表紙

Creating a Safe, Comfortable and Sustainable Society for the Future

Kawada Technologies, Inc. (Stock Code: 3443)

Financial Summary for
FY202403(April 1, 2023 through March 31, 2024)

Note: This document is an English translation from the original Japanese-language document.
All financial information is prepared in accordance with Japanese GAAP.

Kawada Group celebrated the 100th-year anniversary since its foundation in May 2022.
We have and will always contribute to the society through world-class technologies and quality.

Table of contents

1 / 22

1. Results for FY202403
2. Forecasts for FY202503
3. Progress and Partial Revisions on the Target Numbersof the 3rd Medium-Term Management Plan etc.

2 / 22

1. Results for FY202403

FY202403 Highlights

3 / 22

Sales increased as large projects and so on progressed steadily through the term. Each profit boosted ashighly-profitable Solution segment continued growing, in addition to receiving contract alterations
especially in Steel Structure and Civil Engineering segment.

（Million Yen）

Latest Forecast
for FY202403 *1

FY202303

FY202403

YoY

Result% toSales

Result% toSales

Result% toSales

vs FY202303
Resultvs Latest
Forecast

Sales Revenues

118,086

100.0%

128,000

100.0%

129,127100.0%

11,041 (9.3%)

1,127 (0.9%)

Gross Profit

15,626

13.2%

-

-

20,09815.6%

4,472 (28.6%)-

Operating Profit

5,025

4.3%

7,800

6.1%

8,734

6.8%

3,709 (73.8%)

934 (12.0%)

Ordinary Profit

6,298

5.3%

9,500

7.4%

10,5388.2%

4,240 (67.3%)

1,038 (10.9%)

Net Income

4,231

3.6%

6,500

5.1%

7,541

5.8%

3,310 (78.2%)

1,041 (16.0%)

239.94Yen-

378.04Yen-

434.06Yen-

194.12Yen

56.02Yen

Depreciation

2,874

-

-

-

2,903

-

29

-

Change in Tangible andIntangible Assets

4,087

-

-

-

3,892

-

△195

-

Attributable to owners of KAWADA

Earnings Per Share *2*1 Published on March 12, 2024.
*2 The company conducted stock split at a ratio of 3-for-1 on April 1, 2024.
EPS is calculated on an assumption that said split had been made at the beginning of FY202303.

FY202403 Progress of the Current Medium-Term Management Plan 4 / 22
FY202403 is the first FY of the current Medium-term Management Plan (the 3rd, for 3 years through FY202403 to
FY202603). Managed to make considerable progress with more profits than expected, we made partial upwardrevisions on some numerical targets.
*Please refer to page 18 for the revised targets

FY202403（Million Yen）

YoY

FY202403(1st FYof the Plan)

Sales Revenues

118,086

129,127

11,041(9.3%)

Operating Profit

5,025

8,734

3,709
(73.8%)Net Income(1)

4,231

7,541

3,310
(78.2%)

2,852

5,818

2,966
(104.0%)

5.8%

9.6%

3.8pts

7.3%

13.8%

6.5ptsNet Income(2)(excluding the effect ofequity-method application)

ROE(1)
ROE(2)(excluding the effect ofequity-method application)

The 3rd Medium-Term Plan
Original Targets
391,000 or more

(3-year cumulative)

Progress
33.0%

18,600 or more

46.8%

15,600 or more

48.1%

More than 12,100

47.9%(3-year cumulative)(3-year cumulative)(3-year cumulative)

8.0% or more
(at the 3rd FY)

11.0% or more
（at the 3rd FY)-

Targetnumbers are
partially
revised forconsiderable
progress has
been madeFinancial, Cashflows and Orders Status

5 / 22

Net Assets increased for profits piling up, and Equity Ratio has reached 50% mark. CF from Operating Activities is back inpositive with account receivable collection, to repay short-term borrowings financing working capital temporarily.
As to Orders, From Prior FY, Newly-Received and To Sales increased. On Hand is still in high position.

◎Financial and Cashflow Status（Million Yen）

YoY

FY202303

FY202403

Total Assets

162,158

160,216△1,941(△1.2%)Net Assets

76,697

82,341

5,644(7.4%)

Equity Ratio

46.6%

51.1%

4.5pts4,288.11yen

4,753.28yen

465.17yen

CF from Operating
Activities△9,673

13,32022,994

CF from Investing
Activities△1,504△2,553△1,048

CF from Financing
Activities

12,213△10,337△22,845

Net Assets Per
Share (*)

◎Orders Status（Million Yen）

FY202303

FY202403

YoY

From
Prior FY

146,334

154,364

8,030(5.5%)

NewlyReceived

127,657

131,241

3,584(2.8%)To Sales119,626

130,876

11,249(9.4%)On Hand154,364

154,730365(0.2%)*Internal Sales between business segments are NOT adjusted.

* Calculated on an assumption that the stock split had been made at the beginning of the FY202303

Overviews of Business Segments
Steel
Construction

Civil
Engineering

Design,fabrication andconstruction ofsteel bridges,
steel structures,etc. Trade ofsteel products

Planning,
fabrication andconstruction of
PC bridges,“Prebeam”
bridges andstructures.
Maintenance andrepair of bridges

Tokyo Gate Bridge (Tokyo)

Architecture

Solution

Design andconstruction of
conventionalbuildings andpre-engineered
metal building
system buildings(1)Development andsales of ASP service.
Analysis, design anddrawing of bridges.
(2)Development, design,
sales and consultation
on various machines,
computer systems.
(3)Manufactures andsales of next-generationindustrial robots

Polatech West Japan Shiga Factory (Shiga Pref.)6 / 22

Fudo Ohashi Bridge（Gunma Pref.）Architectural 3D-CAD

V-nasClair

NEXTAGEFY202403 Business Segments Overview

7 / 22

Steel Construction(SC) and Civil Engineering(CE) attained large contract alterations, Architecture(AR) recovered
profitability and Solution(SL) continued growing.

SC

Steel Bridge：large new-construction projects progressed, receiving more contract alterations than expected.
Building Structure：Received orders of redevelopment in metropolitan areas, semiconductor-related facilities, but sales
did not reach the previous FY level.
→Sales 61,519 million yen (+5,448 million yen, +9.7%) Operating Profit 4,648 million yen (+551 million yen +13.5%)

CE

Received orders steadily in New-construction and Maintenance business, but sluggish in Renewal business. NewlyReceived Orders substantially decreased. Projects on hand progressed and Sales slightly increased. Profit increased forreceiving contract alterations for large projects in Renewal and Maintenance business.
→Sales 35,432 million yen (+396 million yen, +1.1%) Operating Profit 2,891 million yen (+824 million yen, +39.9%)AR

Orders for both multi-floored and low-rise distribution warehouses were firm. Steady progress of projects on handcontributed Sales to increase. Profitability recovered and operating profit improved YoY significantly.
→Sales 17,601 million yen (+3,442 million yen, +24.3%) Operating Profit 1,574 million yen (+1,997 million yen)SL

Both 3D-CAD software and information-sharing cloud service showed strong performance.
Robots increased sales volume.
→Sales 7,550 million yen (+1,178 million yen, +18.5%) Operating Profit 2,919 million yen (+871 million yen, +42.6%)*Internal Sales between business segments are NOT adjusted.

FY202403 P/L Summary by Segments

8 / 22

Sales and Operating Profit increased YoY in all segments. Solution maintains high profitability.
SC: Steel Construction CE: Civil Engineering AR: Architecture SO: Solution

FY202303
Sales

Operating
ProfitFY202403
OP/Sales

Sales

Operating
ProfitYoY
OP/Sales

Sales（Million Yen）

Operating Profit

OP/Sales■ S

C56,071

4,097

7.3%

61,519

4,648

7.6%

5,448 (9.7%)

551 (13.5%)

0.3pts■ C

E35,035

2,067

5.9%

35,432

2,891

8.2%

396 (1.1%)

824 (39.9%)

2.3pts■ A

R

14,158△423-

17,601

1,574

8.9%

3,442 (24.3%)

1,997 ( - )

-

■ S

L

6,371

2,047

32.1%

7,550

2,919

38.7%

1,178 (18.5%)

871 (42.6%)

6.6ptsSL 6,371

Sales

AR 14,158

CE 35,035

SL 7,550

Operating Profit

AR 17,601
SC 56,071

CE 35,432

2023/3*Internal Sales between business segments are NOT adjusted.

SL 2,047
AR △423SC 61,519

2024/3

SL 2,919
SC 4,097

CE 2,067

2023/3

SC 4,648
AR 1,574
CE 2,891

2024/3

FY202403 Order Status by Segments

9 / 22

Orders were sluggish in Civil Engineering. The market is potentially substantial but is expected to decline
in the short-term. In other segments orders increased, especially in Architecture significantly after somestagnant years, leading to Orders On Hand is record high in total.
SC: Steel Construction CE: Civil Engineering AR: Architecture SO: Solution（Million Yen）

From Previous FY

Newly-Received

To SalesOn Hand(To Next FY)

FY
202303FY
202403

YoY

FY
202303FY
202403

YoY

FY
202303FY
202403

YoY

FY
202303FY
202403

YoY

SC77,86984,9907,120(9.1%)

63,19264,091898(1.4%)

56,071

61,5195,448(9.7%)

84,99087,561

2,571(3.0%)

CE

47,256

49,1001,843(3.9%)

36,87931,51635,03535,432396(1.1%)

49,10045,184△3,915(△8.0%)

AR

17,965

16,526

12,71918,9366,217(48.9%)

14,15817,601

3,442(24.3%)

16,526

17,862

1,335(8.1%)

SL

2,734

3,355

6,992

7,692

699
(10.0%)

6,371

7,550

1,178
(18.5%)

3,355

3,498

142
(4.2%)△1,439(△8.0%)

621(22.7%)*Internal Sales between business segments are NOT adjusted.

△5,362(△14.5%)

10 / 22

2. Forecasts for FY202503

FY202503 Forecasts

11 / 22

Sales are expected to be at the same level, but each profits to decrease for the moment.
For there are expectedly few completions of large projects within the FY in Steel Structure segment,
which earns 30-40% of the total profit, and attaining contract alterations would be in the next FY
onwards.
FY202303

FY202403

FY202503(Forecast)

YoY

FY23 to FY24

FY24 to FY25

△2,934(△33.6%)

Sales Revenues

118,086

129,127

128,000

11,041(9.3%)

Operating Profit

5,025

8,734

5,800

3,709
(73.8%)

Ordinary Profit

6,298

10,538

6,000

4,240
(67.3%)

4,231

7,541

4,100

3,310
(78.2%)

239.94yen

434.06yen

238.02yen

194.12yen

Net Income

Attributable to owners of
KAWADA

Earnings Per Share *（Million Yen）

* EPS is calculated on an assumption that the stock split had been made at the beginning of the FY202303△1,127(△0.9%)△4,538(△43.1%)△3,411(△45.6%)△196.04yen

FY202503 Forecast (1)Steel Construction Segment

12 / 22

Steel Bridge： The new-construction shows declining trend in the medium-to-long term, but the market for renewal andmaintenance work is firm for a while.
Building Structure： The market for super high-rise steel structure is strong due to redevelopments in metropolitan areas, Osaka IRrelated and semiconductor-related facilities in Kyusyu region, etc. Operational rate of the plants is high due to
production for large projects coming into full swing. It is even more crucial to manage costs and schedule properlyin the background of high prices and the workstyle reform.
（Million Yen）
70,000FY
202303FY
20240340,000

NewlyReceived
Orders63,19230,000Sales

60,00050,00020,000

7.3%

7.6%

5.8%

10,0000

FY202303

FY202403

FY202503(Forecast)*Internal Sales between business segments are NOT adjusted.

FY
202503

YoY(Forecast)

FY23 to 24

FY24 to 25

64,09158,000898(1.4%)△6,091

56,071

61,51960,0005,448(9.7%)(△2.5%)

Operating
Profit

4,097

4,648

3,500

551

△1,148

OP/Sales

7.3%

7.6%

5.8%

(△9.5%)△1,519(13.5%)(△24.7%)0.3pts

△1.8pts

FY202503 Forecast (2)Civil Engineering Segment

13 / 22

Outstanding market shift is underway from new-construction to renewal and maintenance. In FY202403 order placement
decreased in renewal market for the moment, but the market is still substantial potentially. Competitive environment becomeseven tougher with some indications of industry restructuring. New-construction and Maintenance business covered thedecreased order in Renewal business. Received many MLIT(*2) orders especially in New-construction business.
* MLIT: Ministry of Land, Infrastructure, Transportation and Tourism（Million Yen）
70,000FY
202503FY
202303FY
20240336,87931,51634,00040,000

NewlyReceived
Orders

30,000Sales

35,03535,432

Operating
Profit2,067

OP/Sales

5.9%

60,00050,00020,000

5.9%

8.2%
5.0%

10,0000

FY202303

FY202403

FY202503(Forecast)*Internal Sales between business segments are NOT adjusted.

(Forecast)

YoY
FY23 to 24

FY24 to 25△5,3622,484(△14.5%)(7.9%)

36,000396(1.1%)

568

2,891

1,800

824
(39.9%)(△37.7%)

8.2%

5.0%

2.3pts

△3.2pts(1.6%)△1,091

FY202503 Forecast (3)Architecture Segment

14 / 22

Demands for distribution warehouses are still high in the context of the 2024 overtime regulation issue, etc.
Besides our patented pre-manufactured low-rise metal buildings, we have and will pursue large multi-floored projects
proactively. Profit in FY202403 rose compared to the previous FY, but uncertain factors such as high construction costs
suppress the forecast for FY202503.
（Million Yen）
70,000FY
202303FY
202403

12,71940,000

NewlyReceived
Orders

30,000Sales

60,00050,0008.9%

20,00010,0000

4.4%
FY202303

FY202403

FY202503(Forecast)*Internal Sales between business segments are NOT adjusted.

FY
202503

YoY(Forecast)

FY23 to 24

FY24 to 25

18,93618,0006,217(+48.9%)△936

14,15817,601

17,0003,442(24.3%)

Operating
Profit

△423

1,574

750

1,997
(-)

(△52.4%)

OP/Sales

-

8.9%

4.4%

-

△4.5pts(△4.9%)△601(△3.4%)△824

FY202503 Forecast (4)Solution Segment

15 / 22

Software-Related： 3D-CAD software and information-sharing cloud service showed strong performance in the background of
the construction DX movement. Furthermore, Consulting service starts growing.
Robot-Related： Market is potentially considerable. It has been expanding as production facilities returning to Japan andlabor force declining. Development competition of humanoid robot intensifies worldwide. The number ofunits sold did not reach the target but increased YoY. Intend to increase sales with new sales agencies.

（Million Yen）

70,000FY
202303FY
202403

6,922

40,000

NewlyReceived
Orders

30,000Sales

60,000

38.7%

36.7%

20,00010,0000

FY202303

FY202403

FY202503(Forecast)*Internal Sales between business segments are NOT adjusted.

YoY(Forecast)

FY23 to 24

FY24 to 25

7,692

7,700

699
(10.0%)

8

6,371

7,550

7,500

1,178
(18.5%)

Operating
Profit

2,047

2,919

2,750

871
(42.6%)(△5.8%)

OP/Sales

32.1%

38.7%

36.7%

6.6pts

△2.0pts

32.1%

50,000FY
202503(+0.1%)△50(△0.7%)△169

16 / 22

3. Progress and Partial Revisions on the Target Numbersof the 3rd Medium-Term Management Plan etc.

Outline of the 3rd Medium-Term Management Plan (through FY202403 to FY202603) 17 / 22
PurposeBusiness
Challenge

To realize KAWADA VISION, we aim for both sustainable growth of our group and realization of thesustainable society. Business environments changing substantially, we face sincerely with theBusiness Challenges, tackling them quickly and flexibly to become a resilient company.
Promote management to(1)increase ROE, considering
capital costs, and (2)enhance
management base

Increase profitability in the core businesses, expand(1) Increasebusiness fields in other growing businesses, and shift to
ROE
capital-efficient management(2) EnhanceManagement
Base

Increase productivity through securing talents, talent trainings
and DX, building IP landscape, promoting sustainable
management for the sustainable society.

Theme : Transforming to a resilient company to realize KAWADA VISION

Principles

Sustainable Growth ofCore Businesses

Participate in big projects and the expanding bridge renewal and maintenance market withtechnologies we have attained for over 100years.

Enhance and Create
Growing Businesses

Allocate management resources into promising business fields and generate new business
opportunities with KAWADA-original value creation.

Promoting

Sustainability Management

Shifting to CapitalEfficient Management

Maximize our long-term corporate value, solving social issues with sincere and responsible
corporate management under our philosophy of “Creation of a Safe, Comfortable and Sustainable
Society”,
Pushing forward ROE-focused management in the spirit of our ”Eight-Way Satisfaction”.

Partial Upward Revisions of Targets（Million Yen）

18 / 22

The 1st Plan
（Result）

The 2nd Plan
（Result）

The 3rd Plan
(Original)

The 3rd Plan

Sales Revenues

352,600

337,300

391,000

391,000

Operating Profit

17,20017,00018,60022,300Net Income (1)16,50015,70015,60018,300Net Income (2)10,90010,90012,10014,600

11.3%

5.8%

8.0%

8.0%

（3-year Cumulative）（3-year Cumulative）（3-year Cumulative）(3-year cumulative, excluding the effectof equity-method application)

ROE (1)（At the 3rd FY）

ROE (2)(At the 3rd FY, excluding the effectof equity-method application)

Shareholders
Return（Average for 3 years）

or moreor moreor moreor moreor more

15.8%

7.3%

11.0%

8.5%

16.0%

30.0%

or moretarget(Revised)or moreor moreor moreor moreor more

11.0%
30.0%

or moretargetProgress Forecast

19 / 22

Targets are partially revised upward due to the result of FY2024 and the expectation for FY2025 andFY2026. Sales and ROE(1) are estimated not to reach the target at this moment, but we aim for it
through receiving further orders and contract alterations, etc.
（Million Yen）
Target(Original)

Sales

Target(Revised)

ChangeProgress Forecast

FY202403(1st Year)FY202503(2nd Year)FY202603(3rd Year)

ResultvsOriginal

vs
Revised

ForecastvsOriginal

vs
Revised

ForecastvsOriginal

vs
Revised

3,910

3,910

-

1,291

33.0%

33.0%

1,280

65.8%

65.8%

1,320

99.5%

99.5%

Operating
Profit

186

223

37

87

46.8%

39.0%

58

78.0%

65.0%

78

119.9%

100.0%Net
Income (1)

156

183

27

75

48.1%

41.0%

41

74.4%

63.4%

67

117.3%

100.0%Net
Income (2)

121

146

25

58

47.9%

39.7%

34

76.0%

63.0%

54

120.7%

100.0%ROE (1)

8.0%

8.0%

-

9.6%

-

-

5.0%

-

-

7.8%

-

-

ROE (2)

11.0%

11.0%

-

13.8%

-

-

7.7%

-

-

11.2%

-

-

Payout
Ratio

30.0%

30.0%

-

30.2%

-

-

37.8%

-

-

30.1%

-

-

(19.9%)(17.3%)*Target for Sales, Operating Profit and Net Income are 3-year cumulative. Target for ROE is at FY202603 and Payout Ratio is average for the term.
“(1)” is for the whole company, “(2)” excludes the effect of equity-method application.

Setting the Lower limit for Yearly Dividend and Dividend Forecast

20 / 22

For the term of the 3rd Plan(FY202403-FY202603), we aim for “Payout Ratio of target 30% and dividend totaling to4,600million yen” with stable dividends and agile share repurchases. In the fist FY we paid out about 2,250 million yen as
dividend, repurchased for roughly 1,000 million yen. We aim for increasing the total amount by piling up profits.
In addition, we changed the dividend policy and set the lower limit of 90 yen on yearly dividend per share for the remaining
period of the 3rd Plan.
The 3rd Plan’s Remaining Term

FY202303

FY202403

FY202503(forecast)

4,231million

7,541million

4,100million

6,700million

Earnings Per
Share *1

239.94yen

434.06yen

238.02yen

388.95yen

Dividend Per
Share *1 *2

70yen

131yen72yen→90yen

117yenPayout Ratio *3

29.2%

30.2%

37.8%

30.1%

Total Dividend

1,234million

2,256million

Net Income

yen

yen

yen

yen

yen

(for the lower limit)

FY202603（forecast）
yen

Setting Lower Limit forYearly Dividend（valid for the plan’s remaining term）

Dividend policy changed to
Set the lower limit of 90 yen ona yearly dividend per share forthe remaining period of the 3rd
Plan (FY202403-FY202603)

1,550million yen 2,015million yen*4*4*1 On an assumption of the stock-splint taking effect at the start of the presented period, and the issued shares in FY202503 onward are that of
FY202403 (excluding treasury stock)*2 For FY202503 onward, the higher of the @NI forecast multiplied by payout ratio of 30% or the lower limit of 90 yen*3 Calculated as DPS/EPS *4 Calculated as EPS multiplied by the total number of issued shares at the end of FY202403(excluding treasury shares)

Progress of the 3rd Plan’s Capital Management Policy, etc.
◎Progress of the Plan’s

The 3rd Plan

Result of the First FY

Increase
Profit level

Creating CFO of 20,000 million yen
over the term
*excluding working capital fluctuation

10,800 million yen

Investment
for Growth

Enhance the base businesses, invest in
growing businesses, capital investments of
10,000 million yen

Invested 3,800 million yen

Engagementwith Stakeholders

Shareholders Meeting,Letters for Shareholders,
Earnings presentations、1-on-1 MTGs

1 Shareholders Meeting, 2 Letters for shareholders,
2 Earnings presentations, and84 times of 1-on-1 MTGs besides 3 small group meetings

Capital Management Policy*differs from the number in C/S for excluding
working capital fluctuation◎Other Efforts

Stock Split (1:3)

Split 1 common stock to 3, effective as of April 1, 2024with March 31, 2024 as reference date

Kawada Technosystem
Made Wholly-Owned
Subsidiary

Made Kawada Technosystem Co., Ltd. our wholly-owned subsidiary as of March 29, 2024

21 / 22

(Appendix) Financial Summary
FY202003

FY202103

22 / 22
FY202203(Million Yen)FY202303

FY202403

Sales Revenues

127,048

115,545

103,760

118,086

129,127

Operating Profit

6,759

5,565

6,412

5,025

8,734

Ordinary Profit

8,543

8,048

7,689

6,298

10,538Net Income attributable toowners of Kawada

6,449

6,340

5,176

4,231

7,541

Earnings Per Share (yen) *366.23359.10292.54239.94434.06

EPS/Equity (%)

11.3

10.1

7.6

5.8

9.6

Ordinary Profit / Total Asset (%)

6.4

5.6

5.5

4.3

6.5

Operating Profit / Sales (%)

5.3

4.8

6.2

4.3

6.8

Total Asset

139,093

147,408

133,337

162,158

160,216

Net Asset

60,63066,96471,921

76,697

82,341

43.0

44.8

53.2

46.6

51.1

Net Asset per share (yen) *3,395.07

3,740.50

4,009.61

4,288.11

4,753.28

Cashflow from Operating activities△4,126△2,547

20,391△9,673

13,320Cashflows from Investing Activities△2,764△4,183△1,948△1,504△2,553

Cashflows from Financing Activities

5,535

8,220

△15,811

12,213△10,337

Yearly Dividend per share (yen) *

26.67

26.67

70

131

Equity Ratio (%)

33.33(including memorial
dividend of 6.67)* On an assumption of the stock-splint taking effect at the start of the presented period

The information in this document is based on assumption in light of information available as of thedate of announcement of this material, and the factors of uncertainty that may possibly impact the
future results of operations. These forward-looking statements involve risks, uncertainties and otherfactors that may cause actual results and achievements to differ from those anticipated in thesestatements.

- Contact ir.kti@kawada.jp