Creating a safe, comfortable and sustainable society for the future

Kawada Technologies, Inc. (Stock Code: 3443)

Financial Summary for
FY2023-03(April 1, 2022 through March 31, 2023)

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

Kawada Group celebrated the 100th-year anniversary since its foundation in May 2022.
We have and will always contribute to the society through world-class technologies and quality.
2023年5月19日

Table of contents

1. Results for FY202303
2. Forecasts for FY202403-1-Results for FY202303-2-FY202303 Highlights(Million Yen)

Sales Revenues
115,545

103,760

118,086

Operating Profit *1
5,565

4.8%
2021/32022/32023/32021/3

6,412

6,340
5,025

6.2%
4.3%
2022/3Net Income *1

2023/35.5%

2021/35,176

5.0%
2022/3

Newly-Received Orders

Orders Carried-Forward

CFO

118,978 119,584 127,657

134,693

146,334 154,364

20,391*2*22022/32023/32021/3*1 Line graphs designate ratio to Sales Revenues

10.1%

2022/32023/32021/32022/3

7.6%

5.8%

3.6%
2023/32021/32022/32023/3Equity ratio

44.8%△ 2,5472021/34,231

ROE△ 9,6732023/32021/353.2%

2022/346.6%

2023/3*2 Internal Sales between business segments are NOT adjusted.
-3-P/L Summary
Although sales increased, net income was in decline for three consecutive years
Our efforts to reducing costs and acquiring contract alterations led to profits exceeding
the original forecast（Million Yen）
Result of

FY202203

Forecast(*) of

FY202303

Result ofFY202303

YoY(Result to Result)

Sales Revenues

103,760

116,000

118,08613.8%

Gross Profit

16,80915,00015,626△7.0%

Operating Profit

6,412

4,000

5,025

△21.6%

7,689

4,600

6,298

△18.1%

5,176

2,800

4,231

△18.3%

Ordinary Profit
Shares of Profit ofEntities Accounted forUsing Equity Method

Net income

Attributable to owners ofKawada

883

1,217

1,378

13.2%

* The original forecast announced at 12, May 2022-4-

Sales Revenues and Operating Profit (by segment)
Architecture retrieved its sales volume, but still in red in operating profit
In Solution, sales and operating profit maintained good growth
Sales RevenuesResult ofFY202203

SteelStructure

Forecast(*)
ofResult of(Million Yen)

Operating Profit
YoY

Result of

FY202303

FY202303(Resultto Result)FY
20220350,03357,00056,071

12.1%

Civil
Engineering

33,03731,00035,035

Architecture

9,607

16,000

Solution

5,603

Other

7,159

Forecast(*)
ofResult ofYoY

FY202303

FY202303(Resultto Result)

5,425

3,100

4,097

△24.5%

6.0%

2,380

1,500

2,067

△13.2%

14,158

47.4%

56600

△423-

6,500

6,371

13.7%

1,252

1,400

2,047

63.5%

8,000

7,989

11.6%

△2970

△162-Internal Sales between business segments are NOT adjusted.

* The original forecast announced at 12, May 2022
-5-B/S Summary
Operating assets and liabilities surged with the projects’ size increasing and term lengthening

FY202303

FY202203
Notes and Account Receivables +20,527

Current Assets
66,482

Liabilities
61,415

Fixed assets
66,854

Net Assets
71,921

Total assets/liabilities and net assets: 133,337（Million Yen）

Notes and Account Payables +10,331
Short-Term Borrowings+14,663

Current Assets
92,956

Liabilities
85,460

Fixed Assets
69,201Net Assets
76,697Total assets/liabilities andnet assets: 162,158 (+28,821)

Shareholders’ Equity+3,553-6-

C/S Summary
CFO went negative due to rapid increase in operating assets
FY202303

FY202203
CFOCFI
CFF(Million Yen)

20,391
CFO was very much in plus forcollection of piled-up operatingreceivables, making WC low and
CFF deeply negative

FCF △11,178

12,213△ 1,504△ 1,948

FCF 18,442△ 9,673△ 15,811

A few project completions in theFY caused increase in operatingreceivables, making CFO decrease
and CFF increase-7-Orders State Summary
With numerous newly-received orders, carried-forward orders reached thehighest level everFY202303

FY202203
Newly-Received

To FY202303

119,584

146,334

SC 59,006
CE 31,405
AR 15,715
SO 6,276
OT 7,181
From FY202103

132,191

SC 68,896
CE 48,888
AR 11,857
SO 2,060
OT 487SC 77,869
CE 47,256
AR 17,965
SO 2,734
OT 508

Sales

105,441

SC 50,033
CE 33,037
AR 9,607
SO 5,603
OT 7,159

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

Newly-Received

127,657

SC 63,192
CE 36,879
AR 12,719
SO 6,992
OT 7,873

From FY202203

146,334

SC 77,869
CE 47,256
AR 17,965
SO 2,734
OT 508＋8,073
SC and CE
made up for
decrease in AR(Million Yen)To FY202403

154,364

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

Sales

119,626

SC 56,071
CE 35,035
AR 14,158
SO 6,371
OT 7,989＋8,030The highest
levelInternal Sales between business segments are NOT adjusted.
-8-Forecasts for FY202403-9-Orders State Summary (Forecast)Continue to maintain large volume with good new orders and plenty ofcarried-forward orders
FY202303
Newly-Received

FY202403 Forecast
To FY202403

127,657

154,364

SC 63,192
CE 36,879
AR 12,719
SO 6,992
OT 7,873

From FY202203

146,334

SC 77,869
CE 47,256
AR 17,965
SO 2,734
OT 508SC 84,990
CE 49,100
AR 16,526
SO 3,355
OT 391

Sales

119,626

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

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

Newly-Received

To FY202503

125,500

144,864

SC 54,500
CE 36,000
AR 18,500
SO 7,500
OT 9,000

From FY202303

154,364

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

SC 75,490
CE 50,100
AR 15,026
SO 3,855
OT 391

Sales135,000

SC 64,000
CE 35,000
AR 20,000
SO 7,000
OT 9,000Internal Sales between business segments are NOT adjusted.
- 10 -

P/L Summary (Forecast)
The highest sales are expected, yet profits to decrease at the moment(Million Yen)FY202303

FY202403(Forecast)

YoY

Sales Revenues

118,086

133,000

12.6%

Gross Profit

15,626

15,600△0.2%

Operating Profit

5,025

4,600

△8.5%

6,298

5,100

△19.0%

4,2313,900△7.8%

Ordinary Profit
Shares of Profit ofEntities Accounted for
Using Equity Method

Net income

Attributable to owners ofKawada

1,378

900

△34.7%- 11 -Sales Revenues and Operating profits (Forecast)With unclear outlook for contract alterations, profits are expected to decreasein Steel Construction and Civil Engineering(Million Yen)
Sales Revenues
FY202303

FY202403(Forecast)

SteelConstruction

56,07164,000CivilEngineering

35,035

Architecture

Operating Profits
FY202303

FY202403(Forecast)

14.1%

4,097

3,000

△26.8%

35,000

△0.1%

2,067

1,750

△15.3%

14,15820,00041.3%△423150-Solution

6,371

7,000

9.9%

2,047

2,350

14.8%

Other

7,989

9,000

12.7%

△162△150-

YoY

YoY

Internal Sales between business segments are NOT adjusted.
- 12 -

<Steel Construction>

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

59,00664,00063,19256,071

Sales

64,000Operating Profit (margin) 3,000(4.7%)

Operating profit margin(10.8%)

Steel Bridge Business(7.3%)(4.7%)

Operating profit

5,425

2022/34,097

2023/3

Newly-Received Order 54,500

Sales Revenue54,500

50,033

FY202403 (Forecast)

3,000

2024/3
Forecast

While new projects are expected todiminish gradually in the long term,renewal/maintenance projects ofaging bridges are in rapid increaseat present

Architectural Steel Business

Expects to continue to receive
large projects such asredevelopments in metropolitan
areas, construction of datacenters,semiconductor plants, etc.
- 13 -<Civil Engineering>

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

36,879Sales

31,40533,03735,03536,00035,00035,000Operating Profit (margin) 1,750(5.0%)

Operating profit margin(7.2%)(5.9%)(5.0%)

Operating profit

2022/3

Newly-Received Order 36,000

Sales Revenue

Newly-Received order

2,380

FY202403 (Forecast)

2,067

2023/31,750

2024/3
Forecast

Becoming harder to receive
projects solely as projects’
increasing in size, we aim toutilize methods such as
creating a joint-venture
We will keep stable level ofsales and profits, also striving
for more profit efficiency- 14 -

<Architecture>

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

20,00018,500

Newly-Received order

15,71514,158
12,719

Sales

9,607

Operating profit margin(0.8%)(0.6%)△ 423

2022/356

Operating profit

2023/32024/3 150
Forecast

FY202403 (Forecast)
Newly-received Order 18,500
Sales revenue
20,000Operating Profit (margin) 150(0.8%)
With our Kawada Building
System, we will strive to makethe best use of large demandin distribution warehousemarketDue to completion of someless-profitable projects inhand, we expect to be goingback into black this FY(△3.0%)- 15 -

<Solution>

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

7,500

6,992

6,276 Sales
5,603

6,371(32.1%)

7,000(33.6%)(22.3%)

Software-related Business

Operating profit margin

Operating profit

FY202403(Forecast)
Newly-Received Order 7,500
Sales Revenue
7,000
Operating Profit (margin) 2,350(33.6%)
Software business grows as MLIT(*)
promotes BIM/CIM

2,047

2,350

1,252

Bridge design business also grows
as renewal/maintenance projects ofaging bridges increase

Robotics-related Business
2022/32023/3* Ministry of Land, Infrastructure, Transport and Tourism

2024/3
Forecast

Still straggles to make a profit.
For production has been stumblingfor shortage of semiconductors, bothorders and sales show little growth- 16 -

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

- Contact ir.kti@kawada.jp- 17 -