This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. January 12, 2023
SALA Corporation Company name: Tokyo Stock Exchange / Nagoya Stock Exchange Listing: Securities code: 2734 URL: https://www.sala.jp/ Goro Kamino, President and Representative Director, Group Representative and CEO Representative: Shinichi Ichikawa, Manager of General Affairs Group, General Affairs Department Inquiries: Telephone: +81-532-51-1182 Scheduled date of annual general meeting of shareholders: February 17, 2023 Scheduled date to commence dividend payments: January 31, 2023 Scheduled date to file annual securities report: February 20, 2023 Preparation of supplementary material on financial results: None Yes (for institutional investors and Holding of financial results briefing: analysts) (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended November 30, 2022 (from December 1, 2021 to November 30, 2022)
For the fiscal year ended November 30, 2022: ¥7,545 million  [29.1%] Note:   Comprehensive income For the fiscal year ended November 30, 2021: ¥5,844 million  [100.5%]
Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended November 30, 2022:   ¥330 million For the fiscal year ended November 30, 2021:   ¥391 million The Company has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Note: Japan (ASBJ) Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and each figure for the fiscal year ended November 30, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations. Note:
Reference: Equity As of November 30, 2022: As of November 30, 2021:
¥72,012 million
¥65,425 million
Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and each figure as of November 30, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations.
celebrate the 20th anniversary of the Company's establishment.
3. Consolidated earnings forecasts for the fiscal year ending November 30, 2023 (from December 1,
2022 to November 30, 2023)

* Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None (2) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii)Changes in accounting estimates: None (iv) Restatement: None Note:    For details, please refer to "(5) Notes to consolidated financial statements (Changes in accounting policies)" of "3. Consolidated financial statements and significant notes thereto" on page 18 of the attachment. (3) Number of issued shares (common shares)

[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended November 30, 2022 (from December 1, 2021 to November 30, 2022)
(2) Non-consolidated financial position
As of November 30, 2022: As of November 30, 2021: ¥45,544 million ¥45,096 million * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. *  Proper use of earnings forecasts, and other special matters (Caution concerning forward-looking statements) The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ significantly due to various unforeseen factors. Please refer to the section of "(4) Future outlook" of "1. Overview of operating results, etc." on page 5 of the attached material for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

1. Overview of operating results, etc.
(1)  Overview of operating results for the fiscal year
In the fiscal year ended November 30, 2022, the Japanese economy saw an increase in uncertainties regarding the economic outlook due to factors such as rising cost of living due to the impact of situation in Ukraine, depreciation of the yen, etc., while efforts to both prevent the spread of the novel coronavirus disease (COVID-19) and to revitalize socioeconomic activities continued to progress. Under these conditions, the Group (hereinafter referred to as the "SALA Group") focused on initiatives for "new developments by SALA in life," "SALA's penetration" and "transformation and challenge," which are priority issues in the fourth medium-term management plan with the fiscal year ended November 30, 2022 as the final fiscal year, and the SALA Group worked in unison to promote each measure to complete this medium-term management plan. SALA ENERGY CO., LTD., which operates the Energy & Solutions business, worked to prepare to rebuild a core system in order to provide optimal high quality services to customers through the use of digital technologies. In March 2022, the company entered into an agreement related to the "project to introduce renewable energy to city-owned facilities" with Toyohashi City and started initiatives that systematically entrust services from the installation of solar power generation equipment, etc. at 15 facilities owned by Toyohashi City to the operation, maintenance, and management of the equipment. In the Engineering & Maintenance business, the Company sought to strengthen contact with customers by leveraging its strength in providing a one-stop shop for sales, construction, and after-sales maintenance, and to expand transactions by proposing optimal solutions in collaboration with other companies in the SALA Group. SALA HOUSE CO., LTD., which is the Housing business, opened a model house with LCCM (Life Cycle Carbon Minus) specifications in August 2022, which reduces the CO 2 balance throughout the life cycle of a house from construction to demolition, and promoted carbon neutrality in the field of housing. SALA CARS JAPAN Co., Ltd., which is the Car Life Support business, worked in cooperation with SALA ENERGY CO., LTD. and SALA e ENERGY CO., LTD. and started to make its stores carbon neutral, reducing CO 2 emissions from electricity and gas used in the showrooms to effectively zero. ASCO Co., Ltd., which is the Animal Health Care business, following the integration of its subsidiary Hokuyaku Co., Ltd. in December 2021, prepared for the integration of its subsidiaries A.M.I. Co., Ltd. and Daiwa Pharmaceutical Co., Ltd. in December 2022 in order to further strengthen profitability and expand market share. emCAMPUS Co., Ltd, which was founded in December 2021 in the emCAMPUS EAST, has started joint projects through industry- academia collaboration, aiming to revitalize the local community. Additionally, by holding cross- industrial cooperative training programs with employees of various companies from the region as participants, emCAMPUS Co., Ltd. has been working to develop human resources that can create new value in the region. As for operating results for the current fiscal year, net sales increased by 3.0% year on year to ¥234,848 million, and operating profit rose by 4.5% year on year to ¥6,891 million, due to higher sales and profit in the Energy & Solutions business, amid a decrease in revenue of ¥15,395 million compared with the previous accounting method due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations. Ordinary profit increased by 3.5% year on year to ¥8,601 million due to an increase in gain on valuation of derivatives on forward exchange contracts in non- operating income. Profit attributable to owners of parent increased by 8.0% year on year to ¥5,682 million due to an increase in gain on sale of investment securities in extraordinary income. Net sales, operating profit, and ordinary profit posted record highs. Result of each segment is as follows. Energy & Solutions business Net sales ¥116,634 million (up 17.8% year on year) Operating profit ¥3,996 million (up 33.0% year on year) With regard to city gas, sales volume mainly for home use and industrial use increased. Net sales increased due to the upwardly adjustment of the selling price of city gas based on a system to adjust raw material costs, and due to the revision of the selling price of LP gas was in response to higher raw material prices. In terms of profit, operating profit increased due to higher gross profit from city gas sales. Engineering & Maintenance business Net sales ¥30,184 million (down 1.8% year on year) Operating profit ¥2,192 million (down 4.1% year on year) Although the construction department and the maintenance department performed well, net sales declined due to a decrease in large completed projects for the public sector in the civil engineering department. As for profit, despite efforts to reduce cost of sales by thorough process management, operating profit decreased due to the declined profit margin of completed construction in the equipment work department and the civil engineering department. Housing business ¥38,209 million (down 1.0% year on year) Net sales Operating profit ¥568 million (down 27.2% year on year) In the housing sales department, both the number of lot houses sold and custom-built houses sold declined due to the impact of soaring material prices and other factors. On the other hand, in the housing components and materials processing and sales department, orders received increased as a result of its efforts to expand transactions mainly in the existing business partners. Overall segment sales and operating profit both declined due to the decrease in the number of homes sold. Car Life Support business ¥16,964 million (up 9.2% year on year) Net sales Operating profit ¥241 million (down 9.7% year on year) Both Volkswagen and Audi experienced a decrease in the number of new cars sold due to the impact of the lower production volume resulting from semiconductor shortages, etc. On the other hand, since the number of used cars sold increased due to the Company focusing on used car sales, net sales increased. As for profit, operating profit decreased due to an increase in selling, general and administrative expenses, such as promotion expenses. Animal Health Care business Net sales ¥25,989 million (down 15.9% year on year) Operating profit  ¥669 million (down 8.0% year on year) Orders for veterinary medical products, etc. received decreased due to the impact of high feed prices, etc. Net sales decreased due to the inclusion of a decreasing factor of ¥4,789 million from the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations. As for profit, operating profit declined due to lower gross profit in both the livestock farming department and the pet related department. Properties business ¥4,728 million (down 51.4% year on year) Net sales Operating loss ¥418 million (operating loss of ¥189 million for the previous fiscal year) Since the previous fiscal year's results included sales results of a condominium apartment building completed during the period, net sales declined significantly and the operating loss increased. In the hospitality department, the number of customers for banquets, bridal services, and hotel stays, etc. were below the level before the spread of COVID-19.
(2)  Overview of financial position for the fiscal year
Assets, liabilities and net assets

Assets
Assets amounted to ¥188,417 million, up ¥935 million from November 30, 2021. This was mainly due to increases in "notes and accounts receivable - trade, and contract assets" by ¥6,549 million, "other" under investments and other assets by ¥758 million, and "electronically recorded monetary claims - operating" by ¥552 million, despite decreases in "work in process" by ¥3,479 million, "property, plant and equipment" by ¥2,424 million, and "long-term borrowings" by ¥735 million.
Liabilities
Liabilities were ¥115,062 million, down ¥5,719 million from November 30, 2021. This was mainly due to decreases in "long-term borrowings (including current portion)" by ¥3,940 million, "other" under current liabilities by ¥2,554 million and "retirement benefit liability" by ¥2,246 million, despite an increase in "notes and accounts payable - trade" by ¥3,171 million.
Net assets
Net assets were ¥73,355 million, up ¥6,655 million from November 30, 2021. This was mainly due to an increase in "retained earnings" of ¥4,710 million (increased by ¥5,682 million due to recording of profit attributable to owners of parent, decreased by ¥1,584 million due to payment of dividends, increased by ¥601 million due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations and increased by ¥11 million due to change in scope of consolidation).
(3)  Overview of cash flow position for the fiscal year
Cash and cash equivalents (hereinafter referred to as "cash") in the current fiscal year decreased by ¥455 million in total, resulting from net cash provided by operating activities of ¥9,930 million, net cash used in investing activities of ¥3,861 million, and net cash used in financing activities of ¥6,524 million.
Cash flows from operating activities
Net cash provided by operating activities was ¥9,930 million (down 37.2% year on year). This was mainly due to increase factors such as "profit before income taxes" of ¥8,421 million, "depreciation" of ¥6,827 million, "increase in trade payables" of ¥3,308 million, and decrease factors including "increase in trade receivables" of ¥5,725 million and "income taxes paid" of ¥2,529 million.
Cash flows from investing activities
Net cash used in investing activities was ¥3,861 million (12.2% decrease of cash outflow year on year). This was mainly due to a decrease factor of "purchase of property, plant and equipment" by ¥4,793 million and an increase factor of "proceeds from collection of loans receivable" of ¥791 million.
Cash flows from financing activities
Net cash used in financing activities was ¥6,524 million (25.8% decrease of cash outflow year on year). This was mainly due to decrease factors such as "repayments of long-term borrowings" of ¥10,022 million, "dividends paid" of ¥1,594 million and "net decrease in short-term borrowings" of ¥847 million, and increase factors including "proceeds from long-term borrowings" of ¥6,100 million and "proceeds from sale of treasury shares" of ¥105 million.
(Notes)  1. Each index was calculated by the following formulas using financial figures on a consolidated basis. Equity-to-asset ratio: equity / total assets Market value equity ratio: market capitalization / total assets Interest-bearing debt to cash flow ratio: interest-bearing debt / cash flow Interest coverage ratio: cash flow / interest payments Market capitalization was calculated as the closing price of share price at period-end multiplied by 2. the number of issued shares at period-end after deducting treasury shares. Interest-bearing debt covers all liabilities on which interest has been paid among liabilities recorded 3. in the consolidated balance sheet. For cash flow and interest payments, "cash flows from operating activities" and "interest paid" 4. recorded in the consolidated statement of cash flows were used.
(4) Future outlook
i) Medium- to long-term management strategies
In 2019, the year of its 110th anniversary, the SALA Group set forth its 2030 vision, "SALA in my town, SALA with people's lives," as the future we want to realize. In this vision, we pledge to continue to provide new and enjoyable value, as well as safety, security, comfort, and convenience, by thoroughly pursuing the ease of life for our customers even in the midst of drastic social changes. In addition, the Group aims to establish the SALA brand as proof of trust for customers, communities, business partners and shareholders, and be a company that is the best place to work for employees. To realize this vision, we laid the groundwork toward new growth in the fourth medium-term management plan (from the fiscal year ended November 30, 2020 to the fiscal year ended November 30, 2022). Now, in order to further advance our transformation toward growth, we have formulated the fifth medium-term management plan under the themes of collaboration and co-creation.
[Outline of the fifth medium-term management plan]
The fifth medium-term management plan (from the fiscal year ending November 30, 2023 to the fiscal year ending November 30, 2025) focuses on collaboration and co-creation, and sets the basic policy of "going beyond the framework" to take on the challenge of further growth. The five key strategies are "service and business development in the Life Creative Business Unit* and transformation of the business format," "enhancing brand value through 'customer experience' that exceeds expectations," "business creation through 'co-creation' with parties inside and outside the Group," "improving profitability in existing business fields," and "transforming into an organizational culture that attracts people who 'think and act on their own initiative.' "Through proactive collaboration and co-creation with other companies within and outside the Group, we will solve local community and customer issues and provide customer experiences that exceed customer expectations, thereby enhancing SALA's brand value and realizing the 2030 Vision. ※ "Life Creative Business Unit" refers to business areas for daily living other than the energy business. 1.
Key strategies
[Key strategy 1] Service and business development in the Life Creative Business Unit and transformation of the business format In order to grow the Life Creative Business Unit, we will develop new services and businesses in the lifestyle field, while transforming our business format to solve customer issues and local community social problems as "One SALA" by removing existing segments and company frameworks. (1) Business transformation that removes existing frameworks toward "One SALA" (2) Development of new services and businesses (3) Carbon neutral initiatives [Key strategy 2] Enhancing brand value through "customer experience" that exceeds expectations From the customer's perspective, we will provide a variety of services as "One SALA" to realize a "customer experience" that exceeds customer expectations and enhance SALA's brand value. (1) Providing a customer experience that prompts customers to say, "I like SALA!" (2) Research on products and services related to housing and daily living [Key strategy 3] Group. Business creation through "co-creation" with parties inside and outside the Group We will work to create new businesses that help solve social issues in the local community through "co-creation" with local companies, organizations, and government authorities, not limited within the (1) Practicing business creation through "co-creation" both inside and outside of the Group (2) “Co-creation” initiatives in the Hamamatsu area [Key strategy 4] Improving profitability in existing business fields We will achieve an operating profit margin of 3% or more on consolidated net sales by reforming business processes toward improving profitability in existing business fields. (1) Establishment of improvement targets and implementation of business process reforms according to the business characteristics of each business (2) Improving productivity through group-wide standardization and digitalization of administrative operations. Transforming into an organizational culture that attracts people who "think and act [Key strategy 5] on their own initiative" We will work to create a new SALA organizational climate that incorporates diverse values, promotes the advancement of diverse individuals, and enhances value creation. We will establish measures and systems that enable each employee to think and act on his or her own initiative and continue to grow and take on challenges. Realization of transformation that enables each employee to think and act on his or her own (1) initiative (2) Transforming into a culture where a diverse workforce can thrive (3) Creating a system that allows new challenges and co-creation to continue
2.
Priority initiatives of each segment
Energy & Solutions
. Through energy-saving and carbon-neutral proposals, we will work to resolve issues faced by our customers and local communities. We will also work to shift to a business model that maximizes Group profits through co-creation with those inside and outside of the Group. . We will work on procurement of carbon neutral gas and electricity, development of renewable energy sources, etc., as well as promoting collaboration with local companies and government authorities to achieve carbon neutrality in the local community. . We will maximize the lifetime transaction volume per customer by improving management efficiency through fundamental reform of business processes using digital technology, coordinating and utilizing customer data across the Group, and revitalizing communication through digital channels. Engineering & Maintenance We will continue business process reforms to build a stable revenue base, and further strengthen our revenue base by enhancing contact with customers and acquiring new customers through group-wide collaboration. . We will contribute to carbon neutrality in our customers' business activities by proposing infrastructure that contributes to decarbonization through energy conservation, energy creation, and carbon offsetting.
Housing
. In the housing sales department, we will strengthen profitability by thoroughly developing products and services from the customer's perspective and by reforming business processes in existing businesses. In addition, we will work to create new businesses, such as initiatives for non- single family home wooden structures. . The housing components and materials processing and sales department will work to improve its construction capabilities for exterior and building frames in order to attract new customers, while strengthening its handling of carbon-neutral materials and expanding its handling of materials for non-single family home wooden structures such as apartment complexes. We also aim to increase our market share in the Nagoya and Nishi Mikawa areas, as well as in the Kanto area.
Car Life Support
. We will continue to improve customer satisfaction by further enhancing cooperation among the new and used car sales departments and service department, and by implementing proposals tailored to customer needs. . We will promote carbon neutrality of our dealerships and maintenance garages through group- wide cooperation, and strengthen sales of electric vehicles (EVs). In addition, we will work to create new services that link households, cars, and energy in cooperation with other companies within and outside the Group.
Animal Health Care
. We will work to transform ourselves into an efficient business structure by restructuring our supply chain, including the separation of sales and delivery operations and the consolidation of warehouse operations. . We will build an organizational sales structure that does not rely on individual sales skills by strengthening marketing and service planning & development functions, and by utilizing customer information accumulated to date.
Properties
. The real estate properties department will promote initiatives to strengthen contact with customers, matching agreements between customers, and initiatives to improve real estate owner satisfaction. In addition, we will improve profitability through initiatives related to customers' asset management and operation, and by implementing previously owned home business through group-wide cooperation. . At emCAMPUS WEST, the Toyohashi Ekimae Odori 2-chome District Redevelopment Project scheduled for completion in 2024, we will work to create a new space that will lead to urban revitalization, based on the concept of improving the health and quality of life of local residents and creating a lively atmosphere. . In the hospitality department, we will strengthen our product planning capabilities and employee training to increase the number of new customers and encourage repeat usage by customers through the provision of high-quality products and services.
3.

The effects of loss (gain) on valuation of derivatives on forward exchange contracts are not included in the (Note) plan for the fiscal year ending November 30, 2023.
(5)  Basic policy on profit sharing and dividends for the current and next fiscal years
The Company has stipulated, as its basic policy on dividends, that the Company pays dividends with the target consolidated payout ratio excluding effects of loss (gain) on valuation of derivatives on forward exchange contracts at 30%. Because SALA e POWER Co., Ltd., a consolidated subsidiary of the Company, entered into a forward exchange contract in November 2017 to pay for foreign-currency purchase transactions of imported materials, market price valuation differences for the forward exchange contract will be recorded as loss (gain) on valuation of derivatives at each quarter-end for the time being. Since these market price valuation differences are merely valuations at market value as at period-end which do not involve any movement of cash flows, such a changing faction is excluded from resources that serve as the basis for profit sharing. As for the year-end dividend for the current fiscal year, the Company decided at the Board of Directors meeting held on July 6, 2022 to pay a commemorative dividend of ¥2 per share to celebrate the 20th anniversary of the Company's establishment, and the Company decided at the Board of Directors meeting held on January 12, 2023 to pay an ordinary dividend of ¥13 per share based on the basic dividend policy above. Accordingly, the total year-end dividend for the current fiscal year will be ¥15 per share, consisting of an ordinary dividend of ¥13 per share and a commemorative dividend of ¥2 per share. (Effective date: January 31, 2023) As a result, the annual dividend for the current fiscal year, together with the interim dividend of ¥11, is ¥26 per share. The consolidated dividend payout ratio excluding the impact of loss (gain) on valuation of derivatives on forward exchange contracts is 30.4% excluding the commemorative dividend, and 32.9% including the commemorative dividend of ¥2 per share. For dividends for the next fiscal year, the Company will also make a payment in accordance with the above basic policy.
2. Basic policy regarding selection of accounting standards
The Group adopts the Japanese GAAP as the accounting standards in order to ensure comparability among other domestic companies in the same industry.

(2)  Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of comprehensive income

(5) Notes to consolidated financial statements
Uncertainties of entity’s ability to continue as going concern Not applicable.
Changes in accounting policies
Application of accounting standard for revenue recognition, etc. The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the current fiscal year, and it has recognized revenue at the time the control of promised goods or services is transferred to the customer at the amount expected to be received upon exchange of said goods or services. Major changes due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations are as follows.
Revenue recognition related to sales of LP gas and electricity
(i)
In relation to sales of LP gas and electricity, the Company changed the method of revenue recognition whereby, of revenues previously recognized on the basis of the date of reading the electricity meter, revenue arising between the date of reading the meter in the settlement month and the settlement date is recognized based on the reasonable estimates.
(ii) Revenue recognition related to agent transactions
In relation to revenue for some direct transactions of principally sales of LP gas and veterinary medical products, the Company previously had recognized the entire amount of consideration received from customers as revenue, and that has been changed to a method that recognizes revenue at the net amount after deducting the amount paid to suppliers from the amount received from customers for transactions in which the SALA Group acts as an agent for the provision of goods or services to customers.
(iii) Revenue recognition related to construction contracts
With respect to construction contracts, the Company previously had applied the percentage-of- completion method to construction work whose outcome from the completed portion was deemed definite, and had applied the completed-contract method to other construction work. As a result of this application, however, the Company has changed the method to recognize revenue over a certain period of time in alignment with its satisfaction of performance obligations to transfer goods or services to customers when control over a good or service is to be transferred to the customer over a certain period of time. In measuring progress made in satisfying a performance obligation, construction costs incurred as of the last day of each reporting period are to be calculated based on the ratio of the total estimated construction costs. Furthermore, revenue is recognized on a cost recovery basis when it is not possible to reasonably estimate progress towards satisfaction of performance obligations, but it is probable that the costs incurred will be recovered. The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the beginning of the current fiscal year was added to or deducted from the opening balance of retained earnings of the current fiscal year, and thus the new accounting policy was applied from such opening balance; provided, however, that the new accounting policy was not retrospectively applied to contracts for which nearly all the revenue amounts had been recognized according to the previous treatment in periods prior to the beginning of the current fiscal year, by applying the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition. Furthermore, by applying the method set forth in item (1) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition, modifications to contracts carried out prior to the beginning of the current fiscal year were accounted for based on the contractual terms after all contract modifications were reflected. Consequently, this cumulative effect was added to or deducted from the opening balance of retained earnings of the current fiscal year. As a result of this change, for the current fiscal year, net sales decreased by ¥15,395 million, cost of sales decreased by ¥15,222 million, selling, general and administrative expenses decreased by ¥336 million, while operating profit, ordinary profit and profit before income taxes each increased by ¥163 million. In addition, the opening balance of retained earnings increased by ¥601 million. Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations, "notes and accounts receivable - trade" under current assets of the consolidated balance sheet as of the end of the previous fiscal year has been included in "notes and accounts receivable - trade, and contract assets" under current assets from the consolidated balance sheet as of the end of the current fiscal year.
Application of accounting standard for fair value measurement, etc.
The Company has applied the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the current fiscal year, and it has applied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph 44-2 of the "Accounting Standard for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019). The adoption of this accounting standard has no impact on the consolidated financial statements.
Change in presentation method
Consolidated statements of income
"Foreign exchange losses," which was included in "other" under "non-operating expenses" in the previous fiscal year, is presented as a separate line item in the current fiscal year due to its increased importance in terms of amount. In order to reflect this change in presentation, the consolidated financial statements for the previous fiscal year have been reclassified. As a result, "other" of ¥127 million, which was included in "non-operating expenses" in the consolidated statements of income for the previous fiscal year, has been reclassified as "foreign exchange losses" of ¥6 million and "other" of ¥121 million.
Additional information
Impact of the spread of COVID-19 There has been no material change in the assumptions regarding the impact of the spread of COVID-19 described in Impairment loss on non-current assets in Significant accounting estimates in the annual securities report for the previous fiscal year. Application of tax effect accounting for transition from consolidated taxation system to group tax sharing system As for items regarding the transition to the group tax sharing system introduced in the "Act Partially Amending the Income Tax Act" (Act No. 8 of 2020) and items revised on non-consolidated taxation system in connection with the transition to the group tax sharing system, the Company and some consolidated subsidiaries have not applied the provisions of paragraph 44 of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, February 16, 2018) as allowed by the provisions of paragraph 3 of the "Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System" (ASBJ PITF No. 39, March 31, 2020). Accordingly, amounts of deferred tax assets and deferred tax liabilities are determined in accordance with the provisions of the tax law before revision.
Segment information, etc.
Segment information 1. Description of reportable segments The reportable segments of the Group are components of the Group for which discrete financial information is available and regularly reviewed by the Board of Directors to make decisions about allocation of managerial resources and to assess their performance. The Group is mainly engaged in the Energy & Solutions business, the Engineering & Maintenance business, the Housing business, the Car Life Support business, the Animal Health Care business and the Properties business, and its major consolidated subsidiaries in each segment formulate a comprehensive strategy and conduct business activities. In addition, the Company provides instruction and support on the formulation of comprehensive strategies of consolidated subsidiaries. Therefore, the reportable segments of the Group consist of segments by business based on each of consolidated subsidiaries, and are six segments: "Energy & Solutions business," "Engineering & Maintenance business," "Housing business," "Car Life Support business," "Animal Health Care business," and "Properties business." Products and services by reportable segment are as follows.
2. Explanation of measurements of sales, profit (loss), asset, and other items for each reportable segment The method of accounting for reported operating segments is the same as principles and procedures for accounting treatment used to prepare the consolidated financial statements. Profit of reportable segments is the figure based on operating profit. Intersegment revenue or transfers are based on actual market price. As stated under "Changes in accounting policies," the Company has applied the Accounting Standard for Revenue Recognition and relevant ASBJ regulations from the beginning of the current fiscal year, and accordingly changed its method for calculating net sales, profit and loss for operating segments given that it has changed accounting methods for revenue recognition. For the current fiscal year, as a result of this change, and compared with the figures obtained by the previous method, net sales decreased by ¥8,295 million and segment profit increased by ¥37 million for the "Energy & Solutions business." Net sales decreased by ¥213 million and segment profit increased by ¥167 million for the "Engineering & Maintenance business." Net sales and segment profit decreased by ¥421 million and ¥40 million, respectively, for the "Housing business." Net sales decreased by ¥363 million for the "Car Life Support business," but there is no effect on segment profit. Net sales decreased by ¥4,789 million for the "Animal Health Care business," but there is no effect on segment profit. Net sales decreased by ¥4 million for the "Properties business," but there is no effect on segment profit. Net sales decreased by ¥1,307 million for "Other," but there is no effect on segment profit. 3. Disclosure of sales, profit (loss), asset, and other items for each reportable segment and disaggregation of revenue For the fiscal year ended November 30, 2021
manufacturing auto parts, installment sale and lease. 2. Adjustment is as follows. (1) Adjustment to segment profit (loss) of ¥(416) million includes intersegment eliminations of ¥1,093 million and corporate expenses of ¥(1,509) million. Corporate expenses are mainly general and administrative expenses, which are not attributable to the reportable segments. (2) Adjustment to segment assets of ¥505 million includes intersegment eliminations of ¥(11,288) million and corporate assets of ¥11,793 million. (3) Adjustment to depreciation of ¥(128) million includes intersegment eliminations of ¥(150) million and corporate expenses of ¥22 million. (4) Adjustment to increase in property, plant and equipment and intangible assets of ¥508 million includes intersegment eliminations of ¥(223) million and corporate assets of ¥732 million. 3. Segment profit (loss) was adjusted with operating profit in the consolidated statement of income.
manufacturing auto parts, installment sale and lease. 2. Adjustment is as follows. (1) Adjustment to segment profit (loss) of ¥(461) million includes intersegment eliminations of ¥1,176 million and corporate expenses of ¥(1,637) million. Corporate expenses are mainly general and administrative expenses, which are not attributable to the reportable segments. (2) Adjustment to segment assets of ¥(621) million includes intersegment eliminations of ¥(12,023) million and corporate assets of ¥11,401 million. (3) Adjustment to depreciation of ¥40 million includes intersegment eliminations of ¥(52) million and corporate expenses of ¥92 million. (4) Adjustment to increase in property, plant and equipment and intangible assets of ¥415 million includes intersegment eliminations of ¥(201) million and corporate assets of ¥616 million. 3. Segment profit (loss) was adjusted with operating profit in the consolidated statement of income. 4. “Other revenue” includes revenue on lease, etc. Information associated with reportable segments For the fiscal year ended November 30, 2021 1. Information for each product or service This information is omitted because the classification of products and services is the same as the classification of reportable segments.
2. Information for each region
(1) Net sales Not applicable, because there are no revenues from external customers outside Japan. (2) Property, plant and equipment Not applicable, because there are no property, plant and equipment located outside Japan.
3. Information for each of main customers
This information has been omitted because there were no customers that accounted for 10% or more of total net sales recorded on the consolidated statement of income. For the fiscal year ended November 30, 2022 1. Information for each product or service The information is omitted because the same information is disclosed in Segment information. 2. Information for each region (1) Net sales Not applicable, because there are no revenues from external customers outside Japan. (2) Property, plant and equipment. Not applicable, because there are no property, plant and equipment located outside Japan.
3. Information for each of main customers
This information has been omitted because there were no customers that accounted for 10% or more of total net sales recorded on the consolidated statement of income. Disclosure of impairment losses on non-current assets for each reportable segment For the fiscal year ended November 30, 2021
The amount of "other" is the amount related to the auto parts manufacturing business. (Note) For the fiscal year ended November 30, 2022
Amortization and unamortized balance of goodwill for each reportable segment For the fiscal year ended November 30, 2021
The amount of "other" is the amount related to the insurance agency business. (Note)
For the fiscal year ended November 30, 2022

Information about gain on bargain purchase for each reportable segment For the fiscal year ended November 30, 2021 Not applicable. For the fiscal year ended November 30, 2022 Not applicable.
(Notes) 1. Diluted earnings per share is not presented since no potential shares exist. 2. The Company has introduced the Employee Shareholding Incentive Plan and the share-based remuneration plan for Directors, and shares of the Company held by the SALA Corporation Board Benefit Trust are included in treasury shares deducted from the total number of issued shares at period-end in calculating "net assets per share" (Board Benefit Trust: 2,350 thousand shares in the previous fiscal year, and 2,227 thousand shares in the current fiscal year). Furthermore, in calculating "basic earnings per share," such shares are included in treasury shares deducted in the calculation of the average number of shares outstanding during the period (trust exclusive to the Employees' Shareholding Association: 345 thousand shares in the previous fiscal year, and 1 thousand shares in the current fiscal year, Board Benefit Trust: 2,380 thousand shares in the previous fiscal year, and 2,271 thousand shares in the current fiscal year).
Significant events after reporting period Not applicable.