Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended June 30, 2023
(Based on Japanese GAAP)
August 14, 2023
Company name:
KONAKA CO.,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

7494
URL https://www.konaka.co.jp
Representative Director, President and CEOGroup Representative
Senior Managing Executive Officer, CFO,
General Manager of Administration
Headquarters

Kensuke Konaka

Makoto Okumura

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

August 14, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

NoNo

TEL

045(825)7700(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended June 30, 2023 (from October 1, 2022 to June 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended June 30, 2023
52,7364.5757–840–
851–
Nine months ended June 30, 2022
50,444–(1,018)–(135)–(908)–
Earnings per share

Diluted earnings per share

Yen
29.20
(31.20)Nine months ended June 30, 2023
Nine months ended June 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2023
As of September 30, 2022

Net assets

Millions of yen
53,92354,307

Equity ratio

Millions of yen
20,291
19,797%36.8
35.2

2. Cash dividends
Annual dividends per share

Year ended September 30, 2022
Year ending September 30, 2023
Year ending September 30, 2023
(Forecast)

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
10.00
10.00

Yen––

Yen
10.00

TotalYen
20.00

10.00

20.00

3. Forecast of consolidated financial results for the year ending September 30, 2023 (from October 1, 2022 to September 30, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
69,3329.7(441)–247–(248)–(8.52)

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended June 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2023

31,146,685 shares As of September 30, 2022

31,146,685 shares

Number of treasury shares at the end of the period
As of June 30, 2023

1,896,086 shares As of September 30, 2022

2,031,282 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended June 30, 2023

29,169,489 shares Nine months ended June 30, 2022

229,115,761 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2022

As of June 30, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

6,7442,532

7,306
3,071

Merchandise and finished goods
Work in process

15,499115,4412

Raw materials and supplies
Other

286
1,469

373
1,339

Allowance for doubtful accounts(0)–26,533

27,534

3,842

3,594

Land
Other, net

10,409356

10,038435

Total property, plant and equipment

14,607

14,067

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

Intangible assets
Trademark right

1,090

51

328

508

1,418

560

2,932
7,638

3,456
7,140

Retirement benefit asset
Other

399
817451
756

Allowance for doubtful accounts

(42)

(44)

Total investments and other assets

11,746

11,76027,773

26,38954,30753,923

Notes and accounts payable - trade
Electronically recorded obligations - operating

1,641
2,045

2,121
3,486

Short-term borrowings
Current portion of long-term borrowings

13,562658

12,371
7,777

Income taxes payable
Contract liabilities

422
994

470
824

Provision for bonuses
Other420
3,880

450
3,306

Total current liabilities

23,62530,807

Non-current liabilities
Long-term borrowings

7,738

92606
37595
26

Other

2,502

2,109

Total non-current liabilities

10,8852,824

34,51033,632

Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits

Total non-current assets
Total assets
Liabilities
Current liabilities

Retirement benefit liability
Provision for point card certificatesTotal liabilities

3

(Millions of yen)
As of September 30, 2022

As of June 30, 2023

Net assets
Shareholders' equity
Share capital

5,305

5,305

Capital surplus
Retained earnings

13,253
2,553

13,253
2,644

Treasury shares(3,342)(3,119)Total shareholders' equity

17,77018,083

1,481
(46)

1,853
(7)

(73)

(63)

1,361

1,782

665

425

19,797

20,29154,30753,923

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

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended

Nine months ended

June 30, 2022

June 30, 2023

Net sales
Cost of sales

50,444
21,60952,73622,094Gross profit

28,83430,642

Selling, general and administrative expenses

29,85329,884

Operating profit (loss)(1,018)757Interest income
Dividend income

1131

1836

Rental income from real estate
Subsidies for employment adjustment

363
345

275
–

Non-operating income

Other

372

188

1,125

518

Interest expenses
Rental expenses on real estate

126
61

127
53

Share issuance costsOther

–
54

214
40

Total non-operating expenses

242

435(135)

840

Gain on sale of non-current assets
Gain on sale of investment securities

449

811
0

Penalty income
Other

–
–

440
230

Total extraordinary income

54

1,481

Total non-operating income
Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

326

1,291
31

1,526
68

190

Total extraordinary losses

1,345

1,620

Profit (loss) before income taxes(1,426)

701

Impairment losses
Loss on store closings
OtherIncome taxes - current

238

439

Income taxes - deferred(18)(320)

Total income taxes

220

119

(1,646)581

Loss attributable to non-controlling interests

(738)

(270)

Profit (loss) attributable to owners of parent

(908)

851

Profit (loss)

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Profit (loss)
Other comprehensive income

Nine months ended

Nine months ended

June 30, 2022

June 30, 2023
(1,646)

581

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(243)
(36)

371
68Remeasurements of defined benefit plans, net of tax(11)

10(291)450

Comprehensive income

Total other comprehensive income(1,938)

1,032

Comprehensive income attributable toComprehensive income attributable to owners of parent(1,174)

1,272

(763)

(240)

Comprehensive income attributable to non-controllinginterests

6