Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

October 10, 2023

Consolidated Financial Results
for the Fiscal Year Ended August 31, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

Watts Co., Ltd.
Tokyo Stock Exchange2735
https://www.watts-jp.com
Fumio Hiraoka, President and CEO
Hidehito Mori,
Executive Managing Director, Head of Corporate Planning OfficeTelephone:+81-6-4792-3280
Scheduled date of annual general meeting of shareholders:November 28, 2023
Scheduled date to commence dividend payments:
November 29, 2023
Scheduled date to file annual securities report:
November 28, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for institutional investors)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended August 31, 2023 (from September 1, 2022 to August
31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Sales

Operating profit

Net income attributable toowners of parent

Recurring profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

August 31, 2023

59,309

1.6

621

-37.7

648

-43.5

250

-67.9

August 31, 2022

58,347

15.1

998

-40.2

1,148

-27.6

781

-19.1

Note: Comprehensive income

For the fiscal year ended August 31, 2023:
For the fiscal year ended August 31, 2022:

Net income
per share

Diluted net income
per share¥294 million¥866 million

Return on equity[-66.0%][-8.0%]

Ratio of recurring
profit to total assets

Ratio of operating
profit to sales

Fiscal year ended

Yen

Yen

%

%

%

August 31, 2023

18.46

-

2.1

2.5

1.0

August 31, 2022

57.83

-

6.7

4.9

1.7

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended August 31, 2023:¥-15 million
For the fiscal year ended August 31, 2022:¥7 million(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

August 31, 2023

25,489

11,96446.9

887.48August 31, 2022

25,60011,931

46.6

878.58Reference:

EquityAs of August 31, 2023:
As of August 31, 2022:¥11,952 million¥11,927million

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

August 31, 2023

221

-667

-633

5,646

August 31, 2022

1,721

-975

-328

6,687

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Fiscal year ended

August 31, 2022
Fiscal year ended

August 31, 2023

Fiscalyear-end

Total cash
dividends(Total)

Total

Yen

Yen

Yen

Yen

-

0.00

-

15.00

15.00

-

0.00

-

15.00

15.00

-

0.00

-

15.00

15.00

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

203

25.9

1.7

202

81.2

1.7

Fiscal year ending

August 31, 2024

74.8

(Forecast)

3. Forecast of consolidated financial results for the year ending August 31, 2024 (from September 1, 2023 toAugust 31, 2024)(Percentages indicate year-on-year changes.)
Sales

Operating profit

Net income attributable toowners of parent

Recurring profit

Net income
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Six months

29,720

0.6

240

-11.8

190

-29.9

120

-58.9

8.91

Full year

59,100

-0.4

500

-19.6

400

-38.3

270

7.8

20.05

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change inscope of consolidation): Yes
Excluded: 1 company (Ontsu F.RETAIL Co., Ltd.)(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury stock)
As of August 31, 2023

13,898,800 shares

As of August 31, 2022

13,898,800 shares(ii) Number of treasury stock at the end of the period
As of August 31, 2023

431,092 shares

As of August 31, 2022

323,487 shares(iii) Average number of shares outstanding during the period
Fiscal year ended August 31, 2023

13,570,974 sharesFiscal year ended August 31, 2022

13,508,204 shares

Note: The Average number of shares outstanding during the period includes the Company’s shares held by the share issuance trust for
directors (FY8/23: - shares, FY8/22: 27,945 shares).

* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements regarding future performance in this material are based on information currently
available to the Company and certain assumptions that the Company deems to be reasonable at the time this report
was prepared. Therefore, the Company does not make promises about the achievements. Actual results may differ
significantly from the forecasts due to various factors.
Please refer to “(4) future outlook” of “1. Results of operations” on page 4 for the suppositions that form theassumptions for business forecasts and cautions concerning the use of business forecasts.

1. Results of Operation………………………………………………………………………………………………………...
(1) Overview of operating results for the fiscal year under review………………………………………………………...
(2) Overview of financial position for the fiscal year under review……………………………………………………….
(3) Overview of cash flows for the fiscal year under review………………………………………………………………
(4) Future outlook………………………………………………………………………………………………………….
2. Basic Policy Regarding Selection of Accounting Standards……………………………………………………………….
3. Consolidated Financial Statements…………………………………………………………………………………………
(1) Consolidated Balance Sheets…………………………………………………………………………………………...
(2) Consolidated Statements of Income and Statements of Comprehensive Income………………………………………
(Consolidated Statements of Income) …………………………………………………………………………………
(Consolidated Statements of Comprehensive Income) ……………………………………………………………….
(3) Consolidated Statements of Changes in Net Assets……………………………………………………………………
(4) Consolidated Statements of Cash Flows……………………………………………………………………………….
(5) Notes to Consolidated Financial Statements...…………………………………………………………………………
(Notes on going concern assumption) …………………………………………………………………………………..
(Segment information) …………………………………………………………………………………………………
(Per share information) ……………………………………………………………………………………………….
(Important subsequent events) ………………………………………………………………………………………..
4. Other…………………………………………………………………………………………………..…………………….
(1) Changes in directors...………………………………………………………………………………………………….
(2) Sales information...……………………………………………………………………………………………………..

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1. Results of Operations（1） Overview of operating results for the fiscal year under review

During the fiscal year under review, the Japanese economy saw a temporary recovery in domestic travel demand due to thelifting of restrictions under the post-COVID society, as well as the stimulating effect of wage increases in personal consumption.
However, overall personal consumption growth has been slow due to the sustained yen’s depreciation and cost-push inflation
driven by rising resource prices which remain high. Inbound tourism demand has fully benefited from the yen's depreciation andcontinues to recover, with further growth anticipated in the future. In the corporate sector, despite ongoing uncertainties in the
global economic outlook and persistent labor shortages, as well as rising costs, overall performance remained robust, thanks to theeasing of supply shortages, particularly in components such as semiconductors, and strong demand for capital investment.
Given this environment, in addition to the 100-Yen shop business in Japan, the Company, which operates some brands
named Watts, Watts with, meets., silk, etc., has been working on diversifying its revenue sources by undertaking other domestic
businesses, centering on the sale of life-style goods and discount goods as well as overseas business.
In the domestic 100-Yen shop business, the Watts Online Store introduced products from Buona Vita and Tokino:ne, as well as
products exclusive to the online store, and the number of products listed in the store significantly increased to more than 19,000
items.
In addition, the Company has been advancing the introduction of self-checkout registers to improve in-store productivity
through more efficient purchasing processes. The Company has also promoted renovations and in-store layout reviews for someshops, primarily focusing on the FLET'S brand, which was acquired through M&A in the previous fiscal year.
As for new shop openings, the Company opened 228 shops to the full-year plan of 236 shops. There were 100 shop closings(including 4 franchised shops), including certain unprofitable shops and unpredictable closing of shops where the Company’s
shops were located in. As a result, the total number of 100-Yen shops at the end of the fiscal year under review was 1,769, which
includes 1,750 directly managed shops (net increase of 132), and 19 franchised/other shops (net decrease of 4).
Of these, the number of the Watts brand shops "Watts" and "Watts with" was 1,247 (net increase of 218), accounting for 70.5% of
the total.
As for the number of domestic other brands at the end of the fiscal year, Buona Vita, a life-style goods shop offering a
comfortable life, operates 15 shops (net decrease of 8). The decline is because Watts Connection, the operator of Buona Vita,
was absorbed into Watts East Japan Sales, the 100-Yen shop operator, effective September 1, 2022, and 6 Buona Vita shops(consignment-type shops in the Company’s 100-Yen shops) were excluded from the figure.
Tokino:ne, a household items brand under the theme of “time”, operates 2 directly-managed shops (unchanged). In addition,
Tokino:ne began selling its products in 200 of the Company's 100-Yen shops. Value-100, a collaborative brand with the freshfood supermarket, remains with 1 shop (unchanged). Real, a discount shop brand, operates 5 shops (net decrease of 1).
Regarding the overseas operation, the Company operates KOMONOYA, a fixed-price shop mainly in Southeast Asia. At theend of the fiscal year under review, “KOMONOYA” operates 25 shops in Thailand (net decrease of 12), and 10 shops in Peru
(net decrease of 4). In China, there were 4 shops (unchanged) named 小物家园 (KOMONOKAEN), a fixed price shop. The
total number of own-brand shops “KOMONOYA” and 小物家园 (KOMONOKAEN) was 39 (net decrease of 16).
As a result, for the fiscal year under review, sales were 59,309 million yen (up 1.6% YoY, 100.5% to the plan). Although thehigher sales proportion of products priced above 100 yen partially reduced the cost-of-sales ratio, the gross margin decreased
by 0.3 percentage points.
Also, mainly due to higher utility and freight costs, operating profit was 621 million yen (down 37.7% YoY, 155.4% to the plan),recurring profit was 648 million yen (down 43.5% YoY, 162.2% to the plan), and net income attributable to owners of parent was
250 million yen (down 67.9% YoY, 167.1% to the plan).
(*Year on year: comparison with the results for the previous fiscal year. Ratio to plan: ratio to the business forecasts for the
fiscal year ended August 2023 which were announced in the “Notice Concerning Revision to Business Forecasts” dated July 10,2023.)
Since the Group operates under a single segment consisting of the operation of 100-Yen shops associated business, segment
information is omitted.

2（2） Overview of financial position for the fiscal year under review(Assets)
As of the end of the fiscal year under review, current assets stood at 18,919 million yen, an increase of 358 million yen fromthe end of the previous fiscal year. This was mainly due to increases of 985 million yen for merchandise and finished goods,
233 million yen for deposits paid to other in current assets, 110 million yen for notes and accounts receivable-trade, wwhile
there were decreases of 1,041 million yen for cash and deposits.
Noncurrent assets stood at 6,569 million yen, decreased by 469 million yen from the end of the previous fiscal year. This was
mainly due to decreases of 150 million yen in buildings and structures and 131 million yen in goodwill, 124 million yen insoftware included in other intangible assets and 75 million yen in deposits.
As a result, total assets stood at 25,489 million yen, a decrease of 111 million yen from the end of the previous fiscal year.
(Liabilities)
As of the end of the fiscal year under review, current liabilities stood at 9,966 million yen, an increase of 33 million yen fromthe end of the previous fiscal year. This was mainly due to increases of 85 million yen in electronically recorded obligations
and 85 million yen in current portion of long-term loans payable, while there were decreases of 68 million yen in accrued
consumption taxes and 62 million yen in accounts payable-other included in other current liabilities.
Noncurrent liabilities stood at 3,557 million yen, a decrease of 178 million yen compared with the end of the previous fiscal
year. This was mainly due to increases of 43 million yen in retirement benefit liability, despite a decrease of 207 million yen in
long-term loans payable.
As a result, total liabilities stood at 13,524 million yen, a decrease of 145 million yen from the end of the previous fiscal year.
(Net assets)
As of the end of the fiscal year under review, total net assets stood at 11,964 million yen, an increase of 33 million yen fromthe end of the previous fiscal year. This was mainly due to an increase of 46 million yen in retained earnings.
As a result, shareholders’ equity ratio stood at 46.9% (46.6% at the end of the previous fiscal year).
（3） Overview of cash flows for the fiscal year under review

Cash and cash equivalents (hereinafter referred to as “cash”) at the end of the fiscal year under review amounted to 5,646
million yen, a decrease of 1,041 million yen compared with the previous fiscal year.
Details and breakdown of each cash flow in the fiscal year under review are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 221 million yen (1,721 million yen was provided in the previous fiscal year).
Cash was provided mainly by depreciation and amortization of 615 million yen, income before income taxes of 336 million yen,
and impairment loss of 241 million yen. Cash was used mainly for an increase of 954 million yen in inventories.
(Cash flows from investing activities)
Net cash used in investing activities was 667 million yen (975 million yen was used in the previous fiscal year). This was
mainly due to purchase of property, plant and equipment of 547 million yen and payments for lease and guarantee deposits of
114 million yen.
(Cash flows from financing activities)
Net cash used for financing activities was 633 million yen (328 million yen was used in the previous fiscal year). Cash wasused mainly for long-term loans payable of 822 million yen, increase in deposits paid for acquisition of treasury stock of 233
million yen, and cash dividends paid of 203 million yen. Cash was provided mainly by proceeds from long-term loans payable of
700 million yen.

3（4） Future outlook

Currently, the impact of COVID-19 has been limited, and Japan is expected to make steady progress toward the post-COVID
era. However, depending on the presence of effective government-led fiscal policies aimed at mitigating rising prices, the ongoing
trends in yen’s depreciation and resource price changes, as well as the emergence of new variants of the virus, corporate activities
and consumer spending may stall.
In light of these circumstances, the Group remains committed to maintaining a selling price of 100 yen while ensuring theavailability of value-for-money products across various price ranges. In addition, to meet the diverse needs of consumers, it willcontinue to be the shop where customers can consistently find value beyond price.
Furthermore, with the aim of building a new revenue source to complement the 100-Yen shop business, the Group is actively
working on developing lines like Buona Vita, Tokino:ne and Real, to provide the new driving force for further growth in the
future.
As for the overseas business, the Company will strive to expand existing business and develop new markets, in order to further
expand the sales share within the Group and to earn profits.
For the next fiscal year, sales are expected to fall below the figure in the fiscal year under review, as the Company plans toactively close unprofitable shops. Furthermore, operating profit and recurring profit are also expected to decline. This is
attributed to the increased expenses associated with store closures, our initiative to upgrade in-store PCs in preparation for theend of Windows 10 support, and the introduction of full-function self-checkout machines.
Based on the above, the Company expects the following performance for the next fiscal year: sales of 59,100 million yen(down 0.4% year on year), operating profit of 500 million yen (down 19.6% year on year), recurring profit of 400 million yen(down 38.3% year on year) and net income attributable to owners of parent of 270 million yen (up 7.8% year on year).
(Reference) Cash flow indicators
FY8/19FY8/20FY8/21

FY8/22

FY8/23Equity ratio (%)

47.1

48.7

52.6

46.6

46.9

Market value equity ratio (%)

38.3

58.5

55.7

38.0

32.5

Interest-bearing debt to cash flows ratio (years)

0.4

1.4

3.0

1.7

13.0

522.6

197.5

30.8

157.1

18.9

Interest coverage ratio (times)(Notes) Equity ratio: Equity/Total assets
Market value equity ratio: Total market capitalization/Total assets
Interest-bearing debt to cash flows ratio: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payment
1. Total market capitalization is calculated by multiplying closing stock price at the end of the period by the total
number of shares issued at the end of the period (excluding treasury stock).
2. Net cash provided by operating activities in the consolidated statements of cash flows is used as “Operating cash
flow.”
3. Interest-bearing debt includes all debt on which interest is paid reported on the consolidated balance sheet.
4. For interest payment, interest expenses paid in the consolidated statements of cash flows are used.

2. Basic policy regarding selection of accounting standards
In order to secure comparability with domestic peer companies, the Company applies Japanese accounting standards.

4

3. Consolidated Financial Statements(1) Consolidated Balance Sheets

Previous fiscal year
(August 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Raw materials and supplies
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation and impairment loss
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

5(Thousands of yen)
Fiscal year under review(August 31, 2023)

6,687,848
2,687,168
8,734,082
25,84722,876431,169-27,599
18,561,392

5,646,608
2,797,383
9,719,862
16,78547,393721,037-29,071
18,919,998

4,008,560-2,951,551
1,057,009
32,337-26,989
5,348
4,882,184-4,061,385
820,798
257,800
111,042-101,363
9,678
5,000
2,155,635

4,074,010-3,167,522
906,488
33,390-29,153
4,236
5,049,332-4,228,762
820,569
257,800
109,161-103,187
5,973
16,1392,011,208

538,691
567,785
1,106,477

406,767
442,753
849,521350,185
523,698
2,765,694
144,709-7,2383,777,048
7,039,161
25,600,554

345,682545,983
2,690,009
134,581-7,801
3,708,455
6,569,184
25,489,183

Previous fiscal year
(August 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Current portion of long-term loans payable
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Retirement benefit liability
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Stock acquisition right
Total net assets
Total liabilities and net assets

6(Thousands of yen)
Fiscal year under review(August 31, 2023)

3,943,822
3,801,090
694,163
124,876
170,774
126,657
1,071,372
9,932,757

3,974,812
3,886,711
779,496
117,202102,700
142,008
963,362
9,966,293

2,311,910
412,913
34,295646,815
330,8443,736,777
13,669,535

2,104,658
456,153
31,673
681,263
284,156
3,557,905
13,524,198

440,297
1,348,550
10,214,752-133,386
11,870,213

440,297
1,350,605
10,261,701-200,885
11,851,719

4,962
51,85456,816
3,989
11,931,019
25,600,554

4,553
96,073
100,627
12,639
11,964,985
25,489,183

(2) Consolidated Statements of Income and Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)Previous fiscal year
(from September 1, 2021
to August 31, 2022)
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating revenues
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Royalty income
Compensation income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Early-withdrawal penalty
Share of loss of entities accounted for using equity method
Compensation expenses
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Surrender value of insurance
Gain on sale of investment securities
Gain on sales of noncurrent assets
Provision for directors' stock-based benefits
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on disaster
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to owners of parent

7

Fiscal year under review(from September 1, 2022
to August 31, 2023)

58,347,501
36,066,010
22,281,490
21,282,978998,51259,309,148
36,854,440
22,454,708
21,832,915
621,793

2,220
1,009
7,952
119,255
3,226
17,535
15,49014,638181,329

4,485
372
33,274
4,809
32,655
1,789
7,608
84,995

10,696
4,860
8,874
7,075
31,505
1,148,335

12,15821,974
15,842
8,143
58,118648,670

6,252
945
29,77736,975

1,810
684
2,495

32,616
176,170
1,248
210,035
975,275
324,854-130,764
194,090
781,185
781,185

72,882
241,626
314,508
336,657
115,559-29,480
86,078250,578
250,578

(Consolidated Statements of Comprehensive Income)(Thousands of yen)Previous fiscal year
(from September 1, 2021
to August 31, 2022)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent

8

Fiscal year under review(from September 1, 2022
to August 31, 2023)

781,185

250,578-4,652
61,27629,009-408
32,90911,31085,633866,818

43,810294,389

866,818

294,389

(3) Consolidated Statements of Changes in Net Assets
Previous fiscal year (from September 1, 2021 to August 31, 2022)(Thousands of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
period under review

Capital surplus

440,297

Retained earnings

1,354,136

9,729,641

Total shareholders’equityTreasury stock-273,120

11,250,955

Changes of items during theperiodDividends from surplus-296,074-296,074

Net income attributable toowners of parent

781,185

781,185

Disposal of treasury stock

60,47373,673

134,147

Cancellation of treasury stock-66,060

66,060-Net changes of items otherthan shareholders' equity
Total changes of items during
the period--5,586

485,111

139,733

619,258

Balance at the end of period
under review

440,297

1,348,550

10,214,752-133,386

11,870,213

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at the beginning of
period under review

9,615

Total accumulated
Foreign currencytranslation adjustment other comprehensive
income-38,432-28,817

Stock acquisitionright

Total net assets-

11,222,138

Changes of items during theperiodDividends from surplus-296,074

Net income attributable toowners of parent

781,185

Disposal of treasury stock

134,147

Cancellation of treasury stock-

Net changes of items otherthan shareholders' equity-4,65290,286

85,633

3,989

89,622

Total changes of items during
the period-4,65290,286

85,633

3,989

708,880

Balance at the end of period
under review

4,962

51,85456,816

3,989

11,931,019

9

Fiscal year under review (from September 1, 2022 to August 31,
2023)(Thousands of yen)

Shareholders’ equity
Capital stock
Balance at the beginning of
period under review

Capital surplus

440,297

Retained earnings

1,348,550

10,214,752

Treasury stock-133,386

Total shareholders’equity11,870,213

Changes of items during theperiodDividends from surplus-203,629-203,629

Net income attributable toowners of parent

250,578

250,578

Acquisition of treasury stock
Disposal of treasury stock

2,055-70,465-70,465

2,966

5,022

Net changes of items otherthan shareholders' equity
Total changes of items during
the period
Balance at the end of period
under review

440,297

2,055

46,948-67,498-18,494

1,350,605

10,261,701-200,885

11,851,719

Accumulated other comprehensive income
Valuation difference
on available-for-salesecurities
Balance at the beginning of
period under review

4,962

Total accumulated
Foreign currencytranslation adjustment other comprehensive
income51,85456,816

Stock acquisition
right

3,989

Total net assets

11,931,019

Changes of items during theperiodDividends from surplus-203,629

Net income attributable toowners of parent

250,578

Acquisition of treasury stock-70,465

Disposal of treasury stock

5,022

Net changes of items otherthan shareholders' equity-408

44,21943,8108,649

52,460Total changes of items during
the period-408

44,21943,8108,649

33,965

Balance at the end of period
under review

4,553

96,073

100,627

12,639

11,964,985

10

(4) Consolidated Statements of Cash Flows(Thousands of yen)Previous fiscal year
(from September 1, 2021
to August 31, 2022)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in liabilities relating to retirement
benefits
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in provision for directors' stock-based
benefits
Interest and dividends income
Interest expenses
Loss (gain) on sale of investment securities
Loss on retirement of noncurrent assets
Decrease (increase) in accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for retirement of property, plant and equipment
Payments for asset retirement obligations
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Proceeds from sale of investment securities
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayment of lease obligations
Purchase of treasury stock
Decrease (increase) in deposits paid for acquisition oftreasury stock
Cash dividends paid
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

11

Fiscal year under review(from September 1, 2022
to August 31, 2023)

975,275
571,326
176,170
120,930
2,670-60,02288,834

336,657
615,974
241,626
131,924
2,035
15,35043,2404,071-2,621-93,938--3,23010,696-945
32,616-168,989-65,044657,740
70,22886,0492,404,439
3,213-10,957-674,774
1,721,920-4,85812,158-1,81072,882-111,690-954,935
116,285–90,869
6,268
427,617
4,846-11,673-280,593
80,860221,058-542,040-107,936-14,520-8,898-567,262
66,3676,026-547,787
684-72,040-59,285-114,535
113,270
11,125

191,877-600-975,787

600-667,968-200,000
3,000,000-2,813,810-18,758-

700,000-822,287-5,531-67,498--233,884-296,038-328,607
101,113518,639
6,169,208
6,687,848-203,952-633,154
38,824-1,041,240
6,687,848
5,646,608

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Segment information)
Since the Group has a single segment consisting of the operation of 100-Yen shops and associated business, thisinformation is omitted.
(Per share information)
Previous fiscal year
(from September 1, 2021

Fiscal year under review(from September 1, 2022

to August 31, 2022)

to August 31, 2023

Net assets per share

878.58 yen

887.48 yen

Net income per share
57.83 yen
18.46 yen
(Notes) 1. No diluted net income per share is presented because dilutive shares do not exist.
2. The Company's shares owned by the share issuance trust for directors are included in the treasury stock deducted in thecalculation of the average number of shares during period, which is the basis for calculating net income per share.
(previous fiscal year: 27,945 shares, fiscal year under review: - shares).
3. The basis for calculating net income per share is as follows.

Net income attributable to owners of parent (thousand yen)Amount that does not belong to common shareholders(thousand yen)
Net income attributable to owners of parent available tocommon shareholders(thousand yen)
Average number of common shares during the period(shares)

Outline of dilutive shares not included in the calculation ofdiluted net income per share due to the absence of dilutive
effects.

(Important subsequent events)
No items to report

12Previous fiscal year

Fiscal year under review(from September 1, 2021 toAugust 31, 2022)(from September 1, 2022 toAugust 31, 2023)

781,185

250,578--

781,185

250,578

13,508,204

13,570,974

Stock acquisition rights by
resolution of the Board of
Directors on March 22, 2022
(Number of stock acquisitionrights issued: 1,246
Common shares: 124,600)

Stock acquisition rights by
resolution of the Board of
Directors on March 22, 2022
(Number of stock acquisitionrights issued: 1,238
Common shares: 123,800)

4. Other（1） Changes in directors① Change in the representative director
No items to report② Changes in other directors None
No items to report（2） Sales information

Since the Group operates under a single segment, the figures are based on sales by region and business division.
Business
Divisions

Area

Amount(thousand yen)

Year-on-yearchange (%)

Hokkaido area

2,263,522

102.6

Tohoku area

2,245,386

103.3

Kanto area

14,436,918

100.0

Chubu area

7,681,380

101.6

Kinki area

15,260,942

103.0

Chugoku/Shikoku
area

6,064,264

107.5

Kyushu area

5,044,411

101.1

100-Yen shop business

52,996,828

102.3

Wholesale

6,182,295

96.6

Revenue from contracts withcustomers

59,179,123

101.6

130,025108.8

59,309,148

101.6

Other revenue
Sales to outside customers

13