Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended September 30, 2022
(Based on Japanese GAAP)
November 11, 2022
Company name:CE Holdings Co.,Ltd.

Stock exchange listing: Tokyo, Sapporo
Stock code:
4320
URL
Representative:

https://www.ce-hd.co.jp

Representative Director and President &CEO(Chief Exective Officer)

Naokazu Saito

Inquiries:
Director & CFO(Chief Financial Officer)
Scheduled date of ordinary general meeting of shareholders:

Tsunehito Taguchi
December 20, 2022

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

December 20, 2022
December 21, 2022

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

011(861)1600(for analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(1) Consolidated operating results
Net salesYear ended September 30, 2022
Year ended September 30, 2021

Operating profit

Millions of yen
13,702
12,284%–
15.8

Millions of yen
1,031
879

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
11.0
10.3
7.5
–
13.2
9.9
7.2

Yen
39.13
42.34

Year ended September 30, 2022
Year ended September 30, 2021

%
–
60.7

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen
%
1,044
–
588
–
908 100.8
632 421.2(2) Consolidated financial position
Total assets
As of September 30, 2022
As of September 30, 2021

Net assets

Equity ratio

Millions of yen
10,905
9,459

Millions of yen
6,082
5,479

Cash flows fromoperating activities
Millions of yen
1,550
1,004

Cash flows frominvesting activities
Millions of yen
(763)
(109)

Net assets per share
%
51.6
53.6

Yen
373.59339.05(3) Consolidated cash flows

Year ended September 30, 2022
Year ended September 30, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
306
3,958
(838)
2,865

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2021
Year ended September 30, 2022
Year ending September 30, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

0.00
0.00

–
–

8.00
12.00

8.00
12.00

119
180

18.9
30.7

2.5
3.4

–

0.00

–

13.00

13.00

1

32.1

3. Forecast of consolidated financial results for the year ending September 30, 2023 (from October 1, 2022 to September 30, 2023)
Net sales
Millions of yen
Six months ending
March 31, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen

7,920

9.5

650

5.5

650

4.7

360

7.3

23.91

14,350

4.7

1,100

6.7

1,100

5.3

610

3.7

40.51

4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

15,273,500 shares As of September 30, 2021

15,178,500 shares

Number of treasury shares at the end of the period
As of September 30, 2022

217,014 shares As of September 30, 2021

217,014 shares

15,027,075 shares Year ended September 30, 2021

14,949,149 shares

Average number of shares during the period
Year ended September 30, 20222

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2021

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

2,869,457
2,538,106

3,958,521
–

–
2,669

2,440,141
3,421Work in process
Raw materials and supplies

642,6092,331

345,520
1,272

Accounts receivable - other
Other

801,971
256,371

1,996
359,131

Allowance for doubtful accounts(9,712)(9,227)

7,103,804

7,100,777

547,225

1,245,310

Accumulated depreciation and impairment(225,143)(248,463)

Buildings and structures, net

322,081996,846

Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

VehiclesAccumulated depreciation
Vehicles, net

5,134

5,134

(1,780)(2,716)

3,354

2,418

409,997492,436(361,127)(398,747)

48,87093,689Land

188,823

618,090

Construction in progress

89,01028,807

Total property, plant and equipment

652,139

1,739,851

283,515
186,010313,341
304,188

577
250

416
250

Goodwill

166,480369,645

Total intangible assets

636,834

987,843

Investment securities
Lease and guarantee deposits

479,763
124,159435,750
109,250

Distressed receivables
Deferred tax assets

46,119221,947

46,119295,682Retirement benefit asset
Long-term prepaid expenses

138,064
57,675

129,60763,281Other
Allowance for doubtful accounts

45,049(46,479)

43,713(46,479)

Total investments and other assets

1,066,300

1,076,926

2,355,274

3,804,621

9,459,079

10,905,398

Tools, furniture and fixtures
Accumulated depreciation and impairment
Tools, furniture and fixtures, net

Intangible assets
Software
Software in progress
Trademark rightTelephone subscription right

Investments and other assets

Total non-current assets
Total assets3

(Thousands of yen)
As of September 30, 2021

As of September 30, 2022

Liabilities
Current liabilities
Accounts payable - trade

1,185,870

1,179,379

Short-term borrowings
Current portion of bonds payable–
25,000100,000
5,000

Current portion of long-term borrowings
Lease liabilities

494,878
1,267

598,042
1,524

Accounts payable - other
Income taxes payable

193,658
281,022226,862305,077

Provision for bonuses
Contract liabilities

238,375–

227,627
308,229

Other

441,581

310,955

2,861,653

3,262,698

Bonds payable
Long-term borrowings

5,000
841,158–
1,186,822

Lease liabilities
Retirement benefit liability

3,293
189,782

2,026
194,116

Other

79,019177,626

1,118,252

1,560,591

3,979,906

4,823,289

Share capital
Capital surplus

1,175,942
1,201,794

1,198,552
1,224,404

Retained earnings
Treasury shares

2,763,441(100,410)

3,291,991(100,410)

Total shareholders' equity

5,040,768

5,614,537

31,862

10,479Total current liabilities
Non-current liabilities

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

31,862

10,479406,541457,091

5,479,172

6,082,108

9,459,079

10,905,398

Consolidated statements of income and consolidated statements of comprehensive income(Thousands of yen)
Fiscal year ended

Fiscal year ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

12,284,597
9,635,710

13,702,572
10,543,926

Gross profit

2,648,887

3,158,646

215,108

256,726

Salaries and allowances
Bonuses

656,942
84,017

743,644
71,897

Legal welfare expenses
Provision for bonuses

130,765
19,501

149,123
50,770Retirement benefit expenses
Provision of allowance for doubtful accounts

4,293(15,440)

16,202(831)

Advertising expenses
Travel and transportation expenses

4,729
66,362

16,95391,507

Rent expenses
Taxes and dues

52,75937,89957,84251,496

Depreciation
Commission expenses

31,962
137,825

32,266
182,587

Research and development expenses
Amortization of goodwill

147,152
22,602

178,392
34,485

Other

173,341

194,365

1,769,823

2,127,431

879,063

1,031,214

Selling, general and administrative expenses
Remuneration for directors (and other officers)

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income

164

71

Dividend income
Gain on sale of investment securities

3,365
2,807

3,095
56

Gain on investments in investment partnerships
Foreign exchange gains

33,113
544

428
5,784

Surrender value of insurance policies
Other

1,453
10,170–11,859Total non-operating income

51,62021,295Non-operating expenses
Interest expenses

8,937

7,948

Share of loss of entities accounted for using equity method
Other

12,424522–
234

Total non-operating expenses

21,884

8,182

908,798

1,044,328

Ordinary profit

5

(Thousands of yen)

Extraordinary income
Gain on redemption of investment securities

Fiscal year ended

Fiscal year ended

September 30, 2021

September 30, 2022
120

120

Gain on sale of shares of subsidiaries and associates
Surrender value of insurance policies

114,560––
89,664

Total extraordinary income

114,680

89,7840

6,827Provision of allowance for doubtful accounts
Retirement benefits for directors (and other officers)

22,369––60,800Total extraordinary losses

22,36967,6271,001,108

1,066,484

Income taxes - current

369,391

478,003

Income taxes - deferred(90,470)(94,171)

Total income taxes

278,921383,831

Profit722,187

682,652

Profit attributable to owners of parent
Profit attributable to non-controlling interests

632,927
89,260588,002
94,650

Other comprehensive income
Valuation difference on available-for-sale securities

22,578(21,383)

Extraordinary losses
Loss on retirement of non-current assets

Profit before income taxes

Profit attributable toTotal other comprehensive income
Comprehensive income

22,578(21,383)

744,766

661,269

655,506
89,260566,619
94,650Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6Consolidated statements of changes in equity
Fiscal year ended September 30, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

1,165,415

Capital surplus
1,191,267

Retained earnings
2,231,984

Total shareholders'equityTreasury shares(100,410)

4,488,257

Changes during period
Dividends of surplus
Issuance of new shares Restricted Stock -(101,469)
10,526(101,469)

10,526

Profit attributable to ownersof parent

21,053632,927

632,927

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

10,526

10,526

531,457–

552,510

1,175,942

1,201,794

2,763,441(100,410)

5,040,768

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income

9,283

9,283

Non-controllinginterests
341,781

Total net assets

4,839,322

Changes during period
Dividends of surplus(101,469)

Issuance of new shares Restricted Stock -21,053

Profit attributable to ownersof parent

632,927

Net changes in items otherthan shareholders' equity

22,57822,578

Total changes during period

22,57822,57864,760639,850

Balance at end of period

31,862

31,862406,541

5,479,172

7

64,76087,339Fiscal year ended September 30, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

1,175,942

Capital surplus
1,201,794

Cumulative effects ofchanges in accounting
policies
Restated balance

Retained earnings
2,763,441

Total shareholders'equityTreasury shares(100,410)

60,2381,175,942

1,201,794

2,823,680

5,040,768
60,238(100,410)

5,101,007

Changes during period
Dividends of surplus
Issuance of new shares Restricted Stock -(119,691)
22,610(119,691)

22,610

Profit attributable to ownersof parent

45,220588,002

588,002

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

22,61022,610468,310–

513,530

1,198,552

1,224,404

3,291,991(100,410)

5,614,537

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income31,862

31,862

Non-controllinginterests
406,541

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

5,479,172
60,23831,862

31,862406,541

5,539,411

Changes during period
Dividends of surplus(119,691)

Issuance of new shares Restricted Stock -45,220

Profit attributable to ownersof parent

588,002

Net changes in items otherthan shareholders' equity(21,383)(21,383)

Total changes during period(21,383)(21,383)

50,550542,697

Balance at end of period

10,47910,479457,091

6,082,108

850,55029,166

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation of fixed assets
Depreciation of intangible assets
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Loss (gain) on sale of shares of subsidiaries and associates
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables
Decrease (increase) in distressed receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net

Fiscal year ended

Fiscal year ended

September 30, 2021

September 30, 2022

1,001,108
62,964
261,741
22,60233,281
6,929(3,529)8,937(114,560)

1,066,484
69,537265,750
34,485(10,748)(831)(3,166)
7,948–

12,424–(234,721)(46,119)(258,169)
269,559
45,081

215,868–
312,198(19,343)
67,948Subtotal

1,067,530

2,006,133

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

27,318(8,937)(142,777)
60,952

3,155(7,948)(489,119)
38,458Net cash provided by (used in) operating activities

1,004,086

1,550,678(171,320)(218,855)
220,000(14,269)
22,80349,141
2,470
(568)
2,931

(1,144,148)(360,894)
800,000(5,627)
20,142
9,121
173,878
(554)
9,519

–

(265,425)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of shares of subsidiaries and associates
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from share of profits on investments in partnership
Proceeds from cancellation of insurance funds
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net(1,719)157(109,386)(763,830)––(697,879)(34,000)(1,267)
21,053(101,857)(24,500)

100,000
1,000,000(648,270)(25,000)(1,460)45,220(119,745)(44,100)(838,450)

306,644

Net increase (decrease) in cash and cash equivalents

56,249

1,093,491

Cash and cash equivalents at beginning of period

2,808,780

2,865,030

Cash and cash equivalents at end of period

2,865,030

3,958,521

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of lease liabilities
Proceeds from issuance of shares
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities

9