UNOFFICIAL TRANSLATION
The formal official document is in Japanese

Summary of Consolidated Financial Results
for the Fiscal Year ended September 30, 2023 (Japanese Accounting Standards)
November 8, 2023
Listed Company Name: MTI Ltd.
Listing Exchanges: Tokyo Stock Exchange
Securities Code:9438
URL: https://ir.mti.co.jp/eng/
Representative:
Toshihiro Maeta, President and Chief Executive Officer
Contact:
Hiroshi Matsumoto, Senior managing Director
Phone: +81-3-5333-6323
Scheduled date of annual meeting of shareholders: December 23, 2023
Scheduled date to submit the Securities Report (Yuka Shoken Houkokusho): December 25, 2023
Scheduled date of dividend payment: December 25, 2023
Supplementary documents for financial results: Yes
Financial results briefing: Yes (for securities analysts and institutional investors (On-demand))(Figures less than one millions of yen are omitted)

1. Consolidated financial results for the year ended September 30, 2023
(October 1, 2022 – September 30, 2023)(1) Consolidated operating results(Percentages represent year-on-year changes)
Net sales

Operating income

Millions of yen

For the year ended September 30, 2023
For the year ended September 30, 2022
(Note) Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen

26,7981.2
298 (65.7)458 (5.7)
26,4792.9870 (54.9)
485 (64.5)
Year ended September 30, 2023: 778 million yen, (–%)
Year months ended September 30, 2022: (1,137) million yen, (–%)
Net income
Net income
Return on
Return on Assets
per shareper share/diluted
Equity––Net income％％

For the year ended September 30, 2023
13.73
–
5.4
1.6
For the year ended September 30, 2022
(16.99)–(5.9)
1.6(Reference) Equity in earnings (losses) of affiliates: Year ended September 30 2023: 102 millions of yen
Year ended September 30 2022: (457) millions of yen

1.1
3.3

Yen

％

%

753
(930)

Yen

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Year ended September 30, 2023
Year ended September 30, 2022
(Reference) Shareholders’ equity:

Equity ratio

Millions of yen

29,155
17,58329,265
17,877
Year ended September 30, 2023: 13,953 millions of yen
Year ended September 30, 2022: 14,065 millions of yen

Net assets per share
%

Yen

47.9
48.1

254.36
256.61(3) Consolidated cash flows
Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash provided by(used in) financing
activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

4,764(1,393)(1,349)(2,460)(1,784)343

13,72012,097For the year ended September 30, 2023
For the year ended September 30, 2022

Cash and cash
equivalent

2. Dividends
Dividend per share
End offirstquarter

For the year ended September 30, 2022
For the year ended September 30, 2023
For the year ending September 30, 2024
(forecast)End ofsecondperiodEnd ofthird
quarter

Yen

Yen

Yen

Yen

Yen

–
–

8.00
8.00

–
–

8.00
8.00

16.00
16.00

–

8.00

–

8.00

16.00

Year end

AnnualAmount ofDividends on
Dividend ratio
dividends paid
equity(Consolidated)(Total)(Consolidated)

880
880

%

%

–
116.5

5.6
6.3

–

3. Forecast for consolidated financial results for the fiscal year ending September 30, 2024
(October 1, 2023 – September 30, 2024)
Net sales
For the first half
Full year(Percentages represent year-on-year changes)
Profit attributable to
Net income
Ordinary income
owners of parent
per share

Operating income

Millions of yen%

Millions of yen%

13,00027,000

(4.5)
+0.8

200
1,000

–
+235.1Millions ofyen%Millions of yen

%

Yen

200
+6.9
1,000 +118.1

50
400

–
(46.9)

0.91
7.32* Notes(1) Important changes of subsidiaries during the term (changes in specified subsidiaries resulting in change in scope of
consolidation): Not applicable
New: –
Exception: –(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies due to the modification in accounting methods:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:

Not applicableNot applicableNot applicableNot applicable(3) Number of outstanding shares (common shares)(i) Number of outstanding shares at the end of period (including treasury shares):9/23: 61,264,600 shares
9/22: 61,263,000 shares(ii) Number of treasury shares at the end of period
9/23: 6,405,973 shares
9/22: 6,450,273 shares(iii) Average number of shares during the period
9/23: 54,839,609 shares
9/22: 54,781,561 shares(Reference) Summary of financial results
1. Nonconsolidated financial results for the year ended September 30, 2023
(From October 1, 2022 - September 30, 2023)(Percentages are shown as year-on-year changes)(1) Nonconsolidated operating results
Net sales
For the year ended
September 30, 2023
For the year ended
September 30, 2022

Operating income

Ordinary income

Net income

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

20,763

(3.2)

1,477

(48.7)

761(40.9)

2,404–

21,445

3.6

2,879

18.0

1,289

(43.6)(3,524)–

Net income pershare
For the year ended
September 30, 2023
For the year ended
September 30, 2022

Fully diluted net
income per share
Yen

Yen

43.69

–

(64.10)–(2) Nonconsolidated financial position
Total assets
Millions of yen

For the year ended
26,817
September 30, 2023
For the year ended
25,048September 30, 2022
(Reference) Shareholders’ equity
As of September 30, 2023: 16,490 millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen％

Yen

16,54961.5

299.51

15,04359.6

271.45

As of September 30, 2022: 14,932 millions of yen* Status of review
Financial results is out of audit.
* Cautionary statement with respect to forward-looking statements
The forward-looking statements included in this material are based on the Company’s judgments, assumptions, and convictions basedon information available to the Company at the time of publication of this document and may differ materially from actual results for arange of factors, including conditions of Japanese and overseas economies, changes in the situation of operations in Japan and overseas,
and uncertainties and potential risks inherent in forward-looking statements. The risks and uncertainties include unforeseeable effects offuture events. For the assumptions underlying the forecasts and other notice on the use of earnings forecasts, please refer to “(4) Future
outlook” on page 4 in the accompanying material.
While the Company planned to hold an online briefing on earnings chiefly for securities analysts and institutional investors on Thursday,
November 9, 2023, for original Japanese.

Accompanying materials – Contents
1.

Overview of operating results.....……………….…………………………..……………….

2(1)

Overview of operating results for the current fiscal year…………………….……….

2(2)

Overview of financial position for the current fiscal year…………………………..…

3(3)

Overview of cash flow for the current fiscal year….…………………………..………

3(4)

Future outlook………………………………………………………………………...

4

2.

Basic policy for the selection of accounting standard…………….…………………………

4

3.

Consolidated financial statements and important notes………….…………………………

5(1)

Consolidated balance sheet…………………………………………………………...

5(2)

Consolidated statement of income and comprehensive income……………………...

7(3)

Consolidated statement of changes in shareholders’ equity………………………….

9(4)

Consolidated statement of cash flows………………………………………………...

11

1

1. Overview of operating results(1) Overview of operating results for the current fiscal year
The Group is actively engaged in the healthcare business and the school DX business, both of which are expected
to expand in the future, in order to enhance its corporate value over the medium to long term.
During the current fiscal year under review, consolidated net sales stood at ¥26,798 million (up 1.2% year onyear) and gross profit at ¥18,373 million (down 1.7 % year on year), attributable to an increase in cost of sales.
Operating income stood at ¥298 million (down 65.7 % year on year)) due to an increase in selling, general andadministrative expenses due chiefly to a rise in advertising expenses.
Ordinary income stood at ¥458 million (down 5.7% year on year) chiefly due to a share of profit of entities
accounted for using equity method of ¥102 million (compared to a share of loss of entities accounted for using
equity method of ¥457 million in the previous year).
Profit attributable to owners of parent amounted to ¥753 million (a loss of ¥930 million in the previous fiscal
year) as a result of a significant increase in extraordinary income due to consumption taxes refund and gain onchange in equity and a substantial decrease in extraordinary losses compared from the previous fiscal year.
Consolidated operating results(Period from October 1, 2022 to September 30, 2023)
Fiscal year ended
September 30, 2023

Fiscal year ended
September 30, 2022

ChangeAmountPercentage

Millions of yen

Millions of yen

Millions of yen%

26,79826,479

+319

+1.2

8,425

7,787

+638

+8.2

Gross profit

18,373

18,691

(318)

(1.7)

SG&A

18,074

17,820+253+1.4Operating income

298

870

(572)

(65.7)

Ordinary income
Profit attributable to
Owners of parent

458

485

(27)

(5.7)

753

(930)

+1,683-

Net sales
Cost of sales

Breakdown of SG&A
(Period from October 1, 2022 to September 30, 2023)
Fiscal year ended
September 30, 2023

Fiscal year ended
September 30, 2022

ChangeAmountPercentage

Millions of yen

Millions of yen

Millions of yen%

18,074

17,820+253+1.4

Advertising expenses

2,136

1,580

+555

+35.2

Personnel expenses

7,714

7,718

(4)

(0.1)

Commission fee

2,954

3,094

(139)

(4.5)

Subcontract expenses

1,965

2,136

(171)

(8.0)

Depreciation

1,265

1,352

(86)

(6.4)

Other

2,038

1,937

+100

+5.2

Total

Operating results by segment are as follows.
Effective from the first quarter of the consolidated fiscal year under review, the classification of reportable segments
has been revised. Comparison and analysis for the current fiscal year under review are based on the new segments.
① Content business
The content business includes B2C monthly billing services (excluding the “Luna-Luna” healthcare service forwomen and the “CARADA medica” health Q&A service in cooperation with healthcare professionals) and theB2B original comic distribution business that offers original comic content to comic distributors.
This segment served 3.13 million of paying subscribers. The figure was 70 thousand smaller than at the endof September 2022. The number of paying subscribers was nearly level, reflecting an increase in the number of2

paying subscribers to the “AdGuard” security-related app.
Net sales totaled ¥18,108 million (down 2.2% year on year) due to a year-on-year decrease in the number ofpaying subscribers, which more than offset the video sales at Video Market Corporation, a consolidated
subsidiary of the Company.
Operating income was ¥5,224 million (down 15.7% year-on-year) due to an increase in SG&A expenses
resulting from a rise in advertising expenses to promote “AdGuard” membership.
② Healthcare business
The healthcare business includes B2C monthly billing services under the “Luna-Luna” and “CARADA medica”
brands and B2B and B2B2C healthcare services for medical institutions and local governments, such as thecloud drug record service, the maternal health record book app and the childcare DX service.
This segment served 550 thousand of paying subscribers. The figure was 40 thousand smaller than at the endof September 2022. On the other hand, the number of pharmacies that offer the cloud drug record service came
to 1,793 at the end of September 2023 (up 529 from the end of September 2022), as the result of great efforts
focused on increasing the number of pharmacies whose motivation to introduce such service is growing.
Net sales came to ¥4,616 million (up 14.6% year on year), given expanded sales of Cloud drug record service
and Childcare DX service, etc. The operating loss reduced to ¥224 million (loss of ¥1,108 million in the previous
fiscal year) due to the effect of increased sales and implemented cost containment measures.
③ School DX business
The school DX business includes school DX business developed for educational institutions by the consolidated
subsidiary Motivation Works Inc.
Net sales amounted to ¥852 million (up 100.0% year on year) due to an increase in monthly usage fees fromeducational institutions that have introduced the “BLEND” cloud-based school business support system.
“BLEND” has been used by 566 educational institutions since April 2023 (226 institutions more than a yearago). Operating loss was ¥668 million (loss of ¥841 million in the previous fiscal year) as a result of a decreasein deficit due to a significant increase in sales.
④ Other business
Other business includes the B2B AI business operated by Automagi Inc., a consolidated subsidiary, and theCompany’s DX support business for large companies and solution business.
Sales decreased to ¥4,822 million (down 0.5% year on year) due to a fall in orders for the AI business, morethan offsetting an increase in orders for corporate DX support business. The operating loss was ¥1,398 million(loss of ¥826 million in the previous year), primarily reflecting an increase in the cost of sales as a result of
responses to projects in deficit in the corporate DX support business in addition to decreased sales in the AI
business.

(2) Overview of financial position for the current fiscal year
As of the end of the fiscal year under review, total assets decreased ¥110 million from the end of September
2022, to ¥29,155 million.
Current assets increased ¥161 million mainly due to an increase in cash and deposits despite a decrease in
consumption taxes refund receivable. Non-current assets declined ¥272 million chiefly due to a decrease ingoodwill and customer-related assets, which more than offset an increase in investment securities.
Current liabilities increased ¥944 million, mainly reflecting rises in income taxes payable and contract
liabilities. Non-current liabilities fell ¥760 million chiefly due to a decline in long-term borrowings.
Net assets decreased ¥293 million chiefly due dividend payments, despite a profit attributable to owners ofparent of ¥753 million.
(3) Overview of cash flow position for the current fiscal year
As of the end of the fiscal year under review, cash and cash equivalents amounted to ¥13,720 million, an increaseof ¥1,623 million from September 30, 2022. Cash flow by activity and principal factors in the fiscal year underreview were as follows.
Net cash provided by operating activities stood at ¥4,764 million (net cash used of ¥1,393 million in theprevious fiscal year), reflecting primarily profit before income taxes posted and reception of depreciation andconsumption taxes refund receivable.
Net cash used in investing activities stood at ¥1,349 million (outflow of ¥2,460 million in the previous fiscal
year). Principal factors included the acquisition of intangible assets (mainly purchase of software).
Net cash used in financing activities amounted to ¥1,784 million (net cash provided of ¥343 million in theprevious fiscal year), which was attributable principally to repayment of long-term borrowings and dividends
paid.
3(4) Future outlook
The Company will work hard to expand sales and turn a profit in the healthcare business, which is expected to bea driving force for future performance growth. In the content business, it will make every effort to increase thenumber of paying subscribers by expanding sales of the “AdGuard” security-related app and striving to bolster theoriginal comic distribution business.
Also, the Group will focus on expanding the school DX business that Motivation Works Inc., a subsidiary of theCompany, is actively working to develop. Given the large number of business inquiries related to “BLEND”, thecloud-based school affairs support system provided by Motivation Works, the Group is earnestly working toincrease the number of schools that will introduce this system beginning in April 2024.
The Company takes medium- and long-term perspectives in its engagement in the healthcare business, which hasstrong potential for future growth and compared with B2C transactions, may move toward a more stable stock-typebusiness through the establishment of long-term business relationships with customers. Therefore, the Company iscommitted to implementing a variety of measures to achieve sales growth.
The cloud drug record service is particularly in high demand in dispensing pharmacies and we will increase thenumber of introducing stores through enhancing cooperation with Medipal Holdings, our business partner. This isbecause it can contribute to the sustained growth of sales in the healthcare business.
It will also enhance childcare-related services with a focus on local governments that have introduced the“Boshimo”, a maternal health record book app, and will advance digital cooperation among local governments,
hospitals, and residents, thereby advancing its “Boshimo” childcare DX platform strategy to enable the healthcare
business to make a contribution to profit in the medium term.
[Assumptions for forecast values]
The impact of undetermined new businesses and low-probability mergers and acquisitions in the Group are nottaken into account and are not incorporated in the forecast figures. The Company will promptly disclose any
deviation between forecasts and results that should be disclosed.
Earnings forecast for the six months of the fiscal year ending September 30, 2024
(Period from October 1, 2023 to March 30, 2024)
Consolidated(Millions of yen)

YoY(%)Net sales

13,000(4.5)

Operating profit

200(loss of ¥18 million in theprevious fiscal year)

Ordinary profit

200

+6.9

50

(loss of ¥326 million in theprevious fiscal year)

Profit attributable toowners of parent

Earnings forecast for the fiscal year ending September 30, 2024
(Period from October 1, 2023 to September 30, 2024)
Consolidated(Millions of yen)

YoY(%)Net sales

27,000+0.8

Operating profit

1,000+235.1

Ordinary profit

1,000+118.1

Profit attributable toowners of parent

400(46.9)

2. Basic policy for the selection of accounting standards
The Group intends to compile its consolidated financial statements based on the Japanese accounting standard
for the time being, considering the possibility of comparing the terms of financial statements and performances
between companies.
It will adopt the International Financial Reporting Standards (IFRS), factoring in the situations in Japan andabroad.

4

3．Consolidated financial statements and important notes(1) Consolidated balance sheet（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsAdvance payments-trade
Prepaid expenses
Accounts receivable-other
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Facilities attached to buildings
Accumulated depreciation
Facilities attached to buildings, net
VehiclesAccumulated depreciation
Vehicles, net

Current fiscal year
(As of September 30, 2023)

12,097,658

13,720,915

4,294,825

4,197,136

230,049434,784
71,031
485,089
1,199,240(34,097)

214,194414,268
131,853
10,630285,346(33,941)

18,778,582

18,940,404

308,888(242,130)

328,982(243,495)

66,75885,487

277
(277)

478
(333)

0

144

601,076(474,773)

625,599(497,520)

Tools, furniture and fixtures, net

126,302

128,079

Total property, plant and equipment

Tools, furniture, and fixtures
Accumulated depreciation

193,060

213,711

Intangible assets
Software
Goodwill
Customer-related assets
Other

2,058,982
655,709912,600
163,473

1,894,135
240,012491,400
230,614

Total intangible assets

3,790,765

2,856,162

3,675,499
337,475
2,394,793
106,411(10,904)

4,081,380
305,268
2,658,854
110,361(10,704)

Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

56,503,275

7,145,160

10,487,102

10,215,035

29,265,684

29,155,439

（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2022)

Current fiscal year
(As of September 30, 2023)

1,068,638
751,780
1,221,218
501,487
19,23623,1612,356,643
30,609413,577

1,023,077
747,600
1,279,759
502,655
637,619
316,185
2,567,914
28,862
227,086

Total current liabilities

6,386,353

7,330,762

Non-current liabilities
Long-term loans payable
Net defined benefit liability
Other

3,178,010
1,816,159
7,432

2,431,250
1,786,153
23,449Liabilities
Current liabilities
Accounts payable-trade
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Provision for directors’ bonuses
Other

5,001,601

4,240,853

Total liabilities

Total non-current liabilities

11,387,955

11,571,615

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

5,218,512
6,768,841
5,224,287(3,257,237)

5,232,677
6,485,816
5,143,458(3,230,813)

13,954,404

13,631,139

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

75,55489,490(53,931)

165,132
97,84859,594

Total accumulated other comprehensive income

111,114322,575

Subscription rights to shares
Non-controlling interests

110,774
3,701,436

59,1473,570,962

Total net assets

17,877,729

17,583,824

29,265,684

29,155,439

Total shareholders’ equity

Total liabilities and net assets

6

(2) Consolidated statement of income and consolidated comprehensive income
Consolidated statement of income
Previous fiscal year
(from October 1, 2021
to September 30, 2022)
26,479,310
7,787,727
18,691,583（Unit: thousands of yen）
Current fiscal year
(from October 1, 2022
to September 30, 2023)
26,798,991
8,425,737
18,373,254

17,820,953

18,074,827

Operating income

870,629

298,426

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Compensation income
Other

135
7,012
102,308－503
37,819104
3,961
38,170102,204
34,75929,395

147,777

208,596

5,491
457,088
17,0189,231
43,621

11,489Net sales
Cost of sales
Gross profits
Selling, general and administrative expenses

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Consumption tax difference
Commission expenses
Other
Total non-operating expenses－
22,562
7,903
6,615

532,451

48,571

Ordinary income

485,955

458,451

Extraordinary income
Gain on sale of non-current assets
Gain on sales of investment securities
Gain on sale of shares of subsidiaries and associates
Gain on change in equity
Gain on reversal of share acquisition rights
Consumption taxes refund－－
12,41776,48154,027－501
1419,904
237,588
51,424873,339

142,925

1,182,773

119
27,816
897,949
3,240－
25,691
347,842
13,45055,689Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on step acquisitions

－
4,700

Total extraordinary losses

933,826－
442,673

Profit (loss) before income taxes(304,944)

1,198,550

Income taxes - current
Income taxes-deferred

718,258
40,756

947,796(316,777)

Total income taxes

759,015

631,019(1,063,960)

567,530

Profit (loss) attributable to non-controlling interests(133,485)(185,689)

Profit (loss) attributable to owners of parent(930,474)

753,220

Profit (loss)

7

Consolidated statement of comprehensive income
Previous fiscal year
(from October 1, 2021
to September 30, 2022)(1,063,960)（Unit: thousands of yen）
Current fiscal year
(from October 1, 2022
to September 30, 2023)
567,530(89,830)
82,773(67,810)

5,191
4,520
113,525

1,597

88,224(73,270)

211,461

Comprehensive income(1,137,230)

778,992(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests(1,004,354)

964,681(132,876)(185,689)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income8(3) Consolidated statement of changes in equity
Previous fiscal year (from October 1, 2021 to September 30, 2022)(Unit: thousands of yen)
Shareholders’ equity

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Capital stock

Capital surplus

5,197,909

6,660,831

Retainedearnings

Treasury stock

Total
shareholders’equity(3,281,839)

17,241,947

8,665,046(1,630,684)

5,197,909

6,660,831

20,603

20,603

7,034,361(1,630,684)(3,281,839)

15,611,263

Changes during period
Issuance of new shares exercise ofsubscription rights to shares
Dividends of surplus
Profit (loss) attributable to ownersof parent
Increase (decrease) consolidated
subsidiaries

41,207(879,599)(879,599)(930,474)(930,474)

112,008

112,008

Change in scope of equity method－

Increase (decrease) in retained
earnings from exclusion ofsubsidiaries from consolidation－

Cancellation of treasury shares(24,601)

24,601－

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

20,603108,010(1,810,074)

24,601(1,656,858)

5,218,512

6,768,841

5,224,287(3,257,237)

13,954,404

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

165,205

5,908

Subscription
rights toshares

Noncontrollinginterests

Total net
assets161,887

3,654,545

21,243,375

Total otherRemeasurements
accumulatedof definedcomprehensive
benefit plansincome13,879184,993(1,630,684)
165,205

5,908

13,879184,993

161,887

3,654,545

19,612,690

Changes during period
Issuance of new shares exercise ofsubscription rights to shares

41,207

Dividends of surplus(879,599)

Profit (loss) attributable to ownersof parent
Increase (decrease) consolidated
subsidiaries(930,474)
112,008

Change in scope of equity method－

Increase (decrease) in retained
earnings from exclusion ofsubsidiaries from consolidation－

Cancellation of treasury shares－

Net changes of items other thanshareholders’ equity(89,650)

83,582(67,810)(73,879)(51,113)46,890(78,102)

Total changes of items during period(89,650)

83,582(67,810)(73,879)(51,113)46,890(1,734,960)

Balance at end of current period

75,55489,490(53,931)

111,114110,774

3,701,436

17,877,729

9

Current fiscal year (from October 1, 2022 to September 30, 2023)(Unit: thousands of yen)
Shareholders’ equity

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Capital stock

Capital surplus

5,218,512

6,768,841

Retainedearnings

Treasury stock

Total
shareholders’equity(3,257,237)

13,954,404

5,224,287－
5,218,512

6,768,841

14,164

14,1645,224,287(3,257,237)

13,954,404

Changes during period
Issuance of new shares exercise ofsubscription rights to shares
Dividends of surplus
Profit (loss) attributable to ownersof parent
Increase (decrease) consolidated
subsidiaries

28,328(880,593)(880,593)

753,220753,220(270,765)(270,765)

Change in scope of equity method

43,09243,092

Increase (decrease) in retained
earnings from exclusion ofsubsidiaries from consolidation

3,452

3,452

Cancellation of treasury shares(26,424)

26,424－

Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

14,164(283,024)(80,828)

26,424(323,265)

5,232,677

6,485,816

5,143,458(3,230,813)

13,631,139

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

75,55489,490

Subscription
rights toshares

Noncontrollinginterests

Total net
assets110,774

3,701,436

17,877,729

Total otherRemeasurements
accumulatedof definedcomprehensive
benefit plansincome(53,931)

111,114－75,55489,490(53,931)

111,114110,774

3,701,436

17,877,729

Changes during period
Issuance of new shares exercise ofsubscription rights to shares

28,328Dividends of surplus(880,593)

Profit (loss) attributable to ownersof parent
Increase (decrease) consolidated
subsidiaries

753,220(270,765)

Change in scope of equity method

43,092

Increase (decrease) in retained
earnings from exclusion ofsubsidiaries from consolidation

3,452

Cancellation of treasury shares－

Net changes of items other thanshareholders’ equity

89,578

8,357

113,525

211,461(51,627)(130,473)

29,360Total changes of items during period

89,578

8,357

113,525

211,461(51,627)(130,473)(293,905)

Balance at end of current period

165,132

97,84859,594

322,575

59,1473,570,962

17,583,824

10

（4）Consolidated statement of cash flows
Previous fiscal year
(from October 1, 2021
to September 30, 2022)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on step acquisitions
Loss (gain) on change in equity
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sale of shares of subsidiaries and associates
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables
Decrease (increase) in advance payments to suppliers
Decrease (increase) in prepaid expenses
Decrease (increase) in accounts receivable-other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase/decreasein
consumption
taxes
payable/consumption taxes refund receivable
Other, net（Unit: thousands of yen）
Current fiscal year
(from October 1, 2022
to September 30, 2023)(304,944)
1,493,718
897,949
247,076923
149,703(7,147)
5,491

1,198,550
1,428,537
347,842
272,543
119
129,734(4,066)
11,489457,088(102,204)4,700(76,481)
11927,816(9,176)－－(54,027)
362,410
51,601
14,917
23,740(117,663)(13,164)(3,260)－(237,588)(501)
25,691
13,43555,689(19,904)(51,424)
91,252
15,22019,727(66,940)(44,348)
86,3701,168(1,307,102)

1,147,598(79,780)

436,084

Subtotal

1,764,509

4,754,078

Interest and dividends received
Interest paid
Income taxes refund (paid)

6,089(5,491)(3,158,660)

4,066(11,489)
17,611

Net cash provided by (used in) operating activities(1,393,553)

4,764,266

11

（Unit: thousands of yen）
Current fiscal year
(from October 1, 2022
to September 30, 2023)

Previous fiscal year
(from October 1, 2021
to September 30, 2022)
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Proceeds from sale of investment securities
Payments for transfer of business
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from share issuance to non-controllingshareholders
Repayments to non-controlling shareholders
Cash dividends paid

(84,236)－(2,114,326)－
16,196(237,515)(100,132)281(1,062,869)
220
1,519
－

(29,000)－

14,014－－(226,507)(25,732)

38,049(2,460,600)(1,349,438)

204
(204)
1,500,000(476,435)
39,87490,000(53,016)－(750,940)
28,125

285,000－－(879,599)(2,940)(880,593)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury shares of subsidiaries－(2,940)(85,400)(212,500)(39,900)

Net cash provided by (used in) financing activities

343,539－(1,784,804)

Effect of exchange rate change on cash and cash equivalents

68,187

4,666

Net increase (decrease) in cash and cash equivalents(3,442,426)

1,634,689

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Cash and cash equivalents at end of period

15,540,084

12,097,658－(11,431)

12,097,658

13,720,915

12