Financial Results Report for
the Fiscal Year 2023 (period ending March 31, 2024)

Disclaimer: This document is an English translation of the original
document in Japanese and has been prepared solely for reference
purposes. In the event of any discrepancy between this English
translation and the original in Japanese, the original shall prevailin all respects.
Copyright© YONDENKO CORPORATION. All Rights Reserved.

(TSE Prime Market: 1939)
May. 2024

AgendaⅠ

2023 fiscal year results

Ⅱ

Forecast for 2024 fiscal year

Ⅲ Capital profitability
and shareholder returns

Ⅳ P r o g r e s s o f M e d i u m - Te r mManagement Guidelines

Ⅴ

Copyright© YONDENKO CORPORATION. All Rights Reserved.

To p i c s2AgendaⅠ

2023 fiscal year results

Ⅱ

Forecast for 2024 fiscal year

Ⅲ Capital profitability
and shareholder returns

Ⅳ P r o g r e s s o f M e d i u m - Te r mManagement Guidelines

Ⅴ

Copyright© YONDENKO CORPORATION. All Rights Reserved.

To p i c s

3Operating Results（Consolidated）

I 2023 fiscal year results

Business Environment■ Orders received relatively favorable due to continued signs of recovery in capital investment and public investment■ Need to pay attention to the impact on the decision to win an order, the cost of construction, and the progress of construction work due to a risein the price of materials and equipment and delays in procurement.
Our group's achievements■ Orders received reached a record high■ Net sales are the second highest ever, after FY2021, and all profits are record highs➤ Stable purchasing of materials and equipment and thorough cost control contributed

FY2022

YoYchangeFY2023(Billion yen)Orders received

91.2

97.7

+6.5

Net sales

89.1

92.1

+2.9

Operating profit

4.9

6.4

+1.4

Ordinary profit

5.5

7.0

+1.4

Profit attributable to owners of parent

3.7

4.5

+0.8

239.24 yen

290.12 yen+50.88 yen

Basic earnings per share

Copyright© YONDENKO CORPORATION. All Rights Reserved.

4

Factors behind Changes in Net Sales (Consolidated)

I 2023 fiscal year results(Billion yen)

Air conditioning and pipes

Side business

Consolidation adjustment

+1.4

+0.2

+0.7

Power transmission and civil engineering
Power distribution

+0.9

+1.1

ICT

Group Company

（0.3）

（0.5）

Electrical and instrumentation

（0.6）

92.1
89.1

FY2022

Copyright© YONDENKO CORPORATION. All Rights Reserved.

FY20235

Trends in Operating Results（Consolidated）
Net sales

Operating profit

I 2023 fiscal year results(Billion yen)

Profit
92.6

92.1

89.6

89.1

82.7

17.5% 6.4
15.8%

15.7%
14.3%

Gross profit margin

15.7%
5.4

5.0

4.9
4.5
3.7

3.6

3.4

3.7
7.0%

5.8%

5.7%
4.1%

2.2

Operating income margin

7.5%
4.9%

5.6%

7.2%

7.8%
6.8%

ROE

FY2019Copyright© YONDENKO CORPORATION. All Rights Reserved.

FY2020

FY2021

FY2022

FY20236

Orders Received (Non-Consolidated)

I 2023 fiscal year results

Orders received were ¥83.5 billion, up ¥7.8 billion year on year.
➤ High level of orders received due to contribution from large-scale construction orders

FY2022

YoYchangeFY2023(Billion yen)

75.6

Orders received

83.5

+7.8

Orders Received by Type of Construction
FY2022

Orders Received by Region
FY2022(Billion yen)

FY2023

FY2023(Billion yen)

71.7
31.9

65.9

33.5
25.6 26.7

5.2

Power distribution

8.2

6.3

Power
transmission andcivil engineering

8.3

6.9
3.4

Electrical andinstrumentation

Copyright© YONDENKO CORPORATION. All Rights Reserved.

Air conditioning
and pipes

ICT

1.1

5.8

1.4

Side business

Shikoku and others

7.8

Kanto area

3.8

3.9

Kansai area

7

Net Sales (Non-Consolidated)

I 2023 fiscal year results

Net sales were ¥77.2 billion, an increase of ¥2.8 billion year on year.
➤ Steady progress in large-scale construction projects due to stable procurement of materials and equipment and detailed process control

FY2022

YoYchangeFY2023(Billion yen)

74.3

Net sales

77.2

+2.8

Net Sales by Type of Construction
FY2022Net Sales by Region
FY2022(Billion yen)

FY202365.3

31.7 32.8

FY2023(Billion yen)

69.2

23.9 23.3

5.1

Power distribution

8.3

6.0

Power
transmission andcivil engineering

9.7
4.1

Electrical andinstrumentation

Copyright© YONDENKO CORPORATION. All Rights Reserved.

Air conditioning
and pipes

3.7
ICT

1.1

6.9

1.4

Side business

Shikoku and others

5.4

Kanto area

2.0

2.5

Kansai area

8

Net Sales of Construction Contracts Carried Forward (non-consolidated)

I 2023 fiscal year results

Net sales of construction contracts carried forward were 54.1 billion yen, up 6.3 billion yen from the end of the previous fiscal year.
➤ Secure high level of net sales of construction contracts carried forward

End of FY2022

YoYchangeEnd of FY2023(Billion yen)

47.8

Orders carried over

54.1

+6.3

Orders Carried Over by Type of construction
End of FY2022

Orders Carried Over by Region(Billion yen)

End of FY2023

End of FY2022

33.5
30.1

33.0

8.8
4.6

5.4

Power distribution

2.5(Billion yen)

35.4

9.5

7.4

12.0

4.7

2.9

Power transmission
and civil engineering

End of FY2023

5.2

6.6

1.5
Electrical andinstrumentation

Copyright© YONDENKO CORPORATION. All Rights Reserved.

Air conditioning and
pipes

ICT

Shikoku and others

Kanto area

Kansai area

9

Financial Position (Consolidated)

I 2023 fiscal year results.

YoY
ChangeEnd of March 2023

End of March 2024

Current assets

53.6

58.1

+4.5

Cash and deposits +3.3
Notes and accounts receivable and other +1.2

Non-current
assets

43.4

45.0

+1.5

Investment securities +2.9
Property, plant and equipment (1.0)

97.0

103.2

+6.1

Current liabilities

29.5

31.4

+1.9

Accounts payable – other +0.8
Income taxes payable +0.6

Non-current
liabilities

11.6

9.9

(1.6)

Long-term borrowings (1.6)

Total liabilities

41.1

41.4

+0.2

※ Net Assets

55.9

61.7

+5.8

Total liabilities and net
assets

97.0

103.2

+6.1

57.5%

59.8%

+2.3

(Billion yen)

Total assets

Equity ratio

Main change factors

Profit +4.5
Other comprehensive income +3.0
Dividends (1.6)※ Net assets include "Non-controlling interests."

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10

Statement of Cash Flows (Consolidated)

I 2023 fiscal year results

FY2022

FY2023

Details of Fiscal 2023

(Billion yen)

Cash flows from operating activities

3.8

6.0

Income before income taxes +6.9
Costs on construction contracts in progress (1.1)

Cash flows from investing activities

0.1

(0.5)

Purchase of property, plant and equipment (1.3)
Proceeds from sale of property, plant andequipment +0.5
Proceeds from sale of investment securities +0.3

Cash flow from financing activities

(3.1)

(3.1)

Proceeds from long-term borrowings +1.5
Repayments of long-term borrowings (3.0)
Dividends paid (1.6)

Net increase (decrease) in cash and cash
equivalents

0.8

2.3

Cash and cash equivalents at beginning of
period19.0

19.9

Cash and cash equivalents at end of period

19.9

22.3

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11

Our Construction Work Information

I 2023 fiscal year results

Major completed properties
Construction project

Construction type

RegionSharp Samegawamura Aono Solar Power Plant Electrical Construction

Electric power

Fukushima

Renewal of LED of the Marugame Race Nighter

Electric power

KagawaICTOsaka

JR Shikoku Takamatsu Station Building (TAKAMATSU ORNE) New construction, etc.

Air conditioning
and pipes

KagawaNew electric facilities construction at Tohoku University (Aobayama 3)

Electric power

MiyagiHanshin Expressway Communication Line Improvement and Other Construction

Hanshin Expressway Communication Line Improvement
and Other Construction(Construction: AI Denki Tsushin Co.,Ltd./our group)

Copyright© YONDENKO CORPORATION. All Rights Reserved.

JR Shikoku Takamatsu Station Building(TAKAMATSU ORNE)
New construction and other construction

New electric facilities construction at Tohoku University(Aobayama 3)

12AgendaⅠ

2023 fiscal year results

Ⅱ

Forecast for 2024 fiscal year

Ⅲ Capital profitability
and shareholder returns

Ⅳ P r o g r e s s o f M e d i u m - Te r mManagement Guidelines

Ⅴ

Copyright© YONDENKO CORPORATION. All Rights Reserved.

To p i c s

13Financial Results Forecast

II Forecast for 2024 fiscal year

■ Both consolidated and non-consolidated forecasts are for higher sales and lower profits. (Non-consolidated operating income increased)

Consolidated(Billion yen)

FY2023
ActualFY2024
Forecast

Non-consolidated

YoYchangeFrom thepreviousyear ％(Billion yen)

FY2023
ActualFY2024
Forecast

YoYchangeFrom thepreviousyear ％Net sales

92.1

100.0

+7.8

108.6%Net sales

77.2

86.0

+8.7

111.4%

Operatingprofit

6.4

6.0

(0.4)

93.1%

Operatingprofit

4.1

4.3

+0.1

104.5%

Ordinary
profit

7.0

6.5

(0.5)

92.7%

Ordinary
profit

4.9

4.9

(0.0)

98.2%

Profit attributableto owners ofparent

4.5

4.0

(0.5)

87.5%

Profit

3.5

3.1

(0.4)

88.5%

Basic earnings
per share

290.12 yen

254.07 yen(36. 05) yen

ー

Basic earnings
per share

222.39 yen

196.90 yen(25.49) yen

ー

Dividend
forecast*

140
yen/share140
yen/shareーー

Dividend
forecast*

140
yen/share140
yen/share

ー

ー

63.0%

71.1%

Payout ratio

48.3%

55.1%

Payout ratio※FY2023: interim dividend of 60 yen, year-end dividend of 80 yen, FY2024: interim dividend of 70 yen, year-end dividend of 70 yen

Copyright© YONDENKO CORPORATION. All Rights Reserved.

14

AgendaⅠ

2023 fiscal year results

Ⅱ

Forecast for 2024 fiscal year

Ⅲ Capital profitability
and shareholder returns

Ⅳ P r o g r e s s o f M e d i u m - Te r mManagement Guidelines

Ⅴ

Copyright© YONDENKO CORPORATION. All Rights Reserved.

To p i c s

15

Progress on Initiatives to Improve Capital Profitability

III Capital profitability and shareholder returns■In August 2023, we announced "Initiatives to Improve Capital Profitability" and have been implementing initiatives based on the following basic policies.
Basic Policy for Improving Capital Profitability
By investing in human resources and other forms of growth, we will achieve sustainable growth in profits and achieve an appropriate capital structure byenhancing shareholder returns and other measures. ⇒ We will promote initiatives focused on improving ROE.

Capital structure optimization

Expanded profits"FY 2022 (Consolidated Results)"
Operating profit: ¥4.97 billion
Ordinary profit: ¥5.56 billion
Profit※: ¥3.76 billion⇒"FY 2023 (Consolidated Results)"
Operating profit : ¥6.44 billion
Ordinary profit : ¥7.01 billion
Profit※: ¥4.57 billion※Profit attributable to owners of parent

Trends in Operating profit and ROE
Operating profit(Millions ofyen)Operating
ProfitTrends in Stock price and PBR

ROE

Stock price

9,000

10.0 (%)

ROE target
8.0%

8,000

2023.8.31 “Changing the Shareholder Return Policy” and “Adjusting the Dividend Forecasts(Dividend Increase)"
・Consolidated dividend payout ratio: 30% or more ⇒ Raised to 40% or more・Annual dividend: ¥100 ⇒ ¥120 (up ¥30 year on year)
2024.1.31 "Revision of Dividend Forecast (Dividend Increase)"
・Annual dividend: ¥120 ⇒ ¥140 (up ¥50 year on year)

ROE 7.8%

9.0

ROE

Stock price

1.40

7.0

6,000

(times)
PBR

4,000

8.0

7,000

PBR

(Yen)

1.20

PBR 1.0 times
3,000

1.00

6.0
5,000

0.80

5.0
4,000

2,000
4.0

3,000

0.60

3.0

2,000

2.0

1,000

0.40
1,000
0.20

1.0

0

0.0
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY20230

0.00※FY2016

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023※Represents information as of the end of the fiscal year.

■In the future, we will consider effective methods and scale of share repurchases, keeping in mind that the liquidity of shares will not be reduced as much as possible.
■From the viewpoint of improving stock liquidity and stock price sensitivity, we will also consider lowering investment unit through stock splits at a timely time.

16

Shareholder Returns

III Capital profitability and shareholder returns

Shareholder Return Policy (from Medium-Term Management Plan 2025)■ For our shareholders, we aim to achieve a consolidated dividend payout ratio of 40% or more.
We will provide returns that are sustainable and in line with business performance.
■ Even if profits decline temporarily due to future economic trends and other factors, we will strive to maintain dividend levels as much as possible.

Trends in dividends and dividend payout ratio

200

Year-end dividends

interim dividends

Dividend payout ratio

55.1%
48.3%

150

37.4%
29.1%

25.8%

26.2%

37.6%

140

90

80

(Yen)

21.5%

90

0.5

140
0.4

27.4%

100

0.6

70

0.3

0.2

50

0

50

32.5

37.5

40

40

20
12.5

22.5

22.5

20

15

17.5

20

20

FY2016FY2017FY2018FY2019FY2020

55

45

35

45

0.1

30

FY2021

FY202260

FY202370

0-0.1
FY2024 Forecast※ The Company conducted a 1-for-5 reverse stock split of common stock on October 1, 2017, and conducted a 2-for-1 stock split of common stock on October 1, 2021.
As such, dividends per share represent the amount converted into the current number of shares.
Copyright© YONDENKO CORPORATION. All Rights Reserved.

17

AgendaⅠ

2023 fiscal year results

Ⅱ

Forecast for 2024 fiscal year

Ⅲ Capital profitability
and shareholder returns

Ⅳ P r o g r e s s o f M e d i u m - Te r mManagement Guidelines

Ⅴ

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18Medium-Term Management Guidelines 2025

IV Progress of Medium-Term Management Guidelines

Common Targets for FY2025"Challenge to the Next Growth Stage"
Consolidated Targets for Fiscal 2025

Priority Issues to be Addressed① Strengthening Multifaceted Profitability as a General Facility Construction Company

Net sales

100 billion yen

Operatingprofit6 billion yen

ROE

8.0%

② Expansion of wide-area business development③ Maintain business foundation to ensure the reliability of lifelines④ Demonstrating the collective strengths of the Yondenko Group⑤ Commitment to Ensure Sustainability of the Environment and Society

Business Trends(Billion yen)

Net sales

Operating profit

ROE

0.11

7.5%
5.2%

5.3%

2.9

0.09
0.07

92.6

89.6
5.0

2.6

8.0%

7.8%
6.8%

4.9%
82.7

80.4

77.0

7.2%

92.1

89.1
5.4

100.0

0.05

100.0

0.03

6.4
4.9

6.0

6.0

0.01
-0.01

3.4

-0.03
-0.05

0.0
FY2017FY2018FY2019Copyright© YONDENKO CORPORATION. All Rights Reserved.

FY2020

FY2021

FY2022

FY2023

FY2024FY2025

Forecast

Target19

Consolidated target

IV Progress of Medium-Term Management Guidelines(Billion yen)

Net Sales statistics by Type of Construction (Consolidated)

FY2021
Actual92.6 billion yen

30.1

6.4

26.1

14.2

31.7

5.1

25.8

14.1

10.6

4.9

FY2022
Actual89.1 billion yen

6.9

5.2

FY2023
Actual92.1 billion yen

32.8

6.0

33.6

5.4

24.9

15.6

7.2

5.3

FY2024
Forecast
100 billion yen

31.5

15.0

9.6

4.9

9.0

5.0

FY2025
Target
100 billion yen

30.0Power distribution
Electrical and instrumentation
ICT
Copyright© YONDENKO CORPORATION. All Rights Reserved.

5.0

29.0

22.0

Power transmission and civil engineering
Air conditioning and pipes
Other
20

Consolidated target

IV Progress of Medium-Term Management Guidelines(Billion yen)

Net Sales statistics by Region (consolidated)

FY2021
76.0

Actual92.6 billion yen

8.5

8.0

FY2022
Actual89.1 billion yen

71.8

10.7

6.4

FY2023
Actual92.1 billion yen

75.2

9.2

7.6

FY2024
Forecast
100 billion yen

76.0

14.0

10.0

76.0

12.0

12.0

FY2025
Target
100 billion yen

Shikoku and others
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Kanto area

Kansai area
21

Investment in human resources

IV Progress of Medium-Term Management Guidelines

Trends in Personnel by Fiscal 2025
(People)4/2021
Actual4/2022
Actual4/2023
Actual4/2024
Actual4/2025
Planning

Electrical and istrumentation

334

356

377

391

420

Air conditioning and pipes

223

242

259

263

280

ICT and system control

116

119

117

116

130

1,280

1,292

1,299

1,297

1,330

157

160

154

159

160

Yondenko Non-Consolidated Total

2,110

2,169

2,206

2,226

2,320

Consolidated Total

2,531

2,645

2,684

2,715

Approx. 2,800

Generalfacilities
division

Power facilities division
Other Divisions

Outline of main initiatives
Employee engagement survey

An employee engagement survey was conducted in August 2023.

Establishment of Human
Resources Strategy Council

In April 2024, the Human Resources Strategy Council was established as a subcommittee to deliberate on key
issues related to human resources at ESG Promotion Council with the aim of developing measures to strengthen
human capital in order to achieve sustainable growth of our business.

Implemented base pay increase

In April 2024, in addition to regular salary increases, we implemented a base increase of 14,500 per employee.
The starting salary will also be increased uniformly by 14,500 yen. This resulted in a wage increase of 6.84%(average for union members), including regular salary increases.

Review of education system

In April 2024, in addition to reviewing the existing training system, the educational system was newly revised,focusing on education for executive candidates, managers, young people, and others. The company also supported
self-development through the introduction of e-learning and other means, and worked independently andautonomously to improve skills, and built a system that would provide reskilling and a variety of opportunities tolearn.

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22

AgendaⅠ

2023 fiscal year results

Ⅱ

Forecast for 2024 fiscal year

Ⅲ Capital profitability
and shareholder returns

Ⅳ P r o g r e s s o f M e d i u m - Te r mManagement Guidelines

Ⅴ

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23V Topics

To w a r d a s u s t a i n a b l e s o c i e t yOff-site PPA using solar power
In order to realize a carbon neutral society, construction of the Futatsuike Shitaike Solar Power Plant, which is the Group's first offsite PPA business, has begun.
This project involves Yonko Solar Co., Ltd., a wholly owned subsidiary of the Company, becoming a power generator, installing
solar power generation facilities in ponds and other places in Miki-cho, Kagawa Prefecture, and supplying the renewable energy power
generated to the Tokushima Factory of Shikoku Chemicals Corporation through Shikoku Electric Power Company, Incorporated
together with environmental value (non-fossil certificates).
We plan to begin supplying renewable electricity in February 2025, and the total power generated will 2,035kW reduce CO2 byapproximately 1,503 tons/year in terms of environmental value.

※An off-site PPA is a contract method whereby power producers, who are the owners of renewable energy sources and users(purchasers of electricity), enter into agreements for the purchase and sale of renewable energy sources at pre-agreed prices and for apredetermined period, and supply electricity generated by renewable energy sources installed at off-site (outside of demand areas) tousers via the power system.

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24

V Topics

To w a r d a s u s t a i n a b l e s o c i e t y

Formulation of human rights policies
The Yondenko Group understood its corporate social responsibility to respect human rights and established the Yondenko Group
Human Rights Policy in December 2023. In accordance with this policy, we will endeavor to respect the human rights of all
stakeholders involved in our business activities, contribute to the sustainable development of society, and strive to increase corporate
value.

Certified as an Excellent Health and Productivity Management Corporation 2024
We were certified as a "2024 Certified Health and Productivity Management Organization(Large-Scale Corporate Division)."In 2022, we declared our health management policy and aimed to build a "lifelong working
society."We are promoting various measures for health management.
In the future, we will continue to work together with the health insurance union, industrial
physicians, and the Safety and Health Committee,We will further work to maintain andpromote the health of our employees.

Donating tomatoes from our farms to food banks
We donated tomatoes grown at our farm to the NPO Food Bank Tokushima and Food Bank
Kagawa, which distributed them to support facilities and children's cafeterias in theprefecture.

Tomato donated to food banks
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25

V Topics

To w a r d a s t a b l e s u p p l y o f e l e c t r i c i t y

Dispatch of support for Hokuriku Electric Power Transmission andDistribution following the Noto Peninsula Earthquake
For the 16-day period from January 16 to 31, 2024, we dispatched 76 personnel,
including logistics support, to recover from the disaster following the Noto Peninsula
Earthquake, mainly in Suzu City, Ishikawa Prefecture. Although it was a large-scale
damage, we worked hard to restore the system in cooperation with other companies that
supported it nationwide, and worked to eliminate power outages at an early stage.
We will continue to do our utmost to fulfill our mission of protecting lifelines.
The 14 companies of the Yondenko Group have donated a total of 5 million yen to theJapanese Red Cross Society to help those affected by the disaster and to help rebuild theaffected areas.

Promotion of DX

Started sales of software CRAFT DX V2 to support
the construction of facilities
Sales of the new version ``V2'' of the construction of facilities
support software ``CRAFT DX (cost estimation, estimation, CAD
software)'' series began in February 2024.
We will continue to develop construction of facilities support
software equipped with advanced functions to further improve work
efficiency in the construction industry.
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26

V Topics

Cultivation and technology succession of human assets

Held technology presentations
To respond to the adoption of the latest technologies and methods and thediversification of customer requirements, we hold technology presentation meetings withthe aim of sharing technical information within the company. In fiscal 2023, meetings
were held at the head office in December, where participants actively exchanged opinions
and held question-and-answer sessions.

Funding for Education and Employment Support Funds
In support of the objectives of the program* aimed at supporting young people's
enrollment in schools, promoting employment within the prefecture, and creating
employment, the fund provided 3 million yen to the funds of Shikoku prefectures.
We started this initiative in fiscal 2021, and this is our third such initiative. We willcontinue to contribute to the sustainable development of the Shikoku region.
(※This program provides support for part of the scholarship repayment if a person receives a scholarship and goes on
to university, etc. and graduates and works for a certain period of time at a company within the prefecture. )Technology presentations

Promoting Understanding of the Electrical Construction Industry
We provide practical training in electrical construction for students of industrial highschools in Shikoku. In fiscal 2023, a total of 8 schools and 196 students participated inthese programs. At the request of a junior high school in Takamatsu City, we also held a"Delivery Class".
Practical training
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27

Contact Information
YONDENKO CORPORATION Planning Department
E-mail:hnkikaku@mail.yondenko.co.jp

All forward-looking statements, including the data and financial forecasts contained in these materials, are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ from these
forecasts for a number of reasons.

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