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, 2023
(Based on Japanese GAAP)
July 13, 2023
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 30, 2023
August 31, 2023

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

August 31, 2023
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, 2023 (from June 1, 2022 to May 31, 2023)(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, 2023
37,5092.3
4,462(0.6)
4,636(1.5)
3,059(2.0)
Year ended May 31, 2022
36,668
–
4,491
–
4,706
–
3,121
–

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
10.7
11.8
11.9
–
11.8
12.3
12.3

Diluted earnings pershare

Yen
195.84
197.46

Year ended May 31, 2023
Year ended May 31, 2022
(2) Consolidated financial position

Total assets
As of May 31, 2023
As of May 31, 2022

Net assets

Equity ratio

Millions of yen
39,241
39,240Millions of yen
29,91627,544

Cash flows fromoperating activities
Millions of yen
1,382
956

Cash flows frominvesting activities
Millions of yen(1,487)(505)

Net assets per share%
76.2
70.2

Yen
1,913.57
1,763.46(3) Consolidated cash flows

Year ended May 31, 2023
Year ended May 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(924)
15,994(1,315)17,023

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

Year ended May 31, 2022
Year ended May 31, 2023
Year ending May 31, 2024
(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

–
–

43.00
50.00

43.00
50.00

691803

21.8
25.5

2.6
2.7

–

0.00

–

55.00

55.00

126.93. Forecast of consolidated financial results for the year ending May 31, 2024 (from June 1, 2023 to May 31, 2024)
Net sales
Full year

Millions of yen
38,300Percentages 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
2.1
4,600
3.1
4,800
3.5
3,200
4.6
204.81

4. Notes(1) Changes in significant subsidiaries during the year ended May 31, 2023
(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:

Yes
No

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, 2023

16,078,920 shares As of May 31, 2022

16,078,920 shares

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

449,402 shares As of May 31, 2022

463,740 shares

15,624,348 shares Year ended May 31, 2022

15,808,324 shares

Average number of shares during the period
Year ended May 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of May 31, 2022

As of May 31, 2023

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

18,0904,317

17,092
4,429

924
–

1,065
100

3,613
104

2,981
42

Prepaid expenses
Other298
340

462386

Allowance for doubtful accounts

(6)

(6)

27,68326,553

5,466

5,906

Accumulated depreciation(3,093)(3,175)

Buildings and structures, net

2,372

2,731

Contract assets
Securities
Inventories
Advance payments to suppliers

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

Machinery, equipment and vehicles

266

259

Accumulated depreciation

(221)

(223)

44

36

Tools, furniture and fixtures

Machinery, equipment and vehicles, net

2,054

2,185

Accumulated depreciation(1,558)(1,687)495

497

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

51

88(10)

(24)

40

64

2,335

2,335

5

0

5,294

5,666

862
323

741
1,077

Total intangible assets

1,186

1,818

Investments and other assets
Investment securities

2,946

3,004

Bad debts
Investment property

0781

1788

Accumulated depreciation

(346)

(355)

Investment property, net

435

432

504

245

Retirement benefit asset
Other

83
1,217

114
1,506

Allowance for doubtful accounts

(112)

(102)

Total property, plant and equipment
Intangible assets
Goodwill
Other

Deferred tax assets

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

3

5,075

5,203

11,556

12,68839,24039,241

(Millions of yen)
As of May 31, 2022

As of May 31, 2023

Liabilities
Current liabilities
Accounts payable - operating

1,090

1,083

Current portion of long-term borrowings
Accounts payable - other213
1,294

229
728

Accrued expenses
Income taxes payable

2,265
1,111

2,345
490

Accrued consumption taxes
Contract liabilities

454
3,6924042,564

Provision for bonuses for directors (and other officers)
Provision for loss on orders received

26
264

22245

Other

134

181

10,5498,296Long-term borrowings
Lease liabilities

358
34

128
52

Deferred tax liabilities
Retirement benefit liability

55
384

65
422

Provision for share awards for directors (and otherofficers)

78

116

Provision for Employee Stock Ownership Plan Trust
Long-term accounts payable - other

31
176

36
176

Provision for loss on guarantees
Guarantee deposits received

1018

723

Total current liabilities
Non-current liabilitiesTotal non-current liabilities

1,146

1,028

11,696

9,325

Shareholders' equity
Share capital

2,803

2,803

Capital surplus
Retained earnings

4,379
20,0504,379
22,418

Total liabilities
Net assets

Treasury shares

(467)

(454)

26,76529,147

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

612
(0)

670
(2)

Remeasurements of defined benefit plans

160

93

Total accumulated other comprehensive income

771

761

78

27,54429,916

39,24039,241

Total shareholders' equity
Accumulated other comprehensive income

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

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
May 31, 2022

Fiscal year ended
May 31, 2023

Net sales
Completed service contracts
Cost of sales

36,66837,50924,46525,204

12,202

12,304

Remuneration for directors (and other officers)
Salaries and allowances

729
2,573

739
2,702

Bonuses
Retirement benefit expenses

1,162
84993
79

Provision for share awards for directors (and other officers)
Provision for share-based remuneration for employee

38
1240
11

Legal welfare expenses
Travel and transportation expenses

698
146679184

Rent expenses
Depreciation

434
131

463
174

Amortization of goodwill
Other

125
1,573

121
1,651

Total selling, general and administrative expenses

7,711

7,841

4,491

4,462

Interest income
Dividend income

1439

1442

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

122
32

94
38

Consulting fee income
Other

669

640

Total non-operating income

283

235

Cost of completed service contracts
Gross profit
Selling, general and administrative expenses

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

1112

Rental expenses on real estate
Guarantee commission

22924
10Settlement payments
Other1014–
13

Total non-operating expenses

68

61

4,706

4,636

Ordinary profit

5

(Millions of yen)
Fiscal year ended

Fiscal year ended

May 31, 2022

May 31, 2023

Extraordinary income
Gain on sale of non-current assets–

2

Total extraordinary income–

2

Extraordinary losses
Loss on valuation of investment securities

9–Loss on retirement of non-current assets
Office relocation expenses

3–646

1270

Profit before income taxes

Total extraordinary losses

4,693

4,568

Income taxes - current

1,672

1,223

Income taxes - deferred

(100)

284

Total income taxes

1,572

1,508

Profit

3,121

3,059

Profit attributable to owners of parent

3,121

3,059

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

May 31, 2022

May 31, 2023
3,121

3,059

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

102(0)

57(0)Remeasurements of defined benefit plans, net of tax

(120)

(67)

(18)

(10)

Comprehensive income

Total other comprehensive income

3,103

3,049

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,102

3,049

00

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended May 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,803

Retained earnings4,387

17,593Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders'equity

Treasury shares(84)

24,700

(102)
2,803

4,387

(102)

17,491(84)

24,597

Changes during period
Dividends of surplus

(562)

(562)

Profit attributable to owners of parent

3,121

3,121

Purchase of treasury shares
Disposal of treasury shares

(7)

(807)

(807)

424

416

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

–

(7)

2,558

(383)

2,167

2,803

4,379

20,050(467)

26,765

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

510

Foreigncurrencytranslation
adjustment

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

280

790

7

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

25,497
(102)

510

(0)

280

790

725,395

Changes during period
Dividends of surplus(562)

Profit attributable to owners of parent

3,121

Purchase of treasury shares(807)

Disposal of treasury shares

416

Net changes in items other thanshareholders' equity

102(0)

(120)

(18)

0(18)

Total changes during period

102(0)

(120)

(18)

02,149Balance at end of period

612

(0)

160

771

727,544

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

Capital surplus

2,803

Retained earnings

4,379

Total shareholders'equity

Treasury shares

20,050(467)

26,765

Changes during period
Dividends of surplus(691)

Profit attributable to owners of parent

3,059

(691)
3,059

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

–

–

2,368

13

2,382

2,803

4,379

22,418(454)

29,147

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

612

Foreigncurrencytranslation
adjustment

Total
Non-controlling
Remeasurements
accumulated otherinterestsof defined benefit
comprehensiveplansincome
(0)

160

771

7

Total net assets

27,544

Changes during period
Dividends of surplus(691)

Profit attributable to owners of parent

3,059

Purchase of treasury shares(0)

Disposal of treasury shares

13

Net changes in items other thanshareholders' equity

57

(1)

(67)

(10)

0(10)

Total changes during period

57

(1)

(67)

(10)

02,371

Balance at end of period

670

(2)

93761

829,9169

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, 2022

May 31, 2023
4,693

4,568

Depreciation
Amortization of goodwill

468
125

539
121

Increase (decrease) in provision for bonuses for directors (andother officers)

(6)

(3)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on orders received

(10)
31

(9)
(18)

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

(3)
(145)

(3)
(58)

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

25

40

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

1015

Interest and dividend income
Interest expenses(53)
11(56)
12969(122)(94)

Loss on retirement of non-current assets
Share of loss (profit) of entities accounted for using equity
methodDecrease (increase) in trade receivables and contract assets(1,493)(253)

Decrease (increase) in inventories
Increase (decrease) in contract liabilities

(393)
(341)

632
(1,128)

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

483
(315)

(789)
(49)

Other, net

(262)

(330)

Subtotal

2,713

3,203Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

5965(10)(1,805)(12)(1,873)956

1,382(230)(230)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment250(384)

200(617)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets0(144)

2(797)

Purchase of investment securities
Proceeds from sale of investment securities

(1)
1(1)
–Proceeds from redemption of investment securities
Other, net

4(0)

4(48)

Net cash provided by (used in) investing activities(505)(1,487)

10

(Millions of yen)

Cash flows from financing activities
Repayments of long-term borrowings

Fiscal year ended

Fiscal year ended

May 31, 2022

May 31, 2023
(305)

(213)

Redemption of bonds
Proceeds from disposal of treasury shares

(50)
416

––

Purchase of treasury shares
Dividends paid

(807)
(559)

(0)
(691)

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(9)

(19)

(1,315)(924)

00

Net increase (decrease) in cash and cash equivalents(864)(1,029)Cash and cash equivalents at beginning of period

17,88817,023

Cash and cash equivalents at end of period

17,023

15,99411