
77,209185,745

SALA Corporation (2734)(2) Quarterly consolidated statement of income and quarterly consolidated statement ofcomprehensive income
Quarterly consolidated statement of income (cumulative)
Six months ended
May 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on valuation of derivatives
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Reversal of provision for loss on guarantees
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on sale of investment securities
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-8-(Millions of yen)Six months ended
May 31, 2023

118,277
86,98731,28925,0456,243

125,976
95,69530,28125,259
5,022

37
30
286

30
35
205

163

201

416
934

297
769

68
79
148
7,030

73
37
110
5,680

34
29
22
–
85

24
–
–
2,388
2,412

14
–
17
0
32
7,084
1,804
370
2,174
4,909
107
4,801

64
36
800
–
901
7,191
1,253
1,106
2,360
4,831
83
4,748

SALA Corporation (2734)

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended
May 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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-9-

Six months ended
May 31, 2023

4,909

4,831

108
195
(14)
289
5,199

108
(94)
(88)
(74)
4,756

5,091

4,673

108

82

SALA Corporation (2734)(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
May 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Increase (decrease) in provision for share-based
compensation
Increase (decrease) in provision for repairs
Increase (decrease) in provision for loss on guarantees
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on valuation of derivatives
Loss (gain) on sale and retirement of non-current assets
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in long-term accounts payable other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities- 10 -

Six months ended
May 31, 2023

7,084
3,291
17
83
2
(1,321)

7,191
3,256
800
59
(0)
(1,241)

(2)

(6)

(3)

(8)

1

(36)

(6)

(5)

(15)

(28)

(12)

(32)

10
(193)
(153)
–
(68)
69

10
–
(1,121)(1,297)
(65)
73

(163)

(201)

(286)
(29)
(29)
196
(640)
680

(205)
(1)
–
3,929
(2,512)(3,069)

(54)

(38)

377
8,832
69
(78)
(1,547)
7,276

(138)
5,312
67
(82)
(2,145)
3,151

SALA Corporation (2734)(Millions of yen)Six months ended
May 31, 2022
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
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
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Repayments of finance lease liabilities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

Six months ended
May 31, 2023

(2,875)
75
(271)
(114)
91
(43)
419
(29)
(2,747)(3,229)
494
(685)
(303)
259
(30)
425
(44)
(3,112)223
1,100(5,230)
(0)
105
(870)
(5)

1,982
2,000
(3,620)
(0)
97
(984)
(6)

(16)

(7)

(115)
(4,809)(280)
24,22723,947

(120)
(660)
(620)
23,772
23,151

SALA Corporation (2734)(4) Notes to quarterly consolidated financial statements
Uncertainties of entity’s ability to continue as going concern
Not applicable.
Notes on significant changes in the amount of shareholders’ equity
Not applicable.
Changes in accounting policies
Application of Implementation Guidance on Accounting Standard for Fair Value Measurement
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the first quarter of thecurrent fiscal year, and it has applied the new accounting policy provided for by the Implementation
Guidance on Accounting Standard for Fair Value Measurement in accordance with the transitional
measures provided for in paragraph 27-2 of the Implementation Guidance on Accounting Standard for
Fair Value Measurement. There is no impact on the quarterly consolidated financial statements.
Additional information
Impact of the spread of COVID-19
There has been no material change in the assumptions regarding the impact of the spread of COVID-19
described in Impairment loss on non-current assets in Significant accounting estimates in the annual
securities report for the previous fiscal year.
Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System
The Company and some consolidated subsidiaries transitioned from consolidated taxation system togroup tax sharing system from the first quarter of the current fiscal year. In accordance with this, theaccounting treatment and disclosure of corporate and local income taxes and tax-effect accounting are
based on “Accounting Treatment and Disclosure when Applying the Group Tax Sharing System”(ASBJ Practical Solution No. 42, August 12, 2021, hereinafter Practical Solution No. 42). In
accordance with Paragraph 32 (1) of Practical Solution No. 42, the Company has assumed that there is
no impact from the change in accounting policy resulting from the application of Practical Solution No.
42.
(Revision of the retirement benefit plan)
The Company and some consolidated subsidiaries revised their retirement benefit plans effective April
1, 2023. For the accounting treatment associated with this revision, the Company has applied“Accounting for Transfer between Retirement Benefit Plans” (ASBJ Guidance No. 1, December 16,2016) and “Practical Solution on Accounting for Transfer between Retirement Benefit Plans” (ASBJ
PITF No. 2, February 7, 2007).
As a result, the Company recorded ¥2,388 million as gain on revision of retirement benefit plan under
extraordinary income for the first six months of the current fiscal year.

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SALA Corporation (2734)

Segment information
I For the six months ended May 31, 2022
1. Disclosure of sales and profit (loss) for each reportable segment and disaggregation ofrevenue(Millions of yen)
Reportable segments

Net sales
City gas
LP gasElectric power
Civil engineering work,
construction work, equipment
work
Housing, construction materials
Automotive sales andmaintenance
Veterinary medical products
Lease, sale and purchase, andbrokerage of real estate, hotel
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Revenues from externalcustomers
Intersegment sales or transfers

Energy &SolutionsbusinessEngineering &Maintenancebusiness

Car Life
Supportbusiness

23,28916,140
6,989

–
–
–

–
–
–

–
–
–

–
–
–

–

15,749

–

–

–

–

–

18,509

–

–

–

–

–

7,525

–

–

–

–

–

13,512

–

–

–

–

–

13,303––––59,723

15,74918,5097,525

13,512

–

–

–

–

–

59,723

15,74918,5097,525

13,512

Housingbusiness

Animal HealthCare business

1,185

2,482

3

5

0

Total

60,90818,232

18,512

7,531

13,512

Segment profit (loss)

4,519

1,409

211

5

514

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SALA Corporation (2734)
Reportable segments
Properties
business
Net sales
City gas
LP gasElectric power
Civil engineering work,
construction work, equipment
work
Housing, construction materials
Automotive sales andmaintenance
Veterinary medical products
Lease, sale and purchase, andbrokerage of real estate, hotel
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Revenues from externalcustomers
Intersegment sales or transfers

Other(Note 1)

Total

Total

Adjustment(Note 2)

Consolidated(Note 3)–––23,28916,140
6,989

–
–
–

23,28916,140
6,989

–
–
–

23,28916,1406,989–

15,749–15,749–15,749–18,509–18,509–18,509

–

7,525

–

7,525

–

7,525

–

13,512–

13,512–

13,512

2,064

2,064

–

2,064

–

2,064

–

13,3031,010

14,31367

14,381

2,064

117,084

1,010

118,09467

118,162

–

–

114

114

–

114

2,064

117,084

1,124

118,20967

118,277

246

3,924

962

4,886

(4,886)

–

Total

2,311

121,009

2,086

123,095(4,818)118,277

Segment profit (loss)

(188)

6,471

61

6,533

(289)

6,243

(Notes) 1. The “other” category represents operating segments that are not included in reportable segments, and includes
manufacturing auto parts, installment sale and lease.
2. Adjustment to segment profit (loss) of ¥(289) million includes intersegment eliminations of ¥571 million andcorporate expenses of ¥(861) million. Corporate expenses are mainly general and administrative expenses, which
are not attributable to the reportable segments.
3. Segment profit (loss) was adjusted with operating profit in the quarterly consolidated statement of income.
4. “Other revenue” includes revenue on lease, etc.

2. Disclosure of impairment losses on non-current assets or goodwill for each reportablesegment(Significant impairment losses on non-current assets)
Impairment losses on assets for business use were recorded in the Energy & Solutions
business. The recorded amount of such impairment losses was ¥17 million in the first six
months of the previous fiscal year.

- 14 -

SALA Corporation (2734)

II For the six months ended May 31, 2023
1. Disclosure of sales and profit (loss) for each reportable segment and disaggregation ofrevenue(Millions of yen)
Reportable segments

Net sales
City gas
LP gasElectric power
Civil engineering work,
construction work, equipment
work
Housing, construction materials
Automotive sales andmaintenance
Veterinary medical products
Lease, sale and purchase, andbrokerage of real estate, hotel
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Revenues from externalcustomers
Intersegment sales or transfers

Energy &SolutionsbusinessEngineering &Maintenancebusiness

Car Life
Supportbusiness

31,684
15,383
8,877

–
–
–

–
–
–

–
–
–

–
–
–

–

14,999

–

–

–

–

–

14,868

–

–

–

–

–

8,826

–

–

–

–

–

12,889

–

–

–

–

–

15,392––––

71,337

14,99914,868

8,826

12,889

–

–

–

–

–

71,337

14,99914,868

8,826

12,889Housingbusiness

Animal HealthCare business

1,092

2,885

7

4

0

Total

72,42917,884

14,876

8,830

12,889Segment profit (loss)

4,056

1,384

(400)

(133)

277

- 15 -

SALA Corporation (2734)
Reportable segments
Properties
business
Net sales
City gas
LP gasElectric power
Civil engineering work,
construction work, equipment
work
Housing, construction materials
Automotive sales andmaintenance
Veterinary medical products
Lease, sale and purchase, andbrokerage of real estate, hotel
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Revenues from externalcustomers
Intersegment sales or transfers

Other(Note 1)

Total

Total

Adjustment(Note 2)

Consolidated(Note 3)–––31,684
15,383
8,877

–
–
–

31,684
15,383
8,877

–
–
–

31,684
15,383
8,877–

14,999–14,999–14,999–14,868–14,868–14,868

–

8,826

–

8,826

–

8,826

–

12,889–12,889–12,889

2,132

2,132

–

2,132

–

2,132

–

15,392724

16,11772

16,1902,132

125,052724

125,77772

125,850

–

–

126

126

–

126

2,132

125,052851

125,90372

125,976

246

4,237

884

5,122

(5,122)

–

Total

2,379

129,290

1,735

131,026(5,049)125,976

Segment profit (loss)

(18)

5,166

40

5,206

(184)

5,022

(Notes) 1. The “other” category represents operating segments that are not included in reportable segments, and includes
manufacturing auto parts, installment sale and lease.
2. Adjustment to segment profit (loss) of ¥(184) million includes intersegment eliminations of ¥539 million andcorporate expenses of ¥(724) million. Corporate expenses are mainly general and administrative expenses, which
are not attributable to the reportable segments.
3. Segment profit (loss) was adjusted with operating profit in the quarterly consolidated statement of income.
4. “Other revenue” includes revenue on lease, etc.

2. Disclosure of impairment losses on non-current assets or goodwill for each reportablesegment(Significant impairment losses on non-current assets)
Impairment losses on idle assets were recorded in the Energy & Solutions business. The
recorded amount of such impairment losses was ¥180 million in the first six months of thecurrent fiscal year.
Impairment losses on idle assets were recorded in the Car Life Support business. The
recorded amount of such impairment losses was ¥68 million in the first six months of thecurrent fiscal year.
Impairment losses on assets for business use were recorded in the Properties business. The
recorded amount of such impairment losses was ¥551 million in the first six months of thecurrent fiscal year.
Significant events after reporting period
Not applicable.

- 16 -