Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending October 31, 2023
(Japanese GAAP)

September 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 chief Executive Officer
Contact:
Kazuya Nagashima, Manager of Management Division
Scheduled date of filing quarterly financial report:
September 13, 2023
Scheduled date of starting dividends distribution:
Supplementary quarterly materials prepared:
Yes
Quarterly results information meeting held:NoTEL: +81-92-937-7030(Figures shown are rounded down to the nearest million yen.)

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

Net Sales
3Q of FY ending Oct. 31, 2023
3Q of FY ended Oct. 31, 2022

Millions of yen
15,70013,285

Operating Profit%
18.2
70.3

Millions of yen
984
1,034%(4.8)-Ordinary Profit
Millions of yen
1,017
1,280%(20.6)-

Profit Attributable toOwners of Parent
Millions of yen%
634 (24.4)
840-Note: Comprehensive income: 3Q of FY ending Oct. 31, 2023: 636 million yen (down 31.4%); 3Q of FY ended Oct. 31, 2022: 926 million yen (-%)

3Q of FY ending Oct. 31, 2023
3Q of FY ended Oct. 31, 2022

(2) Consolidated financial position

3Q of FY ending Oct. 31, 2023
FY ended Oct. 31, 2022

Net Income per Share
Yen
21.79
28.54

Diluted Net Income per ShareYen-Total Assets
Millions of yen
18,523
20,251Net Assets
Millions of yen
9,337
9,170

Equity Ratio%
50.2
45.1

Reference: Equity capital: 3Q of FY ending Oct. 31, 2023: 9,303 million yen; FY ended Oct. 31, 2022: 9,139 million yen

2. Dividends
1Q End2Q EndYen-

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

Yen
0.00
0.00

Dividends per share
3Q EndYen-

FY EndAnnualYen
10.00

Yen
10.00

24.00

24.00

Note: Revisions to the latest projected dividends: No
The IKK Board of Directors approved a resolution on July 31, 2023 to revise the year-end dividend forecast (dividend increase) with a record date ofOctober 31, 2023. For more information, please refer to “Notice of Revisions to Dividend Forecast (Dividend Increase)” (Japanese version only) that wasannounced on July 31, 2023.

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 Sales
Full year

Millions of yen
21,780Operating Profit%
14.3

Millions of yen
2,200Note: Revisions to the latest projected financial results: No%
21.6

Ordinary Profit
Millions of yen
2,230%
6.4

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

Net Incomeper Share
Yen
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:

YesNo
NoNo

Note: For details, see “2. Quarterly Consolidated Financial Statements and Notes; (3) Notes to Quarterly Consolidated Financial Statements (Changes inAccounting Policies)” (attachments, page 8).

(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 ofperiod3) Average number of shares outstanding
during the period (quarterly cumulative)

3Q of FY ending
Oct. 31, 2023
3Q of FY ending
Oct. 31, 2023
3Q of FY ending
Oct. 31, 2023

FY ended Oct. 31,2022
FY ended Oct. 31,645,632 shares2022
3Q of FY ended
29,134,156 shares
Oct. 31, 2022
29,956,800 shares

29,956,800 shares
427,349 shares
29,438,879 shares* The current quarterly financial report is not subject to quarterly review 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. Qualitative Information on Quarterly Financial Results; (3) Explanationof Consolidated Forecast and Other Forward-looking Statements” (attachments, page 3).

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

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

2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6

Quarterly Consolidated Statement of Income
For the Nine-month Period

6Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period

7(3) Notes to Quarterly Consolidated Financial Statements

8Notes on Premise of Going Concern

8Notes on Significant Fluctuation in Amounts of Shareholders’ Equity

8

Changes in Accounting Policies

81

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

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Results of Operations
Starting from May 8, 2023, COVID-19 has been officially reclassified as a Category V infectious disease
under the Infectious Diseases Control Law. Consequently, during the first nine months of the current fiscal
year (November 1, 2022, to July 31, 2023), positive indications of a gradual economic recovery are emerging,mirroring the gradual return to regular social and economic activities following the relaxation of legal
constraints on people’s movement. However, the outlook for the economy remains uncertain because ofincreasing geopolitical risk, including the Ukraine crisis, and global economic risk such as rapidly rising raw
material prices caused by the yen’s decline.
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.
Net sales in the first nine months increased 18.2% from one year earlier to 15,700 million yen. Operating
profit decreased 4.8% to 984 million yen, ordinary profit decreased 20.6% to 1,017 million yen, and profit
attributable to owners of parent decreased 24.4% to 634 million yen.
Business segment performance was as follows:a) Wedding Operations
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 17.0% from one year earlier to 15,019 million yen and operating profit
increased 1.9% to 1,070 million yen.
b) Nursing-care Operations
Sales increased 6.1% from one year earlier to 432 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 6 million yen
compared with a 2 million yen profit one year earlier mainly due to opening expenses.
c) Food Business
Sales increased 53.8% from one year earlier to 186 million yen and operating profit increased 77.6%
to 49 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 183 million yen and an operating loss of 84 million yen compared with a 27
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. Therewere sales of 8 million yen compared with sales of 0 million yen one year earlier and an operating loss of
45 million yen compared with a 18 million yen loss one year earlier.
(2) Explanation of Financial Position
Total assets were 18,523 million yen at the end of the third quarter of the current fiscal year, 1,727
million yen less than at the end of the previous fiscal year. The main cause was a decrease of 2,600
million yen in cash and deposits and there was an increase of 1,051 million yen in property, plant andequipment.
Liabilities decreased 1,895 million yen to 9,185 million yen. The main causes were decreases of
2,005 million yen in short-term borrowings, 198 million yen in accounts payable-trade, 776 million yen
in income taxes payable, and 821 million yen in other current liabilities. There were increases of 1,877
million yen in long-term borrowings and 131 million yen in asset retirement obligations.
Net assets increased 167 million yen to 9,337 million yen. The main causes include an increase due to2

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

profit attributable to owners of parent of 634 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
5.1 percentage point to 50.2%.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The fiscal year consolidated forecasts announced on December 12, 2022 remain unchanged.

3

IKK Holdings Inc. (2198) Consolidated Financial Results for the Third 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, 3Q(Jul. 31, 2023)

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

3,290,813
338,810
203,975
82,250803,127(6,156)
4,712,821

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

9,122,527
1,850,919
361,204
11,334,651
169,099

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

1,335,086
971,9102,306,997
13,810,748
18,523,569

853,784
2,150,000

655,550
145,000

774,796

1,117,933

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

8,858
187,335
1,922,012
4,036,689

1,877,328
34,284
14,663
1,064,951
485,450
3,476,677
11,081,442

3,411,528
29,983
14,883
1,196,252
496,489
5,149,136
9,185,825

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, netLand
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

4

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

Previous Consolidated FY(Oct. 31, 2022)(Thousands of yen)
Current Consolidated FY, 3Q(Jul. 31, 2023)

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

351,655
348,4888,965,618(422,560)
9,243,202

14,797

11,09814,183

11,85333,21437,59262,19460,54431,0049,170,067
20,251,509

33,997
9,337,744
18,523,569

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

5IKK Holdings Inc. (2198) Consolidated Financial Results for the Third 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 Nine-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
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary incomeSubsidy 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

3Q of Previous
Consolidated Period(Nov. 1, 2021 - Jul. 31, 2022)
13,285,308
5,448,824
7,836,483(Thousands of yen)
3Q of Current
Consolidated Period(Nov. 1, 2022 - Jul. 31, 2023)
15,700,559
6,610,209
9,090,349

6,802,154

8,105,682

1,034,328

984,667

7,767
18,043
222,314
21,520269,645

9,321
16,06030,16755,54912,134
5,840
5,649
23,623
1,280,350

14,225
8,907
23,132
1,017,083-

119,621
119,621

7,845

24,198

7,845
1,272,504
426,373
8,946
435,319
837,185

24,198
1,112,507
301,624
173,405
475,029
637,477(3,007)2,583

840,192

634,8946IKK Holdings Inc. (2198) Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending October 31, 2023

(Quarterly Consolidated Statement of Comprehensive Income)(For the Nine-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

3Q of Previous
Consolidated Period(Nov. 1, 2021 - Jul. 31, 2022)
837,185(Thousands of yen)
3Q of Current
Consolidated Period(Nov. 1, 2022 - Jul. 31, 2023)
637,47728,115(3,699)(3,680)(2,223)65,272
89,708926,893

4,682(1,240)636,237

924,300

633,244

2,592

2,993

7

IKK Holdings Inc. (2198) Consolidated Financial Results for the Third 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.

8