Financial Results
Q3 FY2021
February 9, 2021

Securities Code : 7438

Contents
1.

Highlights of Q3 FY2021 Financial Results and Recent
Initiatives

P.3

2.

Company Overview

P.6

3.

Main Products and Merchandise

P.14

4.

Q3 FY2021 Financial Results and Analysis

P.20

5.

Q3 FY2021 Financial Results and Analysis by Segment

P.26

6.

Response to ESG Issues

P.34

7.

Growth Strategies

P.40

8.

Shareholder Return

P.48

9.

Highlights of Results

P.51

1. Highlights of Q3 FY2021 Financial Results
and Recent Initiatives

Summary of Q3 FY2021 Consolidated Financial Results
 Net sales decreased due to the sales contribution from TOKAI STEP was unable tooffset the drop in sales caused by the impact of the COVID-19 infection.
 Operating results decreased. Although we worked to cut SG&A expenses and improve
efficiency, were unable to offset the impact of the sales decline.

Net sales

44,069 million yen

Operatingincome2,546 million yen

YoY △21.1％

Ordinary
income2,626 million yen

YoY △20.3％

Profitattributable toowner of parent

1,699 million yen

YoY △23.2％

E B I T D A

3,428 million yen

YoY △10.9％

YoY

△4.1％

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

3

Recent Initiatives
Acquisition of FUKOKU, Ltd. in January 2021

Establishment of intermediate holding company

 KONDOTEC acquired all shares in FUKOKU, Ltd. with the aim ofachieving sustainable growth and improving the corporate valueof the KONDOTEC group over the medium to long term. We
anticipate further business expansion through cooperation withTECBUILD, TOKAI STEP and FUKOKU on maintenance and repair
projects for deteriorating social infrastructure.

 KONDOTEC has three subsidiaries – TECBUILD CO., LTD., TOKAISTEP CO., LTD. and FUKOKU, Ltd. -each operating independently
and providing scaffolding construction services. We announced theestablishment of an intermediate holding company to manage theoperations of these three subsidiaries with the aim of promoting
collaboration with these subsidiaries by sharing management
resources.

＜Company overview＞＜Company overview＞
Company
name

FUKOKU, Ltd.

Company
nameNippon Scaffolding Holdings Co., Ltd.

Location

Izumi-Ku, Sendai, Miyagi

Location

Koto-ku, Tokyo

Businessareas

Scaffolding services for civil engineeringand construction

Businessareas

Management of subsidiaries that provide
scaffolding construction services

Capitalstock

33 million yen (As of December 2019)

Capitalstock

50 million yen＜KONDOTEC group structure＞ with effect from April 1, 2021

＜Recent financial results＞
FY2019(million yen)

Net sales

1,281OperatingincomeOrdinary
income15

EBITDA

17
44

Note: EBITDA= Income before income taxes + Interest expenses + Depreciation＜Past installation projects＞
Aqueduct bridge repair

KONDOTEC INC.
Sanwa Denzai Co., Ltd
K O N D O T E C
INTERNATIONAL(THAILAND) CO., LTD.

CHUOH GIKEN Co., Ltd.

Condominium repair

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

4

2. Company Overview

Performance Trends
We achieved our 9th consecutive year of record sales and profit as a result of efforts to supply
products and merchandise to various industries in response to changes of the times and customer needs
since establishment in 1953.
Acquired shares（trillion yen）

of TECBUILD

90

Acquired sharesof TOKAI STEP

Acquired shares of KONDOTEC
INTERNATIONAL and CHUOH GIKEN

60,0006,000

60

50,000Net sales (million yen)

40,000Opened Shiga
Factory

Opened Kanto
Factory

030,000

The Burst
BubbleIndustrial Materials

4,000

Aneha’s The Fabrication Of
Quake-Resistance Incident

Construction investment (nominal)〈 Sales 〉

5,000

The Great East
Japan Earthquake

Opened Sapporo
Factory30

The Great Hanshin-Awaji
Earthquake

3,000

Structural Steel Materials

Ordinary income (million yen)

Acquired sharesof Sanwa Denzai

Electrical Equipment
20,0002,000

Ordinary income
EBITDAThe Oil Shocks

10,0001,000

Opened Kyushu
Factory

0

0

1953

1958

1963

1968

1973

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

1978

1983

1988

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

1993

1998

2003

Reborn KONDOTEC
developed the base of leap
toward a stock listing

2008

2013

2018

Business Expansion, Enteringa new stage by M&A

6

Company Overview
Company name

KONDOTEC INC.

Group companies

Sanwa Denzai Co., Ltd. KONDOTEC INTERNATIONAL (THAILAND) CO., LTD.
CHUOH GIKEN Co., Ltd. TECBUILD CO., LTD. TOKAI STEP CO., LTD. FUKOKU, Ltd.

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:696

Capital stock

2,666 million yen

Listed stock market

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

Business areas

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

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

Conslidated:1,035 (As of March 31, 2020)7

Company History and Business Areas
Company history
January 1953

Established Kondo Shoten Co., Ltd.

January 1989

Changed the company name to
KONDOTEC INC.

April 1995

Listed on the Second Section of the
Osaka Stock Exchange

July 1999

Listed on the Second Section of theTokyo Stock Exchange

April 2010

Acquired shares of Sanwa Denzai Co., Ltd.

April 2011

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

May 2011

Established a representative office(Bangkok, Thailand)

November 2012

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

August 2014

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

February 2019

Acquired shares of TECBUILD CO., LTD.

February 2020

Acquired shares of TOKAI STEP CO., LTD.

January 2021

Acquired shares of FUKOKU, Ltd.

Business areas
Construction industry wholesale
Field

Other thanconstruction

Categorization of merchandise

KONDOTEC INC.
Shipbuilding
Wooden
Plastic
Construction
construction construction
materials
materials
materials
wholesaleMetal
construction
materials

Other
construction
materials

Transport
Land and sea
Cargo handling
Manufacturing &Production facilities
Fishery

Electric
equipment
wholesaleLighting andhot water
supplyequipment

Cultivation
Air-conditioning
equipment

Energy-saving
equipment

CHUOH GIKEN Co., Ltd.

Sanwa Denzai Co., Ltd.

Pipingequipmentmaterials
wholesale

Wet areaequipment

Agriculture, etc.

Hot water
supplyequipment

Security
devicesTECBUILD CO., LTD.
TOKAI STEP CO., LTD.
FUKOKU, Ltd.

Demand for
products andmerchandise•

Public 22％•

Private 78％(As of September 2020)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 (FY2020)

Electrical
Equipment

8,710
million yen

14％
Structural
Steel Materials

16,429 million yen
27％

Industrial
Materials

35,459 million yen
59％

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 (FY2020)
Industrial Materials

Structural Steel Materials

Electrical Equipment

59％

27％

14％

Customers

Tradingcompanies

overseas

HardwarestoresWholesalers

Electricalappliance
storesHome
improvement
center, etc.

End-users
Construction and civil engineering
Industry, etc.

Steelfabricators

Electrical work
operators

10

Segment Overview(As of end March 2020)

Consolidated

Industrial
Materials

Structural
Steel Materials

Electrical
Equipment

60,599 million yen

35,459 million yen

16,429 million yen

8,710 million yen

InhouseInhouseNet sales

13％

16％
Domesticallysourced

66％

InhouseImported18％

Domesticallysourced

60％

32％

Imported27％

Domesticallysourced

60％

Imported

8％

Domestically-sourced100％

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

94

64

17

Number of items

Approx. 50,000

Number of customers

Approx. 25,000

Approx. 15,000

Approx. 5,000

Approx. 5,000

Number ofcustomers

2,428

1,523

667

238

Net sale

2,581

1,104

934

542

N e w
customers(million yen)

Approx. 40,000

13

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

Approx. 10,000

11Market Size for Main Products and MerchandiseMarket size for main products, merchandise and corresponding market shares (As of end March 2020)
 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 130 billion yen

Z-Mark hardware
Markets size％％
About 30 billion yen

Braces％Market size
■ Products■ Merchandise

About 10 billion yen(KONDOTEC estimates)

Market size

Market size

About 45 billion yen

Welding wires

Anchor bolts

High strength bolts％
Market size
About 11 billion yen％

About 15 billion yen

Other higher shareproducts and merchandise Scaffolding
chains65.8％

 Turnbuckle

27.3％

 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

Strengthened Business and Products for Last Year

Scaffolding Installation

 FUKOKU (shares acquired in January 2021) as well as TECBULID and TOKAI STEP handle assembly and disassemblyof scaffolding is used for construction and repairs of warehouses, detached homes and condominiums.

Overpass repair

Condominium construction18

4. Q3 FY2021 Financial Results and Analysis

Q3 FY2021 Consolidated Financial Results(million yen)

Q3

Q3

YoY

FY2020

FY2021

Amount%Net sales

45,95244,069△1,883△4.1％

Gross profit

10,342

10,181

△160

△1.6％

SG&A expenses

7,115

7,635

＋519

＋7.3％

Operating income

3,226

2,546

△680

△21.1％

Ordinary income

3,295

2,626

△668

△20.3％

Profit attributable toowner of parent

2,213

1,699

△514

△23.2％ＥBＩＴＤＡ

3,849

3,428

△421

△10.9％

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

20

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

Quarterly GPM
Conslidated

23.7%

△885

23
45

23.5%
23.3%

136

23.3%

22.8%

3,226

23.6%

23.0%

23.0%

22.8%
The impact ofmaking TOKAI

2,546

22.6%

22.1%
Net sales

Gross Profit

SG&A

MarginExpenses

Other

22.8%

22.5%

STEP a subsidiary

Q3 FY2020

Parent22.0%

Q3 FY2021

Note: The following figures do not include TOKAI STEP.
Gross Profit
MarginSG&A
expenses

22.5％→22.6％
Bonuses △120 million yen
Freight and packing costs △39 million yen
Commission expenses △21 million yen

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY202121

Q3 FY2021 Consolidated Financial Results

Progress for FY2021 Forecast

Progress for FY2021 forecast (million yen)

Net sales and operating income■ Q3 FY2021 ■ Full-year forecast
Net sales
44,069Net sales

Full-year
forecast
62,000Operating income

16,053

Progress

71.1％

10,181

Operating income
2,546

Ordinary income
2,626

14,313

Progress

14,30071.2％

Full-year
forecast

Progress

3,700

68.8％

Full-year
forecast

Progress

3,800

69.1％

1,699

14,112

14,83915,117

915

970

1,203

875

Full-year
forecast

858

660

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021

Percentage of net sales and operating
income by quarter (5-year average)
Q1 - Q3 75.3％

Q4

24.7％

Profit attributable toowner of parent

15,585
14,6471,147

Gross profit(million yen)

Q1 - Q3 76.7％

Q1

Q4

Q1

23.6％

23.3％

20.7％

Net
sales

OperatingincomeFull-year
forecast

Progress

Q3

Q2

Q3

2,500

68.0％

26.3％

25.4％

29.1％

Q2

26.9％
22

Consolidated Balance Sheet [Assets](million yen)

FY2020Q3 FY2021

ChangeCurrent assets
Non-current assets

Cash and deposits

8,305

8,746

＋440

Notes and receivable –trade

13,207

12,173△1,033

Electronically recordedmonetary claims operating

1,695

2,337

＋642

Inventories

5,026

5,023

△2

672

857

＋184

Total current assets

28,90829,139＋231

Property, plant and equipment

11,312

11,489＋177

Intangible assets

5,085

4,861

△224

Investments and other assets

1,030

802

△227

Total non-current-assets

17,427

17,153△274

46,33546,292△42

Other

Total assets

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

FY2020Q3 FY2021

Change

3,333

3,293

△40

Electronically recorded
obligations – operations

8,400

7,416

△984

Breakdown Electronically recorded obligations–operations

10,006

9,471

△535

△1,606△2,055△448

Short-term loans payable

610

2,110

＋1,500

Income taxes payable

678

139

△539

Other

2,935

2,764

△170

Total current liabilities

15,95815,723△234

Non-current liabilities

1,989

1,605

△384

Total liabilities

17,94817,329△619

Shareholder’s equity

29,81930,348＋528

Accumulated other comprehensive
income△1,463△1,413

＋49

31

28

△2

Total net assets

28,38728,963＋576

Total liabilities and net assets

46,33546,292△42

Current liabilities

Notes and accounts payable – trade

Repayment before maturity

Net assets

Subscription rights to shares24

5. Q3 FY2021 Financial Results and Analysis by Segment

Q3 FY2021 Financial Results by Segment(million yen)

Q3 FY2020

Q3 FY2021

Change(%)

Full-year
forecast

Progress

Industrial
Materials
Structural
Steel
Materials
Electrical
Equipment

Net sales

26,77327,320＋2.0％

38,90070.2%

Segment
profit or loss

1,638

1,615

△1.4％

2,068

78.1％

EBITDA

1,938

2,125

+9.6％

－

－

Net sales

12,56910,742△14.5％

14,80072.6％

Segment
profit or loss

1,379

812

△41.1％

1,453

55.9％

EBITDA

1,398

832△40.5％－－Net sales

6,609

6,006

△9.1％

8,300

72.4％

Segment
profit or loss

221

140

△36.7％

209

67.2％

EBITDA

243

161△33.6％－－

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

27,32026,773

1,638

1,615

YoY
+2.0％

Q3 FY2021

9,227

8,371

8,685

8,758

9,025

672

YoY
△1.4％

Q3 FY2020

9,175

544

669
472

421

9,536

553
393

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021

Factors affecting net sales
Net sales increased by about 550 million yen YoY.
Although sales of hardware for wooden homes, secondary steel products, tarpaulins and sandbags were down due to the impact of the
COVID-19 infection, the segment achieved an increase in net sales thanks mainly to a contribution from TOKAI STEP, which became asubsidiary in February 2020.
Increased/decreased amount in net sales (million yen)Braces/ △51

Orders decreased due to projects that have been cancelled, postponed,
and reassessed.

△1,300Hardware forwooden homes/ △218Demand for detached homes and condominiums decreased due to theimpact of the COVID-19 infection and reactionary drop following theconsumption tax hike.

+2,044

Sales increased on the contribution from new subsidiary TOKAI STEP.

Products(approximate)△190

Merchandise(approximate)
TOKAI STEP

27

Segment profit or loss analysis(million yen)

Products
manufactured
in-house

△54

69
207
△479

Major increase/decrease
factors related tosubsidiaries

232

Goodwill
amortization：

1,615

Goodwill amortization incurred in Q3
206 million yen
KONDOTEC
INTERNATIONAL(THAILAND)：＋2 million yen

CHUOH GIKEN：△16 million yen

TECBUILD：△53 million yen

TOKAI STEP：＋166 million yen

Gross Profit
Margin

SG&A
Expenses

Factors
related tosubsidiaries

Q3 FY2021

Note: The following figures do not include subsidiaries.
Sales

volumeSales

Products △2 million yen Merchandise ＋235 million yen

Gross

Products 28.5％ → 28.4％

ProfitMerchandise 21.3％ → 22.3％ (including imported

Marginmerchandise and domestically sourced merchandise)

SG&A
Expenses

27.0%

28.6%
23.4%

Bonuses △36 million yen Vehicle expenses △8 million yen
Freight and packing costs △7 million yen
Travel and transportation expenses △3 million yen

24.8%

26.2%

19.3%

27.6%

27.8%

27.3%

29.1%

29.2%

29.8%

28.8%

30.7%

19.5%

19.3%
19.0%

19.1%

19.1%

18.6%

22.8%

Total
products andmerchandise

price

Products △25 million yen Merchandise △453 million yen

Domesticallysourcedmerchandise

Q3 FY2020 Sales volume Sales price

29.9%△143 million yen

Importedmerchandise

1,638

Quarterly GPM

22.2%

22.7%

23.2%

23.6%

22.0%

21.8%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY202128

Structural Steel Materials
Net sales and segment profit or loss

(million yen) Quarterly YoY
Net sales

4,412

Segment profit or loss

12,56910,742

YoY

3,859

3,835
497

△14.5％

1,379

4,322
3,467

482

3,658

3,616

399
812

338

YoY

240

△41.1％Q3 FY2020

Q3 FY2021

311

260

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021

Factors affecting net sales
Net sales decreased by about 1,830 million yen YoY.
In addition to the originally planned down period accompanying the Tokyo Olympics and Paralympics Games, net sales of steel frame
materials, high strength bolts and braces were severely affected by the COVID-19 infection.
Increased/decreased amount in net sales (million yen)
Products(approximate)△500

Merchandise(approximate)△1,330Braces/ △297

Orders decreased due to projects that have been cancelled, postponed,
and reassessed.

Steel frame
materials/ △552The number of properties decreased due to construction delays caused by
the COVID-19 infection.

29

Segment profit or loss analysis(million yen)

Quarterly GPM
Products
manufactured
in-house

△339
△113

30.9%
28.6%

812

33.5%

20.8%

Gross
ProfitMargin
SG&A
Expenses

Q3 FY2021

35.7%

20.0%

20.1%

35.5%

20.7%

19.3%

18.8%

18.3%

Products △78 million yen Merchandise △260 million yen
25.5%

Products △81 million yen Merchandise △32 million yen
Products 31.8％ → 30.2％
Merchandise 22.1％ → 20.8％ (including imported
merchandise and domestically sourced merchandise)
Freight and packing costs △37 million yen

Total
products andmerchandise

Sales
price

SG&A
Expenses

35.4%

35.8%

34.2%

Domestically
Sourcedmerchandise

Sales
volumeGross Profit
Margin

30.7%

36.9%

1,379

Q3 FY2020 Sales volume Sales price

30.7%
29.3%

34
Importedmerchandise

△149

32.3%

32.2%

25.0%

25.1%
24.1%

24.0%

23.9%

24.0%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY202130

Electrical Equipment
Net sales and segment profit or loss

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

6,609

6,006

221

△9.1％

2,465
2,107

2,035

△36.7％Q3 FY2021

63

52

2,155

2,101
1,886

106

YoY
140

Q3 FY2020

YoY

1,963

69

59

44
26

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021

Factors affecting net sales
Net sales decreased by about 600 million yen YoY.
Net sales were down due to the impact of delays in merchandise supply, delays in construction projects, and a drop in capex demand
despite efforts to concentrate on selling high-end air conditioners in light of increased working from home and the government’s special
cash payments.
Increased/decreased amount in net sales (million yen)
Electrical wires△180

Sales decreased due to the impact of the COVID-19 infection.

Lighting fixtures△131

The number of projects decreased due to the impact of the COVID-19 infection and drop in the numberof orders after the consumption tax hike.

31

Segment profit or loss analysis(million yen)

Gross Profit Margin

△98
21
221

Quarterly GPM and number of projects

△4

17.5%

16.6%

16.8%

17.4%

16.6%

16.8%

16.6%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021140

Gross Profit
Margin

SG&A
Expenses

Net sales

Gross Profit
Margin

16.9％ → 16.9％
Salaries △14 million yen
Bonuses △6 million yen

SG&A Expenses

Q3 FY2021

Number of project※

Q3 FY2020

15

14

13
9
7

8

7

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2020

FY2020

FY2020

FY2020

FY2021

FY2021

FY2021

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

32

6. Response to ESG Issues

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

Materiality
 Provision of optimal products
and merchandise forenvironment measures

Environment Business activities paying
attention to the environment

Relevant SDGs

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

SocialGovernance

Quality control of products and merchandise
Stance for security and safety

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

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

Engagement with shareholders

 Appropriate information
disclosure and security

Stance for information disclosure Co-existence with local
communities

Operating site opening plan Safety measures and workstyle reform

Risk control for disasters and others

Information security measures

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

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

Compliance Basic Policy

34

Initiatives
 We have established our ESG basic policy and link it to sustainable corporate growth by incorporating it in the management strategy.

NEWS

January 2021 Establishment of SDGs promotion department

Quality Assurance Department changed the name to SDGs Promotion Department to work actively towards
achieving the SDGs targets. In addition to auditing Quality Assurance by formerly Quality Assurance Department,
SDGs Promotion Department will explore, research and design initiatives to facilitate achieving the SDGs targets.
Current Specific Initiatives
Cost Reduction and Risk Management
 Implementation of energy-saving measures

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

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

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

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

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

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

 Prevention of the manifestation of potential costs by theGovernancedevelopment governance system Introduction of the performance-based stock option
 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 Audit & Supervisory Committee

Improve Productivity and Profitability

Sales Growth and Business Expansion

Sustainable Growth35

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

Business activities paying attention
to the environment

 Green sweeper

 Initiatives for environmental protection and energy-saving

This is a biodegradable high-performance cleaner,water-soluble and phosphate-free, satisfying
everything from cleaning power, environment to cost.
It does not have a negative effect on metals, rubbers
and plastics, either.

 ISO14001 certification for Kanto Factory
We obtained ISO14001 certification for Kanto Factory in March 2020
(already obtained for Shiga Factory in September 2018. We aretargeting certification for two other factories). We will continue to workon business activities with full consideration for environmental
preservation.
＜Certification＞＜Annex on certification＞

 Hand soap Eco-pro
With the heightened movements especially in the
U.S. and Europe to eliminate microbeads (plastic
particles in facial cleaners, etc.), this is constituted ofhighly biodegradable and environment-friendly
natural scrubs originating from wood.

 LED installations
 Oil hunter
This is an eco-mark certified oil absorption mat using
recycled materials. It is used for the disposing of oil at
the time of marine pollution caused by oil spills andat factories which use oil.

In 2015, we completed installing LED lighting in factories and are
currently in the process of installing LED lighting in our operating sites.
Having completed installation in operating sites we own, we willfurther proceed with LED installation in operating sites we lease. These
LED installations are being carried out in cooperation with Sanwa
Denzai Co., Ltd., our subsidiary and wholesaler of electric equipment.

36

Initiatives: Social
SocialHuman resource development and diversity
 We aim to create a working environment in which employees with diverse backgrounds fully demonstrate their respective abilities and are
motivated to work.

 Male-female ratio of new employees with main career track
Nationality ofinternational student(other than Japan)

Year ofemployment

Male

FemaleTotal

April-202011
persons7
persons18
persons0
personApril-201919
persons4
persons23
persons

Brazil0personApril-201812
persons6
persons18
persons

Korea

2
persons

April-20178persons10
persons18
persons

April-20169persons9
persons

Number ofturnover (※)

3
persons6
persons18
persons(employee who resigned
due to marriage :2 persons)(※ As of end March 2020)

 List of qualified personnel
Qualification

First and Second-class architect

Number ofqualifiedpersonnel
3 persons Benefit program Number of employees taking childcare leave
Those who tookchildcare leave during
the period

Those who newly tookchildcare leave during
the period

Those who returned towork during the period

2019.4.1~2
020.3.31

3 persons

4 persons

4 persons2018.4.1~2
019.3.31

5 persons

2 persons

3 persons2017.4.1~2
018.3.31

5 persons

2 persons

1 person(As of end March 2020)

 Incentive program for employees and directors•••

Performance-based bonus system for employees
Employee stock ownership plan
Board Benefit Trust (performance-based stock incentive system)

Introduction of athlete employees aspiring

Number ofqualifiedpersonnel

Qualification

Crane operation skill

395 persons

TOPIC to participate in the Tokyo Olympic GamesWe have been supporting its employees in competitive sports.

Athlete employee
NameFirst and Second-class civil engineering
works execution managing engineer

4 personsSlinging work skill

489 persons

First and Second-class building
construction managing engineer

7 personsForklift operation skill

484 persons

Class B Group 4 hazardous materials
engineer

61 persons

Certified public accountant

2 persons(As of end March 2020)

Competitive
category(Left) Kiho Kuze

Javelin(Right) Mika Yamamoto

Discus37

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

A performance-based stock compensation plan, “Board Benefit Trust (BBT)”, was introduced forthe purpose of increasing incentives for Directors (excluding Outside Directors and Directors
who are Audit & Supervisory Committee Members) and Executive Officers of the Company tocontribute to the improvement of medium to long term earning and corporate value.

Transition to a Company with an
Audit & Supervisory Committee

We work to enhance corporate governance and corporate value by increasing soundness andtransparency of management. Furthermore, we grant voting rights for the Board of Directors to
Directors who are Audit & Supervisory Committee with the aim of strengthening supervisory
functions.

Formulation and announcement ofmanagement strategy andmanagement plan

We 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 andstrategic investment) aimed at achieving targets for net sales, operating income, ROE,
and DOE on our website and other platforms. In addition, we explain concretemeasures for achieving its targets at financial results briefings. We review its mediumterm plan each year in light of earnings and anticipated social and economic trends. In
cases when we revise plans, we explain the changes and the reasons for them atfinancial results briefings or shareholder meetings.

38

7. Growth Strategies

Toward 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•••

Medium-term management
plan (FY2021–FY2023)

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.

0
1953

1963

1973

1983

1993

2003

2013

40

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

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

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

Cultivation of new customers
Net sales (million yen)

New customers

2,581

2,428

FY2020Net sales (million yen)
1,885

1,746

2,093

2,151

Q3 FY2020

Q3 FY2021

Cultivation of dormant customers

Q3 FY2020

Q3 FY2021

KONDO furring bolts

133

146

Hook bolts
with square shank

139

145

KT safely harness

17

14

CM lever hoist

15

9Net sales (million yen)
1,195
922

FY2020Q3 FY2020

1,059

Q3 FY2021

41

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

Cultivation of distribution routes

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

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

Net sales (million yen)Home improvement centers

839
629
340

FY2020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)
1,182
906

FY2020Q3 FY2020

620
278

276

Q3 FY2020

Q3 FY2021

 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)
974

749

Q3 FY2021

Railroads

FY2020697

665

Q3 FY2020

Q3 FY2021

42

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

Expanding sales network:
93 operating sites (As of end December 2020)
Industrial Material

63

Structural Steel Materials

17

Electrical Equipment

13＜Operating sites＞

History of operating site network expansion

2006

Akita Office, Fukushima Office

2012

Tohoku Office2015

Morioka Office2016

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

Sanwa Denzai Co., Ltd.
Aihoku Office

2018

Okayama Office2019

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

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

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

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

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

4,620
3,577

12/3

4,857

5,141

5,132 5,112

5,461

4,662

3,877

13/3

3,778

14/3

15/3

16/3

17/3

18/3

19/3

20/3

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

21/3
(Q3)

Related merchandise
Flexible container bags Tarpaulins, sandbags etc.

Net, Sheet etc.

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

44

Periphery-Strengthening Growth

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

Subsidiary in Thailand
Company name

KONDOTEC INTERNATIONAL (THAILAND) CO.,LTD.

Location

Bangkok, Thailand

Business areas

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

Paid-in capital
Date establishedNet sales of overseas business Q3 FY2021
FY2021
forecast(million yen)

Q3 FY2020

Q3 FY2021

International
Sales Division

30

15

48

102 million baht (approximately 316 million yen)

Local Subsidiaryin Thailand

218

129

293

November 1, 2012

Total

248

145

341

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

Percentage of sales by country Q3 FY2021

Expand business areasin the ASEAN region

ASEAN

90％

East
Asia/China

8％

Near andMiddle East

1％

Other
countries

1％

Thailand37％

Indonesia

20％

Vietnam

19％

Singapore

14％

45

Toward Accelerating Organic Growth Strategies and Periphery-Strengthening Growth Strategies

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

Four perspective in pursuing M&A
Neighboring industry

Deepening of business

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

Reinforcement of materials that
support buildings and structures
Improving productivity

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

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

1. Neighboring industry

2. Deepening of business

3. Expansion of business area

4. Amplifying sales patterns

Pursue M&A withcompanies associatedwith industries other thanthe construction industry
and promote businessexpansion.
Actual case：
Sanwa Deazai Co., Ltd.

Pursue M&A with material
manufactures, etc.
Actual case：
CHUOH GIKEN Co., Ltd.
TECBUILD CO., LTD.
TOKAI STEP CO., LTD.
FUKOKU, Ltd.
NEW！

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

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

46

8. Shareholder Return

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

Transition in dividends
Ordinary dividend
Commemorarive dividend

Transition in dividends
31yen

Increase in ordinary dividend(forecast)

29yen

Since initial listing: No decrease in dividends
Plan to increase dividends
for the 10 th consecutive period

26yen
24yen
23yen
22yen

Performance indicators for dividend
ROE

Dividend
payout ratio

DOE

10.4％

27.0％

2.8％

(FY2020)

2.9％

～3.8％

15.5yen
14yen
13.5yen

6yen
5yen 5.5yen

2003

Dividend yield including
shareholder incentive plan

Shareholder incentive plan
13yen

1999

Dividend yield※

20yen

11yen
10yen

1995

Closing price on January 29: 1,056 yen

2007

2011

2015

2019

Number of shares held

Shareholder incentive

100 or more shares, fewer
than 1,000 shares

2 kg-rice certificate

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

5 kg-rice certificate

10,000 or more shares

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

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

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

48

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

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 3,816 listed companies …
ROE

806th

Profitattributable toowner of parent

1,030thOrdinary income

1,108th

Net assets

1,414thMarketcapitalization

1,363rd

PBR

1,787thPER

2,588th

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

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 January 29

1,056 yen
PER： 11.1 PBR：0.99

Source: Mizuho Securities Co., Ltd. (As of June 30, 2020)

EPS：95.46 yen (FY2021 forecast)
BPS：1,071.09 yen (As of end March 2020)

49

9. Highlights of Results

Highlights of Consolidated Financial Results

44,069Net sales(million yen)

Progressmillion yen 71.1％

2,546

Operating income(million yen)

Progressmillion yen 68.8％

62,00060,59957,82847,991 49,168

35,54838,74550,21150,4103,907

52,811
3,271

44,06941,153

3,303

3,441

3,516

4,085
3,700

3,537

2,664

2,546

1,926
1,275

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

21/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

(Q3) forecast

Ordinary income(million yen)

2,626Progressmillion yen

4,023
3,368

3,408

3,544

3,614

69.1％

Profit attributable toowner of parent(million yen)

1,699

Progressmillion yen 68.0％
2,748

3,800

2,497

1,992
2,754

21/3

(Q3) forecast

4,177

3,655

21/3

2,626

2,098

2,875

2,523

2,500

2,239

1,699

1,605

2,019
1,046

1,376

11/3

834

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

21/3

(Q3) forecast

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

21/3

(Q3) forecast

51

Highlights of Consolidated Financial Results

28,963

Net assets (million yen)million yen

ROE (％)

Target28,387 28,963

11.1

26,756

10.8

10.9

10

％ or higher

11.4
10.7

10.7

10.0

24,74522,71918,783

20,231

10％ or higher

21,102
7.1

16,99014,381

10.4

15,097

5.8
4.7

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

(Q3)

Dividend per share (yen)31.00

yen (forecast)

21/3
forecast

DOE (％)

Target2.5％ or higher

31.00
29.00
26.00
22.00

23.00

24.00

2.8

20.00

13.00

13.00

13.50

10/3

11/3

12/3

14.00

13/3

2.4

2.3

2.4

2.3

2.9

2.8

2.7

2.7

2.4

2.5％ or higher

15.50

14/3

2.8

15/3

16/3

17/3

18/3

19/3

20/3

21/3
forecast

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3
forecast

52

Highlights of Consolidated Financial Results
11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3 Q3 21/3 (forecast)

Net sales

35,54838,745

41,15347,991

49,16850,21150,41052,811

57,82860,59944,06962,000Operating profit

1,275

1,926

2,664

3,271

3,303

3,441

3,516

3,537

3,907

4,085

2,546

3,700

Ordinary income

1,376

2,019

2,754

3,368

3,408

3,544

3,614

3,655

4,023

4,177

2,626

3,800

834

1,046

1,605

1,992

2,098

2,239

2,497

2,523

2,748

2,875

1,699

2,500

2,025

2,492

3,178

3,846

3,948

3,910

4,052

4,079

4,425

4,916

3,428

-

Capital investment

240

180

566

679

403

842

695

423

981

917

-

-

Depreciation

457

428

390

418

449

405

438

423

404

697

-

-

Total assets

26,19428,40331,192

34,48135,186

34,64536,52439,313

43,82046,33546,292-

Net assets

14,381

15,097

16,99018,783

20,231

21,102

22,71924,74526,75628,38728,963

-

900

705

808

806

636

508

501

500

853

1,106

-

-

Cash flows from operating activities

1,219

1,454

2,077

1,887

1,818

1,945

2,737

2,429

2,699

4,385

-

-

Cash flows from investing activities△ 320 △ 1,511

△ 494

△ 660

828

△ 829

△ 646

△ 506 △ 1,551△ 5,205--

Cash flows from financing activities

△ 736

△ 550

426

△ 389

△ 699 △ 1,092 △ 1,032

△ 703

△ 915

△ 992

-

-

Cash and cash equivalents, end of year

3,396

2,790

4,798

5,636

7,626

7,594

8,660

9,893

10,133

8,305

8,746

-

Profit attributable to owners of parent
per share

32.19

40.36

60.77

72.13

75.91

81.01

93.29

94.25

102.65107.46

64.83

95.46

Net assets per share

554.79582.41615.12679.27730.49774.18846.59922.62996.99

1,071.09--

Dividend per share

13.00

13.50

14.00

15.50

20.00

22.00

23.00

24.00

26.00

29.00

-

31.00

3.6

5.0

6.5

6.8

6.7

6.9

7.0

6.7

6.8

6.7

5.8

6.0

Result of Operations (million yen)

Profit attributable to owner of parent

EBITDA

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

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

5.8

7.1

10.0

11.1

10.8

10.9

11.4

10.7

10.7

10.4

Equity ratio (%)

54.9

53.2

54.5

54.4

57.4

60.8

62.1

62.8

61.0

61.2

DOE (%)

2.3

2.4

2.3

2.4

2.8

2.9

2.8

2.7

2.7

2.8

- 10％ or higher
62.5-- 2.5％or higher

Stock Price Index
Stock closing price (yen)

353

625

606

718

786

834

933

939

1,006

929

1,131

-

Price earnings ratio (times)

11.0

15.5

10.0

10.0

10.4

10.3

10.0

10.0

9.8

8.6

-

-

53

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

15,665

11,767Q1

12,66013,05812,924

12,433

Q2

Q3

Q4

Q1

13,22014,050

Q2

17/3

Q3

13,108Q4

13,613Q1

14,350

Q2

18/3

Q3

14,19914,313Q4Q115,585

Q2

19/3

Q3

14,647

Q4

14,112

Q1

14,83915,117

Q2

Q3

20/3

Q4

21/3

Operating income (million yen)
1,268
1,147
995

970

911

987
891

875

Q2

Q3

17/3

Q4

Q1

915

858

970

760

721

672

Q1

960

944

876

1,203

660

Q2

Q3

18/3

Q4

Q1

Q2

Q3

19/3

Q4

Q1

Q2

Q3

20/3

Q4

Q1

Q2

Q3

21/3

Q4

54

Quarterly Highlights
Industrial Materials
Net sales (million yen)

8,919
7,083

7,297

Q1

Q2

7,757

7,694

Q3

Q4

8,052
7,228

7,373

Q1

Q2

17/3

Q3

7,607

7,664

Q4

Q1

7,968

Q2

18/3

7,907

Q3

Q4

9,175

9,227

Q2

Q3

8,371

Q1

19/3

8,685

8,758

9,025

Q4

Q1

Q2

20/3

9,536

Q3

Q4

21/3

Segment profit or loss (million yen)
653

672

640

597

562

541
469

505

532
474

429

669
553

544

509

472
421

393

329

Q1

Q2

Q3
17/3

Q4

Q1

Q2

Q3
18/3

Q4

Q1

Q2

Q3
19/3

Q4

Q1

Q2

Q3
20/3

Q4

Q1

Q2

Q3
21/3

Q4

55

Quarterly Highlights
Structural Steel Materials
Net sales (million yen)

4,597
3,720
3,349

3,330

Q2

Q3

2,720

Q1

3,032

Q4

3,991

Q2

17/3

4,412
4,019

4,322
3,859

3,835

3,467

3,420

3,277

Q1

3,913

4,225

Q3

Q4

Q1

Q2

18/3

Q3

Q4

Q1

Q2

19/3

Q3

Q4

Q1

3,658

3,616

Q2

Q3

20/3

Q4

21/3

Segment profit or loss (million yen)
552
497

378
316

298

388

369

416

482

399
360

338

311

302

287
247

260

240

189

Q1

Q2

Q3

17/3

Q4

Q1

Q2

Q3

18/3

Q4

Q1

Q2

Q3

19/3

Q4

Q1

Q2

Q3

20/3

Q4

Q1

Q2

Q3

21/3

Q4

56

Quarterly Highlights
Electrical Equipment
Net sales (million yen)
2,465
2,196
1,963

2,013

1,970

Q1

Q2

Q3

2,125
1,927

Q4

Q1

2,005

Q2

17/3

Q3

2,080

Q4

2,035

Q1

2,156

Q2

18/3

2,148

Q3

2,272

Q4

2,107

Q1

Q2

19/3

2,035

2,101

Q3

Q4

2,155
1,963

1,886

Q1

Q2

20/3

Q3

Q4

21/3

Segment profit or loss (million yen)

89

86

63
52

45
28

16

Q1

72

66

58

53

106

97

69
59
44

26

26

7

Q2

Q3

17/3

Q4

Q1

Q2

Q3

18/3

Q4

Q1

Q2

Q3

19/3

Q4

Q1

Q2

Q3

20/3

Q4

Q1

Q2

Q3

21/3

Q4

57

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 release. Actual results may differ materially from theseforward-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