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 Year Ended September 30, 2023
(Based on Japanese GAAP)

November 14, 2023

Company name:
Kufu Company Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

4376
URL https://kufu.company/
Director & Representative Executive Officer Yoshiteru Akita

Inquiries:
Director & Executive Officer
Scheduled date of ordinary general meeting of shareholders:

Jun Kanma
December 21, 2023

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

December 22, 2023–

Preparation of supplementary material on financial results:
Holding of 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 year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)(1) Consolidated operating resultsPercentages 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%
Year ended September 30, 2023
20,486
10.0
1,882
20.8
1,735
17.3
548
21.1
Year ended September 30, 2022
18,625–
1,558–
1,479–452–(Note) EBITDA (operating profit + depreciation and amortization): Year ended September 30, 2023: 2,926 million yen [13.3%]
Year ended September 30, 2022: 2,581 million yen [–%]
Earnings per shareProfit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
9.52
5.4
8.2
9.2
7.77
4.4
6.8
8.4

Diluted earnings pershare

Yen
9.56
7.80

Year ended September 30, 2023
Year ended September 30, 2022
(2) Consolidated financial position

Total assets
As of September 30, 2023
As of September 30, 2022
(3) Consolidated cash flows

Year ended September 30, 2023
Year ended September 30, 2022

Net assets

Equity ratio

Millions of yen
20,973
21,329Millions of yen
11,596
11,663

Cash flows fromoperating activities
Millions of yen
4,754
1,553

Cash flows frominvesting activities
Millions of yen(886)(1,042)

Net assets per share%
48.0
47.7

Yen
173.58177.77

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,749)9,369(1,042)7,238

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2022
Year ended September 30, 2023
Year ending September 30, 2024
(Forecast)of dividendsTotal cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

%

––

0.00
0.00

––

0.00
0.00

0.00
0.00

––––

–
–

–

0.00

–

0.00

0.00

1–

3. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

58,301,719 shares As of September 30, 2022

58,286,959 shares

Number of treasury shares at the end of the period
As of September 30, 2023

292,268 shares As of September 30, 2022

1,001,413 shares

57,340,844 shares Year ended September 30, 2022

58,038,428 shares

Average number of shares during the period
Year ended September 30, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2022 As of September 30, 2023

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
Buildings and structures, net
Other, net
Total 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
Share issuance costs
Total deferred assets
Total assets

3

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

9,405
1,129
321
185
6
1,232
1,334
525
(18)
14,122

300
96
397

456
212
669

3,526
527
4,053

3,591
7944,386

678
825
834
(291)
2,047
6,498

627
614
780
(226)
1,795
6,851

4
4
21,329––20,973

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
Contract liabilities
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 (andother 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 income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets(Millions of yen)
As of September 30, 2022 As of September 30, 2023

4550
8
4
2,981
1,034
3313
1,323
30
445
244
59
691
7,295

823
4
5
2,272
997
0
457
1,259
11
4
45–
–
811
6,693

8
1,840
95
225
146–

–
2,079
129
32
101
21–

41

54
2,370
9,666

274
2,682
9,376

13
9,016
1,191(443)
9,777

13
8,452
1,739(132)
10,073

399

(13)

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

9(4)
10
1,517
11,596
20,973

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
Fiscal year ended
September 30, 2022
September 30, 2023
Net sales
18,625
20,486
Cost of sales
9,411
10,686Gross profit
9,213
9,800
Selling, general and administrative expenses
7,655
7,917
Operating profit
1,558
1,882
Non-operating income
Interest income
01
Foreign exchange gains
423
Subsidy income
92
Insurance income–17
Surrender value of insurance policies
032
Other35
15
Total non-operating income
8772
Non-operating expenses
Interest expenses
4749
Commission expenses
5973
Provision for doubtful accounts
5–
Loss on equity method investment
4563
Other
834
Total non-operating expenses
165
220
Ordinary profit
1,479
1,735
Extraordinary income
Gain on sale of non-current assets
00
Gain on reversal of share acquisition rights
00
Gain on extinguishment of tie-in shares–
10
Gain on reversal of provision for share awards–
31
Gain on reversal of provision for loss on relocation–
51
Other–
2Total extraordinary income
097
Extraordinary lossesLoss on sale of non-current assets
80
Impairment losses
6867
Provision for loss on business liquidation
814
Loss on sale of shares of subsidiaries–41
Provision for loss on relocation
244
–
Other
35
37
Total extraordinary losses
440
151
Profit before income taxes
1,040
1,680
Income taxes - current
590
656
Income taxes - deferred(159)231
Total income taxes
431
888
Profit608
792
Profit attributable to non-controlling interests
155
244
Profit attributable to owners of parent
452
548

5

Consolidated statements of comprehensive income

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

Fiscal year ended
September 30, 2022
608

(Millions of yen)
Fiscal year ended
September 30, 2023
792

(56)
7(48)
559

(412)
2(410)
382

403

138

155

244

Consolidated statements of changes in equity
Fiscal year ended September 30, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

Retained earnings

109,01333

Total shareholders'equityTreasury shares

738–9,761

Changes during period
Issuance of new shares

6

Profit attributable toowners of parent

452

452

Purchase of treasury shares

(443)

(443)

Capital increase of
consolidated subsidiaries

00

Change in ownershipinterest of parent due totransactions with noncontrolling interests00

Net changes in items otherthan shareholders' equity
Total changes during period

33452

(443)

15

Balance at end of period139,016

1,191(443)

9,777

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income455(0)

455

Share acquisitionrightsNon-controllinginterests

Total net assets

8

1,314

11,540Changes during period
Issuance of new shares

6

Profit attributable toowners of parent

452

Purchase of treasury shares(443)

Capital increase of
consolidated subsidiaries

0

Change in ownershipinterest of parent due totransactions with noncontrolling interests

0Net changes in items otherthan shareholders' equity

(56)

7(48)

1154

106

Total changes during period

(56)

7(48)

1154

122

Balance at end of period

399

6406

10

1,469

11,663

7

Fiscal year ended September 30, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning ofperiod

Capital surplus

Retained earnings

13

9,016

00

Total shareholders'equity

Treasury shares

1,191

(443)

9,777

Changes during period
Issuance of new shares

1

Profit attributable toowners of parent

548

548

Purchase of treasury shares
Changes by shareexchanges

30(465)

(465)

776

807

Purchase of shares ofconsolidated subsidiaries

(600)

(600)

Capital increase of
consolidated subsidiaries

66

Change in ownershipinterest of parent due totransactions with noncontrolling interests

(2)

(2)

Net changes in items otherthan shareholders' equity
Total changes during period0(564)

548

311

295

Balance at end of period

13

8,452

1,739

(132)

10,073

Accumulated other comprehensive income

Balance at beginning ofperiod

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income399

6406

Share acquisitionrightsNon-controllinginterests

Total net assets

101,469

11,663

Changes during period
Issuance of new shares

1

Profit attributable toowners of parent548

Purchase of treasury shares(465)

Changes by shareexchanges

807

Purchase of shares ofconsolidated subsidiaries(600)

Capital increase of
consolidated subsidiaries

6

Change in ownershipinterest of parent due totransactions with noncontrolling interests(2)

Net changes in items otherthan shareholders' equity(412)

2(410)

048(361)

Total changes during period(412)

2(410)

048(66)

Balance at end of period

(13)

9(4)

10

1,517

11,596

8Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
September 30, 2023

Fiscal year ended
September 30, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Loss (profit) on equity method investment
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 prepaid expenses
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 contract liabilities
Decrease (increase) in accounts receivable - other
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

9

1,040
358
68
664
45
39

1,680
394
67
649
63
(86)

59(48)

244
(0)
47(5)
8(40)
258(55)221(307)80(81)
(473)
(50)

(144)
(1)
49
0(0)
154
1,010
38(45)
1,531
100(29)
(78)
9–

40–
(0)
2,123
54(662)
(46)
976
1,553

6(28)
5,333
1(563)
(48)
2
29
4,754

(Millions of yen)
Fiscal year ended
September 30, 2023

Fiscal year ended
September 30, 2022

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of businesses
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments for asset retirement obligations
Decrease (increase) in short-term loans receivable
Purchase of investment securities
Payments for investment partnerships in capital
Proceeds from cancellation of insurance funds
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

10(40)
29(222)
–
(39)

(93)
0(457)
(61)
(240)

5206

–
–(723)
(50)
–

(43)
30
(10)
–
102

–(443)–

109(1)(1,042)15(886)

(Millions of yen)
Fiscal year ended
September 30, 2023

Fiscal year ended
September 30, 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
Increase in cash and cash equivalents resulting frommergerCash and cash equivalents at end of period

11(1,206)
2,150(1,520)(1,003)850(1,098)

5

1(16)
(443)
2(16)
(465)
0

12

1(12)

(4)

(13)
(1,042)(14)(1,749)19

6(511)
7,750

2,125
7,238

–

5

7,238

9,369