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, 2023
(Based on Japanese GAAP)
October 12, 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
Toshihiro Takahashi

Inquiries:
Senior Executive Officer
Scheduled date to file Quarterly Securities Report:

Hiroshige Osaki
October 12, 2023

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, 2023 (from March 1, 2023 to August 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2023
Six months ended August 31, 2022

Millions of yen
42,89938,419Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
11.7
2,350
–
1,665 (34.9)
3,315 (56.1)
12.3
(168)
–
2,560
–
7,554
–

Earnings per share

Diluted earnings per shareYen
241.36550.01

Six months ended August 31, 2023
Six months ended August 31, 2022

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2023
As of February 28, 2023

Net assets

Millions of yen
190,255
178,803

Equity ratio

Millions of yen
92,47786,482

Net assets per share%
48.6
48.3

Yen
6,723.34
6,289.19

2. Cash dividends
Annual dividends per share

Year ended February 28, 2023
Year ending February 29, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
30.00

Yen
30.00

–

30.00

30.00

Year ending February 29, 2024 (Forecast)Total

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
87,73012.2
1,300–
130 (90.4)
1,870 (65.9)
136.101

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

Yes
NoChanges 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, 2023

13,937,857 shares As of February 28, 2023

13,937,857 shares

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

198,127 shares As of February 28, 2023

201,406 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2023

13,737,842 shares Six months ended August 31, 2022

2

13,734,767 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2023

As of August 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract assets

16,113
7,469

22,868
7,745

Merchandise and finished goods
Work in process

1,701
3,953

1,656
4,587

Raw materials and supplies
Other

117
2,420

115
4,296

Allowance for doubtful accounts
Total current assets

(2)

(4)

31,772

41,264

39,836

38,848

9,712
39,6889,321
39,688Non-current assets
Property, plant and equipment
Buildings and structures, net
Facilities,net
Land
Other, net

3,799

3,682

Total property, plant and equipment

93,036

91,540

Other

1,914

1,907

Total intangible assets

1,914

1,907

Investment securities
Retirement benefit asset

33,467
159

37,034
241

OtherAllowance for doubtful accounts

18,539(86)

18,374(107)

Total investments and other assets

52,07955,542147,030

148,990

178,803

190,255

Intangible assets

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2023

As of August 31, 2023

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

6,116

8,232

4,871
17,404

4,971
19,754

865
527

1,150
421

Other

7,776

8,213

Total current liabilities

37,56142,74333,88732,719Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability

212

224

1,767

1,831

Asset retirement obligations
Other

1,512
17,3801,526
18,731

Total non-current liabilities

54,75955,03392,32097,777

Shareholders' equity
Share capital

33,01833,018

Capital surplus
Retained earnings

30,157
13,57630,174
16,478

Total liabilities
Net assetsTreasury shares(1,464)(1,440)Total shareholders' equity

75,28878,231

11,426(63)

14,440
(63)

(259)

(230)

11,102

14,14591

100

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

486,482

92,477

178,803

190,255

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, 2022

August 31, 2023

Net sales
Cost of sales

38,41922,99742,89924,620Gross profit

15,422

18,279Selling, general and administrative expenses

15,59015,928

(168)

2,350

Interest income
Dividend income

5365

5356

Subsidies for employment adjustment
Cooperation money income

53186

5–

Subsidy income
Other

2,570
268

72
82

Total non-operating income

3,450

522

28725974266

133743Operating profit (loss)
Non-operating income

Non-operating expenses
Interest expenses
Loan fees
Share of loss of entities accounted for using equity method
Other9371

Total non-operating expenses

721

1,207

Ordinary profit

2,560

1,665

Extraordinary income
Gain on sale of non-current assets

6,985

–

321
15–––
–

2,884
200

7,322

3,084

Gain on change in equity
Gain on reversal of asset retirement obligations
Gain on sale of investment securities
Gain on sale of businesses
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

68

Loss on disaster
Loss on cancellation of performances

52205

226–––

46
29

Impairment losses
Penalty cost

264

310

Profit before income taxes

Total extraordinary losses

9,618

4,438

Income taxes - current
Income taxes - deferred

818
1,575

933
179

Total income taxes

2,393

1,113

Profit

7,224

3,325

Profit (loss) attributable to non-controlling interests

(330)

9

Profit attributable to owners of parent

7,554

3,315

5

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

ProfitOther comprehensive income

Six months ended

Six months ended

August 31, 2022August 31, 2023
7,224

3,325

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

618
(4)

3,011
29

Share of other comprehensive income of entities accounted
for using equity method(0)2

Total other comprehensive income

613

3,042

7,837

6,368

8,167

6,358(330)9Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodGain on sale of non-current assets
Loss on retirement of non-current assets
Loss (gain) on sale of investment securitiesGain on reversal of asset retirement obligations
Loss (gain) on change in equity
Impairment losses
Loss (gain) on sale of businesses
Penalty costs
Loss on disaster
Losses on performance cancelled
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Payments associated with disaster loss
Payments associated with cancellation of performances
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activitiesPayments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
Proceeds from sale of businesses
Other, net
Net cash provided by (used in) investing activities

7

Six months ended

Six months ended

August 31, 2022

August 31, 2023
9,618
2,616(92)4,438
2,305(105)

(686)

1255
21(12)
(367)
287

(81)
63
22(361)
259

266

743

(6,985)
6–
(15)
(321)
–––
52
205
548
(550)
360
(978)
4,028
479
(321)
(46)
(200)
(370)
300
3,870–
8(2,884)
–
–
46
(200)
29
226
–
(275)
(585)
2,115
689
6,467
416
(255)
––
(740)
–
5,887

(100)
260
(619)
10,406
(132)
(0)
–
(18)
–
40
–
(30)
9,807

(100)
100
(559)
–(93)
(31)
4,179
(1,400)(2,000)
26
200
(17)
303

(Millions of yen)

Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from share issuance to non-controlling shareholders
Repayments of lease liabilities
Repayments of installment payables
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
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

Six months ended

Six months ended

August 31, 2022

August 31, 2023–
(12,126)
1,800
(406)
(22)
(7)
0–
(10,762)
2,915
16,5313,000(1,717)
–
(274)
(21)
(11)
1(413)
563
6,754
16,013

6–(2,784)–

16,66822,768