Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2023
[Japanese GAAP]May 11, 2023
Company name: SUMITOMO DENSETSU CO.,LTD.
Stock exchange listing: Tokyo
Code number: 1949
URL: https://www.sem.co.jp
Representative: Makoto Tani
President
Contact: Koji Tanioku
General Manager, Finance & Accounting Department
Phone: +81-6-6537-3490
Scheduled date of Annual General Meeting of Shareholders: June 27, 2023
Scheduled date of commencing dividend payments: June 28, 2023
Scheduled date of filing annual securities report: June 27, 2023
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one millions of yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent%
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen
Fiscal year endedMarch 31, 2023
175,120
4.5
13,461
3.5
14,394
3.6
9,384
2.7
March 31, 2022
167,594
8.8
13,005
14.9
13,900
16.4
9,140
13.6
(Note) Comprehensive income:Fiscal year ended March 31, 2023:¥9,527 million [(6.0) %]Fiscal year ended March 31, 2022:¥10,133 million [(22.7) %]Basic earnings per Diluted earnings per Rate of return on
shareshareequity
Yen
Fiscal year ended
March 31, 2023
265.05
March 31, 2022
257.43(Reference) Equity in earnings (losses) of affiliated companies:

Yen

Ordinary profit tototal assets ratio

%

10.2
10.6
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:

Operating profit to
net sales ratio

%

%

8.9
9.0
¥
¥

7.7
7.8
- million- million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Millions of yen

162,587
161,036
As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

Millions of yen¥¥

99,61893,38594,927 million
89,448 million

Net assets per share%

Yen

58.4
55.5

2,681.14
2,526.98(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

5,094
6,861

(2,388)
11,525(3,502)(3,382)54,42854,921

2. Dividends
Annual dividends
1st
2nd
3rdquarter-end quarter-end quarter-end

Year-end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

March 31, 2022

-

37.00

-

49.00

86.00

March 31, 2023

-

43.00

-

51.00

94.00

-

47.00

-

47.00

94.00

Payoutratio

Total
dividends(consolidated)

Yen Millions of yen

Dividends
to netassets(consolidated)

%%

3,050

33.4

3.5

3,328

35.5

3.6

Fiscal year ending
March 31, 2024

35.0

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings perNet sales
Operating profit
Ordinary profit
to owners of parent
share
Six months ending
September 30, 2023
Full year

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

83,0001.8

4,000(24.6)

4,500(22.9)

2,700(28.7)

76.26

185,000

5.6

13,5000.3

14,500

0.7

9,500

1.2

268.33* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): NoNew(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2023:35,635,879 shares
March 31, 2022:
35,635,879 shares
2) Number of treasury shares at the end of the period:
March 31, 2023:
230,084 shares
March 31, 2022:
238,573 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:
Fiscal Year ended March 31, 2022:

35,404,246 shares
35,507,755 shares

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

129,317
127,126

1.7
6.8

10,06010,122(0.6)
10.5

11,581
11,265

2.8
9.6

8,645
7,947

8.8
8.1

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

YenYen244.20223.84-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Millions of yen

Net assets
Millions of yen

Capital adequacy ratio%

Net assets per shareYen

137,397
82,40660.0
2,327.50
135,61377,71857.3
2,195.61
As of March 31, 2023:¥82,406 million
As of March 31, 2022:¥77,718 million* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
This presentation contains various forward-looking statements which are based on the current expectations and assumptions of future
event.
Please be advised that there are possibilities actual performance could be different from those described in this material

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Costs on construction contracts in progress
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, vehicles, tools, furniture andfixtures
Land
Leased assets
Construction in progress
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-1-

As of March 31, 2023

55,26654,77062,33864,375

3,212
2,122
(9)
122,930

3,108
1,409
(12)
123,650

8,191

10,168

5,306

5,581

7,009
391
426
(8,131)
13,1937,028
408370(8,767)
14,789

234
720
954

118
965
1,083

19,632
1,866
355
2,629(526)23,957
38,106
161,036

18,3602,144
302
2,671(414)
23,06338,936
162,587(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts and other
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Income taxes payable
Advances received on construction contracts inprogress
Provision for bonuses for directors (and otherofficers)
Provision for loss on construction contracts
OtherTotal current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-2-

As of March 31, 2023

30,13826,617

8,356
1,609
75
3,169

9,540
1,597
86
2,577

9,178

6,738

139

112

24
8,252
60,944

88
8,806
56,163

1,001
71

921
136

16

17

1,211
3,271
1,135
6,706
67,651

1,253
3,547
929
6,805
62,9686,440
6,102
67,742(437)
79,8476,440
6,107
73,869(421)
85,994

9,688

8,969

1286(375)
9,601
3,936
93,385
161,036

581
(618)
8,932
4,690
99,618
162,587

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
For the fiscal year
ended March 31, 2022
Net sales
Net sales of completed construction contracts
Cost of sales
Cost of sales of completed construction contracts
Gross profit
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of property,plant and equipmentGuarantee commission
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-3-

For the fiscal year
ended March 31, 2023

167,594

175,120

144,834

150,867

22,7599,753
13,00524,253
10,792
13,4616842239428
958

85
482
153
269
991

31
9
7
16
64
13,900

24
8
6
18
58
14,394

154
154

299
299

8
25
33
14,020
4,194
258
4,453
9,567
426
9,140

14,694
3,874
754
4,628
10,065681
9,384

Consolidated Statements of Comprehensive Income(Millions of yen)
For the fiscal year
ended March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive incomeComprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests-4-

For the fiscal year
ended March 31, 2023

9,567

10,065

(215)
0496
284
565
10,133(719)(1)
442(259)
(537)
9,527

9,592

8,715

540

811

Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital Capital surplus
Balance at beginningof period
Changes during
periodDividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

6,440

6,102

Retainedearnings
61,305

Treasuryshares(44)

Totalshareholders'equity73,802(2,703)(2,703)9,140

9,140(392)

(392)

--

6,437

(392)

6,044

6,440

6,102

67,742(437)

79,847

Accumulated other comprehensive income
Valuation
Foreign
Deferred gains
difference on
currency
or losses onavailable-for-saletranslation
hedgessecurities
adjustment
Balance at beginningof period
Changes duringperiod
Dividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

9,904

0(92)

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit plans comprehensive
income
(663)

9,149

3,429

Total net
assets86,381(2,703)9,140(392)
(215)

0378

288

452

506

958

(215)

0378

288

452

506

7,003

9,688

1286

(375)

9,601

3,936

93,385-5-For the fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital Capital surplus
Balance at beginningof period
Changes duringperiod
Dividends ofsurplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

6,440

6,102

Retainedearnings
67,742

Treasuryshares(437)

Total
shareholders'equity79,847(3,256)(3,256)

9,384

9,384

4(2)

(2)

1722-

4

6,127

15

6,147

6,440

6,107

73,869(421)85,994

Accumulated other comprehensive income
Valuation
Foreign
Deferred gains
difference on
currency
or losses onavailable-for-saletranslation
hedgessecurities
adjustment
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end ofperiod

9,688

1286

Total
Remeasurements accumulated Non-controllinginterestsof definedotherbenefit plans comprehensive
income(375)

9,6013,936

Total netassets

93,385(3,256)9,384(2)22(719)(1)295(242)

(668)

753

85(719)(1)295(242)

(668)

753

6,233

8,969

-

581

(618)

8,932

4,690

99,618-6-Consolidated Statements of Cash Flows(Millions of yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale of non-current assets
Loss on disposal of property,plant and equipment
Loss (gain) on sale of investment securities
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in advances received on
construction contracts in progress
Increase (decrease) in accrued consumption taxes
Other, netSubtotal
Interest and dividends received
Interest paid
Income taxes and paid refund
Net cash provided by (used in) operating activities
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
Proceeds from sale of investment securities
Net decrease (increase) in short-term loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-7-

For the fiscal year
ended March 31, 2023

14,0201,051
115
89(154)25(5)14,694
1,133
115
0
8(299)
(109)

(44)

63

6(26)

(24)
(490)
31(38)(9,135)
(571)
4,517

209(568)
24(21)(1,680)104(2,487)2,198(2,553)(1,057)
(980)
9,482
491
(31)
(3,081)
6,861

1,227
(856)
8,977
568
(24)
(4,425)
5,094

(323)
347
(1,639)
42
(161)
(9)
221
13,104(55)
11,525(319)
342(2,368)1(455)
(9)
545
(50)
(75)
(2,388)

(100)
1,187
(1,268)(392)(2,703)(33)(71)(3,382)

1,004(1,096)(2)(3,256)(57)(93)(3,502)327

303

15,331
39,58954,921(492)
54,921
54,428

Supplementary Information(1) Consolidated Orders Received/Net Sales/Backlog of Orders by works type1.Orders Received
Works Type

(Unit：Millions of yen)
FY2021

FY2022（From: Apr.1,2021
To: Mar.31,2022）（From: Apr.1,2022
To: Mar.31,2023）

AmountProportion

AmountIncrease(Decrease)

Proportion%

AmountRate%%

Power Transmission Works

19,76811.0

24,192

12.8

4,423

22.4

General Electrical Works

108,775

60.8

112,211

59.4

3,435

3.2

Information &Communications Works

28,80416.1

29,597

15.7

793

2.8

Facility & HVAC Works

13,092

7.3

13,334

7.1

242

1.9

Utilities Engineering Service

170,440

95.2

179,335

95.0

8,895

5.2

Others

8,579

4.8

9,451

5.0

872

10.2

Total

179,019100.0

188,787

100.0

9,767

5.5

2.Net Sales

Works TypeFY2021

FY2022（From: Apr.1,2021
To: Mar.31,2022）（From: Apr.1,2022
To: Mar.31,2023）

AmountProportion

AmountIncrease(Decrease)

Proportion%

AmountRate%%

Power Transmission Works

20,28012.1

19,14810.9(1,132)(5.6)

General Electrical Works

100,653

60.1

105,950

60.5

5,296

5.3

Information &Communications Works

27,482

16.4

28,517

16.3

1,035

3.8

Facility & HVAC Works

10,598

6.3

12,052

6.9

1,453

13.7

Utilities Engineering Service

159,015

94.9

165,669

94.6

6,653

4.2

Others

8,579

5.1

9,451

5.4

872

10.2

Total

167,594100.0

175,120

100.0

7,526

4.5

3. Backlog of Orders
Works TypeFY2021（As of Mar.31,2022）

AmountIncrease(Decrease)

FY2022（As of Mar.31,2023）

Proportion

Amount%Proportion

Amount%Rate%

Power Transmission Works

15,14913.920,192

16.5

5,043

33.3

General Electrical Works

69,21563.6

75,476

61.7

6,260

9.0

Information &Communications Works

16,604

15.3

17,683

14.4

1,079

6.5

Facility & HVAC Works

7,787

7.2

9,069

7.4

1,282

16.5

108,756

100.0

122,423100.0

13,666

12.6

Total-8-(2) Forecast of Consolidated Orders Received & Net Sales

Works Type

Orders Received(Unit：Millions of yen)
Net Sales（From: Apr.1,2023
To: Mar.31,2024）（From: Apr.1,2023
To: Mar.31,2024）

AmountIncrease(Decrease)

AmountIncrease(Decrease)

Power Transmission Works

24,5001.3

22,50017.5General Electrical Works

112,500

0.3

111,000

4.8

Information & Communications Works

31,0004.7

30,0005.2

Facility & HVAC Works

13,5001.2

13,000

7.9

Utilities Engineering Service

181,500

1.2

176,500

6.5

Others8,500(10.1)

8,500(10.1)

Total

190,000

0.6

185,000

5.6%-9-%