Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Based on Japanese GAAP)
February 2, 2024
Company name:TOKYO ENERGY & SYSTEMS INC.

Stock exchange listing: Tokyo
Stock code:
1945URL

https://www.qtes.co.jp/Representative:

President and Chief Executive Officer
Executive Officer

Toshiaki MajimaInquiries:

General Manager of Accounting and Finance Takahiko Kobayashi
Division

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 13, 2024–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
NoTEL

03-6371-1947(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2023
63,648
11.3
2,912
82.4
3,735 232.2
2,111 111.3
Nine months ended December 31, 2022
57,188
15.3
1,596
26.0
1,124 (14.8)
999
27.0
Earnings per share

Diluted earnings per share

Yen
61.64
29.19

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

Yen––(2) Consolidated financial positionTotal assets

Net assets

Millions of yen
109,904
108,513

As of December 31, 2023
As of March 31, 2023

Equity ratio

Millions of yen
67,88465,938

%
61.8
61.1

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
20.00
20.00

Yen––

Yen
20.00

Yen
40.00

20.00

40.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Net sales

Full year

Millions of yen
80,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
1.2
3,500
1.2
3,500
26.3
2,500
17.9
72.99

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

37,261,752 shares As of March 31, 2023

37,261,752 shares

Number of treasury shares at the end of the period
As of December 31, 2023

2,990,807 shares As of March 31, 2023

3,009,235 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023

34,263,607 shares Nine months ended December 31, 2022

234,245,556 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of December 31, 2023

AssetsCurrent assets
Cash and deposits

13,255

8,138

Notes receivable, accounts receivable from completed
construction contracts and contract assets

37,554

43,674

Electronically recorded monetary claims - operating
Costs on construction contracts in progress

27
1,677

289
1,656

Raw materials and supplies
Other

1,824
7,400

1,439
4,760

Total current assets

61,74059,957

Buildings and structures, net
Machinery and vehicles, net

11,098
8,677

10,653
8,236

Land
Other, net

8,348
716

8,455
1,088

Total property, plant and equipment

28,841

28,434Non-current assets
Property, plant and equipment

Intangible assets
Goodwill233

179

Customer related assets
Other

1,964
758

1,663
735

Total intangible assets

2,956

2,577

Investments and other assets
Investment securities

11,07815,668

Other
Allowance for doubtful accounts

3,913
(17)

3,284
(17)

Total investments and other assets

14,97518,935

46,77349,947

108,513

109,904

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of December 31, 2023

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other8,859

5,853

Electronically recorded obligations - operating
Short-term borrowings

2,508
2,368

2,176
8,368

Income taxes payable
Contract liabilities

1,093
6,070

102
2,453

Provision for loss on construction contracts
Other provisions

2,260
1,235

2,310
384

Other

3,741

6,667

Total current liabilities

28,13928,317Long-term borrowings
Retirement benefit liability

6,821
5,930

6,374
5,851

Other

1,682

1,476

Total non-current liabilities

14,435

13,70342,57442,020Share capital
Capital surplus

2,881
3,978

2,881
3,985

Retained earnings
Treasury shares

59,025(1,929)59,766(1,917)

Total shareholders' equity

63,95564,715

2,379

3,236

Non-current liabilities

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4(75)

(67)

2,303

3,168

(320)

–

65,93867,884

108,513

109,904

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Net sales
Net sales of completed construction contracts
Cost of sales

57,18863,648

Cost of sales of completed construction contracts
Gross profit

51,52955,945Gross profit on completed construction contracts
Selling, general and administrative expenses

5,659
4,062

7,702
4,789

Operating profit

1,596

2,912

Non-operating income
Interest income

1416

Dividend income
Foreign exchange gains16350193284

Gain on investments in silent partnerships
Gain on valuation of derivatives

26–

250
199

Other

1223

Total non-operating income

268

967

95
641

142–

32

Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses

740

145

1,124

3,735

026

Reversal of provision for loss compensation
Other

579
0–0

Total extraordinary income

579

26

2419

Ordinary profit
Extraordinary income
Gain on sale of non-current assets

Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries and associates

6–

Total extraordinary losses

3019

1,673

3,743

Income taxes - current

575

724

Income taxes - deferred

170

597

Total income taxes

745

1,321

Profit928

2,421

Profit before income taxes

Profit (loss) attributable to non-controlling interests

(71)

309

Profit attributable to owners of parent

999

2,111

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
December 31, 2022

Nine months ended
December 31, 2023

Profit928

2,421

Other comprehensive incomeValuation difference on available-for-sale securities

224856

Foreign currency translation adjustment

194

18

Total other comprehensive income

418

875

Comprehensive income

1,347

3,297

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,437

2,976

(90)

320

Comprehensive income attributable to non-controllinginterests

6