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, 2022
(Based on Japanese GAAP)
November 11, 2022
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 14, 2022–

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

Yes
Yes

03-3915-7722(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(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, 2022
50,764(3.8)
320 (92.7)
1,109 (77.0)
579 (82.6)
Six months ended September 30, 2021
52,781–
4,414–
4,818–
3,341–
Note: Comprehensive income

Six months ended September 30, 2022
Six months ended September 30, 2021

¥1,329 million [(65.1)%]¥3,813 million [–%]

Earnings per share

Diluted earnings per share

Yen98.63
566.78Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––

Note: As the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
revised ASBJ regulations from the beginning of the first quarter of the fiscal year ended 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 assetsAs of September 30, 2022
As of March 31, 2022
Reference: Equity

Net assets

Millions of yen
137,514133,337

Equity ratio

Millions of yen
72,52771,921

As of September 30, 2022

¥71,567 million

As of March 31, 2022

¥71,001 million

%
52.0
53.2

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen––

Yen–

Yen
100.00Yen
100.00–80.0080.00

Year ending March 31, 2023 (Forecast)
Note: Revisions to the cash dividend forecasts most recently announced: None1Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
116,000

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
11.8
2,800 (56.3)
3,500 (54.5)
2,000 (61.4)
340.33

Note: Revisions to the consolidated earnings forecasts most recently announced: Yes
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(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:
Changes in accounting policies due to other reasons:

Yes
NoChanges in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2022

5,915,870 shares As of March 31, 2022

5,915,870 shares

39,167 shares As of March 31, 2022

13,279 shares

Number of treasury shares at the end of the period
As of September 30, 2022

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

5,880,274 shares Six months ended September 30, 2021

5,894,840 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 are scheduled to hold a financial results presentation meeting for institutional investors and analysts. The materials on financial results to be
used at and the video of the meeting will be available on our website on the day of the meeting.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of September 30, 2022

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

13,761

14,64548,67948,722189

919212,936

1,312
3,847

(6)

(5)

66,482

68,612

6,070

5,875

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

3,106
704

2,908880

Land
Leased assets, net

14,958
1,067

14,958
2,903

74

69

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

Construction in progress

25,982

27,596

Intangible assets

Total property, plant and equipment

1,108

1,144

Investments and other assets
Investment securities

2,343

2,577

35,067
1,644

34,976
1,884

Other
Allowance for doubtful accounts

724
(15)

737
(15)

Total investments and other assets

39,76440,159

Shares of subsidiaries and associates
Deferred tax assets

Total non-current assets
Total assets

366,854

68,901

133,337

137,514

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Short-term borrowings

18,88021,105

5,717

6,600

Current portion of long-term borrowings
Current portion of bonds payable

4,548
440

4,418
640

Lease liabilities
Income taxes payable419
1,114

643
553

Advances received on construction contracts in progress
Unearned revenue

3,508
1,820

4,170
1,612

Provision for bonuses
Provision for warranties for completed construction

2,342
178

2,100
163

Provision for loss on construction contracts
Other

2,070
5,694

2,516
2,811

Total current liabilities

46,73447,335

Non-current liabilities
Bonds payable

1,040

2,070

Long-term borrowings
Lease liabilities

8,138
758

8,196
2,560

Deferred tax liabilities
Deferred tax liabilities for land revaluation

90
1,474

104
1,474

5656202,331
132

2,365
132

93
56

83
42

14,68017,65061,41564,986

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

10,76951,605

10,77551,595

(44)

(139)

67,616

67,516

1,251
977

1,413
977

620
536

1,164
496

3,384

4,051

1918

1958

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

471,92172,527

133,337

137,514

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, 2021

September 30, 2022

Net sales
Cost of sales

52,781
43,25950,76445,180Gross profit

9,521

5,583

Selling, general and administrative expenses

5,107

5,263

Operating profit

4,414

320

Interest and dividend income
Rental income

127
73

51
73

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

10522

10842

Subsidy income
Other

87
72

158
56

Total non-operating income

Non-operating income

893

1,193

Non-operating expenses
Interest expenses

172113

Rental expenses
Other234
83

235
55

Total non-operating expenses490

404

4,818

1,109

Gain on extinguishment of tie-in shares
Subsidy income

180–0

Total extraordinary income

180–

327

Impairment losses
Loss on tax purpose reduction entry of non-current assets

00–0

Loss on valuation of investment securities

67–

Total extraordinary losses

68

328

Profit before income taxes

4,768

781

Income taxes - current

1,111

409

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on extinguishment of tie-in shares

Income taxes - deferred

251

(290)

Total income taxes

1,363

118

Profit3,405

6626482

3,341

579

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

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

3,405

662

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

93(38)

159(30)

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

352

537

Total other comprehensive income

407

666

3,813

1,3293,746

1,24666

82

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 completedconstruction
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
SubtotalCompensation paid for damage
Proceeds from insurance income
Subsidies received
Income taxes paid

Six months ended

Six months ended

September 30, 2021

September 30, 2022

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

781
1,402
–
(9)
(0)
(252)

(44)

(20)

(368)

445

(25)

0

48(51)

2(127)
172

2(51)
113(522)

(842)

(1)
50(137)9,260(0)20(231)64

3,791

98(46)(4,061)

(390)
2,211

(3,394)

651

4,972

(3,268)15,550655(30)23207(674)

(75)
81492
(1,349)Net cash provided by (used in) operating activities

15,074(195)

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
Proceeds from collection of loans receivable
Interest and dividends received
Other, net(10)10(1,190)
2(278)
(2)
(2)
0484
(90)

(10)
12(771)8(255)
(2)
–0288
30

Net cash provided by (used in) investing activities(1,077)(699)

7

(Millions of yen)

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

Six months ended

Six months ended

September 30, 2021

September 30, 2022

(10,489)

883

3,850
(2,384)2,400(2,470)

Proceeds from issuance of bonds
Redemption of bonds

940
(75)

1,481
(270)

Interest paid
Repayments of lease liabilities

(168)
(242)

(114)
(260)

Dividends paid
Other, net

(468)
(56)

(586)
(238)

(9,093)

822

1

13

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

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

4,904

(58)

Cash and cash equivalents at beginning of period

10,767

13,674265

944

15,93814,560

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