Consolidated Financial Results for the Fiscal Year Ended October 31, 2023
(Japanese GAAP)
December 11, 2023
Listed on: Tokyo Stock Exchange
Name of listed company: IKK Holdings Inc.
Securities code: 2198
URL: https://www.ikk-grp.jp/
Representative:
Katsushi Kaneko, Chairman and &hief Executive Officer
Contact:
Kazuya Nagashima, Manager of Management Division
TEL: +81-92-937-7030
Scheduled date of Annual General Meeting of Shareholders: January 30, 2024
Scheduled date of filing securities report:
January 30, 2024
Scheduled date of starting dividends distribution:
January 31, 2024
Supplementary materials prepared:
Yes
Results information meeting held:
Yes (for securities analysts and institutional investors)(Figures shown are rounded down to the nearest million yen.)

1. Consolidated financial results for the FY ended October 31, 2023 (Nov. 1, 2022 - Oct. 31, 2023)(1) Consolidated operating results(Percentage figures show changes from the previous fiscal year.)

Net Sales

Operating Profit

Millions of yen
21,99019,056

FY ended Oct. 31, 2023
FY ended Oct. 31, 2022

%
15.4
65.3

Millions of yen
1,955
1,808

Profit Attributable to
Owners of Parent
Millions of yen
%
1,340
(4.2)
1,398
-

Ordinary Profit%
8.1-

Millions of yen
2,005
2,096

%
(4.3)
-

Note: Comprehensive income: FY ended Oct. 31, 2023: 1,348 million yen (down 8.5%); FY ended Oct. 31, 2022: 1,473 million yen (-%)

Net Income per Share
Yen
45.93
47.48

FY ended Oct. 31, 2023
FY ended Oct. 31, 2022

Diluted Net Income
per Share
Yen-

Ordinary Profit toTotal Assets
%
9.9
11.1

ROE
%
14.0
16.7

Operating Profit to
Net Sales
%
8.9
9.5

Reference: Equity in earnings of affiliated companies: FY ended Oct. 31, 2023: - million yen; FY ended Oct. 31, 2022: - million yen(2) Consolidated financial position
Total Assets
Millions of yen
20,012
20,251

As of Oct. 31, 2023
As of Oct. 31, 2022

Net Assets
Millions of yen
10,0509,170

Equity Ratio
%
50.0
45.1

Net Assets per ShareYen
341.68309.49Reference: Equity capital: As of Oct. 31, 2023: 10,014 million yen; As of Oct. 31, 2022: 9,139 million yen(3) Consolidated cash flows

FY ended Oct. 31, 2023
FY ended Oct. 31, 2022

Cash Flows fromOperating Activities
Millions of yen
1,665
3,497

Cash Flows from
Investing Activities
Millions of yen(1,685)(750)

Cash Flows from
Financing Activities
Millions of yen
(874)
(426)

Cash and Cash Equivalents
at the End of the Year
Millions of yen
4,917
5,800

Total
Dividends

Dividends Dividends on
Payout Ratio Net Assets

2. Dividends
Dividends per Share
1Q End2Q End3Q EndFY EndAnnual

Yen
-

Yen
0.00
0.00
0.00

Yen
-

Yen
10.00
24.00
24.00

Yen
10.00
24.00
24.00

FY ended Oct. 31, 2022
FY ended Oct. 31, 2023
FY ending Oct. 31, 2024 (forecast)Millions of yen
299
703(Consolidated)(Consolidated)

%
21.1
52.3
48.5

%
3.5
7.4

3. Consolidated financial forecast for the FY ending October 31, 2024 (Nov. 1, 2023 - Oct. 31, 2024)(Percentage figures show changes from the same period in the previous fiscal year.)

Net SalesFirst half
Full year

Millions of yen
10,83023,350Operating Profit
%
9.0
6.2

Millions of yen
570
2,130

%
105.5
8.9

Ordinary Profit
Millions of yen
580
2,145

%
90.8
7.0

Profit Attributable to
Owners of Parent
Millions of yen%
305 170.7
1,420
5.9

Net Income
per Share
Yen
10.62
49.52

* Notes(1) Significant changes to subsidiaries during the period (transfer of specific subsidiaries accompanying changes in scope of
consolidation): No
Newly added: - Company name: Excluded: - Company name: (2) 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:

Yes
No
No
No

Note: For details, see “3. Consolidated Financial Statements and Notes; (5) Notes to Consolidated Financial Statements (Changes in Accounting Policies)”(attachments, page 12).

(3) Number of shares issued (common stock)1) Number of shares issued at the end of
period (including treasury shares)
2) Number of treasury shares at the end of
period3) Average number of shares outstanding
during the period

As of Oct. 31, 2023

29,956,800 shares As of Oct. 31, 2022

29,956,800 shares

As of Oct. 31, 2023

645,632 shares As of Oct. 31, 2022

427,349 shares

29,178,772 shares FY ended Oct. 31, 2022

29,458,200 shares

FY ended Oct. 31, 2023

(Reference) Non-consolidated financial results
Non-consolidated financial results for the FY ended October 31, 2023 (Nov. 1, 2022 - Oct. 31, 2023)(1) Non-consolidated operating results(Percentage figures show changes from the previous fiscal year.)

FY ended Oct. 31, 2023
FY ended Oct. 31, 2022

Net Sales
Millions of yen
%
3,917
54.9
2,529 (76.7)

Operating Profit
Millions of yen%
1,163 531.8
184
-

Yen
38.57
5.53

Diluted Net Income per
Share
Yen
-

Total Assets
Millions of yen
14,66914,404

Net Assets
Millions of yen
8,588
7,939

Net Income per ShareFY ended Oct. 31, 2023
FY ended Oct. 31, 2022

Ordinary Profit
Millions of yen%
1,190 280.7
312-

ProfitMillions of yen
1,125
162

%
591.3
-

(2) Non-consolidated financial position

As of Oct. 31, 2023
As of Oct. 31, 2022

Equity Ratio
%
58.5
55.1

Net Assets per ShareYen
293.00268.86

Reference: Equity capital: As of Oct. 31, 2023: 8,588 million yen; As of Oct. 31, 2022: 7,939 million yen* This financial report is not subject to an 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 cautionary
statements related to assumptions behind and use of forecasts, please see “1. Overview of Results of Operations; (4) Outlook” (attachments, page 3).

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

Attachments (Table of Contents)
1. Overview of Results of Operations āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 2(1) Results of Operations āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 2(2) Financial Position āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 2(3) Cash Flows āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 3(4) Outlook āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 3
2. Basic Approach to the Selection of Accounting Standards āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 4
3. Consolidated Financial Statements and Notes āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 5(1) Consolidated Balance Sheet āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 5(2) Consolidated Statements of Income and Comprehensive Income āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 7
Consolidated Statement of Income āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 7
Consolidated Statement of Comprehensive Income āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 8(3) Consolidated Statement of Changes in Equity āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 9(4) Consolidated Statement of Cash Flows āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 11(5) Notes to Consolidated Financial Statements āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 12
Notes on Premise of Going Concern āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 12
Changes in Accounting Policies āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 12
Segment Information, etc. āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 12
Per Share Information āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 13
Material Subsequent Events āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 13
4. Others āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 14
Change in Officers āāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāāā 14

1

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

1. Overview of Results of Operations(1) Results of Operations
During the fiscal year that ended in October 2023, COVID-19 was officially reclassified as a Category V
infectious disease under the Infectious Diseases Control Law. The Japanese economy continued to recovergradually from the pandemic as social and economic activities returned to normal and demand of foreign
tourists in Japan recovered. However, the outlook for the economy remains uncertain because of concerns
about the impact on the Japanese and global economies of such factors as the high cost of resources due to the
yen’s weakness caused by higher interest rates in other countries and increasing geopolitical risk involving
the Middle East.
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.
Fiscal year sales increased 15.4% from one year earlier to 21,990 million yen. Operating profit increased
8.1% to 1,955 million yen, ordinary profit decreased 4.3% to 2,005 million yen, and profit attributable toowners of parent decreased 4.2% to 1,340 million yen.
Business segment performance was as follows:a) Wedding Business
As numerous restrictions for safety during the pandemic ended, the IKK Group continued to holdweddings and receptions accompanied by many pandemic safety measures. The GEIHINKANKAIRAKUEN BETTEI (Mito Branch) was opened in April 2023.
As a result, sales increased 13.9% from one year earlier to 21,007 million yen and operating profit
increased 6.3% to 2,008 million yen.
b) Nursing-care Business
Sales increased 8.6% from one year earlier to 592 million yen mainly due to the opening of I Care
Life Imari (Imari Second Branch) in March 2023, but there was an operating loss of 11 million yen
compared with a 2 million yen loss one year earlier mainly due to opening expenses.
c) Food Business
Sales increased 43.0% from one year earlier to 260 million yen and operating profit increased 49.9%
to 59 million yen.
d) Photography Business
A subsidiary was established in November 2021 to operate photography business, and studio clori.
NAGOYA (Nagoya Branch) was opened in March 2023.
There were sales of 310 million yen compared with 14 million yen one year earlier and an operating
loss of 49 million yen compared with an 87 million yen loss one year earlier mainly due to opening
expenses.
e) Matrimonial Matchmaking Business
A subsidiary was established in November 2021 to operate matrimonial matchmaking business. There
were sales of 12 million yen compared with sales of 1 million yen one year earlier and an operating lossof 50 million yen compared with a 29 million yen loss one year earlier.
(2) Financial Positiona) Assets
Current assets were 6,376 million yen at the end of the current fiscal year, 826 million yen less thanat the end of the previous fiscal year. The main causes were decreases of 880 million yen in cash anddeposits and 69 million yen in other current assets, and an increase of 164 million yen in income taxes
refund receivable.
Non-current assets increased 587 million yen to 13,635 million yen. This was mainly attributable toan increase of 1,128 million yen in buildings and structures, and decreases of 382 million yen in
construction in progress and 149 million yen in guarantee deposits.
b) Liabilities
Current liabilities decreased 2,501 million yen to 5,103 million yen. The main causes were decreases
of 2,000 million yen in short-term borrowings and 676 million yen in other current liabilities.
Non-current liabilities increased 1,381 million yen to 4,858 million yen. This was mainly attributable

2

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

to an increase of 1,255 million yen in long-term borrowings.
c) Net assets
Net assets increased 880 million yen to 10,050 million yen. The main cause was an increase due toprofit attributable to owners of parent of 1,340 million yen, a decrease due to dividends from surplus of
299 million yen, and a decrease of 170 million yen in treasury shares due to purchase and sales oftreasury shares. As a result, compared with the end of the previous fiscal year, the equity ratio rose by
4.9 percentage point to 50.0%.
(3) Cash Flows
Cash and cash equivalents (hereinafter, “cash”) at the end of the current fiscal year were 4,917
million yen, a decrease of 883 million yen (15.2%) from the end of the previous fiscal year.
The following are cash flow conditions and factors for the current fiscal year.
a) Cash flows from operating activities
Cash provided by operating activities was 1,665 million yen (a decrease of 52.4% year on year).
Main cash inflows include profit before income taxes of 2,098 million yen, depreciation of 1,094 million
yen, an increase in provision for bonuses of 77 million yen, an increase in trade payables of 62 million
yen, an increase in contract liabilities of 163 million yen and a decrease in consumption taxes refund
receivable of 128 million yen. Outflows include a decrease in accounts payable-other of 155 million yen,a decrease in accrued consumption taxes of 528 million yen and an increase in income taxes paid of
1,388 million yen.
b) Cash flows from investing activities
Cash used in investing activities was 1,685 million yen (an increase of 124.6% year on year), mainly
attributable to the outlays of 1,802 million yen for the purchase of property, plant and equipment.
c) Cash flows from financing activities
Cash used in financing activities was 874 million yen (an increase of 105.0% year on year). Maincash inflows include proceeds from long-term borrowings of 2,670 million yen. Outflows include a net
decrease in short-term borrowings of 2,000 million yen, 1,075 million yen for repayments of long-termborrowings and 400 million yen for purchase of treasury shares.
Reference: Cash flow indicator trends
FY2019FY2020

FY2021

FY2022

FY2023Equity ratio (%)

59.8

44.1

43.0

45.1

50.0

Equity ratio at market value (%)

97.6

106.9

112.7

91.9

94.8

Ratio of interest-bearing debt to cash flows (year)

1.8

-

2.0

1.4

2.6

Interest coverage ratio (times)
110.0
119.6
211.0
85.3
Equity ratio: Shareholders’ equity / Total assets
Equity ratio at market value: Market capitalization / Total assets
Ratio of interest-bearing debt to cash flows: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest expense
Notes: 1. The consolidated financial figures constitute the basis for calculating these indicators.
2. Market capitalization is calculated based on the number of shares outstanding after the deduction oftreasury shares.
3. Cash flows are based on cash flows from operating activities in the consolidated statement of cash flows.
4. Interest-bearing debt includes all debts recorded on the consolidated balance sheet on which interest ispaid.
5. The basis for interest expense is the amount of interest paid recorded in the consolidated statement of cash
flows.
6. The ratio of interest-bearing debt to cash flows and interest coverage ratio are not shown for the fiscal year
ended October 31, 2020 because operating cash flows were negative.

(4) Outlook
In Japan, social and economic activities are returning to normal after COVID-19 was officially
reclassified as a Category V infectious disease under the Infectious Diseases Control Law.
Due to the current recovery in the number of weddings and guests, we forecast sales of 23,350 million
yen, up 6.2%, operating profit of 2,130 million yen, up 8.9%, ordinary profit of 2,145 million yen, up 7.0%,
and profit attributable to owners of parent of 1,420 million yen, up 5.9% in the fiscal year ending in October
2024.
These forecasts are based on currently available information and actual results may differ substantiallybecause of various factors.
3

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

2. Basic Approach to the Selection of Accounting Standards
The IKK Group will continue to prepare consolidated financial statements in accordance with generally
accepted accounting principles in Japan for the time being to permit comparisons with prior years and withthe financial data of other companies.
We will take suitable actions with regard to the application of International Financial Reporting Standards(IFRS) by taking into account associated factors in Japan and other countries.

4

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

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

5,891,686
459,639240,238
82,8972,256
534,797(7,974)7,203,541

5,011,277
447,796
204,467
91,029166,706
465,000(9,596)
6,376,681

19,230,015

21,169,625(11,435,264)(12,246,714)

7,794,750
66,391(40,000)

8,922,911
76,335(53,084)

26,39023,2511,850,919
386,758
511,053(286,858)
224,195
10,283,014
160,306

1,850,919
4,026
1,289,142(980,570)
308,572
11,109,680
163,724

328,042
1,447,559
849,337(20,292)
2,604,647
13,047,967
20,251,509

340,951
1,297,564
746,560(23,158)
2,361,918
13,635,323
20,012,005

AssetsCurrent assets
Cash and deposits
Accounts receivable-trade
Merchandise
Raw materials and supplies
Income taxes refund receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation andimpairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment andvehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

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

853,784
2,150,000

915,516150,000

774,796

1,114,458

785,757
1,058,745
296,569
1,685,111
7,604,765

315,283
1,225,544
373,913
1,008,858
5,103,575

1,877,328
34,284
14,663
1,064,951
3,350
482,0993,476,677
11,081,442

3,132,601
25,282
13,562
1,199,356
16,877
470,667
4,858,347
9,961,922

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

351,655
348,488
9,671,036(422,560)
9,948,620

14,797

8,138

14,183

11,86633,214

46,34962,194

66,35531,0049,170,067
20,251,509

35,107
10,050,083
20,012,005

Liabilities
Current liabilities
Accounts payable-trade
Short-term borrowings
Current portion of long-termborrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for point card certificates
Asset retirement obligations
Deferred tax liabilities
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
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

6

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income

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

Previous Consolidated FY(Nov. 1, 2021 - Oct. 31, 2022)
19,056,906
7,816,582
11,240,324(Thousands of yen)
Current Consolidated FY(Nov. 1, 2022 - Oct. 31, 2023)
21,990,121
9,102,767
12,887,354

9,431,662

10,932,217

1,808,661

1,955,137

10,661
24,123
8,697
244,087
29,333
316,903

13,657
16,06011,17938,71279,60916,3095,905
7,186
29,4012,096,163

19,391
10,022
29,4142,005,332-

122,626
122,626

12,91629,351

12,9162,083,247
787,476(96,318)
691,158
1,392,089

29,351
2,098,607
749,1125,989
755,101
1,343,506(6,564)

3,193

1,398,653

1,340,312

7

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

Consolidated Statement of Comprehensive Income

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

Previous Consolidated FY(Nov. 1, 2021 - Oct. 31, 2022)
1,392,089(Thousands of yen)
Current Consolidated FY(Nov. 1, 2022 - Oct. 31, 2023)
1,343,506

14,797(6,658)(3,282)(2,319)70,335
81,8491,473,938

14,0485,070
1,348,577

1,474,548

1,344,473

(609)

4,103

8

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

(3) Consolidated Statement of Changes in Equity
Previous Consolidated FY (Nov. 1, 2021 - Oct. 31, 2022)(Thousands of yen)
Shareholders’ equity
Share capital

Capital surplus Retained earnings Treasury shares351,655

Balance at beginning of period

351,7317,230,337

Total shareholders’equity(340,466)

7,593,258

Changes during period-

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares

1,398,653(1,699)

Disposal of treasury shares
Purchase of shares of
consolidated subsidiaries
Increases and decreases due toliquidation of consolidated
subsidiaries
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period

1,398,653
88,051(2,170)86,351(2,170)

775

775
-

351,655

Balance at end of period(3,870)347,861

1,399,428
8,629,766

88,051(252,415)

1,483,609
9,076,868

Non-controllinginterests

Total net
assets

Accumulated other comprehensive income
Valuation
Remeasurements ofdifference on
defined benefit
available-forplanssale securities
Balance at beginningof period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of shares of
consolidated
subsidiaries
Increases anddecreases due toliquidation of
consolidated
subsidiaries
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period-17,472Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income(32,549)(15,076)

26,411

7,604,593
1,398,653
86,351

6,578

4,408

775

-

14,797(3,289)65,76377,271(1,986)75,285

14,797(3,289)65,76377,271

4,592

1,565,473

14,797

14,18333,21462,19431,0049,170,067

9

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

Current Consolidated FY (Nov. 1, 2022 - Oct. 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital

Capital surplus Retained earnings Treasury shares351,655

Balance at beginning of period

347,8618,629,766

Total shareholders’equity(252,415)

9,076,868

Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares(299,042)(299,042)

1,340,312

1,340,312(400,031)
229,886(523)

Disposal of treasury shares
Purchase of shares of
consolidated subsidiaries
Increases and decreases due toliquidation of consolidated
subsidiaries
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period(400,031)
229,363-1,150

351,655

Balance at end of period

626
348,488

1,150

1,041,270
9,671,036(170,144)(422,560)

871,752
9,948,620

Non-controllinginterests

Total net
assets

Accumulated other comprehensive income
Valuation
Remeasurements ofdifference on
defined benefit
available-forplanssale securities
Balance at beginningof period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of shares of
consolidated
subsidiaries
Increases anddecreases due toliquidation of
consolidated
subsidiaries
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of
period14,797

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income33,21462,194

14,18331,0049,170,067(299,042)
1,340,312(400,031)
229,363
-

-

1,150

(6,658)(2,316)13,135

4,160

4,103

8,264

(6,658)(2,316)13,135

4,160

4,103

880,016

8,138

11,866

46,34966,35535,107

10,050,083

10IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

(4) Consolidated Statement of Cash Flows(Thousands of yen)Previous Consolidated FY
Current Consolidated FY(Nov. 1, 2021 - Oct. 31, 2022) (Nov. 1, 2022 - Oct. 31, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for point cardcertificates
Subsidy income
Subsidies for employment adjustment
Loss on retirement of non-current assets
Interest and dividend income
Interest expenses
Loss on cancellation of leases
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other
Increase (decrease) in contract liabilities
Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund
receivable
Other, net
SubtotalInterest and dividend income
Interest paid
Subsidies received
Proceeds from subsidy income
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
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
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

112,083,247
1,011,121

2,098,607
1,094,336

3,611

4,486

(2,926)(7,888)77,323(12,495)(2,152)(1,101)(244,087)
12,916(10,661)
16,3095,905(140,980)
53,038
264,949
249,388
31,875346,134(122,626)
29,351(13,657)
19,391
10,70827,64262,007(155,125)
163,812(528,134)(230,140)

128,747(141,576)
3,298,084
6,971(16,572)
244,087(35,233)
3,497,336

63,6382,946,914
9,030(19,520)
115,075
2,296(1,388,030)
1,665,767(99,997)(701,249)(38,301)
89,139(750,409)(1,802,432)(38,836)
155,899(1,685,369)

50,000229,550(792,253)
82,162(623)
4,408(426,756)(2,000,000)
2,670,000(1,075,065)(400,031)
227,699(298,614)
1,150(874,861)

47,041

11,0542,367,213
3,433,473
5,800,686(883,409)
5,800,686
4,917,277

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
No related information.
(Changes in Accounting Policies)
Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement
IKK has applied the Implementation Guidance on Accounting Standard for Fair Value Measurement(Accounting Standards Board of Japan (ASBJ) Guidance No. 31, June 17, 2021) from the beginning of thecurrent fiscal year, and has applied the new accounting policies set forth by the Implementation Guidance on
Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional treatment in
the Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement.
There is no effect of the application of the guidance on the consolidated financial statements.
(Segment Information, etc.)
Segment Information
Previous Consolidated FY (Nov. 1, 2021 - Oct. 31, 2022) and Current Consolidated FY (Nov. 1, 2022 - Oct.
31, 2023)
The IKK Group’s reporting segments include Wedding Business, Nursing-care Business, Food Business,
Photography Business and Matrimonial Matchmaking Business. However, Nursing-care Business, FoodBusiness, Photography Business and Matrimonial Matchmaking Business constitute a very small proportion of
total sales and earnings and their importance in terms of disclosure is limited. Accordingly, the presentation ofsegment information is omitted.

12

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

(Per Share Information)
Previous Consolidated FY

Current Consolidated FY(Nov. 1, 2021 - Oct. 31, 2022)(Nov. 1, 2022 - Oct. 31, 2023)

Net assets per share
Net income per share

309.49 yen
47.48 yen

Net assets per share
Net income per share

341.68 yen
45.93 yen

Notes:
1. Diluted net income per share is not stated because dilutive shares do not exist.
2. Basis for the calculation of net income per share is as follows.

Previous Consolidated FY Current Consolidated FY(Nov. 1, 2021 - Oct. 31, 2022) (Nov. 1, 2022 - Oct. 31, 2023)

Net income per share
Profit attributable to owners ofparentAmount not attributable to commonshareholders
Profit attributable to commonshareholders of parent
Average number of common shares
outstanding during the period
3.

(Thousands of yen)

1,398,653

1,340,312(Thousands of yen)--(Thousands of yen)

1,398,653

1,340,312(Shares)

29,458,200

29,178,772

IKK stock held by the IKK Employee Stock Ownership Association Exclusive Trust is included in treasury shares and isthus deducted from the number of shares issued at the end of each fiscal year that was used to calculate net assets per share(deductions of 374,800 shares and 0 share on October 31, 2022 and 2023, respectively).
In addition, this trust stock is included in treasury shares that was deducted from the average number of shares outstanding
during the period that was used to calculate net income per share (deductions of 440,524 shares and 217,245 shares in thefiscal years ended on October 31, 2022 and 2023, respectively).

(Material Subsequent Events)
Reintroduction of Trust-Type Employee Stock Ownership Incentive Plan (E-Ship®)
The IKK Board of Directors approved a resolution on December 11, 2023 to reintroduce the Trust-Type
Employee Stock Ownership Incentive Plan (E-Ship®)(the “Plan”) for the purpose of granting incentives to the
IKK Group employees in order to achieve medium to long-term growth of the IKK’s corporate value.
1. Overview of the Plan
The Plan functions as an incentive for all employees who belong to the IKK Employee Stock Ownership
Association. IKK has established the IKK Employee Stock Ownership Association Exclusive Trust (E-Ship
Trust) at a trust bank. This E-Ship Trust will purchase in advance a number of shares of IKK stock equal to thenumber of shares that the stock ownership association is expected to purchase during the next four years andnine months. Following the purchase of this stock, the E-Ship Trust will continuously sell IKK stock to thestock ownership association. When the E-Ship Trust ends, any cumulative capital gains from the sale of stock
to the stock ownership association will be classified as residual trust assets and distributed to qualified trust
beneficiaries. IKK will guarantee loans of the E-Ship Trust for funds to acquire IKK stock. Consequently, if
there is a cumulative loss from the sale of stock at the end of the trust due to a decline in the price of IKK stock
and an outstanding loan at the trust equal to this loss, IKK will cover this cumulative loss.
2. Overview of the E-Ship Trust(1) Name:
IKK Employee Stock Ownership Association Exclusive Trust(2) Trustor:IKK Holdings Inc.
(3) Trustee:
The Nomura Trust and Banking Co., Ltd.
(4) Beneficiary:
Individuals who meet the beneficiary requirements (Individuals who have completed thedesignated procedure after confirmation of eligibility as a beneficiary)(5) Contract date: December 11, 2023
(6) Period:
From December 11, 2023 to September 25, 2028 (plan)(7) Purpose:
The trust will provide a constant supply of IKK stock to the stock ownership associationand distribute trust assets to individuals who meet the beneficiary requirements.
13

IKK Holdings Inc. (2198) Consolidated Financial Results for the Fiscal Year Ended October 31, 2023

3. Purchase of IKK stock by the E-Ship Trust(1) Type of shares to be purchased:(2) Total value of shares to be purchased:(3) Purchase schedule:(4) Method of purchase:

IKK common stock
Up to 508 million yen
From December 14, 2023 to January 12, 2024
Purchase on the Tokyo Stock Exchange

4. Others
Change in Officers(1) Change in Representatives
No related information.
(2) Change in Other Officers- Retiring directors (excluding directors who are Audit and Supervisory Committee members)
Director Masaki Kikuchi
Note: As of the conclusion of the Annual General Meeting of Shareholders scheduled on January 30, 2024, theterm of office will expire.
- Retiring directors (directors who are Audit and Supervisory Committee members)
Director (Audit and Supervisory Committee member) Toshiyuki Kubo
Outside Director (Audit and Supervisory Committee member) Hiromi Fujita
Note: As of the conclusion of the Annual General Meeting of Shareholders scheduled on January 30, 2024, theterm of office will expire.
- Candidate for directors (excluding directors who are Audit and Supervisory Committee members)
Outside Director Tomohiro Hirayama
Note: IKK plans to register Mr. Tomohiro Hirayama as an independent office as stipulated under the Tokyo
Stock Exchange rules.
- Candidate for directors (directors who are Audit and Supervisory Committee members)
Director (Audit and Supervisory Committee member) Keisuke Abe(3) Effective date
January 30, 2024
(4) Profile of newly appointed director
Name: Tomohiro Hirayama
Date of birth: January 4, 1985
Brief career history:
April 2008
Joined Hakuhodo DY Media Partners Inc.
August 2017
Director, CTO of RoomClip Inc.
February 2021 Executive Officer, CTO of RoomClip Inc. (to present)(5) Profile of newly appointed director who is an Audit and Supervisory Committee member
Name: Keisuke Abe
Date of birth: May 12, 1963
Brief career history:
July 2003
Deputy Manager of Iizuka Branch, The Bank of Fukuoka, Ltd.
April 2013
Manager of Sangamori Branch, The Bank of Fukuoka, Ltd.
January 2017Manager of Kitakyushu Branch, Insurance Division, Fukuoka Shoji Co., Ltd.
August 2021
Chief Assistant, Audit Department, The Bank of Fukuoka, Ltd. (to present)

14