Consolidated Financial Results for the First Quarter in the Fiscal Year Ending March 31, 2025
(Japanese Accounting Standards)
August 2, 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 commencement date of dividend payment:―
Supplementary documents for quarterly financial results: Yes
Quarterly financial results briefing:
None(All amounts are rounded down to the nearest million yen)
1．Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2025(April 1, 2024 – June 30,2024)(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

％

9,457

14.4

1,550

35.5

1,812

32.6

1,120

63.2

8,265

2.1

1,144

(6.9)

1,367

(16.0)

686(40.0)

Three months ended
June 30, 2024
Three months ended
June 30, 2023

(Note) Comprehensive income:Three Months ended June 30, 2024 1,213 million yen （-42.3％）
Three Months ended June 30, 2023 2,103 million yen （20.6％）
First Quarter
Net income (loss)
per shareFirst Quarter
Fully diluted
net income (loss) per share

Yen

Yen

63.12

62.85

38.77

38.57

Three months ended
June 30, 2024
Three months ended
June 30, 2023

(2) Consolidated Financial Position
Total assets

Three months ended
June 30, 2024
Year ended
March 31, 2024

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen％

Yen

50,57842,06082.9

2,360.82

50,093

41,60982.7

2,336.04(Reference) Shareholder’s equity: Three Months ended June 30, 2024
Year ended March 31, 2024

41,926 million yen
41,448 million yen

2．Dividends
End offirst quarter

Dividends per share
End of
End ofYear-end
second quarter third quarter

Yen

Yen

Year ended March 31, 2024

―

20.00

Year ended March 31, 2025―

Year ending March 31, 2025
(Forecasts)

36.00

Yen

-

Annual

Yen

Yen

42.00

62.00

26.00

―

(Notes) Revision to the dividend forecast during the current quarter: None
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 is88.00 yen per share.

3．Consolidated Forecasts for the 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
(cumulative)
Year ending
March 31, 2025

Operating income

Net income
attributable to
Owners of parent

Ordinary income

Net income
per share

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

Yen

18,996

15.5

2,921

35.6

3,189

33.6

2,598

66.7

146.3838,395

9.4

5,293

12.4

5,604

9.5

4,434

21.3

170.87(Notes) Revision during the current quarter to the earnings forecasts: Yes
The consolidated earnings forecast announced on 9 May 2024 has been revised. Please refer to the Notice
regarding revision of earnings forecast published today.
Furthermore, the impact of the stock split (each common share will be subject to a 1-for-2 split, effective 1
October 2024) has been factored into the net income per share forecasts for the full year consolidated forecasts.
Net income per share on a pre-stock split basis would be 249.74 yen.
*Notes(1) Changes in significant subsidiaries during the period (change in scope of consolidation):
Yes
Number of new companies 1 (their names): SHOFU PRODUCTS CHANGZHOU CO.,LTD,
Number of excluded companies ― (their names):―(2) Adoption of accounting methods specific to the preparation of quarterly financial statements:

Yes(3) Changes in accounting principles, procedures, or indication methods:(a) Changes in accounting standards: None(b) Changes other than (a) above:Yes(c) Changes in accounting estimates: Yes(d) Retrospective restatements:
None(Notes) For details, please refer to page 8 “2. Quarterly Consolidated Financial Statement and Major Notes (3) Notes to
Quarterly Consolidated Financial Statements (Changes in accounting policies that are difficult to distinguish fromchanges in accounting-based estimates)(4) Number of shares outstanding (common stock)(a) Number of shares outstanding at end of period (including treasury stock).
As of June 30, 2024:
17,894,089 shares
As of March 31, 2024:
17,894,089 shares(b) Number of shares of treasury stock at end of period
As of June 30, 2024:
134,584 shares
As of March 31, 2024:
151,114 shares(c) Average number of shares during the period
As of June 30, 2024:
17,747,057 shares
As of June 30, 2023:
17,705,857 shares* Review by a certified public accountant or audit firm of the attached quarterly consolidated financial forecasts: None
*Explanation concerning the appropriate use of business forecasts, and other special items
The forecasts and other statements regarding the future included in this report are based on currently available informationand certain assumptions. Actual results may differ from forecasts for a variety of reasons. With respect to the preconditions
for the forecasts, please refer to the “Explanation of Future Forecast Information including Consolidated Business Results
Forecasts” section on page 3.

Accompanying Materials－Contents
1．Summary of Operating Results ...............................................................................................................................................2(1) Summary of Consolidated Operating Results for the Quarterly Period .....................................................................2(2) Summary of Consolidated Financial Position for the Quarterly Period ..................................................................... 3(3) Explanation of Future Forecast Information including Consolidated Business Results Forecasts ...............................3
2．Quarterly Consolidated Financial Statements and Primary Notes.........................................................................................4(1) Quarterly Consolidated Balance Sheets ..................................................................................................................4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................................. 6
Quarterly Consolidated Statements of Income .......................................................................................................................6
During the first quarter of the consolidated fiscal year........................................................................................................6
Quarterly Consolidated Comprehensive Income....................................................................................................................7
During the first quarter of the consolidated fiscal year........................................................................................................7(3) Notes to Quarterly Consolidated Financial Statements ............................................................................................8(Notes to Changes in Accounting Policies) ................................................................................................................8(Notes to Application of Accounting Procedures Specific to the Compilation of Quarterly Consolidated Financial
Statements) .............................................................................................................................................................. 8(Notes to Segment Information,etc) .........................................................................................................................8(Notes to Significant Changes in the Amounts of Shareholders’ Equity)............................................................................10(Notes to Assumptions for the Going Concern) ........................................................................................................ 10(Notes on Consolidated Statements of Cash Flows) ............................................................................................................10

1

1. Summary of Operating Results(1) Summary of Consolidated Operating Results for the Quarterly Period
During the first quarter of the consolidated fiscal year under review, the global economy showed signs of recovery,
but the outlook remained uncertain due to factors such as concerns about accelerating global inflation, continued tightmonetary policies in the U.S. and Europe, and concerns about a downturn in the economy caused by risinggeopolitical risks. The domestic economy also showed a moderate recovery trend against the backdrop of improved
employment and income levels, but the outlook remained uncertain in light of downside risks in the global economy
and inflation.
Our management philosophy outlines our intention to make a “Contribution to dentistry through innovative
business activities,” and our group aims to achieve consolidated net sales of ¥50 billion and consolidated operating
income of ¥7.5 billion in order to further increase our contribution to global dental care. Our fifth medium-term
management plan started in April 2024 and marks the final four-year plan to achieve these goals, and we are working
to address key issues for the medium- to long-term.
We posted net sales of ¥9,457 million for the first quarter under review, an increase of ¥1,192 million (14.4%)
from the corresponding period of the previous consolidated fiscal year. Overseas sales, which are included in net sales,
increased by ¥961 million (20.2%) to ¥5,719 million (60.5% of net sales).
Operating income increased ¥405 million (35.5%) year-on-year to ¥1,550 million, despite an increase in selling,
general and administrative expenses associated with the higher sales.
Ordinary income increased by ¥445 million (32.6%) year-on-year to ¥1,812 million, thanks to foreign exchange
gains.
Net income attributable to owners of the parent after subtracting tax expenses was ¥1,120 million, an increase of¥433 million (63.2%) year-on-year.
(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) and SHOFU BLOCK PEEK (resin material for dental cutting/machining). Overseas sales
increased year-on-year due to solid sales growth in existing products, especially in the U.S. and Asian regions
including China, as well as the effect of forex fluctuations.
As a result, net sales for the first quarter under review increased by ¥1,222 million (16.0%) year-on-year to ¥8,862
million and operating income increased by ¥467 million (42.0%) to ¥1,579 million, despite an increase in selling,
general and administrative expenses.
(Nail Care Business)
Nail care products which have been selling well in Taiwan were launched in Japan, contributing to sales in Japan,
but sales decline in mainstay gel nail products, resulting in a year-on-year sales decrease. Overseas, sales to
consumers remained strong in Taiwan, but in the U.S., consumption continued to decline due to inflation, resulting ina year-on-year decline in overall overseas sales.
As a result, net sales for the first quarter of the current fiscal year totaled ¥572 million, down ¥36 million (6.1%)
year-on-year. Profits were down ¥62 million year-on-year to an operating loss of ¥33 million, due to an increase in
selling, general and administrative expenses.
(Other Businesses)
SHOFU PRODUCTS KYOTO INC., a Group company, uses its dental abrasives manufacturing technology to
manufacture and sell industrial abrasives. Net sales in the other businesses segment for the first quarter under review
increased by ¥6 million (38.6%) year-on-year to ¥23 million and operating income was ¥3 million, a year-on-yearincrease of ¥0.4 million (13.3%).

2

(2) Summary of Consolidated Financial Position for the Quarterly Period
Total assets at the end of the first quarter under review increased by ¥484 million year-on-year to ¥50,578 million.
This was primarily due to increase in notes and accounts receivable-trade and merchandise and finished goods.
Liabilities increased by ¥33 million to ¥8,517 million. This was primarily due to increase in non-current liabilities
such as accrued expenses.
Net assets increased by ¥450 million to ¥42,060 million. This was primarily due to increase in retained earnings
and foreign currency translation adjustment.
As a result of the above, the capital-to-assets ratio rose to 82.9%, an increase of 0.2 points from the end of theprevious consolidated fiscal year.
(3) Explanation of Future Forecast Information including Consolidated Earnings Forecasts
Based on the consolidated business results for the first quarter of the current fiscal year, we have revised ourconsolidated financial forecast for the second quarter of the fiscal year ending March 2025 and for the full year of the
fiscal year ending March 2025, which were announced on May 9, 2024.
For details, please refer to the “Notice regarding revision of financial forecast” released today.

32. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets（Millions of yen）
End of First Quarter of
FYE3/25(as of June 30, 2024)

Previous fiscal year
(as of March 31, 2024)
AssetsCurrent assets
Cash and deposits

9,716

9,394

Notes and accounts receivable-trade

4,539

4,677

Merchandises and finished goods

7,312

8,240

Work in process
Raw materials and supplies
Other

1,741
1,237
648

1,769
1,329
768

Allowance for doubtful accounts
Total current assets

-15

-38

25,17926,142

11,95812,148-6,705-6,768Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net

5,252

5,379

13,25813,557

Accumulated depreciation-8,276-8,482Other, net

4,981

5,074

10,234

10,454524

548

Investment securities

11,553

10,838Net defined benefit asset

1,875

1,874

Other

733

725

Allowance for doubtful accounts

-6

-5

Other

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

Total investments and other assets
Total non-current assets
Total assets

4

14,155

13,43324,91424,43550,09350,578（Millions of yen）
End of First Quarter of
FYE3/25(as of June 30, 2024)

Previous fiscal year
(as of March 31,2024)
Liabilities
Current liabilities
Accounts payable-trade
Short-term loans payable

1,378

1,186

-

300

Current portion of long-term loans payable

281

200

Income taxes payable

880

927

Contract liabilities

75

133

Provision for directors' bonuses

63

19

Other

2,914

3,224

Total current liabilities

5,593

5,990

228

229

Other

2,661

2,297

Total non-current liabilities

2,890

2,527

8,484

8,517

5,968

5,968

Non-current liabilities
Net defined benefit liability

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

6,134

6,119

Retained earnings

20,964

21,339Treasury shares
Total shareholders' equity

-297

-265

32,77033,162

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

5,094

4,431

Foreign currency translation adjustment

2,620

3,397

Remeasurements of defined benefit plans

963

935

8,678

8,764

Subscription rights to shares

79

61

Non-controlling interests

82

71

Total net assets

41,60942,060Total liabilities and net assets

50,09350,578

Total accumulated other comprehensive income5(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly 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
Membership fee income
Share of profit of entities accounted for using equity method
Foreign exchange gains
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
Net income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

6

First Quarter of FYE 3/24
(April 1, 2023
to June 30, 2023)
8,265
3,322
4,942
3,797
1,144

（Millions of yen）
First Quarter of FYE 3/25
(April 1, 2024
to June 30, 2024)
9,457
3,766
5,690
4,140
1,550

10
86
51
178
62
389

18
84
54
3
193
79
434

6
129
17
14
167
1,367
1,367
671
695
8
686

1
148
22
172
1,812
1,812
688
1,123
3
1,120

Quarterly Consolidated Statements of Comprehensive Income

ProfitOther 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

7

First Quarter of FYE3/24(April 1, 2023
to June 30, 2023)
695（Millions of yen）
First Quarter of FYE3/25(April 1, 2024
to June 30, 2024)
1,123

588
840
-21
1,407
2,103

-662
780
-27
90
1,213

2,089
13

1,206
7

(3) Notes to Quarterly Consolidated Financial Statements(Notes to Changes in Accounting Policies)(Changes in accounting policies that are difficult to distinguish from changes in accounting-based estimates)(Changes to depreciation methodology for property, plant and equipment)
In the past, the Company and its domestic consolidated subsidiaries mainly used the declining balance methodfor depreciation of property, plant and equipment (excluding leased assets, although the straight-line method
was used for depreciation of building fixtures and structures acquired from April 1 2016) but from the firstquarter of this fiscal year, the method of depreciation was changed to the straight-line method.
While maintaining and enhancing the foundation of the domestic business, the Group is shifting the allocationof management resources to overseas, expanding the size of the overseas business and promoting a more global
management. As part of this strategy, in the new Fifth Medium-Term Management Plan (covering the period
from the fiscal year ending March 2025 through fiscal year ending March 2028), the Company plans toreallocate its production bases, including those overseas. When considering the depreciation method forproperty, plant and equipment at this time, we decided that adopting the straight-line method for depreciation ofproperty, plant and equipment is appropriate from a perspective of cost allocation and better reflects the
economic situation. This is because the production and operations of property, plant and equipment are likely to
be stable over the long-term and the effects of any investment will be seen on an average basis by optimizing
the entire production system of the entire Group. As a result of this change, operating income, ordinary
income and net income before income tax for the first quarter of this fiscal year all increased by ¥33 million
compared to the previous method.
(Notes to Application of Accounting Procedures Specific to the Compilation of Quarterly Consolidated Financial
Statements)(Calculation of tax expenses)
To calculate tax expenses, we made a reasonable estimate of the effective tax rate after the application of tax
effect accounting to net income before income taxes for the current consolidated fiscal year and then multiplied
the net income before income taxes for the quarter under review by the estimated effective tax rate. However,where use of the estimated effective tax rate to calculate tax expenses would result in an unreasonable figure,
we have used the legal effective tax rate instead.
(Notes to Segment Information, etc)
1． Information regarding sales, gains (losses) by reportable segment and revenue decomposition information
For the three months ended June 30, 2023 (From April 1, 2023 to June 30, 2023)(Millions of yen)
Consolidated
Adjustment
financial*1statements*2

Reportable segments
DentalBusiness

Nail Care
Business

Other
Businesses

Total

7,639

609

16

8,265

-

8,265

-

-

1

1

(1)

-

Total

7,639

609

18

8,266

(1)

8,265

Segment income

1,112

28

3

1,143

1

1,144

Net sales
Sales to external customers
Internal sales or transfers*1. The ¥1 million adjustment to segment income serves to cancel out transactions between segments.
*2. Segment income equals the operating income on quarterly consolidated financial statements.

8

(Millions of yen)
Reportable segments

Japan
North and Latin America
EuropeAsia
Revenue from contracts with customers

DentalBusiness
3,324
909
1,860
1,545

Nail Care
Business
358
59
190

Other
Businesses
16
-

7,639

609

16

-

Other revenue

-

7,639

Sales to external customers

Total
3,700
969
1,860
1,735
8,265

-

609

-

16

8,265

(Note) Sales to external customers are divided into countries and regions according to the location of the Company
and its consolidated subsidiaries.
For the three months ended June 30, 2024 (From April 1, 2024 to June 30, 2024)(Millions of yen)
Consolidated
Adjustment
financial*1statements*2

Reportable segments
DentalBusiness

Nail Care
Business

Other
Businesses

Total

8,862

572

23

9,457

-

9,457

1

1

(1)

-

Net sales
Sales to external customers
Internal sales or transfers

-

-

Total

8,862

572

24

9,458

(1)

9,457

Segment income

1,579

(33)

3

1,549

1

1,550

*1. The ¥1 million adjustment to segment profit serves to cancel out transactions between segments.
*2. Segment income equals the operating income on quarterly consolidated financial statements.
(Millions of yen)
Reportable segments

Japan
North and Latin America
EuropeAsia
Revenue from contracts with customers

DentalBusiness
3,587
1,192
2,160
1,921

Nail Care
Business
333
44
193

Other
Businesses
23
-

8,862

572

23

Sales to external customers--

Other revenue
8,862

572

Total
3,944
1,237
2,160
2,115
9,457

23

9,457

(Note) Sales to external customers are divided into countries and regions according to the location of the Company
and its consolidated subsidiaries.

92.

Changes to reportable segments（Change to depreciation method for property, plant and equipment）
As stated in the section on changes in accounting policies that are difficult to distinguish from changes inaccounting-based estimates, the declining balance method was mainly used by the Company and its domestic
consolidated subsidiaries for depreciation of property, plant and equipment (excluding lease assets) in the past,
but the depreciation method was changed to the straight-line method from the first quarter of this fiscal year.
As a result, compared to the previous method, segment income in the first quarter of this fiscal year increasedby ¥32 million in the Dental Business, ¥0 million in the Nail Care Business and ¥0 million in Other Businesses.

(Notes to Significant Changes in the Amounts of Shareholders’ Equity)
Not applicable.
(Notes to Assumptions for the Going Concern)
Not applicable.
(Notes on Consolidated Statements of Cash Flows)
No quarterly consolidated statement of cash flows has been prepared for the first quarter of this fiscal year.
Depreciation and amortization (including depreciation and amortization of intangible assets) for the first quarteris as follows
First Quarter of FYE 3/24
(April 1, 2023
to June 30, 2023)

First Quarter of FYE 3/25
(April 1, 2024
to June 30, 2024)

255 million yen

233 million yen

Depreciation and amortization

10