Note : This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Report [Japanese GAAP]
for the Nine Months Ended December 31, 2022
January 31, 2023
Kyudenko Corporation
Listing:
Tokyo Stock Exchange / Fukuoka Stock Exchange
1959
URL:
https://www.kyudenko.co.jp/
Naofumi Sato, Executive Officer Representative President
Akira Shirouzu, Executive Officer,
Inquiries:
General Manager of Finance & Accounting Department
TEL:+81(0)-92-523-1239
Scheduled date to file quarterly securities report:
February 10, 2023
Scheduled date to commence dividend payments:－
Preparation of supplementary material on quarterly financial results : Yes
Holding of quarterly financial results briefing: None
Company name:Securities code:
Representative:(Yen amounts are rounded down to millions.)

1. Consolidated financial results for the nine months ended December 31, 2022
(From April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
December 31, 2022
Nine months ended
December 31, 2021
(Note) Comprehensive income(Percentages indicate year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

251,255

4.1

15,612(6.5)

18,257(5.7)

14,8447.8

241,283(9.5)

16,694(11.7)

19,354(7.6)

13,773(0.5)

Nine months ended December 31, 2022:
Nine months ended December 31, 2021:
Profit per share

Nine months ended December 31, 2022
Nine months ended December 31, 2021

¥16,895 million ( 40.6%)¥12,020 million (-28.9%)
Diluted profit per share
Yen

Yen

209.53194.41－－(2) Consolidated financial position
Total assets
Millions of yen

As of December 31, 2022
As of March 31, 2022
(Reference) Equity

Net assets

Equity ratio

Millions of yen%

423,313378,396

251,03858.8
241,194
63.2
As of December 31, 2022:¥248,952 million
As of March 31, 2022:¥239,134 million(Note) Provisional accounting treatment of a recent corporate merger was finalized at the end of the previous consolidated
fiscal year, resulting in important revisions to the allocation of acquisition costs that have been applied to data reported
for the nine months ended December 31, 2021.

2. Dividends
1st quarter-end

Annual dividends per share
2nd quarter-end 3rd quarter-end
Year-end

Yen

Yen

Total

Yen

Yen

Yen

Year ended March 31 2022
50.00
－
－
Year ending March 31 2023
50.00
－
－
Year ending March 31 2023
(Forecast)(Note) Revisions to the forecast of cash dividends most recently announced: None

50.00

100.0050.00

100.003. Forecast of consolidated financial results of operations for the fiscal year ending March 31, 2023
(From April 1, 2022 to March 31, 2023)(Percentages indicate change from corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating income Ordinary income
Profit per shareowners of parent% Millions of yen%

Yen

Full year
400,000
6.2
32,500 (1.9)
35,000 (5.0)
26,000(Note) Revisions to the most recently announced consolidated earnings forecast: Yes

Millions of yen% Millions of yen% Millions of yen(0.8)

367.00―1―

*Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specified subsidiaries resulting in the change in scope of consolidation)(2) Adoption of accounting treatment specific to the preparation of quarterly
consolidated financial statements: Yes
Note: For details, see “Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements” on p.7 of the attached materials.

(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common stock)(i) Total number of issued shares atNine months ended
the end of the period (including
December 31, 2022
treasury stock)(ii) Number of treasury stock at the Nine months ended
December 31, 2022
end of the period(iii) Average number of shares
Nine months ended
outstanding during the period
December 31, 2022
(cumulative from the beginningof the fiscal year)

70,864,961shares

19,652shares

70,845,465sharesYear ended
March 31, 2022
Year ended
March 31, 2022
Nine months ended
December 31, 2021

70,864,961 shares

19,332 shares

70,845,834 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of consolidated earnings forecasts and other special matters
Forward-looking statements such as the earnings outlook included in these materials are based on information available
to the company at the time of their compilation and on certain assumptions that have been determined to be reasonable.
They do not constitute any commitment on the part of the company to achieve specific results. In addition, actual
performance and other results may diverge significantly from forecasts for a variety of reasons. For precautionary
information about the conditions that comprise the assumptions underlying earnings forecasts and about the use of
earnings forecasts, see “Explanation of consolidated earnings forecasts and other forward-looking information ” on p.2 of
the attached materials.

―2―

Attached materials ― Contents

1. Qualitative information related to this quarterly financial report ...................................................................................... 2(1)

Explanation of operating results ........................................................................................................................... 2(2)

Explanation of financial position ........................................................................................................................... 2(3)

Explanation of consolidated earnings forecasts and other forward-looking information ....................................... 2

2. Quarterly consolidated financial statements and principal notes .................................................................................... 3(1)

Quarterly consolidated balance sheet .................................................................................................................. 3(2)

Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income ... 5(3)

Notes on the quarterly consolidated financial statements..................................................................................... 7(Notes on the premise of a going concern)........................................................................................................... 7(Notes on noteworthy changes in shareholders’ equity) ....................................................................................... 7(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) .... 7(Changes in accounting policies) .......................................................................................................................... 7

3. Reference ....................................................................................................................................................................... 8
Overview of non-consolidated results ................................................................................................................... 8
4. Supplemental information ............................................................................................................................................... 9(1)

Breakdown of consolidated results by business segment and customer .............................................................. 9(2)

Breakdown of non-consolidated results by business segment and customer..................................................... 10―1―

1. Qualitative information related to this quarterly financial report(1) Explanation of operating results
Order volume during the nine months ended December 31, 2022, rose 41.3% from the corresponding period of theprevious fiscal year to ¥362,352 million. Orders rose in both Kyushu and the Tokyo metropolitan region as we focusedon our goal of securing orders for large, private-sector projects. While order profitability has been impacted by risingmaterial and labor costs, efforts to ensure costs are reflected in prices allowed us to maintain a certain level ofprofitability.
Net sales rose 4.1% from the corresponding period of the previous fiscal year to ¥251,255 million. We sought tomanage the process so as to avoid delays in construction progress in the face of growth in construction on hand.
Operating income fell 6.5% from the corresponding period of the previous fiscal year to ¥15,612 million. Although
we’re working to realize cost improvements by taking steps to improve profits, factors including an increase in Selling,
general and administrative expenses combined to push down profits.
Ordinary income fell 5.7% from the corresponding period of the previous fiscal year to ¥18,257 million.
Quarterly profit attributable to owners of parent rose 7.8% to ¥14,844 million. The result reflects posting of an
extraordinary gain from the sale of marketable securities owned by the company.
Provisional accounting treatment of the merger with CHUORIKA KOUGYO Co.,Ltd., which was completed on
September 22, 2021, adopted during the second consolidated quarterly accounting period of the previous
consolidated fiscal year was finalized at the end of that year. As a result, the comparison and analysis with theprevious consolidated quarterly accounting period uses values that have been revised to reflect the finalization of thatprovisional accounting treatment.

(2) Explanation of financial position
Total assets rose ¥44,917 million (11.9%) from the end of the previous consolidated fiscal year to ¥423,313 million
due to factors including an increase in the cost of uncompleted construction contracts resulting from an increase in theconstruction contract balance and an increase in cash and deposits.
Total liabilities rose ¥35,073 million (25.6%) from the end of the previous consolidated fiscal year to ¥172,274
million due to factors including long-term borrowing to supplement working capital.
Total net assets rose ¥9,843 million (4.1%) from the end of the previous consolidated fiscal year to ¥251,038 million
as posting of profit attributable to owners of parent offset payments of dividends.

(3) Explanation of consolidated earnings forecasts and other forward-looking information
The earnings forecast for the fiscal year ending March 31, 2023, which were announced on April 28, 2022, has beenrevised as described below.
(i) Revisions to the earnings forecast
Revisions to the forecast of consolidated financial results of operations for the fiscal year ending March 31, 2023
(From April 1, 2022 to March 31, 2023)
Net sales

OperatingincomeOrdinary
incomeProfit attributable toowners of parent

Profit per
share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Previously announced
forecast (A)Yen

460,000

34,50037,00025,000352.88

Revised forecast (B)400,000

32,50035,00026,000367.00Change (B-A)(60,000)(2,000)(2,000)1,000

Percent change (%)(13.0)

(5.8)

(5.4)

4.0

Reference: Previous
fiscal year results(Fiscal year ended
March 31, 2022)

376,563

33,13736,82826,216370.05(ii) Reasons for revisions
Net sales are expected to decline ¥60 billion versus the previous forecast as construction progress, primarily in large
solar projects, falls beneath the initial plan. Operating and ordinary income are both expected to decline ¥2 billion yen
due to the decrease in sales, although the effects of cost improvements are beginning to manifest themselves. Profit
attributable to owners of parent is expected to increase ¥1 billion due to gains on sales of investment securities.

―2―2. Quarterly consolidated financial statements and principal notes(1) Quarterly consolidated balance sheet(Millions of yen)Previous fiscal year
As of March 31, 2022

Current 3rd Quarter
As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Securities
Costs of uncompleted construction contracts

39,021

67,441

136,676

114,083

987
5,592

19,489Merchandise
Raw materials and supplies

1,107
22,7901,451
28,928

Other
Allowance for doubtful accounts

10,838(34)

22,009(34)

Total current assets

216,979

253,370

Buildings and structures, net
Land33,04829,67733,24429,923

Other, net

18,11819,009Total property and equipment

80,844

82,176

Fixed assets
Property and equipment

Intangible assets
Goodwill

755

1,232

Customer related assets
Other

1,739
1,873

1,574
1,861

Total intangible assets

4,368

4,668

Investments and other assets
Investment securities

61,17565,022Long-term loans receivable
Retirement benefit asset

313
6,124

97
8,828

Deferred tax assets
Other

4,288
5,279

4,410
5,725

Allowance for doubtful accounts

(979)

(987)

Total investments and other assets

76,20383,097

161,416

169,942

378,396

423,313

Total fixed assets
Total assets―3―

(Millions of yen)Previous fiscal year
Current 3rd Quarter
As of March 31, 2022 As of December 31, 2022
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts andotherElectronically recorded obligations
Short-term borrowings

66,66940,192

22,0786,865

31,457
7,883

Income taxes payable
Advances received on uncompleted construction contracts

7,309
11,463

2,614
34,310

187

4,964
36

Provision for bonuses
Provision for loss on construction contracts
Other

8,872

8,345

Total current liabilities

123,446

129,805

Long-term liabilities
Long-term borrowings

3,494

30,850

Lease obligations
Provision for retirement benefits for directors (and other officers)

2,782
328

3,316
469

Retirement benefit liability
Other

4,015
3,134

4,137
3,695

Total long-term liabilities

13,754

42,469137,201

172,274

Shareholders' equity
Share capital

12,561

12,561

Capital surplus
Retained earnings

12,987
214,655

13,046
222,413(9)(10)

240,194

248,011

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1,848
(218)

2,479
118

Foreign currency translation adjustment
Retirement benefit liability adjustments

208(2,898)878(2,534)

Total accumulated other comprehensive income(loss)(1,059)941

Total liabilities
Net assets

Treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

―4―

2,059

2,086

241,194

251,038

378,396

423,313

(2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
Third quarterly consolidated cumulative accounting period(Millions of yen)Previous 3rd Quarter(From April 1, 2021 to
December 31, 2021)

Current 3rd Quarter(From April 1, 2022 to
December 31, 2022)

Net sales
Construction contracts
Other

232,8638,419

240,090
11,164

Total net sales

241,283

251,255

200,805

208,434

5,914

7,802

Total cost of sales

206,719

216,237

Gross profit
Construction contracts

Cost of sales
Construction contracts
Other

32,05831,656

Other

2,505

3,362

Total gross profit

34,56335,018Selling, general and administrative expenses

17,86919,406

Operating income

16,694

15,612Non-operating income
Interest income

39

37

Dividend income
Share of profit of entities accounted for using equity
methodGain on investments in partnerships
Rent income

714

689

913

631

612
253

937
245

Other

537

621

3,072

3,161

286
26

299
30

-

17
87

Total non-operating income
Non-operating expenses
Interest expenses
Extra retirement payments
Transfer of allowance for doubtful accounts for affiliates
Settlement payments
Other

98

81

Total non-operating expenses

411

516

19,354

18,257

Ordinary income
Extraordinary income
Gain on sales of fixed assets

4177

Gain on sales of investment securities

782

4,247

Total extraordinary income

787

4,424

Extraordinary losses
Loss on disposal and sales of fixed assets

112

221

Loss on sales of investment securities
Loss on valuation of investment securities

1
69

52

Loss on liquidation of a subsidiary

-

74

184

349

Profit before income taxes

19,957

22,333

Income taxes

6,141

7,504

Profit13,816

14,82943(15)

13,773

14,844

Total extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent―5―

Quarterly consolidated statement of comprehensive income
Third quarterly consolidated cumulative accounting period(Millions of yen)Previous 3rd Quarter(From April 1, 2021 to
December 31, 2021)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit liability adjustments
Share of other comprehensive income (loss) of entities
accounted for using equity method
Total other comprehensive income(loss)
Comprehensive income

Current 3rd Quarter(From April 1, 2022 to
December 31, 2022)

13,816

14,829(2,478)
177

627
733

542

364

(37)

340

(1,796)

2,066

12,02016,895

11,95960

16,84549

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests―6―(3) Notes on the quarterly consolidated financial statements(Notes on the premise of a going concern)
None(Notes on noteworthy changes in shareholders’ equity)
None(Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses have been calculated by making a reasonable estimate of the effective tax rate after the applicationof tax effect accounting to pre-tax income for the consolidated fiscal year that includes the third consolidated
quarterly accounting period and then applying the effective tax rate used in that estimate to the pre-tax quarterly
income.
(Changes in accounting policies)
We have applied the Application Guidelines for Accounting Standards Related to Calculation of Market Value(Corporate Accounting Standard Application Guideline No. 31 of June 17, 2021; “Application Guidelines for Market
Value Standards”) since the start of the first consolidated quarterly accounting period. In keeping with the transitional
treatment described in Paragraph 27-2 of the Application Guidelines for Market Value Standards, new accounting
policies set forth by the Application Guidelines for Market Value Standards will continue to be applied in the future.
Those changes have had no effect on our quarterly consolidated financial statements.

―7―

3. Reference
Overview of non-consolidated results(Yen amounts are rounded down to millions.)
Non-consolidated financial results for the nine months ended December 31, 2022
(From April 1, 2022 to December 31, 2022)(1) Non-consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)

Net sales
Nine months ended
December 31, 2022
Nine months ended
December 31, 2021

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

212,288

1.1

12,469(5.9)

14,737(3.8)

13,09618.4

15,313 (12.3)

11,062(7.7)

209,874 (10.6)

Profit per share
Nine months ended
December 31, 2022
Nine months ended
December 31, 2021

13,251 (14.2)

ProfitDiluted profit
per share

Yen

Yen

184.82－

156.10－(2) Non-consolidated financial position
Total assets
As of December 31, 2022
As of March 31, 2022

Net assets

Equity ratio

Millions of yen

Millions of yen%

374,305
336,952

205,831
199,176

55.0
59.1

Note: This overview of non-consolidated operating results is provided for reference purposes only and as such does not fallwithin the scope of review of legally mandated disclosures.

―8―4. Supplemental information(1) Breakdown of consolidated results by business segment and customer(i)

Net sales
Accounting periodBusiness segment
Power distribution line work

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)total
31,785
13.2

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)total
32,337
12.9

Increase(Decrease)
Amount(millions of yen)
552

Rate (%)
1.7

Electrical work

126,41452.4

120,859

48.1(5,554)(4.4)

HVAC and sanitary facility work
Total, facilities construction
business
Other businesses

74,66330.9

86,89334.6

12,22916.4

232,86396.5

240,090

95.6

7,227

3.1

4.4

2,745

32.6

Total

241,283

9,972

4.1

8,419

3.5
100

11,164
251,255100(ii) Construction orders
Accounting periodBusiness segment
Power distribution line work

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)
total
32,379
12.6

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)
total
33,069
9.1

Increase(Decrease)
Amount(millions of yen)
690

Rate (%)
2.1

Electrical work

131,68151.4

195,76154.0

64,07948.7

HVAC and sanitary facility work

92,35136.0

133,52136.9

41,170

44.6

Total

256,411

105,94041.3

100362,352

100(iii) Construction contract balance at end of period
Accounting periodBusiness segment
Power distribution line work

As of December 31, 2021

As of December 31, 2022

AmountAs percent of(millions of yen)
total
1,969
0.5

AmountAs percent of(millions of yen)
total
1,979
0.4

Increase(Decrease)
AmountRate (%)(millions of yen)10
0.5Electrical work

290,850

69.2

359,910

67.9

69,05923.7

HVAC and sanitary facility work

127,34230.3

168,020

31.7

40,677

31.9

Total

420,162

109,74726.1

100

529,910100(iv) Construction sales by customer
Accounting period
Customer
Kyushu Electric Power Group*

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)total
31,808
13.7

General customers

201,054

Total

232,86386.3
100

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)total
32,27313.4
207,817240,090

Increase(Decrease)
Amount(millions of yen)
464

86.6
100

Rate (%)
1.5

6,762

3.4

7,227

3.1

(v) Construction orders by customer
Accounting period
Customer
Kyushu Electric Power Group*

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)total
33,89013.2

General customers

222,521

Total

256,41186.8
100

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)
total
33,031
9.1
329,321362,352

Increase(Decrease)
Amount(millions of yen)
(858)

90.9
100

Rate (%)(2.5)

106,79948.0

105,94041.3(vi) Full-year sales and construction order volume forecast for the fiscal year ending March 2023
Business segment
Power distribution line work
Electrical work
HVAC and sanitary facility work
Total, facilities construction business
Other businesses
Total

Sales (millions of yen)
47,000202,000
135,000
384,000
16,000400,000

Construction order volume (millions of yen)
48,000231,500
147,500
427,000*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., Kyushu Electric Power Transmission and Distribution Co., Inc., and Kyuden T&D
Service Co., Inc.

―9―

(2) Breakdown of non-consolidated results by business segment and customer(i)

Net sales
Accounting periodBusiness segment
Power distribution line work

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)
total
30,633
14.6

Electrical work

116,239

55.4

HVAC and sanitary facility work

59,653Sub total

206,526

Other businesses

3,348

Total

209,874

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)
total
30,914
14.6

Increase(Decrease)
Amount(millions of yen)
281

Rate (%)
0.9

108,25251.0(7,986)

(6.9)

28.4

69,420

32.7

9,767

16.4

98.4

208,587

98.3

2,061

1.0

351

10.5

2,413

1.1

1.6

3,700

100

212,2881.7100(ii) Construction orders
Accounting periodBusiness segment
Power distribution line work

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)
total
30,916
13.9

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)
total
31,505
10.1

Increase(Decrease)
Amount(millions of yen)
588

Rate (%)
1.9

Electrical work

119,315

53.5

177,34256.7

58,026

48.6

HVAC and sanitary facility work

72,714

32.6

103,591

33.2

30,877

42.5

Total

222,946

89,49340.1

100

312,440100(iii) Construction contract balance at end of period
Accounting periodBusiness segment
Power distribution line work

As of December 31, 2021

As of December 31, 2022

AmountAs percent of(millions of yen)
total
760
0.2

AmountAs percent of(millions of yen)
total
1,051
0.2

Electrical work

276,783

HVAC and sanitary facility work

103,008

Total

380,552

72.7

344,61427.1

136,520100

482,187

71.5
28.3
100

Increase(Decrease)
Amount(millions of yen)
291

Rate (%)
38.4

67,831

24.5

33,511

32.5

101,635

26.7(iv) Construction sales by customer
Accounting period
Customer
Kyushu Electric Power Group*

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)total
30,89815.0

General customers

175,627

Total

206,526

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)total
31,25415.0

85.0

177,333100

208,587

85.0
100

Increase(Decrease)
Amount(millions of yen)
356

Rate (%)
1.2

1,705

1.0

2,061

1.0

(v) Construction orders by customer
Accounting period
Customer
Kyushu Electric Power Group*

Nine months ended
December 31, 2021
(April 2021 to December 2021)
AmountAs percent of(millions of yen)total
31,823
14.3

General customers

191,123

Total

222,946

Nine months ended
December 31, 2022
(April 2022 to December 2022)
AmountAs percent of(millions of yen)total
31,908
10.2

85.7
100

280,531
312,440

89.8
100

Increase(Decrease)
Amount(millions of yen)
85

Rate (%)
0.3

89,40846.8

89,493

40.1*Kyushu Electric Power Group: Kyushu Electric Power Co., Inc., Kyushu Electric Power Transmission and Distribution Co., Inc., and Kyuden T&D
Service Co., Inc.

―10―