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 Three Months Ended August 31, 2023
(Based on Japanese GAAP)
October 12, 2023
Company name:
E･J Holdings Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

2153
President

URL

https://www.ej-hds.co.jp
Yuji Kotani

Inquiries:
Director
Scheduled date to file Quarterly Securities Report:

Masanori Hamano
October 13, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

086(252)7520(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended August 31, 2023 (from June 1, 2023 to August 31, 2023)(1) Consolidated operating results (cumulative)

Three months ended August 31, 2023
Three months ended August 31, 2022

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%
3,207 (12.1)(952)–(893)–(656)–
3,648–(890)–(819)–(631)–
Earnings per share

Diluted earnings per share

Yen(41.97)(40.47)

Three months ended August 31, 2023
Three months ended August 31, 2022

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2023
As of May 31, 2023

Net assets

Millions of yen
35,79039,194Equity ratio

Millions of yen28,541
29,869%79.7
76.2

2. Cash dividends
Annual dividends per share

Year ended May 31, 2023
Year ending May 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00

Yen–

Yen
50.00

Yen
50.00

0.00

–

55.00

55.00

Year ending May 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 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
38,300
2.1
4,600
3.3
4,800
3.8
3,200
4.9
204.81

14. Notes(1) Changes in significant subsidiaries during the three months ended August 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 statementsChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Yes

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 August 31, 2023

16,078,920 shares As of May 31, 2023

16,078,920 shares

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

449,502 shares As of May 31, 2023449,402 shares

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

15,629,478 shares Three months ended August 31, 2022

215,615,180 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2023

As of August 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade, and contract assets

17,092
5,495

12,115
2,967

Securities
Inventories

100
2,913

–
5,633

890
(6)

1,646
(6)

26,48522,3552,7312,335

2,691
2,335

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net

599

611

5,666

5,638

Goodwill
Other

741
1,077

711
1,290

Total intangible assets

1,818

2,002

Investments and other assets
Investment securities

3,004

3,222

Bad debts
Investment property, net

1432

1430

Deferred tax assets
Retirement benefit asset

266
114

527
116

Other
Allowance for doubtful accounts

1,506
(102)

1,595
(99)

Total investments and other assets

5,223

5,794

12,70813,43439,19435,790Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets3

(Millions of yen)
As of May 31, 2023

As of August 31, 2023

Liabilities
Current liabilities
Accounts payable - operating

1,083

421

229
490

209
107

2,564
–

3,080
770

22245

–
246

Other

3,660

1,458

Total current liabilities

8,296

6,293

Long-term borrowings
Deferred tax liabilities

128
65

76
65

Retirement benefit liability
Provision for share awards for directors (and other422

382

116

124

Current portion of long-term borrowings
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on orders received

Non-current liabilities

officers)
Provision for Employee Stock Ownership Plan Trust

36

39

Long-term accounts payable - other
Provision for loss on guarantees

176
7176
6

Other75

84

Total non-current liabilities

1,028

955

9,325

7,248

Share capital
Capital surplus

2,803
4,379

2,803
4,379

Retained earnings
Treasury shares

22,371(454)

20,911(454)

Total shareholders' equity

29,10027,640Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

670

804

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(2)
93

087

Total accumulated other comprehensive income

761

892

88

29,86928,54139,19435,790Non-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)Three months ended

Three months ended

August 31, 2022

August 31, 2023

Net sales
Cost of sales

3,648
2,563

3,207
2,155

Gross profit

1,085

1,052

Selling, general and administrative expenses

1,975

2,004

Operating loss

(890)

(952)

Interest income
Dividend income

414315

Share of profit of entities accounted for using equity method
Rental income from real estate

32
830
10

Other

32

9Total non-operating income

9270

Interest expenses
Rental expenses on real estate

0306

Guarantee commission
Provision of allowance for doubtful accounts

3113–

Non-operating income

Non-operating expenses

Other2

1

Total non-operating expenses

21

11(819)

(893)

24

–

6–

Ordinary loss
Extraordinary losses
Loss on retirement of non-current assets
Office relocation expenses
Total extraordinary losses
Loss before income taxes

31–

(850)

(893)

Income taxes - current

6372

Income taxes - deferred

(281)

(309)

Total income taxes

(218)

(237)

Loss(631)(656)

Loss attributable to owners of parent

(631)

(656)

5

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

Loss
Other comprehensive income

Three months ended

Three months ended

August 31, 2022

August 31, 2023
(631)

(656)

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

40(0)

134
3

Remeasurements of defined benefit plans, net of tax

(13)

(5)

26131

Comprehensive income

Total other comprehensive income

(605)

(524)

Comprehensive income attributable toComprehensive income attributable to owners of parent(605)

(524)

00

Comprehensive income attributable to non-controllinginterests

6