Creating a safe, comfortable and sustainable society for the future

Kawada Technologies, Inc. (Stock Code: 3443)

Financial Summary for
FY202403-2Q(April 1, 2023 through September 30, 2023)

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.
2023年5月19日

Table of contents

1. Results for FY202403-2Q
2. Forecasts for FY202403 *Revised on Nov 10, 2023-1-

Results for FY202403-2Q-2-FY202403-2Q Highlights(Million Yen)

Sales Revenues
52,781 50,764

2021/92022/964,325

Operating Profit *1
4,414

Net Income *1
3,341
2,594

3,096

2023/9

0.6%

8.4%

320

4.8%

2021/92022/92023/9

Newly-Received Orders *2

Orders Carried-Forward*2

52,381 55,905 53,215

150,734 142,541

130,904

ROE

4.9%

1.1%

6.3%

579

2021/92022/90.8%

4.0%2023/9CFO

3.4%

2021/92022/92023/9Equity Ratio

15,0747,118

50.5% 52.0%

48.3%

2021/92023/9△ 195
2021/92022/92023/92021/9*1 Line graphs designate ratio to Sales Revenues

2023/11/27

2022/92023/92021/92022/92023/92022/9*2 Internal Sales between business segments are NOT adjusted.
-3-

P/L Summary
Sales increased for projects, mainly large ones, progressed steadily. Each profits also
increased significantly YoY for awarding contract alterations through 1Q-2Q（Million Yen）

Result ofYoY

FY202303-2Q

FY202403-2Q

Sales Revenues

50,76464,325

26.7%

Gross Profit5,583

8,507

52.4%

320

3,096

866.6%

1,109

3,695

233.1%

579

2,594

347.3%

Operating Profit

Ordinary Profit
Shares of Profit ofEntities Accounted forUsing Equity Method

Net income

Attributable to owners ofKawada
2023/11/27

Result of842

743△11.8%-4-Sales Revenues and Operating Profit (by segment)
Good progress of large projects increased sales in Architecture. Profitability
recovered in Architecture and in Civil Engineering. Solution continues sound growth(Million Yen)

Sales Revenues
202303-2Q

202403-2Q

SteelStructure

24,49927,901

CivilEngineering15,678Architecture

Operating Profit
YoY

YoY202303-2Q

202403-2Q

13.9%

1,719

798

△53.6%

18,151

15.8%

27

1,372

4,952.4%

4,627

11,427146.9%△960

1,137-

Solution

2,879

3,567

23.9%

876

1,367

56.0%

Other

3,820

3,992

4.5%

△78△255-

Internal Sales between business segments are NOT adjusted.

2023/11/27-5-B/S Summary
Short-term borrowings decreased for a moment, as account receivables andVAT refund were collected
FY202403-2Q

FY202303

Cash and Cash Equivalents △1,946

VAT Receivable △3,166

流動資産
CurrentAssets92,956
92,956
固定資産
FixedAssets
固定資産
69,201
69,201
69,201

Current Liabilities

69,341

Fixed Liabilities

16,119Net Assets
76,697

Total assets/liabilities and net assets: 162,158（Million Yen）

Short-Term Borrowings△7,280Current Liabilities

Current Assets
88,298Fixed Assets
70,55763,447

Fixed Liabilities

17,516

Net Assets
77,891

Total assets/liabilities and net assets:
158,856 (△3,301)

Shareholders Equity +507

2023/11/27-6-

C/S Summary
Operating receivables collection improved CFO and short-term borrowings are repaid
temporarily
FY202403-2Q

FY202303-2Q
CFO
CFI
CFF

7,118

Negative CFO for few completions.
Working capital covered by CFF.

(Million Yen)

CFO improved significantly due
to project completions.
Repayment of short-termborrowings turned CFF negative.

822

△ 859
△195
FCF

2023/11/27

△895

△ 699

FCF

6,258

△ 8,215-7-

Orders State Summary
With plenty carried from the previous FY, orders on hand are still at a high level
FY202303-2Q

FY202403-2Q

Newly-Received

Newly-Received

SC 30,174
CE 14,216
AR 4,169
SO 3,357
OT 3,988

SC 24,142
CE 13,120
AR 7,777
SO 3,659OT 4,514

55,905

From FY202203

146,334

SC 77,869
CE 47,256
AR 17,965
SO 2,734
OT 50853,215

Sales51,504

SC 24,499
CE 15,678
AR 4,627
SO 2,879
OT 3,820

SC: Steel Construction CE: Civil Engineering
AR: Architecture SO: Solution OT: Other

2023/11/27

On Hand150,734

SC 83,544
CE 45,794
AR 17,507
SO 3,212
OT 676

From FY202303

154,364

SC 84,990
CE 49,100
AR 16,526
SO 3,355
OT 391(Million Yen)

△2,690Decrease in SC, yetlarge recovery in AR△8,193Slightly decreased due toprojects’ steady progress,
yet still highSales

On HandSC 27,901
CE 18,151
AR11,427
SO 3,567
OT 3,992

SC 81,231
CE 44,069
AR 12,877
SO 3,448
OT 91465,038142,541

Internal Sales between business segments are NOT adjusted.
-8-Forecasts for FY202403※Revised on Nov 10, 2023

2023/11/27-9-Orders State Summary (Forecast)With plenty orders from the previous FY and continuing solid new orders,
year-end orders will be highFY202303-2Q

FY202403-2Q

Newly-Received

Newly-Received

SC 63,192
CE 36,879
AR 12,719
SO 6,992
OT 7,873SC 54,500
CE 36,000
AR 18,500
SO 7,500
OT 9,000

127,657

From FY202203

146,334

SC 77,869
CE 47,256
AR 17,965
SO 2,734
OT 508125,500Sales

To FY202303

From FY202303

SC 84,990
CE 49,100
AR 16,526
SO 3,355
OT 391

SC 84,990
CE 49,100
AR 16,526
SO 3,355
OT 391

119,626

SC 56,071
CE 35,035
AR 14,158
SO 6,371
OT 7,989

SC: Steel Construction CE: Civil Engineering
AR: Architecture SO: Solution OT: Other

2023/11/27

154,364

154,364(Million Yen)

*Previous Forecast

Sales 135,000 To FY202403 144,864
SC 75,490
SC 64,000
CE 50,100
CE 35,000
AR 15,026
AR 20,000
SO 3,855
SO 7,000
OT391
OT 9,000Sales

To FY202403

SE 63,000
CE 33,000
AR 17,500
SO 7,300
OT 8,700

SE 76,490
CE 52,100
AR 17,526
SO 3,555
OT 691

129,500

150,364

Internal Sales between business segments are NOT adjusted.
- 10 -

P/L Summary (Forecast)Compared to the previous forecast, sales are expected to decrease
due to projects delays etc., still each profits to increase
FY202403
PreviousFY202403
RevisedChangeSales Revenues

133,000

128,000△5,000Gross Profit

15,60017,4001,800

Operating Profit

4,600

6,400

1,800

5,100

6,900

1,800

3,900

4,700

800

Ordinary Profit

Shares of Profit ofEntities Accounted for
Using Equity Method

Net income

Attributable to owners of Kawada

2023/11/27(Million Yen)

900

900

- 11 -

Sales Revenues and Operating Profits (Forecast)With more contract alterations and further cost reductions expected, profits areestimated to increase in Steel Construction and Civil Engineering(Million Yen)

Sales Revenues
FY202403
Previous

FY202403
RevisedOperating Profits
ChangeFY202403
Previous

FY202403
RevisedChange

SteelConstruction

64,00063,000 △1,0003,000

4,000

1,000

CivilEngineering

35,00033,000 △2,000

1,750

1,7500Architecture

20,00017,500 △2,500150

1,250

1,100

Solution

7,000

7,300

300

2,350

2,500150

Other9,000

8,700

△300

△150△500△350

Internal Sales between business segments are NOT adjusted.

2023/11/27- 12 -

<Steel Construction>

Newly-Received Order, Sales and Operating Profit (Forecast)(Million Yen)
Newly-Received Order

59,006

63,192

Sales Revenues

FY202403 (Forecast)

63,00056,071

Newly-Received Orders 54,500

63,000Operating Profit (Margin) 4,000(6.3%)

Sales Revenues

54,50050,033Operating Profit Margin

10.8%
7.3%

Steel Bridge Business
6.3%

Operating Profit

5,425

2022/32023/11/27

4,097

2023/34,000

2024/3
Forecast

Strives to capture the demand of therenewal and maintenance market,
which is in rapid increase over the last
few years. Also, a big new construction
project is on the horizon.

Architectural Steel Business

Expects to receive big projects orders
continuously, such as redevelopments
in metropolitan areas, construction ofdatacenters, semiconductor plants, etc.

- 13 -<Civil Engineering>

Newly-received Orders, Sales and Operating Profit (Forecast)(Million Yen)
Sales Revenues

31,40536,87933,03735,035

FY202403 (Forecast)

36,00033,000

Newly-Received Orders
Operating Profit Margin

7.2%
5.9%

5.3%

Operating Profit

2,380

2022/32023/11/27

2,067

2023/31,750

2024/3
Forecast

Newly-received orders 36,000

33,000Operating Profit (Margin) 1,750(5.3%)
Sales Revenues

An outstanding market shift from
“New-construction” to “Renewaland maintenance” is underway.
The environment becoming harder
due to projects’ enlargement andwith more competitors in themarket, we are striving to capture
the strong demand and increase
the profitability through properrisk control.

- 14 -<Architecture>

Newly-received Order, Sales, Operating Profit (Forecast)(Million Yen)

18,50017,500

Newly-Received Orders

FY202403 (Forecast)

Newly-received orders 18,500

15,71517,500Operating Profit (margin) 1,250(7.1%)
Sales Revenues

14,15812,719
Sales Revenues

9,607
7.1%

Operating Profit Margin

0.6%

2022/356△ 423

2023/3Operating Profit

1,250

2024/3
Forecast

With our KBS, Kawada Building
System, we make the best use ofthe strong demand in thedistribution warehouse market.

Due to completions andaccompanying contract alterations
for some less-profitable projects,
we will be back to the black thisFY.

△3.0%
2023/11/27- 15 -<Solution>

Newly-Received Order, Sales and Operating Profit (Forecast)(Million Yen)

Newly-Received Orders

6,276

7,500

6,992

Sales Revenues

5,603

32.1%

6,371

FY202403 (Forecast)

7,300
34.2%

22.3%

Operating Profit Margin

Operating Profit

Software-related Business

2,047

2,500

1,252

2022/32023/11/27

7,500
Sales Revenues
7,300
Operating Profit (margin) 2,500(34.2%)
Newly-received orders

On the background of MLIT(*)
promoting BIM/CIM, our cloudservice shows strong performance,in addition to already-strong 3DCAD software.

Robotics-related Business2023/32024/3
Forecast

We are making every effort to turna profit, getting our cost structureleaner and proactively promoting
Fillie, our new product.
- 16 -

Year-End Dividend（Forecast）
With the present net income forecast, the year-end dividend will be240 yen per share（ Yen ）

300

240

250

210

Under the Premise of:
Net Income : 47 billion yen
Net Income per share : 820.04 yen
Payout Ratio : 30% target

200

29.2%

29.3%

150

100808050

Payout ratio 7.3%

7.4%

100 ※

11.4%

02020/3

2021/32022/3* Memorial dividend of 20 yen included in 2023/3
2023/11/27

2023/32024/3

Forecast- 17 -The information in this document is based on assumption in light of information available as of the date ofannouncement of this material, and the factors of uncertainty that may possibly impact the future results ofoperations. These forward-looking statements involve risks, uncertainties and other factors that may cause
actual results and achievements to differ from those anticipated in these statements.

- Contact ir.kti@kawada.jp- 18 -