Konaka : Summary of Consolidated Financial Results for the Nine Months Ended June 30, 2022(Based on Japanese GAAP)

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 Nine Months Ended June 30, 2022 (Based on Japanese GAAP)

				August 12, 2022
Company name:	KONAKA CO.,LTD.
Stock exchange listing:	Tokyo
Stock code:	7494	URL https://www.konaka.co.jp
Representative:	Representative Director, President and CEO	Kensuke Konaka
	Group Representative
	Senior Managing Executive Officer, CFO,
Inquiries:	General Manager of Administration	Makoto Okumura	TEL [phone]
	Headquarters
Scheduled date to file Quarterly Securities Report:	August 12, 2022
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 nine months ended June 30, 2022 (from October 1, 2021 to June 30, 2022)

(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		%
Nine months ended June 30, 2022	50,444		-		(1,018)	-		(135)			-		(908)		-
Nine months ended June 30, 2021	47,548		28.1		(4,889)	-		(4,001)			-		(3,855)		-
	Earnings per share			Diluted earnings per share
				Yen				Yen
Nine months ended June 30, 2022			(31.20)				-
Nine months ended June 30, 2021			(132.40)				-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of June 30, 2022		58,050					22,552				37.2
As of September 30, 2021		58,835					25,051				39.7
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 September 30, 2021		-		10.00			-				10.00			20.00
Year ending September 30, 2022		-		10.00			-
Year ending September 30, 2022													10.00			20.00
(Forecast)

3. Forecast of consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)

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	75,000	28.0	700		-	1,400		-	300		-	10.30

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4. Notes

1. Changes in significant subsidiaries during the nine months ended June 30, 2022 (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 June 30, 2022	31,146,685	shares	As of September 30, 2021	31,146,685	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	2,031,199	shares	As of September 30, 2021	2,030,693	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended June 30, 2022	29,115,761	shares	Nine months ended June 30, 2021	29,116,318	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of September 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	6,339	7,737
Notes and accounts receivable - trade	2,092	3,139
Merchandise and finished goods	17,927	16,823
Work in process	0	0
Raw materials and supplies	320	286
Other	1,493	1,412
Allowance for doubtful accounts	(5)	(0)
Total current assets	28,167	29,399
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,819	4,121
Land	10,488	10,486
Other, net	446	396
Total property, plant and equipment	15,755	15,004
Intangible assets
Trademark right	1,240	1,127
Other	441	362
Total intangible assets	1,681	1,489
Investments and other assets
Investment securities	3,530	2,909
Leasehold and guarantee deposits	8,248	7,925
Retirement benefit asset	467	518
Other	1,017	841
Allowance for doubtful accounts	(31)	(38)
Total investments and other assets	13,231	12,157
Total non-current assets	30,668	28,651
Total assets	58,835	58,050
Liabilities
Current liabilities
Notes and accounts payable - trade	1,453	1,966
Electronically recorded obligations - operating	1,531	2,936
Short-term borrowings	13,090	13,593
Current portion of long-term borrowings	728	708
Income taxes payable	461	294
Provision for bonuses	499	435
Other	3,677	4,493
Total current liabilities	21,441	24,429
Non-current liabilities
Long-term borrowings	8,406	7,870
Retirement benefit liability	619	593
Provision for retirement benefits for directors (and other	31	-
officers)
Provision for point card certificates	642	57
Other	2,643	2,547
Total non-current liabilities	12,342	11,068
Total liabilities		33,784	35,498

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			(Millions of yen)
		As of September 30, 2021	As of June 30, 2022
Net assets
Shareholders' equity
Share capital	5,305	5,305
Capital surplus	13,253	13,253
Retained earnings	6,349	4,876
Treasury shares	(3,342)	(3,342)
Total shareholders' equity	21,565	20,093
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,698	1,464
Foreign currency translation adjustment	47	25
Remeasurements of defined benefit plans	30	18
Total accumulated other comprehensive income	1,776	1,508
Non-controlling interests	1,708	950
Total net assets	25,051	22,552
Total liabilities and net assets		58,835	58,050

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		June 30, 2021	June 30, 2022
Net sales	47,548	50,444
Cost of sales	21,246	21,609
Gross profit	26,301	28,834
Selling, general and administrative expenses	31,191	29,853
Operating loss	(4,889)	(1,018)
Non-operating income
Interest income	13	11
Dividend income	91	31
Rental income from real estate	344	363
Subsidies for employment adjustment	702	345
Other	207	372
Total non-operating income	1,359	1,125
Non-operating expenses
Interest expenses	115	126
Rental expenses on real estate	54	61
Arrangement Fee	255	-
Other	46	54
Total non-operating expenses	472	242
Ordinary loss	(4,001)	(135)
Extraordinary income
Gain on sale of non-current assets	5	4
Gain on sale of investment securities	114	49
Total extraordinary income	120	54
Extraordinary losses
Loss on retirement of non-current assets	86	3
Impairment losses	808	1,291
Loss on store closings	41	31
Other	0	19
Total extraordinary losses	937	1,345
Loss before income taxes	(4,818)	(1,426)
Income taxes - current	213	238
Income taxes - deferred	(22)	(18)
Total income taxes	190	220
Loss	(5,009)	(1,646)
Loss attributable to non-controlling interests	(1,154)	(738)
Loss attributable to owners of parent		(3,855)	(908)

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