【IR Material】
Supplementar y Material on theConsolidated Financial Results for the Six
Months Ended September 30, 2023
YAHAGI CONSTRUCTION CO., LTD.
Code no.: 1870
（ Listed on Prime Section of Tokyo Stock Exchange andPremiere Section of Nagoya Stock Exchange ）©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

Ⅰ
Financial Results for the Six Months
Ended September 30,2023©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

Financial Results for the Six Months Ended September 30,2023 Highlights
 Net sales
Net sales reached ¥52.1 billion, increased by ¥10.6 billion year on year, setting a new record high for the first half.

 Profit
Although gross profit increased, selling, general and administrative expenses increased due to higher personnel expenses,
mainly caused by raises in employee salaries and bonuses, higher expenses associated with increased business activities, andother factors. As a result, profit declined at each profit level from operating profit and below.
Operating profit （ JPY mil ）Net sales（JPY mil）
YoY ￥

（百万円）
0.2
bn.（14.4％）

10.6bn.（25.7％）

YoY ￥

YoY ￥

4.7%

Profit attributable to owners of parent（ JPY mil ）0.1bn.（15.6％）

Operating profit margin

Return on sales

4.2%* 52,158

46,852
41,495

2.9%

2,184

3.4%
2.9%

1,738

2.0%
1,487

1,577
1,206

2021.92022.92021.92023.92022.92023.92021.92022.91,017

2023.9*Net sales marked a record high.

©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

3

Financial Results for the Six Months Ended September 30,2023(Millions of Yen)

Six months
ended
Sept.30,2021
ActualSix months
ended
Sept.30,2022
ActualSix months
ended
Sept.30,2023
ActualYear on year
Increase/decrease

Change46,852

41,49552,158

10,662

25.7%

42,61435,71545,72810,012

28.0%

4,237

5,779

6,429

649

11.2%

6,013

5,995

6,377

381

6.4%

（Gross profit margin）

12.8%

14.4%

12.2%

Gross profit on completed construction contracts

4,603

4,003

4,558

555

13.9%

Gross profit on real estate business and other

1,410

1,992

1,819

▲173

▲8.7%

Selling, general, andadministrative expenses

3,829

4,257

4,889

632

14.8%

Operating profit

2,184

1,738

1,487

▲250

▲14.4%

4.7%

4.2%

2.9%

2,211

1,775

1,564

4.7%

4.3%

3.0%

1,577

1,206

1,017

3.4%

2.9%

2.0%

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

Gross profit(Operating profit margin)

Ordinary profit(Ordinary profit margin)

Profit attributable to owners of parent(Return on sales)©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

▲2.2pt▲1.3pt▲210▲11.9%▲1.3pt▲188▲15.6%▲0.9pt4

Factors for increase or decrease in net sales/operating profit(vs results for the first six months ended September 30, 2022)
 Net sales・・・ Increased by ¥10.6 billion year on year, setting a new record high for the first half.

Construction business : Net sales increased by ¥10.0 billion year on year due to the progress in construction mainly in large building construction projects for which
orders were received in or before the previous fiscal year.
Real estate business : Net sales increased ¥0.6 billion year on year due to the growth in revenue in the condominiums for sale business.

 Profit

・・・Operating profit by decreased ¥0.2 billion year on year.

Construction business : Profit increased by ¥0.5 billion year on year due to a significant profitability improvement effect from the approval for a change that is a substantial
increase in amount at the time of completion of a large civil engineering project.
Real estate business : Profit decreased by ¥0.1 billion year on year as there was no sale, during this first six-month period, of self-developed land for industrial use thatwas sold in the previous fiscal year, despite the positive effect from increased revenue in the condominiums for sale business.
S&GA: Expenses increased by ¥0.6 billion year on year due to higher personnel expenses mainly caused by raises in employee salaries and bonuses,
higher expenses associated with increased business activities, and other factors.

Net sales（ JPY mil ）YoY ￥Operating profit （ JPY mil ）10,662 mil.

YoY ￥

▲642

+692
+9,358+654+649

250 mil.

52,158

+388
▲173

+116

41,495

1,738（ Prior period ）22,553（ Prior period ）7.4％（ Prior period ）13,162（ Prior period ）
17.7％

▲632

1,487

（ Current period ）（ Current period ）（ Current period ）（ Current period ）31,911

5.4％

Gross Profit on completed Building
construction+50

Six months ended
Sept.30,2022
ActualBuilding
construction

Civilengineering

Real estatebusiness

Six months ended
Sept.30,2023
Actual©2023

Six months ended
Sept.30,2022
ActualEffect of increase inrevenue fromcompleted construction
contracts(building construction)

13,81720.5％

Gross Profit on completed Civil
engineering+504

Effect of decrease in
Effect of increase in
Effect of improvement in Real estate businessgross profit margin onrevenue fromgross profit margin on
completed construction completed construction completed construction
contracts
contracts
contracts(building construction)(civil engineering)(civil engineering)

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

S&GA

Six months ended
Sept.30,2023
Actual5Comparison with financial forecasts（Millions of Yen）

Six months ended
Sept.30.2023
Forecast

Net sales

Six months ended
Sept.30.2023
Actualvs forecasts
Increase/ decrease

Change53,00052,158

▲841

98.4%

Net sales of completed
construction contracts

46,10045,728

▲371

99.2%

Net sales in real estatebusiness and other

6,900

6,429

▲470

93.2%

5,500

6,377

877

116.0%（Gross profit margin）

10.4%

12.2%

Gross profit on completed
construction contracts
Gross profit on real estatebusiness and other

3,300

4,558

1,258

138.1%

2,200

1,819

▲380

82.7%

5,000

4,889

▲110

97.8%

500

1,487

987

297.5%

0.9%

2.9%

500

1,564

0.9%

3.0%

Profit attributable toowners of parent

300

1,017

（Return on sales）

0.6%

2.0%

Gross profit

Selling, general, andadministrative expenses

Operating profit（Operating profit margin）

Ordinary profit（Ordinary profit margin）©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

1.8pt

2.0pt

1,064

313.0%
2.1pt

717

339.3%
1.4pt

6Factors for increase or decrease in net sales/operating profit（Vs year-beginning forecasts）
 Net sales・・・Fell short of the forecast by approximately ¥0.8 billion.
Construction business : Slightly lower than the forecast due to delays in works of some large building construction projects.
Real estate business : Lower than the forecast because the planned sale of real estate for sale was not realized due to a revision in the plan by the counterparty.

 Profit

・・・Operating profit exceeded the forecast by ¥0.9 billion.

Construction business : Higher than the forecast due to a significant profitability improvement effect from the approval of a change that is a substantial increasein amount at the time of completion of a large civil engineering project.
Real estate business : Lower than the forecast due to the impact of the sale of real estate for sale not being realized.
S&GA: Slightly fell short of the forecast mainly due to lower-than-expected sales costs of condominiums.

Operating profit （ JPY mil ）Net sales（ JPY mil ）53,000841mil.

vs forecast ￥vs forecast ￥987mil.
+1,083+419
52,158▲789

Gross Profit on completed Building
construction
+121

▲470

（ Forecast ）32,700（ Forecast）
4.9％（ Actual ）31,911（ Actual ）
5.4％

+160
500
▲39

+110

1,487

S&GA

Six months ended
Sept.30,2023
Actual▲380+53（ Forecast ）13,400（ Forecast ）12.7％（ Actual ）13,817（ Actual ）20.5％

Gross Profit on Civil engineering+1,136Year-beginning
forecast

Building
construction

Civilengineering

Real estatebusiness

Six months ended
Sept.30,2023
Actual©2023

of decrease in
Effect of improvement in
Effect of increase in
Effect of improvement in Real estate businessYear-beginning Effectrevenue fromgross profit margin onrevenue fromgross profit margin on
completed construction completed construction completed construction completed construction
forecast
contracts(building construction)

contracts(building construction)

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

contracts(civil engineering)

contracts(civil engineering)7

<Overall status by segment> Building construction
 Orders received
Decreased by ¥6.6 billion from the previous fiscal year when there was a concentration of orders for large logistics facilities and factories.

 Net sales
Increased by ¥9.3 billion year on year due to the progress in construction mainly for large commercial facilities and large logistics facilities for which orders werereceived in or before the previous fiscal year.

 Gross profit
Increased by ¥0.05 billion year on year thanks to the effect of higher revenue, despite the impact of the decline in profit margin.

Orders received by use (JPY mil)Net sales by use ( JPY mil )Gross profit（ JPY mil ）YoY ￥ 6.6 bn. (38.3 ％）YoY ￥ 9.3 bn. (41.5 ％）YoY ￥ 0.05 bn. (3.0 ％）■General construction works■Condominium construction works■General construction works■Condominium construction works

Consolidated gross profit margin
8.5%

17,444

7.4%
31,911

29,799

3,113

5.4%

7,310
9,718

10,761

2,528

5,680

3,347

7,474

22,553

14,331
24,601

4,341

20,081

7,414

1,670

1,721

2022.92023.916,8733,1332021.92022.92023.92021.9©2023

2022.92023.9All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

2021.98

<Overall status by segment> Civil engineering Orders received
Increased by ¥0.6 billion year on year due to an increase in private-sector works.

 Net sales
Increased ¥0.6 billion year on year as a change that is a substantial increase in amount was approved at the final settlement discussion for a large civil engineering
project.

 Gross profit
Increased by ¥0.5 billion year on year due to the profitability improvement effect from the aforesaid increase in amount.

Orders received by use (JPY mil)YoY ￥ 0.6 bn. (5.4 ％)16,432

Net sales by use ( JPY mil )Gross profit （ JPY mil ）YoY ￥ 0.6bn. (5.0％)

YoY ￥ 0.5bn. (21.6％)■PW works■Governmental projects■Private-sector works
11,978

12,62912,814■PW works■Governmental projects■Private-sector works
13,817
13,162

Consolidated gross profit margin

20.5%
16.2%

10,090
4,687

5,637

6,794

6,171

17.7%

6,390
2,836
2,074

4,311

5,388

5,480

4,203

2,031

1,902

1,512

2021.92022.92023.9

4,819

5,891

1,817

2,172

1,534

2021.92022.92023.92021.92,332

2022.92023.9* PW works︓ Works performed by “PAN Wall” method, a reinforced earth method for natural grounds which is the Company’s unique technology©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

9

<Overall status by segment> Real estate business Net sales
Increased by ¥0.6 billion year on year due to the significant revenue growth in the condominiums for sale business, although there was no sale, during this first six-month period, of selfdeveloped land for industrial use such as those in the previous fiscal year.

 Gross profit
Decreased by ¥0.1 billion year on year as there was no sale of self-developed land for industrial use that offers a high profit margin, despite the positive effect from increased revenue in thecondominiums for sale business.

 Results of condominiums for sale
Number of units sold increased 53 year on year due to the completion of new buildings for delivery in addition to the continued strong sales of buildings that began delivery at the end of
the previous fiscal year.

Gross profit（ JPY mil ）Breakdown of net sales ( JPY mil )YoY ￥ 0.1bn. (8.7％)

YoY ￥ 0.6 bn. (11.2％)■Condominiums for sale business■Real estate sales■Others
6,429
5,779

Number of condominium units soldYoY 53 units (139.5％)
91units

Real estate sales
33.3%

34.5%
28.3%

2,176
4,237

2,044

47units
19

38units

1,886
2,237
457
1,894

1,497

2021.92022.9

4,234

1,410

2023.92021.9
©2023

1,992

1,819

2022.92023.9All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

2021.92022.92023.910

Consolidated financial position
 Total assets : Total assets increased by ¥2.4 billion due to an increase of ¥1.8 billion in costs on construction contracts in progress
associated with the progress of works in the construction business and an increase of ¥2.0 billion in real estate forsale as a result of purchasing land for industrial development, among other factors.
 Liabilities : Liabilities increased by ¥1.9 billion due to payments of income taxes and consumption taxes, while interest bearing
debt increased by ¥4.0 billion as borrowings were used to cover both higher costs on construction contracts inprogress and financing needs associated with the purchase of real estate for sale.
 Net assets : Net assets increased by ¥0.5 billion mainly due to the recording of retained earnings.
❏Consolidated balance sheets（ Millions of Yen）

As of Sept.30,
2023 Actual

ChangesCash and deposits

22,821

20,771 ▲2,049

Trade receivables

42,75342,670▲83

Liabilities

Current liabilities

As of March 31,
2023 Actual

As of March 31,
2023 Actual

As of Sept.30,
2023 Actual

ChangesAccounts payable

18,697

17,743▲953

Short-term borrowings

28,10031,8003,700

Advances received on construction
contracts in progress

4,604

5,059

455

Others5,442

3,787 ▲1,655

Total

56,84358,390

1,546Long-term borrowings

3,800

4,100

300

Others

8,912

8,982

70

Total

12,712

13,082

370

2,074

3,921

1,847

20,23922,314

2,074

Others

4,334

4,185

▲148

Total

92,22393,863

1,639

Property, plant and equipment

28,49729,014

517

805

717

▲88

8,460

8,855

395

Total liabilities

69,556

71,472

1,916

37,76338,588824

Net assets

60,43160,978546

129,987

132,451

2,463

129,987

132,451

2,463

Costs on construction contracts in progress
Real estate for sale

Intangible assets
Investments and other assets
Total

Total assets©2023

Long-term
liabilities

Fixed assets

Current assets

AssetsTotal liabilities and net assets

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

11

Consolidated financial position❏Key management indicators（ Millions of Yen）

FYE March 2020
ActualFYE March
2021 Actual

FYE March2022 Actual

FYE March2023 Actual

Six months ended
Sept.30.2022
ActualSix months ended
Sept.30.2023
ActualReturn on assets (ROA)

7.3%

6.3%

5.0%

5.9%

－

－

Return on equity (ROE)

10.2%

6.2%

8.6%

7.6%

－

－

Earnings per share (EPS)

118.85円

75.86円

112.18円

104.83円－－

Equity ratio

48.6%

42.1%

49.4%

46.5%

51.3%

46.0%

Interest-bearing debt

26,05742,94030,40031,90025,90035,900Net interest-bearing debt（*）

12,281

20,848

8,388

9,078

5,315

15,129（*） Net interest-bearing debt = interest-bearing debt - cash and deposits❏Consolidated statements of cash flows（ Millions of Yen）

Six months ended Six months ended Six months ended Six months ended
Sept.30.2018
Sept.30.2019
Sept.30.2020
Sept.30.2021
ActualActualActualActualSix months ended
Sept.30.2022
ActualSix months ended
Sept.30.2023
ActualCash flows from operating activities▲ 4,351

2,823

4,050

4,732

4,580

▲ 4,174

Cash flows from investing activities▲ 580▲ 1,462▲0▲ 2,014

▲ 586

▲ 816

Cash flows from financing activities

4,320▲ 2,7394,169▲ 5,023▲ 5,420

2,951

©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

12

Orders received, And carry forward to the second half
 Orders received
Decreased by ¥6.0 billion from a year earlier when there was a concentration of orders
for large logistics facilities and factories.

 Carry forward to the second half
Decreased by ¥6.9 billion year on year as net sales significantly increased from a year
earlier while orders received declined from a year earlier in the building construction.
*

Orders received（ JPY mil ）YoY ￥6.0bn. (20.5％)
29,422

23,90623,391On October 30, 2023, the sale of lot No. 1 of the Obu Tokai Development Project wascompleted, simultaneously completing the building construction contract. At present, bothorders received and carry forward to the second half have increased significantly.

❏Orders received（Millions of Yen）
Six months
ended
Sept.30.2021
ActualSix months
ended
Sept.30.2022
ActualSix months
ended
Sept.30.2023
ActualBuilding construction

7,474

17,444

10,761▲6,682▲38.3%

Civil engineering

16,432

11,978

12,629

651

5.4%

Total

23,90629,422

23,391▲6,031▲20.5%

Year on year
Increase/decrease

2021.9Carry forward to the second half（ JPY mil）
YoY ￥6.9bn. (8.2％)（Millions of Yen）

77,10558,549Six months
ended
Sept.30.2021
ActualSix months
ended
Sept.30.2022
ActualSix months
ended
Sept.30.2023
ActualBuilding construction

30,14456,95545,479▲11,475▲20.1%

Civil engineering

28,40527,07931,625

4,545

16.8%

Total

58,54984,034

77,105▲6,929▲8.2%

Year on year
Increase/decrease

2023.9Change84,034❏Carry forward to the second half©2023

2022.9ChangeAll rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

2021.92022.92023.913

Ⅱ
Financial Forecasts for the FY
March 31,2024©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

Financial Forecasts for the FY March 31,2024
In forecasts for the fiscal year ending March 31, 2024 (full year), a record high is
expected at each profit level, with net sales of ¥122.0 billion, operating profit of ¥9.5
billion, and profit of ¥6.3 billion.
 Net sales
With a large increase in sales in the real estate business, overall net sales will exceed the result in the previous year, achieving a record high.
 Profit
Due to robust growth in revenue, profit will also far exceed the result in the previous year at each profit level, achieving a record high.

❏ F u l l - y e a r Consolidated forecasts for FY March 2024
FYE March2023
ActualNet sales（Millions of Yen）

FYE March
2024

111,110

Year on year（Full year）

Full yearForecast

122,000

Increase/ decrease

10,889Change9.8%

Net sales of completed construction contracts

94,26598,700

4,434

4.7%

Net sales in real estate business and other

16,84523,300

6,454

38.3%

16,59019,700

3,109

18.7%

（Gross profit margin）

14.9%

16.1%

Gross profit on completed construction contracts

10,8229,400▲1,422▲13.1%

Gross profit on real estate business and other

5,768

10,300

4,531

78.6%

Selling, general, and administrative expenses

9,377

10,200822

8.8%Operating profit

7,212

9,500

2,287

31.7%

（Operating profit margin）
Ordinary profit（Ordinary profit margin）
Profit attributable to owners of parent(Return on sales)

6.5%
7,259
6.5%
4,508
4.1%

7.8%
9,500
7.8%
6,300
5.2%

Gross profit©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

1.2pt

2,240
1,791

1.3pt
30.9%
1.3pt
39.7%
1.1pt

15

Factors for increase or decrease in net sales/operating profit(vs results for the fiscal year ended March 31, 2023)
 Net sales
Construction business : Results are expected to exceed those in the previous year, as net sales of HOKUWA CONSTRUCTION,INC., which became a subsidiary,
Real estate businesswill be added.
: Results are expected to significantly exceed those in the previous year due to the sale of the largest ever self-developed land.

 Profit
Construction business : Profit is expected to be lower than the result in the previous year due to a decline in profit margin stemming from some unprofitable works.
Real estate business : Profit is expected to significantly exceed the result in the previous year in conjunction with the sale of self-developed land.

Net sales（ JPY mil ）Gross profit （ JPY mil ）YoY ￥10,889 mil.

YoY ￥ 2,287 mil.

+4,531+6,454111,110+3,670▲822

122,000

+763

7,212
▲662

FY March
FY March20232023
ActualBuilding
construction

Civilengineering

9,500

Real estatebusiness

Actual©2023

FY March
2024
Forecast

FY March
2023
ActualBuilding
construction

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

▲759

Civil
engineering

Real estatebusiness

S&GA

FY March
2024
Forecast

16

Real Estate Business Topics: Obu Tokai Development Project
Largest development project ever undertaken by the Company as a business owner
A project to develop two industrial parks of about 70,000 tsubo (230,000 m2) in Obu City and Tokai City, Aichi Prefecture. The sale of lot No. 1 with Nomura Real Estate
Development Co., Ltd. was completed in October 2023. Expecting to record approximately ¥60.0 billion in total for net sales of completed construction contracts and net sales
in real estate business and other over the three periods from FYE March 2024 to FYE March 2026.

(For details, please refer to “Notice Concerning Sale, etc. (Plan) of Real Estate for Sale” disclosed on October 20, 2023.)

 Project outline

 Project schedule: April 2016 to March 2027 (plan)
2017

2018

Land arrangement

2019

2020

2021

Acquisition ofdevelopment permission
Change to urbanization
promotion area

2022

2023

2024

Land
formationwork

2025 2026 2027
Completion of sale of lot No. 1

Lot No. 1

Building construction (lot No. 1)

Building construction (lot No. 2)

On saleLot No. 2

Local preference

Administrative preference Realization of area plan inaccordance with the city planningmaster plan Integrated development in the area
Lot No. 1

Our Solution
 Promoting development as a business owner in consideration of preferences of both parties

Lot No. 2

Accumulated know-how

Landowner
negotiation

Administrative
consultationLanddevelopment©2023

Attracting
companies

Constructionwork

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

Aerial photo of the site
(as of September 30, 2023)

17

Supplementary information
 As for the percentage of each section in gross profit on sales for FY March 2024, the percentage of the real estatesection rose significantly on a temporary basis, partly due to contribution of the sale of self-developed land, whichis the Company’s record-scale project.
Percentage in gross profit on sales of¥16.6 billion

Civil
engineering

5,759
34.7%

Real
estate5,768
FY March 2023 34.8%

Percentage in gross profit on sales of¥19.7 billion

Civil
engineering
5,000
25.4%

FY March 2024
BuildingRealestate10,30052.3%

construction

4,400
22.3%

Building construction
5,062
30.5%

©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

18

Dividends
 Interim dividend for FYE March 2024 will be ¥30 as announced.
 The year-end dividend forecast is set at ¥30 as announced, and the annual dividend is expected to be ¥60, an increase of ¥17 from theprevious fiscal year.
 The Company plans to increase dividends for three consecutive periods (no dividend reduction for 11 consecutive periods).
 Dividend payout ratio continues to exceed the dividend policy of “30% or more” in the medium-term management plan.
2019.3

Interimdividend¥12

2020.3¥162021.32022.3¥172023.3¥17¥19

Trends in annual dividends per share2024.3

Ordinary dividend¥30

Commemorative dividend

44.8%
41.0%

Payout ratio （Consolidated）
Year-end
dividend

¥16

¥18

¥17

¥21

¥24

¥30
(Forecast)

33.9%

¥28

（*）¥34

¥34

¥38

¥43

¥60 21.5%(Forecast)¥18
Payout ratio（Consolidated）

27.1%

28.6%

44.8%

33.9%

(*） Including commemorative dividend of ¥4 for the 70th anniversary of foundation

©2023

41.0%

¥60

28.6%
25.5%

Annualdividends

41.0%

20.5%

27.1%
¥43

20.4%

¥22

¥24

¥24

16.3

17.3

18.3

¥34

¥34

20.3

21.3

¥38

¥28

41.0%
(Forecast)

15.3

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

19.3

22.3

23.3

24.3

（ F o r e c a s t ）19Disclaimer*Forward-looking statements such as earnings forecasts contained in this document include
projections for the future, assumptions underlying plans and predictions as of the date of the releaseof this document. These statements are not guarantees of future performance by the Company. Actual
results may differ significantly depending on various factors in the future. This document contains
estimates that have not been audited, and the figures are subject to change.
*This document has been translated from the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original
shall prevail©2023

All rights reserved., YAHAGI CONSTRUCTION CO.,LTD.

20