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 May 31, 2024
(Based on Japanese GAAP)
July 12, 2024
Company name:

E･J Holdings Inc.

Stock exchange listing: Tokyo
Stock code:
2153
Representative:
Inquiries:URL

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

President
DirectorYuji Kotani
Masanori Hamano

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

August 29, 2024
August 30, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

August 30, 2024
Yes

Holding of financial results meeting:

Yes

TEL086(252)7520(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended May 31, 2024 (from June 1, 2023 to May 31, 2024)(1) Consolidated operating results
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%
Year ended May 31, 2024
37,207(0.8)
4,348(2.3)
4,597(0.6)
3,032(0.6)
Year ended May 31, 2023
37,509
–
4,451
–
4,624
–
3,051
–
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
9.7
11.4
11.7
–
10.6
11.8
11.9

Diluted earnings pershare

Earnings per share
Yen
193.62
195.32

Year ended May 31, 2024
Year ended May 31, 2023
(2) Consolidated financial position

Total assets
As of May 31, 2024
As of May 31, 2023

Net assets

Equity ratio

Millions of yen
41,42339,194

Millions of yen
32,592
29,869Cash flows fromoperating activities
Millions of yen
3,940
1,382

Cash flows frominvesting activities
Millions of yen(941)(1,487)

Net assets per share%
78.7
76.2

Yen
2,078.04
1,910.56(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,058)17,935(924)
15,994

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

Year ended May 31, 2023
Year ended May 31, 2024
Year ending May 31, 2025
(Forecast)of dividends
Total 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

––

50.00
55.00

50.00
55.00

803
884

25.5
28.4

2.7
2.8

–

25.00

–

40.00

65.00

130.4

3. Forecast of consolidated financial results for the year ending May 31, 2025 (from June 1, 2024 to May 31, 2025)
Net sales
Full year

Millions of yen
38,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
3.5
4,850
11.5
4,950
7.7
3,350
10.5
213.904. Notes(1) Changes in significant subsidiaries during the year ended May 31, 2024
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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:
Changes in accounting policies due to other reasons:No
Yes

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2024

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 May 31, 2024

398,869 shares As of May 31, 2023

449,402 shares

15,661,776 shares Year ended May 31, 2023

15,624,348 shares

Average number of shares during the period
Year ended May 31, 20242

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

As of May 31, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

17,092
4,429

19,186
3,943

Contract assets
Securities

1,065
100904–Inventories
Advance payments to suppliers

2,913
42

2,924
94

Prepaid expenses
Other462
386

617
491

Allowance for doubtful accounts

(6)

(8)

26,48528,151

5,906

5,871

Accumulated depreciation(3,175)(3,203)

Buildings and structures, net

2,731

2,668

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

Machinery, equipment and vehicles

259

265

Accumulated depreciation

(223)

(232)

36

32

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

2,185

2,150

Accumulated depreciation(1,687)(1,744)497405

88

132

(24)

(48)

Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
LandConstruction in progress

64

84

2,335

2,333

0

247

5,666

5,772

Goodwill
Other

741
1,077

621
1,510

Total intangible assets

1,818

2,131

Investments and other assets
Investment securities

3,004

3,161

Bad debts
Investment property

1788–789

Accumulated depreciation

(355)

(364)

Investment property, net

432

424

266

226

Retirement benefit asset
Other

114
1,506

143
1,500

Allowance for doubtful accounts

(102)

(88)

Total property, plant and equipment
Intangible assets

Deferred tax assets

Total investments and other assets
Total non-current assets
Total assets

3

5,223

5,368

12,70813,27139,194

41,423

(Millions of yen)
As of May 31, 2023

As of May 31, 2024

Liabilities
Current liabilities
Accounts payable - operating
Current portion of long-term borrowings

1,083
229

891
111

Accounts payable - otherAccrued expenses

728
2,345

847
2,126

Income taxes payable
Accrued consumption taxes

490
404

992
296

2,564
22

2,282
28

245
181

265243Total current liabilities

8,296

8,084

Non-current liabilities
Long-term borrowings

128

17

Lease liabilities
Deferred tax liabilities

52
65

65
238

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

62

116

119

Contract liabilities
Provision for bonuses for directors (and other officers)
Provision for loss on orders received
Otherofficers)
Provision for Employee Stock Ownership Plan Trust
Long-term accounts payable - other
Provision for loss on guarantees

36

39

176
7176
3

Guarantee deposits received

2324

Total non-current liabilities

1,028

746

9,325

8,831

Share capital
Capital surplus

2,803
4,379

2,803
4,379

Retained earnings
Treasury shares

22,371(454)

24,600(403)

Total shareholders' equity

29,10031,379Total liabilities
Net assets
Shareholders' equity

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

670

932

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(2)
93(7)
279

Total accumulated other comprehensive income

761

1,204

Non-controlling interests
Total net assets
Total liabilities and net assets

488

29,86932,592

39,194

41,423

Consolidated statements of income and consolidated statements of comprehensive incomeConsolidated statements of income(Millions of yen)
Fiscal year ended
May 31, 2023

Fiscal year ended
May 31, 2024

Net sales
Completed service contracts
Cost of sales

37,50937,207

24,977

24,732

12,531

12,474

739
2,702

710
2,824

Bonuses
Provision for bonuses for directors (and other officers)

993
22738
28

Retirement benefit expenses
Provision for share awards for directors (and other officers)

79407833Provision for share-based remuneration for employee
Legal welfare expenses

11679

10649

Travel and transportation expenses
Rent expenses

184463191609Depreciation
Amortization of goodwill

174
121

255
120

Other

1,867

1,873

Total selling, general and administrative expenses

8,080

8,125

4,451

4,348

Cost of completed service contracts
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances

Operating profit
Non-operating income
Interest income

149

Dividend income
Share of profit of entities accounted for using equity method

4294

107
108

Rental income from real estateConsulting fee income

386446

Other4038

Total non-operating income

235

313

Interest expenses
Rental expenses on real estate

1224

1326

Guarantee commission
Other

10131211

Total non-operating expenses

6165

Non-operating expenses

Ordinary profit

4,624

4,597

Extraordinary income
Gain on sale of non-current assets

20

Total extraordinary income

205

(Millions of yen)
Fiscal year ended
May 31, 2023

Fiscal year ended
May 31, 2024

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

64–32

Office relocation expenses

6470

10

Profit before income taxes

Total extraordinary losses

4,556

4,587

Income taxes - current
Income taxes - deferred

1,223
280

1,525
29

Total income taxes

1,504

1,555

Profit

3,051

3,032

Profit attributable to owners of parent

3,051

3,032

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

May 31, 2023

May 31, 2024
3,051

3,032

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

57(0)

262
(4)

Remeasurements of defined benefit plans, net of tax

(67)

185

(10)

443

Comprehensive income

Total other comprehensive income

3,041

3,476

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,041

3,475

00

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended May 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,803

Retained earnings4,379

20,050

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders'equityTreasury shares(467)

26,765

(38)
2,803

4,379

(38)

20,011(467)

26,726

Changes during period
Dividends of surplus

(691)

(691)

Profit attributable to owners of parent

3,051

3,051

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares1313

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

–

2,360

13

2,373

2,803

4,379

22,371(454)

29,100Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

612

Foreigncurrencytranslation
adjustment

TotalNon-controlling
Remeasurements
accumulated otherinterestsof defined benefit
comprehensive
plansincome
(0)

160

771

7

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

27,544
(38)

612

(0)

160

771

727,505

Changes during period
Dividends of surplus(691)

Profit attributable to owners of parent

3,051

Purchase of treasury shares(0)

Disposal of treasury shares13Net changes in items other thanshareholders' equity

57

(1)

(67)

(10)

0(10)

Total changes during period

57(1)

(67)

(10)

02,363

Balance at end of period

670

(2)

93761

8

29,8698Fiscal year ended May 31, 2024
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,803

Retained earnings

4,379

Total shareholders'equityTreasury shares

22,371(454)

29,100Changes during period
Dividends of surplus(803)

Profit attributable to owners of parent

3,032

(803)
3,032Purchase of treasury shares
Disposal of treasury shares

0(0)

(0)

5151

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period–

02,228

50

2,279

2,803

4,379

24,600(403)

31,379

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

670

Foreigncurrencytranslation
adjustment

Total
Non-controlling
Remeasurements
accumulated otherinterestsof defined benefit
comprehensiveplansincome(2)

93761

8

Total net assets

29,869Changes during period
Dividends of surplus(803)

Profit attributable to owners of parent

3,032

Purchase of treasury shares(0)

Disposal of treasury shares

51

Net changes in items other thanshareholders' equity

262

(5)

185

443

0443

Total changes during period

262

(5)

185

443

0

2,723

Balance at end of period

932

(7)

279

1,204

832,5929

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

May 31, 2023

May 31, 2024
4,556

4,587Depreciation
Amortization of goodwill

539
121619120

Increase (decrease) in provision for bonuses for directors (andother officers)(3)5Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on orders received

(9)
(18)

(11)
19

Increase (decrease) in provision for loss on guarantees
Increase (decrease) in retirement benefit liability

(3)
(58)

(3)
(92)

Increase (decrease) in provision for share awards for directors(and other officers)

40

2Increase (decrease) in Provision for Management Board
Incentive Plan Trust-NCL

15

2

Interest and dividend income
Interest expenses(56)
12(116)
13

Loss on retirement of non-current assets
Share of loss (profit) of entities accounted for using equity

69

5(94)

(108)

(253)

649

643

(10)

(1,128)
(789)

(281)
(159)

Increase (decrease) in accrued consumption taxes
Other, net

(49)
(330)

(108)
(280)

Subtotal

3,203

4,851

65
(12)

122
(13)

Income taxes paid

(1,873)(1,019)Net cash provided by (used in) operating activities

1,382

3,940

Payments into time deposits
Proceeds from withdrawal of time deposits(230)
200(353)200

Proceeds from redemption of securities
Purchase of property, plant and equipment–(617)

100(510)Proceeds from sale of property, plant and equipment
Purchase of intangible assets

2(797)

0(692)

Purchase of investment securities
Proceeds from sale of investment securities(1)–(171)
653

Proceeds from redemption of investment securities
Purchase of shares of subsidiaries

4–50(220)(48)

2(1,487)(941)

methodDecrease (increase) in accounts receivable - trade, andcontract assets
Decrease (increase) in inventories
Increase (decrease) in contract liabilities
Increase (decrease) in trade payables

Interest and dividends received
Interest paid

Cash flows from investing activities

Other, net
Net cash provided by (used in) investing activities

10

(Millions of yen)
Fiscal year ended
May 31, 2023

Fiscal year ended
May 31, 2024

Cash flows from financing activities
Repayments of long-term borrowings
Dividends paid

(213)
(691)

(229)
(803)

Other, net

(19)

(25)

Net cash provided by (used in) financing activities(924)(1,058)

Effect of exchange rate change on cash and cash equivalents

0(0)Net increase (decrease) in cash and cash equivalents(1,029)1,940

Cash and cash equivalents at beginning of period

17,023

15,994

Cash and cash equivalents at end of period

15,994

17,93511