H2O Retailing : Supplementary information to Financial Results for the First Quarter of the Fiscal Year Ending March 31,2023

H2O Retailing Corporation Supplementary information to Financial Results

for the First Quarter of the Fiscal Year

Ending March 31, 2023

August 4, 2022

I. Consolidated Financial Results

1. Consolidated statements of income Overview of financial results
   Selling, general and administrative expenses Non-operating Income and Expenses Extraordinary Income and Losses
2. Consolidated Balance Sheet
3. Capital Investment II. Non-consolidatedresults

1. Hankyu Hanshin Department Stores, Inc.
2. Izumiya Co., Ltd.
3. Hankyu Oasis Co., Ltd.
4. Kansai Super Market Ltd.

H2O Retailing Corporation(8242)

Supplementary information to Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

I. Consolidated Financial Results

1. Consolidated statements of income < Overview of financial results >

					（millions of yen）
	Jun. 30,	Jun. 30,		Jun. 30,
	2020	2021		2022
	Amount	Amount	Amount	YoY	Inc./Dec.
Department Store	48,408	66,697	108,678	62.9%	41,980
Supermarket	73,148	73,346	101,308	38.1%	27,962
Shopping Center	17,073	13,025	9,120	(30.0)%	(3,904)
Other	7,274	8,110	8,812	8.7%	702
Gross Sales	145,904	161,179	227,919	41.4%	66,740
Net Sales	145,904	114,285	149,352	30.7%	35,067
Department Store	(2,945)	(1,846)	1,224	-	3,070
Supermarket	1,482	1,335	426	(68.1)%	(909)
Shopping Center	(107)	23	596	-	572
Other	526	(1,090)	(769)	-	320
consolidation adjustment	(2,250)	(466)	(812)	-	(346)
Operating Profit	(3,293)	(2,044)	664	-	2,708
Ordinary Profit	(2,996)	(949)	1,867	-	2,817
Extraordinary income	-	15,541	49	(99.7)%	(15,492)
Extraordinary losses	5,246	4,218	740	(82.4)%	(3,477)
Profit	(6,111)	6,277	651	(89.6)%	(5,626)

• The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.
• Supermarket business includes the results of three companies, Kansai Food Market Ltd., Kansai Super Market Ltd. and Kansai Super Premium Co., Ltd. The above three companies were not included in the first quarter results of FY2021 and FY2022.

< Selling, general and administrative expenses >

（millions of yen）

	Jun. 30,	Jun. 30,		Jun. 30,
	2020	2021		2022
	Amount	Amount	Amount	YoY	Inc./Dec.
Personnel expenses	18,396	19,275	23,646	22.7%	4,371
Rent expenses	7,064	8,468	11,791	39.2%	3,323
Advertising expenses	706	1,254	1,964	56.7%	710
Depreciation	3,658	3,536	4,368	23.5%	831
Business consignment expenses	4,605	4,389	5,295	20.7%	906
Sales commission	2,309	1,111	2,080	87.2%	969
Transportation costs	3,474	3,372	3,100	(8.1)%	(271)
Others	6,804	7,037	8,632	22.7%	1,594
Total	47,020	48,445	60,880	25.7%	12,435

* The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.

1

H2O Retailing Corporation(8242)

Supplementary information to Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

< Non-operating Income and Expenses >

（millions of yen）

	Jun. 30,		Jun. 30,		Jun. 30,
	2020		2021		2022
	Amount		Amount	Amount	YoY	Inc./Dec.
Non-operating income	1,629		1,827	1,904	4.2%	77
Interest income	89		118	140	17.7%	21
Dividend income	852		593	627	5.6%	33
Gain on adjustment of accounts payable	516		261	206	(21.0)%	(54)
Foreign exchange gains		-	679	739	8.8%	59
Other	170		174	191	10.1%	17
Non-operating expenses	1,332		733	701	(4.3)%	(31)
Interest expenses	195		236	245	3.7%	8
Loss on provision for redemption of gift certificates	433		210	162	(22.5)%	(47)
Share of loss of entities accounted for using equity method	363		156	114	(27.1)%	(42)
Other	340		129	178	37.9%	49

• The Company has applied "Accounting Standard for Revenue Recognition" from the beginning of 1Q, FY2022.
  < Extraordinary Income and Losses >

（millions of yen）

	Jun. 30,		Jun. 30,	Jun. 30,	Main contents
	2020		2021	2022
	Amount		Amount	Amount
Extraordinary income		-	15,541	49
Subsidy income				49	Compensation payment for store closing
Extraordinary losses	5,246		4,218	740
Loss on retirement of noncurrent assets				482	Hankyu Hanshin Department Stores
Loss related to COVID-19				146	Hankyu Hanshin Department Stores
Expenses for opening new stores				107	Hanshin Umeda Main Store
Loss on store closing				4	Heart Dining

2

H2O Retailing Corporation(8242)

Supplementary information to Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

2. Consolidated Balance Sheet

			(millions of yen)
	Jun. 30,	Mar. 31,	Jun. 30,
	2021	2022	2022
	Amount	Amount	Amount
Cash and deposits	47,418	34,724	33,166
Notes and accounts receivable-trade	50,408	59,906	63,517
Inventory	24,192	22,639	22,930
Total current assets	132,786	129,725	130,534
Property, plant and equipment	257,989	301,245	308,299
Intangible assets	16,170	16,443	16,511
Investments and other assets	201,203	207,143	211,478
Total non-current assets	475,363	524,832	536,290
Total assets	608,150	654,558	666,825
			(millions of yen)
	Jun. 30,	Mar. 31,	Jun. 30,
	2021	2022	2022
	Amount	Amount	Amount
Notes and accounts payable-trade	42,700	56,839	53,360
Loans payable and bonds	188,323	175,382	186,065
Total liabilities	377,408	393,620	402,146
Shareholders' equity	198,095	202,030	201,028
Total net assets	230,741	260,938	264,678
Total liabilities and net assets	608,150	654,558	666,825
3. Capital Investment
					(millions of yen)
	Jun. 30,		Main contents
	2022
	Amount
Department Store	2,797	Hankyu Umeda Main Store
Rebuilding of Hanshin Umeda Main Store
Supermarket	1,408	New stores opening of Hankyu Oasis
Renovation of Izumiya stores
Shopping Center	137
Other	7,847	Purchase of land and buildings of H2O Retailing Corporation
consolidation adjustment	(45)
Total	12,146

3

H2O Retailing Corporation(8242)

Supplementary information to Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2023

Ⅱ. Non-consolidated results

1. Hankyu Hanshin Department Stores,Inc. < Overview of financial results >

			（millions of yen）
	Amount	YoY	Inc./Dec.
Gross Sales	108,047	63.3%	41,870
Gross Profit	24,416	63.2%	9,456
Gross profit/ Gross Sales	22.60%	-	(0.01)pt
Other operating revenue	788	15.1%	103
SG & A	23,998	37.4%	6,532
SG & A/ Gross Sales	22.21%	-	(4.18)pt
Operating profit	1,206	-	3,027
Operating profit/ Gross Sales	1.12%	-	-

* Non-consolidated results shown above are reclassified on the basis before the application of	"Accounting Standards for Revenue Recognition".
		（millions of yen, thousands of people）
	Sales	YoY	Number of	YoY
	customers
Hankyu Main Store *1	57,238	84.4%		7,901	86.6%
Hanshin Umeda Main Store *2	12,612	178.2%		7,204	189.7%
Senri Hankyu	3,148	24.0%		987	15.1%
Takatsuki Hankyu	5,100	41.7%		1,983	26.4%
Kawanishi Hankyu	2,889	16.7%		1,179	19.6%
Takarazuka Hankyu *3	1,726	13.1%		-	-
Nishinomiya Hankyu	5,546	31.8%		2,798	40.2%
Sanda Hankyu *3*4	0	(100.0)%		-	-
Kobe Hankyu	6,943	20.9%		3,286	50.0%
Hakata Hankyu	10,862	29.2%		5,110	32.3%
Hankyu Men's Tokyo	2,586	55.9%		461	114.8%
Oi Hankyu Food Hall	1,013	(2.5)%		1,170	7.2%
Tsuzuki Hankyu	714	(2.9)%		522	(2.8)%
Amagasaki Hanshin *3	653	5.8%		-	-
Hanshin Nishinomiya	953	1.3%		915	6.4%
Hanshin Mikage	115	16.0%		1,132	6.7%
Total of branch stores	42,255	25.1%		19,548	28.4%
Total stores *5	112,107	61.6%		34,654	57.9%
*1 including Hankyu Men's Osaka

*2 Hanshin Umeda Main Store: Rebuilt and reopened on April 6, 2022 *3 not counting the number of customers

*4 Sanda Hankyu: Closed on August 1, 2021

*5 including sales in tenants etc. (4,059 millions of yen)

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