Shochiku : Summary of Consolidated Financial Results for the Year Ended February 29, 2024（173KB）

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 29, 2024

(Based on Japanese GAAP)

																	April 15, 2024
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 of ordinary general meeting of shareholders:	May 28, 2024
Scheduled date to file Securities Report:		May 29, 2024
Scheduled date to commence dividend payments:		May 29, 2024
Preparation of supplementary material on financial results:		No
Holding of financial results meeting:						No
										(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 29, 2024 (from March 1, 2023 to February 29, 2024)
(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 February 29, 2024		85,428		9.2	3,584	-		2,866	110.8	3,016		(45.0)
Year ended February 28, 2023		78,212		8.9	(776)	-		1,359	-	5,484		-
			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 February 29, 2024		219.56			-			3.3					1.5				4.2
Year ended February 28, 2023		399.30			-			6.6					0.7				(1.0)
(2) Consolidated financial position
			Total assets		Net assets	Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%					Yen
As of February 29, 2024		211,140				94,466					44.7			6,868.61
As of February 28, 2023		178,803				86,482					48.3			6,289.19
(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 February 29, 2024		8,134				(15,236)					11,781					20,692
Year ended February 28, 2023		6,061				9,706					(13,507)					16,013
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 February 28, 2023		-		0.00	-		30.00	30.00		414	7.5			0.5
Year ended February 29, 2024		-		0.00	-		30.00	30.00		414	13.7			0.5
Year ending February 28, 2025		-			0.00	-			30.00	30.00			29.4
(Forecast)

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3. Forecast of consolidated financial results for the year ending February 28, 2025 (from March 1, 2024 to February 28, 2025)

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	92,900	8.7	2,300	(35.8)	2,000	(30.2)		1,400	(53.6)	101.90
4. Notes
(1) Changes in significant subsidiaries during the year ended February 29, 2024			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:					No
Changes in accounting estimates:							Yes
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 February 29, 2024	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 February 29, 2024	198,877	shares	As of February 28, 2023	201,406	shares
Average number of shares during the period
	Year ended February 29, 2024	13,738,499	shares	Year ended February 28, 2023	13,735,604	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of February 28, 2023	As of February 29, 2024
Assets
Current assets
Cash and deposits	16,113	20,195
Notes and accounts receivable - trade and contract assets	7,469	10,714
Merchandise and finished goods	1,701	1,783
Work in process	3,953	4,155
Raw materials and supplies	117	117
Advance payments to suppliers	484	509
Prepaid expenses	1,071	1,083
Advances paid	582	373
Consumption taxes refund receivable	-	89
Other	281	3,125
Allowance for doubtful accounts	(2)	(4)
Total current assets	31,772	42,142
Non-current assets
Property, plant and equipment
Buildings and structures, net	39,836	39,353
Facilities,net	9,712	11,919
Machinery, equipment and vehicles, net	1,222	1,145
Tools, furniture and fixtures, net	783	852
Land	39,688	52,011
Leased assets, net	1,729	1,787
Construction in progress	15	877
Other, net	48	54
Total property, plant and equipment	93,036	108,001
Intangible assets
Leasehold interests in land	1,451	1,451
Trademark right	3	1
Software	408	459
Other	50	41
Total intangible assets	1,914	1,954
Investments and other assets
Investment securities	33,467	40,852
Long-term loans receivable	956	924
Long-term prepaid expenses	11,953	11,807
Deferred tax assets	444	183
Retirement benefit asset	159	185
Guarantee deposits	4,806	4,801
Other	378	380
Allowance for doubtful accounts	(86)	(93)
Total investments and other assets	52,079	59,042
Total non-current assets	147,030	168,998
Total assets	178,803	211,140

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		(Millions of yen)
	As of February 28, 2023	As of February 29, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	6,116	8,501
Short-term borrowings	4,871	4,871
Current portion of long-term borrowings	17,404	18,971
Lease liabilities	697	607
Accounts payable - other	2,010	2,858
Accrued expenses	1,244	1,111
Accrued business office tax	114	115
Income taxes payable	865	1,146
Accrued consumption taxes	947	925
Provision for bonuses	527	553
Other	2,763	3,853
Total current liabilities	37,561	43,516
Non-current liabilities
Long-term borrowings	33,887	45,335
Lease liabilities	1,422	1,483
Deferred tax liabilities	6,734	9,561
Provision for retirement benefits for directors (and other	212	239
officers)
Retirement benefit liability	1,767	1,854
Asset retirement obligations	1,512	5,229
Guarantee deposits received	8,054	8,400
Other	1,168	1,052
Total non-current liabilities	54,759	73,158
Total liabilities	92,320	116,674
Net assets
Shareholders' equity
Share capital	33,018	33,018
Capital surplus	30,157	30,187
Retained earnings	13,576	16,178
Treasury shares	(1,464)	(1,447)
Total shareholders' equity	75,288	77,938
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	11,426	16,739
Foreign currency translation adjustment	(63)	(63)
Remeasurements of defined benefit plans	(259)	(246)
Total accumulated other comprehensive income	11,102	16,429
Non-controlling interests	91	98
Total net assets	86,482	94,466
Total liabilities and net assets	178,803	211,140

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

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	February 28, 2023	February 29, 2024
Net sales	78,212	85,428
Cost of sales	46,295	49,450
Gross profit	31,917	35,977
Selling, general and administrative expenses
Advertising expenses	3,876	2,617
Personnel expenses	10,432	10,921
Business office tax	113	115
Provision of allowance for doubtful accounts	21	28
Provision for bonuses	444	459
Retirement benefit expenses	466	584
Provision for retirement benefits for directors (and other	42	26
officers)
Rent expenses on land and buildings	4,996	4,905
Depreciation	2,312	1,959
Other	9,987	10,775
Total selling, general and administrative expenses	32,693	32,393
Operating profit (loss)	(776)	3,584
Non-operating income
Interest income	11	20
Dividend income	679	767
Subsidies for employment adjustment	79	5
Cooperation money income	238	-
Subsidy income	2,615	110
Business compensation income	-	373
Miscellaneous income	309	177
Total non-operating income	3,934	1,455
Non-operating expenses
Interest expenses	536	590
borrowing fee	143	168
Share of loss of entities accounted for using equity method	937	1,237
Miscellaneous expenses	181	176
Total non-operating expenses	1,798	2,173
Ordinary profit	1,359	2,866
Extraordinary income
Gain on reversal of asset retirement obligations	15	-
Gain on sale of non-current assets	6,996	-
Gain on change in equity	321	401
Gain on sale of investment securities	-	2,956
Compensation income	-	540
Gain on sale of businesses	-	200
Gain on liquidation of subsidiaries	-	12
Total extraordinary income	7,333	4,110

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			(Millions of yen)
	Fiscal year ended		Fiscal year ended
	February 28, 2023		February 29, 2024
Extraordinary losses
Loss on retirement of non-current assets	22	42
Loss on disaster	52	655
Loss on cancellation of performances	205	-
Impairment losses	852	886
Loss on disposal of inventories	288	-
Litigation settlement	-	192
Penalty cost	-	37
Loss on valuation of shares of subsidiaries and associates	-	2
Total extraordinary losses	1,421	1,818
Profit before income taxes	7,271	5,158
Income taxes - current	753	1,273
Income taxes - deferred	1,356	846
Total income taxes	2,110	2,119
Profit	5,161	3,038
Profit (loss) attributable to non-controlling interests	(323)	22
Profit attributable to owners of parent	5,484	3,016

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Consolidated statements of comprehensive income

Profit

Other comprehensive income

Valuation difference on available-for-sale securities Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income Comprehensive income Comprehensive income attributable to

Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests

7

	(Millions of yen)
Fiscal year ended	Fiscal year ended
February 28, 2023	February 29, 2024
5,161	3,038
1,128	5,308
84	13
1	4
1,214	5,326
6,376	8,365
6,699	8,342
(323)	22

Consolidated statements of changes in equity

Fiscal year ended February 28, 2023

							(Millions of yen)
				Shareholders' equity
	Share capital		Capital surplus	Retained earnings		Treasury shares	Total shareholders'
			equity
Balance at beginning of period	33,018		30,136	8,476		(1,485)	70,145
Cumulative effects of
changes in accounting				(370)			(370)
policies
Restated balance	33,018		30,136	8,106		(1,485)	69,775
Changes during period
Profit attributable to owners				5,484			5,484
of parent
Change in scope of				(13)			(13)
consolidation
Purchase of treasury shares						(10)	(10)
Disposal of treasury shares			20			32	52
Change in treasury shares
arising from change in equity						(0)	(0)
in entities accounted for using
equity method
Net changes in items other
than shareholders' equity
Total changes during period	-		20	5,470		21	5,512
Balance at end of period	33,018		30,157	13,576		(1,464)	75,288
		Accumulated other comprehensive income
	Valuation		Foreign currency	Remeasurements		Total accumulated	Non-controlling	Total net assets
	difference on			other
		translation	of defined benefit		interests
	available-for-sale			comprehensive
		adjustment	plans
	securities			income
Balance at beginning of period	10,297		(63)	(344)		9,889	798	80,833
Cumulative effects of
changes in accounting								(370)
policies
Restated balance	10,297		(63)	(344)		9,889	798	80,463
Changes during period
Profit attributable to owners								5,484
of parent
Change in scope of								(13)
consolidation
Purchase of treasury shares								(10)
Disposal of treasury shares								52
Change in treasury shares
arising from change in equity								(0)
in entities accounted for using
equity method
Net changes in items other	1,128			84		1,213	(706)	506
than shareholders' equity
Total changes during period	1,128		-	84		1,213	(706)	6,019
Balance at end of period	11,426		(63)	(259)		11,102	91	86,482

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Fiscal year ended February 29, 2024

							(Millions of yen)
				Shareholders' equity
	Share capital		Capital surplus	Retained earnings		Treasury shares	Total shareholders'
			equity
Balance at beginning of period	33,018		30,157	13,576		(1,464)	75,288
Cumulative effects of
changes in accounting							-
policies
Restated balance	33,018		30,157	13,576		(1,464)	75,288
Changes during period
Dividends of surplus				(414)			(414)
Profit attributable to owners				3,016			3,016
of parent
Purchase of shares of			13				13
consolidated subsidiaries
Purchase of treasury shares						(18)	(18)
Disposal of treasury shares			17			35	52
Change in treasury shares
arising from change in equity						(0)	(0)
in entities accounted for using
equity method
Net changes in items other							-
than shareholders' equity
Total changes during period	-		30	2,601		17	2,650
Balance at end of period	33,018		30,187	16,178		(1,447)	77,938
		Accumulated other comprehensive income
	Valuation		Foreign currency	Remeasurements		Total accumulated	Non-controlling	Total net assets
	difference on			other
		translation	of defined benefit		interests
	available-for-sale			comprehensive
		adjustment	plans
	securities			income
Balance at beginning of period	11,426		(63)	(259)		11,102	91	86,482
Cumulative effects of changes								-
in accounting policies
Restated balance	11,426		(63)	(259)		11,102	91	86,482
Changes during period
Dividends of surplus								(414)
Profit attributable to owners								3,016
of parent
Purchase of shares of								13
consolidated subsidiaries
Purchase of treasury shares								(18)
Disposal of treasury shares								52
Change in treasury shares
arising from change in equity								(0)
in entities accounted for using
equity method
Net changes in items other	5,312		-	13		5,326	7	5,333
than shareholders' equity
Total changes during period	5,312		-	13		5,326	7	7,983
Balance at end of period	16,739		(63)	(246)		16,429	98	94,466

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Consolidated statements of cash flows

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	February 28, 2023	February 29, 2024
Cash flows from operating activities
Profit before income taxes	7,271	5,158
Depreciation	5,147	4,619
Increase (decrease) in provision for bonuses	63	25
Decrease (increase) in retirement benefit asset	112	(90)
Increase (decrease) in retirement benefit liability	91	86
Increase (decrease) in provision for retirement benefits for	(673)	26
directors (and other officers)
Increase (decrease) in allowance for doubtful accounts	(24)	9
Interest and dividend income	(691)	(788)
Interest expenses	536	590
Share of loss (profit) of entities accounted for using equity	937	1,237
method
Loss on retirement of property, plant and equipment	22	42
Loss (gain) on sale of property, plant and equipment	(6,996)	-
Loss on valuation of shares of subsidiaries and associates	-	2
Loss (gain) on sale of investment securities	-	(2,956)
Gain on reversal of asset retirement obligations	(15)	-
Loss (gain) on change in equity	(321)	(401)
Impairment losses	852	886
Loss (gain) on sale of businesses	-	(200)
Penalty costs	-	37
Litigation settlement	-	192
Losses on performance cancelled	205	-
Compensation income	-	(540)
Loss on disaster	52	655
Loss on disposal of inventories	288	-
Loss (gain) on liquidation of subsidiaries	-	(12)
Decrease (increase) in trade receivables and contract assets	1,071	(3,248)
Decrease (increase) in inventories	(458)	(284)
Decrease (increase) in advance payments to suppliers	235	(25)
Increase (decrease) in trade payables	(1,585)	2,384
Decrease (increase) in guarantee deposits	(57)	4
Increase (decrease) in guarantee deposit received	(387)	141
Increase (decrease) in accrued consumption taxes	(164)	32
Decrease (increase) in other current assets	(279)	(211)
Increase (decrease) in other current liabilities	(322)	1,213
Other, net	1,155	215
Subtotal	6,068	8,806
Interest and dividends received	805	901
Interest paid	(572)	(557)
Proceeds from compensation	-	540
Payments associated with disaster loss	(46)	(530)
Payments associated with cancellation of performances	(200)	-
Income taxes refund	300	5
Income taxes paid	(293)	(1,030)
Net cash provided by (used in) operating activities	6,061	8,134

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