Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2022
(Based on Japanese GAAP)
November 10, 2022
Company name:
WAKACHIKU CONSTRUCTION CO .,LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:1888
URL https://www.wakachiku.co.jp/
President and Representative Director
Katsuhiko Karasuda

Inquiries:

Director,Managing Executive Officer andGeneral Manager of FinanceYasusuke Hirata

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 11, 2022–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
No03-3492-0273(Amounts less than one million yen are rounded down)
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)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2022
40,872
(4.5)
3,354
6.8
3,723
20.0
2,365
14.7
Six months ended September 30, 2021
42,8159.9
3,142–
3,102–
2,063–
Earnings per share

Diluted earnings per share

Yen
185.53161.79Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
77,405
81,479As of September 30, 2022
As of March 31, 2022

Equity ratio

Millions of yen
39,92738,355

Net assets per share
%
49.9
45.5

Yen
3,026.74
2,909.00

2. Cash dividends
Annual dividends per share

Year ended March 31, 2022
Year ending March 31, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
80.00

Yen
80.00

–

80.00

80.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Full year

Millions of yen
98,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
9.9
5,200 (23.9)
5,000 (26.3)
3,450 (27.2)
270.551

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

12,964,993 shares As of March 31, 2022

12,964,993 shares

Number of treasury shares at the end of the period
As of September 30, 2022

213,246 shares As of March 31, 2022

213,135 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

12,751,806 shares Six months ended September 30, 2021

212,752,044 shares

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

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed

16,39918,35239,53032,310

3,093

3,032

Costs on construction contracts in progress
Advances paid

1,126
2,925

1,567
2,535

Other
Allowance for doubtful accounts

3,191
(43)

4,407
(44)

Total current assets

66,222

62,160

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

4,583
4,742

4,641
4,866

Vessels
Land

3,326
6,358

3,260
6,364

Other
Accumulated depreciation

205(9,202)

230(9,368)

Total property, plant and equipment

10,014

9,994

Intangible assets
Investments and other assets

306

326

Investment securities
Deferred tax assets

2,774
1,430

3,064
1,076

Retirement benefit asset
Other272
863

308
872

Allowance for doubtful accounts

(405)

(398)

construction contracts and other
Real estate for saleNon-current assets
Property, plant and equipment

Total investments and other assets
Total non-current assets
Total assets

3

4,936

4,923

15,256

15,244

81,47977,405

(Millions of yen)
As of March 31, 2022

As of September 30, 2022

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

14,53013,085

2,398

1,379

Income taxes payable
Advances received on uncompleted construction contracts

1,878
5,780

1,182
4,932

Deposits received
Other provisions

5,839
1,264

7,393
1,160

Provision for warranties for completed construction
Other

73
2,934

784
470

Total current liabilities

34,701

30,389Non-current liabilities
Long-term borrowings

3,785

3,311

768
947

768
–36
2,735

59
2,809

149

138

Deferred tax liabilities for land revaluation
Provision for warranties for completed construction
Provision for share awards
Retirement benefit liability
Other
Total non-current liabilities

8,422

7,088

43,12437,478

Share capital
Capital surplus

11,374
2,948

11,374
2,948

Retained earnings
Treasury shares

19,819(337)

21,158(337)

Total shareholders' equity

33,80535,144360

560

Revaluation reserve for landRemeasurements of defined benefit plans

1,706
1,221

1,706
1,184

Total accumulated other comprehensive income

Total liabilities
Net assets
Shareholders' equity

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

3,289

3,451

Non-controlling interests

1,260

1,331

Total net assets

38,35539,927

81,47977,405

Total liabilities and net assets

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

Six months ended

September 30, 2021

September 30, 2022

Net sales
Net sales of completed construction contracts

41,44639,280Net sales in real estate business and other

1,368

1,591

Total net sales

42,81540,872

Cost of sales of completed construction contracts
Cost of sales in real estate business and other

35,845940

33,328
1,072

Total cost of sales

36,786

34,400

5,600

5,952

Cost of sales

Gross profit
Gross profit on completed construction contracts
Gross profit on real estate business and other

428

519

6,029

6,472

Selling, general and administrative expenses

2,886

3,117

Operating profit

3,142

3,354

11463
3063
428

Total gross profit

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other1324

Total non-operating income

119521

81
66

7073

Non-operating expenses
Interest expenses
Commission for syndicated loans
Other

118

Total non-operating expenses

159

152

Ordinary profit

3,102

3,723

Extraordinary income
Gain on sale of non-current assets

013

Total extraordinary income

01300

81––Extraordinary losses
Loss on retirement of non-current assets
Loss on disaster
Other

100

Profit before income taxes

Total extraordinary losses

3,092

3,736

Income taxes - current
Income taxes - deferred

885
83

1,028
266

969

1,2952,123

2,440

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

55975

2,063

2,365

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

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

2,123

2,440

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

201
(17)

199
(36)

Total other comprehensive income

183

162

2,306

2,603

2,246

2,528

5975

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

6