Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023
(Japanese GAAP)
Name of listed company: IKK Holdings Inc.
Securities code: 2198
URL: https://www.ikk-grp.jp/
Representative:
Katsushi Kaneko, Chairman and chief Executive Officer
Contact:
Kazuya Nagashima, Manager of Management Division
Scheduled date of filing quarterly financial report:
March 16, 2023
Scheduled date of starting dividends distribution:
Supplementary quarterly materials prepared:
Yes
Quarterly results information meeting held:
No

March 13, 2023
Listed on: Tokyo Stock Exchange

TEL: +81-92-937-7030(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the first quarter of the FY ending October 31, 2023(Nov. 1, 2022 - Jan. 31, 2023)(1) Consolidated operating results (cumulative)(Percentage figures show changes from the same period in the previous fiscal year.)

Net Sales
1Q of FY ending Oct. 31, 2023
1Q of FY ended Oct. 31, 2022

Millions of yen
4,912
3,897

Operating Profit%
26.0
105.1

Millions of yen
362
120%
201.2-Ordinary Profit
Millions of yen
369
220%
68.0-

Profit Attributable toOwners of Parent
Millions of yen%
180(0.0)180-Note: Comprehensive income: 1Q of FY ending Oct. 31, 2023: 195 million yen (up 5.5%); 1Q of FY ended Oct. 31, 2022: 185 million yen (-%)

1Q of FY ending Oct. 31, 2023
1Q of FY ended Oct. 31, 2022

(2) Consolidated financial position

1Q of FY ending Oct. 31, 2023
FY ended Oct. 31, 2022

Net Income per Share
Yen
6.15
6.13

Diluted Net Income per ShareYen-Total Assets
Millions of yen
18,316
20,251Net Assets
Millions of yen
8,687
9,170

Equity Ratio%

47.3
45.1

Reference: Equity capital: 1Q of FY ending Oct. 31, 2023: 8,654 million yen; FY ended Oct. 31, 2022: 9,139 million yen

2. Dividends
1Q EndYen
0.00

Dividends per share
3Q End
Yen
-0.00

-

2Q EndYen-

FY ended Oct. 31, 2022
FY ending Oct. 31, 2023
FY ending Oct. 31, 2023
(forecast)

FY EndAnnual
Yen
10.00

Yen
10.00

12.00

12.00

Note: Revisions to the latest projected dividends: No

3. Consolidated financial forecast for the FY ending October 31, 2023 (Nov. 1, 2022 - Oct. 31, 2023)(Percentage figures show changes from the same period in the previous fiscal year.)

Net SalesFirst half
Full year

Millions of yen
9,890
21,780Operating Profit%
29.9
14.3

Millions of yen
415
2,200

Note: Revisions to the latest projected financial results: No%
21.6

Ordinary Profit
Millions of yen
430
2,230%
155.9
6.4

Profit Attributable toOwners of Parent
Millions of yen
%
230
88.2
1,500
7.2

Net Incomeper ShareYen
7.79
51.09

* Notes(1) Significant changes to subsidiaries during the period (transfer of specific subsidiaries accompanying changes in scope ofconsolidation): No
Newly added: - Company name: Excluded: - Company name: (2) Application of specific accounting policies for preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, accounting estimates and restatement
1) Changes in accounting policies due to revision of accounting standards, etc.:
2) Changes in accounting polices other than 1):
3) Changes in accounting estimates:
4) Restatement:YesNoNoNo

Note: For details, see “2. Quarterly Consolidated Financial Statements and Notes; (3) Notes to Quarterly Consolidated Financial Statements (Changes inAccounting Policies)” (attachments, page 7).

(4) Number of shares issued (common stock)1) Number of shares issued at the end ofperiod (including treasury shares)
2) Number of treasury shares at the end ofperiod
3) Average number of shares outstanding
during the period (quarterly cumulative)

1Q of FY ending
Oct. 31, 2023
1Q of FY ending
Oct. 31, 2023
1Q of FY ending
Oct. 31, 2023

FY ended Oct. 31,2022
FY ended Oct. 31,
1,007,949 shares2022
1Q of FY ended
29,301,428 shares
Oct. 31, 2022
29,956,800 shares

29,956,800 shares
427,349 shares
29,397,812 shares

Note: Figures for treasury shares include 341,000 shares of the IKK stock held by the IKK Employee Stock Ownership Association Exclusive Trust at
the end of the first quarter of the current fiscal year.

* The current quarterly financial report is not subject to audit by certified public accountants or auditing firms.
* Explanation of appropriate use of financial forecasts, other special remarks

Forecasts and other forward-looking statements included in this document are based on currently available information and assumptions deemed
rational, and are not a guarantee of results by IKK. Actual results may vary substantially due to a variety of reasons. For notes and other cautionarystatements related to assumptions behind and use of forecasts, please see “1. Qualitative Information on Quarterly Financial Results; (3) Explanationof Consolidated Forecast and Other Forward-looking Statements” (attachments, page 2).

IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

Attachments (Table of Contents)
1. Qualitative Information on Quarterly Financial Results2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

2

2. Quarterly Consolidated Financial Statements and Notes

3(1) Quarterly Consolidated Balance Sheet

3(2) Quarterly Consolidated Statements of Income and Comprehensive Income

5

Quarterly Consolidated Statement of Income
For the Three-month Period

5

Quarterly Consolidated Statement of Comprehensive Income
For the Three-month Period

6(3) Notes to Quarterly Consolidated Financial Statements

7

Notes on Premise of Going Concern

7

Notes on Significant Fluctuation in Amounts of Shareholders’ Equity

7

Changes in Accounting Policies

7Additional Information

71

IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Results of Operations
In the first quarter of the current fiscal year (November 1, 2022 to January 31, 2023), social and economicactivity began to return to normal in Japan as restrictions involving the pandemic that were in place for a longtime were eased. The outlook for the economy remains uncertain because of increasing geopolitical risk,including the Ukraine crisis, and economic risk such as rapidly rising prices in Japan caused by the yen’sdecline.
In the wedding industry, the number of weddings and receptions is gradually increasing due to theresumption of various events attended by many people as social and economic activity returns to normal.
IKK Holdings Inc. (“IKK”) and its group companies (the “IKK Group”) continued to hold weddings andreceptions while making the safety of guests and employees the highest priority. All activities include every
possible measure for protection against infections.
First quarter sales increased 26.0% from one year earlier to 4,912 million yen. Operating profit increased
201.2% to 362 million yen, ordinary profit increased 68.0% to 369 million yen, and profit attributable toowners of parent decreased 0.0% to 180 million yen.
Business segment performance was as follows:a) Wedding OperationsAs numerous restrictions for safety during the pandemic ended, the IKK Group continued to holdweddings and receptions accompanied by many pandemic safety measures.
As a result, sales increased 25.7% from one year earlier to 4,696 million yen due to the higher
number of weddings. Operating profit increased 220.9% to 376 million yen.
b) Nursing-care Operations
Sales increased 1.7% from one year earlier to 140 million yen and operating profit increased 2.9% to
2 million yen.
c) Food Business
Sales increased 55.9% from one year earlier to 66 million yen and operating profit increased 56.0%
to 14 million yen.
d) Photography Business
A subsidiary was established in November 2021 to operate photography business. There were sales of
43 million yen and an operating loss of 16 million yen compared with a 6 million yen loss one yearearlier.
e) Matrimonial Matchmaking Business
A subsidiary was established in November 2021 to operate matrimonial matchmaking business. There
were sales of 1 million yen and an operating loss of 14 million yen compared with a 2 million yen loss
one year earlier.
(2) Explanation of Financial Position
Total assets were 18,316 million yen at the end of the first quarter of the current fiscal year, 1,934
million yen less than at the end of the previous fiscal year. The main causes were decreases of 1,917
million yen in cash and deposits and 189 million yen in accounts receivable-trade. There was an increaseof 376 million yen in property, plant and equipment.
Liabilities decreased 1,451 million yen to 9,629 million yen. The main causes were decreases of 382
million yen in accounts payable-trade, 779 million yen in income taxes payable, and other current
liabilities of 717 million yen. There was an increase of 557 million yen in long-term borrowings.
Net assets decreased 482 million yen to 8,687 million yen. The main cause was an increase due toprofit attributable to owners of parent of 180 million yen, and decreases due to dividends from surplus of
299 million yen and purchase of treasury shares of 399 million yen. As a result, compared with the endof the previous fiscal year, the equity ratio rose by 2.2 percentage point to 47.3%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The first half and fiscal year consolidated forecasts announced on December 12, 2022 remain unchanged.
2IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
Previous Consolidated FY(Oct. 31, 2022)(Thousands of yen)
Current Consolidated FY, 1Q(Jan. 31, 2023)

5,891,686
459,639240,238
82,897537,053(7,974)7,203,541

3,974,198
269,836
218,557
85,499528,764(3,920)5,072,935

7,794,750
1,850,919
637,344
10,283,014
160,306

7,670,833
1,850,919
1,138,006
10,659,759
161,591

1,447,559
1,157,087
2,604,647
13,047,967
20,251,509

1,410,083
1,012,344
2,422,428
13,243,779
18,316,714

853,784
2,150,000

471,529
2,150,000

774,796

839,492

785,757
296,569
2,743,857
7,604,765

6,149
165,483
2,026,811
5,659,465

1,877,328
34,28414,663
1,064,951
485,450
3,476,677
11,081,442

2,370,258
32,712
14,7501,067,717
484,585
3,970,023
9,629,488

AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Short-term borrowings
Current portion of long-termborrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for point card certificates
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

3

IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

Previous Consolidated FY(Oct. 31, 2022)(Thousands of yen)Current Consolidated FY, 1Q(Jan. 31, 2023)

351,655
347,8618,629,766(252,415)
9,076,868

351,655
348,353
8,510,834(632,944)
8,577,899

14,797

8,138

14,183

13,64033,214

55,106

62,19476,88531,0049,170,067
20,251,509

32,4398,687,225
18,316,714

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive
incomeValuation difference on
available-for-sale securities
Remeasurements of defined benefit
plans
Foreign currency translation
adjustment
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statement of Income)(For the Three-month Period)

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Guarantee commission received
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current
assetsTotal extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitLoss attributable to non-controllinginterests
Profit attributable to owners of parent

1Q of Previous
Consolidated Period(Nov. 1, 2021 - Jan. 31, 2022)
3,897,997
1,630,840
2,267,156(Thousands of yen)
1Q of Current
Consolidated Period(Nov. 1, 2022 - Jan. 31, 2023)
4,912,277
2,073,423
2,838,853

2,146,883

2,476,545

120,273362,308

2,420
6,014
96,211
7,213
111,858

3,006
6,014
7,842
16,863

4,275
5,256
2,458
11,990220,142

4,669
2,440
2,221
9,331
369,841

2,259

2,905

2,259
217,883
20,99818,09539,093
178,789

2,905
366,935
49,263
138,357
187,620
179,314(1,399)(795)

180,188

180,1105IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

(Quarterly Consolidated Statement of Comprehensive Income)(For the Three-month Period)

ProfitOther comprehensive income
Valuation difference on
available-for-sale securities
Remeasurements of defined benefit
plans, net of tax
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

1Q of Previous
Consolidated Period(Nov. 1, 2021 - Jan. 31, 2022)
178,789(Thousands of yen)
1Q of Current
Consolidated Period(Nov. 1, 2022 - Jan. 31, 2023)
179,314(12,765)(6,658)

(900)

(491)

20,311
6,645
185,435

23,414
16,264
195,579

184,120

194,8021,314777

6IKK Holdings Inc. (2198) Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2023

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
No related information.
(Notes on Significant Fluctuation in Amounts of Shareholders’ Equity)
No related information.
(Changes in Accounting Policies)
Application of the Implementation Guidance on Accounting Standards for Measurement of Fair ValueIKK has applied the Implementation Guidance on Accounting Standard for Measurement of Fair Value(Accounting Standards Board of Japan (ASBJ) Guidance No. 31, June 17, 2021) from the beginning of the firstquarter of the current fiscal year, and has applied the new accounting policies set forth by the Implementation
Guidance on Accounting Standard for Measurement of Fair Value, etc. prospectively in accordance with thetransitional treatment in the Paragraph 27-2 of the Implementation Guidance on Accounting Standard for
Measurement of Fair Value. There is no effect of the application of these standards on the quarterly
consolidated financial statements.
(Additional Information)
Accounting estimates associated with the COVID-19 pandemic
In estimating the impairment of non-current assets and the amount of deferred tax assets that can berecovered there have been no significant changes to the assumptions made concerning the spread of theCOVID-19 pandemic in the securities report for the previous fiscal year.

7