Consolidated Financial Results [Japanese GAAP]

for the First Quarter of the Fiscal Year Ending January 20, 2023

Takasho Co., Ltd.

May 25, 2022

Stock code:

7590

Stock Exchange Listing:

Tokyo

URL:

https://takasho.co.jp/en

Telephone:

+81-73-482-4128

Representative:

Nobuo Takaoka, President & CEO

For inquiries:

Atsushi Inoue, Corporate Officer, Corporate Management Headquarters Vice Director

Scheduled date to submit statutory quarterly financial report:

June 3, 2022

Scheduled date of starting payment of dividend:

N/A

Availability of supplementary explanatory material on quarterly results:

N/A

Quarterly results briefing:

N/A

This is a translation of the original release in Japanese. In the event of any discrepancy, the original release in Japanese shall prevail.

1. Consolidated Financial Results for the Three Months Ended April 20, 2022 (From January 21, 2022, to April 20, 2022)

*Figures are rounded down to the nearest million yen, except share and per share data *" %" indicates year-on-year changes from the previous corresponding quarter

(1) Consolidated Operating Results（Cumulative）

Net income

Net sales

Operating income

Ordinary income

attributable to owners

of the parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

FY2023 1Q

(Three months ended

5,671

1.7

424

9.7

764

68.8

525

88.6

April 20, 2022)

FY2022 1Q

(Three months ended

5,578

20.6

386

84.2

453

241.1

278

454.7

April 20, 2021)

(Note) Comprehensive income:

FY2023 1Q (Three months ended April 20, 2022): 775 million yen (39.2%),

FY2022 1Q (Three months ended April 20, 2021): 556 million yen ( - %)

Basic earnings

Diluted earnings

per share

per share

Yen

Yen

FY2023 1Q

(Three months ended

30.00

29.98

April 20, 2022)

FY2022 1Q

(Three months ended

19.12

19.09

April 20, 2021)

(2) Consolidated Financial Position

Total assets

Net assets

Shareholders' equity

ratio

As of the end of

Million yen

Million yen

%

FY2023 1Q

(As of April 20, 2022)

25,567

13,437

52.1

FY2022 4Q

(As of January 20,

23,665

13,064

54.8

2022)

(Ref.) Shareholders' equity amount:

FY2023 1Q (As of Apr. 20, 2022): thirteen,321 million yen

FY2022 4Q (As of Jan. 20, 2022): 12,957 million yen

2. Dividends

Annual cash dividends per share

1st quarter

2nd quarter

3rd quarter

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2022 4Q

－

0.00

－

23.00

23.00

ended Jan. 20, 2022

FY2023 1Q

－

ended Apr. 20, 2022

FY2022 4Q

ending Jan. 20, 2023

0.00

－

23.00

23.00

(forecast)

(Note) Revisions to the dividends forecast since the latest announcement: None

3. Forecast for the Fiscal Year Ending January 20, 2023 (From Jan. 21, 2022, to Jan. 20, 2023) * Figures are rounded down to the nearest million yen, except share and per share data

* " %" indicates year-on-year changes from the previous corresponding period

Net income

Basic

Operating

Ordinary

attributable to

Net sales

Earnings

Income

Income

owners of the

Per Share

parent company

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

FY2023 4Q

23,204

11.7

1,568

6.4

1,639

7.1

1,184

18.3

67.55

(full year)

(Notes) Revisions to the forecast since the latest announcement: None

  • Notes;

(1) Changes in Significant Subsidiaries during the Current Quarter

Changes in specified subsidiaries that caused a change in the scope of consolidation: None Newly included companies: None

Newly excluded companies: None

  1. Simplified Accounting Procedures and Specific Accounting Procedures: None
  2. Changes in Accounting Policies and Accounting Estimates
    1. Changes in accounting policies as required by newly promulgated account pronouncement: Yes
    2. Changes other than (i) above: None
    3. Changes in accounting estimates: None
    4. Restatement: None
  4. Number of Shares Outstanding (Ordinary Shares)

FY2023 1Q

FY2022 4Q

(As of Apr. 20, 2022)

(As of Jan.20, 2022)

Number of shares outstanding at end of period

17,590,114

17,590,114

(Treasury shares included)

Number of treasury shares at end of period

61,578

63,578

FY2023 1Q

FY2022 1Q

(From Jan.21, 2022,

(From Jan.21,2021,

to Apr. 20, 2022)

to Apr. 20, 2021)

Average number of shares during 1Q

17,527,692

14,578,329

  • This quarterly financial results report is out scope of the quarterly review by a certified public accountant nor audit firm.
  • Explanation on appropriate use of performance forecasts and other special notes.

The performance forecast described in this report are based on information that is available to the Group, as well as certain assumptions and estimates that are deemed to be reasonable, and we make no assurance that such descriptions prove to be correct. Actual figures may significantly differ due to various factors. For information regarding the forecast of consolidated financial results, due attention should be paid to "Explanation of Forward- Looking Statements" on page 3 of the attached documents.

Table of Contents

1. Status of the Group

(1) Business Overview and Results for the First Fiscal Quarter……………………………………….…

1

(2) Explanation on the Financial Position …………………………………………………………………

3

(3) Explanation on Future Performance Forecast …………………………………………………………

3

2. Quarterly Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheet …………………………………………………………………

4

(2) Quarterly Consolidated Statement of Income and Comprehensive Income …………………………

6

(3) Notes to Quarterly Consolidated Financial Statement

Note on Going Concern ………………………………………………………………………………

8

Note on Significant Change in Equity Capital ………………………………………………………

8

Changes in Accounting Policies ………………………………………………………………………

8

  1. 1. Status of the Group

  2. Business Overview and Results for the First Fiscal Quarter
    Business Overview
    During the first quarter of the current consolidated fiscal year, the prospects of Japanese economy continue to be highly uncertain and are unpredictable. Although the economy showed signs of slight recovery despite the tenacious adversity out of the novel coronavirus (hereafter referred to as "COVID-19") pandemic, other factors, such as fluctuations in financial and capital markets, further depreciation of the yen in the exchange market as well as the volatile overseas situation incurred by the Ukraine affairs, are rampant and has been deteriorating this uncertainty.
    As for the circumstances of the gardening and exterior industry, strong demands for the comfortable life in garden are creating new opportunities, with the rising number of new constructions of residence, noticeably, coupled with lifestyle and mindset shift toward spacy homes with gardens and, in some cases, relocation to the suburbs.
    In addition, the spread of COVID-19 pandemic changed people's lifestyle and mindset, which is global phenomena. More people than ever are staying home during the day and looking for stress-free garden lifestyle by enriching their outdoor space with various seasonal flowers, plants, and other natural elements for aesthetic and/or practical purposes. Travelling less or working from home, more people have been investing in their home, such as remodeling and renovations of their home, with the purpose of comfortable living with greenery, delightful and quality time with family, and healthy and well-beings, during leisure time in their own house.

In this business environment, for the purpose of enhancing our brand value and fueling future growth, our Group intensified sales promotion campaigns. Leveraging on our technology and accelerating digital transformation (hereafter referred to as "DX"), we broadcasted TV commercials in 15 prefectures in Japan, including major cities, such as Osaka and Aichi, which are linked with our web platform in order to increase customer touchpoint and engagement. Also, we participated in impactful exhibitions such as EXG2022 (Exterior Garden Exhibition) which mobilizes a lot of visitors.

Amid constant technological developments and corresponding changes in the way people purchase, at the "Takasho GLD-LAB.Soft-Factory Tottori," on the other hand, our Group reinforced our efforts in gardening simulation apps and garden space moving image software packages which equipped with the state-of-the-art technologies such as AR, VR, and MR.

Moving beyond pandemic, with continuous solid demands for gardening and exterior scaping across the globe, business performance of our group, domestic sales way surpassed the previous year's sales level, primarily driven by robust sales of living garden products for newly built houses and remodeling needs, which has been further expedited by people's new lifestyles and mindset. Overseas sales, on the other hand, decreased compared to the same quarter of previous fiscal year, negatively affected by logistics disruptions. Nonetheless, total net sales recorded strong figure, with strong industry market conditions and our efforts.

1st Quarter Fiscal 2023 Highlight (January 21, 2022, to April 20, 2022)Revenue: 5,671,002 thousand yen (1.7% increase compared to 20221Q) Operating income: 424,609 thousand yen (9.7% increase compared to 20221Q) Ordinary income: 764,979 thousand yen (68.8% increase compared to 20221Q)

Quarterly net income attributable to owners of the parent: 525,874 thousand yen (88.6% increase compared to 2022 1Q)

Sales Metrics by Business Segments<>segment>

As discussed above, fundamentals of our business and industry remain vibrant. Sales by pro-use- segment, our major business, achieved significant growth, recording a 11.6 % increase (approximately plus 310 million yen) compared to the same quarter of previous fiscal year.

To accelerate our successful growth, we promoted our new multidimensional business model; innovative synergy of online, virtual, and real, more precisely, DX-enabled proposals and sales closing through web-based showrooms (operating 24 hours a day) and VR parks, as well as through our original garden and exterior showrooms located throughout Japan where customers can experience and feel a wide selection of our products.

Also, our Group has our own factory in Japan, which enables flexible "mass customization" to each customer's order, and it has been promoting hybrid-style proposals, as mentioned above, that utilize content both online and real by comprehensively proposing "Facade Exterior & Living Garden" lifestyle through abundance of color

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Takasho Co. Ltd. published this content on 25 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2022 16:12:57 UTC.