Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 10, 2022
Company name:YAHAGI CONSTRUCTION CO., LTD.

Stock exchange listing: Tokyo, Nagoya
Stock code:
1870
URL
Representative:
Contact:

https://www.yahagi.co.jp/

President and Director
keiri@yahagi.co.jp

Mitsuhiro TakayanagiScheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 29, 2022
June 29, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 8, 2022
Yes

Holding of financial results meeting:No(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2022
93,090(12.7)
6,169(16.2)
6,174 (17.1)
4,842
47.1
Year ended March 31, 2021
106,615
18.3
7,362
(5.2)
7,445(4.9)
3,292(36.2)
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%
–
8.6
5.0
6.6
–
6.2
6.3
6.9

Diluted earnings pershare

Earnings per share
Yen
112.1875.86

Year ended March 31, 2022Year ended March 31, 2021
(2) Consolidated financial position

Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
116,423
129,837

Millions of yen
57,532
54,639Cash flows fromoperating activities
Millions of yen
15,841(6,757)

Cash flows frominvesting activities
Millions of yen(1,549)(220)

Net assets per share%
49.4
42.1

Yen
1,338.10
1,258.90(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(14,351)
21,891
15,356
21,951

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

%

––

17.00
17.00

––

17.00
21.00

34.00
38.00

1,475
1,649

44.8
33.9

2.82.9–

19.00

–

19.00

38.00

139.4

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Net sales
Millions of yen
Six months ending
September 30, 2022
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen

41,500(11.4)

1,800(17.6)

1,800(18.6)

1,200(23.9)

27.91

107,000

14.9

6,000(2.7)

6,000(2.8)

4,150(14.3)

96.52

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

44,607,457 shares As of March 31, 2021

44,607,457 shares

Number of treasury shares at the end of the period
As of March 31, 2022

1,612,091 shares As of March 31, 2021

1,204,864 shares

43,164,454 shares Year ended March 31, 2021

43,402,641 shares

Average number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed

22,09122,01149,30632,351

345

457

3,899
15,3162,534
19,884Merchandise and finished goods
Raw materials and supplies

18678

25
452

Other
Allowance for doubtful accounts

3,699
(87)

2,804
(86)

Total current assets

95,26880,435

Buildings and structures
Machinery, vehicles, tools, furniture and fixtures

13,931
3,092

14,661
3,345

Land
Leased assets

17,87466

19,091103

Construction in progress
Accumulated depreciation–(9,352)

55(9,985)

Total property, plant and equipment

25,61327,272Intangible assets
Investments and other assets

392

390

Investment securities
Retirement benefit asset

5,661
236

5,298
244

Deferred tax assets
Other

1,726
986

1,844
987

construction contracts and other
Electronically recorded monetary claims - operating
Costs on construction contracts in progress
Real estate for saleNon-current assets
Property, plant and equipment

Allowance for doubtful accounts

(48)

(49)

Total investments and other assets

8,562

8,326

Total non-current assets
Total assets

334,568

35,988129,837

116,423

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Electronically recorded obligations - operating

11,236

6,758

5,172

3,635

Short-term borrowings
Income taxes payable

37,740
1,302

25,400
1,072

Advances received on construction contracts in progress
Provision for warranties for completed construction

3,716
448

4,780
441

Provision for loss on construction contracts
Provision for bonuses for directors (and other officers)

11113070

Other

1,723

2,988

Total current liabilities

61,46445,148Long-term borrowings
Deferred tax liabilities for land revaluation

5,200
221

5,000
221

Retirement benefit liability
Asset retirement obligations

4,749
351

4,864
353

Provision for share-based compensation
Other

–
3,210

49
3,252

Total non-current liabilities

13,733

13,74375,19758,891

Shareholders' equity
Share capital

6,808

6,808

Capital surplus
Retained earnings

7,244
45,783

7,244
49,124

Treasury shares

(576)

(897)

59,25962,2791,327(5,882)

1,224(5,882)

(64)

(90)

(4,619)(4,747)

Non-current liabilities

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

454,639

57,532

129,837

116,423

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales
Net sales of completed construction contracts
Net sales in real estate business and other

92,406
14,20878,99314,096

Total net sales

106,615

93,090

Cost of sales
Cost of sales of completed construction contracts

80,716

68,613

Cost of sales in real estate business and other

10,199

9,541

Total cost of sales

90,91578,155Gross profit on completed construction contracts
Gross profit on real estate business and other

11,6894,009

10,3794,555

Total gross profit

15,69914,935

Selling, general and administrative expenses

8,336

8,765

Operating profit

7,362

6,169

5114

0105

Gross profit

Non-operating income
Interest income
Dividend income
Other8951

Total non-operating income

209

157

Interest expenses
Miscellaneous expenses

111
15127
24

Total non-operating expenses

126

152

7,445

6,174

Gain on sale of non-current assets
Gain on sale of investment securities

5–

3899

Other

61–

Total extraordinary income

67903

Loss on sale of non-current assets
Loss on retirement of non-current assets

034–
26

Loss on valuation of investment securitiesLoss on sale of investment securities

–
2430–

Impairment losses
Other

1,817
5–
1

Total extraordinary losses

1,882

58

Profit before income taxes

5,630

7,019

Income taxes - current
Income taxes - deferred

2,385(41)2,176
0Total income taxes

2,344

2,177

Profit

3,286

4,842

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5(6)

–

3,292

4,842

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
3,286

4,842

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

724
143

(102)
(25)

Total other comprehensive income

868

(128)

4,154

4,714

4,161

4,714

(6)

–

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders'equityTreasury shares

6,808

7,244

44,052(576)

57,528

6,808

7,244

44,052(576)

57,528Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Dividends of surplus(1,519)(1,519)Profit attributable to ownersof parent

3,292

3,292

Purchase of treasury shares

(0)

Other

(0)

(42)

(42)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

1,730

(0)

1,730

6,808

7,244

45,783(576)

59,259

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

Revaluation
reserve for landRemeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

602(5,882)(208)(5,487)

6

52,046602(5,882)(208)(5,487)

6

52,046

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Dividends of surplus(1,519)

Profit attributable to ownersof parent

3,292

Purchase of treasury shares(0)

Other(42)Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

724

143

868

(6)

862

724

–

143

868

(6)

2,592

1,327

(5,882)(64)(4,619)–54,639

7

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,808

Retained earnings

7,244

45,783Cumulative effects ofchanges in accounting
policies
Restated balanceTotal shareholders'equityTreasury shares(576)

59,259

(25)
6,808

7,244

(25)

45,757(576)

59,233

Changes during period
Dividends of surplus(1,475)(1,475)

Profit attributable to ownersof parent

4,842

4,842

Purchase of treasury shares

(320)

(320)

Other
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

––

3,366

(320)

3,045

6,808

7,244

49,124(897)

62,279

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning of period

1,327

Revaluation
reserve for landRemeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income(64)(4,619)(5,882)

Non-controllinginterests

Total net assets–

54,639Cumulative effects ofchanges in accounting
policies
Restated balance

(25)
1,327

(5,882)(64)(4,619)–54,614

Changes during period
Dividends of surplus(1,475)

Profit attributable to ownersof parent

4,842

Purchase of treasury shares(320)

OtherNet changes in items otherthan shareholders' equity(102)

Total changes during period(102)Balance at end of period

1,224

(25)

(128)

–(25)

(128)

–

2,917

(5,882)(90)(4,747)–57,5328(128)

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2021

March 31, 2022
5,630

7,019

Depreciation
Increase (decrease) in allowance for doubtful accounts

826
(1)

858
1

Increase (decrease) in provision for bonuses for directors (andother officers)

(11)

(42)

Increase (decrease) in retirement benefit liabilityInterest and dividend income

(140)
(119)

70(106)

Interest expenses
Impairment losses

111
1,817

127
–

29

24

24
(16,315)(899)
16,843

Decrease (increase) in inventories
Increase (decrease) in trade payables

2,477
4,736

(2,686)(6,014)

Increase (decrease) in advances received on construction
contracts in progress(1,187)

1,063

Increase (decrease) in accrued consumption taxes
Other, net(1,010)(1,372)

2,082
(76)

Subtotal(4,506)

18,266

115
(113)

110
(125)

Loss (gain) on sale and retirement of property, plant andequipmentLoss (gain) on sale of investment securities
Decrease (increase) in trade receivables

Interest and dividends received
Interest paid
Income taxes paid

(2,252)(2,411)

Net cash provided by (used in) operating activities(6,757)

15,841

Decrease (increase) in time deposits
Proceeds from sale of property, plant and equipment

50230

205

Purchase of property, plant and equipment and intangible
assets(744)(2,600)

Proceeds from sale of investment securities
Other, net

15227

1,041
(16)

Net cash provided by (used in) investing activities(220)(1,549)Cash flows from financing activities
Proceeds from short-term borrowings

18,000600

Repayments of short-term borrowings
Proceeds from long-term borrowings(50)
1,000(12,700)
900

Repayments of long-term borrowings
Net decrease (increase) in treasury shares(2,067)(0)(1,340)(320)

Dividends paid
Other, net(1,519)(7)(1,475)(14)

Net cash provided by (used in) financing activities

15,356(14,351)

Cash flows from investing activities

Net increase (decrease) in cash and cash equivalents

8,378

(59)

Cash and cash equivalents at beginning of period

13,586

21,951lCash and cash equivalents at end of period

9(12)–21,951

21,891