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

Consolidated Financial Report [Japanese GAAP] for the Fiscal
Year Ended March 31, 2024
April 26, 2024
Company name: Kyudenko Corporation
Listing: Tokyo Stock Exchange / Fukuoka Stock Exchange
Securities code: 1959
URL: https://www.kyudenko.co.jp
Representative: Kazuyuki Ishibashi, Executive Officer Representative President
Akira Shirouzu, Senior Executive Officer,
Tel: +81(0)-92-523-1239
Inquiries:
General Manager of Finance & Accounting Department
Scheduled date to hold regularJune 26, 2024
Scheduled date to commence
June 4, 2024
shareholders’ meeting:dividend payments:
Scheduled date to file annual
June 27, 2024
securities report:
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
Yes(For institutional investors and analysts)(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the fiscal year ended March 31, 2024
(From April 1, 2023 to March 31, 2024)(1) Consolidated operating results (Percentages indicate change from corresponding period of the previous fiscal year.)Net sales

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

469,057

18.5

38,01618.5

42,362

19.5

28,017

6.3

395,783

5.1

32,083(3.2)

35,462(3.7)

26,3490.5

Year ended
March 31, 2024
Year ended
March 31, 2023
(Note) Comprehensive income

Year ended March
31, 2024¥36,768 million (27.3%)

Year ended March
31, 2023¥28,879 million (8.4%)

Profit per share

Diluted profit per
share

Ratio of profit toequityRatio of ordinary
income to total assets

Ratio of operating
income to sales

Yen

Yen

%

%

%

395.87

─

10.2

8.9

8.1

371.93

─

10.5

8.6

8.1

Year ended
March 31, 2024
Year ended
March 31, 2023

(Reference) Share of profit/loss of entities accounted forusing equity method

Year ended¥970 million
March 31, 2024

Year ended
March 31, 2023

¥732 million(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2024

503,284

291,12557.4

4,082.95

As of March 31, 2023

446,410

263,01758.4

3,681.85(Reference)

EquityYear ended March 31, 2024 ¥288,781 million

Year ended March 31, 2023

¥260,841 million(3) Consolidated cash flows
Cash flows fromoperating activities
Year ended
March 31, 2024
Year ended
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

43,969(2,314)(11,032)

94,58817,386(3,113)

11,61563,851

2. Dividends
Annual dividends per share

Year ended
March 31, 2023
Year ended
March 31, 2024
Year ending March
31, 2025 (Forecast)

1st quarter- 2nd quarter- 3rd quarterYear-end
end
end
end
Yen
Yen
Yen
Yen

Ratio of
Dividend ratio dividends to net(consolidated)assets(consolidated)

Total
dividends

Total
Yen

Millions of yen

%

%

─

50.00

─

60.00 110.00

7,795

29.6

3.1

─

55.00

─

65.00 120.00

8,503

30.3

3.1

─

65.00

─

65.00 130.00

Note 1: Fiscal year ended March 31, 2024
2: Fiscal year ending March 31, 2025 (forecast)

31.7

Breakdown of year-end dividend
Breakdown of interim dividend
Breakdown of year-end dividend

Normal dividend: ¥65.00
Normal dividend: ¥65.00
Normal dividend: ¥65.00

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025
(From April 1, 2024 to March 31, 2025)(Percentages indicate change from corresponding period of the previous fiscal year.)
Profit attributable toOperating income
Ordinary income
Profit per shareowners of parent

Net sales
Millions of yen

Full year

500,000% Millions of yen

6.6

39,500%Millions of yen%

Millions of yen

%

Yen

3.9

43,0001.5

29,0003.5

410.02*Notes(1) Changes in important subsidiaries during the fiscal year under review (changes in specified
subsidiaries resulting in changes in the scope of consolidation): NoneNote: For details see “Important information used to compile consolidated financial statements” on p.15 of the attachedmaterials.

(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to: Noneaccounting standards and other regulations:: None(ii) Changes in accounting policies due to other reasons:(iii) Changes in accounting estimates:: None(iv) Restatement:: None(3) Number of issued shares (common stock)(i) Total number of issued shares at the endof the period (including treasury stock)(ii) Number of treasury stock at the end of theperiod(iii) Average number of shares outstanding
during the period

Year ended
March 31, 2024

70,864,961sharesYear ended
March 31, 2023

70,864,961 sharesYear ended
March 31, 2024

136,282sharesYear ended
March 31, 2023

19,743 sharesYear ended
March 31, 2024

70,773,609sharesYear ended
March 31, 2023

70,845,420 shares(Note) Treasury stock figures include company shares remaining in the trust that administers the stock compensation
plan for officers (as of March 31, 2024, 116,000 shares).

(Reference) Overview of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(Percentages indicate change from corresponding period of the previous fiscal year.)(1) Non-consolidated operating results
Net salesYear ended March 31, 2024
Year ended March 31, 2023

Operating income

Profit%Millions of yen%

Millions of yen%

Millions of yen%

404,832
333,00721.6
3.2

30,12525,30519.0(4.6)

33,75828,12620.0(2.4)

21,76621,806(0.2)
5.4

Profit per share
Year ended March 31, 2024
Year ended March 31, 2023

Ordinary income

Millions of yen

Diluted profit per share

Yen

Yen

307.46307.73──(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

Equity ratio

Net assets per share%

Year ended March 31, 2024
447,058
232,817
52.1
Year ended March 31, 2023
395,807
214,457
54.2(Reference) Equity Year ended March 31, 2024 ¥232,817 million
Year ended March 31, 2023

*
*

Yen

3,290.83
3,026.33¥214,457 million

Financial results reports are exempt from audits 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 “Overview of operating results” on p.2 of the attached materials.

Attached materials ― Contents
1. Overview of operating results ............................................................................................................................... 2(1) Overview of operating results for the current fiscal year .................................................................................. 2(2) Overview of financial position during the current fiscal year ............................................................................ 3(3) Overview of cash flows during the current fiscal year ...................................................................................... 3(4) Outlook for results during the next fiscal year .................................................................................................. 4(5) Basic policy on profit allocation and dividends for the current and upcoming fiscal years ............................... 5
2. Basic approach to selection of accounting standards ........................................................................................... 5
3. Consolidated financial statements and principal notes ......................................................................................... 6(1) Consolidated balance sheet ............................................................................................................................ 6(2) Consolidated statement of income and consolidated statement of comprehensive income ............................ 8(3) Statement of changes in consolidated shareholders’ equity, etc. ................................................................... 11(4) Consolidated cash flow statement ................................................................................................................. 13(5) Notes on the consolidated financial statements ............................................................................................. 15(Notes on the premise of a going concern)...................................................................................................... 15(Important information used to compile consolidated financial statements)..................................................... 15(Change in labeling method) ........................................................................................................................... 15(Business segment information) ...................................................................................................................... 15(Per-share data) .............................................................................................................................................. 17(Important subsequent events) ........................................................................................................................ 17
4. Other................................................................................................................................................................... 18
Reference: Production, orders, and sales status ................................................................................................ 18―1―

1. Overview of operating results(1) Overview of operating results for the current fiscal year
During the current consolidated fiscal year, the construction industry saw continued robust demand supported byvigorous large-scale capital investment, including private-sector urban redevelopment projects and semiconductor plant
construction. At the same time, the sector is being affected by rising prices, particularly for labor, prompting concerns
about a shortage of construction workers, for example due to the need to put in place a labor environment that complies
with limits on overtime work that are scheduled to take effect in FY2024.
The Kyudenko Group is no exception, and we have been called upon to take difficult steps to address thesechallenges at a time when we have more uncompleted construction contracts than at any other time in our history.
These steps include construction operations, where we’re working to establish optimal personnel structures and reduce
overtime work, as well as order booking, where we’re moving to ensure we can field the necessary level of construction
capability while shifting cost increases onto project pricing as they manifest themselves.
Based on this environment, the Group recognizes the need to improve productivity by radically reconsidering theprocedures, approaches, and mechanisms upon which we’ve relied to date and mounting a group-wide effort to reform
workstyles. To that end, we’ve identified “improving productivity to prepare for a new era” as the theme for our basic
management policy for FY2023, the fourth year of our Mid-term Management Plan, and we have been accelerating
workstyle reforms and leveraging them to realize the Group’s growth.
This approach to our businesses yielded the following results for the current fiscal year:[Consolidated operating results]
Construction orders¥440,864 million(up 0.1% from the previous year)

Sales¥469,057 million(up 18.5% from the previous year)

Operating income¥38,016 million(up 18.5% from the previous year)

Ordinary income¥42,362 million(up 19.5% from the previous year)

Profit attributable to owners of parent¥28,017 million(up 6.3% from the previous year)

Net sales rose for both the facilities construction business and other businesses, with the segment total rising ¥73,273
million from the corresponding period of the previous fiscal year to ¥469,057 million.
Operating income rose ¥5,933 million from the corresponding period of the previous fiscal year to ¥38,016 million,
while ordinary income rose ¥6,899 million to ¥42,362 million.
Profit attributable to owners of parent rose 1,667 million yen from the previous fiscal year to 28,017 million yen despite
posting of reserves related to financial support to non-equity-method companies and a decrease in gain on sales ofinvestment securities.
Individual business segments performed as follows:(Facilities construction business)
Construction orders rose ¥357 million (0.1%) from the previous consolidated fiscal year to ¥440,864 million as we
made aggressive personnel adjustments through collaboration between sales and engineering teams and pursued
carefully planned order activities founded on optimal personnel assignments based on what we saw as a need to takesteps to accommodate robust demand backed up by vigorous capital investment, including in urban redevelopment
projects, semiconductor plants, logistics facilities, and datacenters.
Net sales rose ¥72,268 million (19.0%) to ¥452,623 million against the backdrop of record uncompleted construction
contracts and robust order receipts. With regard to the Ukujima solar project, we are managing construction progressin an appropriate manner and working earnestly to secure the understanding of interested parties, including the fisherycooperative, while seeking feedback and guidance from local government and other stakeholders, with a focus on
Ukujima Mirai Energy LLC, which is leading the project.
Segment profit (operating income) rose ¥5,798 million (20.1%) from the previous consolidated fiscal year to ¥34,707
million thanks to increased net sales.

―2―(Other)
Net sales rose ¥1,005 million (6.5%) from the previous consolidated fiscal year to ¥16,433 million as a result offactors including growth in real-estate sales businesses.
Segment profit (operating income) rose ¥224 million (7.4%) from the previous consolidated fiscal year to ¥3,240
million as a result of growth in net sales.

(2) Overview of financial position during the current fiscal year
Overview of assets, liabilities, and net assets(Assets)
Current assets rose ¥46,197 million from the end of the previous consolidated fiscal year to ¥324,418 million as aresult of factors including increases in cash and deposits.
Fixed assets rose ¥10,675 million from the end of the previous consolidated fiscal year to ¥178,865 million as aresult of factors including an increase in the market value evaluation of investment securities.
As a result, total assets rose ¥56,873 million from the end of the previous consolidated fiscal year to ¥503,284 million.
(Liabilities)
Current liabilities rose ¥53,836 million from the end of the previous consolidated fiscal year to ¥195,527 million asa result of factors including a transfer of the current portion of long-term borrowings from long-term liabilities and anincrease in electronically recorded obligations.
Long-term liabilities fell ¥25,071 million from the end of the previous consolidated fiscal year to ¥16,630 million asa decrease due to the transfer of long-term borrowings offset the posting of reserves predicated on the assumptionof financial support to non-equity-method companies.
As a result, total liabilities rose ¥28,764 million from the end of the previous consolidated fiscal year to ¥212,158 million.
(Net assets)
Total net assets rose ¥28,108 million from the end of the previous consolidated fiscal year to ¥291,125 million as aresult of factors including the posting of profit attributable to owners of parent.

(3) Overview of cash flows during the current fiscal year
Cash and cash equivalents (“funds”) during the current consolidated fiscal year rose ¥30,736 million from the end of
the previous consolidated fiscal year to ¥94,588 million.
(Cash flows from operating activities)
Funds gained from operating activities totaled ¥43,969 million (an increase in income of ¥26,583 million from theprevious consolidated fiscal year).
This figure primarily reflects the fact that posting of profit before income taxes and an increase in trade payables
exceeded increases in trade receivables and inventory assets and payment of consumption tax.
(Cash flows from investing activities)
Funds expended in connection with investing activities totaled ¥2,314 million (a decrease in expenditures of ¥798
million from the previous consolidated fiscal year).
This figure primarily reflects the fact that expenditures on the acquisition of investment securities and property andequipment exceeded income from the sale of investment securities.
(Cash flows from financing activities)
Funds used in financing activities totaled ¥11,032 million (an increase in expenditures of ¥22,647 million from theprevious consolidated fiscal year).
This change was primarily the result of dividend payments and expenditures made to repay long-term borrowings.

―3―

(4) Outlook for results during the next fiscal year
Although robust demand is expected continue in the future in the construction industry against the backdrop of urban
redevelopment projects and corporate capital investment, concerns remain about construction labor shortages ascompanies comply with limits on overtime work, rising prices, and, in particular, soaring labor costs. At a time when the
Kyudenko Group has more uncompleted construction contracts than at any other time in its history, it will be importantto secure construction workers and establish optimal personnel structures that don’t generate overtime, and we seethese as the greatest issues we face.
In addition to working to finish three reforms and ongoing initiatives set forth in the Mid-term Management Plan, which
ends next year, we will need to adopt sustainability management, including human capital management, as amanagement strategy and adapt to an environment that is changing at unprecedented speed.
With regard to the basic management theme for FY2024, the final year of the plan, we will continue to use the themeof “improving productivity to prepare for a new era,” the theme from FY2023, as we work to realize the Group’s growthby steadily implementing initiatives to resolve the key issues outlined in the Mid-term Management Plan while changing
the name of our top-priority issue from “accelerating workstyle reforms” to “realizing workstyle reforms focusing on
motivation and engagement.”
The Group uses sales, ordinary income, ordinary income ratio, and return on invested capital (ROIC) as objective
indicators (KPIs) for evaluating the Group’s efforts to achieve its management goals. When the Mid-term Management
Plan was formulated, it specified the following targets for FY2024, its final year: sales of ¥500 billion, ordinary incomeof ¥50 billion, an ordinary income ratio of at least 10.0%, and ROIC of at least 10.0%. We established new initiatives toaddress major changes in the business environment during the period covered by the Mid-term Management Plan,
including the COVID-19 pandemic, increasingly serious labor shortage, the abrupt weakening of the yen, and risingmaterial costs, and leveraged all the Group's resources to achieve the specified KPIs under the Mid-term Management
Plan. However, the performance outlook for the upcoming fiscal year, which is the final year of the Mid-termManagement Plan, specifies sales of ¥500 billion and ordinary income of ¥43 billion in response to the postponementof a large wind power project due to permitting hold-ups, delays in the start of full-scale work on the Ukujima solar
project, and unforeseen increase in labor costs and other expenses. While efforts to expand our business operations
so that we can achieve these targets are showing results, we will continue to make a group-wide effort to improve profit
and profitability, both of which are rising, based on challenges including recent inflation.
These figures are based on the outlook for our performance during the upcoming fiscal year based on foreseeable
circumstances as of the date the consolidated financial report was submitted. As such, they do not guarantee that the
expected level of performance will be achieved.
As a result of the above initiatives, we expect the following operating results for the upcoming fiscal year (ending
March 31, 2025):(Consolidated financial results)
Construction orders¥452.0 billion(up 2.5% from the current fiscal year)

Sales¥500.0 billion(up 6.6% from the current fiscal year)

Operating income¥39.5 billion(up 3.9% from the current fiscal year)

Ordinary income¥43.0 billion(up 1.5% from the current fiscal year)

Profit attributable to owners of parent¥29.0 billion(up 3.5% from the current fiscal year)―4―(5) Basic policy on profit allocation and dividends for the current and upcoming fiscal years
With regard to the allocation of profits, we strive to maintain appropriate financial structures based on awareness ofcapital costs and return profits to shareholders while setting aside sufficient internal reserves to strengthen ourmanagement base and expand our businesses in order to enhance performance.
With regard to dividends, we make comprehensive determinations based on such factors as the businessenvironment, operating results, and financial position and endeavor to meet the expectations of shareholders by offering
stable dividends on an ongoing basis using a consolidated payout ratio of 25% as a guideline.
In accordance with this basic policy, a year-end dividend of ¥65 per share, representing an increase of ¥10 from ¥55
per share, will be paid from the standpoint of the Group’s performance this year and our commitment to return profits toshareholders. Combined with the previous interim dividend of ¥55, the year-end dividend will result in an annual dividendof ¥120 per share.
We’re planning an annual dividend of ¥130 per share (including an interim dividend of ¥65) for the upcoming fiscal
year (ending March 2025) based on the current earnings forecast and other data.

2. Basic approach to selection of accounting standards
Most of the Group’s business is conducted in Japan, and most of the interested parties, including creditors andbusiness partners, operate in Japan. As a result, we apply Japanese accounting standards so that consolidated financial
statements from multiple fiscal years and for multiple businesses can be compared.
Our policy going forward will be to examine potential future use of international accounting standards as appropriate
based on considerations such as the domestic and international situation and adoption of international accounting
standards by other companies in our industry.

―5―

3. Consolidated financial statements and principal notes(1) Consolidated balance sheet(Millions of yen)Previous fiscal year
As of March 31, 2023

Current fiscal year
As of March 31, 2024

67,53498,548148,902

164,887

7,428
1,203

9,949
614

31,364
21,79033,35917,059AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other
Costs of uncompleted construction contracts
Merchandise
Raw materials and supplies
Other
Allowance for doubtful accounts

(3)

(0)

278,220

324,418

76,16875,777

Machinery, vehicles, tools, furniture and fixtures
Land

45,607
29,91445,30830,207

Lease assets
Construction in process

8,087
382

8,084
864

Total cumulative depreciation(78,415)(81,574)

Total property and equipment

81,74578,667

Goodwill
Customer-related assets

821
1,518

507
1,298

Other

1,938

2,584

Total current assets
Fixed assets
Property and equipment
Buildings and structures

Intangible assets

Total intangible assets

4,278

4,390

Investments and other assets
Investment securities

64,49473,645Long-term loans receivable
Retirement benefit assets

89
10,445

14
14,829Deferred tax assets
Other

2,468
5,652

2,129
6,193

Allowance for doubtful accounts(985)(1,004)

Total investments and other assets

82,16695,808168,189

178,865

446,410503,284

Total fixed assets
Total assets―6―

(Millions of yen)Previous fiscal year
As of March 31, 2023

Current fiscal year
As of March 31, 2024

69,832

71,61728,76247,881

Short-term borrowings
Income taxes payable

2,461
5,984

28,93010,712

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

26,55021

21,553
262

Other

8,077

14,569141,691

195,527

Long-term borrowings
Lease obligations

30,604
3,341

3,025
3,380

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

327
3,980

309
3,774

―

87
2,260

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

Total current liabilities
Long-term liabilities

Provision for share-based payments
Provision for loss on business of subsidiaries and associates
Other

―
3,448

Total long-term liabilities

41,702

16,630183,393

212,158

Share capital
Capital surplus

12,561
13,046

12,561
13,069Retained earnings
Treasury stock, at cost

233,918(10)

253,824(493)

Total shareholders’ equity

259,516

278,962

Total liabilities

3,792

Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

2,428

7,810

Deferred gains or losses on hedges
Foreign currency translation adjustment

(16)
688

61
890

Retirement benefit liability adjustments(1,774)

1,056

Total accumulated other comprehensive loss

1,325

9,818

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

―7―

2,175

2,344

263,017

291,125

446,410503,284

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income

Net sales
Construction contracts

Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)(Millions of yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)

380,355

452,623

Other

15,42816,433

Total net sales

395,783

469,057

Construction contracts
Other

326,874
11,019392,462
11,961

Total cost of sales

337,894

404,424

Gross profit
Construction contracts

Cost of sales

53,48060,160

Other

4,408

4,472

Total gross profit

57,88964,632

Selling, general and administrative expenses

25,806

26,615

Operating income

32,08338,016

63
716

211
1,441

732
1,427

970
1,392

322
867

318
745

4,130

5,080

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Gain on investments in partnerships
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses

424

466

Extra retirement payments
Transfer of allowance for doubtful accounts from affiliates

58
17

89
14

Provision of allowance for doubtful accounts
Settlement payments

―
87

103

Other

162

―
61

Total non-operating expenses

750

734

35,46242,362

Ordinary income―8―Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)
Extraordinary income
Gain on sales of fixed assets(Millions of yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)

310

39

Gain on sales of investment securities

4,247

2,667

Total extraordinary income

4,558

2,706

223

371
0

Extraordinary losses
Loss on disposal and sales of fixed assets
Loss on sales of investment securities

―
602
326

Loss on valuation of investment securities
Impairment losses
Loss on liquidation of a subsidiary
Provision for loss on business of subsidiaries and associates

74

422
856

―

―
2,260

1,227

3,910

Profit before income taxes

38,793

41,158

Corporate, residence, and business taxes

11,157

15,713

Income taxes - deferred

1,198(2,796)

Total income taxes

12,355

12,917

Profit26,43728,240Total extraordinary losses

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

―9―

88

223

26,34928,017

Consolidated statement of comprehensive income

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 fiscal year
(From April 1, 2022 toMarch 31, 2023)
26,437(Millions of yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)
28,240

577
535

5,340
234

1,124

2,831

204

119

2,441

8,527

28,87936,76828,735
144

36,510257(of which)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―10―(3) Statement of changes in consolidated shareholders’ equity, etc.
Previous fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Retainedearnings

12,561

12,987

214,655

Balance at start of fiscal year under review

Treasury Total shareholders’
stock, at costequity(9)240,194

Change during fiscal year under review
Dividend of surplus(7,086)(7,086)

Profit attributable to owners of parent

26,34926,349Purchase of treasury stock

(1)

(1)

Changes in the scope of consolidation―

Change in equity due to acquisition of consolidated
subsidiaries’ treasury stock

00Change in equity due to sale of shares of consolidated
subsidiaries’ shares

59

59

Change in items other than shareholders’ equity during
fiscal year under review (net)―Total change during fiscal year under review
Balance at end of fiscal year under review―

59

19,263(1)

19,321

12,561

13,046

233,918(10)

259,516

Accumulated other comprehensive income

Balance at start of fiscal year under review

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

1,848

(218)

NonTotal
Foreign Retirement
accumulated controllingcurrency
benefitinterests
othertranslation
liability
comprehensive
adjustment adjustments
loss
208

(2,898)(1,059)2,059

Total net
assets

241,194

Change during fiscal year under review
Dividend of surplus(7,086)

Profit attributable to owners of parent

26,349Purchase of treasury stock(1)

Changes in the scope of consolidation―

Change in equity due to acquisition of
consolidated subsidiaries’ treasury stock0

Change in equity due to sale of shares of
consolidated subsidiaries’ shares

59

Change in items other than shareholders’equity during fiscal year under review (net)

579

201

480

1,124

2,385

115

2,500

Total change during fiscal year under review

579

201

480

1,124

2,385

115

21,822

Balance at end of fiscal year under review

2,428

(16)

688

(1,774)

1,325

2,175

263,017―11―

Current fiscal year (from April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at start of fiscal year under review

12,561

Capital surplus

Retainedearnings

13,046

233,918

Treasury Total shareholders’
stock, at costequity(10)259,516

Change during fiscal year under review
Dividend of surplus(8,149)(8,149)Profit attributable to owners of parent

28,01728,017Purchase of treasury stock(482)

Changes in the scope of consolidation

(482)

37

Change in equity due to acquisition of consolidated
subsidiaries’ treasury stock

37

23

23

Change in equity due to sale of shares of consolidated
subsidiaries’ shares―

Change in items other than shareholders’ equity during
fiscal year under review (net)―Total change during fiscal year under review
Balance at end of fiscal year under review―

23

19,905(482)

19,446

12,561

13,069253,824(493)

278,962

Accumulated other comprehensive income

Balance at start of fiscal year under review

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

2,428

(16)

NonTotal
Foreign
Retirement
accumulated controllingcurrency
benefitinterests
othertranslation
liability
comprehensive
adjustment adjustments
loss
688

(1,774)

1,325

2,175

Total net
assets263,017

Change during fiscal year under review
Dividend of surplus(8,149)Profit attributable to owners of parent

28,017Purchase of treasury stock(482)

Changes in the scope of consolidation

37

Change in equity due to acquisition of
consolidated subsidiaries’ treasury stock

23

Change in equity due to sale of shares of
consolidated subsidiaries’ shares―

Change in items other than shareholders’equity during fiscal year under review (net)

5,381

78

201

2,831

8,493

168

8,662

Total change during fiscal year under review

5,381

78

201

2,831

8,493

168

28,108

Balance at end of fiscal year under review

7,810

61

890

1,056

9,818

2,344

291,125―12―

(4) Consolidated cash flow statement

Cash flows from operating activities
Profit before income taxes
Depreciation expenses
Impairment losses
Increase/decrease in allowance for doubtful accounts (with figuresin parentheses indicating decreases)
Increase/decrease in retirement benefit assets (with figures inparentheses indicating increases)
Increase/decrease in retirement benefit liabilities and provision for
retirement benefits for directors (and other officers) (with figures inparentheses indicating decreases)
Increase/decrease in provision for loss on construction contracts(with figures in parentheses indicating decreases)
Increase/decrease in provision for loss on business of subsidiaries
and associates
Gain/loss on investments in partnerships (with figures inparentheses indicating gains)
Interest income and dividend income

Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)(Millions of yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)

38,793

41,158

6,018
326

6,016
856

(24)

15

(3,064)

(536)

1,544

(330)

(170)

240

―

2,260

(1,427)(1,392)(780)(1,653)

424

466

(168)

(89)

(414)

(675)

(310)

(39)

208

365

602

422

Interest expenses
Foreign exchange gain or loss (with figures in parentheses
indicating gains)Share of profit/loss of entities accounted for using equity method(with figures in parentheses indicating profit)
Gain/loss on sale of property and equipment (with figures inparentheses indicating gains)
Loss on disposal of property and equipment
Gain/loss on valuation of securities and investment securities (withfigures in parentheses indicating gains)
Gain/loss on sale of securities and investment securities (withfigures in parentheses indicating gains)
Increase/decrease in accounts receivable (with figures inparentheses indicating increases)
Increase/decrease in costs of uncompleted construction contracts(with figures in parentheses indicating increases)
Increase/decrease in inventory assets (with figures in parentheses
indicating increases)
Increase/decrease in accounts payable (with figures inparentheses indicating decreases)
Increase/decrease in advances received on uncompleted
construction contracts (with figures in parentheses indicating
decreases)
Increase/decrease in long-term accounts payable (with figures inparentheses indicating decreases)
Increase/decrease in unpaid or uncollected consumption tax(4,247)(2,667)(11,791)(15,594)(1,689)(2,476)(8,545)(1,403)

9,552

20,767

15,076(5,251)87(35)(4,090)

10,223Other(6,386)

3,264

Sub total

29,52253,913763

1,626Interest paid
Income taxes paid

(424)
(12,474)(466)(11,103)

Cash flows from operating activities

17,38643,969Interest income and dividend income received―13―

Cash flows from investing activities
Expenditures on deposits of time deposits

Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)(Millions of yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)(3,738)(7,084)

Income from redemption of time deposits
Expenditures on purchases of property and equipment

1,503(2,940)7,038(1,836)

Income from sale of property and equipment
Expenditures on disposal of property and equipment

445
(126)

289
(182)

(3,415)
5,754(2,105)
3,354

(97)

(361)

(34)
366
(831)

―
35
(1,462)(3,113)(2,314)(18)

122

27,000(7,057)―(1,231)(2)(7,087)(482)(8,148)

(2)
(22)

(4)
(22)

Expenditures on purchases of investment securities
Income from sale of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Expenditures on long-term loans
Income from collection of long-term loans
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase/decrease in short-term borrowings (with figuresin parentheses indicating decreases)
Income from long-term borrowings
Expenditures on repayment of long-term loans
Expenditures on purchases of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Expenditures on refunds to non-controlling interests
Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation
Other

60

―

(1,253)(1,265)

Cash flows from financing activities

11,615(11,032)

Translation differences related to cash and cash equivalents
Increase/decrease in cash and cash equivalents (with figures inparentheses indicating decreases)
Cash and cash equivalents at start of period

171

113

26,06030,736

37,791

63,851

Cash and cash equivalents at end of period

63,851

94,588―14―

(5) Notes on the consolidated financial statements(Notes on the premise of a going concern)
None(Important information used to compile consolidated financial statements)
With the exception of the following, disclosures have been omitted due to the absence of important changes to theinformation provided in the most recent annual securities report (submitted on June 29, 2023).
(Changes in the scope of consolidation)
We acquired shares of ITO PIPE FITTING Co., Ltd., in Nagasaki Prefecture to make the company a consolidated
subsidiary.
Kirishima Biomass Fuel Co., Ltd., which was previously a consolidated subsidiary, was absorbed by Kirishima
Biomass Power Co., Ltd., in a merger. Similarly, the following companies, which had been consolidated subsidiaries,
were absorbed by CHUORIKA KOUGYO Co., Ltd., in a merger: CHUO SHOBO KIKO Co., Ltd.; TOKYO CHUORIKA
KOUGYO Co., Ltd.; TOKYO－NISHI CHUORIKA KOUGYO Co., Ltd.; SAITAMA CHUORIKA KOUGYO Co., Ltd.;TOCHIGI CHUORIKA KOUGYO Co., Ltd.; CHUORIKA KOUGYO (SENDAI) Co., Ltd.; MIE CHUORIKA KOUGYO Co.,
Ltd.; and HAMAMATSU CHUORIKA KOUGYO Co., Ltd. Furthermore, Shibushi mega solar power generation Co., Ltd.,
which was a consolidated subsidiary, was absorbed by Kagoshima Solar Farm Co., Ltd., in a merger.
These results brought the number of subsidiaries to 51.
(Change in labeling method)(Consolidated statement of income)The “Payment fees” category, listed under “Non-operating expenses” for the previous consolidated fiscal year, will be
included in the “Other” category starting this consolidated fiscal year due to its diminished magnitude. The consolidated
financial statement for the previous consolidated fiscal year has been reclassified to apply this change in presentation.
As a result, the “Payment fees” and “Other” category totals of ¥99 million and ¥63 million, respectively, for “Nonoperating expenses” on the previous consolidated fiscal year’s consolidated statement of income have been reclassified
to yield an ‘Other” category total of ¥162 million.
(Business segment information)
1. Overview of reporting segments
It is possible to obtain discrete financial information for the reporting segments that make up the Group, which are
subject to regular study by the Board of Directors as it makes decisions concerning the allocation of management
resources and assesses performance.
The Head Office formulates medium- and long-term business strategies for the Group and carries out businessactivities involving facilities construction in cooperation with consolidated group companies, with a focus on local
worksites.
Business activities in other industries, including the sale of construction-related materials and equipment, real-estate
sales, and the generation of renewable energy, are carried out by consolidated group companies as independent
business units.
Consequently, the Group, which consists of several business-specific segments, aggregates multiple businesssegments that are generally similar in terms of elements such as economic characteristics and services and treats themas the “facilities construction business” reporting segment so that it can provide appropriate information, for example
descriptions of associated business activities.
The facilities construction business encompasses primarily design and installation for electrical work such as power
distribution line work, indoor wiring work, and telecommunications work as well as HVAC facility work such as spaceconditioning, cooling and heating, water supply and wastewater sanitary equipment, and water treatment work.
2. Methods used to calculate sales, profit, assets, liabilities, and other amounts for each business segment
The accounting treatments used for reported business segments are generally the same as those described in“Important information used to compile consolidated financial statements.”
Reportable segment income is based on operating income. Inter-segment revenues and transfers are based onprevailing market prices.

―15―

3. Information related to sales, profit, assets, liabilities, and other amounts for each reporting segment
Previous fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)
Reporting segment
Facilities construction business

Other(Note 1)

Sales to outside customers

380,355

15,428395,783―

395,783

Inter-segment internal sales
and transfers

1,265

5,074

6,340

(6,340)―

Total

381,620

20,503402,123(6,340)395,783

28,9083,015

31,924

158

32,083

Depreciation expenses

3,935

2,188

6,123

(104)

6,018

Amortization of goodwill

215

121

337

―

337

Total

Adjustment(Note 3)Total

Net sales

Segment profit
Other items

Depreciation of customer220
―
220
―
220
related assets
Note 1: The “Other” category comprises a business segment that is not included in any other reporting segment andconsists of businesses such as the following: sales of construction-related materials and equipment, real-estate
sales, generation of renewable energy, temporary staffing, software development, environmental analysis andmeasurement, health care, golf course operation, business hotel operation, and retail facility planning and operation.
2. Segment assets and segment liabilities are not listed because assets and liabilities are not allocated to thebusiness segment in question.
3. The ¥158 million adjustment to segment profit serves to eliminate inter-segment transactions.
4. Segment profit is derived from operating income as listed on the consolidated statement of income and adjustments.
5. A goodwill impairment loss of ¥326 million was posted for the Other segment.
Current fiscal year (from April 1, 2023 to March 31, 2024)(Millions of yen)
Reporting segment
Facilities construction business

Other(Note 1)

Total

Adjustment(Note 3)452,623

16,433

469,057―

469,057

930

5,478

6,408

(6,408)―453,553

21,912475,465(6,408)469,057

34,7073,240

37,947

69

38,016

Depreciation expenses

3,871

2,026

5,898

(102)

5,795

Amortization of goodwill

242

28

270

―

270

Total

Net sales
Sales to outside customers
Inter-segment internal sales andtransfers
Total
Segment profit
Other items

Depreciation of customer220
―
220
―
220
related assets
Note 1: The “Other” category comprises a business segment that is not included in any other reporting segment andconsists of businesses such as the following: sales of construction-related materials and equipment, real-estate
sales, generation of renewable energy, temporary staffing, software development, environmental analysis andmeasurement, health care, golf course operation, business hotel operation, and retail facility planning and operation.
2. Segment assets and segment liabilities are not listed because assets and liabilities are not allocated to thebusiness segment in question.
3. The ¥69 million adjustment to segment profit serves to eliminate inter-segment transactions.
4. Segment profit is derived from operating income as listed on the consolidated statement of income and adjustments.
5. A goodwill impairment loss of ¥253 million was posted for the Other segment.

―16―

(Per-share data)
Previous fiscal year
(From April 1, 2022 to March 31, 2023)
Net assets per share

Current fiscal year
(From April 1, 2023 to March 31, 2024)¥3,681.85¥4,082.95¥371.93¥395.87

Profit per share

Note 1: Diluted profit per share is not listed as the company has no potential shares.
2. Profit per share is calculated as follows:
Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)

Current fiscal year
(From April 1, 2023 toMarch 31, 2024)

26,34928,017

Amount not attributable to ordinary shareholders (millions of yen)――

Profit attributable to owners of parent related to common stock(millions of yen)

26,34928,017

Profit per share
Profit attributable to owners of parent (millions of yen)

Average number of common stock shares outstanding during the70,84570,773
period (thousands of shares)
3. Average number of shares during the period" for the calculation of profit per share excludes the Company's
shares remaining in the Trust for the Delivery of Company Shares to Directors (- shares in the previous
consolidated fiscal year and 71,385 shares in the current consolidated fiscal year).
4. Net assets per share are calculated as follows:

Total net assets (millions of yen)Amount excluded from total net assets (millions of yen)
(Of which, share warrants [millions of yen])(Of which, non-controlling interests [millions of yen])

End of previous fiscal
year(March 31, 2023)

End of current fiscal
year(March 31, 2024)

263,017

291,125

2,175

2,344

(―)

(―)

(2,175)(2,344)

Net assets at end of period related to common stock (millions of yen)

260,841

288,781

Number of issued common stock shares (thousands of shares)

70,86470,86419

136

Number of common shares of treasury stock (thousands of shares)

Number of common stock shares at end of period used to calculate
70,84570,728net assets per share (thousands of shares)
5. Number of shares at the end of the period" for the calculation of net assets per-share excludes the Company's
shares remaining in the Trust for the Delivery of Company Shares to Directors (- shares in the previous
consolidated fiscal year and 116,000 shares in the current consolidated fiscal year).

(Important subsequent events)
None

―17―

4. Other
Reference: Production, orders, and sales status[Consolidated performance](1) Net sales
Accounting period

Previous fiscal year

Current fiscal year

(April 2022 to March 2023)(April 2023 to March 2024)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Power distribution line
work

46,62811.8

48,253

10.3

1,625

3.5

Electrical work

199,40350.4

251,167

53.5

51,764

26.0

HVAC and sanitaryfacility work

134,32333.9

153,202

32.7

18,878

14.1

Total, facilities
construction business

380,355

96.1

452,623

96.5

72,26819.0

Other businesses

15,4283.9

16,433

3.5

1,005

6.5

Total

395,783

73,273

18.5

Business segment

100

469,057

100(2) Construction orders
Accounting period

Previous fiscal year

Current fiscal year

(April 2022 to March 2023)(April 2023 to March 2024)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Power distribution line
work

48,40911.0

48,530

11.0

121

0.3

Electrical work

237,405

53.9

230,61452.3(6,791)(2.9)

HVAC and sanitaryfacility work

154,69235.1

161,719

36.7

7,027

4.5

Total

440,507100

440,864

100

357

0.1

Business segment(3) Construction contract balance at end of period
As of March 31, 2023
Accounting period(2023.3)

As of March 31, 2024
(2024.3)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Power distribution line
work

3,029

0.7

3,306

0.7

277

9.2

Electrical work

323,01069.0

302,457

66.3(20,553)(6.4)

HVAC and sanitaryfacility work

141,76130.3

150,278

33.0

8,517

6.0

Total

467,801100

456,042100(11,758)(2.5)

Business segment(4) Construction sales by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2022 to March 2023)

Increase (Decrease)(April 2023 to March 2024)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Kyushu ElectricPower Group*

46,743

12.3

49,773

11.0

3,029

6.5

General customers

333,611

87.7

402,850

89.0

69,238

20.8

Total

380,355100

452,623

100

72,26819.0

Customer―18―

(5) Construction orders by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2022 to March 2023)

Increase (Decrease)(April 2023 to March 2024)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Kyushu ElectricPower Group*

47,255

10.7

50,338

11.4

3,082

6.5

General customers

393,25189.3

390,52688.6(2,725)

(0.7)

Total

440,507100

440,864

100

357

0.1

Customer(6) Full-year sales and construction order volume forecast for the fiscal year ending March 2025
Business segment

Sales (millions of yen)

Construction order volume (millions of yen)Power distribution line work

50,00050,000Electrical work

275,000

241,000

HVAC and sanitary facility work

160,000

161,000

Total, facilities construction business

485,000

452,000

Other businesses

15,000Total

500,000*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., Kyushu Electric Power Transmission and Distribution Co., Inc., and Kyuden T&D
Service Co., Inc.

[Non-consolidated performance](1) Net sales
Accounting period

Previous fiscal year

Current fiscal year

(April 2022 to March 2023)(April 2023 to March 2024)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Power distribution line
work

44,273

13.3

45,581

11.2

1,308

3.0

Business segment

Electrical work

178,28153.5

231,434

57.2

53,15229.8

HVAC and sanitaryfacility work

105,77831.8

122,693

30.3

16,915

16.0

Total

328,333

98.6

399,708

98.7

71,375

21.7

Other businesses

4,674

1.4

5,123

1.3

448

9.6

Total

333,007

71,82421.6

100404,832100(2) Construction orders
Accounting period

Previous fiscal year

Current fiscal year

(April 2022 to March 2023)(April 2023 to March 2024)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Power distribution linework

46,141

12.2

45,838

12.0

(303)

(0.7)

Electrical work

213,006

56.1

209,49054.9(3,516)(1.7)

HVAC and sanitaryfacility work

120,138

31.7

126,426

33.1

6,287

5.2

Total

379,286100

381,754

100

2,468

0.7

Business segment―19―(3) Construction contract balance at end of period
As of March 31, 2023
Accounting period(2023.3)

As of March 31, 2024
(2024.3)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Power distribution line
work

2,328

0.5

2,585

0.6

256

11.0

Electrical work

310,249

72.3

288,305

70.1(21,944)(7.1)

HVAC and sanitaryfacility work

116,70927.2

120,442

29.3

3,733

3.2

Total

429,287100

411,333

100(17,954)(4.2)

Business segment(4) Construction sales by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2022 to March 2023)

Increase (Decrease)(April 2023 to March 2024)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Kyushu ElectricPower Group*

45,07913.7

47,839

12.0

2,759

6.1

General customers

283,25386.3

351,869

88.0

68,615

24.2

Total

328,333100

399,708

100

71,375

21.7

Customer(5) Construction orders by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2022 to March 2023)

Increase (Decrease)(April 2023 to March 2024)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Kyushu ElectricPower Group*

45,52212.0

48,544

12.7

3,022

6.6

General customers

333,76488.0

333,209

87.3

(554)

(0.2)

Total

379,286100

381,754

100

2,468

0.7

Customer*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., Kyushu Electric Power Transmission and Distribution Co., Inc., and Kyuden T&D
Service Co., Inc.

―20―