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 Three Months Ended June 30, 2021
(Based on Japanese GAAP)
August 6, 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

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

August 10, 2021–

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

NoNo

TEL

03-3915-7722(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 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%Three months ended June 30, 2021
25,327–
966
–
1,577
–
1,208
–
Three months ended June 30, 2020
30,222
12.8
369
–
1,047
–
854
–
Note: Comprehensive income

Three months ended June 30, 2021
Three months ended June 30, 2020

¥1,316 million [–%]
¥708 million [–%]

Earnings per share

Diluted earnings per shareYen
205.23145.49Three months ended June 30, 2021
Three months ended June 30, 2020

Yen–
145.31Note: 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 three months ended June 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 June 30, 2021
As of March 31, 2021
Reference: Equity

Net assets

Millions of yen132,666
147,408
As of June 30, 2021

Equity ratioMillions of yen
67,816
66,964

%
50.5
44.8

¥67,057 million

As of March 31, 2021
¥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 June 30, 2021, is the figure
after the application of the said standard, etc.
2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end3rd quarter-end

Fiscal year-end

Yen––Yen–Yen–

Yen
80.00

Yen
80.00

––

80.00

80.00

Year ending March 31, 2022 (Forecast)
Note: Revisions to the cash dividend forecasts most recently announced: None1Total

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
105,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen–
1,500–
2,200–
1,100–
186.75

Note: Revisions to the consolidated earnings forecasts most recently announced: None
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 three months ended June 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 June 30, 2021

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

5,915,870 shares

25,689 shares As of March 31, 2021

25,153 shares

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

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

5,890,429 shares Three months ended June 30, 2020

5,876,454 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.

2

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

As of June 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
Total current assets

10,852

14,96859,00642,986

3,932

130

1,071
5,122

1,126
5,724

(5)

(5)

79,98064,930Non-current assets
Property, plant and equipment
Buildings and structures, net

6,187

6,207

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

3,104
821

3,434789

Land
Leased assets, net14,965
1,364

14,965
1,283

Construction in progress

301

163

26,744

26,843

962

1,004

2,770

2,605

34,463
1,829

35,014
1,576

Other
Allowance for doubtful accounts

671
(14)

705
(13)

Total investments and other assets

39,72039,88767,42767,735

147,408

132,666

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 assets3

(Millions of yen)
As of March 31, 2021

As of June 30, 2021

LiabilitiesCurrent liabilities
Notes payable, accounts payable for construction contracts

23,71421,503

20,789

7,100

4,462
150

4,245
150

485
626

464
133

Advances received on construction contracts in progress
Provision for bonuses

6,548
2,159

7,144
1,017

Provision for warranties for completed construction
Provision for loss on construction contracts

112
1,936

114
1,739

Other

4,627

7,553

Total current liabilities

65,612

51,166

Bonds payable
Long-term borrowings

625
8,357

550
7,343

Lease obligations
Deferred tax liabilities

1,014
87

943
86

Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and other

1,475

1,475

and other
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payableNon-current liabilitiesofficers)
Retirement benefit liability

529

546

2,427

2,435

Asset retirement obligations
Negative goodwill

138
112

138
107

Other

63

57

14,831

13,68480,44364,850Share capital
Capital surplus

5,285
10,732

5,285
10,721Retained earnings
Treasury shares

46,754(36)

47,636(37)

Total shareholders' equity

62,736

63,606

1,355

1,458

978
415

978415

Total non-current liabilities
Total liabilities
Net assets
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

617

599

3,366

3,451

Share acquisition rights

11

Non-controlling interests

859

756

Total net assets
Total liabilities and net assets

466,964

67,816

147,408132,666

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

Three months ended

June 30, 2020

June 30, 2021

Net sales
Cost of sales

30,222
27,54925,327
21,836Gross profit

2,673

3,491

Selling, general and administrative expenses

2,303

2,524

369

966

Interest and dividend income
Rental income

2237

105
36

Amortization of negative goodwill
Share of profit of entities accounted for using equity method

5668

5612Subsidy income
Other

116
9587
25

Total non-operating income

944

873

Non-operating expenses
Interest expenses

87102

Rental expenses
Other

128
50

12137

Total non-operating expenses

267

262

1,047

1,577

Gain on extinguishment of tie-in shares
Subsidy income

–
–

180

Total extraordinary income–

18

Operating profit
Non-operating income

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses

4–

Loss on tax purpose reduction entry of non-current assets
Loss on valuation of investment securities––050

Total extraordinary losses

450

Profit before income taxes

1,043

1,545

Income taxes - current
Income taxes - deferred

94
97

36277

Total income taxes

192

314

Profit850

1,231

Profit (loss) attributable to non-controlling interests

(4)

22

Profit attributable to owners of parent

854

1,208

5

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

ProfitOther comprehensive income

Three months ended

Three months ended

June 30, 2020

June 30, 2021
850

1,231

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax157(8)

(62)
(19)

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

(290)

167

Total other comprehensive income

(141)

85

708

1,316

710

1,293

(1)

22

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

6