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)
Company name:

Stock exchange listing: Tokyo
Stock code:
4376
Representative:
Inquiries:

May 15, 2023

Kufu Company Inc.
URL

https://kufu.company/

Director & Representative Executive Officer Yoshiteru Akita
Director & Executive OfficerJun Kanma

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

May 15, 2023–

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

Yes
Yes

TEL

03-6264-2323(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 changesProfit 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
9,246
1.3
585 (24.3)
489 (31.9)
90 (62.7)
Six months ended March 31, 2022
9,127–
773–
717–
241
–
(Note) EBITDA (operating profit + depreciation and amortization):

Six months ended March 31, 2023: 1,104 million yen [(14.0)%]
Six months ended March 31, 2022: 1,284 million yen [–%]

Earnings per share

Diluted earnings per share
Yen1.57
4.15

Six months ended March 31, 2023
Six months ended March 31, 2022

Yen
1.57
4.13

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

Net assets

Millions of yen
22,53521,329Equity ratio

Millions of yen
11,82011,663

%
45.6
47.7

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
0.00
0.00Yen–Yen
0.00

Yen
0.00

–

0.00

0.00

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
Net sales
Full year

Millions of yen
21,000Operating profit% Millions of yen
12.8
2,0001

EBITDA% Millions of yen
28.4
3,100%
20.1

Total

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):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes
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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(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

58,299,259 shares As of September 30, 2022

58,286,959 shares

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

1,001,793 shares As of September 30, 2022

1,001,413 shares

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

57,295,052 shares Six months ended March 31, 2022

258,259,005 shares

Quarterly consolidated financial statements
Consolidated balance sheets

As of September 30, 2022

(Millions of yen)
As of March 31, 2023

7,269
1,007
84
168
2
2,758
2,979
596
(38)
14,826

7,621
1,189
273
414
2
2,160
2,998
659
(63)
15,255

397

690

3,526
527
4,053

3,913
687
4,601

678
825
834
(291)
2,047
6,498
4
21,329

660
702
868
(245)
1,985
7,277
1
22,535

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
MerchandiseWork in process
Raw materials and supplies
Real estate for sale
Operational investment securities
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets3

As of September 30, 2022

(Millions of yen)
As of March 31, 2023

550
8
4
2,981
1,034
3
313
1,104
30
4
45
244
59
910
7,295

758
8
4
3,608
919
4
229
1,217
28
4
45
–
5
1,119
7,954

8
1,840
95
225
146–

–
1,844
130
242
127
23–

87

54
2,370
9,666

303
2,760
10,71513
9,016
1,191(443)
9,777

13
9,017
1,281(444)
9,869

399

399

6
406
10
1,469
11,663
21,329

1401
10
1,539
11,82022,535

Liabilities
Current liabilities
Accounts payable - trade
Outstanding claims
Policy reserve
Short-term borrowings
Current portion of long-term borrowings
Asset retirement obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for point services
Correction related cost
Provision for loss on relocation
Provision for loss on business liquidation
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Asset retirement obligations
Deferred tax liabilities
Provision for share awards
Retirement benefit liability
Provision for retirement benefits for directors(and other officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive incomeShare acquisition rights
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
9,127
9,246
Cost of sales
4,513
4,707
Gross profit
4,614
4,538
Selling, general and administrative expenses
3,841
3,953
Operating profit
773
585
Non-operating income
Interest income01
Foreign exchange gains
16–Insurance income
018
Other
1010
Total non-operating income
2729
Non-operating expenses
Interest expenses
2123
Commission expenses
5140
Provision for doubtful accounts
59
Foreign exchange losses–
14
Loss on equity method investment
–
19
Other
418
Total non-operating expenses
82
125
Ordinary profit
717
489
Extraordinary income
Gain on sale of non-current assets
00
Gain on reversal of share acquisition rights
00
Gain on differences between asset retirement–
2obligations and actual asset retirement costs
Gain on reversal of provision for share awards–
13
Gain on reversal of provision for loss on relocation–
51
Total extraordinary income
067
Extraordinary losses
Loss on retirement of non-current assets
02Impairment losses
19Provision for loss on business liquidation
113
Loss on business liquidation–
13
Loss on litigation
24
Other
65
Total extraordinary losses
2239
Profit before income taxes
696
517
Income taxes - current
313
220
Income taxes - deferred
66
141
Total income taxes
379
362
Profit316
155
Profit attributable to non-controlling interests
7465
Profit attributable to owners of parent
241905

Consolidated statements of comprehensive income (cumulative)

316(Millions of yen)Six months ended
March 31, 2023
155(1,312)
3(1,309)
(993)

0(5)
(4)
150(1,067)

85

74

65

Six months ended
March 31, 2022

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

6Consolidated statements of cash flows(Millions of yen)Six months ended
March 31, 2023

Six months ended
March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on businessliquidation
Increase (decrease) in provision for loss on relocation
Interest income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in investment securities for sale
Decrease (increase) in inventories
Decrease (increase) in real estate for sale
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in unearned revenue
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Income taxes paid
Interest paid
Subsidies received
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments for asset retirement obligations
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

7696
179
1332
25517186
9332(35)

5(43)

–(0)
21(0)
(0)
(169)
–(112)
(170)
102
18
33
51(144)(1)
23
2(0)
61(17)
(230)
584
40
118
100
53

78

60

10(170)933
54(351)
(21)
–
22
637

(68)
54
1,604
1(291)
(22)
1
6
1,300

(32)
0(95)
(4)

(109)
0(184)
(226)

3

151

–
(723)

(38)
––(413)

–

109

(50)
(902)

11(700)(Millions of yen)Six months ended
March 31, 2023

Six months ended
March 31, 2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares resulting fromexercise of share acquisition rights
Redemption of bonds
Purchase of treasury shares
Proceeds from issuance of share acquisition rights
Proceeds from share issuance to non-controllingshareholders
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other, net
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

8(1,229)
1,300(456)332
50(611)

5

1(8)
(0)
1(8)
(0)
0–

0

(10)

(4)

(6)
(406)

(7)
(247)

10

(6)

(660)
7,750
7,089

346
7,238
7,584