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 November 30, 2023
(Based on Japanese GAAP)
January 12, 2024
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
January 15, 2024

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 six months ended November 30, 2023 (from June 1, 2023 to November 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended November 30, 2023
Six months ended November 30, 2022

Millions of yen
7,8798,470

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(7.0)
(1,426)–(1,296)–(986)––(1,255)–(1,124)–(895)–Earnings per share

Diluted earnings per share

Yen(63.07)(57.32)Six months ended November 30, 2023
Six months ended November 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2023
As of May 31, 2023

Net assets

Millions of yen
39,10339,194Equity ratio

Millions of yen
28,31929,869

%
72.4
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
0.00

Yen–

Yen
50.00

Yen
50.00

–

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 profitOrdinary 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
204.32

14. Notes(1) Changes in significant subsidiaries during the six months ended November 30, 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 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(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 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 November 30, 2023

398,825 shares As of May 31, 2023

449,402 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended November 30, 2023

15,646,100 shares Six months ended November 30, 2022

2

15,619,917 shares

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

As of November 30, 2023

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

17,092
5,495

11,436
3,872

Securities
Inventories

1002,913–7,868890(6)

1,913
(6)

26,48525,085

2,731
2,335

2,710
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

640

5,666

5,685

Goodwill
Other

741
1,077

681
1,376

Total intangible assets

1,818

2,057

Investments and other assets
Investment securities

3,004

3,494

Bad debts
Investment property, net

1432

1428

Deferred tax assets
Retirement benefit asset

266
114

730
137

Other
Allowance for doubtful accounts

1,506
(102)

1,584
(101)

Total investments and other assets

5,223

6,274

12,70814,01839,194

39,103

Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets3

(Millions of yen)
As of May 31, 2023

As of November 30, 2023

Liabilities
Current liabilities
Accounts payable - operating

1,083

618

–
229

2,600
210

490
2,564

286
3,406

22245–
256

Other

3,660

2,499

Total current liabilities

8,296

9,878

Long-term borrowings
Deferred tax liabilities

12865

2380

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

383

116

102

Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Contract liabilities
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

34

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

176
7176
5

Other

75

99

Total non-current liabilities

1,028

904

9,325

10,783

Share capital
Capital surplus

2,803
4,379

2,803
4,379

Retained earnings
Treasury shares

22,371(454)20,580(403)

Total shareholders' equity

29,10027,360Total liabilities
Net assets
Shareholders' equity

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

670

873

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(2)
93

(3)
81

Total accumulated other comprehensive income

761

950

88

29,86928,31939,194

39,103

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

November 30, 2022

November 30, 2023

Net sales
Cost of sales

8,470
5,823

7,879
5,362

Gross profit

2,647

2,517

Selling, general and administrative expenses

3,902

3,944

Operating loss

(1,255)(1,426)

Interest income
Dividend income

922

729

Share of profit of entities accounted for using equity method
Rental income from real estate60
1760
21

Non-operating income

Other49

36

Total non-operating income

158

155

Interest expenses
Rental expenses on real estate

111

112

Guarantee commission
Provision of allowance for doubtful accounts

556–

Non-operating expenses

Other

34

Total non-operating expenses

2725(1,124)(1,296)24

2

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

31

2(1,155)(1,299)

Income taxes - current

197

211

Income taxes - deferred(463)(523)

Total income taxes

(265)

(312)

Loss(890)(986)

5–(895)(986)

Profit attributable to non-controlling interests
Loss attributable to owners of parent

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

Loss
Other comprehensive income

Six months ended

Six months ended

November 30, 2022

November 30, 2023
(890)

(986)

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

74
(0)

203
(1)

Remeasurements of defined benefit plans, net of tax

(26)

(11)

48

190

Comprehensive income

Total other comprehensive income(841)(796)

Comprehensive income attributable toComprehensive income attributable to owners of parent(847)

(796)

50

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Loss before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on orders received
Increase (decrease) in provision for loss on guarantees
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in Provision for Management Board
Incentive Plan Trust-NCL
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in contract liabilities
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net

Six months ended

Six months ended

November 30, 2022

November 30, 2023

(1,155)249
61(1,299)301
60(26)

(22)

(0)
50(1)
(70)

(0)
11(1)
(56)

21

26

108(31)
1(36)
1(60)

(60)

1,880
(4,042)(263)(1,448)(422)(1,004)

1,622(4,954)
841
(654)
(339)
(1,469)(6,255)(6,021)

33(2)
(961)

29(2)
(424)

Net cash provided by (used in) operating activities(7,184)(6,419)Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time depositsProceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Other, net(80)
100–(451)
0(526)
(0)
(17)

(20)
100
100(317)0(530)(150)
0

SubtotalInterest and dividends received
Interest paid
Income taxes paid

Net cash provided by (used in) investing activities

(976)

(818)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Dividends paidOther, net

1,900(106)
(690)
(8)

2,600(124)
(802)
(12)

Net cash provided by (used in) financing activities

1,094

1,660

01

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(7,065)(5,575)

Cash and cash equivalents at beginning of period

17,023

15,994

Cash and cash equivalents at end of period

9,958

10,418

7