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, 2023
(Based on Japanese GAAP)May 15, 2023
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, 2023
June 5, 2023

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, 2023 (from October 1, 2022 to March 31, 2023)(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, 2023
36,592
6.4
759–
1,005 755.1
1,052–
Six months ended March 31, 2022
34,386–(537)–117–(683)–
Earnings per share

Diluted earnings per share

Yen
36.13
(23.46)Six months ended March 31, 2023
Six months ended March 31, 2022

Yen––(2) Consolidated financial position
Total assets
As of March 31, 2023
As of September 30, 2022

Net assets

Millions of yen
55,55654,307

Equity ratio

Millions of yen
20,541
19,797%36.3
35.2

2. Cash dividends
Annual dividends per share

Year ended September 30, 2022
Year ending September 30, 2023
Year ending September 30, 2023
(Forecast)

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
10.00
10.00

Yen–

Yen
10.00

TotalYen
20.00

–

10.00

20.00

3. Forecast of consolidated financial results for the year ending September 30, 2023 (from October 1, 2022 to September 30, 2023)
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
69,3329.7(441)–247–(248)–(8.52)

1

4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2023
(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:

Yes
NoChanges 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, 2023

31,146,685 shares As of September 30, 2022

31,146,685 shares

Number of treasury shares at the end of the period
As of March 31, 2023

1,895,956 shares As of September 30, 2022

2,031,282 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2023

29,134,711 shares Six months ended March 31, 2022

229,115,859 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

6,744
2,532

8,334
3,981

Merchandise and finished goods
Work in process

15,499114,998
0

Raw materials and supplies
Other

286
1,469

274
1,644

Allowance for doubtful accounts(0)–26,533

29,234

3,842

3,503

Land
Other, net

10,409356

10,038389

Total property, plant and equipment

14,607

13,931

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

Intangible assets
Trademark right

1,090

55

328

353

1,418

409

2,932
7,638

3,197
7,599

Retirement benefit asset
Other

399
817

432
795

Allowance for doubtful accounts

(42)

(42)

Total investments and other assets

11,746

11,981

27,773

26,32254,30755,556

Notes and accounts payable - trade
Electronically recorded obligations - operating

1,641
2,045

2,863
3,006

Short-term borrowings
Current portion of long-term borrowings

13,562658

12,368
7,932

Income taxes payable
Contract liabilities

422
994

760
1,206

Provision for bonuses
Other

420
3,880

416
3,711

Total current liabilities

23,62532,265

Non-current liabilities
Long-term borrowings

7,738

99606
37588
34

Other2,502

2,025

Total non-current liabilities

10,8852,749

34,51035,014

Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits

Total non-current assets
Total assets
Liabilities
Current liabilities

Retirement benefit liability
Provision for point card certificatesTotal liabilities

3

(Millions of yen)
As of September 30, 2022

As of March 31, 2023

Net assets
Shareholders' equity
Share capital

5,305

5,305

Capital surplus
Retained earnings

13,253
2,553

13,253
3,137

Treasury shares(3,342)(3,119)Total shareholders' equity

17,77018,577

1,481
(46)

1,671
(21)

(73)

(66)

1,361

1,583

665

381

19,797

20,54154,30755,556

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, 2022

March 31, 2023

Net sales
Cost of sales

34,386
14,83336,592
15,434Gross profit

19,552

21,158Selling, general and administrative expenses

20,09020,399(537)

759

Interest income
Dividend income

814

13
17

Rental income from real estate
Compensation income

239
49

193
80

Subsidies for employment adjustment
Other316
176–
72

Total non-operating income

805

376

Operating profit (loss)Non-operating income

Non-operating expenses
Interest expenses

8481

Rental expenses on real estate
Other3233

2919

Total non-operating expenses

150131117

1,005

Gain on sale of non-current assets
Gain on sale of investment securities

048

810
–

Penalty income
Other––

440
230

Total extraordinary income

48

1,480

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

020

Impairment losses
Other

1,291
28

1,526
68

Total extraordinary losses

1,320

1,614

Profit (loss) before income taxes(1,153)871

Income taxes - current
Income taxes - deferred

124
(15)

447
(325)

Total income taxes

108

121

(1,262)

750

Profit (loss)
Loss attributable to non-controlling interests

(579)

(302)

Profit (loss) attributable to owners of parent

(683)

1,052

5

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

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

March 31, 2022

March 31, 2023
(1,262)750

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

(292)
(23)

18943Remeasurements of defined benefit plans, net of tax(7)

6

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

6(323)

239(1,586)

989

(978)

1,274

(607)

(284)

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Six months ended

Six months ended

March 31, 2022

March 31, 2023
(1,153)8715901,291513
1,526

Loss (gain) on valuation of derivatives
Increase (decrease) in allowance for doubtful accounts

0(0)

–(0)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for

(33)

(17)

Depreciation
Impairment losses

directors (and other officers)
Increase (decrease) in provision for point card certificates(31)–(116)(2)

Increase (decrease) in provision for bonuses
Long-term loans offset with a rent

(138)
65

(4)
61

Long-term deposit offset with a rent
Gain on sale of non-current assets

5(0)5(810)

Loss on retirement of non-current assets
Interest and dividend income

0(23)20(30)

Interest expenses
Foreign exchange losses (gains)

84(8)

81
3

Penalty income
Decrease (increase) in trade receivables–(1,429)(440)(1,449)Decrease (increase) in inventories
Increase (decrease) in trade payables

907
2,159

517
2,143736
242

33(133)

Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Other, net

(188)

(64)

Subtotal

2,959

2,823

Interest and dividends received

1622

Interest paidPenalty income received

(79)
–(81)
189

Income taxes paid
Income taxes refund(192)
2(178)
6

Net cash provided by (used in) operating activities

2,705

2,782

Cash flows from investing activities
Payments into time deposits

(95)

(27)

Proceeds from sale and redemption of securities
Purchase of property, plant and equipment

325
(473)

–(494)

Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment

0(61)

1,212
(45)

Purchase of intangible assets
Payments of leasehold and guarantee deposits

(221)
(112)

(45)
(128)

Proceeds from refund of leasehold and guarantee deposits
Proceeds from collection of loans receivable

188
17161
2

Other, net

55

(5)

(377)

627

Net cash provided by (used in) investing activities

7

(Millions of yen)

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

Six months ended

Six months ended

March 31, 2022

March 31, 2023
535

(1,193)

Repayments of long-term borrowings
Purchase of treasury shares

(364)
(0)

(364)
(0)

Dividends paid
Dividends paid to non-controlling interests(290)(0)

(289)
(0)

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

(4)

(4)

(123)

(1,852)25(9)Net increase (decrease) in cash and cash equivalents

2,230

1,548

Cash and cash equivalents at beginning of period

6,237

6,547

Cash and cash equivalents at end of period

8,468

8,095

8