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, 2023
April 28, 2023
Company name: Kyudenko Corporation
Listing: Tokyo Stock Exchange / Fukuoka Stock Exchange
Securities code: 1959
URL: https://www.kyudenko.co.jp
Representative: Ishibashi Kazuyuki, 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, 2023
Scheduled date to commence
June 6, 2023
shareholders’ meeting:dividend payments:
Scheduled date to file annual
June 29, 2023
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, 2023
(From April 1, 2022 to March 31, 2023)(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%

395,783

5.1

32,083(3.2)

35,462(3.7)

26,3490.5

376,563(3.9)

33,1370.4

36,828

2.6

26,216

4.7

Year ended
March 31, 2023
Year ended
March 31, 2022
(Note) Comprehensive income

Year ended March
31, 2023¥28,879 million (8.4%)

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

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

%

%

%

371.93

─

10.5

8.6

8.1

370.05

─

11.4

9.9

8.8

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

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

Year ended¥732 million
March 31, 2023

Year ended
March 31, 2022

¥1,514 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, 2023

446,410

263,01758.4

3,681.85

As of March 31, 2022

378,396

241,194

63.2

3,375.43(Reference)

EquityYear ended March 31, 2023 ¥260,841 million

Year ended March 31, 2022

¥239,134 million(3) Consolidated cash flows
Cash flows fromoperating activities
Year ended
March 31, 2023
Year ended
March 31, 2022

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

17,386(3,113)

11,61563,851

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

37,791―1―2. Dividends
Annual dividends per share

Year ended
March 31, 2022
Year ended
March 31, 2023
Year ending March
31, 2024 (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

27.0

3.1

─

50.00

─

60.00 110.00

7,795

29.6

3.1

─

55.00

─

55.00 110.00

Note 1: Fiscal year ended March 31, 2023
2: Fiscal year ending March 31, 2024 (forecast)

29.4

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

Normal dividend: ¥60.00
Normal dividend: ¥55.00
Normal dividend: ¥55.00

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024
(From April 1, 2023 to March 31, 2024)(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

16.2

35,500%Millions of yen%

Millions of yen

%

Yen

10.7

38,0007.2

26,5000.6

374.05*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.18 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, 2023

70,864,961sharesYear ended
March 31, 2022

70,864,961 sharesYear ended
March 31, 2023

19,743sharesYear ended
March 31, 2022

19,332 sharesYear ended
March 31, 2023

70,845,420sharesYear ended
March 31, 2022

70,845,795 shares(Reference) Overview of non-consolidated results
Non-consolidated financial results for the fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Percentages indicate change from corresponding period of the previous fiscal year.)(1) Non-consolidated operating results
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Operating income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

333,007322,568

3.2(4.4)

25,305
26,527(4.6)
1.9

28,12628,822(2.4)
1.8

21,806
20,6905.4
1.5

Profit per share
Year ended March 31, 2023
Year ended March 31, 2022

Ordinary income

Diluted profit per share

Yen

Yen

307.73291.97──

―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, 2023
395,807
214,457
54.2
Year ended March 31, 2022
336,952
199,176
59.1(Reference) Equity Year ended March 31, 2023 ¥214,457 million
Year ended March 31, 2022

*
*

Yen

3,026.33
2,810.67¥199,176 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.5 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(Business segment information) ...................................................................................................................... 18(Per-share data) .............................................................................................................................................. 20(Important subsequent events) ........................................................................................................................ 20
4. Other................................................................................................................................................................... 21
Reference: Production, orders, and sales status ................................................................................................ 21―4―

1. Overview of operating results(1) Overview of operating results for the current fiscal year
During the current consolidated fiscal year, rising geopolitical risk drove up the cost of a variety of goods and services,
including energy, while growing domestic capital investment, particularly in the manufacturing industry, underpinned theeconomy. The effects of the COVID-19 pandemic on business activities have been ebbing since a period of rising
infections last summer.
The Group has received orders for multiple large projects even as rising material and labor costs manifest themselves,demanding strategies for booking orders despite challenges like ensuring construction workers and negotiating pricing.
In addition, the start of full-scale work on large megasolar projects that had been delayed due to the effects of thepandemic has been further delayed.
Against the backdrop of this business environment, we chose “implementing operational reforms designed toaccommodate environmental changes” as the theme for FY2022, the third year of our Mid-term Management Plan (afive-year plan covering FY2020 through FY2024), based on a review of FY2021, and we orchestrated a companywide
effort to improve productivity by implementing operational reforms and advance price negotiations that reflect soaring
material and labor costs in order to resolve the largest challenges facing us, specifically capturing and completing orders
for large projects and contending with soaring material and labor costs.
This approach to our businesses yielded the following results for the current fiscal year:[Consolidated operating results]
Construction orders¥440,507 million(up 17.3% from the previous year)

Sales¥395,783 million(up 5.1% from the previous year)

Operating income¥32,083 million(down 3.2% from the previous year)

Ordinary income¥35,462 million(down 3.7% from the previous year)

Profit attributable to owners of parent¥26,349 million(up 0.5% from the previous year)

Net sales rose for both the facilities construction business and other businesses, with the segment total rising ¥19,220
million from the corresponding period of the previous fiscal year to ¥395,783 million.
Operating income fell ¥1,054 million from the corresponding period of the previous fiscal year to ¥32,083 million,
while ordinary income fell ¥1,365 million to ¥35,462 million.
Profit attributable to owners of parent rose ¥132 million from the corresponding period of the previous fiscal year to¥26,349 million as a result of factors including posting of extraordinary income from the sale of investment securities.
Individual business segments performed as follows:(Facilities construction business)
Construction orders rose ¥65,032 million (17.3%) from the previous consolidated fiscal year to ¥440,507 million asa result of coordinated sales activities undertaken by sales and engineer departments to earn orders for large
redevelopment projects and projects that had been delayed due to the pandemic while accommodating demand fordatacenter expansion projects and capital investments in the manufacturing industry, primarily in Kyushu.
Net sales rose ¥15,914 million (4.4%) from the previous year to ¥380,355 million against a backdrop of robust orders
despite sluggish performance due to factors such as delays in the start of construction work on large solar projects.
Segment profit (operating income) fell ¥1,619 million (5.3%) from the previous consolidated fiscal year to ¥28,908
million as net sales growth was offset by the added weight of large new-construction projects with comparatively low
profitability that were ordered during or prior to the previous fiscal year and by increases in fixed costs due to theaddition of new consolidated subsidiaries, digital transformation (DX) investments, and efforts to move beyond the
pandemic.
(Other)Net sales rose ¥3,305 million (27.3%) from the previous consolidated fiscal year to ¥15,428 million as a result offactors including growth in our power generation and facility operation businesses.
Segment profit (operating income) rose ¥513 million (20.5%) from the previous consolidated fiscal year to ¥3,015
million as a result of growth in net sales.

―5―(2) Overview of financial position during the current fiscal year
Overview of assets, liabilities, and net assets(Assets)
Current assets rose ¥61,241 million from the end of the previous consolidated fiscal year to ¥278,220 million as aresult of factors including increases in cash and deposits.
Fixed assets rose ¥6,773 million from the end of the previous consolidated fiscal year to ¥168,189 million as aresult of factors including an increase in retirement benefit assets.
As a result, total assets rose ¥68,014 million from the end of the previous consolidated fiscal year to ¥446,410 million.
(Liabilities)
Current liabilities rose ¥18,244 million from the end of the previous consolidated fiscal year to ¥141,691 million asa result of factors including an increase in advances received on uncompleted construction contracts.
Long-term liabilities rose ¥27,947 million from the end of the previous consolidated fiscal year to ¥41,702 million
as a result of factors including an increase in long-term borrowings.
As a result, total liabilities rose ¥46,192 million from the end of the previous consolidated fiscal year to ¥183,393 million.
(Net assets)
Total net assets rose ¥21,822 million from the end of the previous consolidated fiscal year to ¥263,017 million as aresult of factors including the posting of profit attributable to owners of parent.

(3) Overview of cash flows during the current fiscal year
Cash and cash equivalents (“funds”) during the current consolidated fiscal year rose ¥26,060 million from the end of
the previous consolidated fiscal year to ¥63,851 million.
(Cash flows from operating activities)
Funds gained from operating activities totaled ¥17,386 million (an increase in income of ¥12,134 million from theprevious consolidated fiscal year).
This figure primarily reflects the fact that the posting of profit before income taxes and an increase in advances
received on uncompleted construction contracts exceeded increases in trade receivables and inventory assets andpayment of consumption tax.
(Cash flows from investing activities)
Funds expended in connection with investing activities totaled ¥3,113 million (a decrease in expenditures of ¥4,423
million from the previous consolidated fiscal year).
This figure primarily reflects the fact that expenditures on the acquisition of investment securities and property andequipment exceeded income from the sale of investment securities.
(Cash flows from financing activities)
Funds from financing activities totaled ¥11,615 million (an increase in income of ¥21,807 million from the previous
consolidated fiscal year).
This figure primarily reflects the fact that income from the procurement of funds through long-term borrowing
exceeded dividend payments and expenditures made to repay long-term borrowings.

―6―

(4) Outlook for results during the next fiscal year
Going forward, the construction industry is likely to be affected by rising prices, particularly for labor, prompting
concerns about a shortage of construction workers, for example due to the need to put in place a labor environmentthat complies with upper limits on overtime work that are scheduled to take effect in FY2024. The Group, which has
more uncompleted construction contracts than at any time in its history, finds itself faced with the need to establish
optimal staffing structures while quickly accommodating the new upper limits on overtime work, which it considers to be
its greatest challenge.
Based on this environment, we believe that resolving the issues we face will require us to improve productivity byradically reconsidering the procedures, approaches, and mechanisms upon which we’ve relied to date and mounting agroup-wide effort to reform workstyles. To that end, we’ve identified “improving productivity to prepare for a new era” asour basic management theme for 2023, the fourth year of our Mid-term Management Plan, and we will accelerate
workstyle reforms and leverage them to realize the Group’s growth.
In addition, we believe that in order to adapt to an environment that’s changing with unprecedented speed, we willneed to ensure that environmental management and CSV management permeate our operations as management
strategies while advancing DX, a renewable energy business guided by the roadmap set forth in the Mid-termManagement Plan, and other initiatives. As a result, we recently augmented the reforms and issues identified by the
Mid-term Management Plan by adding “implementing human capital management” as a “new issue being addressed.”
We’ve also targeted the following issues for particular attention during FY2023, and we will determine and implement
specific measures for each of them going forward: implementing productivity reforms, implementing human capitalmanagement, strengthening and expanding platforms for earning orders, developing new business domains,implementing sustainability management, strengthening governance structures and ensuring compliance, andeliminating serious accidents.
As a result of the above initiatives, we expect the following operating results for the upcoming fiscal year (ending
March 31, 2024):(Consolidated financial results)
Construction orders¥441.0 billion(up 0.1% from the current fiscal year)

Sales¥460.0 billion(up 16.2% from the current fiscal year)

Operating income¥35.5 billion(up 10.7% from the current fiscal year)

Ordinary income¥38.0 billion(up 7.2% from the current fiscal year)

Profit attributable to owners of parent¥26.5 billion(up 0.6% 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 based on awareness ofcapital costs and return profits to shareholders while setting aside sufficient internal reserves to strengthen ourmanagement base and expand our businesses 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.
Although we previously announced a year-end dividend of ¥50 per share for the current fiscal year in accordancewith this basic policy, we have increased that figure to ¥60 per share based on financial results for the fiscal year ended
March 2023, as announced today, and our record-high construction contract balance, which combined with thepreviously paid interim dividend of ¥50 per share will yield an annual dividend of ¥110 per share.
We’re planning an annual dividend of ¥110 per share (including an interim dividend of ¥55) for the upcoming fiscal
year (ending March 2024) based on the current earnings forecast and other data.

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, 2022

Current fiscal year
As of March 31, 2023

39,021

67,534

136,676

148,902

987
5,592

―
7,428

Merchandise
Raw materials and supplies

1,107
22,7901,203
31,364

Other
Allowance for doubtful accounts

10,838(34)

21,790(3)

Total current assets

216,979

278,220

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

73,06041,05976,16845,607

Land
Lease assets

29,677
7,628

29,914
8,087

Construction in process
Total cumulative depreciation

1,112(71,694)

382(78,415)

Total property and equipment

80,84481,745

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

Fixed assets
Property and equipment

Intangible assets
Goodwill

755

821

Customer-related assets
Other

1,739
1,873

1,518
1,938

Total intangible assets

4,368

4,278

Investment securities
Long-term loans receivable

61,175313

64,49489

Retirement benefit assets
Deferred tax assets

6,124
4,288

10,445
2,468

Other
Allowance for doubtful accounts

5,279
(979)

5,652
(985)

Total investments and other assets

76,20382,166

161,416

168,189

378,396446,410Investments and other assets

Total fixed assets
Total assets―9―

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

Current fiscal year
As of March 31, 2023

66,66969,832

22,07828,762

Short-term borrowings
Income taxes payable

6,865
7,309

2,461
5,984

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

11,463
187

26,550
21

Other

8,872

8,077

123,446

141,691

Long-term borrowings
Lease obligations

3,494
2,782

30,604
3,341

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

328
4,015

327
3,980

Other

3,134

3,448

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

Total current liabilities
Long-term liabilities

Total long-term liabilities

13,75441,702

137,201

183,393

Share capital
Capital surplus

12,561
12,987

12,561
13,046

Retained earnings
Treasury stock, at cost

214,655(9)

233,918(10)

Total shareholders’ equity

240,194259,516

Total liabilities
Net assets
Shareholders' equity

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

1,848

2,428

Deferred gains or losses on hedges
Foreign currency translation adjustment

(218)
208

(16)
688

Retirement benefit liability adjustments(2,898)(1,774)

Total accumulated other comprehensive loss

(1,059)

1,325

2,059

2,175

241,194

263,017378,396446,410Non-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, 2021 toMarch 31, 2022)(Millions of yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)

364,440

380,355

Other

12,123

15,428

Total net sales

376,563395,783

Construction contracts
Other

310,6158,586

326,874
11,019Total cost of sales

319,201

337,894

Gross profit
Construction contracts

Cost of sales

53,82453,480

Other

3,536

4,408

Total gross profit

57,361

57,889Selling, general and administrative expenses

24,22425,806

Operating income

33,13732,083

48
747

63
716

1,514
910

732
1,427

329
775

322
867

4,326

4,130

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

387

424

Extra retirement payments
Payment fees

84
75

58
99

Transfer of allowance for doubtful accounts from affiliates
Settlement payments

35

17
87

Other

―
52

Total non-operating expenses

635

750

36,82835,462

Ordinary income

―11―

63

(Millions of yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)

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

4310

Gain on sales of investment securities

811

4,247

Total extraordinary income

816

4,558

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

286
36

223

Loss on valuation of investment securities
Impairment losses

489

Extraordinary losses――

Loss on liquidation of a subsidiary
Total extraordinary losses

―
602
326
74

811

1,227

Profit before income taxes

36,83338,793

Corporate, residence, and business taxes
Income taxes - deferred

11,365(871)

11,157
1,198

Total income taxes

10,493

12,355

Profit26,33926,437

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

―12―

123

88

26,216

26,349

Consolidated statement of comprehensive income
Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)
26,339(Millions of yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)
26,437

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(2,146)
131

577
535

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

2,158

1,124

159

204

302

2,441

26,641

28,87926,490151

28,735
144

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, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Retainedearnings

12,561

12,987

195,601

Balance at start of fiscal year under review

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)

Changes in the scope of consolidation

(1)

(76)

(76)

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

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

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

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

3,998

(381)

NonTotal
Foreign Retirement
accumulated controllingcurrency
benefitinterests
othertranslation
liability
comprehensive
adjustment adjustments
loss
105

(5,057)(1,334)

1,933

Total net
assets221,741

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

Profit attributable to owners of parent

26,216

Purchase of treasury stock(1)

Changes in the scope of consolidation(76)

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

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

Change in items other than shareholders’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―14―

Current fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at start of fiscal year under review

12,561

Capital surplus

Retainedearnings

12,987

214,655

Treasury Total shareholders’
stock, at costequity(9)240,194

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

Profit attributable to owners of parent

26,34926,349Purchase of treasury stock

(1)

(1)

Changes in the scope of consolidation―

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

00Change in equity due to sale of shares of consolidated
subsidiaries’ shares

59

59

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―

59

19,263(1)

19,321

12,561

13,046

233,918(10)

259,516

Accumulated other comprehensive income

Balance at start of fiscal year under review

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

1,848

(218)

NonTotal
Foreign
Retirement
accumulated controllingcurrency
benefitinterests
othertranslation
liability
comprehensive
adjustment adjustments
loss
208

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

Total net
assets

241,194

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

Profit attributable to owners of parent

26,349Purchase of treasury stock(1)

Changes in the scope of consolidation―

Change in equity due to acquisition of
consolidated subsidiaries’ treasury stock0

Change in equity due to sale of shares of
consolidated subsidiaries’ shares

59

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

579

201

480

1,124

2,385

115

2,500

Total change during fiscal year under review

579

201

480

1,124

2,385

115

21,822

Balance at end of fiscal year under review

2,428

(16)

688

(1,774)

1,325

2,175

263,017―15―

(4) Consolidated cash flow statement

Cash flows from operating activities
Profit before income taxes
Depreciation expenses
Impairment losses
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
Other
Sub totalInterest income and dividend income received
Interest paid
Income taxes paid
Cash flows from operating activities―16―

Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)(Millions of yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)

36,83338,793

5,791
―

6,018
326

(152)

(24)

(2,860)(3,064)

(907)

1,544

123

(170)

(910)

(1,427)

(796)
387

(780)
424

(126)

(168)

(1,201)

(414)

(4)

(310)

282

208

489

602

(775)

(4,247)(4,786)(11,791)585(1,689)(8,266)(8,545)

153

9,552

(3,923)

15,076(2)

87(6,036)
2,298(4,090)(6,386)

16,19329,522

796
(387)

763
(424)

(11,350)(12,474)

5,252

17,386Cash flows from investing activities
Expenditures on deposits of time deposits

Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)(Millions of yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)(1,352)(3,738)

Income from redemption of time deposits
Expenditures on purchases of property and equipment

1,732(3,931)

1,503(2,940)

Income from sale of property and equipment
Expenditures on disposal of property and equipment

169
(210)

445
(126)

(4,817)
3,992(3,415)5,754(2,871)

(97)

(127)

(34)

153
(273)

366
(831)

(7,536)(3,113)

(34)

(18)

―
(1,811)27,000(7,057)(1)(7,086)(2)(7,087)

(2)
(22)

(2)
(22)

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 long-term loans
Income from collection of long-term loans
Other
Cash flows from investing activities
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
Dividends paid
Dividends paid to non-controlling interests
Expenditures on refunds to non-controlling interests
Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation
Other

―

60

(1,233)(1,253)

Cash flows from financing activities(10,191)

11,615301

171(12,175)

26,06049,80037,791

166―

37,791

63,851

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 29, 2022).
(Changes in the scope of consolidation)
Due to our partial acquisition of shares of Kirishima Biomass Power Co., Ltd., that company and its subsidiary Kirishima
Biomass Fuel Co., Ltd. have been included in the scope of consolidation.
Atsumi Green Power Co., Ltd. which had been an equity-method affiliate, became a consolidated subsidiary due to anincrease in the Company's equity ratio after the acquisition of its own shares.
Due to the completion of its liquidation, overseas subsidiary Kyudenko South East Asia Pte. Ltd. has been removed
from the scope of consolidation.
These results brought the number of subsidiaries to 60.

(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 for Market
Value Standards”) since the start of the first consolidated quarterly accounting period. In keeping with the transitional
treatment described in Paragraph 27-2 of the Application Guidelines for Market Value Standards, new accounting
policies set forth by the Application Guidelines for Market Value Standards will continue to be applied in the future.
Those changes have had no effect on our quarterly consolidated financial statements.

(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.

―18―

3. Information related to sales, profit, assets, liabilities, and other amounts for each reporting segment
Previous fiscal year (from April 1, 2021 to March 31, 2022)(Millions of yen)
Reporting segment
Facilities construction business

Other(Note 1)

Sales to outside customers

364,440

12,123

376,563―376,563Inter-segment internal sales
and transfers

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

Total

Adjustment(Note 3)Total

Net sales

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 and operation.
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 and adjustments.
Current fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)
Reporting segment
Facilities construction business

Other(Note 1)

Total

Adjustment(Note 3)Total

Net sales
Sales to outside customers

380,355

15,428395,783―

395,783

Inter-segment internal sales andtransfers

1,265

5,074

6,340

(6,340)―

Total

381,620

20,503402,123(6,340)395,783

28,9083,015

31,924

158

32,083

Depreciation expenses

3,935

2,188

6,123

(104)

6,018

Amortization of goodwill

215

121

337

―

337

Segment profit
Other items

Depreciation of customer220
―
220
―
220
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 and operation.
2. Segment assets and segment liabilities are not listed because assets and liabilities are not allocated to thebusiness segment in question.
3. The ¥158 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 and adjustments.
5. A goodwill impairment loss of ¥326 million was posted for the Other segment.

―19―(Per-share data)
Previous fiscal year
(From April 1, 2021 to March 31, 2022)
Net assets per share

Current fiscal year
(From April 1, 2022 to March 31, 2023)¥3,375.43¥3,681.85¥370.05¥371.93

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, 2021 toMarch 31, 2022)

Current fiscal year
(From April 1, 2022 toMarch 31, 2023)

26,216

26,349Amount not attributable to ordinary shareholders (millions of yen)――

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

26,216

26,349Average number of common stock shares outstanding during theperiod (thousands of shares)

70,84570,845End of previous fiscal
year(March 31, 2022)

End of current fiscal
year(March 31, 2023)

241,194

263,017

2,059

2,175

Profit per share
Profit attributable to owners of parent(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])

(―)

(―)

(2,059)(2,175)

Net assets at end of period related to common stock (millions of yen)

239,134

260,841

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

―20―

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

Previous fiscal year

Current fiscal year

(April 2021 to March 2022)(April 2022 to March 2023)

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

45,77412.2

46,628

11.8

853

1.9

Electrical work

198,35452.7

199,403

50.4

1,048

0.5

HVAC and sanitaryfacility work

120,31131.9

134,32333.9

14,012

11.6

Total, facilities
construction business

364,440

96.8

380,355

96.1

15,914

4.4

Other businesses

12,123

3.2

15,428

3.9

3,305

27.3

Total

376,563

19,220

5.1

Business segment

100

395,783

100(2) Construction orders
Accounting period

Previous fiscal year

Current fiscal year

(April 2021 to March 2022)(April 2022 to March 2023)

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

45,64612.1

48,409

11.0

2,763

6.1

Electrical work

197,779

52.7

237,405

53.9

39,62520.0

HVAC and sanitaryfacility work

132,04835.2

154,69235.1

22,643

17.1

Total

375,474100

440,507100

65,032

17.3

Business segment(3) Construction contract balance at end of period
As of March 31, 2022
Accounting period(2022.3)

As of March 31, 2023
(2023.3)

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

1,247

0.3

3,029

0.7

1,781

142.8

Electrical work

285,008

69.9

323,01069.0

38,002

13.3

HVAC and sanitaryfacility work

121,392

29.8

141,761

30.3

20,368

16.8

Total

407,649100

467,801

100

60,152

14.8

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

Current fiscal year

(April 2021 to March 2022)

Increase (Decrease)(April 2022 to March 2023)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Kyushu ElectricPower Group*

46,428

12.7

46,743

12.3

315

0.7

General customers

318,011

87.3

333,61187.7

15,5994.9

Total

364,440100

380,355100

15,914

4.4

Customer―21―

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

Current fiscal year

(April 2021 to March 2022)

Increase (Decrease)(April 2022 to March 2023)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount (millionsof yen)Rate (%)

Kyushu ElectricPower Group*

47,50912.7

47,255

10.7

(254)

(0.5)

General customers

327,96487.3

393,25189.3

65,286

19.9

Total

375,474100

440,507100

65,032

17.3

Customer(6) Full-year sales and construction order volume forecast for the fiscal year ending March 2024
Business segment

Sales (millions of yen)

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

49,00049,000Electrical work

250,000

244,000

HVAC and sanitary facility work

147,000

148,000

Total, facilities construction business

446,000

441,000

Other businesses

14,000Total

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.

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

Previous fiscal year

Current fiscal year

(April 2021 to March 2022)(April 2022 to March 2023)

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

43,61913.5

44,273

13.3

654

1.5

Business segment

Electrical work

180,64756.0

178,28153.5(2,365)(1.3)

HVAC and sanitaryfacility work

93,87929.1

105,778

31.8

11,898

12.7

Total

318,14598.6

328,333

98.6

10,187

3.2

Other businesses

4,422

1.4

4,674

1.4

252

5.7

Total

322,568

10,4393.2

100

333,007100(2) Construction orders
Accounting period

Previous fiscal year

Current fiscal year

(April 2021 to March 2022)(April 2022 to March 2023)

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

43,60313.1

46,141

12.2

2,537

5.8

Electrical work

182,46554.9

213,006

56.1

30,541

16.7

HVAC and sanitaryfacility work106,279

32.0

120,13831.7

13,858

13.0

Total

332,349100

379,286

100

46,937

14.1

Business segment―22―

(3) Construction contract balance at end of period
As of March 31, 2022
Accounting period(2022.3)

As of March 31, 2023
(2023.3)

Increase (Decrease)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

460

0.1

2,328

0.5

1,868

405.3

Electrical work

275,524

72.8

310,24972.3

34,724

12.6

HVAC and sanitaryfacility work

102,34827.1

116,70927.2

14,360

14.0

Total

378,334100

429,287

100

50,953

13.5

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

Current fiscal year

(April 2021 to March 2022)

Increase (Decrease)(April 2022 to March 2023)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Kyushu ElectricPower Group*

44,77314.1

45,079

13.7

306

0.7

General customers

273,37285.9

283,253

86.3

9,880

3.6

Total

318,145100

328,333

100

10,187

3.2

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

Current fiscal year

(April 2021 to March 2022)

Increase (Decrease)(April 2022 to March 2023)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

As percent
of total (%)

Amount(millions of yen)

Rate (%)

Kyushu ElectricPower Group*

45,045

13.6

45,522

12.0

477

1.1

General customers

287,303

86.4

333,76488.0

46,460

16.2

Total

332,349100

379,286

100

46,937

14.1

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

―23―