Takashimaya : Summary of Consolidated Financial Results for the Nine Months Ended November 30, 2023

Translation

Notice: This document is a 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 Nine Months Ended November 30, 2023 (Based on Japanese GAAP)

		December 25, 2023
Company name:	Takashimaya Company, Limited
Stock exchange listing:	Tokyo
Stock code:	8233	URL https://www.takashimaya.co.jp
Representative:	President	Yoshio Murata

Inquiries:

General Manager, Public and Investor

Shuichiro Kurosu

TEL [phone]

Relations Office

Scheduled date to file Quarterly Securities Report:

January 12, 2024

Scheduled date to commence dividend payments:

－

Preparation of supplementary material on quarterly financial results:

No

Holding of quarterly financial results meeting:

Yes

(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the nine months ended November 30, 2023 (from March 1, 2023 to November 30, 2023)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Operating revenue

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Nine months ended November 30, 2023

334,192

5.2

33,209

45.3

35,829

46.4

24,251

5.9

Nine months ended November 30, 2022

317,752

-

22,856

-

24,471

-

22,910

-

Notes: 1. Comprehensive income

For the nine months ended November 30, 2023

35,054 million yen

[(5.4)%]

For the nine months ended November 30, 2022

37,046 million yen

[ -%]

2. Because we have applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the previous fiscal year, the percentage of year-on-year change of each figure for the nine months ended November 30, 2022, is not shown.

			Earnings per share		Diluted earnings per share
				Yen				Yen
Nine months ended November 30, 2023		153.75			130.80
Nine months ended November 30, 2022		138.15			118.40
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio
			Millions of yen			Millions of yen		%
As of November 30, 2023		1,246,494			465,981		35.4
As of February 28, 2023		1,178,201			436,482		35.1
Reference: Equity	As of November 30, 2023	441,265 million yen
	As of February 28, 2023	413,326 million yen
2 .Cash dividends
						Annual dividends per share
		1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
			Yen			Yen	Yen		Yen	Yen
Year ended February 28, 2023		-		12.00	-	14.00	26.00
Year ending February 29, 2024		-		17.00	-
Year ending February 29, 2024 (Forecast)							17.00	34.00

Note: Revisions to the forecast of cash dividends most recently announced: No

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

	Operating revenue	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	467,000	5.3	45,000	38.4	47,000	36.1	30,000		7.8	190.19

Note: Revisions to the earnings forecasts most recently announced: Yes

4.Notes

1. Changes in significant subsidiaries during the nine months ended November 30, 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:	No
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 November 30, 2023	177,759,481 shares	As of February 28, 2023	177,759,481 shares
Number of treasury shares at the end of the period
	As of November 30, 2023	20,028,219 shares	As of February 28, 2023	20,027,587 shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended November 30, 2023	157,731,629 shares	Nine months ended November 30, 2022	165,832,271shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

(Caution concerning forward-looking statements and others)

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. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors. Please refer to "1. Qualitative Information about Consolidated Operating Results, (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements" on page 6 of the attached materials for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

○ Table of Contents of the Attachment
1. Qualitative Information about Consolidated Operating Results	2
(1) Explanation of Operating Results	2
(2) Explanation of Financial Position	5
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements	6
2. Quarterly Consolidated Financial Statements and Major Notes	7
(1) Quarterly Consolidated Balance Sheets	7
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income	9
Quarterly Consolidated Statements of Income	9
Quarterly Consolidated Statements of Comprehensive Income	10
(3) Quarterly Consolidated Statements of Cash Flows	11
(4) Notes to Quarterly Consolidated Financial Statements	13
(Notes on Premise of Going Concern)	13
(Notes on Substantial Changes in the Amount of Shareholders' Equity)	13
(Changes in Significant Subsidiaries During the Nine months Ended November 30, 2023)	13
(Additional Information)	13
(Segment Information)	14
(Significant Subsequent Events)	15
3. Supplemental Information	16
(1) Overview of Non-consolidated Financial Results	16
(2) Overview of Major Subsidiaries	18

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1. Qualitative Information about Consolidated Operating Results

(1) Explanation of Operating Results

During the first nine months under review (March 1, 2023 to November 30, 2023), the Japanese economy further moved towards normalization as the impact of COVID-19 subsided and in May the government downgraded COVID-19 to a Class 5 infectious disease. Despite facing the effects of the rising cost of living, the economy continued to see a positive trend in consumer spending. The Japanese economy was also boosted by growth in inbound demand driven by the ongoing gradual recovery in the number of inbound tourists thanks to increased flights and yen depreciation.

At the same time, consumer sentiment towards thrift is increasing due to negative real wage growth as wage hikes have not kept pace with the rising cost of living. Overall, there is a lack of certainty regarding consumer spending.

Amid this environment, we (Takashimaya Group) are positioning FY2023 as an extremely important year for creating the management platform necessary to transition from a recovery phase to achieving new sustainable growth and taking our next leap forward.

To create this platform, we will apply our Group-wideMachi-dukuri Strategy towards increasing the brand value of the Takashimaya Group by promoting our management goals: 1) Making the department stores more profitable, 2) Promoting human capital management, 3) Group companies building a competitive advantage, and 4) Taking ESG strategy further.

In the Department Store segment, the Group expanded the cost-optimization program undertaken since last year to all stores and has achieved a certain level of success towards the formation of a structure for profit generation. The Group is fostering the development of human resources with curation capabilities as we adapt to post-COVID-19 consumer trends and strengthen merchandise selections to offer both the captivating appeal and quality that responds to customer needs. We are simultaneously advancing initiatives aimed at making the department stores more profitable, including highly innovative events and promotional campaigns that we were unable to do during COVID-19. Takashimaya Group will also use digital tools to streamline operations and generate time for staff that can be applied towards sales while also improving the ability of sales staff to communicate and convey product stories. We will make qualitative improvements in our sales capabilities as we engage in people-oriented business to make department stores more profitable.

In the Commercial Property Development segment, the Takashimaya Group is partnering with the local government on revitalization efforts in the Nagareyama-Otakanomori area of Chiba Prefecture. Also, as a new business endeavor, we were selected via a public proposal (*1) to participate in a Public Private Partnership (PPP *2) project. Representing the Takashimaya Group's first participation in a PPP, construction will take place on land adjacent to Rokucho Station in Adachi Ward, Tokyo. On October 17, the Group successfully opened the Kyoto Takashimaya Shopping Center. The Takashimaya Group engages in a wide range of attractive operations, including department stores, specialty stores, finance, and dining, and operating commercial facilities that flexibly combine these various products and services is our unique business model. Since opening, Kyoto Takashimaya S.C. has welcomed many domestic and inbound customers, and has seen an increase in people in their 30s and younger, who represent the next generation of customers, as well as customers from other regions. This is working to create a positive synergy with the department store. We also completed renovations and reopened Tachikawa Takashimaya Shopping Center on November 14. The Takashimaya Group is dedicated to increasing the experiential value of the in-store experience and expanding our customer base by developing appealing shopping centers rooted in local communities. At the same time, the Group will work to stabilize our business portfolio by increasing our share in non-commercial domains in Japan and overseas, including rental housing and offices.

In the Finance segment, strengthening cardholder enrollment is the highest priority issue for the credit card business, a revenue pillar for the Group. We are working to attract new members and increase the appeal of Takashimaya Group credit cards. To develop business in the corporate domain, in August we began offering a new credit card for business owners and sole proprietors, and new member enrollment is trending favorably. In the Life Partner business, which offers financial products, we are developing human resources with dedicated expertise while working to steadily generate profits by strengthening ties to our excellent customer base and use department store locations to expand customer contact points.

For other Group companies and businesses, Takashimaya Group will elevate its expertise and take advantage of the strengths and unique characteristics of the Group to secure competitiveness in each segment while promoting initiatives that further strengthen profitability.

As an ESG strategy, the Takashimaya Group is promoting initiatives that allow us to fulfill our role as a platform for supporting lifestyles, culture, and local communities and working with customers, business partners, and local communities towards realizing enriched lifestyles. Through Depart de Loop, a sustainable/circular business for collecting unwanted clothing to be renewed into new products, we began selling products made from denim collected the previous year. The Group also expanded this initiative by adding cosmetics and cosmetic containers to the scope of used items it collects. To promote decarbonization, we adopted Japan's first short-term agreement scheme for an off-site Power Purchase Agreement (PPA*3). Through this agreement, renewable energy generated somewhere other than Takashimaya Group land is received directly from the operator. Using this scheme, we began providing power to the Yokohama Store in April and are planning to begin providing energy to the Takasaki Store from January 2024. We will work towards future adoption at other stores as well. In response to the 2024 Problem in Logistics (*4), the Takashimaya Group is leading the industry in efforts that contribute to driver fatigue reduction by adjusting delivery times from prior to store opening to after store opening for all stores. The Group will continue efforts related to resolving issues, including working to increase engagement by raising employee base pay and creating comfortable work environments.

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(*1) Public proposal

One form of private contractor selection used by municipalities. Private companies submit proposals in response to a public request for proposal and a contractor to receive priority negotiation rights is decided based on a comprehensive evaluation of factors such as concept, business plan, and contributions to the local community.

(*2) Public Private Partnership (PPP)

Local government and private businesses partnering on the construction, maintenance, management, and operation of public facilities to apply the ingenuity of private companies towards the effective utilization of financial capital or optimization of local government.

(*3) Power Purchase Agreement (PPA)

A contract for purchasing electricity.

(*4) 2024 Problem in Logistics

Problems associated with the June 2018 revisions to the Act to Promote Work Style Reform. As of April 2024, an upper limit of 960 hours per year (not including holiday work hours) will be applied to overtime for vehicle driver operations. Furthermore, with the Notice on Improvement Standards defining on-duty time for truck drivers (subject to administrative punishment in accordance with the Motor Truck Transportation Business Act), the regulation of on-duty hours will be further strengthened.

Our earnings for the cumulative first nine months under review were consolidated operating revenue of 334,192 million yen (increase of 5.2% YoY), consolidated operating profit of 33,209 million yen (increase of 45.3% YoY), consolidated ordinary profit of 35,829 million yen (increase of 46.4% YoY), and profit attributable to owners of parent of 24,251 million yen (increase of 5.9% YoY).

Segment-specific earnings for each business are as follows.

Operating revenue from the Department Store segment was 244,147 million yen (increase of 5.5% YoY) and operating profit was 20,658 million yen (increase of 59.6% YoY).

Department stores in Japan recorded increased revenue and profit.

The number of customers visiting stores increased on the invigoration of social and economic activities. Domestic customer net sales (excluding inbound travelers) were firm, particularly for fashion-related products such as women's clothing, men's clothing, and cosmetics. Looking at net sales from inbound travelers, sales of luxury brands and other high-ticket items were favorable as net sales were propelled by an increase in per-customer sales due to the yen depreciation. Many customers were attracted by regional product exhibits such as the Great Hokkaido Fairs held at various stores, the Special Exhibition held at Kyoto Store and Nihombashi Store commemorating the 5th Anniversary of Enthronement and 30th Anniversary of Marriage of Their Majesties the Emperor and Empress. Customers were also drawn to events planned to coincide with the seasons, such as summer vacation, autumn outdoor excursions, and Black Friday.

As a new initiative, the Takashimaya Group created "moi salon et ropé", a lifestyle shop developed in collaboration with JUN Co., Ltd. We opened locations at Osaka Store in May, at Yokohama Store in June, and at the Kyoto in October. The Group will continue working to expand product selection and strengthen marketing capabilities as we strive to meet the needs of customers.

Gross margin ratio is also improving steadily thanks to net sales growth for fashion-related products. The Group will continue with our cost- optimization program to promote profit growth.

Overseas business (January to September 2023) also resulted in increased revenue and profit.

Takashimaya Singapore net sales grew significantly on firm domestic consumer demand and a recovery in inbound traffic. Ho Chi Minh City Takashimaya also promoted new initiatives such as brands opening stores in Vietnam for the first time. These efforts resulted in both companies recording increased revenue and profit. Siam Takashimaya (Thailand) saw a recovery in net sales thanks to an increase in the number of customers visiting the store, including tourists, which helped reduce losses. On the other hand, Shanghai Takashimaya recorded a decrease in profit. Despite a significant increase in revenue thanks in part to a rebound in sales figures after the store was forced to close (67 days) during the previous year due to COVID-19, the impact of recording extraordinary losses for COVID-19-related expenses associated with the store closure was equally significant.

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Operating revenue from the Commercial Property Development segment was 38,387 million yen (increase of 9.3% YoY) and operating profit was 9,755 million yen (increase of 38.1% YoY).

Business in Japan resulted in increased revenue and profit on growth in sales from commercial facilities and a recovery in rent income.

In March, Toshin Development Co., Ltd. concluded a Comprehensive Partnership Agreement on Community Revitalization with the City of Nagareyama in Chiba Prefecture. Through this Agreement, the company is strengthening mutual cooperation on issues such as towards city development, creating an environment conducive to child-rearing, and disaster response and uniting with local government to promote community revitalization. The Group is working to further increase the appeal of the area through the Nagareyama Otakanomori Shopping Center. In May, TX Grand Avenue Otakanomori was reopened following a full-scale renewal. This commercial facility was created by utilizing the space under the elevated Nagareyama-Otakanomori Station, which is serviced by the Tsukuba Express. In June, we launched Otakanomori LOOP as a new space for the local community that provides residents a place for and opportunities to interact.

In October, the Group opened the Kyoto Takashimaya Shopping Center, which consists of Kyoto Store and the specialty shop zone "T8," based on the concept of creating "Kyoto's No. 1 Meetup Spot." In November, the Tachikawa Takashimaya Shopping Center was reopened following renovations designed to transform the facility into a "lifestyle space" for local residents. Moving forward, the Takashimaya Group will continue to apply the Machi-dukuri Strategy towards the development and operation of commercial facilities that embody the collective strengths of the Group as we strive to further increase the value of the in-store experience.

As a new business, in July the Group entered into a basic agreement with Adachi Ward, Tokyo concerning a "Rokucho Station Area Land Utilization Project." This represents the Takashimaya Group's first participation in a PPP project. This project will involve Toshin Development Co., Ltd., which was selected through the Public proposal, constructing and operating a multi-function commercial facility and bicycle parking on the land adjacent to Rokucho Station on the Tsukuba Express. The Group will use this project as an opportunity to expand our involvement in PPP projects in partnership with local governments.

Overseas (January to September 2023), Takashimaya Singapore S.C., which is operated by Toshin Development Singapore Pte. Ltd, recorded increased revenue and profit thanks to an increase in customer visits. This trend was similar to the trend seen with department stores. In Vietnam, the Group expanded our local business foundation through the steady advancement of the Star Lake Project Zone A, which involves the operation of a school, and the Lancaster Luminaire Project, a housing, office space, and commercial development project.

Operating revenue from the Finance segment was 13,044 million yen (increase of 1.7% YoY) and operating profit was 3,423 million yen (decrease of 0.8% YoY).

Although revenue increased on growth in net card transactions and customer base growth for the Life Partner business, profit decreased slightly on forward-looking investments related to market segment development and business foundation expansion.

In the Card business, as the number of customers visiting department stores and specialty stores increases, net transactions increased on continued Group efforts to expand new member enrollment and promote card use at external partner stores. Starting in August, the Group entered the corporate domain by offering the "Takashimaya Card (Business Platinum) American Express®" as the optimal business card for business owners and sole proprietors. The Group is favorably gaining new members and will continue working to improve customer satisfaction by leveraging synergy with department stores.

In the Life Partner business, customer consultations and enrollment applications are increasing steadily thanks to initiatives such as holding in-person seminars covering themes such as the new NISA scheme (*5) set to begin from 2024 and life planning for the 100-year life era, and establishing consultation desks where customers can receive information on both NISA and insurance.

In the Social Lending business, in October 2023 we entered into a business alliance with Bankers Co., Ltd., a company with an extensive track record and vast knowhow related to lending-based crowdfunding (*6). Through this alliance, we will expand the scope of Takashimaya Funding towards increasing revenue from the Finance business and creating new contact points with customers.

From July, SUGO-TSUMI (*7), which is offered through Takashimaya NEOBANK, began offering a service that allows customers whose accounts reach maturity to use funds towards payment settlement. Compared to the Takashimaya Rose Circle (Tomonokai club), this service is seeing greater use from customers aged 50 and under, a higher ratio of male members, and higher average savings balances. The Group will continue to promote an approach aligned with these characteristics of the service to increase member numbers and the retention rate, and promote use towards payment settlement.

(*5) New NISA scheme

Normally, when you invest in a financial product such as a stock or investment trust, a tax rate of roughly 20% is assessed against gains earned from the sale of the product and dividends received through the product. NISA is a scheme through which profits earned from financial

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products purchased through a NISA account (untaxed account) during a given year up to a certain amount to be untaxed. From January 2024, this scheme will switch to a new framework with various new characteristics, including an unlimited tax-free retention period, the establishment of permanent accounts, and an expanded annual investment limit.

(*6) Lending-based crowdfunding

A service that links companies seeking to procure capital with investors seeking to lend money and earn interest. A middle-risk/middle- return financial product that allows investments beginning from small amounts, this type of funding is drawing attention from investors.

(*7) SUGO-TSUMI

Stands for Takashimaya no Sugoi Tsumitate ("Takashimaya's amazing savings scheme"), one of the services offered through the Takashimaya NEOBANK app. Members who make twelve months of monthly deposits for a specified amount receive one month's amount as a shopping balance that is charged to their app for use when shopping at Takashimaya.

Operating revenue from the Construction & Design segment was 18,221 million yen (increase of 22.4% YoY) and operating losses were 483 million yen (previous FY resulted in operating losses of 456 million yen).

Takashimaya Space Create Co., Ltd. saw an increase in revenues on orders received for hotels and other large-scale properties such as commercial facilities and particularly luxury brands. However, losses increased slightly due in part to the impact of costs increases for certain large-scale properties. Moving forward, we will further tap into our marketing and design capabilities to strengthen pipeline sales and build a more stable revenue platform.

Operating revenue from Cross Media and other businesses was 20,391 million yen (decrease of 13.1% YoY) and operating profit was 766 million yen (increase of 11.5% YoY).

Overall, other businesses resulted in decreased revenue and increased profit. Although revenue from the Cross Media business decreased on a recovery in net sales from in-store sales at department stores, profit increased at Takashimaya Transcosmos International Commerce PTE. LTD.

1. Explanation of Financial Position

1. Status of Assets, Liabilities and Net Assets

Total assets as of November 30, 2023 amounted to 1,246,494 million yen, up 68,293 million yen from the end of the previous fiscal year. This was mainly due to an increase in notes and accounts receivable - trade, and in contract assets. Liabilities amounted to 780,513 million yen, up 38,794 million yen from the end of the previous fiscal year. This was mainly due to an increase in notes and accounts payable - trade. Net assets amounted to 465,981 million yen, up 29,498 million from the end of the previous fiscal year. This was mainly due to increases in retained earnings and foreign currency translation adjustment.

2) Status of Cash Flows

Net cash provided by operating activities was 38,014 million yen, an increase of 20,068 million yen from 17,946 million yen provided in the same period of the previous fiscal year. This was mainly due to an increase of 7,339 million yen in profit before income taxes.

Net cash used in investing activities was 22,318 million yen, an increase of 15,052 million yen (decrease in cash provided) from 7,265 million yen used in the same period of the previous fiscal year. This was mainly due to a decrease of 11,334 million yen in proceeds from sale and redemption of short-term and long-term investment securities, and an increase of 3,104 million yen in purchase of property, plant and equipment and intangible assets.

Net cash used in financing activities was 16,576 million yen, a decreased outflow of 9,687 million yen from 26,264 million yen used in the same period of the previous fiscal year. This was mainly due to a decrease of 16,694 million yen in purchase of treasury shares.

When exchange differences are added to the above cash flows, cash and cash equivalents as of November 30, 2023 amounted to 92,948 million yen, up 4,317 million yen from the end of the previous fiscal year.

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(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements

For the consolidated earnings forecasts, operating revenue, operating profit, ordinary profit and profit attributable to owners of parent have been revised as follows in light of operating results for the third quarter, such as steady department store sales and strong inbound demand.

Consolidated earnings forecasts for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)

	Operating			Profit	Earnings per
	Operating profit	Ordinary profit	attributable to
	revenue	share
			owners of parent
	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Yen
Forecasts announced on October 13	465,000	44,000	45,000	29,500	187.02
Forecasts revised on December 25	467,000	45,000	47,000	30,000	190.19
Change (amount)	2,000	1,000	2,000	500	－
Change (%)	0.4	2.3	4.4	1.7	－
Results for the previous year	443,443	32,519	34,520	27,838	169.78
(Year ended February 28, 2023)

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2. Quarterly Consolidated Financial Statements and Major Notes

(1) Quarterly Consolidated Balance Sheets

				(Millions of yen)
			As of February 28, 2023	As of November 30, 2023
	Assets
	Current assets
	Cash and deposits		90,841	96,549
	Notes and accounts receivable - trade, and contract assets	143,477	181,798
	Merchandise and finished goods		35,201	43,302
	Work in process	284	387
	Raw materials and supplies		869	827
	Other	31,625	38,192
	Allowance for doubtful accounts		(770)	(732)
	Total current assets		301,530	360,325
	Non-current assets
	Property, plant and equipment
	Buildings and structures, net		184,336	191,876
	Land	419,938	419,965
	Leased assets, net		1,625	1,017
	Right-of-use assets, net	76,867	76,636
	Other, net		22,749	20,880
	Total property, plant and equipment		705,517	710,376
	Intangible assets
	Goodwill	2,394	2,645
	Leasehold interests in land		11,125	11,533
	Right-of-use assets	6,477	6,862
	Other		17,086	17,824
	Total intangible assets		37,084	38,864
	Investments and other assets
	Investment securities	78,699	86,591
	Guarantee deposits		27,075	26,510
	Other	30,655	26,003
	Allowance for doubtful accounts		(2,361)	(2,178)
	Total investments and other assets		134,069	136,927
	Total non-current assets		876,670	886,168
	Total assets		1,178,201	1,246,494

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				(Millions of yen)
			As of February 28, 2023	As of November 30, 2023
	Liabilities
	Current liabilities
	Notes and accounts payable - trade		110,663	141,203
	Short-term borrowings	9,660	45,120
	Lease liabilities		10,368	11,341
	Income taxes payable	3,219	2,625
	Contract liabilities		96,912	105,166
	Gift certificates	43,571	43,030
	Provision for point card certificates		2,201	2,207
	Other	89,134	96,557
	Total current liabilities		365,731	447,252
	Non-current liabilities
	Bonds payable		80,173	80,150
	Long-term borrowings	123,750	85,221
	Lease liabilities		79,856	79,745
	Asset retirement obligations	5,872	6,436
	Retirement benefit liability		50,206	47,906
	Provision for retirement benefits for directors (and other officers)	248	246
	Provision for environmental measures		16	7
	Other	35,862	33,544
	Total non-current liabilities		375,987	333,260
	Total liabilities		741,718	780,513
	Net assets
	Shareholders' equity
	Share capital		66,025	66,025
	Capital surplus	54,790	54,790
	Retained earnings		294,129	313,231
	Treasury shares	(32,690)	(32,691)
	Total shareholders' equity		382,255	401,356
	Accumulated other comprehensive income
	Valuation difference on available-for-sale securities		8,366	10,655
	Deferred gains or losses on hedges	(1)	2
	Revaluation reserve for land		3,972	3,972
	Foreign currency translation adjustment	19,811	26,616
	Remeasurements of defined benefit plans		(1,079)	(1,337)
	Total accumulated other comprehensive income		31,070	39,908
	Non-controlling interests		23,155	24,715
	Total net assets		436,482	465,981
	Total liabilities and net assets		1,178,201	1,246,494

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