Xebio : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2023

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 Three Months Ended June 30, 2023 (Based on Japanese GAAP)

				August 10, 2023
Company name:	XEBIO HOLDINGS CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	8281	URL http://www.xebio.co.jp
Representative:	President & CEO	Tomoyoshi Morohashi
Inquiries:	CFO		Kazuhiko Nakamura	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 10, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023 to June 30, 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	%
Three months ended June 30, 2023	62,266		1.3		2,624		(37.2)	3,149		(35.1)	1,987	(37.5)
Three months ended June 30, 2022	61,463		9.8		4,180		54.0	4,851		56.5	3,177	52.7
	Earnings per share			Diluted earnings per share
				Yen			Yen
Three months ended June 30, 2023			44.95				44.69
Three months ended June 30, 2022			71.87				71.59
(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, 2023	217,484		123,706				56.6	2,784.15
As of March 31, 2023	211,300		122,567				57.7	2,760.04

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 March 31, 2023	-	15.00	-	15.00
Year ending March 31, 2024	-
Year ending March 31, 2024 (Forecast)		15.00	-	15.00

Total

Yen 30.00

30.00

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

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
126,356	7.1	4,139		2.4	4,480	(10.6)	2,854	(9.3)	64.55
September 30, 2023
Full year	259,891	8.6	8,815		5.9	9,535	3.2	5,643	4.6	127.64

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 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 June 30, 2023	47,911,023	shares	As of March 31, 2023	47,911,023	shares
Number of treasury shares at the end of the period
	As of June 30, 2023	3,700,367	shares	As of March 31, 2023	3,700,307	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2023	44,210,678	shares	Three months ended June 30, 2022	44,210,968	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Assets
Current assets
Cash and deposits	32,890	33,032
Notes and accounts receivable - trade	23,414	22,530
Operating loans	878	874
Merchandise	80,714	84,460
Income taxes refund receivable	157	554
Other	8,188	8,736
Allowance for doubtful accounts	(438)	(414)
Total current assets	145,805	149,774
Non-current assets
Property, plant and equipment
Buildings and structures	52,445	52,209
Accumulated depreciation	(38,560)	(37,716)
Buildings and structures, net	13,885	14,492
Land	13,984	14,010
Leased assets	6,091	6,085
Accumulated depreciation	(1,853)	(1,975)
Leased assets, net	4,238	4,109
Construction in progress	291	468
Other	22,463	23,531
Accumulated depreciation	(19,477)	(19,821)
Other, net	2,985	3,710
Total property, plant and equipment	35,385	36,790
Intangible assets
Goodwill	330	227
Software	3,831	4,434
Other	2,622	2,547
Total intangible assets	6,784	7,209
Investments and other assets
Investment securities	953	1,537
Long-term loans receivable	12	10
Deferred tax assets	4,574	4,301
Guarantee deposits	1,465	1,459
Leasehold deposits	14,013	14,087
Investment property	3,120	3,120
Accumulated depreciation	(1,289)	(1,293)
Investment property, net	1,831	1,827
Retirement benefit asset	103	118
Other	539	577
Allowance for doubtful accounts	(168)	(209)
Total investments and other assets	23,325	23,710
Total non-current assets	65,494	67,710
Total assets	211,300	217,484

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		(Millions of yen)
	As of March 31, 2023	As of June 30, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	23,429	20,322
Electronically recorded obligations - operating	29,032	37,892
Short-term borrowings	800	800
Current portion of long-term borrowings	1,840	1,825
Income taxes payable	1,521	975
Provision for bonuses	1,299	709
Provision for bonuses for directors (and other officers)	15	3
Provision for point card certificates	78	71
Other	14,160	15,096
Total current liabilities	72,177	77,696
Non-current liabilities
Long-term borrowings	4,772	4,335
Lease liabilities	5,222	5,077
Retirement benefit liability	862	852
Provision for retirement benefits for directors (and other	59	59
officers)
Asset retirement obligations	4,768	4,849
Other	870	907
Total non-current liabilities	16,555	16,081
Total liabilities	88,732	93,778
Net assets
Shareholders' equity
Share capital	15,935	15,935
Capital surplus	16,119	16,119
Retained earnings	96,499	97,823
Treasury shares	(6,498)	(6,498)
Total shareholders' equity	122,056	123,380
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	185	234
Foreign currency translation adjustment	197	(110)
Remeasurements of defined benefit plans	(415)	(416)
Total accumulated other comprehensive income	(32)	(291)
Share acquisition rights	341	347
Non-controlling interests	202	270
Total net assets	122,567	123,706
Total liabilities and net assets	211,300	217,484

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2022	June 30, 2023
Net sales	61,463	62,266
Cost of sales	37,079	38,173
Gross profit	24,384	24,092
Selling, general and administrative expenses	20,203	21,468
Operating profit	4,180	2,624
Non-operating income
Interest income	30	47
Dividend income	6	7
Rental income from real estate	148	185
Foreign exchange gains	485	309
Outsourcing service income	71	103
Subsidy income	81	-
Other	49	111
Total non-operating income	873	765
Non-operating expenses
Interest expenses	25	25
Rental expenses on real estate	105	114
Commission expenses	57	76
Other	13	23
Total non-operating expenses	202	240
Ordinary profit	4,851	3,149
Extraordinary income
Gain on sale of non-current assets	1	0
Gain on reversal of share acquisition rights	102	-
Insurance claim income	62	18
Total extraordinary income	165	18
Extraordinary losses
Loss on retirement of non-current assets	58	9
Loss on sale of non-current assets	0	0
Loss on disaster	-	2
Total extraordinary losses	58	11
Profit before income taxes	4,958	3,155
Income taxes - current	1,132	877
Income taxes - deferred	616	252
Total income taxes	1,749	1,130
Profit	3,209	2,025
Profit attributable to non-controlling interests	31	38
Profit attributable to owners of parent	3,177	1,987

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