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 February 28, 2023
(Based on Japanese GAAP)
April 14, 2023
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 of ordinary general meeting of shareholders:

Hiroshige Osaki
May 23, 2023

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

May 24, 2023
May 24, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:

NoNo

TEL

03-5550-1699(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2023 (from March 1, 2022 to February 28, 2023)(1) Consolidated operating results
Net salesYear ended February 28, 2023
Year ended February 28, 2022

Operating profit

Millions of yen
78,212
71,835%8.9
37.0

Millions of yen(776)(4,005)

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
6.6
0.7
(1.0)
–
(2.2)
(1.5)
(5.6)

Yen
399.30(128.33)

Year ended February 28, 2023
Year ended February 28, 2022%––

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
1,359
–5,484–(2,801)–(1,762)–(2) Consolidated financial position
Total assets
As of February 28, 2023
As of February 28, 2022

Net assets

Equity ratio

Millions of yen
178,803
188,781Millions of yen
86,48280,833

Cash flows fromoperating activities
Millions of yen
6,061
4,806

Cash flows frominvesting activities
Millions of yen
9,706(1,668)

Net assets per share%
48.3
42.4

Yen
6,289.19
5,827.78(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalentsfinancing activities
at end of period
Millions of yen
Millions of yen(13,507)
16,013(4,977)
16,531

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

Year ended February 28, 2022
Year ended February 28, 2023
Year ending February 29, 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

––

0.00
30.00

0.00
30.00–414

–
7.5

–
0.5

–

0.00

–

30.00

30.00

141.2

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
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
92,46018.2
2,230–
1,380
1.5
1,000 (81.8)
72.80
4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2023

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 February 28, 2023

201,406 shares As of February 28, 2022

204,443 shares

13,735,604 shares Year ended February 28, 2022

13,734,320 shares

Average number of shares during the period
Year ended February 28, 2023

2

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

As of February 28, 2023

AssetsCurrent assets
Cash and deposits

16,791

16,113

Notes and accounts receivable - trade
Notes and accounts receivable - trade and contract assets

8,713
–

–
7,469

Merchandise and finished goods
Work in process

1,648
4,201

1,701
3,953

Raw materials and supplies
Advance payments to suppliers

114
720

117
484

1,134
158

1,071
582

Consumption taxes refund receivable
Other

42886

–
281

Allowance for doubtful accounts

(14)

(2)

34,396

31,772

43,151

39,836

Facilities,net
Machinery, equipment and vehicles, net

11,254
1,589

9,712
1,222

Tools, furniture and fixtures, net
Land

902
41,847783
39,688

Leased assets, net
Construction in progress

2,511
15

1,729
15

Prepaid expenses
Advances paid

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

Other, net

31

48

101,304

93,036

1,451
6

1,451
3

501
46

408
50

Total intangible assets

2,005

1,914

Investments and other assets
Investment securities

31,56033,467

1,045
12,479956
11,953

428
136

444
159

4,812
709

4,806
378

Total property, plant and equipment
Intangible assets
Leasehold interests in land
Trademark rightSoftware
Other

Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Retirement benefit asset
Guarantee deposits
Other
Allowance for doubtful accounts

(98)

(86)

Total investments and other assets

51,07452,079154,384

147,030

188,781

178,803

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2022

As of February 28, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

7,963
4,871

6,116
4,871

Current portion of long-term borrowings
Lease liabilities

16,935
1,213

17,404697

Accounts payable - otherAccrued expenses

2,611
957

2,010
1,244

Accrued business office tax
Income taxes payable

113
428

114
865

Accrued consumption taxes
Provision for bonuses

1,165
479

947
527

Other

2,824

2,763

Total current liabilities

39,56337,561Long-term borrowings
Lease liabilities

48,791
1,414

33,887
1,422

Deferred tax liabilities
Provision for retirement benefits for directors (and other

4,838

6,734

Non-current liabilities

officers)
Retirement benefit liability

886

212

1,675

1,767

Asset retirement obligations
Guarantee deposits received

1,483
8,715

1,512
8,054

579

1,168

Other
Total non-current liabilities

68,38454,759107,947

92,320Share capital
Capital surplus

33,01830,13633,01830,157Retained earnings
Treasury shares

8,476(1,485)

13,576(1,464)

Total shareholders' equity

70,14575,288

10,297

11,426

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(63)
(344)

(63)
(259)

Total accumulated other comprehensive income

9,889

11,102798

91

Total liabilities
Net assets
Shareholders' equity

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

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

480,833

86,482

188,781

178,803

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended

Fiscal year ended

February 28, 2022

February 28, 2023

Net sales
Cost of sales

71,83546,403

78,212
46,295Gross profit

25,432

31,917

Selling, general and administrative expenses
Advertising expenses

3,096

3,876

10,064111

10,432
113

Provision of allowance for doubtful accounts
Provision for bonuses

14381

21
444

Retirement benefit expenses
Provision for retirement benefits for directors (and other403

466

Personnel expenses
Business office tax

officers)
Rent expenses on land and buildings

108

42

4,680

4,996

Depreciation
Other

2,425
8,152

2,312
9,987

Total selling, general and administrative expenses

29,43732,693(4,005)

(776)

13574

11679

340
1,045

79
238

713
299

2,615
309

2,986

3,934

Operating lossNon-operating income
Interest income
Dividend income
Subsidies for employment adjustment
Cooperation money income
Subsidy income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses

621

536

borrowing fee
Share of loss of entities accounted for using equity method

193
735

143
937

Miscellaneous expenses

233

181

Total non-operating expenses
Ordinary profit (loss)

1,783

1,798(2,801)

1,359

295
170

6,996–

9–321
15

Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on change in equity
Gain on reversal of asset retirement obligations
Reversal of provision for loss on disaster

117–

Total extraordinary income

593

7,333

5

(Millions of yen)
Fiscal year ended
February 28, 2022

Fiscal year ended
February 28, 2023

Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries and associates

67
2222–

Loss on disaster
Loss on cancellation of performances

35560

52205

Loss on temporary closure and otherImpairment losses

340––852–

288

Loss on disposal of inventories
Total extraordinary losses

1,026

1,421

Profit (loss) before income taxes(3,234)

7,271

Income taxes - current
Income taxes for prior periods

204
(211)

753
–

Income taxes - deferred

(894)

1,356

Total income taxes

(901)

2,110

Profit (loss)(2,333)

5,161

Loss attributable to non-controlling interests

(570)

(323)

Profit (loss) attributable to owners of parent(1,762)

5,484

6Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
February 28, 2022

Fiscal year ended
February 28, 2023

Profit (loss)(2,333)

5,161

Other comprehensive income
Valuation difference on available-for-sale securities

1,848

1,128

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(3)
(130)

–84(0)

1

1,713

1,214(619)

6,376

(48)

6,699

(570)

(323)

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 of parent
Comprehensive income attributable to non-controllinginterests

7Consolidated statements of changes in equity
Fiscal year ended February 28, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

33,018

Capital surplus

Retained earnings

30,136

10,322

Treasury shares(1,470)

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders'equity72,006–33,01830,136

10,322(1,470)72,006

Changes during period
Profit (loss) attributable toowners of parent
Change in scope of
consolidation(1,762)(1,762)

(83)

(83)

Purchase of treasury shares

(8)

(8)

(6)

(6)

Disposal of treasury shares
Change in treasury sharesarising from change in equity
in entities accounted for using
equity method
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––(1,845)(15)(1,861)33,01830,136

8,476(1,485)70,145

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

8,450

(59)

(213)

8,176

Non-controllinginterestsTotal net assets

424

80,608Cumulative effects ofchanges in accounting
policies
Restated balance

–
8,450

(59)

(213)

8,176

424

80,608Changes during period
Profit (loss) attributable toowners of parent(1,762)

Change in scope ofconsolidation(83)

Purchase of treasury shares(8)

Disposal of treasury shares
Change in treasury sharesarising from change in equity
in entities accounted for using
equity method(6)

Net changes in items otherthan shareholders' equity

1,847

(3)

(130)

1,713

373

2,086

Total changes during period

1,847(3)(130)

1,713

373

225

Balance at end of period

10,297

(63)

(344)

9,889

798

80,8338Fiscal year ended February 28, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

33,018

Capital surplus

Retained earnings

30,136

8,476

Cumulative effects ofchanges in accounting
policies
Restated balance

Treasury shares(1,485)(370)
33,01830,136

8,106

Total shareholders'equity70,145(370)(1,485)69,775

Changes during period
Profit (loss) attributable toowners of parent
Change in scope of
consolidation

5,484

5,484(13)(13)

Purchase of treasury shares
Disposal of treasury shares

20

Change in treasury sharesarising from change in equity
in entities accounted for using
equity method

(10)

(10)

3252(0)(0)

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

–

20

5,470

21

5,512

33,01830,157

13,576(1,464)

75,288

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefitplans

Total accumulated
othercomprehensive
income10,297(63)

(344)

9,889

Non-controllinginterests

Total net assets

798

80,833Cumulative effects ofchanges in accounting
policies
Restated balance(370)
10,297(63)

(344)

9,889

798

80,463

Changes during period
Profit (loss) attributable toowners of parent

5,484

Change in scope ofconsolidation(13)

Purchase of treasury shares(10)

Disposal of treasury shares

52

Change in treasury sharesarising from change in equity
in entities accounted for using
equity method(0)

Net changes in items otherthan shareholders' equity

1,128

84

1,213(706)506

Total changes during period

1,128–84

1,213(706)6,019Balance at end of period

11,426(63)(259)

11,102

91

86,4829

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
February 28, 2022

Fiscal year ended
February 28, 2023

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation(3,234)
5,614

7,271
5,147

Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset

14(159)63112

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for

107

91(150)(673)

directors (and other officers)
Increase (decrease) in allowance for doubtful accounts

(73)

(24)

Interest and dividend income
Interest expenses

(588)
621

(691)
536

Share of loss (profit) of entities accounted for using equity
method735

937

Loss on retirement of property, plant and equipment
Loss (gain) on sale of property, plant and equipment

67(295)22(6,996)

Loss on valuation of shares of subsidiaries and associates
Loss (gain) on sale of investment securities

22(170)––Gain on reversal of asset retirement obligations
Loss (gain) on change in equity

–(9)

(15)
(321)

Impairment losses
Losses on performance cancelled

–
560

852
205

Loss on temporary closure and other
Loss on disaster

340
35–
52

Loss on disposal of inventories
Decrease (increase) in trade receivables–(3,278)

288
–

–
735

1,071(458)

Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables

(80)
2,472

235(1,585)

Decrease (increase) in guarantee depositsIncrease (decrease) in guarantee deposit received

1,056
(698)

(57)
(387)

Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets

1,052
728

(164)
(279)

(86)
(86)

(322)
1,155

Subtotal

5,250

6,068

Interest and dividends received
Interest paid

689
(619)

805
(572)

Payments associated with disaster loss
Payments associated with cancellation of performances

(211)
(542)

(46)
(200)

Payments associated with temporary closure and other
Income taxes refund(199)
1,132–300

Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories

Increase (decrease) in other current liabilities
Other, net

Income taxes paid

(692)

(293)

Net cash provided by (used in) operating activities

4,806

6,061

10

(Millions of yen)
Fiscal year ended
February 28, 2022

Fiscal year ended
February 28, 2023

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

(260)
294

(100)
260

(2,263)628(864)
10,296

Purchase of intangible assets
Proceeds from sale of intangible assets

(132)
162

(194)
–Payments for asset retirement obligations
Purchase of investment securities

(61)
(303)

–(98)

Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates

552
(0)

30
(18)

Loan advances
Proceeds from collection of loans receivable

(396)
58

–
72

53

322

(1,668)

9,706

Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

590
4,460––

Repayments of long-term borrowings
Proceeds from share issuance to non-controlling shareholders(9,908)800(14,435)
1,800

Repayments of lease liabilitiesPurchase of treasury shares

(859)
(8)

(816)
(10)

Proceeds from sale of treasury shares
Repayments of installment payables

–(51)

0(45)

(4,977)(13,507)

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

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents(1,839)2,260

Cash and cash equivalents at beginning of period

18,017

16,531

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation352

6

Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation–(2,784)

16,531

16,013

Cash and cash equivalents at end of period11