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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:

KAWADA TECHNOLOGIES, INC

Stock exchange listing: Tokyo
Stock code:
3443
Representative:
Inquiries:

URL

https://www.kawada.jp/PresidentManaging Director and Chief FinancialOfficer
Scheduled date of ordinary general meeting of shareholders:

Kawada Tadahiro
Watanabe Satoru

TEL03(3915)7722

June 29, 2023

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

June 30, 2023
June 30, 2023

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

Yes
Yes

(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net sales
Millions of yen118,086
103,760

Year ended March 31, 2023
Year ended March 31, 2022
Note: Comprehensive income%
13.8–

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
5,025(21.6)
6,298(18.1)
4,231(18.3)
6,412
–
7,689
–
5,176
–

Year ended March 31, 2023

¥5,493 million [2.1%]

Year ended March 31, 2022

¥5,380 million [–%]

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equityYen%%%
–
5.8
4.3
4.3–
7.6
5.5
6.2

Diluted earnings pershareYen719.83
877.61

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

Reference: Share of profit of entities accounted for using equity method

Year ended March 31, 2023

¥1,378 million

Year ended March 31, 2022
¥883 million
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 fiscal year ended March 31, 2022, each figure for the fiscal year ended March 31, 2022, isthe 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 March 31, 2023
As of March 31, 2022
Reference: Equity

Net assets

Millions of yen
162,158
133,337
As of March 31, 2023
As of March 31, 2022

Millions of yen
76,69771,921Equity ratio

Net assets per share%
46.6
53.2

Yen
12,864.33
12,028.82¥75,615 million¥71,001 million(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022Cash flows fromoperating activities
Millions of yen(9,673)
20,391

Cash flows frominvesting activities
Millions of yen(1,504)(1,948)1

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
12,213
15,661(15,811)
13,674

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

TotalYen

Yen

YenYenYen

Millions of yen%%––––––

100.00210.00100.00210.00

591
1,234

11.4
29.2

0.9
1.7

–––

200.00200.00Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)

30.1

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
133,000
12.6
4,600(8.5)
5,100 (19.0)
3,900(7.8)
663.504. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:

YesNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

5,917,370 shares As of March 31, 2022

5,915,870 shares

39,450 shares As of March 31, 2022

13,279 shares

5,878,508 shares Year ended March 31, 2022

5,898,779 shares

Number of treasury shares at the end of the period
As of March 31, 2023
Average number of shares during the period
Year ended March 31, 2023

2Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Operating profit

Millions of yen
2,078
2,240

% Millions of yen
(7.2)
698
9.1
928

Earnings per share% Millions of yen(24.7)
682
7.8
914

Profit% Millions of yen(25.4)
917
8.5
1,018

%(9.9)(5.9)

Diluted earnings per shareYen
156.11172.28

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

Ordinary profit

Yen––(2) Non-consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022
Reference: Equity

Net assets

Millions of yen
26,05026,354As of March 31, 2023
As of March 31, 2022

Millions of yen
25,552
25,342Equity ratio

Net assets per share%
98.1
96.2

Yen
4,346.89
4,286.09¥25,550 million¥25,340 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of forecasts 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 promptly after the meeting.

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

As of March 31, 2023

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

15,746

48,67969,206

189

120

921
2,936

1,254
6,634

(6)

(6)

66,482

92,95623,507

23,621

Machinery, vehicles, tools, furniture and fixtures
Aircraft

24,396
4,782

24,722
4,963

Land
Leased assets

14,9582,051

14,9573,991

Construction in progress
Accumulated depreciation

74(43,788)

308(45,522)

Total property, plant and equipment

25,982

27,042

1,108

1,177

Investment securities
Shares of subsidiaries and associates

2,343
35,0673,496
35,522

Deferred tax assets
Other

1,644
724

1,220
757

Allowance for doubtful accounts

(15)

(15)

Total investments and other assets

39,76440,981

66,854

69,201

133,337

162,158

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

Intangible assets
Investments and other assets

Total non-current assets
Total assets

4

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

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

18,88029,211

5,717

20,380Current portion of long-term borrowings
Current portion of bonds payable

4,548
440

3,998
680

Lease liabilities
Income taxes payable

419
1,114

578
1,104

Advances received on construction contracts in progress
Unearned revenue

3,508
1,820

4,631
1,951

Provision for bonuses
Provision for warranties for completed construction

2,342
178

2,061
67

Provision for loss on construction contracts
Other

2,070
5,694

1,777
2,898

Total current liabilities

46,734

69,341

Non-current liabilities
Bonds payable

1,040

1,910

Long-term borrowings
Lease liabilities

8,138
758

6,892
2,341

Deferred tax liabilities
Deferred tax liabilities for land revaluation

90
1,474

120
1,474

565

647

2,331
132

2,440
132

93
56

73
86

14,680

16,11961,41585,460

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

5,288

Capital surplus
Retained earnings

10,76951,605

10,77855,247

(44)

(140)

67,616

71,173

1,251
977

2,070
976

620
536

1,163
230

3,384

4,441

1918

1
1,079

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 plansTotal accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

571,92176,697

133,337

162,158

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

103,760

118,086

Cost of sales

86,950102,459

Gross profit

16,80915,626

Selling, general and administrative expenses

10,396

10,600Operating profit

6,412

5,025

Non-operating incomeInterest and dividend income

145

71

Rental income
Amortization of negative goodwill

147
20

144
20

Share of profit of entities accounted for using equity method
Subsidy income

883
624

1,378
424

Other

349

126

2,170

2,167

Interest expenses
Rental expenses

295
465

315
466

Other

132

111

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on extinguishment of tie-in shares

893

893

7,689

6,298

18–

Subsidy income

51

Total extraordinary income

231

Loss on extinguishment of tie-in sharesImpairment losses

–163

329
20

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

5184

115

Extraordinary losses

352

366

Profit before income taxes

Total extraordinary losses

7,359

5,933

Income taxes - current
Income taxes - deferred

1,759
238

1,392
108

Total income taxes

1,997

1,501

Profit

5,362

4,432

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

6185

201

5,176

4,231

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
5,362

4,432

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

(138)
(152)

806
(292)

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

309

547

Total other comprehensive income

18

1,060

5,380

5,493

5,196

5,289

184

204

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

7Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

5,285

Retained earnings

10,732

46,754

Cumulative effects of changes inaccounting policies

Total shareholders'equityTreasury shares(36)

62,736

144

Restated balance

5,285

10,732

144

46,898(36)

62,880Changes during period
Dividends of surplus

(471)

(471)

Profit attributable to owners ofparent

5,176

5,176

11

Reversal of revaluation reserve forland
Purchase of treasury shares

(63)

(63)

Disposal of treasury shares

(11)

57

46

Decrease (Increase) due topurchase of treasury shares fromconsolidated subsidiaries

48

(2)

46

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

37

4,706

(7)

4,736

5,285

10,76951,605(44)

67,616

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve for
sale
land
securities
Balance at beginning of period

1,355

978

Foreigncurrencytranslation
adjustment
415

TotalRemeasurements

accumulatedof definedotherbenefit planscomprehensive

Shareacquisitionrights

Noncontrollinginterests

Total net
assets1859

66,964

(94)

49765

67,013income617

3,366

Cumulative effects of changes inaccounting policies
Restated balance

1,355

978

415

617

3,366

1

Changes during period
Dividends of surplus(471)

Profit attributable to owners ofparent

5,176

Reversal of revaluation reserve forland

1

Purchase of treasury shares(63)

Disposal of treasury shares

46

Decrease (Increase) due topurchase of treasury shares fromconsolidated subsidiaries

46

Net changes in items other thanshareholders' equity

(104)

(1)

204(81)

18153

171

Total changes during period

(104)

(1)

204(81)

18–

153

4,907

Balance at end of period

1,251

977

620

536

3,384

1

918

71,921

8

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

5,285

10,7693

3

Total shareholders'equityTreasury shares

51,605(44)

67,616

Changes during period
Issuance of new shares - exerciseof share acquisition rights

6

Dividends of surplus(590)(590)

Profit attributable to owners ofparent

4,231

4,231

00

Reversal of revaluation reserve for
land
Purchase of treasury shares

(212)

(212)

Disposal of treasury shares

18890

Decrease (Increase) due topurchase of treasury shares fromconsolidated subsidiaries

328

31

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

38

3,641

(96)

3,557

5,288

10,77855,247(140)

71,173

Accumulated other comprehensive income
Valuationdifference on Revaluation
available-for- reserve forsalelandsecurities
Balance at beginning of period

1,251

977

Foreigncurrencytranslation
adjustment
620

Total
Remeasurements

accumulatedof definedotherbenefit planscomprehensive

Shareacquisitionrights

Noncontrollinginterests

Total net
assets1

918

71,921income536

3,384

Changes during period
Issuance of new shares - exerciseof share acquisition rights

6

Dividends of surplus(590)

Profit attributable to owners ofparent

4,231

Reversal of revaluation reserve forland

0

Purchase of treasury shares(212)

Disposal of treasury shares

90

Decrease (Increase) due topurchase of treasury shares fromconsolidated subsidiaries

31

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

819

(0)

543(305)

1,057(0)

161

1,218

819(0)

543

(305)

1,057

(0)

161

4,775

2,070

976

1,163

230

4,441

1

1,079

76,6979

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
7,359

5,933

2,893
163

2,874
20

Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts

(19)
2(19)
0

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for warranties for completed

180(291)

66(117)134(292)

Depreciation
Impairment losses

construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in other provisions

36(24)(22)

7

Increase (decrease) in retirement benefit liability
Interest and dividend income

(248)
(145)

(183)
(71)

Interest expenses
Share of loss (profit) of entities accounted for using equity

295315(883)(1,378)methodLoss (gain) on valuation of investment securities

186

15

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets(51)
19(32)
21

Loss on tax purpose reduction entry of non-current assets
Insurance claim income

5(48)

1(99)

Subsidy income
Decrease (increase) in trade receivables(752)
10,388(584)(20,421)

Decrease (increase) in costs on construction contracts inprogress

3,74669Decrease (increase) in inventories
Increase (decrease) in trade payables

149(4,834)(333)
10,317

Increase (decrease) in advances received on construction
contracts in progress(2,821)

1,112

Increase (decrease) in accrued consumption taxes
Other, net

1,484
3,688

(2,664)(2,356)

Subtotal

20,972(8,183)(35)
48(75)
99

Subsidies received
Income taxes paid

492
(1,085)609(2,125)

Net cash provided by (used in) operating activities

20,391(9,673)Compensation paid for damage
Proceeds from insurance income10(Millions of yen)

Cash flows from investing activities
Payments into time deposits

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
(11)

(11)

10(2,082)

13(1,358)

116(549)

48(523)Purchase of investment securities
Purchase of shares of subsidiaries and associates

(5)
(2)

(8)
–

Loan advances
Proceeds from collection of loans receivable

(2)
21

–
1

Interest and dividends received
Other, net

499
55305
28

Net cash provided by (used in) investing activities(1,948)(1,504)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings(15,072)

14,663

4,730(4,863)3,020(4,815)

Proceeds from issuance of bonds
Redemption of bonds

940
(245)

1,677
(590)

Interest paid
Repayments of lease liabilities

(283)
(470)

(322)
(574)

Dividends paid
Other, net(468)
(78)

(587)
(257)

(15,811)

12,213107

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets

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

2,641

1,042

Cash and cash equivalents at beginning of period

10,767

13,674265

944

13,674

15,661

Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period11