Note: This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Report [Japanese GAAP]
for the Six Months Ended September 30, 2022
October 26, 2022
Kyudenko Corporation
Listing:
Tokyo Stock Exchange / Fukuoka Stock Exchange
1959
URL:
https://www.kyudenko.co.jp
Naofumi Sato, Executive Officer Representative President
Akira Shirouzu, Executive Officer,
Inquiries:
General Manager of Finance & Accounting Department
TEL:+81(0)-92-523-1239
Scheduled date to file quarterly securities report:
November 8, 2022
Scheduled date to commence dividend payments:
December 1, 2022
Preparation of supplementary material on quarterly financial results:
Yes
Holding of quarterly financial results briefing:
Yes (For institutional investors and analysts)
Company name:Securities code:
Representative:(Yen amounts are rounded down to millions.)

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)
Net sales
Millions of yen(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

Operating income%

Millions of yen%

Millions of yen

Six months ended
168,522
6.5
10,315(11.5)
September 30, 2022
Six months ended
158,194(12.2)
11,658
3.7
September 30, 2021
(Note) Comprehensive income
Six months ended September 30, 2022:
Six months ended September 30, 2021:%

Millions of yen%

12,015(11.5)

11,116

12.9

13,579

8.3

9,843

18.8

¥12,468 million (38.6%)¥8,995 million (-2.1%)

Profit per share
Six months ended September 30, 2022
Six months ended September 30, 2021

Diluted profit per share
Yen

Yen

156.92138.94――(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022
(Reference)
EquityNet assets

Equity ratio

Millions of yen

Millions of yen%

373,595
378,396

250,104
241,194¥247,993 million¥239,134 million

66.4
63.2

As of September 30, 2022
As of March 31, 2022

2. Dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end
Yen

Yen

Year ended March 31, 2022―
50.00
Year ending March 31, 2023―
50.00
Year ending March 31, 2023
(Forecast)(Note) Revisions to the forecast of cash dividends most recently announced:

Year-end

Total

Yen

Yen

Yen

―

50.00

100.00―50.00

100.00None

3. Forecast of consolidated financial results of operations for the fiscal year ending March 31, 2023
(From April 1, 2022 to March 31, 2023)(Percentages indicate change from corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating income Ordinary income
Profit per shareowners of parent% Millions of yen%

Yen

Full year
460,000 22.2
34,5004.1
37,0000.5
25,000(Note) Revisions to the most recently announced consolidated earnings forecast: None

Millions of yen% Millions of yen% Millions of yen(4.6)

352.88―1―

*Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specified subsidiaries resulting in the change in scope of consolidation)(2) Adoption of accounting treatment specific to the preparation of quarterly
consolidated financial statements: Yes(Note) For details, see “Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements” on p.7 of the attached materials.

(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common stock)(i) Total number of issued shares at
Six months ended
the end of the period (including
September 30, 2022
treasury stock)Six months ended(ii) Number of treasury stock at the
September 30, 2022
end of the period(iii) Average number of shares
Six months ended
outstanding during the period(cumulative from the beginning of September 30, 2022
the fiscal year)

70,864,961 shares

19,485 shares

70,845,515 sharesYear ended
March 31, 2022
Year ended
March 31, 2022
Six months ended
September 30, 2021

70,864,961 shares

19,332 shares

70,845,886 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of consolidated earnings forecasts and other special matters
Forward-looking statements such as the earnings outlook included in these materials are based on information available
to the company at the time of their compilation and on certain assumptions that have been determined to be reasonable.
They do not constitute any commitment on the part of the company to achieve specific results. In addition, actual
performance and other results may diverge significantly from forecasts for a variety of reasons. For precautionary
information about the conditions that comprise the assumptions underlying earnings forecasts and about the use of
earnings forecasts, see “Explanation of consolidated earnings forecasts and other forward-looking information” on p.2 of
the attached materials.

―2―

Attached materials ― Contents

1. Qualitative information related to this quarterly financial report .................................................................................... 2(1) Explanation of operating results .............................................................................................................................. 2(2) Explanation of financial position .............................................................................................................................. 2(3) Explanation of consolidated earnings forecasts and other forward-looking information .......................................... 2
2. Quarterly consolidated financial statements and principal notes .................................................................................. 3(1) Quarterly consolidated balance sheet ..................................................................................................................... 3(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ...... 5(3) Notes on the quarterly consolidated financial statements ....................................................................................... 7(Notes on the premise of a going concern) ............................................................................................................. 7(Notes on noteworthy changes in shareholders’ equity) .......................................................................................... 7(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) ....... 7(Changes in accounting policies) ........................................................................................................................... 7
3. Reference ..................................................................................................................................................................... 8
Overview of non-consolidated results...................................................................................................................... 8
4. Supplemental information ............................................................................................................................................. 9(1) Breakdown of consolidated results by business segment and customer................................................................. 9(2) Breakdown of non-consolidated results by business segment and customer ....................................................... 10―1―

1. Qualitative information related to this quarterly financial report(1) Explanation of operating results
Order volume during the six months ended September 30, 2022, rose 48.3% from the corresponding period of theprevious fiscal year to ¥267,323 million. Orders rose in both Kyushu and the Tokyo metropolitan region as we focusedon our goal of securing orders for large, private-sector projects. Although profitability at the time of order receipt has
been impacted by soaring prices of materials and labor, we are focusing on price pass-through and will strive tocontribute to earnings in the future.
Net sales rose 6.5% from the corresponding period of the previous fiscal year to ¥168,522 million. Net sales trended up
thanks to progress on the construction of large projects.
Operating income fell 11.5% from the corresponding period of the previous fiscal year to ¥10,315 million. Although we’re
working to realize cost improvements by taking steps to improve profits, operating income fell due to progress on somelarge projects characterized by a low level of profitability.
Ordinary income fell 11.5% to ¥12,015 million, while quarterly profit attributable to owners of parent rose 12.9% to¥11,116 million. The result reflects posting of an extraordinary gain from the sale of marketable securities owned by thecompany.

(2) Explanation of financial position
Total assets fell ¥4,800 million (1.3%) from the end of the previous consolidated fiscal year to ¥373,595 million due tofactors including a decrease in completed construction contract accounts receivable.
Total liabilities fell ¥13,710 million (10.0%) from the end of the previous consolidated fiscal year to ¥123,491 million due
to factors including a decrease in construction contracts accounts payable.
Total net assets rose ¥8,909 million (3.7%) from the end of the previous consolidated fiscal year to ¥250,104 million as
posting of profit attributable to owners of parent offset payments of dividends.

(3) Explanation of consolidated earnings forecasts and other forward-looking information
There has been no change to the earnings forecast announced along with year-end financial results on April 28, 2022.

―2―2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheet(Millions of yen)Previous fiscal year
As of March 31, 2022

Current 2nd Quarter
As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Securities
Costs of uncompleted construction contracts

39,021

44,635

136,676

108,804

987
5,592

989
12,099Merchandise
Raw materials and supplies

1,107
22,7901,474
26,937

Other
Allowance for doubtful accounts

10,838(34)

12,578(34)

Total current assets

216,979

207,484

Buildings and structures, net
Land33,04829,677

33,63029,927

Other, net

18,11818,640Total property and equipment

80,84482,199Fixed assets
Property and equipment

Intangible assets
Goodwill

755

1,316

Customer related assets
Other

1,739
1,873

1,629
1,884

Total intangible assets

4,368

4,830

Investments and other assets
Investment securities

61,17561,997Long-term loans receivable
Retirement benefit asset

313
6,124

104
7,930

Deferred tax assets
Other

4,288
5,279

4,320
5,720

Allowance for doubtful accounts

(979)

(993)

Total investments and other assets

76,20379,080Total fixed assets
Total assets―3―

161,416

166,110378,396373,595

(Millions of yen)Previous fiscal year
As of March 31, 2022

Current 2nd Quarter
As of September 30, 2022

66,66949,22422,07819,917

Short-term borrowings
Income taxes payable

6,865
7,309

7,995
4,980

Advances received on uncompleted construction contracts
Provision for loss on construction contracts

11,463
187

18,258
66

Other

8,872

7,755

123,446

108,197

3,494
2,782

4,152
3,136

328

452

4,015

4,090

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Electronically recorded obligations

Total current liabilities
Long-term liabilities
Long-term borrowings
Lease obligations
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other

3,134

3,462

Total long-term liabilities

13,754

15,293

137,201

123,491

Share capital
Capital surplus

12,561
12,987

12,561
12,987Retained earnings
Treasury stock, at cost

214,655(9)

222,229(10)

Total shareholders’ equity

240,194

247,767

1,848

2,236

Deferred gains or losses on hedges
Foreign currency translation adjustment

(218)
208

(60)
706

Retirement benefit liability adjustments(2,898)(2,656)

Total accumulated other comprehensive income(loss)(1,059)

226

2,059

2,110

241,194

250,104

378,396373,595

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets―4―(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
Second quarterly consolidated cumulative accounting period(Millions of yen)
Current 2nd Quarter(From April 1, 2022 toSeptember 30, 2022)

Previous 2nd Quarter(From April 1, 2021 toSeptember 30, 2021)
Net sales
Construction contracts

152,637

Other

161,186

5,557

7,336

158,194

168,522

Construction contracts
Other

130,737
3,910

140,181
4,923

Total cost of sales

134,647

145,105

Construction contracts
Other

21,8991,647

21,004
2,412

Total gross profit

Total net sales
Cost of sales

Gross profit

23,54623,417

Selling, general and administrative expenses

11,888

13,101

Operating income

11,658

10,315Interest income
Dividend income

26
527

23
520

Share of profit of entities accounted for using equity method
Gain on investments in partnerships

893
163

396
474

Rent income
Other

169
379

165
529

2,159

2,109

Interest expenses
Extra retirement payments

194
22

195
30

Transfer of allowance for doubtful accounts for affiliates
Settlement payments

―
―

17
87

Other

20

77

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

237

409

13,57912,015

4

176

Gain on sales of investment securities

781

4,246

Total extraordinary income

785

4,422

54
0

88
―

Ordinary income
Extraordinary income
Gain on sales of fixed assets

Extraordinary losses
Loss on disposal and sales of fixed assets
Loss on sales of investment securities
Loss on valuation of investment securities

63

51

Total extraordinary losses

117

139

Profit before income taxes

14,24816,299

Income taxes

4,395

5,169

Profit9,853

11,130

9

13

9,843

11,116

Profit attributable to non-controlling interests
Profit attributable to owners of parent―5―

Quarterly consolidated statement of comprehensive income
Second quarterly consolidated cumulative accounting period

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit liability adjustments
Share of other comprehensive income (loss) of entities
accounted for using equity method
Total other comprehensive income (loss)
Comprehensive income

Previous 2nd Quarter(From April 1, 2021 toSeptember 30, 2021)
9,853(Millions of yen)
Current 2nd Quarter(From April 1, 2022 toSeptember 30, 2022)
11,130(1,304)
164

390
549

361

242

(79)

154

(857)

1,338

8,995

12,4688,968
26

12,40265(of which)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―6―(3) Notes on the quarterly consolidated financial statements(Notes on the premise of a going concern)
None(Notes on noteworthy changes in shareholders’ equity)
None(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses have been calculated by making a reasonable estimate of the effective tax rate after the applicationof tax effect accounting to pre-tax income for the consolidated fiscal year that includes the second consolidated
quarterly accounting period and then applying the effective tax rate used in that estimate to the pre-tax quarterly
income.
(Changes in accounting policies)
We have applied the Application Guidelines for Accounting Standards Related to Calculation of Market Value(Corporate Accounting Standard Application Guideline No. 31 of June 17, 2021; “Application Guidelines forMarket Value Standards”) since the start of the first consolidated quarterly accounting period. In keeping with thetransitional treatment described in Paragraph 27-2 of the Application Guidelines for Market Value Standards, newaccounting policies set forth by the Application Guidelines for Market Value Standards will continue to be appliedin the future. Those changes have had no effect on our quarterly consolidated financial statements.

―7―

3. Reference
Overview of non-consolidated results(Yen amounts are rounded down to millions.)
Non-consolidated financial results for the six months ended September 30, 2022
(From April 1, 2022 to September 30, 2022)(1) Non-consolidated operating results (cumulative)
Net sales
Six months ended
September 30, 2022
Six months ended
September 30, 2021

(Percentages indicate year-on-year changes.)
Operating income

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

142,829

3.1

8,094

(14.0)

9,394(12.7)

9,595

22.3

138,521(13.3)

9,410

1.1

10,762

0.4

7,846

4.4

Profit per share
Six months ended
September 30, 2022
Six months ended
September 30, 2021

Diluted profit
per share

Yen

Yen

135.40―110.72―(2) Non-consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Equity ratio

Millions of yen

Millions of yen%

332,887
336,952

205,647
199,176

61.8
59.1(Note) This overview of non-consolidated operating results is provided for reference purposes only and as such does not
fall within the scope of review of legally mandated disclosures.

―8―4. Supplemental information(1) Breakdown of consolidated results by business segment and customer(i) Net sales
Accounting periodBusiness segment

Six months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)
totalPower distribution line work
Electrical work
HVAC and sanitary facility work
Total, facilities construction
business
Other businesses
Total

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

21,011
82,251
49,374

13.3
52.0
31.2

21,142
83,57756,466

12.5
49.6
33.5

130
1,326
7,092

0.6
1.6
14.4

152,637

96.5

161,186

95.6

8,549

5.6

5,557
158,194

3.5
100

7,336
168,522

4.4
100

1,778
10,32832.0
6.5(ii) Construction orders
Accounting periodBusiness segment

Six months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)
total

21,49592,60866,167
180,271

Power distribution line work
Electrical work
HVAC and sanitary facility work
Total

11.9
51.4
36.7
100

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)total

21,874
145,720
99,728267,323

Increase(Decrease)
Amount(millions of yen)

Rate (%)

378
53,111
33,56087,051

1.8
57.4
50.7
48.3

8.2
54.5
37.3
100

(iii) Construction contract balance at end of period
Accounting period

As of September 30, 2021
Amount(millions of yen)

Business segment

As percent of
total

1,859
295,942
126,447
424,250

Power distribution line work
Electrical work
HVAC and sanitary facility work
Total

0.4
69.8
29.8
100

As of September 30, 2022
Amount(millions of yen)

1,979
347,151
164,653
513,785

As percent of
total

Increase(Decrease)
AmountRate (%)(millions of yen)

0.4
67.6
32.0
100

120
51,20838,20589,534

6.5
17.3
30.2
21.1

(iv) Construction sales by customer
Accounting period
CustomerSix months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)total

21,009131,627
152,637

Kyushu Electric Power Group*
General customers
Total

13.8
86.2
100

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

21,138140,048
161,186

Increase(Decrease)
Amount(millions of yen)

Rate (%)

129
8,420
8,549

0.6
6.4
5.6

13.1
86.9
100

(v) Construction orders by customer
Accounting period
CustomerSix months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)
total

Kyushu Electric Power Group*
General customers
Total

21,806
158,465
180,271

12.1
87.9
100

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

21,704
245,618
267,323

Increase(Decrease)
Amount(millions of yen)

Rate (%)(102)
87,15387,051

(0.5)
55.0
48.3

8.1
91.9
100

(vi) Full-year sales and construction order volume forecast for the fiscal year ending March 2023
Business segment

Sales (millions of yen)

Construction order volume (millions of yen)Power distribution line work

48,00048,000Electrical work

260,000

231,500

HVAC and sanitary facility work

139,000

147,500

Total, facilities construction business

447,000

427,000

Other businesses

13,000Total

460,000*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., Kyushu Electric Power Transmission and Distribution Co., Inc., and Kyuden T&D
Service Co., Inc.

―9―

(2) Breakdown of non-consolidated results by business segment and customer(i) Net sales
Accounting periodBusiness segment

Six months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)total

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Power distribution line work

20,232

14.6

20,276

14.2

43

0.2

Electrical work

76,16155.0

75,281

52.7

(879)

(1.2)

HVAC and sanitary facility work

39,84428.8

44,697

31.3

4,852

12.2

Sub total

136,23898.4

140,254

98.2

4,016

2.9

291

12.8

4,307

3.1

Other businesses

2,283

Total

138,521

1.6

2,574

100

142,8291.8100(ii) Construction orders
Accounting periodBusiness segment

Six months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)
totalPower distribution line work
Electrical work
HVAC and sanitary facility
work

Increase(Decrease)
Amount(millions of yen)

Rate (%)

20,482

13.1

20,765

9.1

283

1.4

84,37554.0

131,55857.4

47,18355.9

51,38032.9

76,67933.5

25,29949.2

72,76646.6

156,237

Total

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

100

229,004100(iii) Construction contract balance at end of period
Accounting periodBusiness segment

As of September 30, 2021
Amount(millions of yen)Power distribution line work

As percent of
total

Increase(Decrease)

As of September 30, 2022
Amount(millions of yen)

As percent of
total

Amount(millions of yen)

Rate (%)

726

0.2

950

0.2

224

30.9

Electrical work

281,92173.4

331,80271.0

49,881

17.7

HVAC and sanitary facility
work

101,48326.4

134,33028.8

32,847

32.4

Total

384,130

82,95321.6

100467,083

100(iv) Construction sales by customer
Accounting period
CustomerSix months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)
total

20,391

Kyushu Electric Power Group*
General customers

115,846

Total

136,238

15.0
85.0
100

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

20,608
119,646
140,254

Increase(Decrease)
Amount(millions of yen)

Rate (%)

14.7

216

1.1

85.3

3,799

3.3

4,016

2.9

100

(v) Construction orders by customer
Accounting period
CustomerSix months ended
September 30, 2021
(April 2021 to September 2021)
AmountAs percent of(millions of yen)total

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
AmountRate (%)(millions of yen)

Kyushu Electric Power Group*

21,036

13.5

20,960

9.2

(75)

(0.4)

General customers

135,201

86.5

208,04390.8

72,841

53.9

Total

156,237

72,76646.6

100

229,004

100*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., Kyushu Electric Power Transmission and Distribution Co., Inc., and Kyuden T&D
Service Co., Inc.

―10―