Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended March 31, 2024
(Based on Japanese GAAP)May 10, 2024
Company name:CE Holdings Co.,Ltd.
Stock exchange listing: Tokyo, Sapporo
Stock code:
Representative:
Inquiries:

4320
URL https://www.ce-hd.co.jp
Representative Director and President &CEO(Chief Exective Officer)
Director & CFO(Chief Financial Officer)

Naokazu Saito
Tsunehito Taguchi

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

May 10, 2024–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
NoTEL

011(861)1600(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended March 31, 2024 (from October 1, 2023 to March 31, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended March 31, 2024
8,070
9.9
741 (11.7)
744 (11.2)
371 (24.9)
Six months ended March 31, 2023
7,341
1.5
839
36.3
837
34.9
494
47.5
Earnings per share

Diluted earnings per share

Yen
24.77
32.99

Six months ended March 31, 2024
Six months ended March 31, 2023

Yen––(2) Consolidated financial position
Total assets
As of March 31, 2024
As of September 30, 2023

Net assets

Millions of yen
12,88911,244Equity ratio

Millions of yen
6,823
6,583%
49.3
54.1

2. Cash dividends
Annual dividends per share

Year ended September 30, 2023
Year ending September 30, 2024
Year ending September 30, 2024(Forecast)

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
0.00
0.00

Yen–

Yen
14.00

Total
Yen
14.00

–

15.00

15.00

3. Forecast of consolidated financial results for the year ending September 30, 2024 (from October 1, 2023 to September 30, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
15,500
13.7
1,350
7.6
1,350
7.4
750
9.1
50.17

1

4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2024
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

15,518,400 shares As of September 30, 2023

15,347,600 shares

Number of treasury shares at the end of the period
As of March 31, 2024

398,163 shares As of September 30, 2023

398,114 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2024

15,009,975 shares Six months ended March 31, 2023

215,001,106 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2023

As of March 31, 2024

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

3,138,112
3,379,750

3,379,641
4,678,368

3,575
230,817

3,062
281,857

1,437
2,782

1,262
3,519

312,179(12,900)

278,267(14,481)7,055,754

8,611,498

1,891,370

1,865,355

305,119

283,332

892,394

1,059,264

1,197,514

1,342,597

439,809659,912444,919
625,454

Investments and other assets
Investment securities
Other
Allowance for doubtful accounts

(360)

(360)

Total investments and other assets

1,099,361

1,070,014

Total non-current assets

4,188,246

4,277,967

11,244,000

12,889,466

1,356,065
200,000

1,661,095–

Current portion of long-term borrowings
Accounts payable - other557,149
300,975

870,815
189,480

Income taxes payable
Provision for bonuses

262,036
316,615

291,797
252,794

Contract liabilities
Other

289,309338,470

294,463354,643

Total current liabilities

3,620,622

3,915,089

Non-current liabilities
Long-term borrowings

Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

660,712

1,765,722

Retirement benefit liability
Other206,355
173,209219,161
165,839

Total non-current liabilities

1,040,277

2,150,722

4,660,899

6,065,812

Total liabilities3

(Thousands of yen)
As of September 30, 2023

As of March 31, 2024

Net assets
Shareholders' equity
Share capital

1,218,077

1,269,825

Capital surplus
Retained earnings

1,243,929
3,798,845

1,295,678
3,961,278

Treasury shares(200,373)(200,404)

Total shareholders' equity

6,060,479

6,326,377

Valuation difference on available-for-sale securities

19,11427,322

Total accumulated other comprehensive income

19,11427,322

Accumulated other comprehensive income

Share acquisition rights

–

3,585

Non-controlling interests

503,507466,368

Total net assets
Total liabilities and net assets

46,583,101

6,823,654

11,244,000

12,889,466

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)(Thousands of yen)Six months ended
March 31, 2023

Six months ended
March 31, 2024

Net sales

7,341,341

8,070,171

Cost of sales

5,378,975

6,190,754

Gross profit

1,962,366

1,879,417

Selling, general and administrative expenses

1,122,790

1,137,934

839,575

741,483

Operating profit
Non-operating income
Interest income

229

19

Dividend income
Foreign exchange gains

1,180–

1,045
640

Subsidy income
Other

1,739
3,061

4,993
3,617

Total non-operating income

6,211

10,316

Non-operating expenses
Interest expenses

3,642

5,165

Foreign exchange losses
Loss on investments in investment partnerships

1,590
1,537–
1,650

Other

1,444

835

8,214

7,651

Ordinary profit

Total non-operating expenses

837,571744,147

Extraordinary income
Reversal of allowance for doubtful accounts

25,277–

Gain on redemption of investment securities

12012025,397

120

1,582

–

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

1,582

–

Profit before income taxes

Total extraordinary losses

861,387744,267

Income taxes - current

289,277

282,562

Income taxes - deferred

36,49457,048

Total income taxes

325,771339,610

Profit535,615404,656

Profit attributable toProfit attributable to owners of parent

494,855

371,725

40,76032,931

11,179

8,207

Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income

11,1798,207

546,794

412,864

506,034
40,760379,933
32,931

Comprehensive income attributable toComprehensive income attributable to owners of parentComprehensive income attributable to non-controlling interests

5Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

March 31, 2023

March 31, 2024

861,387744,267

Depreciation
Amortization of goodwill

172,340
23,183

209,70221,787

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income(41,921)(1,409)1,581(1,064)

3,642(1,149,674)

5,165(1,298,617)

Decrease (increase) in distressed receivables
Decrease (increase) in inventories

46,119102,258–(50,353)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other(71,196)(49,466)

305,029(119,565)

Other, net

134,334(98,118)

Subtotal

29,597(280,186)

Interest and dividends received

1,404

1,058

Interest paid
Income taxes paid

(3,642)(368,417)(5,165)(252,945)

Income taxes refund

52,16385,988(288,894)(451,249)

Purchase of property, plant and equipment
Purchase of intangible assets(38,149)(185,288)(25,874)(320,170)

Purchase of investment securitiesProceeds from sale of investment securities

(700)
9,483

(4,600)9,492

Proceeds from share of profits on investments in partnership
Other, net

1,572(41,011)93(12,295)

Net cash provided by (used in) investing activities(254,093)(353,354)

390,000(200,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings–(297,555)

1,800,000(381,324)

Redemption of bonds
Purchase of treasury shares(5,000)(99,963)–(30)

Repayments of lease liabilities
Proceeds from issuance of shares(894)
39,050(735)
37,331–

3,750Interest expenses
Decrease (increase) in trade receivables

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

Cash flows from financing activities
Increase (decrease) in short-term borrowings

Proceeds from issuance of share acquisition rights
Proceeds from issuance of shares resulting from exercise ofshare acquisition rights
Dividends paid–

66,000(180,407)(208,788)

Dividends paid to non-controlling interests(39,200)(70,070)

Net cash provided by (used in) financing activities(193,970)

1,046,132

Net increase (decrease) in cash and cash equivalents(736,958)

241,528

Cash and cash equivalents at beginning of period

3,958,521

3,138,112

Cash and cash equivalents at end of period

3,221,562

3,379,641

6