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, 2022
(Based on Japanese GAAP)May 13, 2022
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 13, 2022
June 6, 2022

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

NoNo

TEL

045(825)7700(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended March 31, 2022 (from October 1, 2021 to March 31, 2022)(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, 2022
34,386–(537)–
117–(683)–
Six months ended March 31, 2021
33,64411.3(2,756)–(2,524)–(2,794)–
Earnings per share

Diluted earnings per share

Yen(23.46)(95.99)Six months ended March 31, 2022
Six months ended March 31, 2021

Yen––(2) Consolidated financial position
Total assets
As of March 31, 2022
As of September 30, 2021

Net assets

Millions of yen
59,83058,835Equity ratio

Millions of yen
23,19725,051

%
36.9
39.7

2. Cash dividends
Annual dividends per share

Year ended September 30, 2021
Year ending September 30, 2022
Year ending September 30, 2022
(Forecast)

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
10.00
10.00

Yen–

Yen
10.00

Total
Yen
20.00

–

10.00

20.00

3. Forecast of consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)
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
75,00028.0
700–
1,400–
300
–
10.30

1

4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2022
(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
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, 2022

31,146,685 shares As of September 30, 2021

31,146,685 shares

Number of treasury shares at the end of the period
As of March 31, 2022

2,031,027 shares As of September 30, 2021

2,030,693 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2022

29,115,859 shares Six months ended March 31, 2021

229,116,371 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,339
2,092

8,665
3,528

Merchandise and finished goods
Work in process

17,9270

17,0292

Raw materials and supplies
Other

320
1,493

317
1,519

Allowance for doubtful accounts

(5)

(0)

28,16731,062

4,819

4,027

Land
Other, net

10,488446

10,487388

Total property, plant and equipment

15,755

14,902

1,240

1,165

441

389

1,681

1,554

Investment securities
Leasehold and guarantee deposits

3,530
8,248

2,838
8,126

Retirement benefit asset
Other

467
1,017

502
879

Allowance for doubtful accounts

(31)

(37)

Total investments and other assets

13,231

12,31030,66828,76858,83559,830Notes and accounts payable - trade
Electronically recorded obligations - operating

1,453
1,531

2,317
2,944

Short-term borrowings
Current portion of long-term borrowings

13,090728

13,625
728

461
499

368
361

Other

3,677

5,100

Total current liabilities

21,441

25,446

8,406
619

8,042
586

31

–

Provision for point card certificates
Other642
2,643

38
2,519

Total non-current liabilities

12,342

11,18633,784

36,633

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

Intangible assets
Trademark right
Other
Total intangible assets
Investments and other assets

Total non-current assets
Total assets
Liabilities
Current liabilities

Income taxes payable
Provision for bonuses

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)

Total liabilities

3

(Millions of yen)
As of September 30, 2021

As of March 31, 2022

Net assets
Shareholders' equity
Share capital

5,305

5,305

Capital surplus
Retained earnings

13,253
6,349

13,253
5,393

Treasury shares(3,342)(3,342)

Total shareholders' equity

21,56520,609

1,698
47

1,416
41

30

22

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

1,776

1,480

Non-controlling interests

Total accumulated other comprehensive income

1,708

1,106

Total net assets

25,051

23,197

58,83559,830Total 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, 2021

March 31, 2022

Net sales
Cost of sales

33,644
15,13634,386
14,833Gross profit

18,507

19,552

Selling, general and administrative expenses

21,26420,090Operating loss

(2,756)(537)

Interest income
Dividend income

944

814

Rental income from real estate
Subsidies for employment adjustment

233
280

239
316

Other91

226

Total non-operating income

659

805

Interest expenses
Rental expenses on real estate

75
2984
32

Arrangement Fee
Other

255
67–
33

Total non-operating expenses

427

150(2,524)

117

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

0–

048

Total extraordinary income

048

83

0808
30

1,291
28

Non-operating income

Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Other922

1,320

Loss before income taxes

Total extraordinary losses(3,446)(1,153)

Income taxes - current
Income taxes - deferred

140(0)

124(15)

Total income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent

5

140

108

(3,586)(1,262)

(791)

(579)

(2,794)(683)

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

Loss
Other comprehensive income

Six months ended

Six months ended

March 31, 2021

March 31, 2022
(3,586)(1,262)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment521
88(292)(23)

Remeasurements of defined benefit plans, net of tax

3(7)

612

(323)

Comprehensive income

Total other comprehensive income(2,973)(1,586)Comprehensive income attributable toComprehensive income attributable to owners of parent(2,232)

(978)

(740)

(607)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Loss before income taxes

Six months ended

Six months ended

March 31, 2021

March 31, 2022
(3,446)(1,153)

Depreciation
Impairment losses

690
808

590
1,291Loss (gain) on valuation of derivatives
Increase (decrease) in allowance for doubtful accounts

(1)
(1)

0(0)

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

(11)

(33)

directors (and other officers)
Increase (decrease) in provision for point card certificates

2(31)

(95)

(116)

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

(122)
74

(138)
65

Long-term deposit offset with a rent
Loss on retirement of non-current assets

383

50

Interest and dividend income
Interest expenses

(54)
75

(23)
84

Foreign exchange losses (gains)
Decrease (increase) in trade receivables(6)(1,137)(8)(1,429)Decrease (increase) in inventories
Increase (decrease) in trade payables

1,092
1,768

907
2,159

753
365

736
242

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

594

(188)

Subtotal

1,434

2,959

Interest and dividends received

46

16

Interest paid
Income taxes paid

(70)
(180)

(79)
(192)

Income taxes refund

78

2

1,308

2,705––(95)325

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(496)
6(473)
0

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

(79)
(168)

(61)
(221)

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

(55)
586

(112)
188

Proceeds from collection of loans receivable
Other, net

192

1755

(186)

(377)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from sale and redemption of securities

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, 2021

March 31, 2022
(4,460)535

9,523(6,469)–(364)

Purchase of treasury shares
Dividends paid

(0)
(1)

(0)
(290)

Dividends paid to non-controlling interests
Other, net

(4)
(18)

(0)
(4)

Net cash provided by (used in) financing activities(1,430)(123)

Effect of exchange rate change on cash and cash equivalents

2225

Net increase (decrease) in cash and cash equivalents

(285)

2,230

Cash and cash equivalents at beginning of period

6,121

6,237

Cash and cash equivalents at end of period

5,835

8,468

Proceeds from long-term borrowings
Repayments of long-term borrowings

8