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 August 31, 2022
(Based on Japanese GAAP)
October 13, 2022
Company name:Shochiku Co., Ltd.
Stock exchange listing: Tokyo, Sapporo, Fukuoka
Stock code:
Representative:

9601
URL https://www.shochiku.co.jp
President and CEO
Jay Sakomoto

Inquiries:
Director
Scheduled date to file Quarterly Securities Report:

Hiroshige Osaki
October 13, 2022

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

Holding of quarterly financial results meeting:

NoTEL

03-5550-1699(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2022 (from March 1, 2022 to August 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2022
Six months ended August 31, 2021

Millions of yen
38,41934,205Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
12.3
(168)
–
2,560
–
7,554
–
73.5
(1,961)–(1,525)–(2,298)–

Earnings per share

Diluted earnings per share

Yen
550.01(167.35)

Six months ended August 31, 2022
Six months ended August 31, 2021

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2022
As of February 28, 2022

Net assets

Millions of yen
184,257188,781

Equity ratio

Millions of yen
87,94980,833

Net assets per share%
47.7
42.4

Yen
6,396.31
5,827.78

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
0.00

Yen
0.00

–

30.00

30.00

Year ending February 28, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
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
85,230–
(340)
–
1,800
–
6,800
–
495.091

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(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:

Yes
No

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, 2022

13,937,857 shares As of February 28, 2022

13,937,857 shares

Number of treasury shares at the end of the period
As of August 31, 2022

201,112 shares As of February 28, 2022

204,443 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2022

13,734,767 shares Six months ended August 31, 2021

2

13,734,487 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2022

As of August 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

16,791
8,713

16,768–Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods

–
1,648

7,981
1,792

Work in process
Raw materials and supplies

4,201
114

4,243
115

Other
Allowance for doubtful accounts

2,942
(14)

3,014
(2)

Total current assets

34,39633,913

Buildings and structures, net
Facilities,net

43,151
11,25440,864
10,619Land
Other, net

41,847
5,051

39,695
4,597

Total property, plant and equipment

101,304

95,776

2,005

1,954

Total intangible assets

2,005

1,954

Investments and other assets
Investment securities31,560

33,441Retirement benefit asset
Other

136
19,47581
19,189(98)(99)

Non-current assets
Property, plant and equipment

Intangible assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

51,074

52,612

154,384

150,343

188,781

184,257(Millions of yen)
As of February 28, 2022

As of August 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses

7,963

8,062

4,871
16,935

4,871
15,211

428
479

1,033
371

Other

8,885

8,208

Total current liabilities

39,56337,75848,79138,388Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

886

199

1,675

1,697

Asset retirement obligations
Other

1,483
15,547

1,497
16,766

Total non-current liabilities

68,38458,549107,947

96,307

Shareholders' equity
Share capital

33,01833,018

Capital surplus
Retained earnings

30,1368,476

30,157
15,646

Total liabilities
Net assets

Treasury shares(1,485)(1,460)Total shareholders' equity

70,14577,361

10,297(63)

10,916(63)

Remeasurements of defined benefit plans

(344)

(349)

Total accumulated other comprehensive income

9,889

10,503798

84

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

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

480,833

87,949188,781

184,257

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

August 31, 2021

August 31, 2022

Net sales
Cost of sales

34,20521,891

38,41922,997Gross profit

12,314

15,422

Selling, general and administrative expenses

14,275

15,590Operating loss

(1,961)(168)

Interest income
Dividend income

5311

5365

Subsidies for employment adjustment
Cooperation money income

217
220

53186

Subsidy income
Other129
209

2,570
268

1,094

3,450

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

317

287

Loan fees
Share of loss of entities accounted for using equity method

101
120

74266

Other

118

93

Total non-operating expenses

657

721

(1,525)

2,560

–

6,985

9–

321
15

Reversal of provision for loss on disaster

117–

Total extraordinary income

127

7,322

Loss on retirement of non-current assets
Loss on disaster

335

652

Loss on cancellation of performances
Loss on temporary closure and other

526
383

205
–

Total extraordinary losses

948

264

Profit (loss) before income taxes(2,346)

9,618

Income taxes - current
Income taxes for prior periods

110(169)

818
–84

1,575

25

2,393

(2,372)

7,224

Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on change in equity
Gain on reversal of asset retirement obligations

Extraordinary losses

Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests

(73)

(330)

Profit (loss) attributable to owners of parent(2,298)7,554

5

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

Profit (loss)
Other comprehensive income

Six months ended

Six months ended

August 31, 2021

August 31, 2022
(2,372)

7,224

1,260
11618
–(16)

(4)

(0)

(0)

1,254

613

Comprehensive income(1,117)

7,837

Comprehensive income attributable toComprehensive income attributable to owners of parent(1,043)

8,167

(73)

(330)

Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive incomeComprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes

Six months ended

Six months ended

August 31, 2021

August 31, 2022
(2,346)

9,618

Depreciation
Increase (decrease) in provision for bonuses

2,890
(119)

2,616
(92)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

(195)

(686)

Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability(68)2755
21

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(72)
(317)

(12)
(367)

Interest expenses
Share of loss (profit) of entities accounted for using equity

317

287

120

266

–(6,985)

Loss on retirement of non-current assets
Gain on reversal of asset retirement obligations

3–

6(15)

Loss (gain) on change in equity
Loss on disaster(9)35(321)52

Losses on performance cancelled
Loss on temporary closure and other

526
383

205–

Decrease (increase) in trade receivables
Decrease (increase) in inventories(2,256)
852

548
(550)

Increase (decrease) in trade payables
Other, net

1,295
1,549

360
(978)

Subtotal

2,613

4,028

Interest and dividends received
Interest paid

426
(357)

479
(321)

Payments associated with disaster loss
Payments associated with cancellation of performances

(176)
(508)

(46)
(200)

Payments associated with temporary closure and other
Income taxes paid

(242)
(636)

–(370)

Income taxes refund

1,092

300

Net cash provided by (used in) operating activities

2,210

3,870

Payments into time deposits
Proceeds from withdrawal of time deposits(260)260

(100)
260

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

(621)
340

(619)
10,406

Purchase of intangible assets
Purchase of investment securities

(24)
(12)

(132)
(0)

Purchase of shares of subsidiaries and associates
Payments for asset retirement obligations

(0)
(61)

(18)
–Loan advances
Proceeds from collection of loans receivable

(396)
29

–
40

methodGain on sale of non-current assets

Cash flows from investing activities

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

78(30)

(738)

9,807

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Six months ended

Six months ended

August 31, 2021

August 31, 2022
210

–

4,300
(6,750)–(12,126)

Proceeds from share issuance to non-controlling shareholders
Repayments of lease obligations

800(423)1,800(406)

Repayments of installment payables
Purchase of treasury shares

(26)
(4)

(22)
(7)

Proceeds from long-term borrowings
Repayments of long-term borrowings

Proceeds from sale of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of period

8–0(1,895)(10,762)

(423)

2,915

18,017

16,531352

6–(2,784)

17,947

16,668