Charm Care : Summary of Consolidated Financial Results for the Year Ended June 30, 2022

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 June 30, 2022

(Based on Japanese GAAP)

																				August 8, 2022
Company name:	CHARM CARE CORPORATION
Stock exchange listing:	Tokyo
Stock code:	6062	URL https://www.charmcc.jp/
Representative:	Chairman and President		Takahiko Shimomura
Inquiries:	Director Managing Executive Officer	Yukihiro Satomi	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	September 28, 2022
Scheduled date to file Securities Report:		September 29, 2022
Scheduled date to commence dividend payments:		September 29, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)
(1) Consolidated operating results														Percentages indicate year-on-year changes
			Net sales		Operating profit		Ordinary profit	Profit attributable to
					owners of parent
			Millions of yen		%	Millions of yen		%			Millions of yen	%	Millions of yen		%
Year ended June 30, 2022		29,071		-	2,309		-			2,501	-	2,951		-
Year ended June 30, 2021		22,984		-	2,015		-			2,319	-	1,535		-
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen						%					%				%
Year ended June 30, 2022		90.50		90.33						25.1					7.6				7.9
Year ended June 30, 2021		47.09		47.01						13.9					8.1				8.8
(2) Consolidated financial position
			Total assets		Net assets				Equity ratio	Net assets per share
			Millions of yen	Millions of yen						%					Yen
As of June 30, 2022			37,355					12,458							33.2					380.44
As of June 30, 2021			28,597					11,125							38.7					339.66
(3) Consolidated cash flows
			Cash flows from	Cash flows from		Cash flows from	Cash and cash equivalents
			operating activities	investing activities		financing activities		at end of period
			Millions of yen	Millions of yen		Millions of yen		Millions of yen
Year ended June 30, 2022		3,945					(2,857)							(87)					6,941
Year ended June 30, 2021		2,558					(3,704)							1,472					5,940
2. Cash dividends
						Annual dividends per share							Total cash	Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end			Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen		Yen	Millions of yen	%			%
Year ended June 30, 2021		-		0.00	-				12.00			12.00		391	25.5			3.5
Year ended June 30, 2022		-		0.00	-				17.00			17.00		554	18.8			4.5
Year ending June 30, 2023		-			0.00	-				22.00			22.00			19.1
(Forecast)

1

3. Forecast of consolidated financial results for the year ending June 30, 2023 (from July 1, 2022 to June 30, 2023)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per share

owners of parent

Six months ending

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

15,130

20.9

1,000

12.5

1,040

18.1

665

20.1

20.89

December 31, 2022

Full year

40,460

39.2

4,330

87.5

4,380

74.7

3,760

27.4

115.29

4. Notes

(1) Changes in significant subsidiaries during the year ended June 30, 2022

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

(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:

Yes

Changes in accounting estimates:

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 June 30, 2022

32,712,000

shares

As of June 30, 2021

32,712,000

shares

Number of treasury shares at the end of the period

As of June 30, 2022

95,328 shares

As of June 30, 2021

103,528

shares

Average number of shares during the period

Year ended June 30, 2022

32,613,998 shares

Year ended June 30, 2021

32,608,484 shares

2

Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of June 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	5,940,654	6,941,483
Accounts receivable - trade	2,242,531	2,596,946
Real estate for sale	-	580,291
Real estate for development	1,111,272	1,897,227
Money held in trust	-	4,443,972
Other	500,551	619,062
Allowance for doubtful accounts	(2,086)	(3,105)
Total current assets	9,792,923	17,075,878
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,837,879	7,585,225
Land	2,665,758	1,822,477
Leased assets, net	233,092	206,297
Construction in progress	956,587	254,529
Other, net	316,086	559,338
Total property, plant and equipment	9,009,403	10,427,869
Intangible assets
Goodwill	456,880	3,017,461
Other	91,373	66,163
Total intangible assets	548,253	3,083,624
Investments and other assets
Investment securities	-	300,000
Guarantee deposits	4,317,407	4,770,246
Money held in trust	4,097,341	-
Deferred tax assets	384,171	1,120,329
Other	448,104	577,497
Total investments and other assets	9,247,025	6,768,073
Total non-current assets	18,804,682	20,279,567
Total assets		28,597,605	37,355,446

3

			(Thousands of yen)
		As of June 30, 2021	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	221,983	264,245
Short-term borrowings	2,543,000	2,140,000
Current portion of long-term borrowings	862,878	1,177,874
Lease liabilities	100,494	89,561
Income taxes payable	612,402	1,510,536
Accounts payable - other	1,336,924	1,642,269
Unearned revenue	1,720,396	-
Contract liabilities	-	8,870,620
Provision for bonuses	104,638	124,575
Other	328,913	457,852
Total current liabilities	7,831,631	16,277,534
Non-current liabilities
Long-term borrowings	4,651,806	7,336,504
Lease liabilities	153,455	136,591
Retirement benefit liability	518,576	585,065
Long-term unearned revenue	3,922,038	-
Asset retirement obligations	181,333	224,908
Deferred tax liabilities	-	133,463
Other	212,883	202,516
Total non-current liabilities	9,640,095	8,619,049
Total liabilities	17,471,726	24,896,584
Net assets
Shareholders' equity
Share capital	2,759,250	2,759,250
Capital surplus	2,748,250	2,755,111
Retained earnings	5,697,974	6,994,717
Treasury shares	(82,954)	(76,383)
Total shareholders' equity	11,122,519	12,432,694
Accumulated other comprehensive income
Deferred gains or losses on hedges	(11,130)	(4,893)
Remeasurements of defined benefit plans	(35,587)	(19,015)
Total accumulated other comprehensive income	(46,717)	(23,909)
Share acquisition rights	50,076	50,076
Total net assets	11,125,878	12,458,862
Total liabilities and net assets		28,597,605	37,355,446

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2021	June 30, 2022
Net sales	22,984,089	29,071,832
Cost of sales	19,035,454	24,422,285
Gross profit	3,948,634	4,649,547
Selling, general and administrative expenses	1,933,474	2,340,280
Operating profit	2,015,160	2,309,266
Non-operating income
Interest income	3,282	3,952
Subsidy income	329,353	233,419
Other	23,533	37,739
Total non-operating income	356,169	275,111
Non-operating expenses
Interest expenses	47,262	67,608
Other	5,030	15,620
Total non-operating expenses	52,292	83,229
Ordinary profit	2,319,036	2,501,149
Extraordinary income
Gain on sale of non-current assets	-	2,033,565
Subsidy income	-	86,007
Total extraordinary income	-	2,119,572
Extraordinary losses
Loss on retirement of non-current assets	1,690	-
Loss on tax purpose reduction entry of non-current assets	-	84,643
Loss on sale of non-current assets	24,006	-
Total extraordinary losses	25,697	84,643
Profit before income taxes	2,293,339	4,536,078
Income taxes - current	864,619	1,886,781
Income taxes - deferred	(106,869)	(302,319)
Total income taxes	757,749	1,584,462
Profit	1,535,589	2,951,616
Profit attributable to owners of parent		1,535,589	2,951,616

5