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.

[Delayed] Consolidated Financial Results
for the Year Ended December 31, 2023
(Based on Japanese GAAP)
February 13, 2024
Company name:AMITA HOLDINGS CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

2195
URL https://www.amita-hd.co.jp/
Chairman and Chief Visionary Officer
KUMANO Eisuke

Inquiries:

President and Chief Integrated Operations
Officer

SUETSUGU Takahide

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

March 22, 2024
March 22, 2024

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

March 25, 2024
Yes

Holding of financial results meeting:

Yes

TEL

075-277-0378(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Consolidated operating results
Net salesYear ended December 31, 2023
Year ended December 31, 2022
Note: Comprehensive income

Millions of yen
4,536
4,824

Operating profit
%
(6.0)
–

Millions of yen
472
609

Year ended December 31, 2023
Year ended December 31, 2022
Earnings per share

Year ended December 31, 2023
Year ended December 31, 2022%
(22.6)
8.9¥312 million¥563 million

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
530 (25.8)
308(42.0)
715
13.7
531 (16.1)[(44.6)%][(12.8)%]

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
14.5
9.7
10.4
30.22
30.8
15.5
12.6

Diluted earnings per
share

Yen
17.57
30.29

Reference: Share of loss (profit) of entities accounted for using equity method
Year ended December 31, 2023

¥64 million

Year ended December 31, 2022
¥108 million
Notes: 1. Diluted earnings per share for the year ended December 31, 2023, is omitted, because there are no potentially dilutive shares that havedilutive effects although there are potentially dilutive shares.
2. The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split
was implemented at the beginning of the previous fiscal year, the Company calculates “earnings per share” and “diluted earnings per
share.”(2) Consolidated financial position
Total assets
As of December 31, 2023
As of December 31, 2022
Reference: Equity
Notes:

Millions of yen
6,175
4,824
As of December 31, 2023
As of December 31, 2022

Net assets
Millions of yen
2,266
2,001

Equity ratio

Net assets per share
%
36.6
41.4

Yen
128.77113.69¥2,260 million¥1,995 million

The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split
was implemented at the beginning of the previous fiscal year, the Company calculates “net assets per share.”(3) Consolidated cash flows

Year ended December 31, 2023
Year ended December 31, 2022

Cash flows fromoperating activities
Millions of yen
725
585

Cash flows frominvesting activities
Millions of yen
(441)
(69)

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
754
2,829
(142)
1,779

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

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

–
–

3.00
4.00

3.00
4.00

52
70

9.9
22.8

3.1
3.3

–

0.00

–

4.00

4.00

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(Forecast)

18.9

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net 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
4,809
6.0
540
14.6
599
12.8
371
20.4
21.16
4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2023

Yes(changes in specified subsidiaries resulting in the change in scope of consolidation):
Newly included:
1 company (AMITA CORPORATION)
Note: For details, please refer to “3. Consolidated financial statements and primary notes, (5) Notes to consolidated financial statements,(Changes in significant subsidiaries during the fiscal year ended December 31, 2023)” on page 14 of the attached document.
(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
No
No

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

No
Restatement of prior period financial statements:
Note: For details, please refer to “3. Consolidated financial statements and primary notes, (5) Notes to consolidated financial statements,(Changes in accounting policies)” on page 14 of the attached document.
(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

17,556,360 shares As of December 31, 2022

17,551,360 shares

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

3,890 shares As of December 31, 2022

3,890 shares

Average number of shares during the period
Year ended December 31, 2023
17,552,085 shares Year ended December 31, 2022
17,538,334 shares
Note: The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split was
implemented at the beginning of the previous fiscal year, the Company calculates “total number of issued shares at the end of the period,”“number of treasury shares at the end of the period,” and “average number of shares during the period.”Reference: Overview of non-consolidated financial results
Non-consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Non-consolidated operating results
Percentages represent year-on-year changes
Operating revenue
Year ended December 31, 2023
Year ended December 31, 2022

Millions of yen
1,097
760

%
44.2
14.4

Operating profit
Millions of yen%
142 729.9
17 (47.3)

Ordinary profit
Millions of yen
115
2

Profit%–(87.9)

Millions of yen
90
(16)

%
–
–

Diluted earnings per
share
Yen
Yen
Year ended December 31, 2023
5.17–
Year ended December 31, 2022
(0.92)–
Note: The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split was
implemented at the beginning of the previous fiscal year, the Company calculates “earnings per share” and “diluted earnings per share.”Earnings per share(2) Non-consolidated financial position
Total assets
As of December 31, 2023
As of December 31, 2022

Net assets

Millions of yen
3,560
2,449

Millions of yen
1,060
1,016

Equity ratio

Net assets per share
%
29.6
41.3

Yen
60.07
57.59

Reference: Equity

As of December 31, 2023
¥1,054 million
As of December 31, 2022
¥1,010 million
Note: The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption that such stock split was
implemented at the beginning of the previous fiscal year, the Company calculates “net assets per share.”Notes:
1. Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
2. Explanation on proper use of earnings forecast, and other special matters
Earnings forecast and other forward-looking statements in this material are based on data currently available to the Company and certain
assumptions that the Company believes are reasonable. The Company gives no assurance that the Company will achieve such forecasts. In
addition, actual results may differ significantly from these forecasts due to various factors. For details of the assumptions used in the earnings
forecast and a cautionary note regarding their appropriate use, please refer to “1. Overview of operating results and others, (4) Businessoutlook” on page 4 of the attached document.
(Obtaining supplementary materials on financial results)
The Company plans to hold a financial results meeting for institutional investors and analysts on Thursday, February 22, 2024.
The Company also plans to post financial results presentation materials for the meeting on its website promptly after the holding.

AMITA HOLDINGS Co., Ltd. (2195)

Table of Contents
Index
1. Overview of operating results and others.................................................................................................. 2(1) Overview of operating results during the fiscal year under review .................................................... 2(2) Overview of financial position during the fiscal year under review ................................................... 3(3) Overview of cash flows for the fiscal year under review ................................................................... 3(4) Business outlook................................................................................................................................. 4
2. Basic approach to the selection of accounting standards .......................................................................... 6
3. Consolidated financial statements and primary notes ............................................................................... 7(1) Consolidated balance sheets ............................................................................................................... 7(2) Consolidated statements of income and consolidated statements of comprehensive income ............ 9
Consolidated statements of income .................................................................................................... 9
Consolidated statements of comprehensive income ......................................................................... 10(3) Consolidated statements of changes in equity .................................................................................. 11(4) Consolidated statements of cash flows ............................................................................................. 13(5) Notes to consolidated financial statements ....................................................................................... 14(Notes on going concern assumption) .............................................................................................. 14(Changes in significant subsidiaries during the fiscal year ended December 31, 2023) .................. 14(Changes in accounting policies) ...................................................................................................... 14(Additional information) .................................................................................................................. 14(Consolidated balance sheet relationships) ....................................................................................... 14(Segment information)...................................................................................................................... 14(Per share information) ..................................................................................................................... 15(Significant subsequent events) ........................................................................................................ 16-1-

AMITA HOLDINGS Co., Ltd. (2195)

1. Overview of operating results and others(1) Overview of operating results during the fiscal year under review
During the fiscal year under review, business conditions in the Japanese economy gradually improved as aresult of the significant easing of restrictions related to COVID-19, a recovery in consumption activity,
including demand from inbound tourism, and other factors, despite the rising prices. Conversely, global supply
chain instability and social uncertainty remain, in the form of the sustained depreciation of the yen, which is
linked to monetary policy, the deceleration of the global economy, the prolongation of the situation in Ukraine
and the emergence of military conflict in the Middle East, and soaring prices for raw materials and resources,
which have in turn led to price increases in Japan for food, daily goods, and other products. Under thiseconomic situation, the AMITA Group (the “Group”) developed and launched the Social Systems Design
Business to provide comprehensive support to businesses and municipalities in achieving greater corporate andcommunity sustainability under the “Ecosystem Social Concept 2030” (announced in November 2022), ourbusiness vision for 2030, with the aim to achieve a sustainable society. As the basis for this, we have pursued
organizational reforms, worked to enhance organizational mobility, quality of services, and value creation
capabilities and actively promoted strategic partnerships with companies in different industries.
In the Transition Strategy Business Area, interest in sustainability from a long-term perspective is gathering
momentum and has led to continued high levels of inquiries regarding the “Cyano Project,” which
comprehensively supports the creation and business transformation of recycling-oriented businesses, fromcompanies aiming to transform their existing businesses. However, with repeated outbreaks of abnormal
weather and the intensification of global supply chain instability, in the short term companies are increasingly
putting a priority on business activities that have a direct impact in terms of near-term results and evaluations.
As a result, decisions on ESG measures and schedules for business discussions are being pushed back, and thishas led to our orders falling behind plan. In response to these circumstances, we strengthened marketing
initiatives aimed at raising our order rates, as well as developing and providing such products as solutions toaddress disclosure of information related to natural risks that occur in the course of corporate activity (an areathat is increasingly attracting attention, and which is associated with the Taskforce on Nature-related Financial
Disclosures, or TNFD), and the Factory Support Package, which seeks to help production sites enhance theirsustainability. Consequently, orders in the fourth quarter and beyond have begun to improve. In theenvironmental certification assessment service, orders from new customers, especially for FSC® CoC
certification, have been increasing steadily, and performance has been strong. ICT and BPO services forenvironmental management operations continued to perform well in response to the growing needs of clientcompanies due to personnel shortages and other factors.
In the Circular Materials Business Area, while raw material procurement risks are becoming more apparent due
to instability in global supply chains, the need for alternative resources is also steadily expanding against thebackground of accelerating moves towards carbon neutrality. However, factors such as the sluggishness in
manufacturing industry caused by labor shortages, soaring resource prices, and so on are having an impact on
handling volumes of alternative resources offered by the Group. Faced by this situation, we have implemented
initiatives aimed at boosting profitability, such as those related to the manufacture and sale of coal substitutes
that contribute to carbon neutrality and nature positivity, to achieving more appropriate recycling prices, and to
improving productivity at manufacturing plants. Although the volume of closed-loop resource-recycling ofsilicon slurry waste liquids has declined due to production in the semiconductor industry undergoing a phase ofadjustment, this sector is expected to recover going forward and we are therefore moving forward withpreparations to strengthen our production structure. In addition, we saw a decrease in the volume of Ni
recycled resources handled as valuable materials overseas, which is an intensely competitive environment, andthere were reductions in the volume of nonferrous materials handled following production cutbacks at someresource user firms. In October 2022, the resource manufacturing operations of the former Kawasaki Resource
Recycling Plant were taken over by the Kawasaki Plant of Sanyu Plant Service Co., Ltd. In this connection, therecording of net sales and cost of sales for that transaction was changed from gross to net.
In the overseas business in Malaysia, although handling volume declined temporarily due to production
cutbacks by client companies, local demand for alternative resources is increasing, leading to a recovery inhandling volume for existing projects. Together with the acquisition of new clients, this resulted in a year-onyear increase in handling volume. In Indonesia, we are accelerating a feasibility study on the manufacturing
and supply of alternative fuels and materials derived from industrial and municipal waste to the cement
industry, based on the Memorandum of Understanding (MoU) we signed with PT Indocement Tunggal
Prakarsa Tbk., a major Indonesian cement company.

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AMITA HOLDINGS Co., Ltd. (2195)
In terms of activities related to the construction of the MEGURU PLATFORM for achieving an ecosystemsociety, we pushed ahead with initiatives for widespread deployment of MEGURU STATION®, a resourcecollection site that promotes mutually supportive engagement among community residents, in Tachiarai Town
in Fukuoka Prefecture, Kobe City, Buzen City in Fukuoka Prefecture, as well as for building a model in
Kakegawa City in Shizuoka Prefecture. In addition, we continued our work with Toray Industries, Inc. to buildand deploy a circular model for plastics based on MEGURU STATION®, for which we were selected by the
Cabinet Office for the third phase of the Cross-ministerial Strategic Innovation Program (SIP), in July 2023.
In the area of building partnerships and co-creation-type business models, at the Japan Circular Economy
Partnership (J-CEP), for which we serve as the representative organizer, we investigated specific projects to
conduct in collaboration with companies from other industries in relation to the circular economy, including
demonstrating the use of recycled PET bottle caps and product traceability. In November, we concluded aMemorandum of Understanding (MoU) on collaboration in waste management services with Sumitomo Mitsui
Finance and Leasing Co., Ltd., and investigated collaboration aimed at enhancing waste management systemservices from sales to operations, the expansion of waste management BPO services provided by AMITACORPORATION, and the joint development and provision of new services tailored to meet future needs. In
December, AMITA CORPORATION became the first member of the Associate Consultant Program of BSI
Group Japan K.K., which as a certification assessment body has one of the most extensive track records inJapan, to be accredited in the circular economy field, and will promote the expansion of consulting services tofacilitate the transition by corporations to sustainable management.
As a result of the above, net sales for the fiscal year under review were ¥4,536,499 thousand (down 6.0% or¥288,296 thousand from the previous fiscal year) due mainly to the change from gross to net recording oftransactions at the former Kawasaki Resource Recycling Plant, the slowdown in Cyano Project orders, anddeclines in overseas valuable material transactions and in the volume of nonferrous materials handled.
Operating profit recorded ¥472,160 thousand (down 22.6%, or ¥137,568 thousand from the previous fiscal
year) due to decreased net sales and increased selling, general and administrative expenses. Ordinary profit was¥530,844 thousand (down 25.8% or ¥184,693 thousand from the previous fiscal year), having been affected by
the decrease in operating profit, as well as by such factors as a decline in equity in earnings of affiliates related
to the Malaysian business, which was caused by the disappearance of tax deductions applied in the previous
fiscal year under the green investment taxation system in Malaysia. Profit attributable to owners of the parent
was ¥308,345 thousand (down 42.0% or ¥222,896 thousand from the previous fiscal year), due to the decline
in ordinary profit and other factors.
Statement by segment is omitted because the Group constitutes a single segment of the Social Systems Design
Business.
(2) Overview of financial position during the fiscal year under review
As of the end of the fiscal year under review, current assets increased by ¥1,068,776 thousand due mainly toincreases in cash and deposits, and non-current assets rose by ¥282,651 thousand due partly to the recording of
construction in progress (*recycling facilities at the Kitakyushu Resource Recycling Plant). As a result, total
assets increased by ¥1,351,428 thousand from the end of the previous fiscal year to ¥6,175,708 thousand.
With regard to liabilities, current liabilities increased by ¥366,939 thousand mainly due to increases inadvances received and deposits received, and non-current liabilities increased by ¥719,333 thousand mainly
due to an increase in long-term borrowings. As a result, liabilities increased by ¥1,086,273 thousand from theend of the previous fiscal year to ¥3,909,503 thousand.
Net assets increased by ¥265,154 thousand from the end of the previous fiscal year to ¥2,266,204 thousand due
to recording of profit.
(3) Overview of cash flows for the fiscal year under review
As of the end of the fiscal year under review, cash and cash equivalents (the “fund”) increased by ¥1,049,946
thousand from the end of the previous fiscal year to ¥2,829,579 thousand.

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AMITA HOLDINGS Co., Ltd. (2195)(Cash flows from operating activities)
The fund provided by operating activities amounted to ¥725,473 thousand (net inflow of fund by ¥140,390
thousand YoY). This was due to profit before income taxes of ¥503,570 thousand, depreciation of ¥145,013
thousand, increase in advances received of ¥127,241 thousand, and income taxes paid of ¥150,282 thousand.
(Cash flows from investing activities)
The fund used in investing activities amounted to ¥441,033 thousand (net outflow of fund by ¥371,191
thousand YoY). This decrease was mainly due to purchase of property, plant and equipment of ¥326,367
thousand.
(Cash flows from financing activities)
The fund provided by financing activities amounted to ¥754,430 thousand (net inflow of fund by ¥896,596
thousand YoY). This was mainly due to proceeds from long-term borrowings of ¥1,002,937 thousand.
(4) Business outlook
Going forward, the outlook for the Japanese economy is expected to remain uncertain, with the internationalsituation becoming even more unstable due to the stalemate in the war between Russia and Ukraine and thelack of visibility regarding military conflict in the Middle East. Moreover, we must also bear in mind thecontinuation of global supply chain instability, including geopolitical risks associated with raw material
procurement and soaring prices for raw materials and resources, as well as the impact of the deceleration of the
global economy centered on the United States and China, and the risk of abnormal weather and natural
disasters, not to mention shifts in monetary policy and increasingly volatile political trends both in Japan andoverseas. With the rapid rise of generative AI as a new technology, we believe that work styles and values areat a major inflection point. As an initiative aimed at reducing greenhouse gases in FY2030 by 46% comparedto the FY2013 level in order to achieve carbon neutrality by 2050, the Japanese government is expected toissue GX (Green Transformation) Economy Transition Bonds in February 2024 for promoting decarbonization
investments, and to issue around ¥20 trillion in total over the next ten years. As shown by such initiatives as theincreasingly active GX League (a space for companies that aim to take on the GX challenge and achievesustainable growth to cooperate with companies implementing similar initiatives, in collaboration with thegovernment and academia), the trend towards decarbonization and a circular economy both in Japan andoverseas, and the focus on ESG among investors, companies, and central and local governments, is expected toaccelerate going forward. According to the Ministry of Economy, Trade and Industry, the global market for
products related to the circular economy is forecast to reach $4.5 trillion by 2030, and $25 trillion in 2050, withthe market in Japan seen growing from ¥50 trillion in 2020, to ¥80 trillion in 2030, and to ¥120 trillion in 2050.
Overseas, the promotion of the circular economy in the ASEAN region that includes Malaysia and Indonesia is
forecast to give rise to a market of around $420 billion, a trend that we believe will act as a tailwind for theGroup.
Under these circumstances, as a “designing a future company,” the Group will continue to develop and expand
products aimed at establishing the Social Systems Design Business in order to enhance the sustainability andengagement of society, in preparation for achieving the Ecosystem Social Concept 2030, our business vision
for 2030. In 2024, in addition to maintaining our focus on developing and expanding services to support
greater corporate and community sustainability, we will promote the construction and operation of aframework to continue acquiring and amplifying management resources (inbound marketing). Through the
expansion of our collaboration with citizens, municipalities, universities, and government agencies bypromoting the building of strategic partnerships with corporations, co-creation businesses, such and cocreation-type consortiums like J-CEP, we will forge ahead with the laying of the foundation for growth in theSocial Systems Design Business, and use this to achieve the Ecosystem Social Concept 2030. The specifics are
as follows.
In the “Cyano Project,” which enhances the sustainability of corporate management and supports the creation
and business transformation of recycling-oriented businesses (i.e., transition strategies) to enhance thesustainability of corporate management, we will continue to work on rebuilding our product design, such as bystrengthening marketing initiatives that are integrated with education, public relations, marketing, and sales, aswell as developing and providing such products as solutions to address the TNFD (disclosure of information
related to natural risks) and the Factory Support Package, which seeks to help production sites enhance theirsustainability. In doing so, we will work with Codo Advisory, Inc., which provides strategic support fortransitioning to decarbonization management, existing and new strategic partnerships, and J-CEP to enhance-4-

AMITA HOLDINGS Co., Ltd. (2195)
the value of our offerings. In ICT and BPO services for environmental management operations, which are
performing well, we will work to enhance existing services and develop and provide new services through ourcollaboration with Sumitomo Mitsui Finance and Leasing Co., Ltd. In environmental certification assessment
services, we will strengthen the organizational structure in order to enhance our ability to grow new orders. In
the overseas business, in order to accelerate our expansion in Asia and Oceania region, we will establish
AMITA CIRCULAR DESIGN SDN. BHD. in Malaysia in April 2024 as the supervisory organization foroverseas operations to promote the expansion of the recycling business in Malaysia. Furthermore, we will takesteps to open up markets associated with the building of frameworks for a recycling-oriented society byleveraging the know-how we have developed in Japan, which will include accelerating our investigations into
commercialization in Indonesia.
In the circular materials business, which provides comprehensive solutions for sustainable procurement andresource utilization, we are speeding up the move to business innovation by developing and offering newcirculating resources, such as by expanding the provision of coal substitutes that contribute to carbon neutrality
and nature positivity, as well as strengthening marketing by generating synergies within the Group, andinvesting in automation and mechanization of production functions to improve profitability and safety andaddress labor shortages. In anticipation of a recovery in the semiconductor industry, we will complete the newrecycling facilities for silicon slurry waste liquids that we have been preparing at the Kitakyushu Resource
Recycling Plant, and begin operation sometime in the summer.
In terms of activities related to the construction of the MEGURU PLATFORM for achieving an ecosystemsociety, we will build and verify product prototypes, and continue to focus on establishing a business model.
Based on the core function of MEGURU STATION®, we will promote the expanded provision ofcomprehensive solutions for urban development, including the biogas power plant in Minamisanriku Town,
and actively invest in building a digital information platform that adds value to consumption trends,
traceability, and other resource information. Under the Strategic Innovation Program (SIP), for which we wereselected by the Cabinet Office in July 2023, we will continue to verify sophisticated resource circulation
models as a national project. Through such activities we aim to build the MEGURU PLATFORM as a meansof integrating and solving regional, corporate and social issues.
Furthermore, as a management foundation to support the “Social Systems Design Business,” we will continue
to work on building a framework for the amplification of quality management resources, including thefostering of our corporate culture (improving the operation of new target management methods, taking on thechallenge of a 32-hour work week, establishing an environment to enhance well-being), as well as developing
organizational and human resources to enhance value creation capabilities, establishing strategic capital
policies, and taking measures to strengthen relationships with shareholders and increase social recognition, etc.
Regarding the consolidated results for the year ending December 31, 2024, as a result, the Group forecasts net
sales of ¥4,809 million (up 6.0% or ¥272 million YoY), operating profit of ¥540 million (up 14.6% or ¥68
million YoY), ordinary profit of ¥599 million (up 12.8% or ¥68 million YoY), and profit attributable to ownersof parent of ¥371 million (up 20.4% or ¥62 million). The Group will pursue these measures above andproactively engage in creating an “Ecosystem Society” in tandem with other sustainability-oriented companies
and municipalities.

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AMITA HOLDINGS Co., Ltd. (2195)

2. Basic approach to the selection of accounting standards
The Group applies Japanese accounting standards for ensuring the comparability with other Japanese companies inthe same industry.

-6-

AMITA HOLDINGS Co., Ltd. (2195)

3. Consolidated financial statements and primary notes(1) Consolidated balance sheets(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

AssetsCurrent assets
Cash and deposits

1,779,633

2,829,579

Notes and accounts receivable - trade744,972

708,362

Merchandise and finished goods

32,98926,764Work in process

18,498

27,117

Raw materials and supplies

10,844

8,893

Other

182,759

237,687(70)–

2,769,627

3,838,404

391,446

365,194

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

320,266

324,673Land

752,187

752,187

Construction in progress

17,325

240,711

Other, net

65,71738,885

1,546,942

1,721,652

36,96688,413

Investment securities

281,722

320,101

Deferred tax assets

35,13645,352

Other

153,885

161,783

Total investments and other assets

470,743

527,237

2,054,652

2,337,303

4,824,280

6,175,708

Total property, plant and equipment
Intangible assets
Investments and other assets

Total non-current assets
Total assets-7-

AMITA HOLDINGS Co., Ltd. (2195)(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade293,290

260,842

Current portion of long-term borrowings

170,000

266,756

Lease liabilities

16,267

10,466

Accounts payable - other170,395

112,341

Income taxes payable

101,504

151,146

Provision for bonuses

76,84885,675–

4,310

Asset retirement obligations
Advances received

151,151

278,393

Deposits received

211,958

314,659

Other
Total current liabilities

77,590151,353

1,269,005

1,635,945

1,082,562

1,807,055

Non-current liabilities
Long-term borrowings
Lease liabilities

21,450

10,240Retirement benefit liability

349,349

358,739

Asset retirement obligations

100,681

97,342

Other
Total non-current liabilities
Total liabilities

180

180

1,554,224

2,273,557

2,823,230

3,909,503

480,680

483,560

Net assets
Shareholders’ equity
Share capital
Capital surplus

250,443

253,323

Retained earnings

1,225,139

1,480,808

Treasury shares

(482)

(482)

1,955,781

2,217,210

Foreign currency translation adjustment

39,21942,959Total accumulated other comprehensive income

39,21942,959

6,049

6,034

Total shareholders’ equity
Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets-8-2,001,050

2,266,204

4,824,280

6,175,708

AMITA HOLDINGS Co., Ltd. (2195)(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2022
Net sales

Fiscal year ended
December 31, 2023

4,824,795

4,536,499

Cost of sales

2,687,253

2,398,545

Gross profit

2,137,542

2,137,953

Selling, general and administrative expenses

1,527,814

1,665,793

609,728

472,160

Operating profit
Non-operating income
Interest income
Share of profit of entities accounted for using equity
methodForeign exchange gains

112

121

108,901

64,510

5,825

1,579

Other

13,666

16,239Total non-operating income

128,505

82,451

Interest expenses

16,54018,854

Share acquisition rights issuance costs

2,640

2,391

Non-operating expenses

Other

3,515

2,520

Total non-operating expenses

22,69623,766

715,537

530,844

Gain on sale of non-current assets

2,821

250

Total extraordinary income

2,821

250

725

–

–

24,399Ordinary profit
Extraordinary income

Extraordinary losses
Loss on valuation of shares of subsidiaries andassociates
Impairment losses
Loss on sale and retirement of non-current assets

5,495

3,124

Total extraordinary losses

6,220

27,524

Profit before income taxes

712,138

503,570

Income taxes - current

100,818

205,441

Income taxes - deferred

80,078(10,216)

Total income taxes

180,896

195,225

Profit531,242

308,345

Profit attributable to owners of parent

531,242

308,345-9-AMITA HOLDINGS Co., Ltd. (2195)
Consolidated statements of comprehensive income(Thousands of yen)

ProfitFiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

531,242

308,345

2,548

2,040

29,847

1,699

32,395

3,740

563,637

312,085563,637

312,085

Other comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent- 10 -AMITA HOLDINGS Co., Ltd. (2195)(3) Consolidated statements of changes in equity
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

474,920244,683

5,760

5,760

Retainedearnings
728,972

Treasury shares
(375)

Total
shareholders’equity1,448,200

Changes during period
Issuance of new shares exercise of share acquisitionrights11,520

Dividends of surplus(35,075)(35,075)

Profit attributable to owners ofparent531,242531,242

Purchase of treasury shares

(106)

(106)

Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of period

5,760

5,760

496,166(106)

507,581

480,680

250,443

1,225,139(482)

1,955,781

Accumulated other comprehensive
incomeTotal
Share acquisition
Foreign currency
accumulated
rightstranslationotheradjustment
comprehensive
income
6,823
6,823
–

Total net assets

1,455,024

Changes during period
Issuance of new shares exercise of share acquisitionrights11,520

Dividends of surplus(35,075)

Profit attributable to owners ofparent531,242

Purchase of treasury shares
Net changes in items otherthan shareholders’ equity(106)
32,39532,395

6,049

38,445

Total changes during period

32,39532,395

6,049

546,026

Balance at end of period

39,21939,2196,049

2,001,050- 11 -AMITA HOLDINGS Co., Ltd. (2195)
Fiscal year ended December 31, 2023
(Thousands of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

480,680

250,443

2,880

2,880

Retainedearnings
1,225,139

Treasury shares
(482)

Total
shareholders’equity1,955,781

Changes during period
Issuance of new shares exercise of share acquisitionrights5,760

Dividends of surplus(52,642)(52,642)

Profit attributable to owners ofparent308,345

308,345

(33)

(33)

Decrease by merger
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of period

2,880

2,880

255,668–

261,429

483,560

253,3231,480,808(482)

2,217,210

Accumulated other comprehensive
incomeTotal
Share acquisition
Foreign currency
accumulated
rightstranslationotheradjustment
comprehensive
income39,21939,2196,049

Total net assets

2,001,050

Changes during period
Issuance of new shares exercise of share acquisitionrights5,760

Dividends of surplus(52,642)

Profit attributable to owners ofparent308,345

Decrease by merger
Net changes in items otherthan shareholders’ equity

(33)
3,740

3,740

(15)

3,724

Total changes during period

3,740

3,740

(15)

265,154

Balance at end of period

42,95942,9596,034

2,266,204- 12 -AMITA HOLDINGS Co., Ltd. (2195)(4) Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Loss on valuation of shares of subsidiaries and associates
Loss (gain) on sale and retirement of non-current assets
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodShare acquisition rights issuance costs
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received
Increase (decrease) in deposits received
Other, net

Fiscal year ended
December 31, 2023

712,138
139,734–
725
4,049(21,540)
18,363(112)
16,540(13,391)

503,570
145,013
24,399
–
2,874
8,827
9,390
(121)
18,854(8,890)(108,901)(64,510)2,640(41,857)
4,347(60,289)(13,137)
157(50,905)

2,391
36,609(442)(32,448)
127,241
102,701(34,324)

Subtotal

588,559

841,138

Interest and dividends received
Interest paid
Income taxes paid

48,373(17,230)(34,619)55,536(20,918)(150,282)

Net cash provided by (used in) operating activities

585,083

725,473

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from cancellation of insurance funds
Other, net(80,507)
58,383(21,855)(25,000)
7,059(7,922)(326,367)
250(71,757)(27,835)–(15,322)Net cash provided by (used in) investing activities(69,841)(441,033)

52,562(150,000)

1,002,937(181,689)

11,490

5,745

3,440
–
(33,841)(25,817)–(2,391)(53,522)(16,649)(142,166)

754,430

Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares resulting from exerciseof share acquisition rights
Proceeds from issuance of share acquisition rights
Payments for issuance of share acquisition rights
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

16,002

10,805

Net increase (decrease) in cash and cash equivalents

389,077

1,049,675

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger

1,390,556–

1,779,633
270

Cash and cash equivalents at end of period

1,779,633

2,829,579- 13 -AMITA HOLDINGS Co., Ltd. (2195)(5) Notes to consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Changes in significant subsidiaries during the fiscal year ended December 31, 2023)
The Company changed the trade name of AMITA CORPORATION, a wholly owned subsidiary of theCompany, to “AMITA CIRCULAR CORPORATION” effective January 1, 2023, transferred part of thebusiness of AMITA CIRCULAR CORPORATION to a newly established company (trade name: AMITACORPORATION) by means of a company split (simple incorporation-type company split) effective January 5,2023, and made the newly established company a wholly owned subsidiary of the Company. As a result, thatcompany has been included in the consolidated results since the fiscal year ended December 31, 2023. The
newly established AMITA CORPORATION is a specified subsidiary of the Company.
Although it does not constitute a change in specified subsidiaries, as a result of AMIDAO CORPORATION
being newly established on January 5, 2023, that company has been included in the consolidated results since
the fiscal year ended December 31, 2023.
On June 1, 2023, the Company’s consolidated subsidiary AMITA CORPORATION merged with the nonconsolidated subsidiary KamiBIO Co., Ltd.
(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the fiscal year ended December
31, 2023, and it has applied the new accounting policy provided for by the Implementation Guidance on
Accounting Standard for Fair Value Measurement prospectively in accordance with the transitional measuresprovided for in paragraph 27-2 of the Implementation Guidance on Accounting Standard For Fair Value
Measurement.
This has no impact on the consolidated financial statements.
(Additional information)(Accounting estimates relating to the effect of COVID-19)
Based on the information available at the point of preparing consolidated financial statements, the Groupjudges that the spread of COVID-19 will not significantly impact the accounting estimates for the impairment
of non-current assets and recoverability of deferred tax assets as of the end of the fiscal year under review.
(Consolidated balance sheet relationships)
Notes and accounts receivable - trade, arising from contracts with customers are as follows.
(Thousands of yen)
As of December 31, 2022
Notes receivable - trade
Accounts receivable - trade

29,736715,236

As of December 31, 2023
20,092
688,270(Segment information)
The statement is omitted because the Group constitutes a single segment, or the Social Systems Design
Business.

- 14 -AMITA HOLDINGS Co., Ltd. (2195)(Per share information)(Yen)
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Net assets per share

113.69128.77

Earnings per share

30.29

17.57

Diluted earnings per share

30.22

–

Notes: 1. The Company carried out a 3-for-1 stock split of its common shares as of October 1, 2022. Under the assumption thatsuch stock split was implemented at the beginning of the previous fiscal year, the Company calculates “net assets per
share,” “earnings per share” and “diluted earnings per share.”
2. Diluted earnings per share for the year ended December 31, 2023, is omitted, because there are no potentially dilutive
shares that have dilutive effects although there are potentially dilutive shares.
3. The basis for calculating earnings per share and diluted earnings per share is as follows:
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Earnings per share
Profit attributable to owners ofparent (Thousands of yen)531,242

308,345

Amount not attributable tocommon shareholders (Thousandsof yen)––Profit attributable to owners ofparent relating to common shares(Thousands of yen)531,242

308,345

Average number of commonshares during the period (Shares)

17,538,334

17,552,085––

Increase in common shares(Shares)

39,249–(Of which, share acquisition rights(Shares))(39,249)–

Diluted earnings per share
Adjustment of profit attributableto owners of parent (Thousands ofyen)Summary of potential shares notincluded in the calculation ofdiluted earnings per share due tothe absence of dilutive effects–- 15 -

1st Series Share Acquisition Rights(19,850 share acquisition rights/
1,985,000 common shares)

AMITA HOLDINGS Co., Ltd. (2195)(Significant subsequent events)(Purchase and cancellation of 1st series of share acquisition rights through third-party allotment)
At a meeting held on February 13, 2024, in relation to the AMITA HOLDINGS Co., Ltd. 1st Series Share
Acquisition Rights issued on December 19, 2022 (the “Share Acquisition Rights”), the Board of Directors of
the Company resolved to purchase all of the Share Acquisition Rights on February 28, 2024, and to cancel all
the Share Acquisition Rights immediately after their purchase, as follows.
1. Details of the share acquisition rights to be purchased and canceled(1)

Name of the share acquisition rights to be purchased andcanceled

AMITA HOLDINGS Co., Ltd. 1st Series Share
Acquisition Rights(2)

Number of share acquisition rights to be purchased andcanceled

19,850 (100 shares for each of the Share Acquisition
Rights)(3)

Purchase price¥6,034,400 in total (¥304 for each of the Share Acquisition
Rights)(4)

Date of purchase and cancellation

February 28, 2024

(5)

Number of share acquisition rights remaining aftercancellation

0

2. Reason for purchase and cancellation
The Company issued the Share Acquisition Rights to (1) finance the setting up of MEGURU STATION®
(projected funding amount of ¥1,534 million), to (2) finance the development of a system based on blockchain(projected funding amount of ¥300 million), and to (3) finance loans and investments to a subsidiary (projected
funding amount of ¥450 million).
20,000 of the Share Acquisition Rights were issued in total (2,000,000 shares), of which 150 have been
completely exercised (15,000 shares), raising a total of ¥17,235,000. Of the funds raised by the exercise of the
Share Acquisition Rights, ¥17,235,000 were allocated to (2) above, to finance the development of a system
based on blockchain. However, after forming a comprehensive judgment based on the market environment
going forward, share price trends, and the exercise situation, although exercise may be possible in future,depending on the share price, we have made the decision, as a result of considering our capital policy, topurchase and cancel all the remainder of the Share Acquisition Rights in accordance with the issuancerequirements for the Share Acquisition Rights.
Moreover, to address the financing of loans and investments to our subsidiary AMITA CIRCULARCORPORATION for the silicone-related recycling facilities at its Kitakyushu Resource Recycling Plant, wehave borrowed the funds from a financial institution, and the facilities are expected to be completed in July
2024. With regard to the remaining uses of funds, we expect to be able to cover them from funds at hand or
through borrowings.
3. Business outlook
The impact of the purchase and cancellation of the Share Acquisition Rights on the results of the Company isnegligible.

- 16 -