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, 2023
(Based on Japanese GAAP)
November 10, 2023
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, 2023

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

December 20, 2023
December 21, 2023

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, 2023 (from October 1, 2022 to September 30, 2023)(1) Consolidated operating results
Net salesYear ended September 30, 2023
Year ended September 30, 2022

Operating profit

Millions of yen
13,632
13,702% Millions of yen
(0.5)
1,254
–
1,031

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
11.7
11.4
9.2
–
11.0
10.3
7.5

Yen
45.91
39.13

Year ended September 30, 2023
Year ended September 30, 2022

%
21.7
–

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen
%
1,257
20.4
687
16.9
1,044
–
588
–

(2) Consolidated financial position
Total assets
As of September 30, 2023
As of September 30, 2022

Net assets

Equity ratio

Millions of yen
11,244
10,905

Millions of yen
6,583
6,082

Cash flows fromoperating activities
Millions of yen
795
1,550

Cash flows frominvesting activities
Millions of yen
(861)
(763)

Net assets per share
%
54.1
51.6

Yen
406.68373.59(3) Consolidated cash flows

Year ended September 30, 2023
Year ended September 30, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(754)
3,138
306
3,958

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

Year ended September 30, 2022
Year ended September 30, 2023
Year ending September 30, 2024
(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

–
–

12.00
14.00

12.00
14.00

180
209

30.7
30.5

3.4
3.6

–

0.00

–

15.00

15.00

1

29.9

3. Forecast of consolidated financial results for the year ending September 30, 2024 (from October 1, 2023 to September 30, 2024)
Net sales
Millions of yen
Six months ending
March 31, 2024
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

7,990

8.8

660

(21.4)

660(21.2)

320(35.3)

21.41

15,500

13.7

1,350

7.6

1,350

7.4

750

9.1

50.17

4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2023
(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, 2023

15,347,600 shares As of September 30, 2022

15,273,500 shares

Number of treasury shares at the end of the period
As of September 30, 2023

398,114 shares As of September 30, 2022

217,014 shares

14,975,226 shares Year ended September 30, 2022

15,027,075 shares

Average number of shares during the period
Year ended September 30, 2023

2

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2022

As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets

3,958,521
2,440,141

3,138,112
3,379,750

3,421
345,520

3,575
230,817

1,272
1,996

1,437
2,782

359,131(9,227)

312,179(12,900)

7,100,777

7,055,754

1,245,310(248,463)

1,428,596(300,254)

996,846

1,128,341

5,134(2,716)

5,134(3,652)

2,418

1,482

492,436(398,747)

595,318(451,862)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment
Buildings and structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment
Tools, furniture and fixtures, net

93,689143,456

618,090
28,807

618,090–

1,739,851

1,891,370

313,341

399,939

304,188369,645491,939
305,119667

515

987,843

1,197,514

Investment securities
Lease and guarantee deposits

435,750
109,250

439,80993,430Distressed receivables
Deferred tax assets

46,119295,682–
280,221Retirement benefit asset
Long-term prepaid expenses

129,60763,281

137,305
75,876

Other
Allowance for doubtful accounts

43,713(46,479)

73,079(360)

Total investments and other assets

1,076,926

1,099,361

LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Software in progress
Goodwill
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets

3

3,804,621

4,188,246

10,905,398

11,244,000

(Thousands of yen)
As of September 30, 2022

As of September 30, 2023

Liabilities
Current liabilities
Accounts payable - trade

1,179,379

1,356,065

Short-term borrowings
Current portion of bonds payable

100,000
5,000

200,000–

Current portion of long-term borrowings
Lease liabilities

598,0421,524

557,149
1,267

Accounts payable - other
Income taxes payable

226,862305,077

300,975
262,036

Provision for bonuses
Contract liabilities

227,627
308,229

316,615
289,309

Other

310,955

337,2023,262,698

3,620,622

1,186,822
2,026

660,712
1,577

Retirement benefit liability
Deferred tax liabilities

194,116–

206,355
2,288

Other

177,626

169,343

1,560,591

1,040,277

4,823,289

4,660,899

Share capital
Capital surplus

1,198,552
1,224,404

1,218,077
1,243,929

Retained earnings
Treasury shares

3,291,991(100,410)

3,798,845(200,373)

Total shareholders' equity

5,614,537

6,060,479

10,47919,114

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease 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

10,47919,114457,091

503,5076,082,108

6,583,101

10,905,398

11,244,000

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

Fiscal year ended

September 30, 2022

September 30, 2023

Net sales
Cost of sales

13,702,572
10,543,926

13,632,104
9,941,715

Gross profit

3,158,646

3,690,388

256,726

284,953

Salaries and allowances
Bonuses743,644
71,897

831,42162,802

Legal welfare expenses
Provision for bonuses

149,123
50,770176,738
101,431Retirement benefit expenses
Provision of allowance for doubtful accounts

16,202(831)

11,126
3,673

Advertising expenses
Travel and transportation expenses

16,95391,507

26,736111,375

Rent expenses
Taxes and dues

57,84251,49665,264
34,771

Depreciation
Commission expenses

32,266
182,587

43,302
198,317

Donations
Research and development expenses

150
178,392

66,000137,736

Amortization of goodwill
Other34,485
194,215

46,367
233,466

2,127,431

2,435,486

1,031,214

1,254,902

71
3,095

450
2,825

56
428

6,737
–

5,784
2,645

141
5,501

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

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of investment securities
Gain on investments in investment partnerships
Foreign exchange gains
Subsidy income
Other

9,213

3,914

Total non-operating income

21,295

19,570

7,948
–

6,952
4,192

–
–

3,526
1,891

Non-operating expenses
Interest expenses
Loss on investments in investment partnerships
Share acquisition rights issuance costs
Commission expenses
Other
Total non-operating expenses
Ordinary profit

5

234

691

8,182

17,255

1,044,328

1,257,217

(Thousands of yen)
Fiscal year ended

Fiscal year ended

September 30, 2022

September 30, 2023

Extraordinary income
Gain on redemption of investment securities

120

120

Reversal of allowance for doubtful accounts
Surrender value of insurance policies–
89,66425,277–

Total extraordinary income

89,78425,397

6,827

1,582

Retirement benefits for directors (and other officers)
Impairment losses

60,800––18,720Total extraordinary losses

67,627

20,303

1,066,484

1,262,312

Income taxes - current

478,003475,188

Income taxes - deferred(94,171)

13,976

Total income taxes

383,831

489,164

Profit682,652

773,147

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

588,002
94,650687,532
85,615

Other comprehensive income
Valuation difference on available-for-sale securities(21,383)

8,635

Extraordinary losses
Loss on retirement of non-current assets

Profit before income taxes

Profit attributable toTotal other comprehensive income
Comprehensive income(21,383)

8,635

661,269

781,783

566,619
94,650696,167
85,615Comprehensive 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, 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)

50,55029,166

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

50,550542,697

Balance at end of period

10,47910,479457,091

6,082,1087

Fiscal year ended September 30, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

1,198,552

Capital surplus
1,224,404

Retained earnings
3,291,991

Treasury shares(100,410)

Total shareholders'equity5,614,537

Changes during period
Dividends of surplus
Issuance of new shares Restricted Stock -(180,677)
19,525(180,677)

19,525

Profit attributable to ownersof parent

39,050687,532

Purchase of treasury shares

687,532(99,963)(99,963)

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

19,525

19,525506,854(99,963)445,941

1,218,077

1,243,929

3,798,845(200,373)

6,060,479

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Total accumulated
other comprehensive
income10,47910,479Non-controllinginterests
457,091

Total net assets

6,082,108

Changes during period
Dividends of surplus(180,677)

Issuance of new shares Restricted Stock -39,050

Profit attributable to ownersof parent

687,532

Purchase of treasury shares(99,963)

Net changes in items otherthan shareholders' equity

8,635

8,635

46,41555,051

Total changes during period

8,635

8,635

46,415500,992

Balance at end of period

19,114

19,114

503,5076,583,101

8

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
Impairment losses
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in distressed receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net

Fiscal year ended

Fiscal year ended

September 30, 2022

September 30, 2023

1,066,484
69,537265,750
34,485–(10,748)(831)(3,166)
7,948
215,868–
312,198(19,343)
8,842
59,105

1,262,312
107,915
285,080
46,367
18,72088,987(42,446)(3,275)
6,952(939,609)
46,119114,384
176,686
89,207102,055

Subtotal

2,006,133

1,359,460

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

3,155(7,948)(489,119)
38,458

3,263(6,952)(612,118)
52,163

Net cash provided by (used in) operating activities

1,550,678

795,816(1,144,148)(360,894)
800,000(5,627)
20,142
9,121
173,878
(554)
9,519

(275,995)(566,169)–(17,587)
26,475
1,872–(2,394)
14,044(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
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
Purchase of treasury shares
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

157(41,960)(763,830)(861,715)

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

100,000–(567,003)(5,000)(99,963)(1,695)39,050(180,698)(39,200)

306,644(754,509)

Net increase (decrease) in cash and cash equivalents

1,093,491(820,408)

Cash and cash equivalents at beginning of period

2,865,030

3,958,521

Cash and cash equivalents at end of period

3,958,521

3,138,1129