Note: This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Report [Japanese GAAP]
for the Three Months Ended June 30, 2022
July 27, 2022
Kyudenko Corporation
Listing: Tokyo Stock Exchange / Fukuoka Stock Exchange
1959
URL:
https://www.kyudenko.co.jp
Naofumi Sato, Executive Officer Representative President
Akira Shirouzu, Executive Officer,
Inquiries:
General Manager of Finance & Accounting Department
TEL:+81(0)-92-523-1239
Scheduled date to file quarterly securities report:
August 9, 2022
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing: None
Company name:Securities code:
Representative:(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the three months ended June 30, 2022
(From April 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended
June 30, 2022
Three months ended
June 30, 2021
(Note) Comprehensive income(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

69,089

(2.3)

2,918

(32.5)

3,799(24.7)

2,356(38.1)

70,690 (11.0)

4,323

11.9

5,045

8.4

3,808

22.1

Three months ended June 30, 2022:
Three months ended June 30, 2021:¥3,140 million (36.8%)¥2,295 million (-41.4%)

Profit per share
Three months ended June 30, 2022
Three months ended June 30, 2021

Diluted profit per share
Yen

Yen

33.26
53.75

―
―

(2) Consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022
(Reference) Equity

Net assets

Equity ratio

Millions of yen

Millions of yen%

359,674
378,396

240,783
241,194¥238,706 million¥239,134 million

66.4
63.2

As of June 30, 2022
As of March 31, 2022

2. Dividends
Annual dividends per share
1st quarter-end

2nd quarter-end 3rd quarter-end

Yen

Yen

Year ended March 31, 2022―
50.00
Year ending March 31, 2023―
Year ending March 31, 2023
50.00
(Forecast)(Note) Revisions to the forecast of cash dividends most recently announced: None

Year-end

Total

Yen

Yen

Yen

―

50.00

100.00―50.00

100.003. Forecast of consolidated financial results of operations for the fiscal year ending March 31, 2023
(From April 1, 2022 to March 31, 2023)(Percentages indicate change from corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating income
Ordinary income
Profit per shareowners of parent
Millions of yen%

Yen

Full year
460,000 22.2
34,5004.1
37,0000.5
25,000(Note) Revisions to the most recently announced consolidated earnings forecast: None

Millions of yen%

Millions of yen%

Millions of yen(4.6)

352.88―1―%

*Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specified subsidiaries resulting in the change in scope of consolidation)(2) Adoption of accounting treatment specific to the preparation of quarterly
consolidated financial statements: Yes
Note: For details, see “Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements” on p.7 of the attached materials.

(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common stock)(i) Total number of issued shares atThree months ended
the end of the period (including
June 30, 2022
treasury stock)(ii) Number of treasury stock at the Three months ended
June 30, 2022
end of the period(iii) Average number of shares
Three months ended
outstanding during the period(cumulative from the beginning of June 30, 2022
the fiscal year)

70,864,961 shares

19,475 shares

70,845,541 sharesYear ended
March 31, 2022
Year ended
March 31, 2022
Three months ended
June 30, 2021

70,864,961 shares

19,332 shares

70,845,931 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of consolidated earnings forecasts and other special matters
Forward-looking statements such as the earnings outlook included in these materials are based on information available
to the company at the time of their compilation and on certain assumptions that have been determined to be reasonable.
They do not constitute any commitment on the part of the company to achieve specific results. In addition, actual
performance and other results may diverge significantly from forecasts for a variety of reasons. For precautionary
information about the conditions that comprise the assumptions underlying earnings forecasts and about the use of
earnings forecasts, see “Explanation of consolidated earnings forecasts and other forward-looking information” on p.2 of
the attached materials.

―2―

Attached materials ― Contents

1. Qualitative information related to this quarterly financial report .................................................................................. 2(1) Explanation of operating results .......................................................................................................................... 2(2) Explanation of financial position .......................................................................................................................... 2(3) Explanation of consolidated earnings forecasts and other forward-looking information ...................................... 2
2. Quarterly consolidated financial statements and principal notes ................................................................................ 3(1) Quarterly consolidated balance sheet ................................................................................................................. 3(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income .. 5(3) Notes on the quarterly consolidated financial statements ................................................................................... 7(Notes on the premise of a going concern).......................................................................................................... 7(Notes on noteworthy changes in shareholders’ equity) ...................................................................................... 7(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) ... 7(Changes in accounting policies) ......................................................................................................................... 7
3. Reference ................................................................................................................................................................... 8
Overview of non-consolidated results ................................................................................................................. 8
4. Supplemental information ........................................................................................................................................... 9(1) Breakdown of consolidated results by business segment and customer ............................................................ 9(2) Breakdown of non-consolidated results by business segment and customer ................................................... 10―1―

1. Qualitative information related to this quarterly financial report(1) Explanation of operating results
Order volume during the three months ended June 30, 2022, rose 35.3% from the corresponding period of the previous
fiscal year to ¥129,709 million. Orders rose in both Kyushu and the Tokyo metropolitan region as we focused on ourgoal of securing orders for large, private-sector projects.
Net sales fell 2.3% from the corresponding period of the previous fiscal year to ¥69,089 million. As was the case lastyear, a comparatively large number of large projects remained in the initial stages of construction, and we had difficulty
making progress due to material price hikes and delays in procurement resulting from material and equipment shortages.
Operating income fell 32.5% from the corresponding period of the previous fiscal year to ¥2,918 million. Although we’re
working to realize cost improvements by taking steps to improve profits, factors including a decline in sales combined
to push down profits.
Ordinary income fell 24.7% to ¥3,799 million, while quarterly profit attributable to owners of parent fell 38.1% to ¥2,356
million.

(2) Explanation of financial position
Total assets fell ¥18,721 million (4.9%) from the end of the previous consolidated fiscal year to ¥359,674 million due tofactors including a decrease in completed construction contract accounts receivable.
Total liabilities fell ¥18,310 million (13.3%) from the end of the previous consolidated fiscal year to ¥118,890 million due
to factors including a decrease in construction contracts accounts payable.
Total net assets fell ¥411 million (0.2%) from the end of the previous consolidated fiscal year to ¥240,783 million as
payments of dividends and other factors offset posting of profit attributable to owners of parent.

(3) Explanation of consolidated earnings forecasts and other forward-looking information
For FY2022, we have positioned measures to cope with rising material and labor costs as the most important measures,and there has been no change to the earnings forecast announced along with year-end financial results on April 28,
2022.

―2―

2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheet(Millions of yen)Previous fiscal year
As of March 31, 2022

Current 1st Quarter
As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Securities
Costs of uncompleted construction contracts

39,021

39,916

136,676

105,432

987
5,592

987
11,720

Merchandise
Raw materials and supplies

1,107
22,7901,471
25,644

Other
Allowance for doubtful accounts

10,838
(34)

9,276
(34)

Total current assets

216,979

194,414

Buildings and structures, net
Land33,04829,67733,33029,930

Other, net

18,11818,746

Total property and equipment

80,84482,007

Fixed assets
Property and equipment

Intangible assets
Goodwill

755

1,401

Customer related assets
Other

1,739
1,873

1,684
1,894

Total intangible assets

4,368

4,980

Investments and other assets
Investment securities

61,17562,049Long-term loans receivable
Retirement benefit asset

313
6,124

110
7,009

Deferred tax assets
Other

4,288
5,279

4,386
5,710

Allowance for doubtful accounts

(979)

(995)

Total investments and other assets

76,20378,271

161,416

165,259

378,396359,674

Total fixed assets
Total assets―3―

(Millions of yen)Previous fiscal year
As of March 31, 2022

Current 1st Quarter
As of June 30, 2022

66,66939,42522,07828,973

Short-term borrowings
Income taxes payable

6,865
7,309

8,265
1,482

Advances received on uncompleted construction contracts
Provision for loss on construction contracts

11,463
187

16,964
124

Other

8,872

8,668

123,446

103,905

Long-term borrowings
Lease obligations

3,494
2,782

4,273
2,729

Provision for retirement benefits for directors (and other officers)
Retirement benefit liability

328
4,015

447
4,065

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts andotherElectronically recorded obligations

Total current liabilities
Long-term liabilities

Other

3,134

3,469

Total long-term liabilities

13,754

14,985

137,201

118,890

Share capital
Capital surplus

12,561
12,987

12,561
12,987Retained earnings
Treasury stock, at cost

214,655(9)

213,468(9)

Total shareholders’ equity

240,194

239,007

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,848
(218)

2,107
(90)

Foreign currency translation adjustment
Retirement benefit liability adjustments

208(2,898)459(2,777)

Total accumulated other comprehensive loss

(1,059)(300)

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

―4―

2,059

2,077

241,194

240,783

378,396359,674(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
First quarterly consolidated cumulative accounting period

Net sales
Construction contracts

Previous 1st Quarter(From April 1, 2021 toJune 30, 2021)(Millions of yen)
Current 1st Quarter(From April 1, 2022 toJune 30, 2022)

68,23365,661

Other

2,456

3,427

Total net sales

70,69069,089Construction contracts
Other

58,3791,843

57,2942,233

Total cost of sales

60,22259,528Gross profit
Construction contracts

9,854

8,366

612

1,194

Cost of sales

Other

10,467

9,561

Selling, general and administrative expenses

Total gross profit

6,144

6,643

Operating income

4,323

2,918

Interest income
Dividend income

17
452

16
455

Share of profit of entities accounted for using equity method
Gain on investments in partnerships

188
―

260
43

Rent income
Other

87
188

85
282

Total non-operating income

935

1,144

Non-operating income

Non-operating expenses
Interest expenses

90

90

Loss on investments in partnerships
Extra retirement payments

96
11

―
9

Transfer of allowance for doubtful accounts for affiliates
Settlement payments

―
―

17
87

Other

15

57

Total non-operating expenses

213

262

5,045

3,799

Ordinary income
Extraordinary income
Gain on sales of fixed assets22Gain on sales of investment securities

659―

Total extraordinary income

661

2

Extraordinary losses
Loss on disposal and sales of fixed assets

50

86

Loss on sales of investment securities
Loss on valuation of investment securities

0
61

―
51

111

137

Profit before income taxes

Total extraordinary losses

5,594

3,665

Income taxes

1,778

1,304

Profit

3,815

2,360

Profit attributable to non-controlling interests
Profit attributable to owners of parent

―5―

7

4

3,808

2,356

Quarterly consolidated statement of comprehensive income
First quarterly consolidated cumulative accounting period

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit liability adjustments
Share of other comprehensive income (loss) of entities accounted
for using equity method
Total other comprehensive income (loss)
Comprehensive income

Previous 1st Quarter(From April 1, 2021 toJune 30, 2021)
3,815(Millions of yen)
Current 1st Quarter(From April 1, 2022 toJune 30, 2022)
2,360(1,733)
184

258
272

180

121

(152)

127

(1,520)

780

2,295

3,140

2,271
23

3,115
25

(of which)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―6―(3) Notes on the quarterly consolidated financial statements(Notes on the premise of a going concern)
None(Notes on noteworthy changes in shareholders’ equity)
None(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses have been calculated by making a reasonable estimate of the effective tax rate after the applicationof tax effect accounting to pre-tax income for the consolidated fiscal year that includes the first consolidated
quarterly accounting period and then applying the effective tax rate used in that estimate to the pre-tax quarterly
income.
(Changes in accounting policies)
We have applied the Application Guidelines for Accounting Standards Related to Calculation of Market Value(Corporate Accounting Standard Application Guideline No. 31 of June 17, 2021; “Application Guidelines for Market
Value Standards”) since the start of the consolidated accounting period under review. In keeping with thetransitional treatment described in Paragraph 27-2 of the Application Guidelines for Market Value Standards, newaccounting policies set forth by the Application Guidelines for Market Value Standards will continue to be appliedin the future. Those changes have had no effect on our quarterly consolidated financial statements.

―7―

3. Reference
Overview of non-consolidated results(Yen amounts are rounded down to millions.)
Non-consolidated financial results for the three months ended June 30, 2022
(From April 1, 2022 to June 30, 2022)(1) Non-consolidated operating results (cumulative)
Net sales
Three months ended
June 30, 2022
Three months ended
June 30, 2021

Operating income

Millions of yen%

58,313(5.4)

61,652(11.5)

Profit per share
Three months ended
June 30, 2022
Three months ended
June 30, 2021

(Percentages indicate year-on-year changes.)
Millions of yen

Ordinary income%

Profit%Millions of yen%

2,219 (34.5)

2,786 (32.1)

1,849(43.3)

3,386

4,102

3,262

6.7

4.1

Millions of yen

1.6

Diluted profit
per share

Yen

Yen

26.10

―

46.04

―

(2) Non-consolidated financial position
Total assets
As of June 30, 2022
As of March 31, 2022

Net assets

Equity ratio

Millions of yen

Millions of yen%

318,592
336,952

197,768
199,17662.1
59.1

Note: This overview of non-consolidated operating results is provided for reference purposes only and as such does not fallwithin the scope of review of legally mandated disclosures.

―8―4. Supplemental information(1) Breakdown of consolidated results by business segment and customer(i) Net sales
Accounting periodBusiness segment

Three months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Power distribution line work

10,51414.9

10,333

14.9

(181)

(1.7)

Electrical work
HVAC and sanitaryfacility work
Total, facilities construction
business
Other businesses

36,83852.1

32,19546.6(4,642)(12.6)

20,88029.5

23,132

33.5

2,252

10.8

68,23396.5

65,66195.0(2,572)

(3.8)

Total

70,690

2,456

3.5

3,427

100

69,089

5.0
100

971

39.6

(1,600)(2.3)(ii) Construction orders
Accounting periodBusiness segment

Three months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Power distribution line work

11,078

11.6

10,838

8.4

(239)

(2.2)

Electrical work
HVAC and sanitaryfacility work
Total

49,84651.9

67,73052.2

17,88435.9

34,96736.5

51,14039.4

16,17346.3

33,81835.3

95,891

100

129,709100(iii) Construction contract balance at end of period
Accounting period

As of June 30, 2021

As of June 30, 2022

Increase(Decrease)
AmountRate (%)(millions of yen)Amount(millions of yen)

As percent of
total

Amount(millions of yen)

As percent of
totalPower distribution line work

1,938

0.5

1,753

0.4

(185)

(9.6)

Electrical work
HVAC and sanitaryfacility work
Total

298,592

70.4

320,543

68.0

21,951

7.4

29.1

149,400

31.6

25,65720.7

47,423

11.2

Business segment

123,742424,273100

471,697

100(iv) Construction sales by customer
Accounting period
CustomerThree months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Kyushu Electric Power Group*

10,49415.4

10,322

15.7

(172)

(1.6)

General customers

57,73884.6

55,33984.3(2,399)

(4.2)

Total

68,233(2,572)

(3.8)

100

65,661

100(v) Construction orders by customer
Accounting period
CustomerThree months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Kyushu Electric Power Group*

11,094General customers

84,797

Total

95,891Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

11.6
88.4
100

10,854
118,855
129,709

Increase(Decrease)
Amount(millions of yen)

Rate (%)

8.4

(239)

(2.2)

91.6

34,05740.2

33,81835.3100(vi) Full-year sales and construction order volume forecast for the fiscal year ending March 2023
Business segment
Power distribution line work
Electrical work
HVAC and sanitary facility work
Total, facilities construction business
Other businesses
Total

Sales (millions of yen)
48,000260,000
139,000
447,000
13,000460,000

Construction order volume (millions of yen)
48,000231,500
147,500
427,000*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., and Kyushu Electric Power Transmission and Distribution Co., Inc.

―9―

(2) Breakdown of non-consolidated results by business segment and customer(i) Net sales
Accounting periodBusiness segment

Three months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Power distribution line work

10,156

16.5

9,992

17.1

(164)

(1.6)

Electrical work
HVAC and sanitaryfacility work
Sub total

34,15555.4

28,49348.9(5,661)(16.6)

16,295

26.4

18,540

31.8

2,245

13.8

60,60798.3

57,027

97.8(3,580)(5.9)

Other businesses

1,044

1.7

1,286

2.2

241

23.2

Total

61,652(3,338)

(5.4)

100

58,313100(ii) Construction orders
Accounting periodBusiness segment

Three months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Power distribution line work

10,436

12.5

10,226

9.3

(209)

(2.0)

Electrical work
HVAC and sanitaryfacility work
Total

45,88054.8

61,19955.4

15,31833.4

27,35032.7

39,002

35.3

11,652

42.6

26,761

32.0

83,667100

110,428100(iii) Construction contract balance at end of period
Accounting periodBusiness segment

As of June 30, 2021
Amount(millions of yen)

As percent of
total

Amount(millions of yen)

As percent of
total

Increase(Decrease)
AmountRate (%)(millions of yen)

756

0.2

695

0.2

(61)

(8.1)

285,43173.7

308,230

71.4

22,7988.0

101,00226.1

122,81028.4

21,80721.6

44,545

11.5

Power distribution line work
Electrical work
HVAC and sanitaryfacility work
Total

As of June 30, 2022

387,190100

431,736100(iv) Construction sales by customer
Accounting period
CustomerThree months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Kyushu Electric Power Group*

10,215General customers

50,391

Total

60,607

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

16.9

10,10683.1

46,921

100

57,027

Increase(Decrease)
Amount(millions of yen)

Rate (%)

17.7

(109)

(1.1)

82.3

(3,470)(6.9)(3,580)

(5.9)

100

(v) Construction orders by customer
Accounting period
CustomerThree months ended
June 30, 2021
(April 2021 to June 2021)
AmountAs percent of(millions of yen)
total

Three months ended
June 30, 2022
(April 2022 to June 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Kyushu Electric Power Group*

10,655

12.7

10,477

9.5

(178)

(1.7)

General customers

73,011

87.3

99,951

90.5

26,939

36.9

Total

83,667

26,76132.0

100

110,428100*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., and Kyushu Electric Power Transmission and Distribution Co., Inc.

―10―