Consolidated Financial Statements
for the Third Quarter of the Fiscal Year Ending March 31, 2024 [J-GAAP]
February 6, 2024

NIPPON KANZAI Holdings Co., Ltd.
Listed exchange:
Tokyo Stock Exchange, Prime Market
Securities code:
9347
URL: https://www.nkanzaihd.co.jp/en/
Representative:
Shintaro Fukuda, President and Representative Director
Contact:
Shigeki Okamoto, Senior Executive Officer and Head of Finance & Accounting Dept.
Telephone:+81-3-5299-0863
Filing date of quarterly report:
February 13, 2024
Date to start dividends distribution:―
Supplementary materials for quarterly results: None
Quarterly results briefing meeting held:
None*Amounts below one million yen have been rounded down.

1. Consolidated results for the third quarter ended December 31, 2023 (April 1, 2023, to December 31, 2023)(1) Consolidated business results(Percentage figures indicate the rate of change from the same period of the previous fiscal year.)
Net Sales
Operating Income
Ordinary Income%

Millions of yen%

Nine months ended December 31, 2023
88,041―
6,081―
Nine months ended December 31, 2022――――
(Note) Comprehensive income:Nine months ended December 31, 2023: ¥5,406 million [ ―%]Nine months ended December 31, 2022: ¥ ― million [ ―%]Profit Attributable toProfit per ShareOwners of Parent

Millions of yen

6,695
―

―
―

Millions of yen

4,635
―

Nine months ended December 31, 2023
Nine months ended December 31, 2022%

Millions of yen%

Diluted Profit per Share

Yen

―
―

Yen

123.99―――(Note) Since the Company was established on April 3, 2023, through a sole share transfer, there are no results for the same period of
the previous fiscal year.

(2) Consolidated financial position

Total Assets

Net Assets

Millions of yen

As of December 31, 2023
As of March 31, 2023
(Reference) Equity:

Equity Ratio

Millions of yen

89,135―%68,615―75.9―

As of December 31, 2023: ¥67,626 million
As of March 31, 2023:¥ ― million(Note) Since the Company was established on April 3, 2023, through a sole share transfer, there are no results for the previous fiscal year.

2. Dividends
First
Quarter-end

SecondQuarter-end―――

Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024
(forecast)

Yen

Yen

Annual dividends
Third
Quarter-end

―
―

27.00

Yen

Year-end

―

Total
Yen

―

27.00

Yen

54.00

(Note) 1. Revisions to the most recently announced forecast of cash dividends in the current quarter: None
2. Since the Company was established on April 3, 2023, through a sole share transfer, there are no results for the previous fiscal year.

3. Consolidated business forecasts for the fiscal year ending March 31, 2024 (April 1, 2023, to March 31, 2024)(Percentage figures indicate the rate of change from the previous fiscal year.)
Profit Attributable toProfitOperating Income
Ordinary Income
Owners of Parent
per Share

Net Sales
Full year

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

118,600

―

8,600

―

9,100

―

6,000

―

160.50(Note) 1. Revisions to the most recently announced consolidated business forecasts in the current quarter: None
2. Since the Company was established on April 3, 2023, through a sole share transfer, there is no rate of change from the previous
fiscal year and that from the same period of the previous fiscal year.

* Notes(1) Changes of significant subsidiaries during the period (changes in specific subsidiaries associated with changes
in scope of consolidation): Yes(Changes in specific subsidiaries associated with changes in scope of consolidation)
Newly included: 1 company (Company name) Hawaiiana Holdings Incorporated(2) Adoption of specific accounting methods for preparation of the quarterly consolidated financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.:
None2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
None4) Restatement of revisions:
None(4) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding (including treasury stock)2) Number of treasury stock3) Average number of shares issued and outstanding
1)

As of December 31, 2023

41,180,306 shares

As of March 31, 2023

― shares2)

As of December 31, 2023

3,797,286 shares

As of March 31, 2023

― shares3)

Nine months ended
December 31, 2023

37,383,056 shares

Nine months ended
December 31, 2022

― shares(Note) Since the Company was established on April 3, 2023, through a sole share transfer, there are no results for the previous fiscal
year and the same period of the previous fiscal year.

* This quarterly financial report is not included in the quarterly review by certified public accountants or audit
corporations* Explanation regarding the appropriate use of business forecasts and other notes(Notes to forward-looking statements)
The business forecasts reported herein were prepared based on information the Company had in its possession as of thetime this report was prepared and on certain assumptions judged to be reasonable. Actual results may differ significantly
from forecasts due to various factors. Please refer to the disclaimers provided under “1. Qualitative information on
financial statements; (3) Explanation regarding information on future forecasts including consolidated business forecasts,etc.” on page 3 of the Attached Document of this quarterly financial report regarding assumptions upon which forecasts
are based and the use of forecasts.
(Results for the previous fiscal year and the same period of the previous fiscal year)
Since the Company was established on April 3, 2023, through a sole share transfer of NIPPON KANZAI Co., Ltd., thecurrent fiscal year will be its first fiscal year. Therefore, there are no results for the previous fiscal year and the same
period of the previous fiscal year.

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

Table of Contents for the Attached Document
1. Qualitative information on financial statements .........................................................................................................2(1) Explanation regarding business results ....................................................................................................................2(2) Explanation regarding financial position .................................................................................................................3(3) Explanation regarding information on future forecasts including consolidated business forecasts, etc. .................3
2. Quarterly consolidated financial statements and key notes ........................................................................................4(1) Quarterly consolidated balance sheets .....................................................................................................................4(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income .......6
Quarterly consolidated statements of income..........................................................................................................6
Quarterly consolidated statements of comprehensive income.................................................................................7(3) Notes on quarterly consolidated financial statements ..............................................................................................8(Notes on the going concern assumption) ...............................................................................................................8(Notes on significant changes in the amount of shareholders’ equity) ....................................................................8(Segment information, etc.) .....................................................................................................................................81

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

1. Qualitative information on financial statements

The Company was established on April 3, 2023, through a sole share transfer of NIPPON KANZAI Co., Ltd. As for thescope of consolidation, there is no substantial change from the scope of consolidation of NIPPON KANZAI Co., Ltd.
In addition, the quarterly consolidated financial statements for the first nine months of the fiscal year ending March 31,
2024, are prepared by succeeding the quarterly consolidated financial statements of NIPPON KANZAI Co., Ltd., which
has become a wholly owned subsidiary through the sole share transfer.

(1) Explanation regarding business results
During the first nine months of the fiscal year ending March 31, 2024, the Japanese economy saw normalization due tothe lifting of restrictions imposed from the COVID-19 pandemic, but was faced with concerns of stagnation in economic
activity due to the impact of surging raw material prices caused by the prolonged situation in Ukraine and currency
exchange fluctuation risks. These factors still continue to cast uncertainty over the future.
The real estate services industry saw vacancy rates for office buildings and retail facilities in urban areas remain highas the impact of various work arrangements including remote working and satellite offices started to take hold. In addition,with surging raw material prices and rising labor costs leading to client companies becoming more conscious of reducing
costs, a severe business environment is expected to continue going forward.
In such a business environment, the Nippon Kanzai Group (hereinafter the “Group”) has continued to pursue “optimalbuilding management” through its advanced technologies and responsiveness in order to continuously provide highquality services that meet customer needs, endeavoring to enhance the asset value of properties under management.
The Group also endeavors to further strengthen and improve Building Management and Operations, its core business,while proactively implementing operations in peripheral fields such as private finance initiatives (PFI) and public facility
management projects.
In the first nine months of the fiscal year ending March 31, 2024, successful procurement of new management contracts
and renewing contracts resulted in net sales of 88,041 million yen, operating income of 6,081 million yen, ordinary
income of 6,695 million yen, and profit attributable to owners of parent of 4,635 million yen.
The following are business results by segment.
Segment income has been adjusted to operating income described in quarterly consolidated statements of income.
Building Management and Operations
With regard to Building Management and Operations, the Group’s core business that focuses on building management
and security services, smoothly winning new management contracts and renewing contracts resulted in net sales for thesegment for the first nine months of the fiscal year ending March 31, 2024, of 57,598 million yen and segment incomeof 5,376 million yen.
Residential Management and Operations
With regard to Residential Management and Operations, which mainly consists of managing rental apartment buildings
and condominiums as well as public housing, robust renewing of existing management contracts and strong constructionrelated business orders resulted in net sales for the segment for the first nine months of the fiscal year ending March 31,
2024, of 14,628 million yen and segment income of 911 million yen.
Environmental Facilities Management
With regard to Environmental Facilities Management, which mainly consists of managing water treatment, sewage
disposal, and other public facilities related to the overall living environment, robust renewing of existing management
contracts and strong construction-related business orders resulted in net sales for the segment for the first nine months of
the fiscal year ending March 31, 2024, of 10,614 million yen and segment income of 1,511 million yen.
Real Estate Fund Management
With regard to Real Estate Fund Management, which mainly consists of asset management (i.e., arrangement and asset
management of real estate funds) and handling of investments in silent partnership, selling assets under management andsmoothly implementing facility management and operation business resulted in net sales for the segment for the firstnine months of the fiscal year ending March 31, 2024, of 3,186 million yen and segment income of 443 million yen.
Other Businesses
In Other Businesses, which consist mainly of event planning and management, design and payroll accounting services,smoothly winning event-related business contracts resulted in net sales for the segment for the first nine months of the
fiscal year ending March 31, 2024, of 2,246 million yen and segment income of 425 million yen.

2

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(2) Explanation regarding financial position
Total assets at the end of the third quarter of the fiscal year ending March 31, 2024, amounted to 89,135 million yen. The
major breakdown is 51,390 million yen of current assets including 28,733 million yen of cash and deposits, and 37,745
million yen of non-current assets including 19,723 million yen of investment securities.
Liabilities amounted to 20,519 million yen. The major breakdown is 15,067 million yen of current liabilities including
5,010 million yen of notes and accounts payable-trade, and 5,451 million yen of non-current liabilities including 2,102
million yen of long-term guarantee deposits.
Net assets amounted to 68,615 million yen. The major breakdown is 65,348 million yen of shareholders’ equity
including 61,337 million yen of retained earnings, 2,278 million yen of accumulated other comprehensive income
including 2,324 million yen of valuation difference on available-for-sale securities, and 989 million yen of noncontrolling interests. The equity ratio was 75.9%.
(3) Explanation regarding information on future forecasts including consolidated business forecasts, etc.
The Group remains cautious of the future business environment, which continues to be unpredictable.
The Group’s business performance has been generally in line with the forecasts announced on May 9, 2023, and there
are no changes to the full-year business forecasts.

3

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

2. Quarterly consolidated financial statements and key notes(1) Quarterly consolidated balance sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable－trade and contract assets
Investments in silent partnership for business purposes
Real estate for sale
Supplies
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Total property, plant and equipment
Intangible assets
SoftwareLeased assets
Goodwill
Telephone subscription right
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Long-term prepaid expenses
Retirement benefit asset
Lease and guarantee deposits
Membership
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
TOTAL ASSETS(Millions of yen)
Third quarter ended
December 31, 2023
(As of December 31, 2023)

28,733
16,889
54
1,408
288
458
3,563
(6)
51,390

3,864
51
638
1,211
842
6,609
335
6
3,428
48
186
4,005
19,723
874
175
21
881
3,387
333
1,805
(71)
27,13037,745
89,135*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

4

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

LIABILITIESCurrent liabilities
Notes and accounts payable－trade
Current portion of long-term loans payable
Current portion of long-term non-recourse loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Contract liabilities
Deposits received
Provision for bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term non-recourse loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors (and other officers)
Retirement benefit liability
Long-term guarantee deposits
Asset retirement obligations
Liabilities from application of equity method
Other
Total non-current liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS(Millions of yen)
Third quarter ended
December 31, 2023
(As of December 31, 2023)

5,010
93
675
224
3,742
292
1,188
1,955
941
83
18
840
15,067
287
659
1,156
2
193
2,102
436
12
600
5,451
20,5193,000
11,33961,337(10,328)
65,348
2,324
157
(203)
2,278
989
68,615
89,135*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

5

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
Personnel expenses
Provision for bonuses
Provision for retirement benefits for directors (and other officers)
Retirement benefit expenses
Transportation and communication expenses
Supplies expenses
Rent expenses
Insurance expenses
Depreciation
Taxes and duesEnterprise tax
Provision of allowance for doubtful accounts
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Rent income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Loss on sales and retirement of non-current assets
Loss on valuation of membership
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on step acquisitions
Total extraordinary income
Profit before income taxes
Income taxes－current
Income taxes－deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent(Millions of yen)
Nine months ended
December 31, 2023
(April 1, 2023, toDecember 31, 2023)

88,041
68,71019,330

523
7,771
50
2
232
873
439
1,018
269
387
151
276
16
162
1,072
13,248
6,081
205
35
249
187
87
765
31
38
32
23
26
152
6,695
176
91
267
6,963
1,817
426
2,244
4,718
83
4,635

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

6

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

Quarterly consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests(Millions of yen)
Nine months ended
December 31, 2023
(April 1, 2023, toDecember 31, 2023)

4,718

305
177
62
143
688
5,406
5,304
101

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

7

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the Third Quarter of the Fiscal Year Ending March 31, 2024

(3) Notes on quarterly consolidated financial statements(Notes on the going concern assumption)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Segment information, etc.)
Nine months ended December 31, 2023 (April 1, 2023, to December 31, 2023)
Information on net sales, and income or losses for each reportable segment(Millions of yen)

Reportable segment

Amountrecorded on
Adjustments
quarterly(Note 1)
consolidated
statements ofincome (Note 2)

Building
Management
andOperations

Residential
Management
andOperations

57,598

14,628

10,614

3,186

2,012

88,041―

88,041

―

―

―

―

233

233

(233)

―

57,598

14,628

10,614

3,186

2,246

88,275(233)

88,041

5,376

911

1,511

443

425

8,669

(2,587)

6,081

Environmental Real Estate
Facilities
Fund
Management Management

Other
Businesses

Total

Net sales
Net sales toexternal customers
Inter-segment net
sales and transfer
Total
Segment income(Note) 1. Adjustments of -2,587 million yen for segment income are elimination of inter-segment transactions and unallocated generaladministrative expenses.
2. Segment income has been adjusted to operating income described in quarterly consolidated statements of income.

8