Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(Japanese Accounting Standards)
May 9, 2024
Company name:
SHOFU INC.
Listing:
Tokyo Stock Exchange (Prime Market)
Code number:
7979
URL:
https://www.shofu.co.jp/
Representative:
Tetsuo Takami, Representative Director, President & Chief Operating Officer
Contact:
Takashi Morimoto, General Manager of Finance Department
Scheduled date of ordinary shareholder’s meeting:June 25, 2024
Scheduled date for filing of annual securities report: June 25, 2024
Scheduled commencement date of dividend payment: June 5, 2024
Supplementary materials for quarterly financial results: Yes
Financial results briefing held:
Yes (for analysts and institutional investors)(All amounts are rounded down to the nearest million yen)
1．Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 –March 31, 2024)(1) Consolidated Operating Results(% indicates changes from previous fiscal year)
Net sales

Operating income

Net income attributableto owners of parent

Ordinary income

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

35,080

10.7

4,709

23.1

5,118

20.8

3,655

16.6

31,678

12.6

3,824

18.9

4,238

15.8

3,135

23.1

Year ended
March 31, 2024
Year ended
March 31, 2023

(Note) Comprehensive income:Year ended March 31, 2024 7,157 million yen （99.7％）
Year ended March 31, 2023 3,584 million yen （6.5％）
Net income (loss)
Fully diluted
per share
net income (loss) per share
Yen

Year ended
March 31, 2024
Year ended
March 31, 2023

Yen

206.18205.25176.10175.13Return on
equityRatio of ordinary
income to total assets

Ratio of operating
income to net sales

%

%

%

9.5

10.9

13.4

9.2

10.0

12.1

(Reference) Equity in earnings (losses) of affiliates: Year ended March 31, 2024
Year ended March 31, 2023

-7 million yen
9 million yen(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen％

Yen

50,093

41,60982.7

2,336.04

43,72735,51580.8

1,996.64(Reference) Shareholder’s equity: Year ended March 31, 2024
Year ended March 31, 2023

41,448 million yen
35,342 million yen

Year ended
March 31, 2024
Year ended
March 31, 2023

(3) Consolidated Cash Flows

Year ended
March 31, 2024
Year ended
March 31, 2023

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

3,089(1,295)(2,096)

9,024

3,170

(1,290)(1,457)8,830

2．Dividends
Annual dividends per share
End of
End ofYear-end
second quarter third quarterEnd offirst quarter
Yen

Year ended
March 31, 2023
Year ended
March 31, 2024
Year ending
March 31, 2025
(Forecasts)

Yen

―

15.00

―

20.00

―

36.00

Yen

―

―

Total
dividends(annual)

Total

Payout ratio(consolidated)

Ratio of dividends
to net sales(consolidated)

Yen

Yen

Millions of yen

%

%

42.00

57.00

1,011

32.4

3.0

42.00

62.00

1,100

30.1

2.9

26.00

―

40.7

(Notes) 1. Year-end dividends for the fiscal year ended March 31, 2023 include commemorative dividend of 10.00 yen.
(The 100th anniversary of the Company’s founding)
2. The Company plans to conduct a two-for-one stock split with a record date of 1 October 2024. The dividend
forecast shown for the end of the second quarter in the year ending March 31, 2025 is prior to the stock split andthe year-end forecast shown is that for after the split. An annual dividend per share forecast is not shown as asimple summation is not possible due to the stock split. However, the annual dividend on a pre-stock-split basis
is 88 yen per share. Furthermore, the estimated consolidated payout ratio for the year ending March 31, 2025 iscalculated using net income per share prior to taking into account the aforementioned stock split (216.36 yen for
the full year) and an annual dividend of 88 yen per share. For further details, please refer to the explanation
concerning the appropriate use of business forecasts, and other special items.
3．Estimate of Consolidated Operating Results for Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)(% indicates changes from previous fiscal year)
Net sales

Six months ending
September 30, 2024
Year ending
March 31,2025

Operating income

Net income
attributable toowners of parent

Ordinary income

Net income
per share

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

Yen

18,426

12.0

2,099

(2.6)

2,147

(10.1)

1,872

20.1

105.5337,721

7.5

4,800

1.9

4,894

(4.4)

3,838

5.0

148.04(Notes) Estimates for net income per share for consolidated financial results takes into account the impact of the stock
split. For further details, please refer to the explanation concerning the appropriate use of business forecasts, andother special items.
*Notes(1) Changes in significant subsidiaries during the period (Changes in Specified Subsidiaries resulting in change in scope of
consolidation):
None(2) Changes in accounting policies and changes in accounting estimates:(a) Changes in accounting policies resulting from revisions in accounting standards:(b) Changes in accounting policies due to other reasons:None(c) Changes in accounting estimates: None(d) Retrospective restatements:
None(3) Number of shares outstanding (common stock)(a) Number of shares outstanding at end of period (including treasury stock).
As of March 31, 2024: 17,894,089 shares
As of March 31, 2023: 17,894,089 shares(b) Number of treasury stock at end of period
As of March 31, 2024: 151,114 shares
As of March 31, 2023: 192,907 shares(c) Average number of shares during the period
As of March 31, 2024: 17,731,684 shares
As of March 31, 2023: 17,805,323 shares

None(Reference) Summary of Non-Consolidated Financial Results
Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(1) Non-Consolidated Operating Results(% indicates changes from previous fiscal year)
Net salesYear ended
March 31, 2024
Year ended
March 31, 2023

Year ended
March 31, 2024
Year ended
March 31, 2023

Operating income

Ordinary income

Net income

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

21,273

10.1

1,681

75.9

4,226

30.7

3,506

21.7

19,329

9.5

956

26.8

3,233

48.7

2,881

70.2

Net income (loss)
per share

Fully diluted
net income (loss) per share

Yen

Yen

197.74196.84161.85160.96(2) Non-Consolidated Financial Position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen

Year ended
40,66733,552
March 31, 2024
Year ended
36,012
29,197
March 31, 2023
(Reference) Shareholder’s equity: Year ended March 31, 2024 33,473 million yen
Year ended March 31, 2023 29,098 million yen

Net assets per share
％

Yen

82.3

1,886.58

80.8

1,643.88* This consolidated financial results are not subject to review by a certified public accountant or an audit firm.
* Explanation concerning the appropriate use of business forecasts, and other special items
Business results forecasts and other forward-looking statements included in this document are based on information
currently available to the Company and certain assumptions deemed reasonable at the time of writing. Please note that
actual business results may differ materially from these forecasts, due to a variety of factors. For information concerning thebusiness results forecasts, please refer to “(4) Explanation of Future Forecast Information including Consolidated BusinessResults Forecasts” on page 4 of the Accompanying Materials.
（Explanation about earnings forecasts and dividend forecasts following the stock split）
The Board of Directors resolved at a meeting on 1 May 2024 to undertake a two-for-one stock split with a record date of 1
October, 2024.
The consolidated earnings forecasts and dividend forecasts for the fiscal year ending 31 March 2025 on a pre-stock-split
basis are as follows:
1. Consolidated earnings forecast for the year ending 31 March 2025
Estimated net income per share: 216.36 yen
2. Dividend forecast for the year ending 31 March 2025
Forecast dividend per share at end of second quarter: 36 yen; at year-end: 52 yen; total dividend per share: 88 yenAccompanying Materials－Contents
1．Overview of Business Results, etc. .........................................................................................................................................2(1) Overview of Business Results for the Fiscal Year under Review ......................................................................................2(2) Overview of Financial Position for the Fiscal Year under Review ....................................................................................3(3) Overview of Cash Flows for the Fiscal Year under Review ..............................................................................................3(4) Future Outlook .....................................................................................................................................................................4(5) Basic Policy on Profit distribution and Dividends for the Fiscal Year under Review and Upcoming Fiscal Year ..........5
2．Basic Approach to the Selection of Accounting Standards ....................................................................................................5
3．Consolidated Financial Statements and Primary Notes..........................................................................................................6(1) Consolidated Balance Sheets ...............................................................................................................................................6(2) Consolidated Statements of Income and Comprehensive Income ....................................................................................8(3) Consolidated Statements of Changes in Net Assets .........................................................................................................10(4) Consolidated Statements of Cash Flows ...........................................................................................................................12(5) Notes to Quarterly Consolidated Financial Statements ....................................................................................................13(Notes Relating to Assumptions for the Going Concern) ................................................................................................13(Segment Information,etc).................................................................................................................................................13(Per Share Information) .....................................................................................................................................................16(Significant Subsequent Events) .......................................................................................................................................16-1-

1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year under Review(General situation)
During the consolidated fiscal year under review, the global economy showed signs of recovery. However, theoutlook remained uncertain due to global inflationary pressures, ongoing monetary tightening in Europe and the US
as well as prolonged geopolitical risks.
The domestic economy also marked a gradual recovery path on the back of improvements in employment andincome levels, but it remains difficult to be upbeat on the outlook amid downside risks for the global economy andinflation.
In the dental industry, competition among companies related to digital dentistry is becoming increasingly intense
on a global level. However, in Japan there were some positive signs for the industry such as efforts towards theprovision of universal dental checkups and consideration being made to establishing and improving systems toprevent oral frailty (decrease in oral function) and aggravation of disease.
Against this backdrop, as we entered the final year of the fourth medium-term management plan, the Company wasactively engaged in business activities aimed at further growth.
Specifically, in Japan we expanded our lineup of CAD/CAM-related products and bolstered our sales strategy inthe preventative field, while overseas we aggressively launched new products and enhanced the functionality of sales
bases in South America and the Middle East.
Furthermore, as well as beginning rebuilding works for our head office plant to raise production capacity, we
implemented measures with an eye on longer-term growth, such as moving forward with preparations for theestablishment of a manufacturing subsidiary in China.
As a result, sales for the year under review amounted to ¥35,080 million, an increase of ¥3,401 million (10.7%)
year-on-year.
Operating income increased by ¥884 million (23.1%) year-on-year to ¥4,709 million, despite higher selling,
general and administrative expenses, due to increased sales.
Ordinary income increased by ¥880 million (20.8%) year-on-year to ¥5,118 million, thanks to the booking ofdividend payments and foreign exchange gains.
As a result of ¥285 million from the sale of investment securities, ¥52 million in income from the recovery ofremittance fraud, and the booking of ¥173 million as an extraordinary loss from an impairment charge, net income
attributable to shareholders of the parent company after deducting tax expenses amounted to ¥3,655 million, an
increase of ¥520 million (16.6%) year-on-year, with sales, operating income, ordinary income, and net income allreaching record levels.
(Dental Business)
In Japan, sales grew year-on-year thanks to contributions from products including EyeSpecial C-V (an intraoral
digital camera), and CAD/CAM-related products such as SHOFU Disk ZR Lucent Supra (ceramic material for dental
cutting/machining).
Overseas, sales were solid, particularly in Europe and Asia, including China, thanks to steady sales growth in dental
filling and restorative materials in various regions as a result of a sales strategy that leveraged competitive advantagesof our products. With foreign exchange trends also providing a positive, sales increased year-on-year.
As a result, sales in the dental business increased by ¥3,386 million (11.6%) year-on-year to ¥32,624 million andoperating income increased by ¥965 million (26.0%) to ¥4,685 million, despite an increase in selling, general andadministrative expenses.
(Nail Care Business)
In Japan, sales rose year-on-year thanks to sales growth in mainstay products including PRESTO (professional-2-

gels) and NAIL DE DANCE (acrylic materials), despite falling sales of by Nail Labo (gel nail products for general
consumers) amid changes in consumer tastes.
Overseas, sales in Taiwan increased, particularly for our original brand ARTiS di Voce at drug store chains.
However, even though we focused on promotional activities such as via social media in the US, overall sales declined
year-on-year amid tough conditions as a result of inflation.
As a result, sales in the nail-related business increased by ¥28 million (1.2%) year-on-year to ¥2,373 million, but
operating income decreased by ¥88 million (94.5%) to ¥5 million due to a higher cost of sales and an increase in
selling, general and administrative expenses.
(Other Businesses).
In other businesses, the market for industrial abrasives remained solid overall, with improvements insupply/demand for semiconductors, a recovery in capex and rising demand for automation and labor-saving products.
However, overall sales declined significantly as a result of a fall in orders from customers following price increases
implemented in the previous fiscal year.
As a result, sales from other businesses were ¥81 million, a decrease of ¥13 million (-14.3%) year-on-year, but
operating income was ¥12 million, an increase of ¥7 million (134.8%) year-on-year.
(Note: Sales in each segment do not include intersegment sales.)(2) Overview of Financial Position for the Fiscal Year under Review
Assets increased by ¥6,366 million from the end of the previous year to ¥50,093 million, mainly due to rises inmerchandise and finished goods, as well as higher market prices for investment securities.
Liabilities increased by ¥272 million from the end of the previous year to ¥8,484 million, mainly due to increases
in deferred tax liabilities and other items, despite a decline in long-term borrowings payable within 12 months.
Net assets increased by ¥6,094 million to ¥41,609 million, mainly due to an increase in retained earnings andvaluation differences on other securities.
As a result, the equity ratio stood at 82.7% (80.8% at the end of the previous year).

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents at the end of the period under review increased by ¥193 million to ¥9,024 million
compared with the end of the previous year. The status of each cash flow and their factors during the year underreview are as follows.
(Unit: ¥million)
Previous period

Current period

Cash flows from operating activities

3,170

3,089

(81)

Cash flows from investing activities(1,290)(1,295)(5)

Cash flows from financing activities(1,457)(2,096)(638)

Effect of exchange rate changes on cash andcash equivalents

199

496

296

Net increase (decrease) in cash and cash
equivalents

622

193

(429)

Cash and cash equivalents at beginning of
year

8,208

8,830

622

Cash and cash equivalents at end of year

8,830

9,024

193

-3-

Variance(Cash flows from operating activities)
Net cash provided by operating activities amounted to ¥3,089 million (a decrease of ¥81 million compared tothe previous year). This was mainly due to income before income taxes and minority interests of ¥5,282 million.
(Cash flows from investing activities)
Net cash used in investing activities amounted to -¥1,295 million (a decrease of ¥5 million compared to theprevious year). This was mainly due to expenditure of ¥1,616 million on the acquisition of property, plant andequipment.
(Cash flows from financing activities)
Net cash used in financing activities amounted to -¥2,096 million (a decrease of ¥638 million compared tothe previous year). This was mainly due to dividend payments of ¥1,098 million by the parent company andrepayments of long-term loans payable of ¥964 million.

(4) Future Outlook
Looking ahead, the global economy is expected to continue to grow, albeit gradually. However, the outlook is still
uncertain as economic concerns are expected to remain, such as an economic slowdown in China, prolonged global
inflation, shifts in monetary policy in many countries and tensions in the Middle East.
In the dental industry, further growth is expected, particularly in digital dentistry and aesthetic/preventative fields
in developed markets. Furthermore, the global dental market is expected to grow significantly in future due toincreased demand for dental care as a result of economic growth and improved living standards in emerging markets.
Under these circumstances, the Group, under its management philosophy of "Contribution to dentistry throughinnovative business activities", is aiming to further increase its contribution to global dental care by achieving
consolidated sales of ¥50 billion and consolidated operating income of ¥7.5 billion, the way we should "aim to realize
our ideal state".
In our fifth medium-term management plan, covering a four-year period from April 2024, we will work on key
issues for the longer term and accelerate the speed of growth for the Company.

The outlook for the next financial year is as follows.
(Unit: ¥million, %)Result for thefinancial year
ending March
31, 2024

Outlook for thefinancial year
ending March 31,
2025

Net sales

35,08037,721

2,641

7.5

Operating income

4,709

4,800

90

1.9

Ordinary income

5,118

4,894

(224)

(4.4)

Net income
attributable toowners of parent

3,655

3,838

182

5.0

Main forex assumptions: ¥140/$, ¥150/€, ¥170/£ and ¥19/RMB.

-4-

Variance

Percentagechange(5) Basic policy on Profit distribution and Dividends for the Fiscal Year under Review and Upcoming Fiscal
year
The Company's basic policy is to maintain and continue stable dividends while aiming to increase corporate
value over the long term and return profits to shareholders, while at the same time strengthening themanagement base and improving the financial position of the Company. The company also intends to increaseinternal reserves to prepare for active business development in the future, such as investment in research anddevelopment to expand overseas business and develop new products, while strengthening the managementbase and improving the financial position.
As an indicator for the return of profits, as well as targeting a consolidated dividend payout of at least
30%, we also targeted a dividend on equity (DOE) ratio of 1.7% and provide a stable return through twiceannual dividends (interim and year-end payments).
The year-end dividend for the year under review is an ordinary dividend of ¥42 per share, which together
with the interim dividend of ¥20 per share already paid out, will bring the annual dividend to ¥62 per share.
With regard to an indicator for the return of profits from the next period, at a Board of Directors meetingon 1 May 2024, we decided to raise these targets to a consolidated dividend payout of at least 40% and a
DOE of at least 3.0% with the aim of enhancing shareholder returns.
Furthermore, in light of the low market liquidity (turnover volume and value) of our stock, Which adds tothe cost of capital in the form of a liquidity risk premium, we decided at the Board of Directors meeting on
1 May to implement a two-for-one stock split on 30 September 2024 with the aim of broadening theshareholder base, particularly individual shareholders by reducing the minimum investment.
The annual dividend for the next fiscal year is expected to be an interim dividend of ¥36 per share (prior
to the stock split) and a year-end dividend of ¥26 per share (after the split). The annual dividend (on a prestock split basis) is expected to be ¥88 per share.

2. Basic approach to the Selection of Accounting Standards
The Group's policy is to prepare its consolidated financial statements in accordance with Japanese GAAP for thetime being, considering the comparability of the consolidated financial statements between periods and between
companies.
It is the Company's policy to respond appropriately to the application of IFRS (International Financial ReportingStandards), considering various domestic and international circumstances.

-5-3. Consolidated Financial Statements and Primary Notes(1)Consolidated Balance Sheets（Millions of yen）
Fiscal year under review(as of March 31, 2024)

Previous fiscal year
(as of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes receivable-trade

9,578

9,716

220

222

Accounts receivable-trade

3,273

4,316

Merchandises and finished goods

5,854

7,312

Work in process
Raw materials and supplies
Other

1,413
1,124
775

1,741
1,237
648

Allowance for doubtful accounts

(19)

(15)

22,22025,17911,501

11,958

Accumulated depreciation(6,249)(6,705)

Buildings and structures, net

5,252

5,252

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net

5,077

5,462

(3,947)(4,132)

1,130

1,330

2,442

2,546

259

115

4,683

5,133

(3,772)(4,143)

910

989

9,995

10,234462

524

Investment securities

9,049

11,553

Deferred tax assets

148

158

1,316

1,875

538

574

Total property,plant and equipment
Intangible assets
Investments and other assets

Net defined benefit asset
Other
Allowance for doubtful accounts

(5)

(6)

Total investments and other assets

11,047

14,15521,506

24,91443,72750,093

Total non-current assets
Total assets-6-

（Millions of yen）
Fiscal year under review(as of March 31, 2024)

Previous fiscal year
(as of March 31, 2023)
Liabilities
Current liabilities
Accounts payable-trade

1,011

1,378

Current portion of long-term loans payable

907

281

Income taxes payable

780

880

Contract liabilities

675

Provision for directors' bonuses

64

63

Other

3,178

2,914

Total current liabilities

5,949

5,593

Long-term loans payable

281-

Deffered tax liabilities

1,150

2,023

207

228

Noncurrent liabilities

Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities

622

638

2,262

2,890

8,211

8,484

Net assets
Shareholders' equity
Capital stock

5,968

5,968

Capital surplus

6,142

6,134

Retained earnings

18,406

20,964

Treasury shares

(379)

(297)

Total shareholders' equity

30,13832,770

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,201

5,094

Foreign currency translation adjustment

1,348

2,620

Remeasurements of defined benefit plans

655

963

5,204

8,678

99

79

Total accumulated other comprehensive income
Subscription rights to shares

73

82

Total net assets

35,51541,609Total liabilities and net assets

43,72750,093

Non-controlling interests-7-(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Membership fee income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Membership fee
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Settlement income
Gain on recovery of remittance fraud at overseas subsidiary
Total extraordinary income
Extraordinary losses
Impairment loss
Total extraordinary losses
Net income before income taxes
Income taxes-current
Income taxes-defferred
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-8-

Previous fiscal year
(from April 1, 2022
to March 31, 2023)
31,678
12,97918,69914,874
3,824（Millions of yen）
Fiscal year under review(from April 1, 2023
to March 31, 2024)
35,08014,08420,995
16,286
4,709

43
155
178

66
185
225

9
114
153
654

136
221
834

18
181
41
240
4,238

22
291
7
104
425
5,118

59
112
171

285
52
337

4,410
1,344
(94)
1,250
3,160
24
3,135

173
173
5,282
1,698
(93)
1,604
3,677
21
3,655

Consolidated Statements of Comprehensive Income

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-9-

Previous fiscal year
(from April 1, 2022
to March 31, 2023)
3,160（Millions of yen）
Fiscal year under review(from April 1, 2023
to March 31, 2024)
3,677

(225)
636
13
424
3,584

1,893
1,277
308
3,479
7,157

3,558
26

7,130
27

(3) Consolidated Statements of Changes in Net Assets
Previous fiscal year (from April 1, 2022 to March 31, 2023)（Millions of yen）
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus Retained earnings

5,968

6,123

16,001

Cumulative effects of changes inaccounting policies
Restated balance

Treasury shares

Total shareholders'equity(115)

27,978

5,968

6,123

16,001(115)

27,978Changes of items during period
Dividends of surplus

(730)

(730)

Net income attributable to ownersof parent

3,135

3,135

Purchase of treasury shares
Disposal of treasury shares

19

Change in scope of consolidation

(322)

(322)

58

78

-

-

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

5,968

19

2,405

(264)

2,160

6,142

18,406(379)

30,138

Accumulated other comprehensive income
Total accumulated
Valuation
Subscription rights
Foreign currency Remeasurements
otherdifference on
to sharesof defined benefit
translation
comprehensive
available-for-saleplansadjustment
incomesecurities
Balance at beginning of current period

3,426

713

641

4,781

116

Noncontrollinginterests

Total net assets

64

32,940

Cumulative effects of changes inaccounting policies
Restated balance

3,426

713

641

4,781

116

64

32,940Changes of items during period
Dividends of surplus(730)

Net income attributable to ownersof parent

3,135

Purchase of treasury shares(322)

Disposal of treasury shares

78

Change in scope of consolidation
Net changes of items other thanshareholders' equity

(225)

634

13

422

(16)

8

414

Total changes of items during period

(225)

634

13

422

(16)

8

2,575

Balance at end of current period

3,201

1,348

655

5,204

99

73

35,515- 10 -

Fiscal year under review (from April 1, 2023 to March 31, 2024)（Millions of yen）
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus Retained earnings

5,958

6,142

18,406

Treasury shares

Total shareholders'equity(379)

30,138Changes of items during period
Dividends of surplus(1,098)(1,098)Net income attributable to ownersof parent

3,655

3,655

Purchase of treasury shares
Disposal of treasury shares

(8)

(1)

(1)

83

74

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

5,968

(8)

2,557

82

2,631

6,134

20,964(297)

32,770

Accumulated other comprehensive income
Total accumulated
Valuation
Subscription rights
Foreign currency Remeasurements
otherdifference on
to sharesof defined benefit
translation
comprehensive
available-for-saleplansadjustment
incomesecurities
Balance at beginning of current period

3,201

1,348

655

5,204

99

Noncontrollinginterests

Total net assets

73

35,515

Changes of items during period
Dividends of surplus(1,098)Net income attributable to ownersof parent

3,655

Purchase of treasury shares(1)

Disposal of treasury shares74

Net changes of items other thanshareholders' equity

1,893

1,272

308

3,474

(19)

Total changes of items during period

1,893

1,272

308

3,474

(19)

8

6,094

Balance at end of current period

5,094

2,620

963

8,678

79

82

41,609- 11 -

8

3,462

(4) Consolidated Statements of Cash Flows（Millions of yen）
Fiscal year under review(from April 1, 2023
to March 31, 2024)

Previous fiscal year
(from April 1, 2022
to March 31, 2023)
Net cash provided by (used in) operating activities
Net income before income taxes

4,410

5,282

971

1,168

Impairment loss-

173

Increase (decrease) in allowance for doubtful accounts

9(4)

Depreciation

Increase (decrease) in net defined benefit liability

(128)

(101)

Interest and dividend income

(198)

(251)

Interest expenses

18

22

Foreign exchange losses (gains)

(3)

(41)

Loss (gain) on sales of investment securities

(59)

(285)

(9)

7

(112)

-

Share of loss (profit) of entities accounted for using equity method
Settlement income
Gain on recovery of remittance fraud at overseas subsidiary

-

(52)

Decrease (increase) in notes and accounts receivable - trade

(114)

(834)

Decrease (increase) in inventories(572)(1,302)(3)

78

Increase (decrease) in notes and accounts payable - trade
Other, net

(188)

396

Subtotal

4,019

4,255

Interest and dividend income received

287

346

Interest expenses paid

(15)

(22)

Income taxes paid

(1,141)(1,584)

Settlement received

21

42

Recovery of remittance fraud at overseas subsidiary received

-

52

3,170

3,089

Payments into time deposits

(883)

(701)

Proceeds from withdrawal of time deposits

994

759

Purchase of property, plant and equipment(1,545)(1,616)

Net cash provided by (used in) operating activities
Cash flows from investing activities

Proceeds from sales of property, plant and equipment

5

3

(87)

(95)

Proceeds from sales of investment securities

233

405

Payments of loans receivable

(16)

(6)

Purchase of intangible assets

Collection of loans receivable

15

10

Other, net

(7)

(54)

(1,290)(1,295)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of lease obligations

(62)

(13)

Repayments of long-term loans payable

(325)

(964)

Decrease (increase) in treasury shares

(322)

(1)

Cash dividends paid

(730)

(1,098)Dividends paid to non-controlling interests

(17)

(18)

0

0

(1,457)(2,096)

Effect of exchange rate change on cash and cash equivalents

199

496

Net increase (decrease) in cash and cash equivalents

622

193

Cash and cash equivalents at beginning of period

8,208

8,830

Cash and cash equivalents at end of period

8,830

9,024

Proceeds from exercise of share options
Net cash provided by (used in) financing activities- 12 -

(5) Notes to Consolidated Financial Statements(Notes Relating to Assumptions for the Going Concern)
Not applicable.
(Segment Information, etc)
1. Overview of Reportable Segments
The Company's reportable segments are components of the Company for which separate financial statements areavailable and which are regularly reviewed by the Board of Directors to determine the allocation of management
resources and assess their performance.
The Group's operations comprise dental, nail care and other businesses (manufacturing and sales of industrial
materials and equipment), with each business unit formulating comprehensive domestic and international strategies
and developing business activities.
Accordingly, the Company has three reportable segments: “Dental Business”, “Nail Care Business” and “Other
Businesses”. The “Dental Business” is engaged in the manufacture, sale and repair services of materials andequipment related to dentistry, the “Nail Care Business” is engaged in the manufacture, sale and service of beautyand health equipment and cosmetics related to nails, and the “Other Businesses” is engaged in the manufacture andsale of industrial materials and equipment.
2. Methods used to calculate of sales, profit or loss, assets and other items by reportable segment
The accounting methods of the reported business segments are generally the same as those described in“Important considerations in the preparation of consolidated financial statements”.

- 13 -

3. Information regarding sales, profit or loss, assets and other items by reportable segment and decomposition of income
Previous financial year (April 1,2022 - March 31, 2023)(Unit: ¥million)
Reportable segment

Amountrecordedin
Adjustments consolidated(Note 1)
financialstatements(Note 2)

DentalBusiness

Nail Care
Business

Other
Businesses

Sub-total

29,2382,345

95

31,678-31,678

-

-

5

5

(5)

-

29,2382,345

100

31,684(5)

31,678Segment profits

3,719

93

5

3,818

6

3,824

Segment assets

35,454

1,841

101

37,397

6,329

43,727

931

37

3

971

-

971

9

-

-

9

-

9

2,734

-

-

2,734

-

2,734

2,258

59

2

2,319

-

2,319

Net sales
Sales to external customers
Inter-segment
Internal sales or transfers
Total

Other items
Depreciation expense
Share of profit(loss) of entities
accounted for using equity
methodInvestments
inentities
accounted for using the equity
methodIncrease in property, plant andequipment andIntangible fixed assets(Note 1) (1) The segment profit adjustment of ¥6 million is due to the elimination of inter-segment transactions.
(2) Adjustments to segment assets of ¥6,329 million include corporate assets that are not allocated to each segment
and mainly comprise surplus operating funds (cash and deposits) and long-term investment assets (investment
securities, etc.) of the Company.
2 Operating profit in the consolidated statement of income is adjusted to calculate segment profit.

(Unit: ¥million)

Japan
North America
America
EuropeReportable segment
DentalNail Care
Other
Business
Business
Businesses
13,594
1,335
95
and

Latin

Total
15,025

3,635

273

-

3,908

6,355

-

-

6,355

Asia
Revenue from contracts withcustomers
Other revenue

5,653

736

-

6,389

29,2382,345

95

31,678----

Sales to external customers (Note)

29,2382,345

95

31,678(Note) Sales to external customers are based on the location of the Company and its consolidated subsidiaries and areclassified by country or region.

- 14 -

Financial year under review (April 1, 2023 - March 31, 2024)(Unit: ¥million)
Reportable segment

Amountrecorded in
Adjustments consolidated(Note 1)
financialstatements(Note 2)

DentalBusiness

Nail Care
Business

Other
Businesses

Sub-total

32,6242,373

81

35,080-35,080

-

-

6

6

(6)

-

32,6242,373

87

35,086(6)35,080

Segment profits

4,685

5

12

4,703

6

4,709

Segment assets

39,2501,812

98

41,161

8,932

50,093

1,131

34

3

1,168

-

1,168

(7)

-

-

(7)

-

(7)

173

-

-

173

-

173

2,633

-

-

2,633

-

2,633

1,266

13

2

1,282

-

1,282

Net sales
Sales to external customers
Inter-segment
Internal sales or transfers
Plan

Other items
Depreciation expense
Share of profit(loss) of entities
accounted for using equity
methodImpairment loss
Investments
inentities
accounted for using the equity
methodIncrease in property, plant andequipment andintangible fixed assets(Note 1) (1) Adjustment of segment profit of ¥6 million is due to the elimination of inter-segment transactions.
(2) Adjustments to segment assets of ¥ 8,932 million include corporate assets that are not allocated to eachsegment and mainly comprise surplus operating funds (cash and deposits) and long-term investment assets(investment securities, etc.) of the Company.
2 Segment profit is adjusted for operating profit in the consolidated statement of income.
3 Due to the decision of Mertz Dental GmbH to discontinue the development of some of its manufacturing
facilities, the book value of these assets was reduced to the recoverable amount, and the amount of the
reduction was recorded as impairment loss of 173 million yen under extraordinary losses.
(Unit: ¥million)

Japan
North America
America
EuropeReportable segment
DentalNail Care
Other
Businesses
Business
Businesses
14,138
1,367
81
and

Latin

Total
15,588

4,023

218

-

4,241

7,492

-

-

7,492

Asian
Revenue from contracts withcustomers
Other revenue

6,970

787

-

7,758

32,6242,373

81

35,080----

Sales to external customers

32,6242,373

81

35,080(Note) Sales to external customers are based on the location of the Company and its consolidated subsidiaries and areclassified by country or region.

- 15 -

(Per share information)
Previous financial year
(April 1, 2022 March 31, 2023)
Net assets per share

Financial year under review(April 1, 2023 March 31, 2024)¥1,996.64¥2,336.04

Net income per share for the year

¥176.10¥206.18

Fully diluted net income per share¥175.13¥205.25(The basis for calculating net income per share and fully diluted net income per share is as follows.
Previous financial year Financial year under review(April 1, 2022 (April 1, 2023 March 31, 2023)
March 31, 2024)
Net income per share for the year
Net income for the year attributable to owners of parent(¥million)
Amounts not attributable to ordinary shareholders(¥million)
Net income attributable to owners of parent common
stock(¥million)
Average number of common shares during the year
(thousand shares)
Fully diluted net income per share
Adjustment to net income attributable to owners ofparent (¥million)
Increase in the number of common shares (thousand
shares)Summary of potential shares not included in thecalculation of fully diluted net income per share as they
have no dilutive effect.

3,135

3,655

-

-

3,135

3,655

17,805

17,731

-

-

98

80

-

-

2.The basis for the calculation of net assets per share is as follows.
Previous financial year Financial year under review(As of March 31, 2023)(As of March 31, 2024)
Total net assets (¥million)
Amounts deducted from total net assets (¥million)
Net assets at the end of the year relating to common shares(¥million)
Number of common shares at the end of the year used in
the calculation of net assets per share (thousands of shares)

35,51541,609172

161

35,342

41,44817,701

17,742(Significant subsequent events)
Stock split
SHOFU INC. (the “Company”) hereby announces that its Board of Directors has resolved at its meeting held on
May 1, 2024 to undertake a stock split and a partial amendment to its Articles of Incorporation following the stock
split.
1. Purpose of stock split
By undertaking the stock split to lower the price of share-trading units, we intend to make shares more affordable
for investors, with a view to improving the liquidity of the Company’s stock and expanding its shareholder base.

2. Details of stock split(1) Method of stock split- 16 -

The record date of the stock split will be September 30, 2024. Each share of common stock owned by ashareholder whose name appears or is recorded in the shareholder registry as of the end of the record date, will be
split for two shares.
(2) Increase in the number of shares from the stock split
Total number of shares issued before the stock split
Increase in the issued shares resulting from the stock split
Total number of shares issued after the stock split
Total number of shares authorized after the stock split(3) Schedule
Public notice date of record date
Record date
Effective date

17,894,089 shares
17,894,089 shares
35,788,178 shares
128,000,000 shares

Friday, September 13, 2024 (scheduled)
Monday, September 30, 2024
Tuesday, October 1, 2024

3. Effects on per share information
Per share information, assuming that the stock split had been conducted at the beginning of the previous
consolidated fiscal year, is as follows.

Net assets per share
Net income per share for the year
Fully diluted net income per share

Previous financial year
(April 1, 2022 –March 31, 2023)¥ 998.32¥ 88.05¥ 87.56

Financial year under review(April 1, 2023 –March 31, 2024)¥ 1,168.02¥ 103.09¥ 102.63

4. Partial Amendment to the Articles of Incorporation(1) Reason for Amendment
In conjunction with the stock spilt, the Company will amend the total number of shares authorized to be issued
in its Articles of Incorportation with an effective date of October 1, 2024, pursuant to the provisions of Article 184,
Paragraph 2 of the Companies Act of Japan.
(2) Details of Amendment
The details of the amendment are as follows
Current Articles of Incorporation(Total Number of Shares Authorized) Article 6. The
total number of shares authorized shall be
64,000,000.
(3) Schedule of the Amendment
Date of Resolution by the Board of Directors
Effective date

Amendment(Total Number of Shares Authorized) Article 6. The
total number of shares authorized shall be
128,000,000.

Wednesday, May 1, 2024
Tuesday, October 1, 2024

5. Others(1) Amount of share capital
There will be no change in the amount of share capital as a result of the stock spilt.
(2) Dividends
As the stock split will take effect on October 1, 2024, the year-end dividend for the fiscal year ending March 31,
2024 which has a dividend record date of September 30, 2024, will be paid based on the shares before the stock
split.

- 17 -

(3) Shareholder special benefit
The company has the following shareholder benefit plans, which will not change because of the stock split.
In-house product offerings

Eligible shareholders: Shareholders holding one unit
(100 shares) or more as recorded in the shareholders’register as of March 31 of each year
Eligible shareholders: All shareholders recorded in theshareholders’ register as of March 31 every year
Eligible shareholders: All shareholders recorded in theshareholders’ register as of September 30 every year

Sales of In-house products at preferential prices
Sales of nail care products at preferential prices- 18 -