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, 2022
(Based on Japanese GAAP)
April 14, 2022
Company name:Shochiku Co., Ltd.

Stock exchange listing: Tokyo, Sapporo, Fukuoka
Stock code:9601
URL https://www.shochiku.co.jp
Representative:
Inquiries:

President and CEODirector

Jay Sakomoto
Hiroshige OsakiScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 25, 2022
May 26, 2022

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

Holding of financial results meeting:

NoTEL

03-5550-1699(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2022 (from March 1, 2021 to February 28, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2022
71,83537.0(4,005)–(2,801)–(1,762)–
Year ended February 28, 2021
52,434(46.2)(5,483)–(5,610)–(11,407)–

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
(2.2)
(1.5)
(5.6)
–
(13.3)(2.9)(10.5)

Diluted earnings pershare

Yen(128.33)(830.50)

Year ended February 28, 2022
Year ended February 28, 2021
(2) Consolidated financial position

Total assets
As of February 28, 2022
As of February 28, 2021

Net assets

Equity ratio

Millions of yen
188,781
191,205

Millions of yen
80,83380,608Cash flows fromoperating activities
Millions of yen
4,806(8,144)

Cash flows frominvesting activities
Millions of yen(1,668)(3,106)

Net assets per share%
42.4
41.9

Yen
5,827.78
5,837.84(3) Consolidated cash flows

Year ended February 28, 2022
Year ended February 28, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(4,977)
16,531
8,019
18,017

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

Year ended February 28, 2021
Year ended February 28, 2022
Year ending February 28, 2023
(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
0.000.00
0.00–––––––

0.00

–

30.00

30.00

16.1

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
Net sales
Full year

Millions of yen
89,640Percentages 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
–600
–
1,400
–
6,710
–
488.594. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:

NoNo

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 February 28, 2022

13,937,857 shares As of February 28, 2021

13,937,857 shares

Number of treasury shares at the end of the period
As of February 28, 2022

204,443 shares As of February 28, 2021

202,719 shares

13,734,320 shares Year ended February 28, 2021

13,735,608 shares

Average number of shares during the period
Year ended February 28, 20222

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2021

As of February 28, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

18,312
5,434

16,791
8,713

Merchandise and finished goods
Work in process

1,852
4,739

1,648
4,201

Raw materials and supplies
Advance payments to suppliers

108632

114
720

Prepaid expenses
Advances paid

867
399

1,134
158

Consumption taxes receivable
Other

820
2,168

42886

Allowance for doubtful accounts

(25)

(14)

35,31034,396

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

44,491

43,151

Facilities,net
Machinery, equipment and vehicles, net

11,6601,856

11,254
1,589

Tools, furniture and fixtures, net
Land

787
41,784902
41,847

Leased assets, net
Construction in progress

2,641
126

2,511
15

Other, net

28

31

103,377

101,304

1,660
8

1,451
6596
62

501
46

Total intangible assets

2,327

2,005

Investments and other assets
Investment securities

30,07031,560692
12,563

1,045
12,479

295
118

428
136

Guarantee deposits
Other

5,847
763

4,812
709

Allowance for doubtful accounts

(161)

(98)

Total property, plant and equipment
Intangible assets
Leasehold interests in land
Trademark right
Software
OtherLong-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Retirement benefit asset

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

350,18951,074

155,895

154,384

191,205

188,781(Millions of yen)
As of February 28, 2021

As of February 28, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

5,491

7,963

Short-term borrowings
Current portion of long-term borrowings

4,281
9,908

4,871
16,935

Lease obligations
Accounts payable - other783
1,545

1,213
2,611

Accrued expenses
Accrued business office tax

1,354
163

957
113

Income taxes payable
Accrued consumption taxes

860
163

428
1,165

Provision for bonuses
Other464
4,240

479
2,824

Total current liabilities

29,25739,563

Non-current liabilities
Long-term borrowings

61,266

48,791

Lease obligations
Deferred tax liabilities

2,017
4,801

1,414
4,838

Provision for retirement benefits for directors (and otherofficers)

1,036

886

Retirement benefit liability
Asset retirement obligations

1,568
1,394

1,675
1,483

Guarantee deposits receivedOther

8,474
778

8,715
579

Total non-current liabilities

81,33968,384

110,597

107,947

Shareholders' equity
Share capital

33,01833,018

Capital surplus
Retained earnings

30,136
10,32230,136
8,476

Total liabilities
Net assets

Treasury shares(1,470)(1,485)

Total shareholders' equity

72,00670,145

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

8,450
(59)

10,297(63)

Remeasurements of defined benefit plans

(213)

(344)

Total accumulated other comprehensive income

8,176

9,889

424

798Accumulated other comprehensive income

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

480,608

80,833

191,205

188,781

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

Net sales

52,434

71,835

Cost of sales

33,293

46,403Gross profit

19,141

25,432

1,872
9,073

3,096
10,064

Business office tax
Provision of allowance for doubtful accounts

1095111
14

Provision for bonusesRetirement benefit expenses

389
268

381
403

Provision for retirement benefits for directors (and otherofficers)

102

108

3,619
2,000

4,680
2,425

Selling, general and administrative expenses
Advertising expenses
Personnel expenses

Rent expenses on land and buildings
Depreciation
Other

7,182

8,152

Total selling, general and administrative expenses

24,62529,437(5,483)(4,005)

Operating loss
Non-operating income
Interest income

513

551
307

574
340

––

1,045
713

294

299

1,159

2,986

Interest expenses
borrowing fee

617
166

621
193

Share of loss of entities accounted for using equity method
Miscellaneous expenses

259
241735233

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

Total non-operating expenses

1,285

1,783

(5,610)(2,801)–

295

Gain on sale of investment securities
Gain on change in equity

–
–

170
9

Reversal of provision for loss on disaster–

117

Total extraordinary income–

593

Ordinary loss
Extraordinary income
Gain on sale of non-current assets

5(Millions of yen)

Extraordinary losses
Loss on sale of non-current assets

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022
48–

Loss on retirement of non-current assets
Loss on valuation of investment securities

190
117

67–

Loss on valuation of shares of subsidiaries and associates
Loss on disaster

–
310

2235

3,667
1,048

560340Loss on cancellation of performances
Loss on temporary closure and other
Impairment losses
Total extraordinary losses
Loss before income taxes

428

–

5,810

1,026

(11,420)(3,234)

Income taxes - current
Income taxes for prior periods

185–204(211)

Income taxes - deferred(128)(894)

Total income taxes
Loss
Loss attributable to non-controlling interests
Loss attributable to owners of parent

657

(901)

(11,478)(2,333)

(70)

(570)

(11,407)(1,762)

Consolidated statements of comprehensive income(Millions of yen)

Loss
Other comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

(11,478)(2,333)

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

1,727(23)1,848(3)

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted

(481)

(130)

(0)

(0)

1,221

1,713

Comprehensive income(10,256)(619)

Comprehensive income attributable toComprehensive income attributable to owners of parent(10,186)

(48)

(70)

(570)

for using equity method
Total other comprehensive income

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended February 28, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

33,018

Capital surplus

Retained earnings

30,13622,143

Treasury shares(1,456)

Total shareholders'equity83,841

Changes during period
Dividends of surplus
Loss attributable to owners ofparent

(414)

(414)

(11,407)(11,407)

Purchase of treasury shares
Disposal of treasury shares

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

(14)

(14)

01(0)

(0)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–0(11,821)(13)(11,834)

33,01830,136

10,322(1,470)72,006

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

6,723

(36)

268

6,955

Non-controllinginterests

Total net assets

495

91,292

Changes during period
Dividends of surplus(414)

Loss attributable to owners ofparent(11,407)

Purchase of treasury shares(14)

Disposal of treasury shares

1

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

Net changes in items otherthan shareholders' equity

1,726

(23)

(481)

1,221(70)

1,150

Total changes during period

1,726

(23)

(481)

1,221

(70)

(10,684)

Balance at end of period

8,450

(59)

(213)

8,176

424

80,6088

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)Total shareholders'equity72,006

Changes during period
Loss attributable to owners ofparent
Change in scope ofconsolidation(1,762)(1,762)

(83)

(83)

Purchase of treasury shares

(8)

(8)

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

(6)

(6)

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-controllinginterests

Total net assets

424

80,608Changes during period
Loss attributable to owners ofparent(1,762)

Change in scope ofconsolidation(83)

Purchase of treasury shares(8)

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

80,8339

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Loss before income taxes

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

(11,420)(3,234)

5,698(65)

5,614
14

Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability

4091(159)
107

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

22(150)

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

(42)
(557)

(73)
(588)

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

618

621

259

735

190

67

Loss (gain) on sale of property, plant and equipment
Loss on valuation of shares of subsidiaries and associates

48–

(295)
22

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

–
117

(170)
–

Loss (gain) on change in equity
Impairment losses

–428

(9)
–

Losses on performance cancelled
Loss on temporary closure and other

3,667
1,048560
340

Loss on disaster
Decrease (increase) in trade receivables

310
2,296

35(3,278)

Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers(1,747)
(119)

735
(80)

Increase (decrease) in trade payables
Decrease (increase) in guarantee deposits(1,227)
(68)

2,472
1,056

493
(849)

(698)
1,052

(2,135)
(713)

728
(86)

Depreciation
Increase (decrease) in provision for bonuses

methodLoss on retirement of property, plant and equipmentIncrease (decrease) in guarantee deposit received
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other, net

5(86)Subtotal(3,610)5,250Interest and dividends received

643

689

Interest paid
Payments associated with disaster loss

(547)–(619)(211)

Payments associated with cancellation of performances
Income taxes refund(3,557)–(542)
1,132

Payments associated with temporary closure and other
Income taxes paid

(836)
(237)

(199)
(692)

(8,144)

4,806

Net cash provided by (used in) operating activities

10

(Millions of yen)

Cash flows from investing activities
Payments into time deposits

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022
(294)

(260)

294
(2,120)294(2,263)

–
(188)

628
(132)

Proceeds from sale of intangible assets
Payments for asset retirement obligations

–
(1)

162
(61)

Purchase of investment securities
Proceeds from sale of investment securities

(45)
–

(303)
552

Purchase of shares of subsidiaries and associates
Loan advances

(300)
(500)

(0)(396)

Proceeds from collection of loans receivable
Other, net

59
(11)

5853

(3,106)(1,668)Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets

Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings

95590

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

19,500(9,173)

4,460(9,908)

Redemption of bonds for responsible property
Proceeds from share issuance to non-controlling shareholders(1,100)––800

Repayments of lease obligations
Purchase of treasury shares

(819)
(14)

(859)
(8)

Proceeds from sale of treasury shares
Repayments of installment payables

1(53)

–
(51)

Dividends paid

(415)

–

8,019

(4,977)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(3,232)(1,839)Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of

21,25018,017–352

18,017

16,531subsidiaries in consolidation
Cash and cash equivalents at end of period11