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 Nine Months Ended December 31, 2022
(Based on Japanese GAAP)
February 14, 2023
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:

February 14, 2023–

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

03-3915-7722(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 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%
Nine months ended December 31, 2022
81,3044.0
1,360 (74.8)
2,279 (61.4)
1,330 (66.0)
Nine months ended December 31, 2021
78,181
–
5,401
–
5,902
–
3,914
–
Note: Comprehensive income Nine months ended December 31, 2022

¥2,434 million [(43.7)%]

Nine months ended December 31, 2021

¥4,320 million [–%]

Earnings per share

Diluted earnings per share

Yen
226.34663.74

Nine months ended December 31, 2022
Nine months ended December 31, 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 nine months
ended December 31, 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 December 31, 2022
As of March 31, 2022
Reference: Equity

Net assets

Millions of yen
155,233
133,337

As of December 31, 2022
As of March 31, 2022

Equity ratio

Millions of yen
73,63671,921%
46.8
53.2¥72,628 million¥71,001 million

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
100.00120.00120.00Year ending March 31, 2023 (Forecast)
Note: Revisions to the cash dividend forecasts most recently announced: Yes

1Total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
115,000

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
10.8
3,600 (43.9)
4,400 (42.8)
2,400 (53.6)
408.40Note: Revisions to the consolidated earnings forecasts most recently announced: Yes
4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 2022

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

5,915,870 shares

39,265 shares As of March 31, 2022

13,279 shares

Number of treasury shares at the end of the period
As of December 31, 2022

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

5,879,064 shares Nine months ended December 31, 2021

5,897,520 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.

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

As of December 31, 2022

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

13,761

14,652

48,67964,144

189

178

921
2,936

1,391
5,888

(6)

(51)

66,482

86,202

6,070

5,777

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

3,106
704

2,732
846

Land
Leased assets, net

14,958
1,067

14,958
2,776

74

214

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

25,982

27,305Intangible assets

Total property, plant and equipment

1,108

1,156

Investments and other assets
Investment securities

2,343

2,948

35,0671,644

35,308
1,594

Other
Allowance for doubtful accounts

724
(15)

731
(15)

Total investments and other assets

39,76440,567

Shares of subsidiaries and associates
Deferred tax assets

Total non-current assets
Total assets

366,854

69,030133,337

155,233

(Millions of yen)
As of March 31, 2022

As of December 31, 2022

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

18,88026,0705,717

20,100Current portion of long-term borrowings
Current portion of bonds payable

4,548
440

4,182
680

Lease liabilities
Income taxes payable

419
1,114

615
477

Advances received on construction contracts in progress
Unearned revenue

3,508
1,820

3,683
1,887

Provision for bonuses
Provision for warranties for completed construction

2,342
178

998
140

Provision for loss on construction contracts
Other

2,070
5,694

2,0783,648

Total current liabilities

46,73464,561

Non-current liabilities
Bonds payable

1,040

2,155

Long-term borrowings
Lease liabilities

8,138
758

7,570
2,451

Deferred tax liabilities
Deferred tax liabilities for land revaluation

90
1,474

117
1,474

565

635

2,331
132

2,381
132

93
56

78
36

14,68017,034

61,415

81,596

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

5,285

5,285

Capital surplus
Retained earnings

10,76951,605

10,77852,345

(44)

(140)

67,616

68,269

1,251
977

1,739
977

620
536

1,164
478

3,384

4,358

1918

1
1,005

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

471,92173,636

133,337

155,233

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

Nine months ended

December 31, 2021

December 31, 2022

Net sales
Cost of sales

78,18165,08881,30472,053Gross profit

13,092

9,250

Selling, general and administrative expenses

7,691

7,889

Operating profit

5,401

1,360

Interest and dividend income
Rental income

13911064109

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

15450

151,126

Subsidy income
Other339
123

158
62

Non-operating income

1,180

1,537

Non-operating expenses
Interest expenses

Total non-operating income

233

196

Rental expenses
Other345
100

346
75

Total non-operating expenses

679

618

5,902

2,279

Gain on extinguishment of tie-in shares
Subsidy income

184–0

Total extraordinary income

220–

329

04–0

Loss on valuation of investment securities

189

18

Total extraordinary losses

194

348

5,730

1,931

995569Ordinary profit
Extraordinary income

Extraordinary losses
Loss on extinguishment of tie-in shares
Impairment losses
Loss on tax purpose reduction entry of non-current assets

Profit before income taxes
Income taxes - current
Income taxes - deferred

708

(97)

Total income taxes

1,704

472

Profit

4,026

1,459

112

128

3,914

1,330

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

Nine months ended

Nine months endedDecember 31, 2021

December 31, 2022

4,026

1,459

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

(22)
(57)

435
(45)

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

374

586

Total other comprehensive income

294

975

4,320

2,434

4,207

2,304

113

130

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

6