Financial Results
Q2 FY2022
November 9,2021

Securities Code : 7438

Contents
1.

Highlights of Q2 FY2022 Financial Results

P.3

2.

Company Overview

P.6

3.

Main Products and Merchandise

P.14

4.

Q2 FY2022 Financial Results and Analysis

P.20

5.

Q2 FY2022 Financial Results and Analysis by Segment

P.26

6.

Response to ESG Issues

P.34

7.

Growth Strategies

P.40

8.

Shareholder Return

P.49

9.

Highlights of Results

P.52

1. Highlights of Q2 FY2022 Financial Results

Summary of Q2 FY2022 Consolidated Financial Results
 Net sales increased due to demand recovery in construction and a sale contribution
from Fukoku, which was made a subsidiary in January 2021.
 Operating results increased with the increase in net sales offsetting a dip in grossprofit margin, higher freight costs and personnel expenses, and higher SG&A
expenses following the acquisition of two subsidiaries.

Net sales

31,304 million yen

YoY

+8.1%

Operatingincome1,618 million yen

YoY

+2.7%

Ordinary
income1,702 million yen

YoY

+4.7%

Profitattributable toowner of parent

1,065 million yen

YoY

+2.2%

E B I T D A

2,336 million yen

YoY

+8.8%

Note: EBITDA= Income before income taxes + Interest expenses + Depreciation + Amortization of goodwill

3Topics in Q2 FY2022
Application for selection of new market segment “Prime Market”
 KONDOTEC (the “Company”) has received the result of the initial assessment of compliance with the continued listing criteria in
the new market segment from Tokyo Stock Exchange, Inc. (“TSE”) and has confirmed that the Company is in compliance withthe continued listing criteria for the Prime Market.
 In September 2021, based on this result the Company has completed the prescribed procedures related tothe application for the selection of the new market segment “Prime Market” in accordance with the schedule set by TSE.

Acquisition of KURIYAMA ALUMINUM Co., Ltd.
 In October 2021, KONDOTEC resolved to acquire shares
in KURIYAMA ALUMINUM Co., Ltd. which develops andmanufactures aluminum extrusion products and made it
a subsidiary with the aim of achieving sustainablegrowth and improving the corporate value of the
KONDOTEC group over the medium to long term bybringing aluminum products (for which future demand ispredicted to increase) into the range handled by thegroup.

●Company overview
Company
name

KURIYAMA ALUMINUM Co., Ltd.

Location

Nakamura-ku, Nagoya

Business
areas

Development and manufacture ofaluminum extrusions

Capitalstock

96 million yen (As of September 2020）

Decision on acquisition of treasury stocks
 In November 2021, KONDOTEC resolved to acquire its
treasury shares to expand shareholder returns, improveits capital efficiency and implement a flexible capital
policy in response to business environment.

●Acquisition of treasury stocks
Total acquisition
price

900 million yen (maximum)

Total number ofshares acquired

1,000,000 shares (maximum)

Acquisition period

January 4, 2022 - October 31, 2022

4

2. Company Overview

Performance Trends
Since establishment in 1953, we have not incurred an ordinary loss as a result of efforts to supply products
and merchandise to various industries in response to changes of the times and customer needs.
Acquired sharesof TECBUILD(trillion yen)

60,00090

6,000

Acquired shares of KONDOTEC
INTERNATIONAL and CHUOH GIKEN

60

5,000

Acquired sharesof Sanwa Denzai

Net sales (million yen)

The Great East
Japan Earthquake

Opened Sapporo
Factory

30

Opened Shiga
Factory

40,000Opened Kanto
Factory0Construction investment (nominal)
30,000Acquired sharesof FUKOKU

The Burst
Bubble〈 Sales 〉

4,000

Aneha’s The Fabrication of
Quake-Resistance Incident
The Great Hanshin-Awaji
Earthquake

3,000

Industrial Materials
Structural Steel Materials
Electrical Equipment

20,000Ordinary income (million yen)

50,000Acquired sharesof TOKAI STEP

2,000

Ordinary income
EBITDAThe Oil Shocks
10,0001,000

Opened Kyushu
Factory

0

0

1953

1958

1963

1968

1973

Established and Gaining ground in Tokyo, ”shiftingfrom sea to land”, Kyushu Factory Opened

1978

1983

1988

From the expansion acrossJapan and completion of
the head office building to
the next stage

1993

1998

2003

Reborn KONDOTEC
developed the base of leap
toward a stock listing

2008

2013

2018

Business Expansion, Enteringa new stage by M&A

6

Company Overview
Company name

KONDOTEC INC.

Group companies

Sanwa Denzai Co., Ltd. KONDOTEC INTERNATIONAL (THAILAND) CO., LTD.
CHUOH GIKEN Co., Ltd. Nippon Scaffolding Holdings Co., Ltd. TECBUILD CO., LTD.
TOKAI STEP CO., LTD. FUKOKU, Ltd. KURIYAMA ALUMINUM Co., Ltd. (As of October 31, 2021)

Established

January 1953

President andRepresentative
Director

Katsuhiko Kondo
2-2-90 Sakaigawa, Nishi-ku, Osaka 550-0024 Japan

Head office
Tokyo Headquarters : 1-9-3 Minami Suna, Koto-ku, Tokyo
Number of
employees

Parent:721

Capital stock

2,666 million yen

Listed stock market

Tokyo Stock Exchange (First Section) (Securities Code :7438)

Business areas

 Manufacturing, procurement, sale and rental of industrial materials primarily in the retail hardware business.
 Manufacturing, procurement and sale of structural steel materials mainly for steel fabricators.
 Procurement and sales of electrical equipment for electrical work operators and electrical appliance stores.

Major items
handled Products
Turn buckles, braces, scaffolding chains, screws, anchor bolts, construction materials, machinery andequipment etc.
 Merchandise
Hardware, chains, wire ropes, screws, construction materials, lighting equipment, panel board, airconditioning equipment, eco items etc.

Consolidated:1,140 (As of March 31, 2021)

7

Company History and Business Areas
Company history
January 1953

Established Kondo Shoten Co., Ltd.

January 1989

Changed the company name to
KONDOTEC INC.

April 1995

Listed on the Second Section of the
Osaka Stock Exchange

July 1999

Listed on the Second Section of theTokyo Stock Exchange

April 2010

Acquired shares of Sanwa Denzai Co., Ltd.

April 2011

Designated as the First Section stockby the Tokyo Stock Exchange and the
Osaka Stock Exchange

Business areas
Construction industry wholesale
Field

Other thanconstruction

Categorization of merchandise

KONDOTEC INC.
Shipbuilding
Construction
materials
wholesale

Wooden
Plastic
construction construction
materials
materials

Metal
construction
materials

Other
construction
materials

Transport
Land and sea
Cargo handling
Manufacturing &Production facilities

Sanwa Denzai Co., Ltd.

May 2011

Established a representative office(Bangkok, Thailand)

November 2012

Established KONDOTEC
INTERNATIONAL (THAILAND) CO.,LTD.(Joint venture)

August 2014

Turned KONDOTEC INTERNATIONAL(THAILAND) CO., LTD. into a
consolidated subsidiary and acquired
shares of CHUOH GIKEN Co., Ltd.

February 2019

Acquired shares of TECBUILD CO., LTD.

February 2020

Acquired shares of TOKAI STEP CO., LTD.

January 2021

Acquired shares of FUKOKU, Ltd.

April 2021

Established Nippon Scaffolding Holdings
Co., Ltd.

(As of September 2021)

October 2021

Acquired shares of KURIYAMA ALUMINUM
Co., Ltd.

8

Electric
equipment
wholesaleLighting andhot water
supplyequipment

Fishery
Cultivation

Air-conditioning
equipment

Energy-saving
equipment

Agriculture, etc.
CHUOH GIKEN Co., Ltd.

Nippon Scaffolding Holdings
Co., Ltd.
TECBUILD CO., LTD.
TOKAI STEP CO., LTD.
FUKOKU, Ltd.
KURIYAMA ALUMINUM Co., Ltd.

Pipingequipmentmaterials
wholesale

Wet areaequipment

Hot water
supplyequipment

Security
devices

Demand for
products andmerchandise•

Public 24%•

Private 76%

Net Sales by Segment

Segment

Main customers

Main products & merchandiseIndustrial
Materials

 Hardware stores Wholesalers Homeimprovement
center











Structural
Steel
Materials

 Steel fabricators








Electrical
Equipment Electrical work
operators
 Electricalappliance stores







Turn buckles
ShacklesScaffolding chains
Hooks and clips
ScrewsContainer bags
Tarpaulins
Machinery and equipment
Turnbuckle braces
Anchor bolts
High strength bolts
Self-supporting Kon-pieces
Kon-deck bars
Ceramic tabs
Air-conditioning equipment(Air-conditioners, ventilation fans and ductfans)
Lighting equipment(LED lightings, lighting fixtures for housing)Environmentally friendly items (solar
power generation, energy-efficient hot
water tanks [EcoCute])
Electrical wires, power distribution
boards, control panels, various sensors

Net sales by segment (FY2021)

Electrical
Equipment

8,243
million yen

Structural 14%
Steel Materials

Industrial

14,035 million yen

Materials

23%

37,282 million yen
63%

9Distribution Channels
Suppliers
Construction and civil engineering-related

Overseas

In-housefactory(manufacturers, etc.)

procurement

15%

50%

20%

Electrical equipment
manufactures

15%※ Manufacturer function(In-house manufactured products and OEM products)

Approximately 40%

Sales contribution ratio by business segments (FY2021)
Industrial Materials

Structural Steel Materials

Electrical Equipment

63%

23%

14%

Customers

Tradingcompanies

Overseas

HardwarestoresWholesalers

Electricalappliance
storesHome
improvement
center, etc.

End-users
Construction and civil engineering
Industry, etc.

Steelfabricators

Electrical work
operators

10

Segment Overview(As of end March 2021)

Consolidated

Industrial
Materials

Structural
Steel Materials

Electrical
Equipment

59,562 million yen

37,282 million yen

14,035 million yen

8,243 million yen

InhouseInhouseNet sales

13%

16%
Domesticallysourced

67%

InhouseImported

17%

Domesticallysourced

62%

32%

Imported25%

Domesticallysourced

60%

Imported

8%

Domestically-sourced100%

Note: KONDOTEC and Sanwa Denzai are included in the pie charts.
Number of operating sites

98

68

17

Number of items

Approx. 50,000

Number of customers

Approx. 25,000

Approx. 15,000

Approx. 5,000

Approx. 5,000

Number ofcustomers

2,526

1,621

627

278

Net sales

2,612

1,230

555

826

N e w
customers(million yen)

Approx. 40,000

13

Note: Number of customers and new customers include KONDOTEC and Sanwa Denzai.
Note: New customers show sum of this year and previous year’s results.

Approx. 10,000

11Market Size for Main Products and MerchandiseMarket size for main products, merchandise and corresponding market shares (As of end March 2021)
 We offer an extensive range of products including higher market shares products and merchandise (such as wire
ropes, nets, sheets and screws) and products and merchandise with potential for growth other than the following.

Formwork materials
Market size%

About 120 billion yen

Z-Mark hardware
Markets size%%
About 26 billion yen

Braces%Market size
■ Products■ Merchandise

About 9 billion yen(KONDOTEC estimates)

Market size

Market size

About 41 billion yen

Welding wires

Anchor bolts

High strength bolts%
Market size
About 10 billion yen%

About 13 billion yen

Other higher shareproducts and merchandise Scaffolding
chains77.1%

 Turnbuckle

30.8%

 Shackles

40.4%
12

3. Main Products and Merchandise

Sales Fields
We supply roughly 50,000 products and merchandise to various industries
in response to changes of the times and customer needs.
Wind power generation

Agriculture and horticulture

Agriculture and forestry

Railroad and railroad bridge

Prefabricatedconstruction

Woodenconstruction

Slopeprotection work

Construction
Park playgroundequipment

Road

Detached housing
and condominiums
Greening
materials

Electrical equipment

Solar power

Factory/Plant
Cargo handling

Logistics

Working atheightSea freight
VesselSteel frame construction

Port

Fishery andaquaculture

Civil engineering work

Disaster emergency
supplies

Coastal protection work
Railroads

Construction
The construction field is one of thebiggest sales field. Materials for Steelframe structures such as turnbuckle
braces and round separators forreinforced concrete buildings are main
products manufactured in-house. We
obtained Z-mark certification and Xmark certification in wooden
construction field. We offer various
temporary scaffolding materials used ina wide range of constructions.








Lifting equipment
Turnbuckle braces
Steel frame materials
Foundation materials
Formwork materials
Architectural hardware

When railroad construction has
specific requirements that differ fromother constructions, we offer specificproducts to Japan Railways Group andother railway companies.

Civil engineeringScrewsLifting equipment
Materials for river
improvement andslope protection

There are various fields with growthprospects in civil engineering including
infrastructure-related projects (such as
road construction and port engineering),
slope protection and river engineering.
Demand for materials for urgent postdisaster reconstruction is growing alongwith the increasing frequency of natural
disasters in recent years. We keep
inventory at all of our operating sites tofacilitate quick delivery in the event of adisaster.









Street materials andgreening materials
Materials for river
improvement andslope protection
Lifting equipment
Worksite equipment
Nets and sheets
Port materials

14Turnbuckle Braces Turnbuckle braces are connected cornerwise to prevent the collapse of buildings exposed to lateral pressure.
 Turnbuckle braces are used as seismic bracing products in prefabricated steel-frame houses and steel
constructions such as shopping centers, factories and warehouses. They can also be seen in everyday locations,
including on ceilings of railway station platforms.

15

Anchor Bolts
 Anchor bolts are important materials used to connect a building structure to a concrete foundation. Their main
purpose is to prevent the building connected to the concrete foundation from tilting and falling over.

Afterconstruction
work

Anchor bolts

Anchor frame (Kon-base Eco)

16

Container Bags
 Container bags are used in a wide range of settings such as 1) transportation and storage of feedstuff, fertilizer,
plastic pellets, and industrial waste; 2) rubble disposal and decontamination work; and 3) post-disasterreconstruction work (used as large sandbags).

17

Scaffolding Installation
 Our subsidiaries, TECBULID, TOKAI STEP and FUKOKU, handle assembly and disassembly of scaffolding is used forconstruction and repair of warehouses, detached homes and condominiums.

Overpass repair

Condominium construction18

4. Q2 FY2022 Financial Results and Analysis

Q2 FY2022 Consolidated Financial Results(million yen)

Q2

Q2

YoY

FY20201

FY2022

Amount%Net sales

28,95231,304+2,352+8.1%

Gross profit

6,602

7,010

+408

+6.2%

SG&A expenses

5,026

5,392

+366

+7.3%

Operating income

1,576

1,618

+41

+2.7%

Ordinary income

1,626

1,702

+76

+4.7%

Profit attributable toowner of parent

1,042

1,065

+22

+2.2%

ＥBＩＴＤＡ

2,148

2,336

+188

+8.8%

Note: EBITDA= Income before income taxes + Interest expenses + Depreciation + Amortization of goodwill

20

Operating Income Analysis (Consolidated)
Operating income analysis(million yen)

Quarterly GPM
Consolidated

Parent

△97
313

△177

3
23.7%
23.3%
23.6%

23.0%
The impacts of making
Nippon Scaffolding
Holdings and FUKOKU
subsidiaries

1,576

22.7%

1,618
22.8%

22.8%

22.4%

22.1%

22.5%
22.3%

21.9%
Q2 FY2021

Net Sales

Gross Profit

SG&A

MarginExpenses

Other

Q2 FY2022

Note: The following figures do not include Nippon Scaffolding Holdings
and FUKOKU.
Gross Profit
Margin

22.8%→22.5%

SG&A
expenses

Bonuses +56 million yen
Salaries +43 million yen
Freight and packing costs +34 million yen
Supplies expenses +19 million yen
Commission expenses +12 million yen

Q1 FY2021 Q2 FY2021 Q3 FY2021 Q4 FY2021 Q1 FY2022 Q2 FY2022

21

Q2 FY2022 Consolidated Financial Results

Progress for FY2022 Forecast

Progress for FY2022 forecast (million yen)

Net sales and operating income (million yen)

■ Q2 FY2022 ■ Full-year forecast
Net sales

Net sales

Full-year
forecast

Operating income

Progress

31,30463,700Gross profit

Full-year
forecast

Progress

7,010

14,75047.5%

Operating income

Full-year
forecast

Progress

3,370

48.0%

1,618

49.1%

14,112

14,83915,117

915

970

660

1,702

Profit attributable toowner of parent
1,065

14,978

988

808

629

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

Quarterly percentage breakdown of net sales andoperating income (5-year average)
Q1 – Q2

Ordinary income

16,326

15,49248.9%

Q1 – Q2

47.8%

Full-year
forecast

Progress

Q4

Q1

Q4

Q1

3,500

48.7%

25.0%

23.6%

22.9%

20.8%

Net
sales
Full-year
forecast

Progress

2,450

43.5%

Operatingincome

Q3

Q2

Q3

Q2

26.1%

25.3%

29.3%

27.0%

22

Consolidated Balance Sheet [Assets](million yen)

FY2021Q2 FY2022

ChangeCurrent assets
Non-current assets

Cash and deposits

11,317

10,648△669

Notes and receivable –trade,and contract assets

12,372

12,397+25

Electronically recordedmonetary claims operating

1,984

2,323

+339

Inventories

4,932

5,783

+851

962

1,156

+193

Total current assets

31,56932,310+740

Property, plant and equipment

11,84812,311+463

Intangible assets

5,044

4,903

△141

963

913

△50

17,85618,128+271

49,42650,438+1,012

Other

Investments and other assets
Total non-current-assets

Total assets

23Consolidated Balance Sheet [Liabilities and Net Assets](million yen)

FY2021Q2 FY2022

Change

3,978

4,047

+69

Electronically recorded
obligations – operations

8,029

8,380

+351

9,202

10,083+880△1,173△1,702

△529

3,110

3,110

－

596

624

+28

Other

3,124

3,151

+27

Total current liabilities

18,83819,314+475

Non-current liabilities

1,564

1,385

△178

Total liabilities

20,40320,700+297

Shareholder’s equity

30,21031,019+809

Accumulated other comprehensive
income△1,216△1,281

△65

28

－

△28

Total net assets

29,022

29,738+715

Total liabilities and net assets

49,42650,438+1,012Current liabilities

Notes and accounts payable – trade

Breakdown Electronically recorded obligations–operations
Repayment before maturity

Short-term loans payable
Income taxes payable

Net assets

Subscription rights to shares24

5. Q2 FY2022 Financial Results and Analysis by Segment

Q2 FY2022 Financial Results by Segment(million yen)

Q2 FY2021

Industrial
Materials

Net sales

Q2 FY2022

Change(%)

Full-year
forecast

Progress

Structural
Steel
Materials
Electrical
Equipment

17,783

19,428+9.2%

40,45248.0%

Segment
profit or loss

946

937

△0.9%

2,265

41.4%

EBITDA

1,282

1,329

+3.6%

－

－

Net sales

7,126

7,815

+9.7%

14,68753.2%

Segment
profit or loss

551

621

+12.6%940

66.1%

EBITDA

564

641+13.6%－－Net sales

4,042

4,060

+0.5%

8,560

47.4%

Segment
profit or loss

96

71

△25.7%214

33.3%

EBITDA

109

86△20.9%－－

Note: Segment profit or loss has been adjusted with operating income on the quarterly consolidated financial statements.
Note: EBITDA= Segment profit or loss + Depreciation + Amortization of goodwill

26

Industrial Materials
Net sales and segment profit or loss

(million yen) Quarterly YoY
Net sales
Segment profit or loss

19,42817,783
946

937

YoY
8,758

+9.2%

669

YoY

553

△0.9%

Q2 FY2021

9,025

9,536

9,961

593

9,900

540
397

393

Q2 FY2022

9,528

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

Factors affecting net sales
Net sales increased by about 1,650 million yen YoY.
Sales of hardware for wooden homes, temporary scaffolding materials and worksite equipment remained solid, supported by demand
recovery in the construction market and the last-minute demand before the price hike. There was also a sales contribution from making
Fukoku a subsidiary in January 2021.
Increased/decreased amount in net sales (million yen)
Products(approximate)+130

Braces/ +83

Sales increased due to some large orders.

Merchandise(approximate)+770

Hardware for wooden homes/ +201

Sales increased due to the demand recovery from the impactof the COVID-19 infection and a rise in sales prices.

Other

+746

FUKOKU
Nippon Scaffolding Holdings/ +701/+44

Sales increased on the contributions from new subsidiaries.

27

Segment profit or loss analysis

△102

73
△113

68

Goodwill amortization+1 million yen

937

Goodwill amortization incurred in Q2
136 million yen

Q2 FY2021

Sales
VolumeSales Price Gross Profit
Margin

SG&A
Expenses

Factors
Q2 FY2022
related tosubsidiaries

Note: The following figures do not include subsidiaries.
Sales
volume

27.3%

29.1%

29.2%

29.8%

28.8%
23.1%

30.7%

27.2%

30.6%
28.8%

19.5%
19.1%

26.3%

27.6%

19.3%

19.1%

19.0%
18.7%

Products △4 million yen Merchandise +78 million yen
Products +26 million yen Merchandise +38 million yen

GrossProfitMarginProducts 28.2% → 26.7%
Merchandise 22.1% → 21.6% (including imported
merchandise and domestically sourced merchandise)

SG&A
Expenses

Bonuses +55 million yen
Salaries +8 million yen
Freight and packing costs +6 million yen

23.2%

Total
products andmerchandise

Sales
price

Domesticallysourcedmerchandise

Operating income of subsidiaries+67 million yen

Importedmerchandise

Major increase/decrease
factors related tosubsidiaries

946

Quarterly GPM
Products
manufactured
in-house

65(million yen)

23.6%

22.7%

22.6%

22.1%

22.4%

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY202228

Structural Steel Materials
Net sales and segment profit or loss

(million yen) Quarterly YoY
Net sales

4,299

Segment profit or loss

7,815

7,126

YoY

3,467

3,658

3,616
3,293

3,516

+9.7%
404

621

551

YoY

311
240

260

+12.6%Q2 FY2021

Q2 FY2022

217
132

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

Factors affecting net sales

Net sales increased by about 690 million yen YoY.
Sales of high strength bolts, screws and machine・tools remained firm, supported by recovery in steel frame demand such as large
properties.
Increased/decreased amount in net sales (million yen)
Products(approximate)+140

Anchor bolts/ +99

Sales increased due to higher sales prices and a rise in the number ofanchor bolt installation works.

Merchandise(approximate)+550

High strength bolts/+231

Orders increased due to the demand recovery from the impact of the
COVID-19 infection.

29

Segment profit or loss analysis

Quarterly GPM
Products
manufactured
in-house

84(million yen)

△32
△55

72

551

Importedmerchandise

621

29.3%

30.7%

30.7%

36.9%
35.5%

26.7%

31.1%

32.2%

34.2%

34.0%

36.7%

35.8%

19.3%

Gross Profit
Margin

SG&A
Expenses

Q2 FY2022

Products △0 million yen Merchandise +72 million yen

Sales
price

Products +42 million yen Merchandise +42 million yen

GrossProfitMarginProducts 30.0% → 31.7%
Merchandise 20.9% → 19.5% (including imported
merchandise and domestically sourced merchandise)

SG&A
Expenses

Freight and packing costs +27 million yen
Depreciation +6 million yen

Total
products andmerchandise

Sales
volumeDomesticallysourcedmerchandise

Q2 FY2021 Sales Volume Sales Price

18.8%
18.3%

18.0%
17.4%

17.3%

24.0%

23.9%

24.0%

23.7%

23.4%

21.6%

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY202230

Electrical Equipment
Net sales and segment profit or loss

(million yen) Quarterly YoY
Net sales
Segment profit or loss

4,060

4,042

2,237

2,155

YoY

1,963

1,886

2,126
1,933

+0.5%
112

96
71

YoY

69

△25.7%

44
28

26

Q2 FY2021

Q2 FY2022

42

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

Factors affecting net sales
Net sales increased by about 20 million yen YoY.
Despite sluggishness in the market environment due to construction delays caused by the spread of the coronavirus and bad weather inthe summer, sales increased thanks to securing large-scale LED lighting installation works and a rise in sales prices.
Increased/decreased amount in net sales (million yen)
Electrical wires+110

Sales increased due an increase in unit sales prices.

Air-conditioners
Ventilation fans△77

Orders decreased due to bad weather in the summer.

31

Segment profit or loss analysis(million yen)

Quarterly GPM and the number of projects

17.4%

Gross Profit Margin

14

△22
△16

96

16.8%

16.8%

16.6%

16.4%

16.0%

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

71

Net Sales

Gross Profit
Margin

SG&A Expenses

Gross Profit
Margin

16.7% → 16.4%

SG&A
ExpensesCommission expenses +12 million yen

Q2 FY2022

The number of projects※

Q2 FY2021

17
14
11
8

7

6

Q1

Q2

Q3

Q4

Q1

Q2

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

Note: Orders worth over 5 million yen from electrical work operators.

32

6. Response to ESG Issues

ESG Basic Policy In engaging in corporate activities, we recognize that management promoting response to ESG (environment, social and governance)
issues will lead to sustainable growth.

Materiality
 Provision of optimal products
and merchandise forenvironment measures

Environment Business activities paying
attention to the environment

Relevant SDGs

Expansion of the handling of environment-related
products and merchandise
Initiatives for environmental protection andenergy-saving
Management of emissions (material balance) Product liability and quality
assurance

SocialGovernance

Quality control of products and merchandise
Stance for security and safety

 Procurement and provision ofhigh-value-added products,
merchandise and services

Provision of better products, merchandise forcustomers Communication withshareholders and investors

Engagement with shareholders

 Appropriate information
disclosure and security

Stance for information disclosure Co-existence with local
communities

Operating site opening plan Safety measures and workstyle reform

Risk control for disasters and others

Information security measures

Response to disasters and contributions to themFor employees’ health, safety and hygiene Human resource development
and diversity

・Policy on human resource development
・Diversity
・Employee benefits Strengthening of corporate
governanceCorporate governance Thorough compliance

Compliance Basic Policy

34

Initiatives
 We have established our ESG basic policy and link it to sustainable corporate growth by incorporating it in the
management strategy.
 Quality Assurance Department changed the name to SDGs Promotion Department to work actively towards
achieving the SDGs targets. In addition to auditing Quality Assurance by formerly Quality Assurance Department,
SDGs Promotion Department will explore, research and design initiatives to facilitate achieving the SDGs targets.
Current Specific Initiatives
Cost Reduction and Risk Management
 Implementation of energy-saving measures

Environment(LED installations, achieving 10% cut in power usage) Acquisition of ISO14001

Enhancement of Corporate Value
 Sale of environment-related merchandise Installation of solar power generation
 Introduction of internal training and “Lifting equipment advisor”

 Acquisition of ISO9001 and compliance with ISO/JIS andSocialother industry standards

system (as an internally certified qualification)
 Maternity leave/childcare leave/support for returning to Introduction of the risk control manual

work/Recruitment of foreign students studying in Japan Holding of Safety and Health Committee

 Introduction of Employee stock ownership plan (ESOP) and
Employee shareholders association system

 Prevention of the manifestation of potential costs by theGovernancedevelopment governance system Introduction of the restricted stock remuneration plan Evaluation of the effectiveness of the Board of Directors
 Establishment of a Nomination and Compensation Committee and Formulation of a compliance manualtransition to a Company with an Audit & Supervisory Committee

Improve Productivity and Profitability

Sales Growth and Business Expansion

Sustainable Growth35

Initiatives: Environment
Environment
Provision of optimal products and merchandisefor environment measures

Business activities paying attention
to the environment

 Oil hunter Initiatives for environmental protection and energy-saving

This is an eco-mark certified oil absorption
mat using recycled materials. It is used forthe disposing of oil at the time of marine
pollution caused by oil spills andat factories which use oil.

 Initiatives for environmental protection

 Merchandise using renewable plastics

 LED installations

KONDOTEC also offers recycled PP strapping
merchandise made from plastic collected fromconsumers and construction deck plates madefrom biomass plastics, both of which an Eco
Mark certified.

As part of efforts to reduce CO2 emissions, KONDOTEC has
begun plans to replace Company cars with EVs, and to switch
to renewable energy sources to power Company facilities.

In 2015, we completed installing LED lighting in factories andare currently in the process of installing LED lighting in ouroperating sites. These LED installations are being carried out
in cooperation with Sanwa Denzai Co., Ltd., our subsidiaryand wholesaler of electric equipment.

 Acquisition of ISO14001

 Hardware for CLT construction
Our double end stub bolt set manufactured at
our Shiga Factory is certified as an “x (crossmark) hardware” for meeting the requirements
for metallic hardware used in CLT panel
construction (set by the Japan Housing andWood Technology Center). The metallic
hardware standard for CLT panel construction
is a standard for metallic hardware used inconstruction works using CLT, a nextgeneration lumber material that contributes toreducing CO2 emissions.

We obtained ISO14001 certification for Shiga Factory and
Kanto Factory. We will continue to work on business activities
with full consideration for environmental preservation.
With regard to two other factories, we are targeting theacquisition of the certification.

36

Initiatives: Social
SocialHuman resource development and diversity
 We aim to create a working environment in which employees with diverse backgrounds fully demonstrate their respective
abilities and are motivated to work.
 Male-female ratio of new employees with main career track(※ As of end March 2021)
Year ofemployment

April-2021
April-2020
April-2019
April-2018
April-2017

Male

Female

Total

10

10

20

persons

persons

persons11

7

18

persons

persons

persons19

4

23

persons

persons

persons12

618

persons

persons

persons8
persons

10

18

persons

persons

Nationality ofinternational
student(other than Japan)

Number ofturnover (※)

0 person1 personBrazil0 personKorea

2 persons
4 persons Benefit program
Number of employees taking childcare leave (As of end March 2021)
Those who tookchildcare leave
during the period

Those who newly tookchildcare leave during
the period

Those who returned to work
during the period2020.4.1~2021.3.31

3 persons

7 persons

2 persons2019.4.1~2020.3.31

3 persons

4 persons

4 persons2018.4.1~2019.3.31

5 persons

2 persons

3 personsof athlete employees aspiring
TOPIC Introduction
to participate in the Olympic GamesWe have been supporting our employees in competitive
sports.
◀ Javelin Throw◀ Discus Throw

Kiho Kuze

Mika
Yamamoto◀ Pole Vault◀ Hammer Throw

Yuki Noshi

Sara
Fujimoto

Please check latest updates andTrack & Field Club’s activity reports
on our website.

37

Initiatives: Governance
GovernanceCorporate governance KONDOTEC recognize that strengthening and enhancing corporate governance through increasing soundness, transparency
and efficiency of management and maximizing corporate value is one of the most important management objectives.

Determination of compensation for
executive members

KONDOTEC has introduced a restricted stock compensation plan to promote its shared values
with its shareholders and increase the contribution of its Directors (excluding Outside Directors
and Directors who are Audit & Supervisory Committee Members) and Executive Officers to
performance and enhancement of corporate value.

Establishment of Audit &Supervisory Committee

KONDOTEC works to enhance corporate governance and corporate value by increasing
soundness and transparency of management. Furthermore, we grant voting rights for the Boardof Directors to Directors who are Audit & Supervisory Committee members with the aim ofstrengthening supervisory functions.

Formulation and announcement ofmanagement strategy andmanagement plan

KONDOTEC accurately track its cost of capital (Weighted Average Cost of Capital[WACC]),
formulates a medium-term management plan, and publishes a management resources
allocation plan that includes growth investments (personnel, capital, investment and strategic
investment) aimed at achieving targets for net sales, operating income, ROE, and DOE on its
website and other platforms. In addition, we explain concrete measures for achieving ourtargets at financial results briefings. We review our medium-term plan each year in light ofearnings and anticipated social and economic trends. In cases when we revise plans, we explain
the changes and the reasons for them at financial results briefings or shareholder meetings.

38

7. Growth Strategies

Towards Achieving 100 Billion Yen Sales Target
 We target consolidated sales of 100 billion yen in the 2020s by strengthening the earnings capability of existing core businesses andexpanding into fields with growth prospects.

100 billion yen

M&A strategies

1,000

Accelerate growth with current KONDOTEC (organic) and future
KONDOTEC (periphery-strengthening)
Strengthen businesses other thanexisting ones

Strategies for existing businesses

Organic growth strategies

Periphery-strengthening
growth strategies•••

Increasing presence in foreign
markets
Entering into neighborhood
Expanding online businesses, etc.

750

FY201650.2 billion yen
500

FY200525.9 billion yen
250

Net sales (100 million yen)

① Four growth strategies
 Cultivation of new customers
 Offer of new products andmerchandise Adoption of flexible sales methods
 Cultivation of distribution routes② Expansion of operating sites③ Response to natural disasters, etc.

Medium-term management
plan (FY2022–FY2024)

0
1953

1963

1973

1983

1993

2003

2013

2023

40

Organic Growth① Four Growth Strategies～ Cultivation of New Customers and Offer of New Products and Merchandise ～Cultivation of new customers

Offer of new products and merchandise We achieve a monthly average of one new customer per sales
representative. In addition, we exploit a yearly average of 10
dormant customers per sales representative. These activities
from the source for 20,000 sales customers.

 For the purpose of developing new merchandise, joint New
Products and Merchandise Committee meeting are held
between the sales division and the manufacturing divisionperiodically to discuss requests from customers and proposals
for improvement. We will continue to develop and cultivate
products and merchandise with even higher added value inorder to offer such products and merchandise.

Cultivation of new customers
Net sales (million yen)

New customers

2,612
1,032

1,087

2,526

FY2021

1,663

1,470

Q2 FY2021

Q2 FY2022

Cultivation of dormant customers

Net sales (million yen)

Q2 FY2021

Q2 FY2022

KONDO furring bolts

92

115

Hook bolts
with square shank

106

85

KT safely harness

8

5

Lightweightscaffolding chains“Carina”-

7

Net sales (million yen)
1,469

668

FY2021Q2 FY2021

679

Q2 FY2022

41

Organic Growth① Four Growth Strategies～ Adoption of Flexible Sales Methods and Cultivation of Distribution Routes ～Adoption of flexible sales methods

Cultivation of distribution routes


Differentiation strategies Launch of website, “Tsurikata” for lifting equipment
inspection
We have launched our website called, “Tsurikata” thatallows individual management for lifting equipment tosimplify inspection and maintenance of lifting equipment on
the website. Traditionally, inspection checklists have beenrecorded manually on paper, Tsurikata helps to carry out
inspection and keep inspection records on mobile devices,
including smartphones and tablets.

 We are working to expand our business into new sectors, suchas Home improvement centers and railroad companies, inaddition to the existing sales routes.
 We established the “E-commerce Group” in July 2017 to explore
sales through the Internet.

Net sales (million yen)Home improvement centers

830

345

FY2021Engaging in anchor bolt installation work
By engaging in anchor bolt installation work and thus gaining

early-stage access to construction sites, we are able to rapidlycollect information on required construction materials andleverage it in sales.

Net sales from anchor construction work (million yen)

Railroads

416

414
205

188

Q2 FY2022

Q2 FY2022

 We have in place a sales force dedicated to the Tokyo metropolitan
area to accommodate bulk purchasing from large trading
companies and headquarters of general construction companies
from which orders have been increasing in recent years.

Tokyo metropolitan sales (million yen)
912

950

FY2021516

546

Q2 FY2021

Q2 FY2022

FY2021434

435

Q2 FY2022

Q2 FY2022

42

Organic Growth② Expansion of Operating Sites
 We strive for expansion of operating sites which maintained a local-community-oriented sales structures in order to respond quickly tocustomer needs. Recently we opened the Okayama office in April 2018. We will continue to execute quick deliveries in an effort to realize
customer-focused management.

Expanding sales network:
99 operating sites (As of end September 2021)
Industrial Materials

68

Structural Steel Materials

17

Electrical Equipment

14＜Operating sites＞

History of operating site network expansion

2006

Akita Office, Fukushima Office

2012

Tohoku Office2015

Morioka Office2016

Nagano Office, Kumamoto Office2017＜Relocation＞
Shizuoka Office, Tokai Office2017

Sanwa Denzai Co., Ltd.
Aihoku Office

2018

Okayama Office2019

CHUOH GIKEN Co., Ltd.
Kusatsu Office2021＜Relocation＞
Chukyo Branch

Industrial Materials
Structural Steel Materials
Industrial and Structural Steel Materials
Electrical Equipment
Factory43

Organic Growth③ Response to Natural Disasters
Response to “New stage” published by
Ministry of Land, Infrastructure, Transport and Tourism

Response to natural disasters
 We have established a structure that allows it to rapidly
respond to demand for products and merchandise that are
generally urgently required for reconstruction work in the wakeof natural disasters that affect various regions throughout
Japan, such as earthquakes or abnormal weather conditions,
including extremely heavy rainfall.

 Net sales of disaster-related products and merchandise(million yen)

4,620
3,577

4,857

5,141

5,132 5,112

5,461
4,941

4,662

3,877

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

Extraordinary climate in recent years
Heavy rains with hourly rainfall exceeding 50mm have increased
across Japan, raining locally, intensively and severely→ Recognized as a “New Stage”
Examples of weather conditions bringing disasters

2,382

12/3

 The Ministry of Land, Infrastructure, Transport and Tourism has
acknowledged that rainfall patterns are clearly changing and istherefore calling on companies to remain alert and prepare for a“new stage” of disaster prevention/mitigation measures.
 To respond to the “New Stage”, we will also focus on advance
preparation to minimize damage.

August 2014 heavy rain

Heavy rainfall in a wide range of areas from west toeastern Japan(Landslide disaster occurred in Hiroshima
prefecture)

July 2018 heavy rain

Record-breaking heavy rainfall in a wide range ofareas across Japan centered on western Japan

October 2019 Typhoon
No.19

Rain storm centered on eastern Japan

July 2020 heavy rain

Heavy rainfall in a wide range of areas centered on
northern Kyushu

22/3
(Q2)

Related merchandise
Flexible container bags Tarpaulins, Sandbags etc.

Net, Sheet etc.

To respond to the “New Stage”, we need mitigate damage toinfrastructures as much as possible and make advance preparations
for early recovery.
Source: the website of Ministry of Land, Infrastructure, Transport and Tourism

44

Periphery-Strengthening Growth

Increasing Presence in Foreign Markets
 Based on our view that increasing presence in foreign markets where growth is expected will contribute to enhancing our earning capability,
we established a subsidiary in Thailand in November 2012. We executed a capital increase in August 2014, acquired all shares from the two
joint venture companies and subsidiary.
 Currently, we are moving ahead with activities to expand our business in ASEAN countries with Thailand as our base location.
 We will further strengthen our sales & marketing capabilities by widening our sales network and reinforcing manpower with a view toincreasing the ratio of net sales from our overseas business.

Subsidiary in Thailand
Company name

KONDOTEC INTERNATIONAL (THAILAND) CO.,LTD.

Location

Bangkok, Thailand

Business areas

Import, export and local sale of industrials, structuralsteel materials and electrical equipment, etc. in Thailand

Paid-in capital
Date establishedNet sales of overseas business (Q2 FY2022)
FY2022
forecast(million yen)

Q2 FY2021

Q2 FY2022

International
Sales Division

11

22

24

102 million baht (approximately 316 million yen)

Local Subsidiaryin Thailand

85

58

210

November 1, 2012

Total

97

81

234

Note: Amounts of inter-company transaction are not included.

Percentage of sales by country (Q2 FY2022)

Expand business areasin the ASEAN region

ASEAN

74%

East
Asia/China

18%

Near andMiddle East
Other
countries

Thailand38%

Indonesia

21%

Singapore

10%

7%Vietnam

4%

1%

Malaysia

1%

45

Toward Accelerating Organic Growth Strategies and Periphery-Strengthening Growth Strategies

M&A Strategy (Corporate Acquisitions and Capital/Business Tie-Ups ) We view that pursuing corporate acquisitions and capital/business tie-ups is an important strategy to strengthen our business platform.

Four perspective in pursuing M&A
Neighboring industry

Deepening of business

Shipbuilding, transport, land and sea cargohandling, manufacturing & production facilities,
fishery, cultivation, agriculture, etc.

Reinforcement of materials that
support buildings and structures
Improving productivity

M&A strategies
Expansion of business area
Full-scale deployment
in ASEAN countries(e.g. Thailand, Indonesia)

1. Neighboring industry
Pursue M&A with companies
associated with industries otherthan the construction industry
and promote businessexpansion.
Actual case：
Sanwa Deazai Co., Ltd.

NEW！ KURIYAMA ALUMINUM Co., Ltd.

2. Deepening of business
Pursue M&A with material
manufactures, etc.
Actual case：
CHUOH GIKEN Co., Ltd.
TECBUILD CO., LTD.
TOKAI STEP CO., LTD.
FUKOKU, Ltd.

Amplifying sales patterns
Expansion of distribution channels
Entry into the online business

3. Expansion of business area

4. Amplifying sales patterns

Pursue M&A with companies
that maintain overseas sites topromote business area
expansion.

Pursue M&A with companies
that operates different sales
patterns from those of
KONDOTEC, such as retail,catalog-based selling, andonline sales.

46

M&A Strategy Recent Case
Acquisition of KURIYAMA ALUMINUM Co., Ltd. in October 2021
 KONDOTEC resolved to acquire shares in KURIYAMA ALUMINUM Co., Ltd. which develops and manufactures aluminum extrusion products andmade it a subsidiary with the aim of achieving sustainable growth and improving the corporate value of the KONDOTEC group over the
medium to long term by bringing aluminum products (for which future demand is predicted to increase) into the range handled by the group.

Overview of KURIYAMA ALUMINUM Co., Ltd.

Uses of aluminum extrusions

Company overview

Transportation vehicles

Company
name

KURIYAMA ALUMINUM Co., Ltd.

Location

Nakamura-ku, Nagoya

Business
areas

Development and manufacture ofaluminum extrusions

Capitalstock

96 million yen(As of September 2020）

Recent financial results (FY2020)
Net sales

1,382OperatingincomeOrdinary
income162

EBITDA

Products made of metal

Automobiles, trains,
aircrafts, vessel etc.

(million yen)

143
187

※EBITDA=Operating income + Depreciation

Aluminum cans,home appliances etc.

Civil engineeringand construction

Telecommunications

Bridges, roofing materials,
window frames etc.

Mobile phones, PCs etc.

Lightweight and high-strengthEasy to recycle

Widely used in

Characteristicsof Easy to form into new shapes
aluminumvarious fields！

Aluminum extrusions demand outlook to 2050
1,660

(thousand tons)

1,500◀ Head office

1,304

1,206
912

1,000

1,054

1,120

2019

2030

1,290

500

Head factory ▶

0Development and manufacture

Aluminum
extrusions

1990

2000

2010

2040

2050

※Source: Graph created based on ALUMINIUM VISION2050(JAPAN ALUMINIUM ASSOCIATION, September 2020).

47

8. Shareholder Return

Dividends and Shareholder Incentive Plan We target ROE of 10% or more and DOE of 2.5% or more with the aim of continuing to increase dividends.
 Shareholders receive the rice certificate per share once a year.

Dividend yield

Transition in dividends
Ordinary dividend

Increase in ordinary dividend

Closing price on October 29: 977 yen

Commemorative dividend

Since initial listing: No decrease in dividends

DOE

5.4%

52.0%

2.8%

(As of end March 2021)(forecast)

3.3％

31yen

26yen
24yen
23yen
22yen

Performance indicators for dividend
Dividend
payout ratio

Dividend yield※

29yenPlan to increase dividends
for the 11th consecutive period
ROE

32yen

20yen

13yen

15.5yen
14yen
13.5yen

11yen
10yen

1999

2003

～4.2％

Shareholder incentive plan
Number of shares held

Shareholder
incentive

100 or more shares, fewer than
1,000 shares

2 kg-rice certificate

1,000 or more shares, fewer than
10,000 shares

5 kg-rice certificate

10,000 or more shares

10 kg-rice certificate(equivalent to 880 yen)(equivalent to 2,200 yen)(equivalent to 4,400 yen)

Note: 1 kg-rice certificate is worth 440 yen.

Acquisition of treasury stocks

6yen
5yen 5.5yen

1995

Dividend yield including
shareholder incentive plan※

2007

2011

2015

2019

Note: Dividend per share have been retroactively adjusted to reflect the impact of thestock split effective January 1, 2012.

Total acquisition
price

900 million yen (maximum)

Total number ofshares acquired

1,000,000 shares (maximum)

Acquisition
periodJanuary 4, 2022 - October 31, 2022

49

Transition of Stock Price
Transition of stock price
Nikkei average stock price

1,318

1,250

30,0001,000

24,000750

18,000500

12,000

250

6,000

0

0
10/4 11/4 12/4 13/4 14/4 15/4 16/4 17/4 18/4 19/4 20/4 21/4

Trading volume (thousand shares)

Nikkei average stock price (yen)

KONDOTEC stock price (yen)Stock price (after stock split)

Ranking among listed companies

4,000

Among 3,870 listed companies …
ROE

1,614thProfitattributable toowner of parent

1,359thOrdinary income

1,154th

Net assets

1,421stMarketcapitalization

1,618thPBR

2,375thPER

2,585th

Trading volume
2,000

0
10/4 11/4 12/4 13/4 14/4 15/4 16/4 17/4 18/4 19/4 20/4 21/4

Note: The closing prices and trading volumes have been retroactively adjusted

to reflect the impact of the stock split effective January 1, 2012.
Note: In December 2012, KONDOTEC issued new shares through a public
offering and third-party allotment.

Closing price on October 29

977 yen
PER： 10.5 PBR：0.9

Source: Mizuho Securities Co., Ltd. (As of September 30, 2021)

EPS： 93.42 yen (FY2022 forecast)
BPS： 1,110.01 yen (As of end March 2021)

50

9. Highlights of Results

Highlights of Consolidated Financial Results
Net sales(million yen)

31,304Progressmillion yen 49.1%

57,82847,991 49,168
38,74550,21150,410Operating income(million yen)

1,618

Progressmillion yen 48.0%

63,70060,599 59,562

3,907

52,811
3,271

41,153

3,303

3,441

3,516

4,085

3,537

3,370

3,354

2,664
31,304
1,926
1,618

12/3

13/3

14/3

15/3

Ordinary income(million yen)

16/3

17/3

18/3

19/3

1,702

3,408

3,544

3,614

21/3

22/3

22/3

(Q2)

forecast

Progressmillion yen 48.7%

4,023
3,368

20/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

Profit attributable toowner of parent

1,065(million yen)

4,177
3,500

3,455

1,992

2,098

20/3

21/3

22/3

22/3

(Q2)

forecast

Progressmillion yen 43.5%

2,748
2,497

3,655

19/3

2,875

2,523

2,450

2,239

2,754
1,605

1,561

2,019
1,702

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

1,065

1,046

22/3

22/3

(Q2)

forecast

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

22/3

(Q2)

forecast

52

Highlights of Consolidated Financial Results

29,738

Net assets (million yen)

28,387

million yen

ROE (%)

Target29,022 29,738

11.1

26,756

10.8

10.9

10

% or higher

11.4
10.7

10.7

10.0

24,74510.4

10% or higher

22,71918,783

20,231

21,102
7.1

16,9905.8

15,097

5.4

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

(Q2)

32.00

Dividend per share (yen)DOE (%)

yen

31.00

22/3
forecast

Target2.5% or higher

32.00

29.00
26.00
22.00

23.00

24.00

2.8

20.00

13.00

13.50

14.00

11/3

12/3

13/3

2.3

2.4

2.3

2.9

2.8

2.7

2.7

2.8

2.4

2.8
2.5% or higher

15.50

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3
forecast

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3
forecast

53

Highlights of Consolidated Financial Results
12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3 Q2 22/3 (forecast)

Net sales

38,745

41,15347,991

49,16850,21150,41052,811

57,82860,59959,56231,30463,700Operating profit

1,926

2,664

3,271

3,303

3,441

3,516

3,537

3,907

4,085

3,354

1,618

3,370

Ordinary income

2,019

2,754

3,368

3,408

3,544

3,614

3,655

4,023

4,177

3,455

1,702

3,500

Profit attributable to owner of parent

1,046

1,605

1,992

2,098

2,239

2,497

2,523

2,748

2,875

1,561

1,065

2,450

EBITDA

2,492

3,178

3,846

3,948

3,910

4,052

4,079

4,425

4,916

3,783

2,336

-

Capital investment

180

566

679

403

842

695

423

981

917

1,097

-

-

Depreciation

428

390

418

449

405

438

423

404

697

897

-

-

Total assets

28,40331,192

34,48135,186

34,64536,52439,313

43,82046,33549,42650,438-

Net assets

15,097

16,99018,783

20,231

21,102

22,71924,74526,75628,38729,022

29,738

-

705

808

806

636

508

501

500

853

1,106

3,875

-

-

Result of Operations (million yen)

Financial Position (million yen)Interest-bearing debt
Cash Flows (million yen)
Cash flows from operating activities

1,454

2,077

1,887

1,818

1,945

2,737

2,429

2,699

4,385

4,158

686

-

Cash flows from investing activities△ 1,511

△ 494

△ 660

828

△ 829

△ 646

△ 506 △ 1,551△ 5,205△ 2,226△ 834-

Cash flows from financing activities

△ 550

426

△ 389

△ 699 △ 1,092 △ 1,032

△ 703

△ 915

△ 992

1,060

△ 496

-

Cash and cash equivalents, end of year

2,790

4,798

5,636

7,626

7,594

8,660

9,893

10,1338,305

11,317

10,648-

Profit attributable to owners of parent
per share

40.36

60.77

72.13

75.91

81.01

93.29

94.25

102.65107.46

59.60

40.70

93.42

Net assets per share

582.41615.12679.27730.49774.18846.59922.62996.99

1,071.09

1,110.01--

Dividend per share

13.50

14.00

15.50

20.00

22.00

23.00

24.00

26.00

29.00

31.00

-

32.00

Per Share Information (yen)Financial Indicators
Gross profit margin (%)

5.0

6.5

6.8

6.7

6.9

7.0

6.7

6.8

6.7

5.6

5.2

4.9

ROE (%)

7.1

10.0

11.1

10.8

10.9

11.4

10.7

10.7

10.4

5.4

-

10% or higher

Equity ratio (%)

53.2

54.5

54.4

57.4

60.8

62.1

62.8

61.0

61.2

58.7

59.0

-

DOE (%)

2.4

2.3

2.4

2.8

2.9

2.8

2.7

2.7

2.8

2.8

-

2.5% or higher

Stock closing price (yen)

625

606

718

786

834

933

939

1,006

929

1,069

995

-

Price earnings ratio (times)

15.5

10.0

10.0

10.4

10.3

10.0

10.0

9.8

8.6

17.9

-

-

Stock Price Index

54

Quarterly Highlights
Consolidated
Net sales (million yen)
16,053

15,665
12,433Q1

13,22014,050Q2

Q3

13,108Q4

13,613

14,350

Q1

Q2

18/3

Q3

14,19914,313Q4Q115,585

Q2

19/3

Q3

14,647

Q4

14,112

Q1

14,83915,117

15,492

Q2

Q3

Q4

20/3

16,326
14,978

Q1

Q2

21/3

Q3

Q4

Q3

Q4

22/3

Operating income (million yen)
1,268
1,147
960

944

911

987

891

875

988

970

915

858

808

760

721

Q1

1,203

660

Q2

Q3
18/3

Q4

Q1

Q2

Q3
19/3

Q4

Q1

Q2

Q3
20/3

Q4

Q1

629

Q2

Q3
21/3

Q4

Q1

Q2
22/3

55

Quarterly Highlights
Industrial Materials
Net sales (million yen)

8,919
8,052
7,228

7,373

Q1

Q2

Q3

7,607

7,664

Q4

Q1

7,968

Q2

18/3

7,907

Q3

Q4

9,175

9,227

Q2

Q3

8,371

Q1

19/3

8,685

8,758

9,025

Q4

Q1

Q2

20/3

9,536

Q3

9,961

Q4

9,528

Q1

21/3

9,900

Q2

Q3

Q4

Q3

Q4

22/3

Segment profit or loss (million yen)
672

640
562
505

532
474

429

669
593

553

544

509

540

472
421

397

393

329

Q1

Q2

Q3
18/3

Q4

Q1

Q2

Q3
19/3

Q4

Q1

Q2

Q3
20/3

Q4

Q1

Q2

Q3
21/3

Q4

Q1

Q2
22/3

56

Quarterly Highlights
Structural Steel Materials
Net sales (million yen)

4,597
3,720

3,991

Q2

4,412
4,019

4,322

4,299
3,859

3,835

3,467

3,420

3,277

Q1

3,913

4,225

Q3

Q4

Q1

Q2

18/3

Q3

Q4

Q1

Q2

19/3

Q3

Q4

Q1

3,658

Q2

20/3

3,616

Q3

3,293

Q4

3,516

Q1

Q2

21/3

Q3

Q4

Q3

Q4

22/3

Segment profit or loss (million yen)
552
497

378

388

369

416

482
404

399
360

338

311

302

287

260

240

217
132

Q1

Q2

Q3

18/3

Q4

Q1

Q2

Q3

19/3

Q4

Q1

Q2

Q3

20/3

Q4

Q1

Q2

Q3

21/3

Q4

Q1

Q2

22/3

57

Quarterly Highlights
Electrical Equipment
Net sales (million yen)
2,465
2,125

1,927

Q1

2,005

Q2

Q3

2,080

Q4

2,035

Q1

2,156

2,148

Q2

18/3

Q3

2,272

Q4

2,107

Q1

2,035

2,101

Q3

Q4

Q2

19/3

2,237

2,155
1,963

1,886

Q1

Q2

20/3

Q3

2,126
1,933

Q4

Q1

Q2

21/3

Q3

Q4

Q3

Q4

22/3

Segment profit or loss (million yen)

89

72

66

58

112

106

97

63
52

28

69
59
44

26

42
28

26

7

Q1

Q2

Q3

18/3

Q4

Q1

Q2

Q3

19/3

Q4

Q1

Q2

Q3

20/3

Q4

Q1

Q2

Q3

21/3

Q4

Q1

Q2

22/3

58

Notes on forward-looking statements
This document contains forward-looking statements and business plans.
These statements were made based on economic environment and business
policies at the time of the release. Actual results may differ materially fromthese forward-looking statements due to various factors and changes.

2-2-90 Sakaigawa, Nishi-ku, Osaka
550-0024 Japan
Telephone: +81-6-6582-8441
Website: https://www.kondotec.co.jp
E-mail：kikaku@kondotec.co.jp