H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

Consolidated Financial Statementsof the Fiscal Year Ended March 31, 2022
(Japanese accounting standards)
May 12, 2022

Corporate Name : H2O Retailing Corporation
Securities Code : 8242 (Tokyo Stock Exchange)
URL : http://www.h2o-retailing.co.jp/
Representative : Naoya Araki, President and Representative Director
Contact : Gaku Watanabe, Managing Executive Officer
TEL : +81-6-6365-8120
Scheduled date of shareholders' meeting : June 22, 2022
Scheduled date of filing of the financial report : June 22, 2022
Scheduled date of dividend payment : June 1, 2022
Preparation of supplementary materials : Yes
Briefing session on financial results : Yes (for institutional investors and analysts）(Figures are rounded down to the nearest million yen.)

1. Consolidated Business Results of the Fiscal Year ended March 31, 2022
（From April 1, 2021 to March 31, 2022）（1）Consolidated operating results (Cumulative total)(Percentages indicate year-on-year changes.)

Net Sales

Operating Profit

Millions of yen%

Millions of yen

518,447
739,198—(17.6)

740(4,438)FY2022
FY2021

Profit attributableto owners of parent

Ordinary Profit%

Millions of yen%

Millions of yen

2,346
—
—
(2,907)——9,235 million yen, -% , FY2021 (11,005) million yen, -%Note : Comprehensive income FY2022

%

—
—

9,872
(24,791)

Note : The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020)and other standards from the beginning of the first quarter of the current fiscal year. The percentage change from thesame period of the previous fiscal year in net sales is not shown due to the significant impact on net sales.

Net Income
per Share

Net Income per
Share(Diluted)

Yen

Yen

Ratio of Operating
Income to Net Sales

Ratio of Ordinary
Income to Total Assets

Return on Equity%%

FY2022
79.84
79.26
4.2
0.4
FY2021(200.45)—(10.5)(0.5)
Reference : Equity in earnings of affiliates FY2022 △901 million yen , FY2021 △561 million yen

%

0.1
(0.6)

（2）Consolidated financial position
Total Assets

Net Assets

Millions of yen

Owner's Equity Ratio

Millions of yen

FY2022654,558
260,938
FY2021
625,945
229,277
Reference : Owner's equity FY2022 236,844 million yen , FY2021 228,134 million yen

Net Assets per Share

%

Yen

36.2
36.4

1,922.25
1,843.78（3）Consolidated cash flows
Cash flows fromoperating activities

Cash flows from investing
activities

Millions of yen

Millions of yen

7,007
12,755(5,745)(20,761)

FY2022
FY2021

Cash flows fromfinancing activities

Cash and cash equivalents
at end of year
Millions of yen
Millions of yen(28,578)
31,85933,17449,991

2. Dividends
First
QuarterYen

FY2021
FY2022
FY2023(Forecast)

Annual Dividends
Third
Fiscal YearQuarter
End

SecondQuarter

—
—
—

Yen

12.50
12.50
12.50

Yen

—
—
—

Total Dividends
Payment(Annual)

Total

Yen

Yen

Millions of yen

12.50
12.50
12.50

25.00
25.00
25.00

3,092
3,086

Ratio of Dividends
to Net Assets(Consolidated)

Payout Ratio(Consolidated)

％

％

—

1.3
1.3

31.3
38.5

3. Forecast of Consolidated Business Results for the Fiscal Year ending March 31, 2023
（Percentages indicate year-on-year changes.）（From April 1, 2022 to March 31, 2023）
Net Sales
Millions of yen

Half Year
Full Year

Operating Profit％

320,000 35.0
660,000 27.3

Millions of yen％(1,000) —8,000 980.1

Millions of yen

Net Income
per Share

Profit attributableto owners of parent

Ordinary Income％(1,500) —7,000 198.3

Millions of yen％

0—8,000 (19.0)

Yen

—
64.93

Note : The Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) andother standards from the beginning of the first quarter of the current fiscal year.
Consolidated gross sales, which is equivalent to net sales up to the previous fiscal year excluding the effects of changes inaccounting policies, amounted to ¥474,000 million (up to 37.8% year on year) for the half year and ¥1,000,000 million(up 26.9% year on year) for the full year.
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

Notes
(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in scope of consolidation) : Yes
Inclusion : Kansai Food Market Ltd.
Exclusion : H2O Asset Management Co., Ltd.
(2) Changes in accounting policies, changes in accounting estimates or restatements(a) Changes in accounting policies due to changes in consolidated accounting standards : Yes(b) Changes other than (a) :No(c) Changes in accounting estimates : No(d) Restatements due to correction : No
(3) Number of shares issued and outstanding (common stock)(a) Number of shares issued at the end of the period (including treasury stock)
FY2022
125,201,396 shares
FY2021
125,201,396 shares(b) Number of shares of treasury stock at the end of the period
FY2022
1,989,253 shares
FY2021
1,469,808 shares(c) Average number of shares during the period
FY2022
123,651,665 shares
FY2021
123,680,359 shares
Note : These consolidated financial results are outside the scope of audit by certified public accountants or auditing firms.
Note : Explanation regarding approriate use of forecast
The above-mentioned forecast is based on the information available to the company at present,
and including a potential risk and uncertainty. Actual achievements may differ from these forecasts due to many factors.

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

1.Consolidated Financial Results
From the beginning of the first quarter of the current fiscal year, Hankyu Kitchen Yell Kansai, Inc.,
EveryD.com, Inc. and Hankyu Sennan Green Farm, which were previously included in the Other
Business segment, were transferred to the Supermarket Business segment, and Oi Development Co.,
Ltd, which was also included in Other business segment, was transferred to the Shopping Center
Business segment. YoY comparisons are shown based on the results for the previous year, whichhave been reclassified into the new reporting segments.
Following the business integration through a share exchange with Kansai Super Market Ltd. , Kansai
Super Market Ltd., Kansai Super Premium Co., Ltd. and KS Company Split Preparation Co.,Ltd.
were included in the Supermarket Business segment, and conslidated results included the results of
4Q of above three companies.
▶SalesThe Company has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29,
March 31, 2020) and other standards from the beginning of the first quarter of the current fiscal year.
Consolidated net sales of FY2022 was ¥518,447 million.
Consolidated gross sales, which is equivalent to net sales up to the previous fiscal year excluding theeffects of changes in accounting policies, amounted to ¥788,108 million.
Sales on a real basis increased by 6.6% from the previous fiscal year, despite the closure of stores
due to the declaration of the state of emergency and restrict of operations occurred as in the previous
fiscal year.
▶Operating Profit and Ordinary Profit
Despite the impact of the COVID-19, sales recovered from the previous fiscal year, operating profit
was ¥740 million (operating loss of ¥4,438 million in the previous fiscal year ).
Ordinary profit was ¥2,346 million (ordinary loss of ¥2,907 million in the previous fiscal year).

(Department store business)
In late April 2021, a state of emergency was declared. Some stores were completely closed, andstores including both Hankyu and Hanshin main stores shifted to operating only in the daily
necessities section (43 days at 4 stores in Osaka Prefecture, including both Hankyu and Hanshin
main stores and 29 days at 6 stores in Hyogo Prefecture).
In August, a state of emergency declared again as the infection had spread. Some stores wererefrained from holding events and restricted entry to the food floor.
From October, demand for fashion and gift items became active as opportunities to go out and tomeet people increased. However, COVID-19 affected throughout the fiscal year, like in January2022, with a decrease in store visits, especially among seniors and families, due to the infection
spread that occurred again.
Hanshin Umeda Main Store, which had been constructed, pre-opened on October 8, 2021 and fullopened from the first floor to the ninth floor on December 8 (fully opened including basement foodfloor on April 6, 2022).New Hanshin Umeda Main Store has strengthened its proposals for all scenesof eating and food floor expanded from three to four floors.Customer response to the new value ofthe experience was high, resulting in a wide range of customers visiting the store.
As results of above, gross sales was ¥385,095 million, increased by 10.7% YOY and operating profit
was ¥939 million (operating loss of ¥1,903 million in the previous year).
Hankyu Hanshin Department Store recorded an extraordinary loss of ¥3,819 million, including
personnel expenses, rent and depreciation expenses during the period of closure.

1

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

(Supermarket business)
Gross sales was ¥327,205 million, increased by 11.8% YOY and operating profit was ¥5,326
million, increased by 30.3% YOY.
Izumiya Co., Ltd. increased sales due to the transfer of the Super Center food division and decreased
in profit due to the decrease in sales at existing stores (sales at existing stores decreased by 2.7%
YOY) in reaction to the previous year's demand for eating at home and increase of cost.

Izumiya celebrated its 100th anniversary by selling commemorative products and holding events incollaboration with the local community on the terms of "thankfulness" and "relationship". Super
Center stores, including Yao and Yawata stores, had renovation of transforming to Shopping Centermodel and sales were affected during the renovation construction period. On the other hand, due tothe impact of re-emergence of COVID-19 infection, stores in small commercial areas were good.
Selling,general and administrative expenses increased due to an increase in cashless payment ratio.
Hankyu Oasis Co., Ltd. decreased in sales and increased operating profit by improvement of grossmargin. Hankyu Oasis Co., Ltd. worked to strengthen its ability to respond to the market with a basic
policy of transforming itself into a highly profitable company.Existing stores sales decreased by 0.5%
YOY (number of customers decreased by 0.1% and average spend per customer decreased by 0.5%
YOY). Although the number of customers was on par with the previous year, average spend per
customer was slightly lower than the previous year due to a decrease in the number of items
purchased per visit.
Sannomiya store in April 2021 and Oyodo Minami store in March 2022 newly opened and 4 stores
were renovated to change the MD to meet the changing in commercial areas and to introduce sweets
sold in department stores. Selling,general and administrative expenses decreased from the previous
year due to the efforts to restrain the purchase price of consumable supplies.

For Kansai Super Market Business (Note2), sales for the fourth quarter (January to March, 2022) was¥31,042 million and operating profit was ¥1,391 million. Kansai Super Market Business worked torealize a "total solution supermarket" that solves problems through environmental initiatives andsocial contributions with customers, employees, and contribution to society. Existing stores sales ofwhole fiscal year increased by 0.1% YOY (number of customers increased by 1.5% and averagespend per customer decreased by 1.3% YOY). The background behind the YOY increase in existingsales was strong sales at stores remodeled to the "Central Store model," which introduces the productlineup of the flagship Central Store, although the push from the rising demand for domestic food in
the COVID-19 pandemic in the previous fiscal year has run its course. Takaishi Eki-mae store,
Saidera store and Konoike store were renovated in the fiscal year.Selling,general and administrative
expenses decreased from the previous year due to controlling the expenses of consumable supplies,
advertising and repairs, despite recognition of expenses related to business integration procedures.
Food manufacturing subsidiaries increased their profit due to higher demand for delicatessen andbakery products at food supermarkets as wholesale customers.
(Shopping Center business)
Gross sales was ¥42,879 million, decleased by 34.1% YOY and operating profit was ¥391 million(operating loss of ¥757 million in the previous year).
In H2O Shopping Center Development Co., Ltd., which operates management of tenants and sales ofapparel and home products at Izumiya stores, gross sales decreased significantly due to closure of
direct operation area and operating profit increased because of cost reduction and conversion totenant business.
Oi Development Co., Ltd, which operates the business hotel, increased in income and profit due toimprovement of occupancy rate and reduction of cost compared to the previous year.

2

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

(Other business)
Gross sales was ¥32,928 million, decreased by 2.1% YOY and operating loss was ¥3,409 million(operating loss of ¥1,516 million in the previous year).
Operating profits of other business subsidiaries, excluding the Company as the holding company,
increased by ¥1,477 million from the previous year,because sales increased at a specialty retail store
subsidiary, mainly due to a reduction in the number and duration of closed stores from the previous
year. Operating profit decreased at the Company, the holding company, mainly due to a decrease individends received from subsidiaries.

3

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022
▶Profit attributable to owners of parent
The company recorded extraordinary income of ¥27,032 million including gain on sales of noncurrent assets of ¥13,632 million, gain on sales of investment securities of ¥6,485 million, and gain
on bargain purchase of ¥3,427 million as extraordinary income following the business integration
with Kansai Super Market Ltd. (Note1), extraordinary losses of ¥13,792 million including loss related
to COVID-19 of ¥4,253 million and loss on closing of stores and others of ¥2,530 million.
As a result, profit attributable to owners of parent was ¥9,872 million (loss of ¥24,791 million in theprevious year).
Note1 : Kansai Super Market Ltd. changed its name to Kansai Food Market Ltd. and KS Company
Split Preparation Co., Ltd. changed its name to Kansai Super Market Ltd. on 1 February,2022.
Note2 : Consolidated results of following three companies shown below are reclassfied on the basis
before the application of "Accounting Standards for Revenue Recognition".
Kansai Super Market Ltd. (from 1 April, 2021 to 31 January, 2022)
Kansai Super Market Ltd. (from 1 February, 2022 to 31 March, 2022)
Kansai Super Premium Co., Ltd. (from 1 April, 2021 to 31 March, 2022)
2. Forecast of FY2023
Forecast of FY 2023 of gross sales is ¥660,000 million, operating profit of ¥8,000 million, ordinary
profit of ¥7,000 million and profit attributable to owners of the parent of ¥8,000 million.
Forecast of dividends for FY 2023 is ¥25 per share (second quarter ¥12.5 and fiscal year end ¥12.5).

4

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

3.Subsidiaries

The major subsidiaries of the Company as of March 31, 2022 are shown as follows:

H2O Retailing Corporation
Payment for group operation

Management and Corporate planning

Department store business

Other Business

Hankyu Hanshin Department Stores, Inc.

Shinko Management, Inc.

Sales of goods andservice, etc

Sales of food stuff

Supermarket Business
H₂O Foods Group Co.,Ltd.
Izumiya Co., Ltd.
Kansai Food Market Ltd.
Kansai Super Market Ltd.
Hankyu Oasis Co., Ltd.
Qanat Co., Ltd.
Hankyu Kitchen Yell Kansai, Inc.
Hankyu Foods, Inc.
HANKYU delica i, Inc.
Hankyu Bakery Co., Ltd.
and four others
Hankyu Food process Co., Ltd.

Sales of goods andservice, etc

asnas Co., Ltd
Heart Dining, Inc.
Hankyu Wedding
Hankyu Hello Dog Co., Ltd.
Hankyu Home Styling Co., Ltd.
F.G.J Co.,Ltd.
Suzhou Izumiya Co., Ltd.
Hankyu Quality Support
Hankyu Job Yell Co., Ltd.
Hankyu Kensou Co., Ltd.
Hankyu Dept. Stores Uniform
Hankyu Hanshin Department Stores Tomonokai Inc.

Hankyu Act For
Persona Co., Ltd

Leasing, etc

Leasing, etc
and 7 others

Shopping Center Business
H2O Shopping Center Development Co., Ltd.
Hankyu Shopping Center Development Co., Ltd.
Oi Development Co., Ltd
Kanso Co., Ltd.
and three others

Sales of goods andservice, etc(Affiliates)
Ningbo Development Co., Ltd.
Hankyu Hanshin Point Co.,Ltd.
JR East Department Store Co., Ltd.
and 5 others

Other affiliate company
Hankyu Hanshin Holdings, Inc.
※ H2O Retailing Corporation, Hankyu Hanshin Department stores and etc lease real estate from Hankyu Corporation and others
which are the subsidiaries of Hankyu Hanshin holdings.

5

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022
4. Management Policy
Basic management policy
The company’s basic philosophy is “To remain indispensable to the local communities through ouractivities of providing a model of lifestyle to local residents.” Guided by this philosophy, thecompany established a vision; "To be a customer’s lifestyle partner to enrich their hearts throughoffering "fun, happy and tasty" experiences, contributing to the future of the local community,children and our planet." The company strives to enhance the corporate value of the entire group.
In July 2021, the Company announced Long-Term Business Plan 2030 and Medium-Term
Management Plan with fiscal 2021 as the first year.
We provide a variety of products and services based on strong and deep ongoing relationships withour customers through direct communication and aim to continue to grow with the community as a"communication retailer".
Mid- to long-term business plan and Challenges to be Addressed
Issues and Challenges in Each BusinessIn department store business, we aim for the most enjoyable department store by realizing joyful andaffluent lifestyle for customer and empowering their future based on the group vision.
Centered on Hankyu Main Store, which is the Group's hub store, and Hanshin Umeda Main Store,
which was rebuilt and grand-opened in April 2022, we provide new shopping experiences anddevelop business models by creating value based on real stores and strengthening customer
communication through the use of online services. From fiscal 2022 onward, we will begin
remodeling Kobe Hankyu and Takatsuki Hankyu to enhance their competitiveness. In addition,although we returned to operating profitability in fiscal 2021, we will continue to reform cost
structure to lower the break-even point.
In supermarket business, to increase operating profit, we will work to further strengthen thecompetitiveness and improve the profitability of our mainstay food supermarkets. We will further
promote the integration of the supermarket operational functions of Izumiya and Hankyu Oasis. We
will also accelerate the development of a business model with enhanced market responsiveness,rebuild our chain operation management capabilities, and strengthen our sales capabilities throughintegrated manufacturing and sales operations.In addition, the three SM companies, including Kansai
Supermarket Co.Ltd., the Company will also move forward with specific plans to achieve synergies
in store operations, merchandising, payment method, logistics, private brands, refurbishment andstore opening plans, and IT digitalization.
In H2O Shopping Center Development which was divided from Izumiya in April, 2020, we achieved
operating profitability in FY2021, one year ahead of the original schedule by downsizing our direct
operations and promoting the shift to shopping center from general merchandise store, and at thesame time, we will improve our customer mind share by promoting activities to build strong ties withthe community.
In Oi Development, which operates a business hotel, turned profitable in the midst of the headwindof the COVID-19 pandemic by achieving low-cost operations through the use of IT and strengthening
sales capabilities, and will strive to further improve profitability with a view to post-COVID-19 in
the future.
Furthermore, we try to develop new customer service business through digital technologies byleveraging our uniqueness point which has variety of touch points with customers in Kansai region.
While the COVID-19 infection, which has been continuing since 2020, is still not expected to beresolved, we will work to recover earnings through initiatives in each business based on the MediumTerm Management Plan. In addition to cost control and asset efficiency improvement, we will also
make preparations to accelerate business development after COVID-19 at the same time. We will
actively promote sustainability management and aim to further improve our corporate value by
responding to trust of our stakeholders.
Basic policy concerning profit distribution
The company's basic policy is to implement stable profit distribution with considering cash flowwhich is necessary for establishing an appropriate financial base for mid-, long-term, and investment
for growth, based on the performance of each fiscal year. The company will implement anappropriate profit distribution under the consideration of an overall mid-, long-term plan, of Profit
attributable to owners of parent, consolidated net assets, and consolidated cash flow.
5．Basic policy concerning the accounting standard
The company adopts Japanese accounting standards as the accounting standard.

6

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022
6.Consolidated Financial Statements(1) Consolidated Balance Sheets
FY2021(as of March 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable -trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets

7(Millions of yen)
FY2022(as of March 31, 2022)

49,991
54,385
21,546
118
1,673
7,025
4,811
(261)
139,291

34,72459,90621,002
231
1,405
7,398
5,368
(311)
129,725

297,009(195,136)
101,873
7,726(5,186)
2,539
139,126
8,684
42,867(33,706)
9,161
261,386

345,658(223,168)
122,490
9,280(6,376)
2,903
162,4622,220
50,019(38,852)
11,167301,245

2,704
14,024
16,7292,197
14,245
16,443

114,748
11,25370,0291,898
11,4532,000(2,845)208,538
486,653625,945

104,231
16,04473,074
4,156
10,495
1,943(2,802)
207,143524,832
654,558

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

FY2021(as of March 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Lease obligations
Income taxes payable
Gift certificates
Advances received
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on store closings
Provision for point card certificates
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities related to land revaluation
Provision for retirement benefits for directors (and other officers)

Provision for redemption of gift certificates
Retirement benefit liability
Long-term accounts payable - other
Lease obligations
Long-term guarantee deposited
Asset retirement obligations
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 income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total Liabilities and Net Assets

8(Millions of yen)
FY2022(as of March 31, 2022)

48,996
46,41426,890910
1,678
28,077
8,611
3,284
23
348
1,854
940
16,502
184,531

56,8391,100
24,764
1,267
3,546
9,211
32,320
4,177
24
1,457
620
12,334
147,663

20,000122,133
23,805
266
172
4,635
12,839158
12,883
9,530
3,193
2,517
212,136
396,667

20,000154,282
26,938
266
228
3,079
13,260386
12,24810,6513,580
1,034
245,956
393,620

17,796
92,63385,065(2,732)
192,763

17,79695,08692,299(3,151)
202,030

38,668124(960)(2,462)35,3701,138
4
229,277
625,945

35,881303
565(1,936)34,814
1,168
22,924
260,938
654,558-

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

(2) Consolidated Statements of Income(Millions of yen)
FY2022(From April 1, 2021
to March 31, 2022)
518,447
299,766
218,680

FY2021(From April 1, 2020
to March 31, 2021)
739,198
527,294
211,903

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Rent expenses
Other selling expenses
Selling, general and administrative expenses, net
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Gain on adjustment of accounts payable
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on provision for redemption of gift certificates
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Subsidy income
Gain on reversal of asset retirement obligations
Penalty income
Total extraordinary income
Extraordinary losses
Loss related to COVID-19
Loss on closing of stores and others
Loss on retirement of noncurrent assets
Impairment losses
Loss on step acquisitions
Expenses for opening new stores
Loss on sale of shares of subsidiaries and associates
Total extraordinary losses

65,03236,365
114,943
216,342(4,438)67,55340,468109,918
217,939
740

371
1,418
1,862
401
1,008
5,062

533
1,062
1,105
1,530
835
5,068

848
1,068
561
1,052
3,530
(2,907)

940
729
901
891
3,462
2,346

-

13,632
6,485
3,427
3,001
486

2,683
366
3,049

27,032

5,353
2,103
1,944
14,771

24,172

4,253
2,530
2,222
1,881
1,753
751
400
13,792

Profit (loss) before income taxes(24,030)

15,586

Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

1,467
(706)
761
(24,791)
0(24,791)

4,166
1,399
5,566
10,020
148
9,872

-

9

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 2022

(3) Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Loss on store closing and others
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in remeasurements of defined benefit plans
Increase (decrease) in provision for retirement benefits for directors (and other officers)
Increase(decrease) in provision for redemption of gift certificates
Increase(decrease) in provision for loss on store closing and others
Increase(decrease) in provision for point card certificatesInterest and dividend income
Interest expense
Foreign exchange losses (gains)
Gain on bargain purchase
Subsidy income
Penalty income
Loss related to COVID-19
Gain on step acquisitions
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales of investment securities
Gain on sale of shares of subsidiaries and associates
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in gift certificates
Increase (decrease) in advances received
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Penalty received
Payments for loss on COVID-19
Extra payments for early retirements
Net cash provided by (used in) operating activities

10

FY2021(From April 1, 2020
to March 31, 2021)(Millions of yen)
FY2022(From April 1, 2021
to March 31, 2022)(24,030)
18,141
14,771
1,603
546
(156)
(630)
(66)
(766)
384
16
401
269
(97)
(1,789)848(401)(2,683)
(366)
4,865
561
(0)
(56)
1,114
(10,365)
6,248
5,326
2,714
201
(847)
3,064
18,8201,640(769)(1,858)2,683
366(4,848)(3,279)12,755

15,586
17,902
1,881
1,086
507
7
445
2
(422)
463
56
262
1,108
(1,596)940(1,529)(3,427)(3,001)
3,700
1,753
901
(6,485)400(13,624)
1,130(3,420)2,992(4,706)(2,869)
(37)
(208)
(317)
9,481
1,535
(945)
(2,228)3,001(3,601)
(237)
7,007

H2O Retailing Corporation(8242)
Consolidated Financial Statements of the Fiscal Year Ended March 31, 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 sales of intangible assets
Payments for asset retirement obligations
Purchases of investment securities
Proceeds from sale of investment securities
Proceeds from sale of businesses
Payments into time deposits
Proceeds from withdrawal of time deposits
Long-term loan advances
Proceeds from collection of long-term loans receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Payments for sales of shares of subsidiaries resulting in change in scope of consolidation
Net cash provided by (used in) inveseting activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from sales of treasury shares
Purchase of treasury shares
Purchase of treasury shares of subsidiaries
Dividends paid
Repayments of lease obligations
Repayments of investments in silent partnerships
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 year
Increase in cash and cash equivalents resulting from share exchange
Cash and cash equivalents

11

FY2021(From April 1, 2020
to March 31, 2021)(Millions of yen)
FY2022(From April 1, 2021
to March 31, 2022)(13,952)
1,429(4,087)
(158)
(219)
(150)
(4,402)
449
(317)
695
(47)
(20,761)(26,304)
19,771(3,874)
1
(802)
(125)
9,386
(1,400)900(4,011)
451
(341)
620
(18)
(5,745)(15,000)
70,000(18,175)0(1)(4,018)(943)
31,859179
24,03325,95849,991

32,000(46,840)0(473)(7,383)(3,093)(1,027)(1,760)(28,578)763(26,553)
49,991
9,736
33,174