Translation
Notice: This document has been translated from the Japanese original for reference purposes. In the event of any discrepancy
between this translated document and the Japanese original, the latter shall prevail.

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending September 2023
(Based on IFRS)
February 3, 2023
Name of listed company: Decollte Holdings Corporation
Securities code:

7372

Representative:

Kenji Arai, CEO

Listing exchange: Tokyo Stock Exchange

URL: https://www.decollte.co.jp/

Inquiries:

Noriyuki Tachibana, Director and General Manager of the Administration
Department
Scheduled date for filing quarterly securities report:
February 3, 2023
Scheduled date for commencing dividend payments:

Phone: +81-797-38-3692-

Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefing session:

No(Amounts are rounded down to the nearest million yen, unless otherwise noted)
1. Financial Results for the First Quarter (October 1, 2022 to December 31, 2022) of the Fiscal Year Ending September 30, 2023
(1) Consolidated Operating Results (Cumulative)(Percentage figures represent year-on-year changes)
Revenue

Operating profit

Pre-tax profit

ProfitFirst quarter ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2022

1,815

16.8

539

13.6

509

13.7

341

13.3

December 31, 2021

1,554

8.4

474

(8.1)

448

(3.5)

301

(15.7)

Profit attributable toowners of parent

Total comprehensive income

Basic earnings per share

Diluted earnings per shareFirst quarter ended

Millions of yen%

Millions of yen

%

Yen

Yen

December 31, 2022

341

13.3

341

13.3

66.97

–

December 31, 2021

301

(15.7)

301(15.7)

53.13–(Note) Although there exists balance of share acquisition rights, diluted earnings per share is not presented as there were no dilutive
shares having dilutive effects.
(2) Consolidated Financial Position
Total assets
As ofEquity attributable toowners of parent

Total equity

Ratio of equity attributableto owners of parent

Millions of yen

Millions of yen

Millions of yen%

13,049

4,602

4,602

35.3

12,588

4,257

4,257

33.8

December 31, 2022
September 30, 2022
(end of previous fiscal year)

2. Cash Dividends
Annual dividends per share
End of
1st quarterEnd of
2nd quarterEnd of
3rd quarter

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended September 30, 2022

–

0.00

–

0.00

0.00

Fiscal year ending September 30, 2023

–
0.00

–

0.00

0.00

Fiscal year ending September 30, 2023
(Forecast)(Note) Revisions to the most recently announced dividend forecast: No

3. Forecast of Financial Results for the Fiscal Year Ending September 30, 2023 (from October 1, 2022 to September 30, 2023)(Percentage figures indicate year-on-year changes)
Revenue
Millions of yen
Full year

Operating profit% Millions of yen

6,928 30.2

Pre-tax profit% Millions of yen

1,233 (10.4)

Profit attributable to Basic earnings
owners of parent
per share

Profit% Millions of yen

1,092 (13.7)% Millions of yen

735 (27.7)%

Yen

735 (27.7)

144.35(Note) Revisions to the most recently announced earnings forecast: No* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in change in scopeof consolidation): None
(2) Changes in accounting policies, and changes in accounting estimates
1) Changes in accounting policies required by IFRS:No
2) Changes in accounting policies other than those in 1) above: No
3) Changes in accounting estimates:No(3) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022
5,670,000 shares As of September 30, 2022
2) Number of treasury shares at the end of the period
As of December 31, 2022
571,939 shares As of September 30, 2022
3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
First quarter ended December 31, 2022 5,098,061 shares First quarter ended December 31, 2021

5,670,000 shares
571,939 shares
5,669,951 shares* This summary of financial results is not subject to quarterly review procedures by a public accountant or audit corporation.
* Explanation regarding appropriate use of earnings forecasts, and other notes
1. The earnings outlook and other forward-looking statements contained in this document are based on information currently
available to and certain assumptions that are thought to be reasonable by the Company. Accordingly, such statements should not
be construed as a guarantee of achieving the results by the Company. Actual financial results and the like may differ materially
due to various factors. In addition, since the impact of COVID-19, such as when it will settle down, is still uncertain, we will promptly
disclose revisions to the earnings forecast based on future business activities when such becomes necessary.
2. Financial results briefing material will be posted on the Company’s website (https://ir.decollte.co.jp/) on February 3, 2023.

Contents of Attachment
1. Qualitative Information on the Financial Results for the Period under Review .................................................................................... 2(1) Overview of Operating Results ......................................................................................................................................................... 2(2) Financial Position ............................................................................................................................................................................. 3(3) Explanations on Consolidated Earnings Forecast and Other Forecast Information .......................................................................... 3
2. Condensed Quarterly Consolidated Financial Statement and Significant Notes Thereto ..................................................................... 4(1) Condensed Quarterly Consolidated Statement of Financial Position ............................................................................................... 4(2) Condensed Quarterly Consolidated Statement of Comprehensive Income ..................................................................................... 6(3) Condensed Quarterly Consolidated Statement of Changes in Equity .............................................................................................. 7(4) Condensed Quarterly Consolidated Statement of Cash Flows ......................................................................................................... 8(5) Notes to Condensed Quarterly Consolidated Financial Statements ................................................................................................. 9(Notes on Going Concern Assumption) ............................................................................................................................................ 9(Changes in Accounting Policies) ...................................................................................................................................................... 9(Changes in Accounting Estimates)................................................................................................................................................... 9(Segment Information) ..................................................................................................................................................................... 9-1-

1. Qualitative Information on the Financial Results for the Period under Review(1) Overview of Operating Results
During the first quarter of the fiscal year ending September 30, 2023, the Japanese economy initially showed signs of recovery
in consumption trends for both corporates and consumers as activity restrictions and overseas travel restrictions were eased.
However, uncertain condition continues due to factors such as sluggish consumption activities brought about by the following
eighth wave of COVID-19 infections, and price hikes on resources and raw materials caused by the depreciation of yen resulting
from the unstable overseas situation and global monetary tightening having a negative impact on the domestic economy.
In the bridal industry, the number of couples having conventional wedding ceremonies and receptions is recovering in someareas, but with values towards wedding ceremonies changing at a faster pace amidst the pandemic, it is hovering at a level lower
than the pre-pandemic. There are movements to respond to customers’ demands by shifting to online weddings andceremonies with a small number of guests, but full-scale recovery is yet to be seen with the decrease in unit prices due to thedecrease in number of attendees.
On the other hand, while various new forms of weddings are spreading amid the pandemic, photo weddings are also attracting
attraction as a new style of wedding ceremony and the photo wedding market is flourishing including the fact that some business
operators are attempting to newly enter the market.
Under such a business environment, the photo wedding service, the Company’s major business, has been executing measuresin line with the situation by capturing customers’ needs in order to respond to the increasing expectations to photographic
wedding ceremonies. The measures include the increase of online special consultation counters, which enables non-contact
applications to photo shootings with a peace of mind even during the pandemic, and enhancement of Photogenic Journey,
which provides photo wedding services at travel destinations as activity restrictions are being eased.
In addition, through the anniversary photo service HAPISTA, the Company has been providing photo services that provide
happy experiences to families centering on their children that they would like to repeat not only for shooting events such as
Omiyamairi (baby’s first visit to a shrine) and Shichigosan (ceremony to wish health and prosperity for young children). The
Company currently operates five studios throughout Japan and will target business expansion through increasing the number of
new studio openings.
The operating results for the first quarter of the fiscal year ending September 30, 2023, was affected by the eighth wave of
COVID-19 infections, but revenue from the studio business has surpassed that of the previous fiscal year and posted record highrevenue on consolidated basis. In terms of cost, it has increased mainly due to factors including progression of initiatives toenhance prior employment and cultivation of personnel to respond to the acceleration of new studio openings and expansionof studio locations, but the revenue growth achieved by the growth of existing studios as well as contribution from new studios
opened in the previous fiscal year absorbed the cost increase. As a result, revenue was 1,815 million yen (up 16.8% year onyear), an increase of 261 million yen from the year-earlier period. Operating profit was 539 million yen (up 13.6% year on year),an increase of 64 million yen from the year-earlier period. Profit attributable to owners of parent was 341 million yen (up 13.3%
year on year), an increase of 40 million yen from the same period in the previous fiscal year.
The overview of each business segment is as described below.
<Studio Business>
The studio business, especially the number of customers visiting studios and the number of photo shootings, was affected by
the eighth wave of COVID-19 infections during the first quarter of the fiscal year ending September 30, 2023, as mentioned
above. However, revenue and operating profit performed steadily due to increased average customer spend through provisionof various plans and new services responding to the increase in demand for the photo wedding services and implementation of
measures to deal with the pandemic.
Segment results for the first quarter of the fiscal year ending September 30, 2023, were revenue of 1,793 million yen (up17.1% year on year) and segment profit of 538 million yen (up 13.1% year on year).
･Photo Wedding Service
The number of couples having wedding ceremonies and receptions has recovered in some areas, but as interest in photoweddings and other new styles of wedding ceremonies is increasing due to factors such as the accelerating of a trend of thechange in value placed on wedding ceremonies, an increase in demand from customers toward photo wedding services, leading
to an increase in demand for services with high unit prices among those provided by the Company, such as photo shooting at
multiple sites, including studio plus on-location, and photo shooting in both Japanese and Western style dresses as well as thecontribution of the new “Live Retouch” service, a retouch service that the Company launched in May 2022. As such, the average
unit price at existing studios increased by 22.0% and net sales at existing studios increased by 4.6% year-on-year. In addition,
Studio TVB Namba Parks and Studio 8 Nagoya Ekimae, which both opened during the previous fiscal year, contributed torevenue from the beginning of the current fiscal year. These and other factors have led to an increase in revenue by 235 million
yen compared to the same period in the previous fiscal year to 1,715 million yen (up 15.9% year on year).
･Anniversary Photo Service
Amidst activity restrictions and overseas travel restrictions being eased, although there was impact of the eighth wave of
COVID-19 infections, HAPISTA Esaka and HAPISTA Hirakata T-SITE, which both opened during the previous fiscal year,
contributed to revenue from the beginning of the current fiscal year. These and other factors have led to an increase in revenue
by 26 million yen to 78 million yen (up 51.9% year on year).

-2-

<Others>
For fitness gyms, the figures did not recover to the level before the pandemic due to a sense of caution against COVID-19
remaining, and revenue remained at the level of the same period in the previous fiscal year.
Segment results for the first quarter of the fiscal year ending September 30, 2023, were revenue of 22 million yen (down 3.6%
year on year).

(2) Financial Position
1) Financial Position(Assets)
Current assets at the end of the first quarter of the current fiscal year was 1,925 million yen, an increase of 202 million yen fromthe end of the previous fiscal year. This was mainly attributable to an increase of 222 million yen in cash and cash equivalents
and an increase of 16 million yen in trade and other receivables as well as a decrease of 34 million yen in inventories. Noncurrent assets was 11,123 million yen, an increase of 258 million yen from the end of the previous fiscal year. This was mainly
attributable to an increase of 210 million yen in right-of-use assets due to the conclusion of lease contract for Studio AQUA
Yokohama Ekimae, which opened in January 2023.
As a result, total assets was 13,049 million yen, an increase of 461 million yen from the end of the previous fiscal year.
(Liabilities)
Current liabilities at the end of the first quarter of the current fiscal year was 4,382 million yen, an increase of 2,538 million yen
from the end of the previous fiscal year. This was mainly attributable to an increase of 2,582 million yen in short-term borrowings
due to the transfer from long-term borrowings, as the syndicated loan concluded in December 2020 is due for repayment at theend of November 2023. Non-current liabilities was 4,064 million yen, a decrease of 2,422 million yen from the end of theprevious fiscal year. This was mainly attributable to a decrease of 2,635 million yen in long-term borrowings due to the transfer
to short-term borrowings, as the syndicated loan concluded in December 2020 is due for repayment at the end of November2023.
As a result, total liabilities was 8,446 million yen, an increase of 115 million yen from the end of the previous fiscal year.
(Equity)
Total equity at the end of the first quarter of the current fiscal year was 4,602 million yen, an increase of 345 million yen fromthe end of the previous fiscal year. This was mainly attributable to an increase of 341 million yen in retained earnings.
As a result, ratio of equity attributable to owners of parent was 35.3% (33.8% at the end of the previous fiscal year).

2) Cash Flows
Cash and cash equivalents at the end of the first quarter of the current fiscal year was 1,573 million yen, a 222 million yen
increase from the end of the previous fiscal year. Cash flows from various activities during the first quarter of the current fiscal
year and their contributing factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities increased by 143 million yen from the year-earlier period and amounted to 579 million
yen. This was mainly attributable to 509 million yen of pre-tax profit and cash increasing factors including 188 million yen of
depreciation and amortization and 40 million yen of increase in other liabilities, as well as cash decreasing factors including 202
million yen of income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 168 million yen (the previous fiscal year was use of 45 million yen). This was
mainly attributable to cash decreasing factors including 79 million yen of purchase of investments due to rent contracts, etc. for
opening of new studios including Studio AQUA Yokohama Ekimae and 88 million yen of purchase of property, machinery andequipment, and intangible assets.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 188 million yen (the previous fiscal year was use of 161 million yen). This was
mainly attributable to cash decreasing factors including 123 million yen of repayments of lease liabilities due to rent payments,
etc. for properties in rent and 62 million yen of repayment of long-term borrowings due to repayment of borrowings.
(3) Explanations on Consolidated Earnings Forecast and Other Forecast Information
With regard to consolidated earnings forecast, no change has been made to the forecast for the entire fiscal year announced on
November 4, 2022. The earnings forecast is prepared under the expectation that the impact of COVID-19 will continue for acertain period of time, but if it becomes necessary to revise the earnings forecast in light of future performance trends, therevisions will be promptly disclosed.
The earnings forecast and other forward-looking statements contained in this document are based on information currently
available to, and certain assumptions that are deemed to be reasonable by, the Company. Actual results may differ materiallyfrom the forecast due to various factors.

-3-

2. Condensed Quarterly Consolidated Financial Statement and Significant Notes Thereto(1) Condensed Quarterly Consolidated Statement of Financial Position(Thousands of yen)Previous fiscal year
(As of September 30, 2022)
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
Non-current assets
Property, machinery and equipment
Right-of-use assets
Goodwill
Intangible assets
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets-4-First quarter of current fiscal year
(As of December 31, 2022)

1,350,976
222,044
82,03068,2081,723,259

1,573,393
238,876
48,01865,701
1,925,990

938,675
3,735,754
5,635,785
18,715
470,505
60,655
4,928
10,865,020
12,588,280

905,387
3,946,066
5,635,785
16,965546,027
68,215
4,928
11,123,375
13,049,365

(Thousands of yen)Previous fiscal year
(As of September 30, 2022)
Liabilities and equity
Liabilities
Current liabilities
Borrowings
Trade and other payables
Lease liabilities
Income taxes payable
Contract liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Retained earnings
Other components of equity
Treasury shares
Total equity attributable to owners of parent
Total equity
Total liabilities and equity-5-

First quarter of current fiscal year
(As of December 31, 2022)

258,624
284,537
443,447
209,922339,276
308,299
1,844,107

2,840,886
229,789444,383
185,204
332,881349,129
4,382,274

3,126,473
3,101,078
259,3886,486,939
8,331,047

490,964
3,306,825
266,723
4,064,513
8,446,787

155,384
2,753,165
1,919,947
28,888(600,152)
4,257,232
4,257,232
12,588,280

155,384
2,753,165
2,261,343
32,837(600,152)
4,602,578
4,602,578
13,049,365

(2) Condensed Quarterly Consolidated Statement of Comprehensive Income(Cumulative)
First quarter ofprevious fiscal year
(October 1, 2021 December 31, 2021)
1,554,405
764,521789,884
314,930245
374
474,824
1,248
27,960448,112
146,870
301,242

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance expenses
Pre-tax profit
Income tax expenses
Profit(Thousands of yen)First quarter of current
fiscal year
(October 1, 2022 December 31, 2022)
1,815,561
916,151
899,409360,931849－
539,327
1,545
31,302509,570
168,174
341,396

Profit attributable to
Owners of parent
Profit301,242
301,242

341,396341,396

Other comprehensive income
Comprehensive income－
301,242－
341,396

Earnings per share
Basic earnings per share (yen)

53.13

66.97

-6-

(3) Condensed Quarterly Consolidated Statement of Changes in Equity
First quarter of previous fiscal year (October 1, 2021 - December 31, 2021)(Thousands of yen)
Equity attributable to owners of parent
Other
componentsof equity

Balance as of October 1, 2021
ProfitOther comprehensive income
Total comprehensive income
Forfeiture of share acquisitionrightsShare-based paymenttransactions
Total transactions with owners,
etc.
Balance as of December 31, 2021

CapitalsurplusRetainedearnings

155,384－－－

2,754,073－－－

901,390
301,242－
301,242

16,535
－
－
－

(68)
－
－
－

3,827,314
301,242－
301,242

3,827,314
301,242－
301,242

－

175

－

(175)

－

－

－

－

－

－

2,794

－

2,794

2,794

－

175

－

2,619

－

2,794

2,794

155,384

2,754,248

1,202,632

19,154(68)

4,131,350

4,131,350

ShareacquisitionrightsTreasuryshares

Total

Share capital

Total

First quarter of current fiscal year (October 1, 2022 - December 31, 2022)(Thousands of yen)
Equity attributable to owners of parent
Other
componentsof equity

Balance as of October 1, 2022
ProfitOther comprehensive income
Total comprehensive income
Forfeiture of share acquisitionrightsShare-based paymenttransactions
Total transactions with owners,
etc.
Balance as of December 31, 2022

Share capital

CapitalsurplusRetainedearnings

155,384－－－

2,753,165－－－

1,919,947
341,396－341,396

－

－

－

Total

TreasurysharesTotal

28,888－－－(600,152)－－－

4,257,232
341,396－341,396

4,257,232
341,396－341,396

－

－

－

－

－

－

－

3,949

－

3,949

3,949

－

－

－

3,949

－

3,949

3,949

155,384

2,753,165

2,261,343

32,837(600,152)

4,602,578

4,602,578

-7-

Share
acquisitionrights(4) Condensed Quarterly Consolidated Statement of Cash FlowsFirst quarter ofprevious fiscal year
(October 1, 2021 December 31, 2021)
Cash flows from operating activities
Pre-tax profit
Depreciation and amortization
Finance income
Finance expenses
Loss on retirement of property, machinery and equipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in contract liabilities
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, machinery and equipment, andintangible assets
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Repayments of lease liabilities
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-(Thousands of yen)First quarter ofcurrent fiscal year
(October 1, 2022 December 31, 2022)

448,112142,369(1,248)27,960373(32,749)
28,75838,91946,710(16,756)
4,229
686,680
0(13,915)(236,663)
436,102509,570
188,361(1,545)31,302－(16,392)
34,012
17,964(6,394)40,8795,417
803,175
0(21,305)(202,420)
579,450(13,755)(88,724)(31,812)(45,568)(79,522)(168,247)(59,212)(102,141)－(161,353)
229,180
1,288,296
1,517,477(62,544)(123,241)(3,000)(188,785)
222,4171,350,976
1,573,393

(5) Notes to Condensed Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)
Not applicable.
(Changes in Accounting Estimates)
Not applicable.
(Segment Information)(1) Overview of reportable segments
The Company’s reportable segments consist of the Company’s constituent units for which separate financial information
is available and which are subject to periodic examination in order for the board of directors to determine the allocationof management resources and evaluate results.
The Company has departments for each product/service and each department plans comprehensive strategies anddevelops business activities regarding the product/service it handles.
The Company consists of segments for each product/service based on departments and the studio business is thereportable segment.
The studio business provides photo wedding services, shooting and photo processing of anniversary photos andproduction of albums, etc.
(2) Information on reportable segments
Segment information during the first quarter of previous fiscal year and the first quarter of current fiscal year are as
described below.
First quarter of previous fiscal year (October 1, 2021 - December 31, 2021)(Thousands of yen)Amount recordedin condensed
quarterly
consolidated
financialstatements

Reportable segment

Studio business

Other(Note)

Total

Total

Revenue
Revenue from externalcustomers

1,531,508

1,531,508

22,897

1,554,405

1,554,405

Intersegment revenue

－

－

－

－

－

1,531,508

1,531,508

22,897

1,554,405

1,554,405

476,270

476,270(1,445)474,824

474,824

Finance income

－

－

－

－

1,248

Finance expenses

－

－

－

－

27,960Pre-tax profit

－

－

－

－

448,112

Total
Segment profit (loss)(Note) “Other” consists of business segments not included in reportable segments such as fitness.

-9-First quarter of current fiscal year (October 1, 2022 - December 31, 2022)(Thousands of yen)Amount recordedin condensed
quarterly
consolidated
financialstatements

Reportable segment

Studio business

Other(Note)

Total

Total

Revenue
Revenue from externalcustomers

1,793,499

1,793,499

22,061

1,815,561

1,815,561

Intersegment revenue

－

－

－

－

－

1,793,499

1,793,499

22,061

1,815,561

1,815,561

Segment profit

538,687

538,687

639

539,327

539,327

Finance income

－

－

－

－

1,545

Finance expenses

－

－

－

－

31,302Pre-tax profit

－

－

－

－

509,570

Total(Note) “Other” consists of business segments not included in reportable segments such as fitness.

- 10 -