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, 2021
(Based on Japanese GAAP)
February 10, 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:

February 14, 2022–

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, 2021 (from April 1, 2021 to December 31, 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%
Nine months ended December 31, 2021
78,181–5,401–
5,902–
3,914–
Nine months ended December 31, 2020
85,880(6.5)
347 (88.9)
2,350 (46.9)
2,169 (38.4)
Note: Comprehensive income Nine months ended December 31, 2021
Nine months ended December 31, 2020

¥4,320 million [–%]
¥1,807 million [(49.8)%]

Earnings per share

Diluted earnings per share

Yen
663.74368.69Nine months ended December 31, 2021
Nine months ended December 31, 2020

Yen–368.41

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 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, 2021
As of March 31, 2021
Reference: Equity

As of December 31, 2021

Net assets

Millions of yen
128,035
147,408

Millions of yen
70,87066,964Equity ratio%
54.7
44.8

¥70,020 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 December 31, 2021, is thefigure after the application of the said standard, etc.

12. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen––

Yen––

Yen
80.00

Yen80.00

100.00100.00Year ended March 31, 2021
Year ending March 31, 2022
Year ending March 31, 2022 (Forecast)

Total

Note: Revisions to the cash dividend forecasts most recently announced: Yes
Breakdown of fiscal year-end dividends for the fiscal year ending March 31, 2022 (forecast):
Ordinary dividend of ¥80.00, and commemorative dividend of ¥20.00
3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
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
101,000–
5,000–
5,900–
3,900–
660.71
Note: 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 nine months ended December 31, 2021
(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
No

Changes 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, 2021

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

5,915,870 shares

13,098 shares As of March 31, 2021

25,153 shares

Number of treasury shares at the end of the period
As of December 31, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021

5,897,520 shares Nine months ended December 31, 2020

5,884,403 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 December 31, 2021

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

10,852

14,05659,00642,909

3,932

359

1,071
5,122

1,1172,966

(5)

(4)

79,98061,405

6,187

6,149

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

3,104
821

3,353
707

Land
Leased assets, net

14,965
1,364

14,965
1,156

301

106

26,744

26,438

962

1,093

2,770

2,523

34,463
1,829

34,699
1,139

Other
Allowance for doubtful accounts

671
(14)

748
(13)

Total investments and other assets

39,72039,097

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

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

Total non-current assets
Total assets

367,427

66,630147,408

128,035

(Millions of yen)
As of March 31, 2021

As of December 31, 2021

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts

23,714

20,137

20,789

3,400

4,462
150

4,832
440

485
626

439
416

Advances received on construction contracts in progress
Unearned revenue

6,330
223

2,078
1,492

Provision for bonuses
Provision for warranties for completed construction

2,159
112

1,058
55

Provision for loss on construction contracts
Other

1,936
4,621

1,446
5,594

Total current liabilities

65,612

41,390and other
Short-term borrowings
Current portion of long-term borrowings
Current portion of bonds payable
Lease obligations
Income taxes payableNon-current liabilities
Bonds payable

625

1,135

Long-term borrowings
Lease obligations

8,357
1,014

8,887
833

Deferred tax liabilities
Deferred tax liabilities for land revaluation

87
1,475

85
1,475

529

584

2,427
138

2,477
135

112
6397
63

14,831

15,77580,44357,165

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

10,77850,341(36)(44)

62,736

66,361

1,355
978

1,506
978

415
617

542
632

3,366

3,659

1859

1847

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

70,870147,408

128,035

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, 2020

December 31, 2021

Net sales
Cost of sales

85,88078,28378,18165,088Gross profit

7,596

13,092

Selling, general and administrative expenses

7,249

7,691

347

5,401

201
113

139
110

15
1,962

15450

272
170

339
123

Operating profit
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

2,736

1,180

Non-operating expenses
Interest expenses

Total non-operating income

280

233

Rental expenses
Other

362
90

345
100

Total non-operating expenses

733

679

2,3505,902

Gain on extinguishment of tie-in shares
Subsidy income–6184

Total extraordinary income

622404–4189

Ordinary profit
Extraordinary income

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

9194

Profit before income taxes

Total extraordinary losses

2,347

5,730

Income taxes - current
Income taxes - deferred

299
(155)

995
708

144

1,704

2,203

4,026

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

533

112

2,169

3,914

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2020

December 31, 2021

2,203

4,026

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

245
(26)

(22)
(57)

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

(614)

374

Total other comprehensive income(395)

294

1,807

4,320

1,765

4,207

41

113

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

6