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 15, 2024
Company name:
KONAKA CO.,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

7494
URL https://www.konaka.co.jp
Representative Director, President and CEOGroup Representative
Senior Managing Executive Officer, CFO,
General Manager of Administration
Headquarters

Kensuke Konaka

Makoto Okumura

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

May 15, 2024–

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

Yes
Yes

TEL

045(825)7700(for institutional investors and analysts)(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
35,852
(2.0)
1,130
48.8
1,426
41.8
733 (30.3)
Six months ended March 31, 2023
36,592
6.4
759–
1,005 755.1
1,052–
Earnings per share

Diluted earnings per share

Yen
25.06
36.13

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
51,80550,612Equity ratio

Millions of yen
20,071
19,437

%
37.8
37.5

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
10.00
0.00

Yen–

Yen
10.00

TotalYen
20.00

–

0.00

0.00

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
70,015
6.4
683–
887–
85–
2.91

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, 202431,146,685 shares As of September 30, 2023

31,146,685 shares

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

1,786,832 shares As of September 30, 2023

1,897,073 shares

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

29,281,138 shares Six months ended March 31, 2023

229,134,711 shares

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

As of March 31, 2024

AssetsCurrent assetsCash and deposits
Accounts receivable - trade

5,894
2,826

6,270
4,411

Merchandise and finished goods
Work in process

14,3272

13,957
2

Raw materials and supplies
Other

366
1,347

404
2,123

Total current assets

24,764

27,169

3,458
9,341

3,182
8,637

Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

495

497

13,296

12,318Trademark right
Other

43512

1470

Total intangible assets

555

471

Investments and other assets
Investment securities

3,417

3,577

Leasehold and guarantee depositsRetirement benefit asset

7,031
699

6,768
747

Other
Allowance for doubtful accounts

895
(47)

800
(49)

Total investments and other assets

11,996

11,84425,84824,63550,61251,805

Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade

1,709

2,675

Electronically recorded obligations - operating
Short-term borrowings

2,331
12,075

3,347
10,618Current portion of long-term borrowings
Income taxes payable

7,652
366

7,287
508

896
413993
346

Other

3,194

3,294

Total current liabilities

28,64029,072

85
594

71
586

Provision for point card certificates
Other

31
1,823

32
1,971

Total non-current liabilities

2,534

2,661

31,17531,734Contract liabilities
Provision for bonuses

Non-current liabilities
Long-term borrowings
Retirement benefit liability

Total liabilities

3

(Millions of yen)
As of September 30, 2023

As of March 31, 2024

Net assets
Shareholders' equity
Share capital

5,305

5,305

Capital surplus
Retained earnings

13,253
1,631

13,253
1,936

Treasury shares(3,120)(2,938)

Total shareholders' equity

17,07017,557

1,840
(39)

1,951
(19)

98

93

1,898

2,024

467

488

19,437

20,071

50,61251,805

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

March 31, 2023

March 31, 2024

Net sales
Cost of sales

36,592
15,43435,852
15,086Gross profit

21,15820,766

Selling, general and administrative expenses

20,39919,635759

1,130Interest income
Dividend income

1317

1720

Rental income from real estate
Compensation income

193
80

218
–

Reversal of provision for bonuses
Other–
72

163
76

Total non-operating income

376

496

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

8182

Rental expenses on real estate
Other

29
1958
60

Total non-operating expenses

131

200

1,005

1,426

Gain on sale of non-current assets
Penalty income

810
440

587–

Other230–

1,480

587

20
1,526

9825

68

47

1,614

882

Profit before income taxes

871

1,130

Income taxes - current

447

335

Income taxes - deferred

(325)

57

Total income taxes

121

393

Profit750

737

Profit (loss) attributable to non-controlling interests

(302)

3

Profit attributable to owners of parent

1,052

733

Ordinary profit
Extraordinary income

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

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

March 31, 2023

March 31, 2024
750

737

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

189
43

111
36

Remeasurements of defined benefit plans, net of tax

6(4)

239

143

989

880

1,274

859

(284)

21

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

March 31, 2023

March 31, 2024
871

1,130513
1,526

406
825

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability

(0)
(17)

1(7)

Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for bonuses

(2)
(4)

1(66)

Long-term loans offset with a rentLong-term deposit offset with a rent

61
559
3

Gain on sale of non-current assets
Loss on retirement of non-current assets(810)
20(587)
9Interest and dividend income
Interest expenses(30)
81(38)
82

Foreign exchange losses (gains)
Penalty income

3(440)(3)–

Decrease (increase) in trade receivables
Decrease (increase) in inventories(1,449)517(1,586)
341

Increase (decrease) in trade payables
Increase (decrease) in accrued expenses

2,14333

1,905
187

Increase (decrease) in accrued consumption taxes
Other, net(133)(64)

14(327)

Subtotal

2,823

2,352

Interest and dividends received
Interest paid22(81)

37(89)

Penalty income received
Income taxes paid

189
(178)

–
(203)

6

3

2,782

2,100

(27)
–

–
62

(494)
1,212(678)
1,658

Payments for retirement of property, plant and equipment
Purchase of intangible assets

(45)
(45)

(108)
(464)

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits

(128)
161

(131)
135

Proceeds from collection of loans receivableOther, net

2(5)

3(0)

Net cash provided by (used in) investing activities

627

476

Depreciation
Impairment losses

Income taxes refund
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

7

(Millions of yen)

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

Six months ended

Six months ended

March 31, 2023

March 31, 2024
(1,193)(1,456)

Repayments of long-term borrowings
Purchase of treasury shares

(364)
(0)

(379)
(0)

Dividends paid
Dividends paid to non-controlling interests

(289)
(0)

(291)
–

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(4)

(4)

(1,852)(2,132)(9)(11)

Net increase (decrease) in cash and cash equivalents

1,548

433

Cash and cash equivalents at beginning of period

6,547

5,493

Cash and cash equivalents at end of period

8,095

5,926

8