Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2021
(Based on Japanese GAAP)
November 10, 2021
Company name:
KAWADA TECHNOLOGIES, INC
Stock exchange listing: Tokyo
Stock code:
Representative:

3443
President

URL

https://www.kawada.jp/Inquiries:

Managing Director and Chief Financial
Officer

Kawada TadahiroWatanabe Satoru

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 11, 2021–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:YesNo

03-3915-7722(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2021
52,781
–
4,414
–
4,818
–
3,341
–
Six months ended September 30, 2020
56,067(8.1)(1,340)–534 (72.6)
833 (51.1)
Note: Comprehensive income

Six months ended September 30, 2021

¥3,813 million [–%]

Six months ended September 30, 2020

¥607 million [(63.9)%]

Earnings per share

Diluted earnings per share

Yen
566.78141.68Six months ended September 30, 2021
Six months ended September 30, 2020

Yen–141.53

Note: As the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant revised ASBJ
regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022, each figure for the six months ended
September 30, 2021, is the figure after the application of the said standard, etc., and year-on-year changes are not presented.
(2) Consolidated financial position
Total assets
As of September 30, 2021
As of March 31, 2021
Reference: EquityNet assets

Millions of yen
137,669
147,408

As of September 30, 2021
As of March 31, 2021

Equity ratio

Millions of yen
70,357
66,964

%
50.5
44.8

¥69,554 million¥66,102 million

Note: As the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant revised ASBJ
regulations from the beginning of the first quarter of the fiscal year ending March 31, 2022, each figure as of September 30, 2021, is thefigure after the application of the said standard, etc.
2. Cash dividends
Annual dividends per shareYear ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen––

Yen–

Yen
80.00

Yen80.00–80.0080.00

Year ending March 31, 2022 (Forecast)
Note: Revisions to the cash dividend forecasts most recently announced: None
1Total3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
101,000

Percentages indicate year-on-year changes
Profit attributable toOperating profitOrdinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen–
4,000–
4,300–
2,700–
457.40Note: Revisions to the consolidated earnings forecasts most recently announced: Yes
Note: As the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and relevant revised ASBJ
regulations from the beginning of the fiscal year ending March 31, 2022, the figures in the forecast of consolidated financial resultspresented above are the figures after the application of the said standard, etc., and year-on-year changes are not presented.
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

5,915,870 shares As of March 31, 2021

5,915,870 shares

12,946 shares As of March 31, 2021

25,153 shares

Number of treasury shares at the end of the period
As of September 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

5,894,840 shares Six months ended September 30, 2020

5,881,644 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to theCompany and certain assumptions deemed reasonable. Results may differ materially from the consolidated forecasts due to various factors.
We have decided to cancel the financial results presentation meeting for institutional investors and analysts, considering the health and safety ofparticipants and related parties to be the most important, as the novel coronavirus disease is spreading. We will make further announcements
regarding the distribution of materials and videos related to the financial results presentation through our website.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and otherCosts on construction contracts in progress
Other inventories
Other
Allowance for doubtful accounts

10,852

16,02459,00649,807

3,932

144

1,071
5,122

1,117
2,879

(5)

(4)

79,98069,970

6,187

6,231

Machinery, vehicles, tools, furniture and fixtures, net
Aircraft, net

3,104
821

3,427
761

Land
Leased assets, net

14,965
1,364

14,965
1,209

301

174

26,744

26,769

962

1,056

2,770

2,807

34,463
1,829

34,749
1,557

Other
Allowance for doubtful accounts

671
(14)

772
(13)Total investments and other assets

39,72039,873

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets

Total non-current assets
Total assets

367,427

67,698147,408

137,669(Millions of yen)
As of March 31, 2021

As of September 30, 2021

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts

23,71419,652

20,78910,300

4,462
150

4,837
440

485
626

441
835

Advances received on construction contracts in progress
Unearned revenue

6,330
223

2,936
1,384

Provision for bonuses
Provision for warranties for completed construction

2,159
112

2,033
67

Provision for loss on construction contracts
Other

1,936
4,621

1,568
6,361

Total current liabilities

65,61250,859and other
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payableNon-current liabilities
Bonds payable625

1,210Long-term borrowings
Lease obligations

8,357
1,014

9,447
885

Deferred tax liabilities
Deferred tax liabilities for land revaluation

87
1,475

96
1,475

529

577

2,427
138

2,468
135

112
63

102
52

14,831

16,45280,44367,311

Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital

5,285

5,285

Capital surplus
Retained earnings

10,732
46,754

10,772
49,768(36)(43)

62,73665,783

1,355
978

1,598
978

415
617

542
652

3,366

3,771

1859

1800

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

466,964

70,357

147,408

137,669

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2020

September 30, 2021

Net sales
Cost of sales

56,06752,60452,781
43,259Gross profit

3,462

9,521

Selling, general and administrative expenses

4,802

5,107

Operating profit (loss)(1,340)

4,414

145
76

127
73

10
1,790

10522

226
120

8772

Non-operating income
Interest and dividend income
Rental income
Amortization of negative goodwill
Share of profit of entities accounted for using equity method
Subsidy income
Other

2,370

893

Non-operating expenses
Interest expenses

Total non-operating income

174

172

Rental expenses
Other

250
71

234
83

Total non-operating expenses

496

490

534

4,818

Gain on extinguishment of tie-in shares
Subsidy income

–
–

180

Total extraordinary income

–

1840–
–

067

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses
Loss on tax purpose reduction entry of non-current assets
Loss on valuation of investment securities

468

Profit before income taxes

Total extraordinary losses

529

4,768

Income taxes - current
Income taxes - deferred

161
(476)

1,111
251

Total income taxes

(314)

1,363

Profit844

3,405

Profit attributable to non-controlling interests

1164

Profit attributable to owners of parent

833

3,341

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2020

September 30, 2021
844

3,405

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

320
(17)

93(38)

Share of other comprehensive income of entities accounted
for using equity method

(539)

352

Total other comprehensive income

(237)

407

607

3,813

588

3,746

1866

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in other provisions
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Subsidy income
Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts inprogress
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received on construction
contracts in progress
Other, net
Subtotal

Six months ended

Six months ended

September 30, 2020

September 30, 2021

529
1,350
4(9)
0(8)

4,768
1,396
0(9)
(1)
(128)

(188)

(44)

325

(368)

(8)

(25)

31

48

36(145)174

2(127)
172(1,790)

(522)

(16)
18
–(259)
5,729(1)
50(137)9,260(1,031)

3,791

(34)
(5,996)(46)(4,061)

3,125(3,394)

55
1,891

4,972
15,550Compensation for damage paid
Proceeds from insurance income
Subsidies received
Income taxes paid

(3)
166
452
(1,076)

(30)
23207
(674)

Net cash provided by (used in) operating activities

1,430

15,074

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
Interest and dividends received
Other, net
Net cash provided by (used in) investing activities(10)
12(2,177)
53(183)(156)(1,220)(1)
0385
8(3,288)(10)
10(1,190)
2(278)
(2)
(2)
–0484
(90)
(1,077)

7

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Six months ended

Six months ended

September 30, 2020September 30, 2021

4,260

(10,489)

4,450(2,717)3,850(2,384)

Proceeds from issuance of bonds
Redemption of bonds

742
(5)

940
(75)

Interest paid
Repayments of lease obligations

(177)
(231)

(168)
(242)

Dividends paid
Other, net

(466)
(49)

(468)
(56)

Net cash provided by (used in) financing activities

5,803(9,093)(5)

1

Proceeds from long-term borrowings
Repayments of long-term borrowings

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

3,940

4,904

Cash and cash equivalents at beginning of period

9,275

10,767–265

13,215

15,938

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period8