Note: This document has been translated from a part of the Japanese original as submitted to the Tokyo Stock Exchange forreference purposes only. In the event of any discrepancy, the original release in Japanese shall prevail.

February 13, 2024

Consolidated Financial Results
for the Six Months Ended December 31, 2023
(under Japanese GAAP)
Company name:
SUNNY SIDE UP GROUP Inc.
Listing:
Tokyo Stock Exchange
Securities code:
2180
URL:
https://ssug.co.jp
Representative:
Etsuko Tsugihara, President
Inquiries:
Atsuya Otake, Executive Officer, General Manager of Corporate Management
TEL:+81-3-6894-3233
Scheduled date to file Quarterly Securities Report:
February 14, 2024
Scheduled date to commence dividend payments:
March 11, 2024
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (for individual investors)(Figures shown are rounded down to the nearest million yen)

1. Consolidated financial results for the first six months of the fiscal year ending June 30, 2024
(from July 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended
December 31, 2023
December 31, 2022

Operating profit

Millions of yen% Millions of yen

9,179
10,828(Note) Comprehensive income(15.2)
24.3% Millions of yen

997
851

17.1
74.7

1,004
891

% Millions of yen

12.7
(0.9)

Yen

40.16
–

(2) Consolidated financial position
Total assets
As ofDecember 31, 2023
June 30, 2023

Net assets

Equity ratio

Millions of yen

Millions of yen

%

9,916
8,595

4,024
3,728

39.0
41.4

(Reference) Equity
As of December 31, 2023
As of June 30, 2023

¥3,863 million¥3,561 million-1-601520¥525 million [(5.2)%]¥554 million [1.7%]

Diluted earnings per
share

Yen

40.29
34.86

Profit attributable toowners of parent

Ordinary profit

For the six months ended December 31, 2023
For the six months ended December 31, 2022

Basic earnings per
share
Six months ended
December 31, 2023
December 31, 2022

(Percentages show year-on-year changes)

%

15.5
(1.6)

2. Dividends
Annual dividends
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

YenYenYen

Yen

Fiscal year ended
June 30, 2023
Fiscal year ending
June 30, 2024

–

0.00

–

5.00

Fiscal year ending
June 30, 2024 (Forecast)

TotalYen–

15.00

15.00

–

15.00

20.00

(Note) Revisions to the dividends forecasts most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending June 30, 2024 (from July 1, 2023 toJune 30, 2024)
Net sales

Fiscal year ending
June 30, 2024

(Percentages show year-on-year changes)
Basic
Profit attributable toOrdinary profit
earnings perowners of parentshare

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

21,000

10.8

1,560

20.3

1,540

15.3

930

5.1

62.35

(Note) Revisions to the earnings forecasts most recently announced: None-2-* Notes(1) Changes in significant subsidiaries during the six months ended December 31, 2023 (changes in
specified subsidiaries resulting in the change in scope of consolidation): None
(2) Application of specific accounting for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023
As of June 30, 2023

15,197,400 shares
15,191,600 sharesb. Number of treasury shares at the end of the period
As of December 31, 2023
As of June 30, 2023

277,456 shares
277,456 sharesc. Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Six months ended December 31, 2023
Six months ended December 31, 2022

14,915,367 shares
14,927,361 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public

accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, any statements herein do not constitute assurances regarding actual results by theCompany. Actual business and other results may differ substantially due to various factors.
(Means of access to supplementary material on quarterly financial results)
The supplementary material on quarterly financial results will be available on the Company’s website on
Tuesday, February 13, 2024.
(Financial results presentation meeting)
The Company is scheduled to hold a financial results presentation meeting for individual investors on
Saturday, February 17, 2024.

-3-Quarterly Consolidated Financial Statements(1) Consolidated balance sheet(Thousands of yen)
As of June 30, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Costs on service contracts in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Other, netTotal property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Asset retirement obligationsOther
Total non-current liabilities
Total liabilities-4-

As of December 31, 2023

3,089,935
22,0932,620,516
4,573
551,986
25,083
314,635(6,243)6,622,581

2,418,919
1,827
4,328,056
6,476
893,400
32,949462,747(11,151)
8,133,225

362,309362,309424,949
424,949

276,121
24,231
300,352

255,411
26,122
281,534

1,355,869(45,713)
1,310,155
1,972,817
8,595,398

1,133,787(57,063)
1,076,723
1,783,207
9,916,433

1,989,016
586,000
181,491
181,173–

3,515,020
506,000
135,192
300,964
111,000

153,255–

212,403797,646
4,100,987

294,005
330,558
5,192,741

411,109
99,107
255,919
766,136
4,867,123

351,257
99,744
248,145
699,148
5,891,889

(Thousands of yen)
As of June 30, 2023
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of December 31, 2023

547,764
696,127
2,247,658(130,456)
3,361,094

550,458
698,8212,625,015(130,456)
3,743,839

222,920164(22,960)
200,124
143,559
23,496
3,728,275
8,595,398

143,390(1,440)(22,590)
119,359
132,874
28,4694,024,543
9,916,433

(2) Consolidated statement of income (cumulative)(Thousands of yen)Six months ended
December 31, 2022
Net sales
Cost of sales
Gross profitSelling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Outsourcing service income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Distributions of profit or loss on silent partnerships
Customs duties for prior periods
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of investments in capital of subsidiaries
Loss on valuation of investments in capital
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-

Six months ended
December 31, 2023

10,828,107
8,664,660
2,163,447
1,311,548
851,899

9,179,480
6,931,795
2,247,685
1,249,959
997,72671
441–
10,07259,706
7,979
78,271

83–
17,487
9,999
–
5,934
33,505

4,775

2,883

8,757

2,221

15,976–––
9,527
39,036891,134

–
2,388
9,535
8,500
1,403
26,933
1,004,297

1,636
–
–
1,636

35
37,88012,28850,203

029,342
34,519–63,862828,908
317,095
511,813(8,611)
520,425––
101,171
2,014
103,185
951,315345,273
606,0424,973
601,069

(3) Consolidated statement of cash flows(Thousands of yen)Six months ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Amortization of goodwill
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Subsidy income
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale of investments in capital ofsubsidiaries
Outsourcing service income
Gain on sale of non-current assets
Loss on retirement of non-current assets
Share-based payment expenses
Loss (gain) on sale of shares of subsidiaries
Loss on valuation of investments in capital
Distributions of loss (profit) on silent partnerships
Loss (gain) on valuation of investment securities
Loss on transfer of receivables
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - otherIncrease (decrease) in accrued consumption taxes
Increase (decrease) in contract liabilities
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Proceeds from outsourcing service income
Subsidies received
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities-7-

Six months ended
December 31, 2023

828,908
39,566(16,834)
20,709951,315
47,815
16,25820,709(129,071)(153,255)

168,000(513)
4,775(9,278)(59,706)

111,000(83)
2,883(12,036)
–

8,757

2,221

29,342–(10,072)(1,636)
025,688–34,5194,117–
421–(2,140,043)(199,654)(821,325)
97,667
1,733,700(145,141)(46,912)760,435(232,844)(56,423)138(5,709)10,07259,706(460,981)
21,768(431,427)(9,999)
(35)
–
2,717
(37,880)
101,171
2,388
2,014
–
(12,288)(1,770,849)(351,410)(220,485)
17,434
1,578,271(42,841)(124,688)
81,601(258,062)(56,115)83(2,974)
9,999–(181,115)
48,479(181,642)

(Thousands of yen)Six months ended
December 31, 2022
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for investments in capital
Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from share of profits on investments in capital
Proceeds from collection of loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guaranteedeposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paid
Repayments of lease liabilities
Purchase of treasury shares
Proceeds from issuance of share acquisition rights
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-

Six months ended
December 31, 2023

(43,484)
1,636(12,668)(26,500)(82,067)35(12,575)(10,010)(33,617)(10,746)–934(5,398)

4,247
934
–

323

73

(118,774)(110,109)

1,314,295(234,990)(179,980)(1,834)(100,007)–(64,159)(106,150)(222,749)(2,830)
–
277

–

3,996

797,481(391,616)

11,12812,351

258,4093,214,372
3,472,782(671,016)
3,074,135
2,403,119