Financial Results
FY2022
May 13,2022

Securities Code : 7438

Contents
1.

Highlights of FY2022 Financial Results

P.3

2.

Company Overview

P.6

3.

Main Products and Merchandise

P.14

4.

FY2022 Financial Results and Analysis

P.20

5.

FY2022 Financial Results and Analysis by Segment

P.26

6.

FY2023 Financial Forecast

P.34

7.

Response to ESG Issues

P.36

8.

Growth Strategies

P.42

9.

Shareholder Return

P.51

10. Highlights of Results

P.54

1. Highlights of FY2022 Financial Results

Summary of FY2022 Consolidated Financial Results
 Net sales increased due to demand recovery in construction, price revisions reflecting surging
materials costs and sales contributions from Fukoku (which became a subsidiary in January 2021)
and KURIYAMA ALUMINUM (which became a subsidiary in October 2021).
 Operating results increased thanks to the sales growth offsetting a dip in gross profit margin,
higher freight costs and personnel expenses, and higher SG&A expenses following the acquisitionof the subsidiaries.

Net sales

66,139 million yen

YoY+11.0%

Operatingincome3,594 million yen

YoY

+7.1%

Ordinary
income3,810 million yen

YoY+10.3%

Profitattributable toowner of parent

2,284 million yen

YoY+46.4%E B I T D A

5,095 million yen

YoY+34.7%

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

3Topics in FY2022
Transition to the Prime Market ofTokyo Stock Exchange With the market restructuring of Tokyo Stock Exchange,
KONDOTEC shifted to the new Prime Market from theFirst Section under the previous Tokyo Stock Exchange
structure on April 4, 2022.
 As a listed company, KONDOTEC strives to achievesustainable growth and the increase of corporate value
over the medium to long term by strengthening andexpansion of corporate governance, bolstering the
profitability of existing businesses, and stepping up
investment in growth areas (overseas operations,maintenance/repair for deteriorating social
infrastructure, and labor-saving technologies responding
to labor-shortage and workstyle reforms).

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 asubsidiary with the aim of achieving sustainable growthand improving the corporate value of the KONDOTEC
group over the medium to long term by bringing aluminumproducts (for which future demand is predicted toincrease) into the range handled by the group.
Company
name

KURIYAMA ALUMINUM Co., Ltd.

Location

Nakamura-ku, Nagoya

Business
areas

Development and manufacture of aluminum
extrusions

Capitalstock

96 million yen (As of September 2020）

Decision on acquisition of treasury stocks

Acquisition of ISO14001 at Kyushu Factory In November 2021, KONDOTEC resolved to acquire its
treasury shares to expand shareholder returns,
improve its capital efficiency, and implement a flexible
capital policy in response to business environment.

 In January 2022, Kyushu Factory obtained ISO14001
for environmental management system.
 In order to achieve a sustainable society, we willcontinue to create environmental value for the futureand foster coexistence between people and nature
through our business activities in harmony with nature.

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
Acquired sharesand merchandise to various industries in response to changes of the times and customer needs.
of KURIYAMA
Acquired sharesof FUKOKU（trillion yen）

70,000Acquired shares of KONDOTEC
INTERNATIONAL and CHUOH GIKEN

90

ALUMINUM
7,000

Acquired sharesof TOKAI STEP
Acquired sharesof TECBUILD

60,000

6,000

60

5,000

Net sales (million yen)

The Great East Japan Earthquake
30

Opened Shiga Factory
40,0004,000

Opened Sapporo Factory0Aneha’s The Fabrication of
Quake-Resistance Incident

Opened Kanto Factory

Construction investment (nominal)
30,000Acquired shares of
Sanwa Denzai〈 Sales 〉

The Burst Bubble

The Great Hanshin-Awaji
Earthquake

3,000

Industrial Materials

Ordinary income (million yen)

50,000

Structural Steel Materials
20,0002,000

Electrical Equipment
Ordinary income
The Oil Shocks

EBITDA
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 March 31, 2022)

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:733

Capital stock

2,666 million yen

Listed stock market

Tokyo Stock Exchange (Prime Market) (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:1,215 (As of March 31, 2022)

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 the Tokyo
Stock Exchange

April 2010

Acquired shares of Sanwa Denzai Co., Ltd.

April 2011

Designated as the First Section stock by the
Tokyo Stock Exchange and the Osaka Stock
Exchange

May 2011

Established a representative office (Bangkok,
Thailand)November 2012

August 2014

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

October 2021

Acquired shares of KURIYAMA ALUMINUM Co., Ltd.

April 2022

Shifted to the Prime Market from the First
Section under the previous Tokyo Stock
Exchange structure.

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.
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%(As of September 2021)

8

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 (FY2022)

Electrical
Equipment

8,610
million yen

Structural 13%
Steel Materials

16,098 million yen
24%

Industrial
Materials

41,430 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 (FY2022)
Industrial Materials

Structural Steel Materials

Electrical Equipment

63%

24%

13%

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 2022)

Consolidated

Industrial
Materials

Structural
Steel Materials

Electrical
Equipment

66,139 million yen

41,430 million yen

16,098 million yen

8,610 million yen

InhouseInhouseNet sales

13%

16%
Domesticallysourced

66%

InhouseImported18%

Domesticallysourced

61%

32%

Imported

26%

Domesticallysourced

59%

Imported

9%

Domestically-sourced100%

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

103

72

17

Number of items

Approx. 50,000

Number of customers

Approx. 26,000

Approx. 16,000

Approx. 5,000

Approx. 5,000

Number ofcustomers

2,422

1,516

573

333

Net sales

2,747

1,249

696

801

N e w
customers(million yen)

Approx. 40,000

14

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. FY2022 Financial Results and Analysis

FY2022 Consolidated Financial Results
Vs. FY2021(million yen)YoY
FY2021

FY2022

Amount%Net sales

59,562

66,139+6,577+11.0%

Gross profit

13,604

14,730+1,126+8.3%

SG&A expenses

10,249

11,136

+887

+8.7%

Operating income

3,354

3,594

+239

+7.1%

Ordinary income

3,455

3,810

+354

+10.3%

Profit attributable toowner of parent

1,561

2,284

+723

+46.4%ＥBＩＴＤＡ

3,783

5,095

+1,311+34.7%

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△249

Parent

△340

953

△124

The impacts of making
Nippon Scaffolding
Holdings, FUKOKU, andKURIYAMA ALUMINUM
subsidiaries

3,354

23.3%
23.0%

23.7%
23.6%

22.7%

3,594

22.1%

22.8% 22.8%

21.9%

22.9%
22.4%

22.6%
22.5%
21.7%
22.3%
21.4%

FY2021Net Sales

Gross Profit

SG&A

MarginExpenses

Other

FY2022

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

22.8%→22.4%

SG&A
Expenses

Bonuses +116 million yen
Salaries +88 million yen
Freight and packing costs +84 million yen

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022

21

FY2022 Consolidated Financial Results
Vs. Forecast(million yen)
FY2022
Forecast

Net sales

63,700

FY2022
Actual

66,139Operating income analysis(million yen)

ChangeAmount%+2,439

+3.8%

564

△583
243

Gross profit

14,75014,730

△19

△0.1%

SG&A
expenses

11,380

11,136

△243

△2.1%

3,594

3,370
Operatingincome

3,370

3,594

+224

+6.7%

Ordinary
income

3,500

3,810

+310

+8.9%
FY2022

Profitattributableto owner ofparentForecast

2,450

2,284

△165

△6.8%

Gross Profit
MarginNet Sales

Gross Profit

SG&A

FY2022MarginExpenses

ActualForecast 23.2%

Actual 22.3%

22Consolidated Balance Sheet [Assets](million yen)

FY2021

FY2022

ChangeCurrent assets
Non-current assets

Cash and deposits

11,317

10,164△1,153

Notes and receivable –trade,and contract assets

12,372

13,200+828Electronically recordedmonetary claims operating

1,984

2,861

+877

Inventories

4,932

7,183

+2,250

962

1,225

+263

Total current assets

31,56934,636+3,066

Property, plant, and equipment

11,84815,011+3,163

Intangible assets

5,044

5,368

+323

963

993

+30

17,856

21,373+3,51749,42656,009+6,583

Other

Investments and other assets
Total non-current-assets

Total assets

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

FY2021

FY2022

ChangeCurrent liabilities

Notes and accounts payable – trade

3,978

4,346

+368

Electronically recorded
obligations – operations

8,029

9,114

+1,084

Breakdown

Electronically recorded obligations–operations
Repayment before maturity

9,202

10,762+1,559△1,173△1,648

△474

4,610

+1,500

596

814

+217

Other

3,124

3,097

△26

Total current liabilities

18,83821,983+3,144Non-current liabilities

1,564

1,959

+394

Total liabilities

20,40323,942+3,539

Shareholder’s equity

30,21031,342+1,132

Accumulated other comprehensive
income△1,216△1,255△39

Subscription rights to shares

28

－

△28

Non-controlling interests

0

1,979

+1,979Total net assets

29,022

32,066+3,044

Total liabilities and net assets

49,42656,009+6,583

Net assets

3,110

Short-term loans payable
Income taxes payable245. FY2022 Financial Results and Analysis by Segment

FY2022 Financial Results by Segment(million yen)

FY2021

FY2022

Change(%)

Full-year
forecast

Change(%)

Industrial
Materials
Structural
Steel
Materials
Electrical
Equipment

Net sales

37,282

41,430+11.1%

40,452+2.4%

Segment
profit or loss

2,208

2,087

△5.5%

2,265

△7.9%

EBITDA

2,946

2,971

+0.9%

－

－

Net sales

14,03516,098+14.7%

14,687+9.6%

Segment
profit or loss

944

1,304

+38.2%

940+38.7%EBITDA

974

1,345+38.1%－－Net sales

8,243

8,610

+4.4%

8,560

+0.6%

Segment
profit or loss

253

233

△7.6%

214

+9.3%

EBITDA

281

269

△4.4%

－

－

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

41,43037,282

2,208

11,308YoY

2,087+11.1%

8,758 9,025

9,536
669

YoY
553

△5.5%

9,961

593

FY2022

9,900

540

582

566

397

393

FY2021

9,528

10,693

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY2022

Factors affecting net sales
Net sales increased by about 4,150 million yen YoY.
Sales of hardware for wooden homes, worksite equipment, and temporary scaffolding materials remained solid, supported by demand
recovery in the construction market and the last-minute demand before the price hike. There was also sales contributions from Fukoku(which became a subsidiary in January 2021) and KURIYAMA ALUMINUM (which became a subsidiary in October 2021).

Increased/decreased amount in net sales (million yen)
Products(approximate)+220

Merchandise(approximate)
Other

Braces/ +113

Sales increased due to a rise in demand and sales prices.

+1,840Hardware for wooden homes/ +448

Sales increased due to the demand recovery from theimpact of the COVID-19 infection.

+2,090

Nippon Scaffolding Holdings
FUKOKUKURIYAMA ALUMINUM/ +85/+1,066/ +938

Sales increased on the contributions from new subsidiaries.

27

Segment profit or loss analysis

△293
△216

△19

42

Goodwill amortization△167 million yen

2,087

Goodwill amortization incurred in Q4
463 million yen

Importedmerchandise

Major increase/decrease
factors related tosubsidiaries

2,208

Quarterly GPM
Products
manufactured
in-house365(million yen)

27.3% 29.1% 28.8%

23.1%

27.2% 26.3%
24.8%

30.7% 30.6%
29.2% 29.8%
28.8%

21.0%

27.6%
25.8% 25.4%

Operating income+193 million yen

Sales
VolumeSales Price Gross Profit
Margin

SG&A
Expenses

Factors
Related to
Subsidiaries

FY2022

Note: The following figures do not include subsidiaries.
Sales
VolumeProducts △5 million yen Merchandise △13 million yen

Sales
Price

Products +59 million yen Merchandise +305 million yen
Products 27.1% → 24.8%
Merchandise 22.2% → 21.5% (including imported
merchandise and domestically sourced merchandise)

SG&A
Expenses

Bonuses +75 million yen
Depreciation +25 million yen
Salaries +13million yen

Total
products andmerchandise

Gross
ProfitMarginDomesticallysourcedmerchandise

FY2021

19.8%

19.5%

19.6%

19.3%

19.1% 19.1%

19.0%
18.7%

22.7%

23.2% 23.6%
22.1%

22.6% 22.4%

22.1%
21.3%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY202228

Structural Steel Materials
Net sales and segment profit or loss

(million yen) Quarterly

 YoY

4,299 4,328

Net sales

3,954

Segment profit or loss

16,09814,035

YoY

3,467

3,658 3,616
3,293

3,516

+14.7%
404

1,304

YoY

944

311
240

260

+38.2%FY2021

FY2022

431
252

217
132

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY2022

Factors affecting net sales
Net sales increased by about 2,060 million yen YoY.
Sales of high strength bolts, steel frame materials, and screws remained firm, supported by recovery in steel frame demand from large
properties.
Increased/decreased amount in net sales (million yen)
Products(approximate)+580

Merchandise(approximate)+1,480Anchor bolts/+225

Sales increased due to a growth in the number of anchor bolt installation
works and a rise in bulk orders.

High strength bolts/+529

Sales increased due to a growth in orders reflecting the recovery in demand
from the impact of the COVID-19 infection and a rise in sales prices.

29Segment profit or loss analysis(million yen)

29.3% 30.7% 30.7%

Importedmerchandise

△119

238

Products
manufactured
in-house

5

Quarterly GPM

35.5% 35.8%

26.7%

31.1% 32.2% 31.8%
25.2%

235

1,304
944

36.9% 36.7%
34.2% 34.0%

19.3%

Gross Profit
Margin

SG&A
Expenses

FY2022

Sales
VolumeProducts +90 million yen Merchandise +145 million yen

Sales
Price

Products +81 million yen Merchandise +156 million yen

GrossProfitMarginProducts 29.5% → 30.2%
Merchandise 20.4% → 20.1% (including imported
merchandise and domestically sourced merchandise)

SG&A
Expenses

Freight and packing costs +80 million yen
Depreciation +17 million yen

18.8%

Total
products andmerchandise

Sales Volume Sales Price

30.8%

19.2%

Domesticallysourcedmerchandise

FY2021

32.3%

24.0% 23.9% 24.0%

18.7%

18.3%

18.0%
17.4%

17.3%

24.6%
23.7% 23.4%
21.9%

21.6%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY202230

Electrical Equipment
Net sales and segment profit or loss

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

2,237

2,155

YoY

8,610
8,243

1,963

1,886

2,126

2,226

1,933

+4.4%
112

253

YoY

233

66

44
28

26

FY2022

96

69

△7.6%

FY2021

2,323

42

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021

FY2021

FY2021

FY2021

FY2022

FY2022

FY2022

FY2022

Factors affecting net sales
Net sales increased by about 370 million yen YoY.
Despite sluggishness in the market environment due to supply delays caused by the semiconductor shortage and construction delays,
sales increased thanks to securing large-scale LED lighting installation works for condominiums and retail stores and robust sales ofelectrical wires due to the increase in copper prices.
Increased/decreased amount in net sales (million yen)
Electrical wires+324

Sales increased due to an increase in unit sales prices reflecting higher copper prices.

Electrical service-related/
Electrical supplies and products+74

The number of orders increased.

31

Segment profit or loss analysis(million yen)

Quarterly GPM and the number of projects

17.4%

Gross Profit Margin

76

△41
△53

16.8%
16.6%

16.8%

16.8%

16.4%

16.3%

16.0%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022

253

233
17

Net Sales

Gross Profit
Margin

SG&A Expenses

Gross Profit
Margin

16.9% → 16.5%

SG&A
ExpensesCommission expenses +14 million yen
Bonuses +9 million yen
Supplies expenses +9 million yen

FY2022

Number of projects※

FY2021

14

13
11

7

Q1

10

8
6

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 FY2022

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

32

6. FY2023 Financial Forecast

FY2023 Consolidated Financial Forecast

FY2022

FY2023

ChangeActualForecast

Amount%Net sales

66,13970,000+3,860+5.8%

Gross profit

14,73015,910+1,179+8.0%

SG&A expenses

11,136

12,100

+963

+8.7%

Operating income

3,594

3,810

+215

+6.0%

Ordinary income

3,810

3,970

+159

+4.2%

Profit attributable toowner of parent

2,284

2,470

+185

+8.1%

34

7. 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

SocialStance 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
 Co-existence with local
communities Safety measures and workstyle reform

Governance

Quality control of products and merchandise

Stance for information disclosure
Information security measures
Operating site opening plan
Response to disasters and contributions to local
communities
Risk control for disasters and others
Employee 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

36

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
 Introduction of a restricted stock compensation plan and employee

 Holding of Safety and Health Committee

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 Growth37

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, Kanto
Factory and Kyusyu Factory. We will continue to work on
business activities with full consideration for environmental
preservation.
With regard to Sapporo Factory, we are targeting theacquisition of the certification.

38

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 2022)
Year ofemployment

April-2022
April-2021
April-2020
April-2019
April-2018

Nationality ofinternational
student(other than Japan)

Male

Female

Total

8

5

13

persons

persons

persons

10

10

20

persons

persons

persons11

7

18

persons

persons

persons19

4

23

persons

persons

persons12

618

persons

persons

persons

Number ofturnover (※)

0 person0 personof 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

3 personBrazil0 personKorea

2 persons Benefit program
Number of employees taking childcare leave (As of end March 2022)
Those who tookchildcare leave
during the period

Return to work rate
after childcare leave
during the period

Rate of those who are
currently on childcare leave
during the period

2021.4.1~2022.3.31

6 persons66.7 %

33.3 %

2020.4.1~2021.3.31

7 persons

100 %

-

2019.4.1~2020.3.31

4 persons

100 %

-

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

39

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.

40

8. 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 (FY2023–FY2025)

0
1953

1963

1973

1983

1993

2003

2013

2023

42

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

2,747

2,612

2,526

FY2021

2,609

2,422

2,346

FY2022

FY2023Cultivation of dormant customers
Net sales (million yen)
1,469

FY2021(forecast)

Net sales (million yen)

FY2021

FY2022KONDO furring bolts

187

248

Hook bolts
with square shank

160

157

KT safely harness

20

23

Lightweightscaffolding chains“Carina”

-

14

1,558

FY202243

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 run our website called, “Tsurikata” that allows individual
management for lifting equipment to simplify inspection andmaintenance of lifting equipment on the website.
Traditionally, inspection checklists have been recorded
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.



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)
950

FY2021

1,068

FY2022

1,200

FY2023(forecast)

Net sales (million yen)Home improvement centers

830

Railroads

851

812

345

330

349

FY2021

FY2022

FY2023(forecast) 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

FY2021

1,031

1,030

FY2022

FY2023(forecast)44

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:
103 operating sites (As of end March 2022)
Industrial Materials

72

Structural Steel Materials

17

Electrical Equipment

14＜Operating sites＞
Industrial Materials
Structural Steel Materials
Industrial and Structural Steel Materials
Electrical Equipment

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

2022

Gunma Office

Factory45

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

12/3

4,857

5,141

5,132 5,112

5,461
4,941 4,854

4,662

 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.
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

3,877

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

Related merchandise
Flexible container bags Tarpaulins, Sandbags etc.

Net, Sheet etc.

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

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

46

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 (FY2022)(million yen)

FY2021

FY2022

FY2022
forecast

International
Sales Division

20

51

55

102 million baht (approximately 316 million yen)

Local Subsidiaryin Thailand

191

130

210

November 1, 2012

Total

211

181

265

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

Percentage of sales by country (FY2022)

Expand business areasin the ASEAN region

ASEAN

79%

East
Asia/China

16%

Near andMiddle East
Other
countries

Indonesia

29%

Thailand27%

Singapore

13%

4%

Vietnam

9%

1%

Malaysia

1%

47

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.

48

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.

Properties
ofaluminumLightweight and high-strengthEasy to form into new shapes

Easy to recycle

Widely used invarious 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).

49

9. 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.

Transition in dividends

Shareholder incentive plan

Since initial listing: No decrease in dividends

 Shareholders can redeem reward points for over
2,000 choices (including food, appliances,electronics, travel, activities and much more)through the Premium Special Club PORTAL.

Plan to increase dividends
for the 12 th consecutive period

34yen(forecast)
32yen

Ordinary dividend
Increase in ordinary dividend

29yenCommemorative dividend

26yen

Performance indicators for dividend

24yen
23yen
22yen

※ Closing price on April 28: 1,083 yen

Dividendyield

Dividend yield including
shareholder incentive plan

3.1%

3.7%～

20yen

15.5yen

13yen
11yen
10yen

14yen
13.5yen

Number of shares held

Reward points

500 to less than 600

3,000 points

600 to less than 700

4,000 points

700 to less than 800

5,000 points

800 to less than 900

6,000 points

900 to less than 1,000

7,000 points

1,000 or more

10,000 points

Note: 1 point is worth 1 yen.

Acquisition of treasury stocks

6yen
5yen 5.5yen

1995

1999

2003

(As of March 31)

2007

2011

2015

2019

2023

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

51

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 22/4

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 3,918 listed companies …
ROE

1,719thProfitattributable toowner of parent

1,421stOrdinary income

1,199th

Net assets

1,427thMarketcapitalization

1,538thPBR

2,274thPER

2,256th

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 22/4

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 April 28

1,083 yen
PER： 11.3 PBR：0.9

Source: Mizuho Securities Co., Ltd. (As of March 31, 2022)

EPS： 96.12 yen (FY2023 forecast)
BPS： 1,170.84 yen (As of end March 2022)52

10. Highlights of Results

Highlights of Consolidated Financial Results

66,139Net sales

million yen(million yen)

66,13957,82847,991 49,168
38,74550,21150,4103,594Operating income(million yen)million yen

70,0003,907

60,599 59,562

52,811

3,271

3,303

14/3

15/3

3,441

3,516

3,537

16/3

17/3

18/3

4,085
3,594

3,810

3,354

2,664

41,153
1,926

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3

12/3

13/3

19/3

20/3

21/3

22/3

forecast

3,810

Ordinary income(million yen)

4,023
3,368

3,408

3,544

3,614

million yen

4,177
3,810

3,655

23/3
forecast

Profit attributable toowner of parent

2,284(million yen)

2,748

3,970

2,497

3,455
1,992

2,098

million yen

2,875

2,523

2,470
2,284

2,239

2,754
1,605

1,561

2,019
1,046

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3
forecast

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3
forecast

54

Highlights of Consolidated Financial Results

32,066

Net assets (million yen)million yen

ROE (%)

Target10% or higher

32,06628,387

11.1

29,022

26,756

10.8

10.9

11.4
10.7

10.7

10.0

10.4

10% or higher

24,74522,71918,783

20,231

21,102

7.7
7.1

16,9905.8

15,097

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

11/3

5.4

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3
forecast

Dividend per share (yen)

32.00
31.00

DOE (%)

yen
32.00

Target2.5% or higher

34.00

29.00
26.00
22.00

23.00

2.8

24.00
2.3

20.00

13.50

14.00

12/3

13/3

2.4

2.3

2.9

2.8

2.7

2.7

2.8

2.8

2.8

2.4
2.5% or higher

15.50

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

23/3
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

23/3
forecast

55

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

23/3 (forecast)

Net sales

38,745

41,15347,991

49,16850,21150,41052,811

57,82860,59959,562

66,13970,000Operating profit

1,926

2,664

3,271

3,303

3,441

3,516

3,537

3,907

4,085

3,354

3,594

3,810

Ordinary income

2,019

2,754

3,368

3,408

3,544

3,614

3,655

4,023

4,177

3,455

3,810

3,970

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

2,284

2,470

EBITDA

2,492

3,178

3,846

3,948

3,910

4,052

4,079

4,425

4,916

3,783

5,095

-

Capital investment

180

566

679

403

842

695

423

981

917

1,097

1,694

-

Depreciation

428

390

418

449

405

438

423

404

697

897

1,091

-

Total assets

28,40331,192

34,48135,186

34,64536,52439,313

43,82046,33549,42656,009-Net assets

15,097

16,99018,783

20,231

21,102

22,71924,74526,75628,38729,022

32,066

-

705

808

806

636

508

501

500

853

1,106

3,875

5,315

-

Cash flows from operating activities

1,454

2,077

1,887

1,818

1,945

2,737

2,429

2,699

4,385

4,196

1,227

-

Cash flows from investing activities△ 1,511

△ 494

△ 660

828

△ 829

△ 646

△ 506 △ 1,551△ 5,205△ 2,264△ 2,373-

Cash flows from financing activities

△ 550

426

△ 389

△ 699 △ 1,092 △ 1,032

△ 703

△ 915

△ 992

1,060

△ 22

-

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

10,164-

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

87.26

96.12

Net assets per share

582.41615.12679.27730.49774.18846.59922.62996.99

1,071.09

1,110.01

1,170.84-

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

34.00

Result of Operations (million yen)

Financial Position (million yen)Interest-bearing debt
Cash Flows (million yen)

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

5.4

5.4

ROE (%)

7.1

10.0

11.1

10.8

10.9

11.4

10.7

10.7

10.4

5.4

7.7

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

53.7

-

DOE (%)

2.4

2.3

2.4

2.8

2.9

2.8

2.7

2.7

2.8

2.8

2.8 2.5% or higher

Stock closing price (yen)

625

606

718

786

834

933

939

1,006

929

1,069

1,017

-

Price earnings ratio (times)

15.5

10.0

10.0

10.4

10.3

10.0

10.0

9.8

8.6

17.9

11.7

-

Stock Price Index

56

Quarterly Highlights
Consolidated
Net sales (million yen)
17,862
16,053

15,665
12,433

1Q

13,22014,050

2Q

3Q

13,1084Q

13,613

14,350

1Q

2Q

18/3

3Q

14,19914,313

4Q

1Q

15,585

2Q

19/3

3Q

14,647

4Q

14,112

1Q

14,83915,117

15,492

2Q

3Q

4Q

20/3

16,326

16,971

14,978

1Q

2Q

21/3

3Q

4Q

22/3

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

944

911

987
891

875

915

858

988

970

660

2Q

3Q
18/3

4Q

1Q

2Q

3Q
19/3

4Q

1Q

2Q

3Q
20/3

4Q

1,064

911

808

760

721

1Q

1,203

1Q

629

2Q

3Q
21/3

4Q

1Q

2Q

3Q
22/3

4Q

57

Quarterly Highlights
Industrial Materials
Net sales (million yen)
11,308

8,919
8,052
7,228

7,373

1Q

2Q

3Q

7,607

7,664

4Q

1Q

7,968

2Q

18/3

7,907

3Q

4Q

9,175

9,227

2Q

3Q

8,371

1Q

19/3

8,685

8,758

9,025

4Q

1Q

2Q

9,536

3Q

20/3

9,961

4Q

9,528

1Q

10,693

9,900

2Q

21/3

3Q

4Q

582

566

3Q

4Q

22/3

Segment profit or loss (million yen)
672

640
562
505

532
474

429

669

509

593

553

544

540

472
421

397

393

329

1Q

2Q

3Q
18/3

4Q

1Q

2Q

3Q
19/3

4Q

1Q

2Q

3Q
20/3

4Q

1Q

2Q

3Q
21/3

4Q

1Q

2Q
22/3

58

Quarterly Highlights
Structural Steel Materials
Net sales (million yen)

4,597
3,720

3,991

2Q

4,225

4,412
4,019

4,322
3,859

3,835

3,467

3,420

3,277

1Q

3,913

3Q

4Q

1Q

2Q

18/3

3Q

4Q

1Q

2Q

19/3

3Q

4Q

1Q

3,658

2Q

3,616

3Q

20/3

3,293

4Q

4,299

4,328

2Q

3Q

3,954

3,516

1Q

21/3

4Q

22/3

Segment profit or loss (million yen)
552
497

378

388

369

416

482

360

338

311

302

287

431

404

399

260

240

252

217
132

1Q

2Q

3Q

18/3

4Q

1Q

2Q

3Q

19/3

4Q

1Q

2Q

3Q

20/3

4Q

1Q

2Q

3Q

21/3

4Q

1Q

2Q

3Q

22/3

4Q

59

Quarterly Highlights
Electrical Equipment
Net sales (million yen)
2,465
2,125
1,927

1Q

2Q

2,005

3Q

2,080

4Q

2,035

1Q

2,156

2,148

2Q

18/3

3Q

2,272

4Q

2,107

1Q

2Q

19/3

2,035

2,101

3Q

4Q

2,237

2,155
1,963

1,886

1Q

2Q

20/3

3Q

2,126

2,226

2,323

1,933

4Q

1Q

2Q

21/3

3Q

4Q

22/3

Segment profit or loss (million yen)

89

96

72

66

58

112

106

97

63
52

28

69

66

59
44

26

42
28

26

7

1Q

2Q

3Q
18/3

4Q

1Q

2Q

3Q
19/3

4Q

1Q

2Q

3Q
20/3

4Q

1Q

2Q

3Q
21/3

4Q

1Q

2Q

3Q
22/3

4Q

60

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