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

Consolidated Financial Report [Japanese GAAP] for the Fiscal
Year Ended March 31, 2022
April 28, 2022
Company name: Kyudenko Corporation
Listing: Tokyo Stock Exchange / Fukuoka Stock Exchange
Securities code: 1959
URL: https://www.kyudenko.co.jp
Representative: Naofumi Sato, Executive Officer Representative President
Akira Shirouzu, Executive Officer, General Manager of Finance & Tel: +81(0)-92-523-1239
Inquiries:
Accounting Department
Scheduled date to hold regularJune 28, 2022
Scheduled date to commence
June 7, 2022
shareholders’ meeting:dividend payments:
Scheduled date to file annual
June 29, 2022
securities report:
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing:
Yes(For institutional investors and analysts)(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the fiscal year ended March 31, 2022
(From April 1, 2021 to March 31, 2022)(1) Consolidated operating results (Percentages indicate change from corresponding period of the previous fiscal year.)Net sales

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

376,563(3.9)

33,1370.4

36,828

2.6

26,216

4.7

391,901(8.6)

32,998(8.4)

35,906(7.1)

25,042(4.6)

Year ended
March 31, 2022
Year ended
March 31, 2021
(Note) Comprehensive income

Year ended March
31, 2022¥26,641 million (-15.2%)

Year ended March
31, 2021¥31,411 million (34.2%)

Profit per share

Diluted profit per
share

Ratio of profit toequityRatio of ordinary
income to total assets

Ratio of operating
income to sales

Yen

Yen

%

%

%

370.05

─

11.4

9.9

8.8

353.48

─

12.1

9.8

8.4

Year ended
March 31, 2022

¥1,514 million

Year ended
March 31, 2022
Year ended
March 31, 2021

(Reference) Share of profit/loss of entities accounted forusing equity method

Year ended
March 31, 2021

¥694 million(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2022

378,396

241,194

63.2

3,375.43

As of March 31, 2021

366,532

221,74160.0

3,102.61(Reference)

EquityYear ended March 31, 2022 ¥239,134 million

Year ended March 31, 2021

¥219,807 million(3) Consolidated cash flows
Cash flows fromoperating activities
Year ended
March 31, 2022
Year ended
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

5,252(7,536)(10,191)

37,791

9,184(4,232)(10,064)

49,800―1―

2. Dividends
Annual dividends per share

Year ended
March 31, 2021
Year ended
March 31, 2022
Year ending March
31, 2023 (Forecast)

1st quarter- 2nd quarter- 3rd quarterYear-end
end
end
end
Yen
Yen
Yen
Yen

Ratio of
Dividend ratio dividends to net(consolidated)assets(consolidated)

Total
dividends

Total
Yen

Millions of yen

%

%

─

50.00

─

50.00 100.00

7,086

28.3

3.4

─

50.00

─

50.00 100.00

7,086

27.0

3.1

─

50.00

─

50.00 100.00

Note 1: Fiscal year ended March 31, 2022
2: Fiscal year ending March 31, 2023 (forecast)

28.9

Breakdown of year-end dividend
Breakdown of interim dividend
Breakdown of year-end dividend

Normal dividend: ¥50.00
Normal dividend: ¥50.00
Normal dividend: ¥50.00

3. Forecast of consolidated financial results 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 toOperating income
Ordinary income
Profit per shareowners of parent

Net sales
Millions of yen

Full year

460,000% Millions of yen

22.2

34,500%Millions of yen%

Millions of yen

%

Yen

4.1

37,0000.5

25,000(4.6)

352.88*Notes(1) Changes in important subsidiaries during the fiscal year under review (changes in specified
subsidiaries resulting in changes in the scope of consolidation): NoneNote: For details see “Important information used to compile consolidated financial statements” on p.15 of the attachedmaterials.

(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to: Yesaccounting standards and other regulations:: None(ii) Changes in accounting policies due to other reasons:(iii) Changes in accounting estimates:: None(iv) Restatement:: None(3) Number of issued shares (common stock)(i) Total number of issued shares at the endof the period (including treasury stock)(ii) Number of treasury stock at the end of theperiod(iii) Average number of shares outstanding
during the period

Year ended
March 31, 2022

70,864,961sharesYear ended
March 31, 2021

70,864,961 sharesYear ended
March 31, 2022

19,332sharesYear ended
March 31, 2021

19,025 sharesYear ended
March 31, 2022

70,845,795sharesYear ended
March 31, 2021

70,846,026 shares(Reference) Overview of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2022 (From April 1, 2021 to March 31,
2022)(Percentages indicate change from corresponding period of the previous fiscal year.)(1) Non-consolidated operating results
Net salesYear ended March 31, 2022
Year ended March 31, 2021

Operating income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

322,568
337,432

(4.4)
(7.6)

26,52726,0401.9(11.9)

28,82228,3081.8(11.5)

20,69020,393

1.5
6.1

Profit per share
Year ended March 31, 2022
Year ended March 31, 2021

Ordinary income

Diluted profit per share

Yen

Yen

291.97287.79──

―2―

(2) Non-consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

Equity ratio

Net assets per share%

Year ended March 31, 2022
336,952
199,176
59.1
Year ended March 31, 2021
332,457
187,678
56.5(Reference) Equity Year ended March 31, 2022 ¥199,176 million
Year ended March 31, 2021

*
*

Yen

2,810.67
2,648.40¥187,678 million

Financial results reports are exempt from audits 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 “Overview of operating results and other information” on p.2 of the attached materials.

―3―

Attached materials ― Contents
1. Overview of operating results ............................................................................................................................... 5(1) Overview of operating results for the current fiscal year .................................................................................. 5(2) Overview of financial position during the current fiscal year ............................................................................ 6(3) Overview of cash flows during the current fiscal year ...................................................................................... 6(4) Outlook for results during the next fiscal year .................................................................................................. 7(5) Basic policy on profit allocation and dividends for the current and upcoming fiscal years ............................... 8
2. Basic approach to selection of accounting standards ........................................................................................... 8
3. Consolidated financial statements and principal notes ......................................................................................... 9(1) Consolidated balance sheet ............................................................................................................................ 9(2) Consolidated statement of income and consolidated statement of comprehensive income .......................... 11(3) Statement of changes in consolidated shareholders’ equity, etc. ................................................................... 14(4) Consolidated cash flow statement ................................................................................................................. 16(5) Notes on the consolidated financial statements ............................................................................................. 18(Notes on the premise of a going concern)...................................................................................................... 18(Important information used to compile consolidated financial statements) ..................................................... 18(Changes in accounting policies) ..................................................................................................................... 18(Change in labeling method) ........................................................................................................................... 19(Business segment information) ...................................................................................................................... 19(Per-share data) .............................................................................................................................................. 21(Important subsequent events) ........................................................................................................................ 21
4. Other................................................................................................................................................................... 22
Reference: Production, orders, and sales status ................................................................................................ 22―4―

1. Overview of operating results(1) Overview of operating results for the current fiscal year
During the current fiscal year, business activities came under the pressure of constraints resulting from the COVID19 pandemic, which has continued since 2020. The Group experienced delayed starts and progress in some large
projects.
Recognizing the realities of this business environment and taking into account a summary of FY2020 as the first yearof the current Medium-term Business Plan (which lasts for five years, from FY2020 to FY2024), the Group identified
FY2021, the second year of the plan, as a time for dealing with environmental changes and realizing a recovery. As aresult, we established the following key priorities and worked together to make progress towards their realization:
strengthening and enhancing our ability to earn orders in the domestic facilities construction business, deepening
measures to improve profits, strengthening human resources development, advancing the digital transformation (DX),strengthening governance, and eradicating serious accidents.
This approach yielded the following results during the current fiscal year:(Consolidated financial results)
Construction orders¥375,474 million(up 15.5% from the previous year)

Sales¥376,563 million(down 3.9% from the previous year)

Operating income¥33,137 million(up 0.4% from the previous year)

Ordinary income¥36,828 million(up 2.6% from the previous year)

Profit attributable to owners of parent¥26,216 million(up 4.7% from the previous year)

Results by business segment were as follows:(Facilities construction business)
Construction order volume rose ¥50,315 million (15.5%) from the previous consolidated fiscal year to ¥375,474 million
as sales and engineering departments adopted a unified approach to sales in order to earn orders for large
redevelopment projects and projects that had been delayed due to the COVID-19 pandemic, both of which we had
identified as priority areas.
Sales fell ¥12,891 million (3.4%) from the previous year to ¥364,440 million as a result of challenges including delaysin the start of construction of large solar installations and difficulty making progress due to delays in procurement
resulting from material and equipment shortages and a comparatively large number of projects for which we recognize
revenue based on progress that remain in the early stages of construction.
Segment profit (operating income) rose 42 million (0.1%) from the previous year to ¥30,528 million as renewed
implementation of existing measures conceived to improve profitability combined with efforts by the Head Office’s
Technology Management Department to work closely with field personnel to manage construction and boost profits
while taking advantage of digital technologies to offset a decline in sales.
(Other)Sales fell ¥2,447 million (16.8%) from the previous year to ¥12,123 million due to declines in the renewable energy
and software development businesses.
Segment profit (operating income) rose ¥130 million (5.5%) from the previous year to ¥2,501 million as improved
profitability in the business hotel and other facility operation business and higher profit margins in the materials andequipment sales business.
Sales fell ¥2,372 million due to the application of the Accounting Standards for Revenue Recognition and otheraccounting standards.

―5―

(2) Overview of financial position during the current fiscal year
Overview of assets, liabilities, and net assets(Assets)
Current assets rose ¥4,405 million from the end of the previous consolidated fiscal year to ¥216,979 million as aresult of factors including an increase in notes receivable, accounts receivable from completed construction contracts
and merchandise.
Fixed assets rose ¥7,458 million from the end of the previous year to ¥161,416 million as a result of factors including
an increase in retirement benefit assets.
As a result of the above, total assets rose ¥11,863 million from the end of the previous year to ¥378,396 million.
(Liabilities)
Current liabilities fell ¥1,915 million from the end of the previous consolidated fiscal year to ¥123,446 million due tofactors including a decrease in electronically recorded obligations and advances received on uncompleted
construction contracts.
Long-term liabilities fell ¥5,674 million from the end of the previous year to ¥13,754 million due to factors including
the transfer of long-term borrowings to short-term borrowings.
As a result of the above, total liabilities fell ¥7,589 million from the end of the previous year to ¥137,201 million.
(Net assets)
Total net assets rose ¥19,453 million from the end of the previous year to ¥241,194 million due to factors including
posting of profit attributable to owners of parent.

(3) Overview of cash flows during the current fiscal year
During the current fiscal year, cash and cash equivalents (“funds”) fell ¥12,008 million from the end of the previous
consolidated fiscal year to ¥37,791 million.
(Cash flows from operating activities)
Funds gained from operating activities totaled ¥5,252 million (a decrease in income of ¥3,931 million from theprevious consolidated fiscal year).
This result primarily reflects the fact that posting of profit before income taxes exceeded increases inventory assets
and payment of income taxes.
(Cash flows from investing activities)
Funds used in investing activities totaled ¥7,536 million (an increase in expenditures of ¥3,304 million from theprevious consolidated fiscal year).
This change was primarily the result of purchases of investment securities and property and equipment.
(Cash flows from financing activities)
Funds used in financing activities totaled ¥10,191 million (an increase in expenditures of ¥127 million from theprevious consolidated fiscal year). This change was primarily the result of dividend payments.

―6―(4) Outlook for results during the next fiscal year
Concerning the Group’s outlook with regard to the COVID-19 pandemic, we expect business activities to continue tobe constrained to a certain extend by the implementation of anti-infection measures. That said, we accept that current
conditions are likely to embody the new, post-COVID normal and recognize the need to address anticipated effects onsuch aspects of our operations as sales, price competition, and construction delays.
At the same time, economic sanctions imposed in response to Russia’s invasion of Ukraine and other impacts arepushing up the prices of a variety of goods and services, including energy and food, and like others the Group is seeing
increases in the cost of materials and equipment and delays in delivery times. In addition, intensification of competition
for orders and a trend towards ever-larger construction projects are fueling concerns with regard to the impact on future
profitability.
Recognizing the realities of this environment, the Group has adopted “implementing business reforms that
accommodate environmental changes” as the theme for FY2022, the third year of its Medium-term Business Plan, andit’s working steadily to resolve the social issues it has identified as well as the priority issues set forth in the Plan.
The Group has identified a number of environmental changes that will affect its operations in FY2022, including thenew, post-COVID normal; carbon neutrality; environmental management; large-scale urban developments such as the“Tenjin Bing Bang”; semiconductor-related construction; and the war in Ukraine. Going forward, we will undertake
business reforms that accommodate those changes as we embrace the challenges posed by new ideas and values.
Specifically, we will work to improve productivity by utilizing the digital transformation (DX) and simplifying workflows,
to increase corporate value through diversity, and to build an appealing workplace environment through workstylereforms.
Despite the fact that earning orders for the “Tenjin Big Bang” and other urban redevelopment projects and for large,
semiconductor-related projects will be essential as we look to maintain and expand the scale of our businesses, material
and labor costs are soaring. To get past these challenges, it will be critical to reliably earn orders for the projects wetarget, to carefully manage progress in associated construction, and to secure profits.
To that end, we've identified improving productivity through the implementation of business reforms and pursuingprice negotiations that reflect soaring material and labor costs as our two top-priority initiatives for FY2022, and we’ll be
dedicating our full resources to their implementation. Specifically, we will pursue radical workstyle reforms, including by
thoroughly reassessing business processes and optimizing companywide and departmental operations; work to makeeffective use of our construction capabilities by strengthening efforts to build personnel structures that enableapproaches that cut horizontally across the company; and conduct price negotiations that reflect soaring material prices.
As a result of the above initiatives, we expect the following operating results for the upcoming fiscal year (ending
March 31, 2023):(Consolidated financial results)
Construction orders¥427.0 billion(up 13.7% from the current fiscal year)

Sales¥460.0 billion(up 22.2% from the current fiscal year)

Operating income¥34.5 billion(up 4.1% from the current fiscal year)

Ordinary income¥37.0 billion(up 0.5% from the current fiscal year)

Profit attributable to owners of parent¥25.0 billion(down 4.6% from the current fiscal year)―7―(5) Basic policy on profit allocation and dividends for the current and upcoming fiscal years
With regard to the allocation of profits, we strive to maintain appropriate financial structures and return profits toshareholders while setting aside sufficient internal reserves to strengthen our management base and expand ourbusinesses in order to enhance performance.
With regard to dividends, we make comprehensive determinations based on such factors as the businessenvironment, operating results, and financial position and endeavor to meet the expectations of shareholders by offering
stable dividends on an ongoing basis using a consolidated payout ratio of 25% as a guideline.
In keeping with this basic policy, the year-end dividend for the current fiscal year will be ¥50 per share, which combinedwith the previously paid interim dividend of ¥50 per share will yield an annual dividend of ¥100 per share.
We plan to offer an annual dividend of ¥100 per share (including an interim dividend of ¥50) for the upcoming fiscal
year (ending March 31, 2023) based on current operating results forecasts and other information.

2. Basic approach to selection of accounting standards
Most of the Group’s business is conducted in Japan, and most of the interested parties, including creditors andbusiness partners, operate in Japan. As a result, we apply Japanese accounting standards so that consolidated financial
statements from multiple fiscal years and for multiple businesses can be compared.
Our policy going forward will be to examine potential future use of international accounting standards as appropriate
based on considerations such as the domestic and international situation and adoption of international accounting
standards by other companies in our industry.

―8―

3. Consolidated financial statements and principal notes(1) Consolidated balance sheet(Millions of yen)Previous fiscal year
As of March 31, 2021

Current fiscal year
As of March 31, 2022

50,90539,021

130,705

136,676

―
5,910

987
5,592

Merchandise
Raw materials and supplies

1,040
14,5791,107
22,790Other
Allowance for doubtful accounts

9,451
(18)

10,838(34)

212,574

216,979

Buildings and structures
Machinery, vehicles, tools, furniture and fixtures

70,681
40,77173,06041,059Land
Lease assets

28,887
7,190

29,677
7,628

Construction in process
Total cumulative depreciation

1,061(67,894)

1,112(71,694)

Total property and equipment

80,69880,844

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

Total current assets
Fixed assets
Property and equipment

Intangible assets
Goodwill―

755

Customer-related assets
Other

―
1,729

1,739
1,873

Total intangible assets

1,729

4,368

Investment securities
Long-term loans receivable

63,194
1,256

61,175313

Retirement benefit assets
Deferred tax assets

554
3,507

6,124
4,288

Other
Allowance for doubtful accounts

4,781(1,764)

5,279
(979)

Total investments and other assets

71,53076,203

153,957

161,416

366,532

378,396

Investments and other assets

Total fixed assets
Total assets―9―

(Millions of yen)Previous fiscal year
As of March 31, 2021

Current fiscal year
As of March 31, 2022

63,55966,66923,59322,078

Short-term borrowings
Income taxes payable

1,774
7,145

6,865
7,309

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

15,381
60

11,463187

Other

13,845

8,872

Total current liabilities

125,361

123,446

Long-term borrowings
Lease obligations

10,140
2,711

3,494
2,782

Provision for retirement benefits for directors (and other officers)
Retirement benefit liability

300
4,051

328
4,015

Other

2,225

3,134

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts andotherElectronically recorded obligations

Long-term liabilities

Total long-term liabilities

19,42913,754

144,790

137,201

Share capital
Capital surplus

12,561
12,987

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

195,601(8)

214,655(9)

Total shareholders’ equity

221,141

240,194

Total liabilities
Net assets
Shareholders' equity

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

3,998

1,848

Deferred gains or losses on hedges
Foreign currency translation adjustment

(381)
105

(218)
208

Retirement benefit liability adjustments(5,057)(2,898)

Total accumulated other comprehensive loss

(1,334)(1,059)

1,933

2,059

221,741

241,194366,532

378,396

Non-controlling interests
Total net assets
Total liabilities and net assets―10―(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income

Net sales
Construction contracts

Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)(Millions of yen)
Current fiscal year
(From April 1, 2021 toMarch 31, 2022)

377,331364,440

Other

14,57012,123

Total net sales

391,901

376,563

Construction contracts
Other

324,266
11,003

310,615
8,586

Total cost of sales

335,269

319,201

Gross profit
Construction contracts

Cost of sales

53,06453,824

Other

3,567

3,536

Total gross profit

56,631

57,361

Selling, general and administrative expenses

23,63324,224

Operating income

32,99833,137

91
723

48
747

694
1,054

1,514
910

313
884

329
775

3,760

4,326

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Gain on investments in partnerships
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses

411

387

Extra retirement payments
Payment fees

90
6

84
75

Transfer of allowance for doubtful accounts from affiliates
Other

236
109

35
52

Total non-operating expenses
Ordinary income

―11―

853

635

35,90636,828

Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)
Extraordinary income
Gain on sales of fixed assets(Millions of yen)
Current fiscal year
(From April 1, 2021 toMarch 31, 2022)

55

4

Gain on sales of investment securities

1,294

811

Total extraordinary income

1,350

816

Loss on disposal and sales of fixed assets
Loss on sales of investment securities

184
66

286
36

Loss on valuation of investment securities
Penalty

133
89

489
―

Total extraordinary losses

472

811

Profit before income taxes

36,78436,833

Corporate, residence, and business taxes

11,337

11,365Extraordinary losses

Income taxes - deferred

258

(871)

Total income taxes

11,596

10,493

Profit25,18826,339145

123

25,042

26,216

Profit attributable to non-controlling interests
Profit attributable to owners of parent―12―

Consolidated statement of comprehensive income
Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)
25,188(Millions of yen)
Current fiscal year
(From April 1, 2021 toMarch 31, 2022)
26,339Valuation difference on available-for-sale securities
Foreign currency translation adjustment

3,243
(120)

(2,146)131

Retirement benefit liability adjustments
Share of other comprehensive income (loss) of entities
accounted for using equity method
Total other comprehensive income (loss)

2,928

2,158

171

159

6,223

302

31,411

26,641

31,276
134

26,490151

ProfitOther comprehensive income

Comprehensive income(of which)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―13―(3) Statement of changes in consolidated shareholders’ equity, etc.
Previous fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Retainedearnings

12,561

12,982

177,642

Balance at start of fiscal year under review

Treasury Total shareholders’
stock, at costequity(8)

203,179

Change during fiscal year under review
Dividend of surplus(7,086)(7,086)

Profit attributable to owners of parent

25,042

25,042

Purchase of treasury stock

(0)

(0)

Retirement of treasury stock―

Changes in the scope of consolidation

2

2

Transfers from retained earnings to capital surplus―

Change in equity due to acquisition of consolidated
subsidiaries’ treasury stock

3

3

Change in equity due to acquisition of consolidated
subsidiaries’ shares

1

1

Increase in surplus of subsidiaries due to changes inaccounting period―

Change in items other than shareholders’ equity during
fiscal year under review (net)―Total change during fiscal year under review
Balance at end of fiscal year under review―

417,958(0)

17,962

12,561

12,987

195,601(8)

221,141

Accumulated other comprehensive income

Balance at start of fiscal year under review

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges745(540)

NonTotal
Foreign Retirement
accumulated controllingcurrency
benefitinterests
othertranslation
liability
comprehensive
adjustment adjustments
loss
212

(7,985)(7,567)

1,831

Total net
assets197,442

Change during fiscal year under review
Dividend of surplus(7,086)

Profit attributable to owners of parent

25,042

Purchase of treasury stock(0)

Retirement of treasury stock―

Changes in the scope of consolidation

2

Transfers from retained earnings to capitalsurplus―

Change in equity due to acquisition of
consolidated subsidiaries’ treasury stock

3

Change in equity due to acquisition of
consolidated subsidiaries’ shares

1

Increase in surplus of subsidiaries due tochanges in accounting period―

Change in items other than shareholders’equity during fiscal year under review (net)

3,252

159

(106)

2,928

6,233

102

6,336

Total change during fiscal year under review

3,252

159

(106)

2,928

6,233

102

24,298

Balance at end of fiscal year under review

3,998

(381)

105

(5,057)(1,334)

1,933

221,741―14―

Current fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at start of fiscal year under review

12,561

Capital surplus

Retainedearnings

12,987

195,601

Treasury Total shareholders’
stock, at costequity(8)

221,141

Change during fiscal year under review
Dividend of surplus(7,086)(7,086)

Profit attributable to owners of parent

26,216

26,216

Purchase of treasury stock

(1)

(1)

Retirement of treasury stock―

Changes in the scope of consolidation

(76)

(76)

Transfers from retained earnings to capital surplus―

Change in equity due to acquisition of consolidated
subsidiaries’ treasury stock―

Change in equity due to acquisition of consolidated
subsidiaries’ shares―

Increase in surplus of subsidiaries due to changes inaccounting period―

Change in items other than shareholders’ equity during
fiscal year under review (net)―Total change during fiscal year under review
Balance at end of fiscal year under review――

19,054(1)

19,052

12,561

12,987

214,655(9)

240,194

Accumulated other comprehensive income

Balance at start of fiscal year
under review
Change during
under review

fiscalValuationdifference on
available-forsale securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Retirement
benefit liability
adjustments

3,998

(381)

105

(5,057)

Total accumulated Non-controllinginterests
othercomprehensive
loss(1,334)

1,933

Total net
assets221,741year

Dividend of surplus(7,086)

Profit attributable to ownersof parent

26,216

Purchase of treasury stock(1)

Retirement of treasury stock―

Changes in the scope of
consolidation(76)

Transfers from retained
earnings to capital surplus―

Change in equity due toacquisition of consolidated
subsidiaries’ treasury stock―

Change in equity due toacquisition of consolidated
subsidiaries’ shares―

Increase in surplus ofsubsidiaries due to changes
in accounting period―

Change in items other thanshareholders’ equity during
fiscal year under review (net)(2,149)

162

102

2,158

274

125

400

Total change during fiscal year
under review(2,149)

162

102

2,158

274

125

19,453

Balance at end of fiscal year
under review

1,848

(218)

208

(2,898)(1,059)2,059

241,194―15―

(4) Consolidated cash flow statement

Cash flows from operating activities
Profit before income taxes
Depreciation expenses
Increase/decrease in allowance for doubtful accounts (with figuresin parentheses indicating decreases)
Increase/decrease in retirement benefit assets (with figures inparentheses indicating increases)
Increase/decrease in retirement benefit liabilities and provision for
retirement benefits for directors (and other officers)(with figures inparentheses indicating decreases)
Increase/decrease in provision for loss on construction contracts(with figures in parentheses indicating decreases)
Gain/loss on investments in partnerships (with figures inparentheses indicating gains)
Interest income and dividend income
Interest expenses
Foreign exchange gain or loss (with figures in parentheses
indicating gains)Share of profit/loss of entities accounted for using equity method(with figures in parentheses indicating profit)
Gain/loss on sale of property and equipment (with figures inparentheses indicating gains)
Loss on disposal of property and equipment
Gain/loss on valuation of securities and investment securities (withfigures in parentheses indicating gains)
Gain/loss on sale of securities and investment securities (withfigures in parentheses indicating gains)
Increase/decrease in accounts receivable (with figures inparentheses indicating increases)
Increase/decrease in costs of uncompleted construction contracts(with figures in parentheses indicating increases)
Increase/decrease in inventory assets (with figures in parentheses
indicating increases)
Increase/decrease in accounts payable (with figures inparentheses indicating decreases)
Increase/decrease in advances received on uncompleted
construction contracts (with figures in parentheses indicating
decreases)
Increase/decrease in long-term accounts payable (with figures inparentheses indicating decreases)
Increase/decrease in unpaid or uncollected consumption tax

Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)(Millions of yen)
Current fiscal year
(From April 1, 2021 toMarch 31, 2022)

36,78436,833

5,739

5,791

233

(152)

―

(2,860)(3,343)

(907)

48

123

(1,054)

(910)

(814)

(796)

411

387

(60)

(126)

(431)

(1,201)

(29)

(4)

157

282

133

489

(1,228)

(775)

8,915

(4,786)

1,374

585

(12,964)(8,266)(14,206)

153(8,043)(3,923)

(11)

(2)

4,020

(6,036)

Other

3,706

2,298

Sub total

19,335

16,193

Interest income and dividend income received
Interest paid
Income taxes paid
Cash flows from operating activities

―16―

793

796

(411)
(10,533)(387)(11,350)

9,184

5,252

Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)(Millions of yen)
Current fiscal year
(From April 1, 2021 toMarch 31, 2022)(1,137)(1,352)921(2,945)

1,732(3,931)

103
(4)

169
(210)

Expenditures on purchases of investment securities
Income from sale of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Expenditures on sales of subsidiaries’ shares resulting inchanges in the scope of consolidation
Expenditures on long-term loans
Income from collection of long-term loans(6,458)6,534(4,817)
3,992―(2,871)

(47)

―

(167)
93

(127)
153

Other

(1,124)(273)

Cash flows from investing activities(4,232)(7,536)

(5)

(34)

55

Cash flows from investing activities
Expenditures on deposits of time deposits
Income from redemption of time deposits
Expenditures on purchases of property and equipment
Income from sale of property and equipment
Expenditures on disposal of property and equipment

Cash flows from financing activities
Net increase/decrease in short-term borrowings (with figuresin parentheses indicating decreases)
Income from long-term borrowings
Expenditures on repayment of long-term loans
Expenditures on purchases of treasury stock(1,769)(0)―(1,811)(1)

Dividends paid
Dividends paid to non-controlling interests(7,084)(4)(7,086)
(2)

(21)

(22)

(1)

―

Expenditures on refunds to non-controlling interests
Expenditures on purchases of subsidiaries’ shares not
resulting in changes in the scope of consolidation
Other(1,232)(1,233)

Cash flows from financing activities(10,064)(10,191)

(51)

301

(5,164)(12,175)

54,96449,800―166

49,80037,791

Translation differences related to cash and cash equivalents
Increase/decrease in cash and cash equivalents (with figures inparentheses indicating decreases)
Cash and cash equivalents at start of period
Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period―17―(5) Notes on the consolidated financial statements(Notes on the premise of a going concern)
None(Important information used to compile consolidated financial statements)
With the exception of the following, disclosures have been omitted due to the absence of important changes to theinformation provided in the most recent annual securities report (submitted on June 28, 2021).
(Changes related to the scope of consolidation)
The following three non-consolidated subsidiaries have been reclassified as consolidated subsidiaries: KYUDENKO
MALAYSIA SDN.BHD.; KYUDENKO VIETNAM CO., LTD.; and KYUDENKO (THAILAND) CO., LTD.
We acquired shares of Tokyo-based CHUORIKA KOUGYO Co., Ltd. to make it a consolidated subsidiary, along with
its subsidiaries CHUO SHOBO KIKO Co., Ltd.; TOKYO CHUORIKA KOUGYO Co., Ltd.; TOKYO－NISHI CHUORIKA
KOUGYO Co., Ltd.; SAITAMA CHUORIKA KOUGYO Co., Ltd.; TOCHIGI CHUORIKA KOUGYO Co., Ltd.; CHUORIKA
KOUGYO (SENDAI) Co., Ltd.; MIE CHUORIKA KOUGYO Co., Ltd.; and HAMAMATSU CHUORIKA KOUGYO Co., Ltd.
This acquisition brought the number of subsidiaries to 58.
(Changes in accounting policies)(Application of Accounting Standards for Revenue Recognition and other accounting standards)
We applied the Accounting Standards for Revenue Recognition (Corporate Accounting Standard No. 29 of March
31, 2020; “Revenue Recognition Standards”) from the start of the current fiscal year, requiring us to recognize
funds that are expected to be received in return for a good or service as revenue at such time as control of thepromised good or service is transferred to the customer.
Application of this standard has resulted in a change in the method used to recognize revenue. Previously,
progress in construction served as the basis on which we recognized revenue received in connection withconstruction contracts when the reliability of results for such progress was recognized. Under the new approach,in cases where control over goods or services is transferred to customers over a certain period of time, revenue isrecognized over that period as the obligation to transfer goods or services to the customer is fulfilled. Progress
towards fulfillment of obligations is measured based on the construction costs incurred by the last day of eachreporting period as a percentage of total anticipated construction costs. In the event that we cannot reasonably
estimate progress towards the fulfillment of obligations but expect to recoup costs, we recognize revenue on a cost
recovery basis.
Similarly, in the past we recognized some revenue from equipment sales and other sources in toto, but we have
now adopted a new approach in which net revenue is recognized based on the result of determining our role insupplying the good or service in question to each customer (whether we are acting as the primary supplier or an
agent).
With regard to our application of the Accounting Standards for Revenue Recognition, we’re complying with thetransitional treatment described in the note to Paragraph 84 of the standard. As a result, we’ve applied the new
accounting policies starting with the balance at the beginning of the accounting period under review by adding(subtracting) the cumulative monetary effect of applying the new policies retroactively from the beginning of thecurrent fiscal year to (from) retained earnings as of the beginning of the current fiscal year.
This process caused both net sales and cost of sales during the current fiscal year to fall ¥2,372 million, with theresult that application of the new standard had no effect on operating income, ordinary income, or profit before
income taxes. Application of the new standard also did not affect the balance of retained earnings at the beginningof the fiscal year under review.
In accordance with the transitional treatment set forth in Paragraph 89-2 of the Accounting Standards for
Revenue Recognition, we have not used the new labeling method to reclassify accounts for the previous fiscal year.
In accordance with the transitional treatment set forth in Paragraph 89-3 of the Accounting Standards for Revenue
Recognition, no notes concerning revenue recognition during the previous fiscal year have been included.

―18―

(Application of Accounting Standards Related to Calculation of Market Value)
We have applied the Accounting Standards Related to Calculation of Market Value (Corporate AccountingStandard No. 30 of July 4, 2019; “Market Value Standards”) since the start of the consolidated accounting period
under review. In keeping with the transitional treatment described in Paragraph 19 of the Market Value Standards
and in Paragraph 44-2 of the Accounting Standards Related to Financial Products (Corporate Accounting Standard
No. 10 of July 4, 2019), new accounting policies set forth by the Market Value Standards will continue to be appliedin the future. Those changes have had no effect on our consolidated financial statements.
(Change in labeling method)(Consolidated statement of income)
Payment fees, which were included in the “Other” category under “Non-operating expenses” for the previous
consolidated fiscal year, are noted in their own category for the current fiscal year due to their increased importance. The
categories used on the previous year’s consolidated financial statements have been reclassified to reflect this change inlabeling method.
As a result, the “Other” category under “Non-operating expenses” on the statement of income for the previous year,
which totaled ¥115 million, has been broken out into two categories: “Payment fees” (¥6 million) and “Other” (¥109 million).
(Business segment information)
1. Overview of reporting segments
It is possible to obtain discrete financial information for the reporting segments that make up the Group, which are
subject to regular study by the Board of Directors as it makes decisions concerning the allocation of management
resources and assesses performance.
The Head Office formulates medium- and long-term business strategies for the Group and carries out businessactivities involving facilities construction in cooperation with consolidated group companies, with a focus on local
worksites.
Business activities in other industries, including the sale of construction-related materials and equipment, real-estate
sales, and the generation of renewable energy, are carried out by consolidated group companies as independent
business units.
Consequently, the Group, which consists of several business-specific segments, aggregates multiple businesssegments that are generally similar in terms of elements such as economic characteristics and services and treats themas the “facilities construction business” reporting segment so that it can provide appropriate information, for example
descriptions of associated business activities.
The facilities construction business encompasses primarily design and installation for electrical work such as power
distribution line work, indoor wiring work, and telecommunications work as well as HVAC facility work such as spaceconditioning, cooling and heating, water supply and wastewater sanitary equipment, and water treatment work.
2. Methods used to calculate sales, profit, assets, liabilities, and other amounts for each business segment
The accounting treatments used for reported business segments are generally the same as those described in“Important information used to compile consolidated financial statements.”
However, as described in changes in accounting policies, revenue recognition and other standards have been applied
from the start of the current fiscal year, resulting in changes to accounting treatments related to revenue recognition
and associated changes in the methods for calculating profits and losses for business segments.
As a result of these changes, sales in the “Other” segment shrank ¥2,372 million during the current fiscal year
compared to the previous method.
Reporting segment profits are given as operating income figures. Inter-segment internal rates of return and transfers
are based on actual market prices.

―19―

3. Information related to sales, profit, assets, liabilities, and other amounts for each reporting segment
Previous fiscal year (from April 1, 2020 to March 31, 2021)(Millions of yen)
Reporting segment
Facilities construction business

Other(Note 1)

Total

Adjustment(Note 3)Total

Net sales
Sales to outside customers

377,331

14,570391,901―

391,901

Inter-segment internal sales
and transfers

804

4,977

5,782

(5,782)―

378,136

19,548397,684(5,782)391,901

30,4852,371

32,856142

32,998Depreciation expenses

3,559

2,294

5,853

(114)

5,739

Amortization of goodwill

64

41

106

―

106

Total
Segment profit
Other items

Depreciation of customer――───
related assets
Note 1: The “Other” category comprises a business segment that is not included in any other reporting segment andconsists of businesses such as the following: sales of construction-related materials and equipment, real-estate
sales, generation of renewable energy, temporary staffing, software development, environmental analysis andmeasurement, health care, golf course operation, business hotel operation, and retail facility planning andoperation.
2. Segment assets and segment liabilities are not listed because assets and liabilities are not allocated to thebusiness segment in question.
3. The ¥142 million adjustment to segment profit serves to eliminate inter-segment transactions.
4. Segment profit is derived from operating income as listed on the consolidated statement of income andadjustments.
Current fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Reporting segment

Other(Note 1)

Total

364,440

12,123

376,563―376,563

819

5,073

5,893

(5,893)―

365,260

17,196

382,456(5,893)

376,563

30,5282,501

33,029107

33,137

Depreciation expenses

3,794

2,104

5,899

(108)

5,791

Amortization of goodwill

107

―

107

―

107

Facilities construction business

Adjustment(Note 3)Total

Net sales
Sales to outside customers
Inter-segment internal sales andtransfers
Total
Segment profit
Other items

Depreciation of customer190
―
190
―
190
related assets
Note 1: The “Other” category comprises a business segment that is not included in any other reporting segment andconsists of businesses such as the following: sales of construction-related materials and equipment, real-estate
sales, generation of renewable energy, temporary staffing, software development, environmental analysis andmeasurement, health care, golf course operation, business hotel operation, and retail facility planning andoperation.

―20―

2. Segment assets and segment liabilities are not listed because assets and liabilities are not allocated to thebusiness segment in question.
3. The ¥107 million adjustment to segment profit serves to eliminate inter-segment transactions.
4. Segment profit is derived from operating income as listed on the consolidated statement of income andadjustments.
(Per-share data)
Previous fiscal year
(From April 1, 2020 to March 31, 2021)
Net assets per share

Current fiscal year
(From April 1, 2021 to March 31, 2022)¥3,102.61¥3,375.43¥353.48¥370.05

Profit per share

Note 1: Diluted profit per share is not listed as the company has no potential shares.
2. Profit per share is calculated as follows:
Previous fiscal year
(From April 1, 2020 toMarch 31, 2021)

Current fiscal year
(From April 1, 2021 toMarch 31, 2022)

25,042

26,216――

Profit attributable to owners of parent related to common stock(millions of yen)

25,042

26,216

Average number of common stock shares outstanding during theperiod (thousands of shares)

70,846

70,845End of previous fiscal
year(March 31, 2021)

End of current fiscal
year(March 31, 2022)

221,741

241,194

1,933

2,059

Profit per share
Profit attributable to owners of parent(millions of yen)Amount not attributable to ordinary shareholders (millions of yen)

3. Net assets per share are calculated as follows:

Total net assets (millions of yen)Amount excluded from total net assets (millions of yen)
(Of which, share warrants [millions of yen])(Of which, non-controlling interests [millions of yen])

(―)

(―)

(1,933)(2,059)Net assets at end of period related to common stock (millions of yen)

219,807239,134

Number of issued common stock shares (thousands of shares)

70,86470,86419

19

70,84570,845

Number of common shares of treasury stock (thousands of shares)
Number of common stock shares at end of period used to calculate
net assets per share (thousands of shares)(Important subsequent events)
None

―21―

4. Other
Reference: Production, orders, and sales status[Consolidated performance](1) Net sales
Accounting period

Previous fiscal year

Current fiscal year

(April 2020 to March 2021)(April 2021 to March 2022)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Power distribution line
work

45,793

11.7

45,774

12.2

(19)

(0.0)

Electrical work

207,27452.9

198,35452.7(8,919)(4.3)

HVAC and sanitaryfacility work

124,26331.7

120,31131.9(3,951)(3.2)

Total, facilities
construction business

377,33196.3

364,440

96.8(12,891)(3.4)

Other businesses

14,5703.7

12,123

3.2(2,447)(16.8)

Total

391,901(15,338)(3.9)

Business segment

100

376,563100(2) Construction orders
Accounting period

Previous fiscal year

Current fiscal year

(April 2020 to March 2021)(April 2021 to March 2022)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Power distribution line
work

45,65414.0

45,646

12.1

(8)

(0.0)

Electrical work

160,669

49.4

197,779

52.7

37,11023.1

HVAC and sanitaryfacility work

118,83436.6

132,04835.2

13,214

11.1

Total

325,158100

375,474100

50,315

15.5

Business segment(3) Construction contract balance at end of period
As of March 31, 2021
Accounting period(2021.3)

As of March 31, 2022
(2022.3)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Power distribution line
work

1,375

0.3

1,247

0.3

(128)

(9.3)

Electrical work

285,34772.0

285,008

69.9

(338)

(0.1)

HVAC and sanitaryfacility work

109,566

27.7

121,392

29.8

11,826

10.8

Total

396,289100

407,649

100

11,3592.9Business segment(4) Construction sales by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2020 to March 2021)

Increase (Decrease)(April 2021 to March 2022)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Kyushu ElectricPower Group*

45,49712.1

46,428

12.7

931

2.0

General customers

331,83487.9

318,01187.3(13,822)

(4.2)

Total

377,331100

364,440

100(12,891)(3.4)

Customer―22―

(5) Construction orders by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2020 to March 2021)

Increase (Decrease)(April 2021 to March 2022)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Kyushu ElectricPower Group*

45,59314.0

47,509

12.7

1,916

4.2

General customers

279,56586.0

327,964

87.3

48,399

17.3

Total

325,158100

375,474100

50,315

15.5

Customer(6) 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., and Kyushu Electric Power Transmission and Distribution Co., Inc.

[Non-consolidated performance](1) Net sales
Accounting period

Previous fiscal year

Current fiscal year

(April 2020 to March 2021)(April 2021 to March 2022)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Power distribution line
work

43,44612.9

43,619

13.5

172

0.4

Electrical work

190,79456.5

180,647

56.0(10,147)(5.3)

HVAC and sanitaryfacility work

98,63929.2

93,87929.1(4,760)

(4.8)

Total

332,88098.6

318,14598.6(14,734)(4.4)

Other businesses

4,552

1.4

4,422

1.4

(130)

(2.9)

Total

337,432(14,864)(4.4)

Business segment100

322,568100(2) Construction orders
Accounting period

Previous fiscal year

Current fiscal year

(April 2020 to March 2021)(April 2021 to March 2022)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Power distribution line
work

42,91915.3

43,603

13.1

684

1.6

Electrical work

143,07151.0

182,46554.9

39,39327.5

HVAC and sanitaryfacility work

94,72633.7

106,279

32.0

11,553

12.2

Total

280,717100

332,349100

51,632

18.4

Business segment―23―

(3) Construction contract balance at end of period
As of March 31, 2021
Accounting period(2021.3)

As of March 31, 2022
(2022.3)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

476

0.1

460

0.1

(15)

(3.3)

Electrical work273,706

75.2

275,524

72.8

1,818

0.7

HVAC and sanitaryfacility work

89,94724.7

102,348

27.1

12,400

13.8

Total

364,131100

378,334100

14,203

3.9

Business segment
Power distribution linework(4) Construction sales by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2020 to March 2021)

Increase (Decrease)(April 2021 to March 2022)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Kyushu ElectricPower Group*

43,79913.2

44,773

14.1

973

2.2

General customers

289,08086.8

273,37285.9(15,708)

(5.4)

Total

332,880100

318,145100(14,734)(4.4)

Customer(5) Construction orders by customer
Previous fiscal year
Accounting period

Current fiscal year

(April 2020 to March 2021)

Increase (Decrease)(April 2021 to March 2022)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Kyushu ElectricPower Group*

43,791

15.6

45,045

13.6

1,253

2.9

General customers

236,925

84.4

287,303

86.4

50,378

21.3

Total

280,717100

332,349100

51,632

18.4

Customer*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., and Kyushu Electric Power Transmission and Distribution Co., Inc.

―24―