Consolidated Financial Report

for the First Three Months of the Fiscal Year Ending October 31, 2024

(Japanese GAAP)

March 14, 2024

Company name:

PARK24 CO., LTD.

Stock listing: Prime Market of TSE

Code number:

4666

URL

: https://www.park24.co.jp/en

Representative:

Koichi Nishikawa, President

Inquiries:

Takao Miki, Director,

Senior Corporate Officer,

Senior General Manager of Corporate Planning Division

TEL

: +81-3-6747-8120

Scheduled day of submission of a financial report

: March 14, 2024

Scheduled day of commencing dividend payment

: -

Preparation of supplementary financial data

: Yes

Information meeting for financial results to be held

: Yes, only in Japanese

(For institutional investors and analysts)

(Figures are rounded down to the nearest one million yen)

1. Overview of the First Three Months of Fiscal Year Ending October 31, 2024 (November 1, 2023 -

January 31, 2024)

(1) Consolidated Operating Results

(Figures in percentages denote the year-on-year change)

Net sales

Operating profit

Recurring profit

Profit attributable to

owners of parent

Three months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

January 31, 2024

86,731

9.8

8,622

2.4

7,975

100.3

5,086

61.5

January 31, 2023

79,022

13.0

8,416

80.9

3,981

6.5

3,148

564.3

(Note) Comprehensive income: Three months ended January 31, 2024: 4,456 million yen -28.3%

Three months ended January 31, 2023: 6,212 million yen −%

Net income per share

Net income per share

after dilution

Three months ended

Yen

Yen

January 31, 2024

29.83

27.26

January 31, 2023

18.47

17.52

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

Million yen

Million yen

%

As of January 31, 2024

303,638

62,871

20.7

As of October 31, 2023

308,157

58,416

18.9

(Reference) Equity: As of January 31, 2024: 62,821 million yen

As of October 31, 2023: 58,364 million yen

2. Dividend status

Dividend per share

End of Q1

End of Q2

End of Q3

End of term

Annual

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

October 31, 2023

-

0.00

-

0.00

0.00

October 31, 2024

-

Fiscal year ending

0.00

-

5.00

5.00

October 31, 2024(Forecasts)

(Notes) Revisions to dividend projection published most recently: None

- 1 -

3. Consolidated Forecasts for the Fiscal Year ending October 31, 2024 (November 1, 2023 - October 31, 2024)

(The percentages indicate the rates of increase or decrease compared with the same period of the previous year)

Profit attributable

Net income

Net sales

Operating profit

Recurring profit

to owners of

per share

parent

million yen

%

million yen

%

million yen

%

million yen

%

yen

Interim

170,000

8.2

15,500

2.7

13,500

17.5

8,500

6.5

49.82

Full year

357,000

8.1

35,000

9.4

31,000

12.0

20,000

14.0

117.23

(Notes) Revisions to consolidated results projection published most recently: None

(Notes)

(1) Changes in important subsidiaries during the term

:No

New: -- company (

)

Eliminated: -- company (

)

(2) Adoption of special accounting methods for preparation of quarterly

:No

consolidated financial statement

(3) Changes in accounting policies and changes or restatement of accounting estimates

1)

Changes in accounting policies caused by revision of accounting standards

:No

2)

Changes in accounting policies other than 1)

:No

3)

Changes in accounting estimates

:No

4)

Restatement

:No

(4) Number of shares issued (common stock)

1) Number of shares issued at the

Three Months ended

171,048,369

Fiscal year ended

171,048,369

end of the period (including

January 31, 2024

shares

October 31,2023

shares

treasury stock)

2) Number of treasury stock at the

Three Months ended

528,494

Fiscal year ended

528,494

end of the period

January 31, 2024

shares

October 31,2023

shares

3) Average number of shares

Three Months ended

170,519,875

Three Months ended

170,519,914

during the term (consolidated

January 31, 2024

shares

January 31, 2023

shares

cumulative period)

* This financial summary falls outside the scope of audit procedures of certified public accountant or audit corporation

* Explanations and other special notes concerning the appropriate use of business performance forecasts

The consolidated business performance forecasts given in this document are based on assumptions, prospects, and future business plans, currently available on the date this document was published. Actual results may differ from these forecasts for a variety of reasons. For other matters relating to the forecasts, please refer to "1. Qualitative Data, Financial Statements and Other Information (4) Information on the future outlook, including consolidated business performance forecasts".

- 2 -

Accompanying Materials - Contents

  1. Qualitative Data, Financial Statements and Other Information …………………………………………………………… 4
    1. Qualitative data on the consolidated financial results …………………………………………………………………… 4
    2. Overview of financial position……………………………………………………………………………………………… 6
    3. Cash flow situation…………………………………………………………………………………………………………… 6
    4. Information on the future outlook, including consolidated business performance forecasts………………………… 7
  3. Consolidated Financial Statements and Notes………………………………………………………………………………8
    1. Consolidated balance sheet …………………………………………………………………………………………………8
    2. Consolidated statements of profit and loss, and comprehensive income………………………………………………10
    3. Consolidated statement of cash flows………………………………………………………………………………………12
    4. Matters Related to Summary Information (Notes)…………………………………………………………………………13
      (Note on going concern assumptions)………………………………………………………………………………………13
      (Note when there is a considerable change in the amount of shareholders' equity)……………………………………13
      (Additional Information)………………………………………………………………………………………………………13
      (Segment information)…………………………………………………………………………………………………………13

- 3 -

1. Qualitative Data, Financial Statements and Other Information

(1) Qualitative data on the consolidated financial results

To achieve its medium-term business growth strategy; "expansion and seamless connection of our four networks (people, cars, communities and parking facilities)", the Group is focusing on "accelerating network expansion" and "facilitating the evolution of services" in the fiscal year ending October 31, 2024. To expand the networks, the Group aims to expand its revenue base by developing new sites in the Parking Business. In the Mobility Business, the Group aims to increase the number of vehicles, Times CAR rental sites, and Times CAR members. Evolution of services is our effort to achieve further growth by pursuing convenience so that we continue to be the choice of customers, and by implementing digitalization to build robust infrastructure enabling the creation and provision of new services.

During the first three months of the consolidated fiscal year under review, Parking Business Japan and Mobility Business performed well. In Parking Business International, parking operation remained robust except for certain areas where parking operation was weaker than expected. The Group's operating results in the first three months under review are as shown below.

(Unit: million yen)

Three months

Three months

YoY change

ended January

ended January

Amount

%

31, 2023

31, 2024

Net sales

79,022

86,731

7,709

9.8％

Operating profit

8,416

8,622

205

2.4％

Recurring profit

3,981

7,975

3,994

100.3％

Profit attributable to owners of parent

3,148

5,086

1,937

61.5％

Results by business segment (including intersegment sales) are as follows.

Parking Business Japan

Parking operation performed well. The Group expanded its operations while maintaining profitability by leveraging the expertise it accumulated in selective development. In the first three months under review, the Group developed 269 parking facilities. As part of its efforts to facilitate the evolution of services, it is working to expand car number recognition camera-assisted parking sites, and in doing so build next-generation parking services that enable easier entry, exit and settlement. Results in the first three months under review reflecting these initiatives are as shown below.

- Results

(Unit: million yen)

Three months

Three months

YoY change

ended January

ended January

Amount

%

31, 2023

31, 2024

Net sales

41,068

43,616

2,548

6.2％

Operating profit

9,210

9,734

523

5.7％

- Expansion of the networks

As of October

As of January

Vs. the previous fiscal year

31, 2023

31, 2024

Number

%

Number of Times PARKING

(Sites)

17,639

17,768

129

0.7％

facilities

Number of Times PARKING

(Spaces)

576,262

584,158

7,896

1.4％

spaces

- 4 -

Total number of parking sites*

(Sites)

25,379

25,375

-4

-0.0％

Total number of parking

(Spaces)

761,654

768,618

6,964

0.9％

spaces*

*The number of sites/spaces in the monthly parking and facility management services is included.

Parking Business International

In the United Kingdom, among the regions in which the Group operates, parking operation progressed steadily. In Australia, parking operation was weaker than expected especially in urban areas. In other regions, parking operation performed well.

The Group promoted the development of short-term contract parking facilities (localized Times PARKING) suited for demand for parking facilities in each region, based on the strategy of "small, dispersed and dominant" used in the Parking Business Japan. Thorough this, it has optimized the business portfolio which concentrated heavily on large and long-term contract parking facilities, aiming to reduce business risk. Also, the Group took steps to improve the profitability of existing parking sites by instituting measures according to regional characteristics and utilizing the parking site operation management system. Additionally, the Group is working to improve customer convenience and satisfaction by evolving services including measures to facilitate cashless payments. Results in the first three months under review are as shown below.

  • The results for the three months of the fiscal year ended October 31, 2023, and the three months of the fiscal year ending October 31, 2024, are the results of overseas subsidiaries for the period from October 1 to December 31, 2022, and the period from October 1 to December 31, 2023, respectively.
    • Results

(Unit: million yen)

Three months

Three months

YoY change

ended January

ended January

Amount

%

31, 2023

31, 2024

Net sales

17,053

19,256

2,203

12.9％

Operating loss*

-283

-317

-34

－

*Amortization of goodwill includes minus 322 million yen for the three months ended October 31, 2023 and minus 345 million yen for the three months ended October 31, 2024.

- Expansion of the networks

As of October

As of January

Vs. the previous fiscal year

31, 2023

31, 2024

Number

%

Number of localized Times

(Sites)

1,348

1,397

49

3.6％

PARKING sites

Number of localized Times

(Spaces)

52,598

52,972

374

0.7％

PARKING spaces

Total number of parking sites*

(Sites)

2,586

2,634

48

1.9％

Total number of parking

(Spaces)

538,161

537,161

-1,000

-0.2％

spaces*

*The number of sites/spaces in the monthly parking and facility management services is included.

Mobility Business

The number of Times CAR members and the use of cars grew steadily due to the increase in the recognition of Times

- 5 -

CAR through the continuous implementation of promotions, increased convenience as a result of improved member programs and the enhanced user interface of applications, and the implementation of campaigns and other programs aimed at facilitating use. During the first three months under review, the Group increased 1,674 vehicles and 966 Times CAR rental sites. Usage fees per vehicle rose, as did the number of vehicles, as the Group expanded its fleet and rental sites based on demand and regional characteristics. Results in the first three months under review are as shown below.

- Results

(Unit: million yen)

Three months

Three months

YoY change

ended January

ended January

Amount

%

31, 2023

31, 2024

Net sales

22,170

25,244

3,073

13.9％

Operating profit

3,044

3,406

362

11.9％

- Expansion of the networks

As of October

As of January

Vs. the previous fiscal year

31, 2023

31, 2024

Number

%

Number of vehicles

(Units)

60,047

61,721

1,674

2.8％

Number of Times CAR rental

(Sites)

16,017

16,983

966

6.0％

sites

Number of members

(Thousand

2,423

2,564

140

5.8％

people)

(2) Overview of financial position

The Group's financial position at the end of the first three months under review is as shown below.

As of October 31, 2023

As of January 31,2024

Change

Total assets

(Million yen)

308,157

303,638

-4,518

Interest-bearing

(Million yen)

170,724

171,706

982

liabilities

Total shareholders'

(Million yen)

70,301

75,387

5,086

equity

Shareholders' equity

(%)

22.8

24.8

2.0

ratio (%)

Net D/E ratio*

(Times)

1.38

1.34

-0.04

*(Interest-bearing liabilities - Cash and deposits)/Total shareholders' equity

(3) Cash flow situation

The cash flow situation by category for the first three months under review was as follows.

- 6 -

(Unit: million yen)

Three months ended

Three months ended

Change

January 31, 2023

January 31, 2024

Cash flows from operating activities

4,545

6,330

1,784

Cash flows from investing activities

-2,535

-6,190

-3,654

Free cash flow

2,009

140

-1,869

Cash flows from financing activities

-3,288

-3,107

180

Cash and cash equivalents at end

83,487

70,179

-13,307

of period

(4) Information on the future outlook, including consolidated business performance forecasts

The consolidated earnings forecasts for the fiscal year ending October 31, 2024 have not been changed from the figures announced on December 14, 2023 in the Consolidated Financial Report for the Fiscal Year Ended October 31, 2023.

- 7 -

2. Consolidated Financial Statements and Notes

(1) Consolidated balance sheet

(Unit: million yen)

As of

As of

October 31,2023

January 31,2024

Asset

Current assets

Cash and deposits

73,957

70,830

Notes and accounts receivable -trade

23,624

21,826

Inventories

2,044

2,108

Other

34,454

34,395

Allowance for doubtful accounts

-745

-632

Total current assets

133,335

128,528

Non-current assets

Property, plant and equipment

Buildings and structures, net

28,608

28,347

Machinery, equipment and vehicles, net

32,548

33,519

Land

24,899

24,899

Leased assets, net

7,592

7,693

Right of use assets, net

20,049

20,181

Other, net

7,467

8,053

Total property, plant and equipment

121,167

122,694

Intangible assets

Goodwill

18,117

17,634

Contract-based intangible assets

6,545

6,377

Other

7,392

7,579

Total intangible assets

32,055

31,591

Investments and other assets

21,425

20,679

Total non-current assets

174,647

174,966

Deferred assets

174

143

Total assets

308,157

303,638

Liabilities

Current liabilities

Short-term borrowings

3,154

3,168

Current portion of long-term borrowings

28,257

28,139

Lease liabilities

10,742

10,671

Income taxes payable

6,119

1,752

Provision for bonuses

3,390

1,314

Other

52,258

49,913

Total current liabilities

103,922

94,959

Current liabilities

Bonds with share acquisition rights

42,310

42,310

Long-term borrowings

68,204

68,101

Lease liabilities

18,055

19,316

Deferred tax liabilities

1,709

1,674

Asset retirement obligations

9,722

9,726

Other

5,817

4,678

Total non-current liabilities

145,818

145,807

Total liabilities

249,741

240,767

- 8 -

(Unit: million yen)

As of

As of

October 31,2023

January 31,2024

Net assets

Shareholders' equity

Share capital

32,739

32,739

Capital surplus

28,326

28,326

Retained earnings

10,491

15,577

Treasury shares

-1,255

-1,255

Total shareholders' equity

70,301

75,387

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

118

125

Deferred gains or losses on hedges

23

-5

Revaluation reserve for land

-1,035

-1,035

Foreign currency translation adjustment

-8,099

-8,736

Remeasurements of defined benefit plans

-2,943

-2,914

Total accumulated other comprehensive income

-11,936

-12,565

Share acquisition rights

51

50

Total net assets

58,416

62,871

Total liabilities and net assets

308,157

303,638

- 9 -

(2) Consolidated statements of profit and loss, and comprehensive income (Consolidated statement of profit and loss of the first three months of fiscal 2024)

(Unit: million yen)

Three months ended January

Three months ended January

31, 2023 (November 1, 2022-

31, 2024 (November 1, 2023-

January 31, 2023)

January 31, 2024)

Net sales

79,022

86,731

Cost of sales

57,419

63,718

Gross profit

21,602

23,013

Selling, general and administrative expenses

13,185

14,390

Operating profit

8,416

8,622

Non-operating income

Foreign exchange gains

-

227

Void ticket

42

42

Other

66

65

Total non-operating income

109

334

Non-operating expenses

Interest expenses

992

872

Foreign exchange losses

3,391

-

Expence incurred for evacuation of parking facilities

57

45

Other

103

64

Total non-operating expenses

4,544

982

Recurring profit

3,981

7,975

Extraordinary income

Gain on sale of investment securities

979

-

Total extraordinary income

979

-

Extraordinary losses

Loss on retirement of non-current assets

41

46

Other

0

1

Total extraordinary losses

41

47

Profit before income taxes

4,919

7,927

Income taxes - current

2,021

1,489

Income taxes - deferred

-250

1,351

Total income taxes

1,770

2,841

Profit

3,148

5,086

Profit attributable to owners of parent

3,148

5,086

- 10 -

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Park24 Co. Ltd. published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 07:16:03 UTC.