Shochiku : Summary of Consolidated Financial Results of the Year Ended February 28, 2023（1.1 MB）

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 28, 2023

(Based on Japanese GAAP)

April 14, 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

Jay Sakomoto

Inquiries:

Director

Hiroshige Osaki

TEL [phone]

Scheduled date of ordinary general meeting of shareholders:

May 23, 2023

Scheduled date to file Securities Report:

May 24, 2023

Scheduled date to commence dividend payments:

May 24, 2023

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 28, 2023 (from March 1, 2022 to February 28, 2023)

(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 28, 2023

78,212

8.9

(776)

-

1,359

-

5,484

-

Year ended February 28, 2022

71,835

37.0

(4,005)

-

(2,801)

-

(1,762)

-

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 28, 2023

399.30

-

6.6

0.7

(1.0)

Year ended February 28, 2022

(128.33)

-

(2.2)

(1.5)

(5.6)

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of February 28, 2023

178,803

86,482

48.3

6,289.19

As of February 28, 2022

188,781

80,833

42.4

5,827.78

(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 28, 2023

6,061

9,706

(13,507)

16,013

Year ended February 28, 2022

4,806

(1,668)

(4,977)

16,531

2. Cash dividends

Annual dividends per share

Total cash

Dividend payout

Ratio of dividends

to net assets

dividends (Total)

ratio (Consolidated)

1st quarter-end 2nd quarter-end

3rd quarter-end Fiscal year-end

Total

(Consolidated)

Yen

Yen

Yen

Yen

Yen Millions of yen

%

%

Year ended February 28, 2022 Year ended February 28, 2023

Year ending February 29, 2024 (Forecast)

-	0.00	-	0.00	0.00	-	-	-
-	0.00	-	30.00	30.00	414	7.5	0.5
-	0.00	-	30.00	30.00		41.2

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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	92,460	18.2	2,230	-	1,380	1.5	1,000	(81.8)	72.80
4. Notes
(1) Changes in significant subsidiaries during the year ended February 28, 2023		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:						No
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 28, 2023	13,937,857	shares	As of February 28, 2022	13,937,857	shares
Number of treasury shares at the end of the period
As of February 28, 2023	201,406	shares	As of February 28, 2022	204,443	shares
Average number of shares during the period
Year ended February 28, 2023	13,735,604	shares	Year ended February 28, 2022	13,734,320	shares

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Consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of February 28, 2022	As of February 28, 2023
Assets
Current assets
Cash and deposits	16,791	16,113
Notes and accounts receivable - trade	8,713	-
Notes and accounts receivable - trade and contract assets	-	7,469
Merchandise and finished goods	1,648	1,701
Work in process	4,201	3,953
Raw materials and supplies	114	117
Advance payments to suppliers	720	484
Prepaid expenses	1,134	1,071
Advances paid	158	582
Consumption taxes refund receivable	42	-
Other	886	281
Allowance for doubtful accounts	(14)	(2)
Total current assets	34,396	31,772
Non-current assets
Property, plant and equipment
Buildings and structures, net	43,151	39,836
Facilities,net	11,254	9,712
Machinery, equipment and vehicles, net	1,589	1,222
Tools, furniture and fixtures, net	902	783
Land	41,847	39,688
Leased assets, net	2,511	1,729
Construction in progress	15	15
Other, net	31	48
Total property, plant and equipment	101,304	93,036
Intangible assets
Leasehold interests in land	1,451	1,451
Trademark right	6	3
Software	501	408
Other	46	50
Total intangible assets	2,005	1,914
Investments and other assets
Investment securities	31,560	33,467
Long-term loans receivable	1,045	956
Long-term prepaid expenses	12,479	11,953
Deferred tax assets	428	444
Retirement benefit asset	136	159
Guarantee deposits	4,812	4,806
Other	709	378
Allowance for doubtful accounts	(98)	(86)
Total investments and other assets	51,074	52,079
Total non-current assets	154,384	147,030
Total assets	188,781	178,803

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		(Millions of yen)
	As of February 28, 2022	As of February 28, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	7,963	6,116
Short-term borrowings	4,871	4,871
Current portion of long-term borrowings	16,935	17,404
Lease liabilities	1,213	697
Accounts payable - other	2,611	2,010
Accrued expenses	957	1,244
Accrued business office tax	113	114
Income taxes payable	428	865
Accrued consumption taxes	1,165	947
Provision for bonuses	479	527
Other	2,824	2,763
Total current liabilities	39,563	37,561
Non-current liabilities
Long-term borrowings	48,791	33,887
Lease liabilities	1,414	1,422
Deferred tax liabilities	4,838	6,734
Provision for retirement benefits for directors (and other	886	212
officers)
Retirement benefit liability	1,675	1,767
Asset retirement obligations	1,483	1,512
Guarantee deposits received	8,715	8,054
Other	579	1,168
Total non-current liabilities	68,384	54,759
Total liabilities	107,947	92,320
Net assets
Shareholders' equity
Share capital	33,018	33,018
Capital surplus	30,136	30,157
Retained earnings	8,476	13,576
Treasury shares	(1,485)	(1,464)
Total shareholders' equity	70,145	75,288
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	10,297	11,426
Foreign currency translation adjustment	(63)	(63)
Remeasurements of defined benefit plans	(344)	(259)
Total accumulated other comprehensive income	9,889	11,102
Non-controlling interests	798	91
Total net assets	80,833	86,482
Total liabilities and net assets	188,781	178,803

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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, 2022	February 28, 2023
Net sales	71,835	78,212
Cost of sales	46,403	46,295
Gross profit	25,432	31,917
Selling, general and administrative expenses
Advertising expenses	3,096	3,876
Personnel expenses	10,064	10,432
Business office tax	111	113
Provision of allowance for doubtful accounts	14	21
Provision for bonuses	381	444
Retirement benefit expenses	403	466
Provision for retirement benefits for directors (and other	108	42
officers)
Rent expenses on land and buildings	4,680	4,996
Depreciation	2,425	2,312
Other	8,152	9,987
Total selling, general and administrative expenses	29,437	32,693
Operating loss	(4,005)	(776)
Non-operating income
Interest income	13	11
Dividend income	574	679
Subsidies for employment adjustment	340	79
Cooperation money income	1,045	238
Subsidy income	713	2,615
Miscellaneous income	299	309
Total non-operating income	2,986	3,934
Non-operating expenses
Interest expenses	621	536
borrowing fee	193	143
Share of loss of entities accounted for using equity method	735	937
Miscellaneous expenses	233	181
Total non-operating expenses	1,783	1,798
Ordinary profit (loss)	(2,801)	1,359
Extraordinary income
Gain on sale of non-current assets	295	6,996
Gain on sale of investment securities	170	-
Gain on change in equity	9	321
Gain on reversal of asset retirement obligations	-	15
Reversal of provision for loss on disaster	117	-
Total extraordinary income	593	7,333

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