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

August 6, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

TOKYO ENERGY & SYSTEMS INC.
Tokyo Stock Exchange
1945
https://www.qtes.co.jp/enToshiaki Majima, President and Chief Executive Officer
Takahiko Kobayashi, Senior Executive Officer, General Manager of Accounting and Finance
Division
Telephone:+81-3-6371-1947
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30,2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit (loss)

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2024

14,895(26.6)

(367)

-

262

(68.4)

712

207.8

June 30, 2023

20,2956.8

376(30.9)

828

37.5

231

(31.7)

Note: Comprehensive income

For the three months ended June 30, 2024:
For the three months ended June 30, 2023:

Basic earnings
per share
Three months ended¥463 million¥927 million[(50.1)%][56.1%]

Diluted earnings
per share

Yen

Yen

June 30, 2024

21.29

-

June 30, 2023

6.76

-

(2) Consolidated financial position
Total assets
As of

Net assets

Millions of yen

Equity-to-asset ratio

Millions of yen%

June 30, 2024

98,841

68,17469.0

March 31, 2024

107,471

68,54863.8

Reference:

EquityAs of June 30, 2024:
As of March 31, 2024:¥68,174 million¥68,548 million

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025-

Fiscal year-end

Total

Yen

Yen

20.00

-

25.00

45.00

26.00

-

26.00

52.00

-

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025 (from April 1, 2024
to March 31, 2025)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Full year

90,000Operating profit% Millions of yen

1.7

Profit attributableto owners of parent

Ordinary profit%

Millions of yen

3,200 (19.2)

Note: Revisions to the financial result forecast most recently announced: None

% Millions of yen

3,600 (30.9)

3,000

Basic earnings
per share

%

Yen

1.3

89.60

* Notes(1) Significant changes in the scope of consolidation during the period: Yes
Newly included: 1 company (Tokyo Enesys Vietnam Co., Ltd.)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(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: None(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 shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

34,973,752 shares

As of March 31, 2024

34,973,752 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

1,490,915 shares

As of March 31, 2024

1,490,807 shares(iii) Average number of shares outstanding during the period
Three months ended June 30, 2024

33,482,898 shares

Three months ended June 30, 2023

34,252,502 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: Yes (voluntary)* Proper use of earnings forecasts and other special matters
The forward-looking statements in this document, including earnings forecasts, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, but they
are not intended to be a commitment by the Company. Actual results may differ significantly due to various
factors.

Table of Contents - Attachments
1. Overview of Operating Results, etc. .................................................................................................... 2(1) Overview of Operating Results for the Three Months Ended June 30, 2024 .................................. 2(2) Overview of Financial Position for the Three Months Ended June 30, 2024 .................................. 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 3
2. Quarterly Consolidated Financial Statements and Principal Notes ..................................................... 4(1) Quarterly Consolidated Balance Sheets .......................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income .................................. 6(3) Notes to Quarterly Consolidated Financial Statements ................................................................... 8(Segment information, etc.) ........................................................................................................ 8(Notes in case of significant changes in shareholders’ equity) ................................................. 10(Notes on going concern assumption) ...................................................................................... 10(Notes to quarterly consolidated statement of cash flows) ....................................................... 10
3. Supplementary Information ............................................................................................................... 11
Orders Received, Construction Completed, and Amount Carried Forward to the Next Period bySegment and Division ........................................................................................................ 111

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Three Months Ended June 30, 2024
Although the upward trend of capital investment continued driven by buoyant corporate earnings, the outlook of
the Japanese economy remains uncertain because of persisting risks, including destabilizing international
circumstances, exchange rate fluctuations, and increasing interest rates, among others, in addition to risingdemand for labor and price increases.
On the other hand, the result of the initial tender was announced for “Long-Term Decarbonized Power Supply
Auctions” targeting a response to the power supply and demand crunch and securing of power supply capacityfrom decarbonized power sources, and plans were clarified for capital investment in decarbonized power sources,
including conversion of existing thermal power plants to enable introduction of ammonia and hydrogen andconstruction of new LNG-fired and biomass plants. Therefore, we expect that concrete progress will be achieved,
going forward.
In these circumstances, the Group has set a new vision for FY2030 of becoming a “Quality-first company leadingcarbon neutrality capitalizing on the technological capabilities of each employee” and formulated the FY2024
mid-term management plan (FY2024-FY2026). Focusing on strengthening human capital, the most importantelement in realizing this vision, we have set the basic policy of “creating a strong and flexible Q’d with people
at the core.” Based on this basic policy, we are addressing the following key issues: “strengthen human capitalby investing in human resources,” “refine ‘Q’d’ so as to be chosen by customers,” and “strengthen ties with all
people and organizations involved in our company.”
In June 2024, we integrated the Energy and Industry Division and the Electric Power Division and established
new regionally based sales offices to ensure efficient business operations, responsiveness to the changing
external environment, and flexible allocation of personnel.
In the electric power market, our core business, the current situation is challenging as implementation of safetymeasures at nuclear power plants and construction of thermal power plants have run their course. However, fromthe second half of the year onward, construction of LNG-fired power plants, fuel conversion at existing power
plants, and resumption of operation of nuclear power plants are anticipated. We will fully leverage the neworganizational structure for order-taking activities.
As a result, total orders received were ¥14,064 million (up 0.5% year-on-year), owing mainly to the receiving oforders concerning the installation of new and additional facilities for chemical plants, substations, and urban
redevelopment projects.
Net sales were ¥14,895 million (down 26.6% year-on-year), owing to decreases in decommissioning-related
work at the Fukushima Daiichi Nuclear Power Plant, maintenance and repair work and construction work forthermal power plants, among others, despite the progress of construction work for biomass power plants andconstruction of safety measures at nuclear power plants.
The amount carried forward to the next period was ¥96,846 million (down 16.3% year-on-year).
As for profits, operating loss was ¥367 million (compared to operating profit of ¥376 million for the same periodof the previous fiscal year) due to a decrease in net sales and an increase in cost ratio (an increase insubcontracting costs in line with labor shortages, and higher biomass fuel purchase prices resulting from the
yen’s depreciation). On the other hand, ordinary profit was ¥262 million (down 68.4% year-on-year) due to therecording of a gain on valuation of derivatives because of the impact of the yen’s depreciation on the outstanding2

balance of forward exchange contracts, which have been entered into in order to reduce the risk of exchange rate
fluctuations related to fuel purchases. Profit attributable to owners of parent amounted to ¥712 million (up207.8% year-on-year), reflecting a gain on sale of investment securities. They were sold in order to improveasset efficiency and strengthen the financial position.
Business results by segment were as follows.
(Facilities Construction)
Total orders received were ¥12,549 million (down 1.2% year-on-year) due to a decrease in the Energy Division.
Net sales were ¥13,435 million (down 29.6% year-on-year) due to decreases in the Energy Division and the
Nuclear Power Division.
Segment loss was ¥68 million (compared to segment profit of ¥1,782 million for the same period of the previous
fiscal year).
(Other Businesses)
Total orders received were ¥1,496 million (up 15.7% year-on-year).
Net sales were ¥1,441 million (up 19.9% year-on-year).
Segment profit was ¥137 million (compared to segment loss of ¥35 million for the same period of the previous
fiscal year).
Reference: Names of divisions, etc. corresponding to the segments
Segment name

Division, etc.

Facilities Construction

Green Energy Business Division, Energy Division, Nuclear Power
Division, Welding and Inspection Engineering Center, Overseas Division

Other Businesses

Power generation business, real estate business, leasing and rental
business, insurance agency, manufacture and sale, wholesaleNote: Following the reorganization in the first quarter of the fiscal year under review, the “Energy and Industry Division” and the“Electric Power Division” of the “Facilities Construction” segment were integrated and the “Energy Division” wasestablished.

(2) Overview of Financial Position for the Three Months Ended June 30, 2024
Total assets amounted to ¥98,841 million as of June 30, 2024, a decrease of ¥8,630 million from the end of theprevious fiscal year. This was mainly due to a decrease in notes receivable, accounts receivable from completed
construction contracts and contract assets.
Total liabilities amounted to ¥30,667 million as of June 30, 2024, a decrease of ¥8,256 million from the end of
the previous fiscal year. This was mainly due to a decrease in other in current liabilities.
Net assets amounted to ¥68,174 million as of June 30, 2024, a decrease of ¥374 million from the end of theprevious fiscal year. This was mainly due to a decrease in retained earnings.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The consolidated financial results forecast for the fiscal year ending March 31, 2025, announced on May 8, 2024
remains unchanged.

3

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and contract
assetsElectronically recorded monetary claims - operating
Securities
Costs on construction contracts in progress
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Customer related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 2024

8,180

10,38436,82029,804

495
4,116
1,436
792
3,876
55,719

442
125
1,198
1,270
4,505
47,731

10,696
8,119
8,463
1,063
28,343

10,587
7,966
8,470
1,108
28,132

161
1,562
720
2,444

143
1,463
716
2,322

16,882
4,100(17)
20,96551,752
107,471

16,5464,126(17)
20,654
51,10998,841

(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts and other
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Contract liabilities
Provision for loss on construction contracts
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5

As of June 30, 2024

8,400

5,188

1,741
992
998
1,855
1,682
743
9,841
26,256

1,623
4,813
85
2,390
766
588
2,479
17,937

5,952
5,269
1,443
12,66638,923

5,952
5,223
1,553
12,73030,6672,881
3,723
59,214(1,083)64,736

2,881
3,723
59,090(1,083)64,611

3,855
(43)
3,812
68,548
107,471

3,768
(206)
3,562
68,174
98,841

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated statements of income (cumulative)(Millions of yen)Three months ended
June 30, 2023
Net sales
Net sales of completed construction contracts
Cost of sales
Cost of sales of completed construction contracts
Gross profit
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in silent partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Other
Total extraordinary losses
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

6

Three months ended
June 30, 2024

20,295

14,895

18,37013,719

1,924
1,548
376

1,175
1,543
(367)

5
135
146
208
3
499

12
157
239
265
10
685

44
1
0
46
828

43
10
2
56
262

0
26
26

844
39
883

5
5
849
26
283
310
538
307
231

0
0
0
1,145
(3)
435
432
712
712

Quarterly Consolidated Statements of Comprehensive Income (cumulative)(Millions of yen)Three months ended
June 30, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Three months ended
June 30, 2024
538

712

455
(67)
388
927

(86)
(163)
(249)
463

607

463

320

-

(3) Notes to Quarterly Consolidated Financial Statements(Segment information, etc.)
I. Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
1. Information on net sales and profit (loss) by reportable segment and breakdown of revenue(Millions of yen)
Reportable segment
Facilities Construction

Other Businesses

Total

Net sales
19,0891,202

20,291

Inter-segment net sales or transfers

651

736

1,388

Total

19,7401,938

21,679

Green Energy Business Division

2,478

-

2,478

Energy Division

12,297-

12,297

Nuclear Power Division

4,865

-

4,865

99

1,938

2,037

19,7401,938

21,679A point in time

2,729

1,938

4,667

Over time

17,011-

17,011

Total

19,7401,938

21,679Segment profit (loss)

1,782

(35)

1,746

Net sales to outside customers

Net sales (by Division)

Other
Total
Timing of transfer of goods or services

Notes: 1. “Other Businesses” is a business segment not included in the reportable segments and includes power generation, real estate,leasing and rental, insurance agency, manufacture and sale, and wholesale.
2. The amount of revenue generated from sources other than contracts with customers is not material.

2. Difference between reportable segment total profit (loss) and the amount stated in the quarterly consolidated
statement of income, and main details of differences (matters related to adjustment of difference)(Millions of yen)
Profit (loss)

AmountReportable segment total(Loss) in the “Other Businesses” segment
Inter-segment eliminations
Amortization of goodwill
Corporate expenses
Other adjustments

1,782
(35)
(1)
(17)
(1,032)(318)

Operating profit in quarterly consolidated statement of income
Note: Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

8376

II. Three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
1. Information on net sales and profit (loss) by reportable segment and breakdown of revenue(Millions of yen)
Reportable segment
Facilities Construction

Other Businesses

Total

Net sales
13,435

1,441

14,876

Inter-segment net sales or transfers

661

677

1,338

Total

14,096

2,119

16,215

Green Energy Business Division

2,690

-

2,690

Energy Division

8,883

-

8,883

Nuclear Power Division

2,453

-

2,453

69

2,119

2,188

14,096

2,119

16,215

A point in time

2,728

2,119

4,847

Over time

11,368-11,368

Total

14,096

2,119

16,215

Segment profit (loss)

(68)

137

69

Net sales to outside customers

Net sales (by Division)

Other
Total
Timing of transfer of goods or services

Notes: 1. “Other Businesses” is a business segment not included in the reportable segments and includes power generation, real estate,leasing and rental, insurance agency, manufacture and sale, and wholesale.
2. The amount of revenue generated from sources other than contracts with customers is not material.
3. Following the reorganization in the first quarter of the fiscal year under review, the “Energy and Industry Division” and the“Electric Power Division” of the “Facilities Construction” Segment were integrated and the “Energy Division” wasestablished. For the three months ended June 30, 2024, information prepared based on the classification after the
reorganization is presented.

2. Difference between reportable segment total profit (loss) and the amount stated in the quarterly consolidated
statement of income, and main details of differences (matters related to adjustment of difference)(Millions of yen)
Profit (loss)

AmountReportable segment total
Profit in the “Other Businesses” segment
Inter-segment eliminations
Amortization of goodwill
Corporate expenses
Other adjustments

(68)
137
81
(17)
(1,073)573

Operating (loss) in quarterly consolidated statement of income
Note: Corporate expenses are general and administrative expenses that do not belong to any reportable segment.

9

(367)

(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Notes on going concern assumption)
Not applicable.
(Notes to quarterly consolidated statement of cash flows)
No quarterly consolidated statement of cash flows for the three months ended June 30, 2024 has been prepared.
Depreciation (including amortization of intangible assets other than goodwill) for the three months ended June30, 2024 and amortization of goodwill are as follows.
Three months ended
June 30, 2023
Depreciation
Amortization of goodwill

514 million yen
17 million yen

10

Three months ended
June 30, 2024
504 million yen
17 million yen

3. Supplementary Information
Orders Received, Construction Completed, and Amount Carried Forward to the Next Period by Segment andDivision
Segment / Division

Green Energy Business Division

Three months ended June Three months ended June
Year-on-year increase30, 2023
30, 2024(decrease)
AmountRatio
AmountRatio
AmountChange(Millions of yen)(%)
(Millions of yen)(%)
(Millions of yen)(%)

Orders Received

326

2.3

846

6.0

519

159.2

Energy Division

8,994

64.3

8,249

58.7

(744)

(8.3)

Nuclear Power Division

3,348

23.9

3,401

24.2

52

1.6

28

0.2

51

0.4

22

78.1

Facilities Construction

12,69890.7

12,549

89.3

(148)

(1.2)

Other Businesses

1,293

9.2

1,496

10.6

202

15.7

13,991

99.9

14,045

99.9

53

0.4

3

0.1

18

0.1

14

384.1

Total

13,995100.0

14,064

100.0

68

0.5

Green Energy Business Division

1,858

9.1

2,029

13.6

170

9.2

Energy Division

12,297

60.6

8,883

59.6

(3,414)(27.8)

Nuclear Power Division

4,865

24.0

2,453

16.5

(2,411)(49.6)

67

0.3

69

0.5

1

2.8

Facilities Construction

19,08994.0

13,43590.2(5,653)(29.6)

Other Businesses

1,202

5.9

1,441

9.7

239

19.9

20,291

99.9

14,87699.9(5,414)(26.7)

3

0.1

18

0.1

14

384.1

Total

20,295100.0

14,895100.0(5,400)(26.6)

Green Energy Business Division

9,753

8.4

12,242

12.7

2,488

25.5

Energy Division

79,48768.7

67,81970.0(11,668)(14.7)

Nuclear Power Division

25,51422.1

15,882

16.4(9,632)(37.8)

321

0.3

135

0.1

(186)

(58.0)

115,077

99.5

96,07999.2(18,998)(16.5)

599

0.5

767

0.8

167

28.0

115,677

100.0

96,846100.0(18,830)(16.3)

-

-

-

-

-

-

115,677

100.0

96,846100.0(18,830)(16.3)

Other

Segment total
Adjustments

Construction Completed

Other

Segment total
Adjustments

Amount Carried Forward to the Next Period

Other
Facilities Construction
Other Businesses
Segment total
Adjustments
Total11