Note: This document is a translation of the original Japanese document and is only for reference purposes. In the event ofany discrepancy between this translated document and the Japanese original, the latter shall prevail.

Consolidated Financial Results for the First Six Months of
the Fiscal Year Ending February 29, 2024
(under Japanese GAAP)
October 10, 2023
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
TEL:

LIFE CORPORATIONTokyo Stock Exchange8194
http://www.lifecorp.jp/
Takaharu Iwasaki, Representative Director and President
Kazuo Kaneko, Executive Officer, Deputy Division COO, Corporate Finance andAccounting Division, and General Manager, Investor Relations Department+81-3-5807-5111 (from overseas)

Scheduled date to file Quarterly Securities Report:
October 13, 2023
Scheduled date to commence dividend payments:
November 1, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors andanalysts)

1.

(Amounts less than one million yen are rounded down.)
Consolidated financial results for the first six months of the fiscal year ending February 29, 2024
(from March 1, 2023 to August 31, 2023)(1) Consolidated operating results (cumulative)
Operating revenue(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Six months ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

August 31, 2023

400,148

6.0

12,41039.2

12,851

37.7

8,534

33.1

August 31, 2022
377,563
Note: Comprehensive income
Six months ended August 31, 2023:
Six months ended August 31, 2022:

–

8,914

(41.6)

9,331(40.2)

6,412(40.5)¥8,580 million [32.7%]¥6,468 million [(39.2)%]

Reference: Operating revenue is the total of net sales and receipts from operating revenue.
Net sales
Six months ended August 31, 2023:
Six months ended August 31, 2022:¥385,663 million [5.9%]¥364,251 million [–%]

Receipts from operating revenue
Six months ended August 31, 2023:
Six months ended August 31, 2022:¥14,484 million [8.8%]¥13,311 million [–%]

Earnings per share

Diluted earnings per share

Six months ended

Yen

Yen

August 31, 2023

181.87August 31, 2022
136.83
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from the beginningof the first quarter of the fiscal year ended February 28, 2023. Figures for the six months ended August 31, 2022 represent theamounts after applying the said accounting standard, etc., and do not include year-on-year changes for operating revenue.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

August 31, 2023

279,673

128,94546.1

2,747.53

February 28, 2023

280,810122,00243.4

2,599.79

Reference: Equity
As of August 31, 2023:
As of February 28, 2023:

2.

¥128,945 million¥122,002 million

Cash dividends
Annual dividends
First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended
February 28, 2023



35.00



35.00

70.00

Fiscal year ending
February 29, 2024



40.00



40.00

80.00

Fiscal year ending
February 29, 2024
(Forecast)
Note:

3.

Revisions to the forecast of cash dividends most recently announced: None

Consolidated earnings forecasts for the fiscal year ending February 29, 2024
(from March 1, 2023 to February 29, 2024)(Percentages indicate year-on-year changes.)
Operating revenue

Fiscal year ending
February 29, 2024
Note:

Operating profit

Profit attributable toowners of parent

Ordinary profit

Earnings per
share

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

801,000

4.6

19,8003.4

20,5002.4

13,5001.3

288.02

Revisions to the consolidated earnings forecasts most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of special accounting treatment to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements
i. Changes in accounting policies due to revisions to accounting standards and other regulations: None
ii. Changes in accounting policies due to other reasons: Noneiii. Changes in accounting estimates: Yes
iv. Restatement: None
Note: For details, please refer to 2. Quarterly consolidated financial statements and significant notes
thereto, (4) Notes to quarterly consolidated financial statements, “Changes in accounting estimates”
on page 10 of the attached material.
(4) Number of issued shares (ordinary shares)
i. Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2023
49,450,800 shares
As of February 28, 2023
49,450,800 shares
ii. Number of treasury shares at the end of the period
As of August 31, 2023
2,519,389 shares
As of February 28, 2023
2,522,786 sharesiii. Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2023
46,929,037 shares
Six months ended August 31, 2022
46,869,043 shares
Note: The number of treasury shares at the end of the period includes the Company’s shares (80,500 shares
as of August 31, 2023, and 84,300 shares as of February 28, 2023) held by Custody Bank of Japan,
Ltd. (Trust Account) as the trust assets for the “Trust for Delivering Shares to Directors.”
In addition, the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account) are includedin the treasury shares that are excluded from the calculation of the average number of shares during
the period. (83,136 shares for the six months ended August 31, 2023, and 88,520 shares for the six
months ended August 31, 2022)* Quarterly financial results reports are not required to be subjected to quarterly financial reviews conducted bycertified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
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. Actual
business and other results may differ substantially due to various factors. Please refer to “1. Qualitative
information on quarterly financial results, (3) Explanation of consolidated earnings forecasts and other suchforward-looking information” on page 4 of the attached material for the suppositions that form the assumptions
for earnings forecasts and cautions concerning the use thereof.

Attached material
1. Qualitative information on quarterly financial results .......................................................................................................... 2(1) Explanation of operating results .....................................................................................................................................2(2) Explanation of financial position ....................................................................................................................................3(3) Explanation of consolidated earnings forecasts and other such forward-looking information ........................................4
2. Quarterly consolidated financial statements and significant notes thereto ........................................................................... 5(1) Quarterly consolidated balance sheet ..............................................................................................................................5(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income .............................7
Quarterly consolidated statement of income (cumulative) ..............................................................................................7
Quarterly consolidated statement of comprehensive income (cumulative) .....................................................................8(3) Quarterly consolidated statement of cash flows ..............................................................................................................9(4) Notes to quarterly consolidated financial statements .................................................................................................... 10
Notes on premise of going concern ............................................................................................................................... 10
Notes on the event of significant changes in the amount of shareholders’ equity ......................................................... 10
Changes in accounting estimates .................................................................................................................................. 10
Notes to quarterly consolidated statement of income.................................................................................................... 10
Segment information, etc. ............................................................................................................................................. 11
Significant subsequent events ....................................................................................................................................... 12-1-

1. Qualitative information on quarterly financial results(1) Explanation of operating results
During the first six months of the current fiscal year, the outlook for the Japanese economy
remained uncertain mainly due to ongoing inflation stemming from the continuing high resource
prices, economic stagnation due to global scale monetary tightening, as well as the impact from thedepreciation of the yen. However, as the economic activities normalized in Japan due to the change
in the legal classification of COVID-19 and the abolition of activity restrictions, the rate of
economic growth for the three months April to June showed underlying strength and companies hadstrong earnings results.
In the food supermarket industry, which is the Group’s area of business, the environment
surrounding corporate operations is unpredictable due to not only concerns over consumer
confidence weakening in the future on account of higher prices and declining real wages but also
rising costs on a variety of fronts such as personnel expenses, electricity expenses and logistics
expenses, despite signs of recovery overall in revenue due to increased product prices.
In this economic environment, based on what we have built up through the 6th Medium-Term Plan
and changes in the external environment, the Group is working on the 7th Medium-Term Plan withthe following three main themes from the current fiscal year to realize our Corporate Philosophy,
Vision, and the “True to LIFE Declaration,” with a view to looking toward to what we want to be infiscal 2030.
•

Investment in employees – We invest in growth of employee and a motivating workplaceenvironment because we recognize that increased motivation through employee growth andsatisfaction, will advance the 7th Medium-Term Plan and lead to company growth.

•

Breaking away from homogeneous competition – We aim to provide customers with a
comfortable shopping experience by refining our unique products and services, expanding ourinternet business, and providing information through the LIFE app available on smartphones,in order to realize seamless and convenient shopping environment.

•

Contributing towards the realization of a sustainable and flourishing society – As a “lifeline forthe community” – we are implementing initiatives to realize a sustainable and flourishingsociety (reduction of environmental impacts, contribution to the local community, etc.).

In promoting the three themes, even in the current situation of labor shortages, we are steadily
getting all employees to conduct their activities while engaging in “kaizen” under the slogan of“Linking the Circle of Kaizen” in order to optimize costs while also increasing productivity toaccomplish the 7th Medium-Term Plan.
In terms of specific initiatives carried out this fiscal year, in July, we renewed the LIFE app, adding
more convenient and valuable features. Also, the number of members of the LIFE credit card “LCJCB CARD” exceeded 500,000 and as a limited-time offer, point campaigns were offered once permonth for the months from June to August.
We opened following new stores: Takarazuka Nakayamadera Store (Hyogo) and BIO-RAL
PARCO_ya Ueno Store (Tokyo) in March, Kawasaki Tsukagoshi Store (Kanagawa) and Central
Square LaLaport Kadoma Store (Osaka), which was our 300th store, in April, and Umejima Ekimae
Store (Tokyo) and BIO-RAL Ariake Garden Store (Tokyo), which our first “Large BIO-RAL Cafe”
is attached to, in June. As for existing stores, we undertook major renovations at Oizumigakuen
Ekimae Store and Kema Store substantially enhancing the product lineups such as BIO-RAL brandproducts and frozen foods.
The Group’s operating revenue totaled ¥400,148 million (up 6.0% year on year) as a result of the
expansion of new stores and online supermarkets, the strengthening of private brand products suchas “BIO-RAL,” and implementing product initiatives that sought to enhance taste of our products.
-2-

On the other hand, as for selling, general and administrative expenses, the Group saw increases inutilities expenses, various property expenses such as rent expenses from opening new stores, andpersonnel expenses from increased hiring activities. However, initiatives to increase productivity
and optimize costs led to the results exceeding the plan, and operating profit was ¥12,410 million(up 39.2% year on year), ordinary profit was ¥12,851 million (up 37.7% year on year), and profit
attributable to owners of parent was ¥8,534 million (up 33.1% year on year).
Results by segment are as follows:(Retail Business)
Operating revenue was ¥400,040 million (up 6.0% year on year), with net sales of ¥385,663 million(up 5.9% year on year), and segment profit of ¥12,644 million (up 37.7% year on year).
Net sales by department were ¥166,895 million (up 4.8% year on year) for fresh produce, ¥173,498
million (up 7.2% year on year) for general food, ¥33,541 million (up 5.4% year on year) forlifestyle products, and ¥11,728 million (up 3.9% year on year) for apparel.
(Other Business)
Operating revenue from LIFE FINANCIAL SERVICE was ¥1,373 million (up 8.5% year on year),with segment profit of ¥207 million (up 37.6% year on year).
(2) Explanation of financial position(i) Assets, liabilities, and net assets
Total assets at the end of the second quarter of the current fiscal year were ¥279,673 million, adecrease of ¥1,136 million from the end of the previous fiscal year.
Current assets totaled ¥78,620 million, a decrease of ¥1,870 million from the end of the previous
fiscal year. This was mainly due to decreases of ¥1,639 million in cash and deposits and ¥1,676
million in accounts receivable - other, while accounts receivable - trade increased by ¥1,595
million.
Non-current assets totaled ¥201,053 million, an increase of ¥733 million from the end of theprevious fiscal year. This was mainly due to an increase of ¥786 million in intangible assets.
Total liabilities at the end of the second quarter of the current fiscal year were ¥150,728 million, adecrease of ¥8,079 million from the end of the previous fiscal year. This was mainly due to a¥19,271 million decrease in the total of short-term borrowings and long-term borrowings, whileaccounts payable - trade increased by ¥6,415 million, income taxes payable increased by ¥2,629
million, and accounts payable - other (other current liabilities) increased by ¥1,167 million.
Total net assets at the end of the second quarter of the current fiscal year were ¥128,945 million, an
increase of ¥6,942 million from the end of the previous fiscal year. This was mainly due to a ¥6,889
million increase in retained earnings.

(ii) Cash flows
Cash and cash equivalents (“cash”) at the end of the second quarter of the current fiscal year totaled¥7,687 million (up 11.8% year on year).
The status of respective cash flows and their factors during the first six months of the current fiscal
year are as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥28,517 million in the first six months of thecurrent fiscal year (up 58.1% year on year). This was mainly due to an increase of ¥6,415 million in-3-

trade payables, as well as depreciation, a non-cash gain/loss item, of ¥7,675 million, and profit
before income taxes of ¥12,587 million.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥8,557 million in the first six months of thecurrent fiscal year (down 41.7% year on year). This was mainly due to expenditures of ¥7,290
million for the purchase of property, plant and equipment, including the construction of six new
stores and renovation of existing stores.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥21,599 million in the first six months of thecurrent fiscal year (up 267.2% year on year). This was mainly due to a net decrease in short-termborrowings and repayments of long-term borrowings of ¥32,271 million despite proceeds fromlong-term borrowings of ¥13,000 million.

(3) Explanation of consolidated earnings forecasts and other such forward-looking information
There is no change in the consolidated earnings forecasts for the fiscal year ending February 29,
2024 from that announced on April 10, 2023 in the “Consolidated Financial Results for the Fiscal
Year Ended February 28, 2023.”
We will closely monitor future economic and consumer spending trends, and if it becomes
necessary to revise our consolidated earnings forecasts, we will disclose them promptly.

-4-

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Millions of yen)
As of February 28, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Accounts receivable - other
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of August 31, 2023

9,727
9,209
25,811
250
29,664
5,826
80,4908,087
10,805
26,841
302
27,9884,594
78,62091,932
39,61424,334
155,880
3,218

93,301
39,614
22,862
155,778
4,005

24,513
16,749(41)
41,220200,319
280,81024,75916,553(42)
41,270201,053
279,673

(Millions of yen)
As of February 28, 2023
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for sales promotion expenses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
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
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

As of August 31, 2023

41,971
44,120
8,628
2,363
2,764
21
28,367
128,236

48,387
16,02010,173
4,992
2,995
21
30,271
112,861

17,497

24,781

43

35

889
5,350
6,790
30,571
158,807

933
5,548
6,568
37,866
150,728

10,004
5,696
109,147(3,838)121,010

10,004
5,696
116,037(3,830)127,907588(1,154)
1,558
992
122,002280,810695(1,154)
1,496
1,038
128,945279,673(2) Quarterly consolidated statement of income and consolidated statement of comprehensive
incomeQuarterly consolidated statement of income (cumulative)(Millions of yen)Six months ended
August 31, 2022
Net sales
Cost of sales
Gross profit
Receipts from operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Income from recycling
Data offer fee
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Head office relocation expenses
Loss on store closings
Loss on retirement of non-current assets
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

*1

-7-

Six months ended
August 31, 2023

364,251
252,407
111,843
13,311
125,155
116,2418,914*1385,663
265,804
119,858
14,484
134,343
121,932
12,410

66
27
166
78
202
540

61
31
182
84
203
564

90
33
123
9,331

95
27
123
12,851

–
–
15
–
–
15
9,315
2,355
547
2,902
6,412
6,412

80
61
59
49
13
264
12,587
4,067
(14)
4,052
8,534
8,534

*2

Quarterly consolidated statement of comprehensive income (cumulative)(Millions of yen)Six months ended
August 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent-8-

Six months ended
August 31, 2023

6,412

8,534

46
8
55
6,468

107
(61)
46
8,580

6,468

8,580

(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
August 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Retirement benefit expenses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales promotion
expenses
Increase (decrease) in contract liabilities
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for share awards for
directors (and other officers)
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Loan advances
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Dividends paid
Purchase of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-9-

Six months ended
August 31, 2023

9,315
7,385
12
320

12,587
7,675
(88)
230

(7)

0

(95)
(26)

27
43

(12)

(8)

(93)
90
15
(1,992)
(388)
2,524
4,599
613
(1,154)
21,10728(84)(3,013)18,037(93)
95
59(1,595)(1,082)
1,678
6,415
1,753
2,409
30,10932(89)(1,534)28,517(400)
400(13,257)
–
(288)
(22)
(448)
24
(699)
(14,689)(400)
400(7,290)
1
(845)
(144)
(260)
14
(32)
(8,557)(3,650)5,500(5,258)(598)(1,874)(0)(5,881)(2,533)
9,409
6,875

(28,100)
13,000(4,171)(684)(1,643)(1)(21,599)(1,639)
9,327
7,687

(4) Notes to quarterly consolidated financial statements
Notes on premise of going concern
Not applicable.
Notes on the event of significant changes in the amount of shareholders’ equity
Not applicable.
Changes in accounting estimates
Changes in useful lives
At the Board of Directors meeting held on August 31, 2023, a resolution was passed
concerning guidelines for the relocation of the Tokyo Head Office. In line with theseguidelines, the term for the useful lives of non-current assets that will be no longer required
was shortened to the scheduled date of relocation.
As a result, compared to the previous method, operating profit, ordinary profit, and profit
before income taxes each decreased by ¥35 million for the first six months of the current fiscal
year.
Notes to quarterly consolidated statement of income*1 Major items and amounts of selling, general and administrative expenses(Millions of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2023

Salaries, allowances and bonuses

43,85745,862

Provision for bonuses

2,870

2,989

782

704

Retirement benefit expenses*2 Loss on disaster
First six months of the previous fiscal year (March 1, 2022 to August 31, 2022)
Not applicable.

First six months of the current fiscal year (March 1, 2023 to August 31, 2023)
An amount of ¥49 million was recorded as loss on abandonment of goods and waste
disposal costs in association with Typhoon Lan (seventh named storm), which struck in
August 2023.

- 10 -

Segment information, etc.
[Segment information]
I First six months of the previous fiscal year (March 1, 2022 to August 31, 2022)
1. Information on operating revenue and profit or loss by reportable segment and on
disaggregation of revenue
Reportablesegment
Other (Note 2)

Total

Adjustments

Retail Business(Millions of yen)Amounts
recorded inquarterly
consolidated
statement ofincome (Note 3)

Operating revenue (Note 1)
Revenue from contracts withcustomers
Other revenue (Note 4)
Operating revenue fromexternal customers
Intersegment operating
revenue and transfers
Total
Segment profit
Notes: 1.

374,840

533

375,374–

375,374

2,188

–

2,188

–

2,188

377,029533

377,563–

377,563

446

732

1,179

(1,179)–377,476

1,265

378,742(1,179)377,563

9,180

150

9,331

–

9,331

Operating revenue is the total of net sales and receipts from operating revenue.

2.
3.

“Other” includes credit card business, etc.
Segment profit is adjusted to ordinary profit in the quarterly consolidated statement of income.

4.

Other revenue includes real estate lease revenue based on the Accounting Standard for Lease Transactions(ASBJ Statement No. 13).

- 11 -

II First six months of the current fiscal year (March 1, 2023 to August 31, 2023)
1. Information on operating revenue and profit or loss by reportable segment and on
disaggregation of revenue
Reportablesegment
Other (Note 2)

Total

Adjustments

Retail Business(Millions of yen)Amounts
recorded inquarterly
consolidated
statement ofincome (Note 3)

Operating revenue (Note 1)
Revenue from contracts withcustomers
Other revenue (Note 4)
Operating revenue fromexternal customers
Intersegment operating

397,360

594

397,955–

397,955

2,192

–

2,192

–

2,192

399,553594

400,148–

400,148

487

778

1,265

(1,265)–400,040

1,373

401,413(1,265)400,148

12,644207

12,851–

12,851revenue and transfers
Total
Segment profit
Notes: 1.

Operating revenue is the total of net sales and receipts from operating revenue.

2.
3.

“Other” includes credit card business, etc.
Segment profit is adjusted to ordinary profit in the quarterly consolidated statement of income.

4.

Other revenue includes real estate lease revenue based on the Accounting Standard for Lease Transactions(ASBJ Statement No. 13).

Significant subsequent events
Not applicable.

- 12 -