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

Consolidated Financial Report [Japanese GAAP]
for the Six Months Ended September 30, 2023
October 27, 2023
Kyudenko Corporation
Listing:
Tokyo Stock Exchange / Fukuoka Stock Exchange
1959
URL:
https://www.kyudenko.co.jp
Kazuyuki Ishibashi, Executive Officer Representative President
Akira Shirouzu, Executive Officer,
Inquiries:
General Manager of Finance & Accounting DepartmentTel:+81(0)-92-523-1239
Scheduled date to file quarterly securities report:
November 8, 2023
Scheduled date to commence dividend payments:
December 1, 2023
Preparation of supplementary material on quarterly financial results:
Yes
Holding of quarterly financial results briefing:
Yes (For institutional investors and analysts)
Company name:Securities code:
Representative:(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the six months ended September 30, 2023
(From April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Millions of yen(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

Operating income%

Millions of yen%

Millions of yen

Six months ended
200,61719.0
13,69232.7
September 30, 2023
Six months ended
168,522
6.5
10,315(11.5)
September 30, 2022
(Note) Comprehensive income
Six months ended September 30, 2023:
Six months ended September 30, 2022:%

Millions of yen%

15,76631.2

10,160(8.6)

12,015(11.5)

11,11612.9¥13,867 million (11.2%)¥12,468 million (38.6%)

Profit per share
Six months ended September 30, 2023
Six months ended September 30, 2022

Diluted profit per share
Yen

Yen

143.49156.92――(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023
(Reference)
EquityNet assets

Equity ratio

Millions of yen

Millions of yen%

456,758
446,410272,136
263,017¥269,921 million¥260,841 million

59.1
58.4

As of September 30, 2023
As of March 31, 2023

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

Yen

Year ended March 31, 2023―
50.00
Year ending March 31, 2024―
55.00
Year ending March 31, 2024
(Forecast)(Note) Revisions to the forecast of cash dividends most recently announced:

Year-end

Total

Yen

Yen

Yen

―

60.00

110.00―55.00

110.00None

3. Forecast of consolidated financial results of operations 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 to
Net sales
Operating income Ordinary income
Profit per shareowners of parent% Millions of yen%

Yen

Full year
460,000 16.2
35,500 10.7
38,0007.2
26,500(Note) Revisions to the most recently announced consolidated earnings forecast: None

Millions of yen% Millions of yen% Millions of yen

0.6

374.05―1―

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

(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common stock)(i) Total number of issued shares at
Six months ended
the end of the period (including
September 30, 2023
treasury stock)Six months ended(ii) Number of treasury stock at the
September 30, 2023
end of the period(iii) Average number of shares
Six months ended
outstanding during the period(cumulative from the beginning of September 30, 2023
the fiscal year)

70,864,961 shares

135,888 shares

70,811,988 sharesYear ended
March 31, 2023
Year ended
March 31, 2023
Six months ended
September 30, 2022

70,864,961 shares

19,743 shares

70,845,515 shares(Note) Treasury stock figures include company shares remaining in the trust that administers the stock compensation
plan for officers (as of September 30, 2023, 116,000 shares).

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

―2―

Attached materials ― Contents

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

1. Qualitative information related to this quarterly financial report(1) Explanation of operating results
Order volume during the six months ended September 30, 2023, fell 8.3% from the corresponding period of the previous
fiscal year to ¥245,063 million, thanks to steady efforts to secure orders for targeted projects while paying attention to
construction capabilities. Although order volume declined from the corresponding period of the previous fiscal year, weare planning for annual order volume on par with last fiscal year against the backdrop of a robust order environment.
Net sales rose 19.0% from the corresponding period of the previous fiscal year to ¥200,617 million, on growth in both
Kyushu and the Tokyo metropolitan region thanks to the large amount of construction-on-hand.
Operating income rose 32.7% from the corresponding period of the previous fiscal year to ¥13,692 million, on growthin net sales reflecting progress on large projects.
Ordinary income rose 31.2% from the corresponding period of the previous fiscal year to ¥15,766 million, due to factors
including posting of non-operating income from an extraordinary dividend from some non-listed shares held by thecompany.
Quarterly profit attributable to owners of parent fell 8.6% from the corresponding period of the previous fiscal year to¥10,160 million, reflecting the absence of the gain on sales of investment securities (Huis Ten Bosch shares) posted
during the corresponding quarter of the previous fiscal year.
Concerning the status of the Ukujima solar project, we have not yet secured the understanding of a fishery cooperativewith an interest in the which is a stakeholder. Operating entity UKUJIMA MIRAI ENERGY LLC remains engaged in
substantial, detailed discussions on a variety of issues and will continue to seek the cooperative’s understanding.

(2) Explanation of financial position
Total assets rose ¥10,347 million (2.3%) from the end of the previous consolidated fiscal year to ¥456,758 million due
to factors including an increase in cash and deposits.
Total liabilities rose ¥1,227 million (0.7%) from the end of the previous consolidated fiscal year to ¥184,621 million due
to factors including an increase in advances received on uncompleted construction contracts.
Total net assets rose ¥9,119 million (3.5%) from the end of the previous consolidated fiscal year to ¥272,136 million
thanks to factors including the posting of quarterly profit attributable to owners of parent and an increase in the valuationdifference on available-for-sale securities.

(3) Explanation of consolidated earnings forecasts and other forward-looking information
There has been no change to the earnings forecast announced along with year-end financial results on April 28, 2023.

―2―2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheet(Millions of yen)Previous fiscal year
As of March 31, 2023

Current 2nd Quarter
As of September 30, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Costs of uncompleted construction contracts
Merchandise
Raw materials and supplies
Other
Allowance for doubtful accounts

67,534

97,227

148,902

123,145

7,428
1,203

13,592
1,363

31,364
21,79032,392
17,116(3)(0)

278,220284,838

34,22233,388Land
Other, net

29,914
17,60829,882
17,077

Total property and equipment

81,74580,347

Goodwill
Customer related assets

821
1,518

642
1,408

Other

1,938

2,519

Total intangible assets

4,278

4,569

Investment securities
Long-term loans receivable

64,49489

69,13029

Retirement benefit asset
Deferred tax assets

10,445
2,468

11,125
1,517

Other
Allowance for doubtful accounts

5,652
(985)

6,139
(941)

Total current assets
Fixed assets
Property and equipment
Buildings and structures, net

Intangible assets

Investments and other assets

Total investments and other assets
Total fixed assets
Total assets―3―82,16687,002

168,189

171,920

446,410456,758(Millions of yen)Previous fiscal year
As of March 31, 2023

Current 2nd Quarter
As of September 30, 2023

69,832

58,21028,76235,735

Short-term borrowings
Income taxes payable

2,461
5,984

1,996
5,220

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

26,55021

31,727
411

Other

8,077

9,193

141,691

142,495

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

30,604
3,341

30,385
3,472

327

283

3,980

3,966

Provision for share-based payments
Other

―
3,448

43
3,975

Total long-term liabilities

41,702

42,126

183,393

184,621

Shareholders' equity
Share capital

12,561

12,561

Capital surplus
Retained earnings

13,046
233,918

13,064
239,827

(10)

(491)

259,516

264,962

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,428
(16)

5,480
114

Foreign currency translation adjustment
Retirement benefit liability adjustments

688(1,774)914(1,550)Total accumulated other comprehensive income

1,325

4,959

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

Total current liabilities
Long-term liabilities

Total liabilities
Net assets

Treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

―4―

2,175

2,214

263,017272,136

446,410456,758

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
Second quarterly consolidated cumulative accounting period
Previous 2nd Quarter(From April 1, 2022 toSeptember 30, 2022)
Net sales
Construction contracts

161,186

Other(Millions of yen)
Current 2nd Quarter(From April 1, 2023 to
September 30, 2023)
193,335

7,336

7,282

168,522200,617

Construction contracts
Other

140,181
4,923

168,666
5,091

Total cost of sales

145,105

173,757

Construction contracts
Other

21,004
2,412

24,6692,190

Total gross profit

Total net sales
Cost of sales

Gross profit

23,417

26,860

Selling, general and administrative expenses

13,101

13,167

Operating income

10,315

13,692

Interest income
Dividend income

23
520

64
1,166

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

396
474

56
488

Rent income
Other

165
529

154
421

2,109

2,352

Interest expenses
Extra retirement payments

195
30

229
43

Transfer of allowance for doubtful accounts for affiliates
Settlement payments

17
87

Other

77

―
―
5

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

409

279

12,015

15,766

176

34

Gain on sales of investment securities

4,246

165

Total extraordinary income

4,422

199

Impairment losses
Loss on disposal and sales of fixed assets

―
88

258
122

Loss on sales of investment securities
Loss on valuation of investment securities

―
51

0
147

Ordinary income
Extraordinary income
Gain on sales of fixed assets

Extraordinary losses

Total extraordinary losses
Profit before income taxes

139

528

16,29915,437

Income taxes

5,169

5,235

Profit11,130

10,201

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

―5―

13

41

11,116

10,160Quarterly consolidated statement of comprehensive income
Second quarterly consolidated cumulative accounting period
Previous 2nd Quarter(From April 1, 2022 toSeptember 30, 2022)
11,130(Millions of yen)
Current 2nd Quarter(From April 1, 2023 to
September 30, 2023)
10,201

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

390
549

3,031
257

Retirement benefit liability adjustments
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income

242

224

154

152

ProfitOther comprehensive income

Comprehensive income

1,338

3,665

12,46813,867

12,40265

13,79473(of which)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―6―(3) Notes on the quarterly consolidated financial statements(Notes on the premise of a going concern)
None(Notes on noteworthy changes in shareholders’ equity)
None(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses have been calculated by making a reasonable estimate of the effective tax rate after the applicationof tax effect accounting to pre-tax income for the consolidated fiscal year that includes the second consolidated
quarterly accounting period and then applying the effective tax rate used in that estimate to the pre-tax quarterly
income.

―7―

3. Reference
Overview of non-consolidated results(Yen amounts are rounded down to millions.)
Non-consolidated financial results for the six months ended September 30, 2023
(From April 1, 2023 to September 30, 2023)(1) Non-consolidated operating results (cumulative)
Net sales
Six months ended
September 30, 2023
Six months ended
September 30, 2022

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

Ordinary income

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

174,843

22.4

10,90834.8

13,283

41.4

8,623

(10.1)

142,829

3.1

8,094

(14.0)

9,394(12.7)

9,595

22,3

Profit per share
Six months ended
September 30, 2023
Six months ended
September 30, 2022

Diluted profit
per share

Yen

Yen

121.74―135.40―(2) Non-consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023

Net assets

Equity ratio

Millions of yen

Millions of yen%

410,596
395,807

221,340
214,45753,954.2(Note) This overview of non-consolidated operating results is provided for reference purposes only and as such does not
fall within the scope of review of legally mandated disclosures.

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

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
totalPower distribution line work
Electrical work
HVAC and sanitary facility work
Total, facilities construction
business
Other businesses
Total

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

21,142
83,57756,466

12.5
49.6
33.5

21,487105,210
66,637

10.7
52.5
33.2

344
21,632
10,171

1.6
25.9
18.0

161,18695.6

193.335

96.4

32,14819.9

7,336
168,522

4.4
100

7,282
200,617

3.6
100

(53)
32,095(0.7)
19.0(ii) Construction orders
Accounting periodBusiness segment

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

21,874
145,720
99,728267,323

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

8.2
54.5
37.3
100

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

22,860127,246
94,956
245,063

Increase(Decrease)
Amount(millions of yen)

Rate (%)

985(18,474)(4,771)(22,259)

4.5(12.7)
(4.8)
(8.3)

9.3
52.0
38.7
100

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

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

Business segment

As percent of
total

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

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

0.4
67.6
32.0
100

As of September 30, 2023
Amount(millions of yen)

4,402
345,046
170,080
519,529

As percent of
total

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

0.8
66.5
32.7
100

2,422
(2,104)
5,426
5,744

122.4
(0.6)
3.3
1.1

(iv) Construction sales by customer
Accounting period
CustomerSix months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

21,138140,048
161,186

Kyushu Electric Power Group*
General customers
Total

13.1
86.9
100

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)total

21,661
171,673
193,335

Increase(Decrease)
Amount(millions of yen)

Rate (%)

523
31,62532,148

2.5
22.6
19.9

11.2
88.8
100

(v) Construction orders by customer
Accounting period
CustomerSix months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

Kyushu Electric Power Group*
General customers
Total

21,704
245,618
267,323

8.1
91.9
100

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

22,931
222,132
245,063

Increase(Decrease)
Amount(millions of yen)

Rate (%)

1,226(23,486)(22,259)

5.7
(9.6)
(8.3)

9.4
90.6
100

(vi) 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.

―9―

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

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

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

Power distribution line work

20,276

14.2

20,672

11.8

396

2.0

Electrical work

75,281

52.7

98,11556.1

22,834

30.3

HVAC and sanitary facility work

44,69731.3

53,645

30.7

8,947

20.0

Sub total

140,25498.2

172,433

98.6

32,178

22.9

(164)

(6.4)

32,014

22.4

Other businesses

2,574

Total

142,829

1.8

2,410

100

174,843

1.4100(ii) Construction orders
Accounting periodBusiness segment

Six months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
totalPower distribution line work
Electrical work
HVAC and sanitary facility
work

Increase(Decrease)
Amount(millions of yen)

Rate (%)

20,765

9.1

21,570

10.0

805

3.9

131,55857.4

117,203

54.3(14,355)(10.9)

76,67933.5

76,956

35.7

276

0.4

(13,273)(5.8)

229,004

Total

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

100

215,730100(iii) Construction contract balance at end of period
Accounting periodBusiness segment

As of September 30, 2022
Amount(millions of yen)Power distribution line work

As percent of
total

As of September 30, 2023
Amount(millions of yen)

As percent of
total

Increase(Decrease)
Amount(millions of yen)

Rate (%)

950

0.2

3,226

0.7

2,276

239.4

Electrical work

331,802

71.0

329,33769.7(2,464)(0.7)

HVAC and sanitary facility
work

134,33028.8

140,020

29.6

5,689

4.2

Total

467,083

5,501

1.2

100

472,585100(iv) Construction sales by customer
Accounting period
CustomerSix months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)
total

20,608

Kyushu Electric Power Group*
General customers

119,646

Total

140,254

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

14.7

21,041

85.3

151,392

100

172,433

Increase(Decrease)
Amount(millions of yen)

Rate (%)

12.2

433

2.1

87.8

31,74526.5

32,17822.9100(v) Construction orders by customer
Accounting period
CustomerSix months ended
September 30, 2022
(April 2022 to September 2022)
AmountAs percent of(millions of yen)total

Six months ended
September 30, 2023
(April 2023 to September 2023)
AmountAs percent of(millions of yen)
total

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

Kyushu Electric Power Group*

20,9609.2

21,945

10.2

984

4.7

General customers

208,04390.8

193,78589.8(14,258)

(6.9)

Total

229,004(13,273)

(5.8)

100

215,730

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

―10―