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, 2023
(Based on Japanese GAAP)May 10, 2023
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, 2023
June 29, 2023

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

June 8, 2023
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, 2023 (from April 1, 2022 to March 31, 2023)(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, 2023
111,110
19.4
7,212
16.9
7,259
17.6
4,508(6.9)
Year ended March 31, 2022
93,090(12.7)
6,169(16.2)
6,174 (17.1)
4,842
47.1
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
7.6
5.9
6.5
–
8.6
5.0
6.6

Diluted earnings pershare

Earnings per share
Yen
104.83112.18Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
129,987
116,423

Millions of yen
60,431
57,532

Cash flows fromoperating activities
Millions of yen
4,152
15,841

Cash flows frominvesting activities
Millions of yen(3,069)(1,549)Net assets per share%
46.5
49.4

Yen
1,405.10
1,338.10(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(253)
22,721(14,351)
21,891

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

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(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
19.00

–
–

21.00
24.00

38.00
43.00

1,649
1,866

33.9
41.0

2.9
3.1

–30.00–30.00

60.00

141.0

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Millions of yen
Six months ending
September 30, 2023
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

53,00027.7

500(71.2)

500(71.8)

300(75.1)

6.98

122,000

9.8

9,500

31.7

9,500

30.9

6,300

39.7

146.48

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(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:
NoChanges in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

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, 2023

44,607,457 shares As of March 31, 2022

44,607,457 shares

Number of treasury shares at the end of the period
As of March 31, 2023

1,598,789 shares As of March 31, 2022

1,612,091 shares

43,004,282 shares Year ended March 31, 2022

43,164,454 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

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

22,011

22,82132,35142,427

457

326

2,534
19,884

2,074
20,239Merchandise and finished goods
Raw materials and supplies

25
452

26
626

Other
Allowance for doubtful accounts

2,804
(86)

3,770
(88)

Total current assets

80,43592,223

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

14,661
3,345

15,124
3,499

Land
Leased assets

19,091103

19,84790

Construction in progress
Accumulated depreciation

55(9,985)

535(10,600)

Total property, plant and equipment

27,27228,497

Intangible assets
Investments and other assets

390805Investment securities
Retirement benefit asset

5,298
244

5,174
247

Deferred tax assets
Other

1,844
987

2,047
1,039

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

(49)

(48)

Total investments and other assets

8,326

8,460

Total non-current assets
Total assets

335,988

37,763

116,423

129,987(Millions of yen)
As of March 31, 2022

As of March 31, 2023

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

6,758

10,551

3,635

8,145

Short-term borrowings
Income taxes payable

25,4001,072

28,1001,058

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

4,780
441

4,604
447

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

070

5369

Other

2,988

3,814

Total current liabilities

45,14856,843Long-term borrowings
Deferred tax liabilities for land revaluation

5,000
221

3,800
221

Retirement benefit liability
Asset retirement obligations

4,864
353

5,178
371

Provision for share-based payments
Other

49
3,252

88
3,050

Total non-current liabilities

13,743

12,71258,891

69,556

Shareholders' equity
Share capital

6,808

6,808

Capital surplus
Retained earnings

7,244
49,124

7,244
51,896

Treasury shares

(897)

(886)

62,27965,062

1,224(5,882)

1,484(5,882)

(90)

(232)

(4,747)(4,630)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

457,532

60,431

116,423

129,987

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales
Net sales of completed construction contracts
Net sales in real estate business and other78,99314,096

94,265
16,845

Total net sales

93,090111,110

68,61383,443

Cost of sales in real estate business and other

9,541

11,076

Total cost of sales

78,155

94,520Gross profit on completed construction contracts
Gross profit on real estate business and other

10,3794,555

10,822
5,768

Total gross profit

14,935

16,590

Selling, general and administrative expenses

8,765

9,377

Operating profit

6,169

7,2120105

0101

Cost of sales
Cost of sales of completed construction contracts

Gross profit

Non-operating income
Interest income
Dividend income
Other51

49

Total non-operating income

157

151

Interest expenses
Miscellaneous expenses

127
2485
18

Total non-operating expenses

152

104

6,174

7,259

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

3899––

Total extraordinary income

903–

26

137

30–

501
240

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Impairment losses
Other1–

Total extraordinary losses

58879

Profit before income taxes

7,019

6,379

Income taxes - current

2,176

2,104

Income taxes - deferred0(233)

Total income taxes

2,177

1,871

Profit

4,842

4,508

Profit attributable to owners of parent

4,842

4,508

5

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
4,842

4,508

Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax(102)
(25)

259
(142)

Total other comprehensive income

(128)

116

4,714

4,624

4,714

4,624

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6Consolidated statements of changes in equity
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 balance

Total shareholders'equity

Treasury shares(576)

59,259(25)
6,8087,244(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)

Disposal of treasury shares
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
othercomprehensiveincome(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)

Disposal of treasury shares
Net changes in items otherthan shareholders' equity

(102)

(25)

(128)

(128)

Total changes during period

(102)

–

(25)

(128)

–

2,917

Balance at end of period

1,224(5,882)(90)(4,747)–57,532

7

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders'equityTreasury shares

6,808

7,244

49,124(897)

62,279

6,808

7,244

49,124(897)

62,279Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Dividends of surplus(1,736)(1,736)

Profit attributable to ownersof parent

4,5084,508

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

1010

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

–

–

2,771

10

2,782

6,808

7,244

51,896(886)

65,062

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

1,224(5,882)(90)(4,747)–57,532

1,224(5,882)(90)(4,747)–57,532

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Dividends of surplus(1,736)

Profit attributable to ownersof parent

4,508

Purchase of treasury shares(0)

Disposal of treasury shares

10

Net changes in items otherthan shareholders' equity

259

Total changes during period

259
1,484

Balance at end of period

(142)

116

–

(142)

116

–

2,899

(5,882)(232)(4,630)–60,4318116

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, 2022

March 31, 2023
7,019

6,379

Depreciation
Increase (decrease) in allowance for doubtful accounts

858
1950
0

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

(42)

(1)

Increase (decrease) in retirement benefit liability
Interest and dividend income

70(106)106(101)

Interest expenses
Impairment losses

127–

85240

Loss (gain) on sale and retirement of property, plant andequipment

24137(899)
30–501

Decrease (increase) in trade receivables
Decrease (increase) in inventories

16,843(2,686)(9,408)73

Increase (decrease) in trade payables
Increase (decrease) in advances received on construction(6,014)

7,501

1,063

(449)

Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities

contracts in progress
Increase (decrease) in accrued consumption taxes

2,082

250

Other, net

(107)

15

Subtotal

18,266

6,281

110

101

Interest paid
Income taxes paid

(125)
(2,411)(86)(2,144)

Net cash provided by (used in) operating activities

15,841

4,152

20

20

5–(2,600)(2,682)

1,041

0–(413)(16)

6(1,549)(3,069)Proceeds from short-term borrowings
Repayments of short-term borrowings

600(12,700)

13,600(12,000)

Proceeds from long-term borrowings
Repayments of long-term borrowings

900(1,340)–(100)Net decrease (increase) in treasury shares
Dividends paid

(320)
(1,475)(0)(1,736)

Interest and dividends received

Cash flows from investing activities
Decrease (increase) in time deposits
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment and intangible
assetsProceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

(14)

(17)

(14,351)

(253)

(59)

829

Cash and cash equivalents at beginning of period

21,951

21,891

Cash and cash equivalents at end of period

21,891

22,7219