Shochiku : Summary of Consolidated Financial Results for the Six Months Ended August 31, 2023（151 KB）

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:	9601	URL https://www.shochiku.co.jp
Representative:	President and CEO	Toshihiro Takahashi
Inquiries:	Senior Executive Officer	Hiroshige Osaki	TEL [phone]
Scheduled date to file Quarterly Securities Report:	October 12, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(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)						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	%
Six months ended August 31, 2023	42,899		11.7		2,350	-	1,665		(34.9)	3,315	(56.1)
Six months ended August 31, 2022	38,419		12.3		(168)	-	2,560		-	7,554	-
	Earnings per share			Diluted earnings per share
				Yen			Yen
Six months ended August 31, 2023			241.36			-
Six months ended August 31, 2022			550.01			-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio		Net assets per share
	Millions of yen			Millions of yen				%		Yen
As of August 31, 2023	190,255				92,477				48.6	6,723.34
As of February 28, 2023	178,803				86,482				48.3	6,289.19

2. Cash dividends
		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end
	Yen	Yen	Yen	Yen
Year ended February 28, 2023	-	0.00	-	30.00
Year ending February 29, 2024	-	0.00
Year ending February 29, 2024 (Forecast)			-	30.00

Total

Yen 30.00

30.00

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

	Net sales		Operating profit		Ordinary profit	Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%	Yen
Full year	87,730	12.2	1,300		-	130	(90.4)	1,870	(65.9)	136.10

1

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):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(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	13,734,767	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of February 28, 2023	As of August 31, 2023
Assets
Current assets
Cash and deposits	16,113	22,868
Notes and accounts receivable - trade and contract assets	7,469	7,745
Merchandise and finished goods	1,701	1,656
Work in process	3,953	4,587
Raw materials and supplies	117	115
Other	2,420	4,296
Allowance for doubtful accounts	(2)	(4)
Total current assets	31,772	41,264
Non-current assets
Property, plant and equipment
Buildings and structures, net	39,836	38,848
Facilities,net	9,712	9,321
Land	39,688	39,688
Other, net	3,799	3,682
Total property, plant and equipment	93,036	91,540
Intangible assets
Other	1,914	1,907
Total intangible assets	1,914	1,907
Investments and other assets
Investment securities	33,467	37,034
Retirement benefit asset	159	241
Other	18,539	18,374
Allowance for doubtful accounts	(86)	(107)
Total investments and other assets	52,079	55,542
Total non-current assets	147,030	148,990
Total assets	178,803	190,255

3

		(Millions of yen)
	As of February 28, 2023	As of August 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	6,116	8,232
Short-term borrowings	4,871	4,971
Current portion of long-term borrowings	17,404	19,754
Income taxes payable	865	1,150
Provision for bonuses	527	421
Other	7,776	8,213
Total current liabilities	37,561	42,743
Non-current liabilities
Long-term borrowings	33,887	32,719
Provision for retirement benefits for directors (and other	212	224
officers)
Retirement benefit liability	1,767	1,831
Asset retirement obligations	1,512	1,526
Other	17,380	18,731
Total non-current liabilities	54,759	55,033
Total liabilities	92,320	97,777
Net assets
Shareholders' equity
Share capital	33,018	33,018
Capital surplus	30,157	30,174
Retained earnings	13,576	16,478
Treasury shares	(1,464)	(1,440)
Total shareholders' equity	75,288	78,231
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	11,426	14,440
Foreign currency translation adjustment	(63)	(63)
Remeasurements of defined benefit plans	(259)	(230)
Total accumulated other comprehensive income	11,102	14,145
Non-controlling interests	91	100
Total net assets	86,482	92,477
Total liabilities and net assets	178,803	190,255

4

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	38,419	42,899
Cost of sales	22,997	24,620
Gross profit	15,422	18,279
Selling, general and administrative expenses	15,590	15,928
Operating profit (loss)	(168)	2,350
Non-operating income
Interest income	5	5
Dividend income	365	356
Subsidies for employment adjustment	53	5
Cooperation money income	186	-
Subsidy income	2,570	72
Other	268	82
Total non-operating income	3,450	522
Non-operating expenses
Interest expenses	287	259
Loan fees	74	133
Share of loss of entities accounted for using equity method	266	743
Other	93	71
Total non-operating expenses	721	1,207
Ordinary profit	2,560	1,665
Extraordinary income
Gain on sale of non-current assets	6,985	-
Gain on change in equity	321	-
Gain on reversal of asset retirement obligations	15	-
Gain on sale of investment securities	-	2,884
Gain on sale of businesses	-	200
Total extraordinary income	7,322	3,084
Extraordinary losses
Loss on retirement of non-current assets	6	8
Loss on disaster	52	226
Loss on cancellation of performances	205	-
Impairment losses	-	46
Penalty cost	-	29
Total extraordinary losses	264	310
Profit before income taxes	9,618	4,438
Income taxes - current	818	933
Income taxes - deferred	1,575	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