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 Year Ended September 30, 2022
(Based on Japanese GAAP)
November 14, 2022
Company name:
Kufu Company Inc.
Stock exchange listing: Tokyo
Stock code:
4376
URL https://kufu.company/
Representative:
Director & Representative Executive Officer
Inquiries:
Director & Executive Officer
Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:Yoshiteru Akita
Jun Kanma
TEL 03-6264-2323
December 22, 2022
December 23, 2022
–YesYes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(1) Consolidated operating resultsPercentages 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%
Year ended September 30, 2022
18,625
–
1,558
–
1,479
–
452
–
Year ended September 30, 2021––––––––(Note) EBITDA (operating profit + depreciation and amortization): Year ended September 30, 2022: 2,581 million yen [–%]
Year ended September 30, 2021: – million yen [–%]
attributable to Ordinary profit/total Operating profit/netearnings per Profitowners
Earnings per share Dilutedshareofassets
sales
parent/equity
Yen
7.80
–

Year ended September 30, 2022
Year ended September 30, 2021

Yen
7.77
–%
4.4
–%
6.8
–%
8.4
–

(2) Consolidated financial position
Total assets
As of September 30, 2022
As of September 30, 2021

Net assets

Equity ratio

Millions of yen
21,329–Millions of yen
11,663–

Cash flows fromoperating activities
Millions of yen
1,553–

Cash flows frominvesting activities
Millions of yen(1,042)–Net assets per share%
47.7–Yen
177.77–(3) Consolidated cash flows

Year ended September 30, 2022
Year ended September 30, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,042)7,238––

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2021
Year ended September 30, 2022
Year ending September 30, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

Yen

Yen

Yen

Yen

Millions of yen

%%–––
0.00

–––
0.00

–0.00

–––––––

0.00

–

0.00

0.00

1–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
Net sales
Full year

Millions of yen
21,000Operating profit% Millions of yen
12.8
2,000

EBITDA% Millions of yen
28.4
3,100%
20.1

4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022
58,286,959 shares As of September 30, 2021
Number of treasury shares at the end of the period
As of September 30, 2022
1,001,413 shares As of September 30, 2021
Average number of shares during the period
Year ended September 30, 2022
58,038,428 shares Year ended September 30, 2021

2– shares– shares– shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2022
AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMerchandiseWork in process
Raw materials and supplies
Real estate for sale
Operational investment securities
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Share issuance costs
Total deferred assets
Total assets

7,269,013
1,007,224
84,305
168,595
2,269
2,758,334
2,979,331
596,492(38,936)
14,826,629

300,850
96,980397,830
3,526,212
527,147
4,053,360
678,604
825,575
834,607(291,623)
2,047,163
6,498,354
4,983
4,983
21,329,967

3

(Thousands of yen)
As of September 30, 2022
Liabilities
Current liabilities
Accounts payable - trade
Outstanding claims
Policy reserve
Short-term borrowings
Current portion of long-term borrowings
Asset retirement obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for point services
Correction related cost
Provision for loss on relocation
Provision for loss on business liquidation
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Asset retirement obligations
Deferred tax liabilities
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-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

550,130
8,062
4,043
2,981,658
1,034,272
3,525
313,649
1,104,977
30,1404,908
45,420244,991
59,406910,379
7,295,564
8,250
1,840,193
95,035225,986
146,761
54,7582,370,985
9,666,550

13,182
9,016,914
1,191,480(443,824)
9,777,754
399,143
6,897
406,041
10,216
1,469,404
11,663,417
21,329,967

4

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
September 30, 2022
Net sales
18,625,068
Cost of sales
9,411,176
Gross profit
9,213,891
Selling, general and administrative expenses
7,655,765
Operating profit
1,558,126
Non-operating income
Interest income
217
Foreign exchange gains
42,224
Subsidy income
9,263
Other
35,469Total non-operating income
87,174Non-operating expenses
Interest expenses
47,333
Commission expenses
59,290
Provision for doubtful accounts
5,269
Loss on equity method investment
45,188Other
8,470
Total non-operating expenses
165,552
Ordinary profit
1,479,748
Extraordinary income
Gain on sale of non-current assets
239
Gain on reversal of share acquisition rights
560
Total extraordinary income
800
Extraordinary losses
Loss on sale of non-current assets
8,934
Impairment losses
68,951
Provision for loss on business liquidation
81,877
Provision for loss on relocation
244,991
Other
35,708
Total extraordinary losses
440,462
Profit before income taxes
1,040,085
Income taxes - current
590,849
Income taxes - deferred(159,199)
Total income taxes
431,649Profit
608,435
Profit attributable to non-controlling interests
155,703
Profit attributable to owners of parent
452,7325

Consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended
September 30, 2022
608,435

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests(56,819)
7,822(48,997)559,438
403,735
155,7036

Consolidated statements of changes in equity
Fiscal year ended September 30, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

Retained earnings

10,0009,013,030

3,182

3,182

Total shareholders'equityTreasury shares

738,748–

9,761,778

Changes during period
Issuance of new shares

6,365

Profit attributable toowners of parent

452,732

452,732

Purchase of treasury shares(443,824)

Capital increase of
consolidated subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items otherthan shareholders' equity(443,824)

161

161

540

540

Total changes during period

3,182

3,884

452,732(443,824)

15,975

Balance at end of period

13,182

9,016,914

1,191,480(443,824)

9,777,754

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeShare acquisitionrightsNon-controllinginterests

Total net assets

455,963(924)

455,039

8,888

1,314,77511,540,481

Changes during period
Issuance of new shares

6,365

Profit attributable toowners of parent

452,732

Purchase of treasury shares(443,824)

Capital increase ofconsolidated subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items otherthan shareholders' equity

161
540(56,819)

7,822(48,997)

1,328

154,628

106,959

Total changes during period(56,819)

7,822(48,997)

1,328

154,628

122,935

Balance at end of period

399,143

6,897

406,041

10,216

1,469,404

11,663,417

7Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
September 30, 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 loss on businessliquidation
Increase (decrease) in provision for loss on relocation
Interest income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in investment securities for saleDecrease (increase) in prepaid expenses
Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in unearned revenue
Decrease (increase) in accounts receivable - other
Other, net
SubtotalInterest and dividends received
Income taxes paid
Interest paid
Subsidies received
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Purchase of investment securities
Payments for investment partnerships in capital
Other, net
Net cash provided by (used in) investing activities

1,040,085
358,778
68,951
664,579
39,20359,406244,991(217)
47,333(5,499)8,694(40,513)258,750(55,901)
221,290(307,520)
80,613(81,138)(522,606)
50,698(50,033)
43,5482,123,496
54,217(662,915)(46,351)
9,263
76,045
1,553,754(40,031)
29,199(222,104)(39,552)
5,397(723,792)(50,000)(1,263)(1,042,147)

8

(Thousands of yen)
Fiscal year ended
September 30, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Proceeds from share issuance to non-controllingshareholders
Redemption of bonds
Purchase of treasury sharesProceeds from issuance of share acquisition rights
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
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(1,206,446)
2,150,000(1,520,291)
5,732
12,852(16,700)(443,824)
2,521(12,610)(13,687)(1,042,452)
19,088(511,756)
7,750,214
7,238,4579