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 Nine Months Ended December 31, 2022
(Based on Japanese GAAP)
February 10, 2023
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:

February 13, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

NoNo03-3492-0273(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 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%
Nine months ended December 31, 2022
61,578
(4.9)
5,057
(4.6)
5,237
(1.1)
3,348(4.6)
Nine months ended December 31, 2021
64,773
2.4
5,299 382.4
5,294 377.7
3,511 625.6
Earnings per share

Diluted earnings per shareYen
262.62275.35

Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
76,04081,479As of December 31, 2022
As of March 31, 2022

Equity ratio

Millions of yen
40,83638,355

Net assets per share%
51.9
45.5

Yen
3,096.16
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
84,000Percentages 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(5.8)
5,200 (23.9)
5,000 (26.3)
3,450 (27.2)
270.551

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 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 December 31, 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 December 31, 2022

213,296 shares As of March 31, 2022

213,135 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

12,751,780 shares Nine months ended December 31, 2021

212,752,011 shares

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

As of December 31, 2022

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

16,39917,46739,53031,153

3,093

3,020

Costs on construction contracts in progress
Advances paid

1,126
2,925

2,431
2,492

Other
Allowance for doubtful accounts

3,191
(43)

4,190
(49)

Total current assets

66,22260,708

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

4,583
4,742

4,642
4,944

Vessels
Land

3,326
6,358

3,260
6,402

Other
Accumulated depreciation

205(9,202)334(9,509)

Total property, plant and equipment

10,014

10,074

Intangible assets
Investments and other assets

306

361

Investment securities
Deferred tax assets

2,774
1,430

3,217
876

Retirement benefit asset
Other272
863

325
849

Allowance for doubtful accounts

(405)

(373)

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

4,896

15,256

15,332

81,47976,040(Millions of yen)
As of March 31, 2022

As of December 31, 2022

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

14,53014,448

2,398

1,515

Income taxes payable
Advances received on uncompleted construction contracts

1,878
5,780

261
3,398

Deposits received
Provisions

5,839
1,338

6,373
1,442

Other

2,934

660

Total current liabilities

34,701

28,101

3,785
768

3,284
768

947
36

–
71

Retirement benefit liability
Other

2,735
149

2,838
138

Total non-current liabilities

8,422

7,101

43,12435,203

Shareholders' equity
Share capital

11,374

11,374

Capital surplus
Retained earnings

2,948
19,8192,948
22,141

Treasury shares

(337)

(337)

33,80536,127

Valuation difference on available-for-sale securities
Revaluation reserve for land

360
1,706

480
1,706

Remeasurements of defined benefit plans

1,221

1,166

Total accumulated other comprehensive income

3,289

3,354

Non-current liabilities
Long-term borrowings
Deferred tax liabilities for land revaluation
Provision for warranties for completed construction
Provision for share awards

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests

1,260

1,355

Total net assets

38,35540,836

81,47976,040Total 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)
Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

Net sales
Net sales of completed construction contracts

62,50859,307

Net sales in real estate business and other

2,264

2,271

Total net sales

64,773

61,578

Cost of sales of completed construction contracts
Cost of sales in real estate business and other53,448
1,615

50,223
1,569

Total cost of sales

55,06351,792

9,060

9,084

Cost of sales

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

649

701

9,710

9,785

Selling, general and administrative expenses

4,410

4,728

Operating profit

5,299

5,057

12665
100

65
268

Total gross profit

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other1628

Total non-operating income

194368

11966

104
73

Non-operating expenses
Interest expenses
Commission for syndicated loans
Other

1310

Total non-operating expenses

199

188

Ordinary profit

5,294

5,237

Extraordinary income
Gain on sale of non-current assets

014

Total extraordinary income

014

3

2

8
1––Extraordinary losses
Loss on retirement of non-current assets
Loss on disaster
Other

132

Profit before income taxes

Total extraordinary losses

5,281

5,249

Income taxes - current
Income taxes - deferred

1,479
209

1,300
501

Total income taxes

1,688

1,801

Profit3,5923,448

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

580

99

3,511

3,348

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

December 31, 2021

December 31, 2022

3,592

3,448

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

164
(26)

119(55)

Total other comprehensive income

137

64

3,730

3,512

3,649

3,413

80

99

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

6