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 Six Months Ended September 30, 2022
(Based on Japanese GAAP)
November 7, 2022
Company name:YAHAGI CONSTRUCTION CO., LTD.
Stock exchange listing: Tokyo, Nagoya
Stock code:
Representative:

1870
URL https://www.yahagi.co.jp/President and Director
Mitsuhiro Takayanagi

Contact:
keiri@yahagi.co.jp
Scheduled date to file Quarterly Securities Report:

November 8, 2022

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

November 29, 2022
Yes

Holding of quarterly financial results meeting:No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)

Six months ended September 30, 2022
Six months ended September 30, 2021

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%
41,495 (11.4)
1,738 (20.4)
1,775 (19.7)
1,206 (23.5)
46,852
1.3
2,184 (26.6)
2,211 (27.7)
1,577 (25.0)
Earnings per share

Diluted earnings per share

Yen
28.06
36.40

Six months ended September 30, 2022
Six months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2022
As of March 31, 2022

Net assets

Millions of yen
112,834
116,423

Equity ratio

Millions of yen
57,841
57,532

%
51.3
49.4

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
17.00
19.00

Yen–

Yen
21.00

Yen
38.00

–

19.00

38.00

Year ending March 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
107,000
14.9
6,000(2.7)
6,000
(2.8)
4,150 (14.3)
96.52

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

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 September 30, 2022

1,598,691 shares As of March 31, 2022

1,612,091 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2022

42,999,833 shares Six months ended September 30, 2021

2

43,333,543 shares

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

As of September 30, 2022

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

22,011

20,58432,351

28,497

457

192

2,534
19,884

4,613
19,987

Merchandise and finished goods
Raw materials and supplies

25452

39650

Other
Allowance for doubtful accounts

2,804(86)

2,477
(85)

Total current assets

80,43576,957

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

14,661
3,345

14,722
3,395

Land
Leased assets

19,091
103

19,092
99

Construction in progress
Accumulated depreciation

55(9,985)

72(10,235)

Total property, plant and equipment

27,272

27,145Intangible assets
Investments and other assets

390

380

Investment securities
Retirement benefit asset

5,298
244

5,303
246

Deferred tax assets
Other

1,844
987

1,876
972

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

8,350

Total non-current assets
Total assets

335,988

35,876

116,423

112,834

(Millions of yen)
As of March 31, 2022As of September 30, 2022

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

6,758

7,797

3,635

5,098

Short-term borrowings
Income taxes payable

25,4001,072

21,000465

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

4,780
441

4,055
447

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

070

2045

Other

2,988

2,564

Total current liabilities

45,14841,495Long-term borrowings
Deferred tax liabilities for land revaluation

5,000
221

4,900
221

Retirement benefit liability
Asset retirement obligations

4,864
353

4,894
355

Provision for share-based compensation
Other

49
3,252

63
3,062

Total non-current liabilities

13,743

13,49758,891

54,992

Shareholders' equity
Share capital

6,808

6,808

Capital surplus
Retained earnings

7,244
49,124

7,244
49,419Treasury shares

(897)

(886)

62,27962,585

1,224(5,882)

1,225(5,882)

(90)

(87)

(4,747)(4,744)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

57,841

116,423

112,834

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2021September 30, 2022

Net sales
Net sales of completed construction contracts

42,61435,715Net sales in real estate business and other

4,237

5,779

Total net sales

46,852

41,495

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

38,0102,827

31,712
3,787

Total cost of sales

40,83835,500Gross profit
Gross profit on completed construction contracts

4,603

4,003

Gross profit on real estate business and other

1,410

1,992

Total gross profit

6,013

5,995

Selling, general and administrative expenses

3,829

4,257

Operating profit

2,184

1,738

Non-operating income
Interest income

20

Dividend income
Other72
32

56
32

Total non-operating income

106897142

8

10

Cost of sales

Non-operating expenses
Interest expenses
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses

7952

2,211

1,775

105

–105–

267

30–

3267

2,283

1,707

Income taxes - current

752

545

Income taxes - deferred(46)(44)

Profit before income taxes

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5706

501

1,577

1,2060–

1,577

1,206

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2021

September 30, 2022

1,577

1,206

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

64
1402

Total other comprehensive income

783

1,656

1,209

1,656

1,209

0–

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

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2021

September 30, 2022

2,283

1,707

Depreciation
Increase (decrease) in allowance for doubtful accounts

420
(0)

459(2)

Interest and dividend income
Interest expenses(74)
71(56)
42

267

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

12,437(4,764)

4,118(2,393)

Increase (decrease) in trade payables
Increase (decrease) in advances received on construction(3,826)

2,501

(213)

(724)

(367)

(20)

5,969

5,699

79
(67)

56
(42)

Income taxes paid

(1,248)(1,133)

Net cash provided by (used in) operating activities

4,732

4,580

Purchase of property, plant and equipment and intangible
assets(2,144)(592)

Proceeds from sale of property, plant and equipment andintangible assets

0–

129

6(2,014)(586)

Proceeds from short-term borrowings
Repayments of short-term borrowings

300(4,000)

2,600(7,000)

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

500(826)–(100)

Net decrease (increase) in treasury shares
Dividends paid

(254)
(737)

–(911)(4)(9)

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

contracts in progress
Other, net
SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities

Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Other, net(5,023)(5,420)Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(2,305)(1,426)

Cash and cash equivalents at beginning of period

21,951

21,891

Cash and cash equivalents at end of period

19,646

20,4647