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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 2, 2023
Company name:TOKYO ENERGY & SYSTEMS INC.
Stock exchange listing: Tokyo
Stock code:
Representative:1945
URL https://www.qtes.co.jp/President and Chief Executive Officer

Inquiries:

Executive Officer
General Manager of Accounting and Finance Takahiko Kobayashi

Toshiaki Majima

Division
Scheduled date to file Quarterly Securities Report:

November 13, 2023

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 4, 2023
Yes

Holding of quarterly financial results meeting:

No

TEL

03-6371-1947(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended September 30, 2023
Six months ended September 30, 2022

Millions of yen
41,344
37,771

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
9.5
1,002 (28.9)
1,728
19.1
818(7.7)
33.6
1,410 696.7
1,451 569.2
886 792.9

Earnings per share

Diluted earnings per share

Yen
23.89
25.90

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2023
As of March 31, 2023

Net assets

Millions of yen
107,622
108,513Equity ratio

Millions of yen
66,92965,938

%
62.2
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)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
80,000
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 six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 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 September 30, 2023

2,990,776 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)
Six months ended September 30, 2023

34,260,454 shares Six months ended September 30, 2022

234,242,521 shares

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

As of September 30, 2023

AssetsCurrent assetsCash and deposits
Notes receivable, accounts receivable from completed
construction contracts and contract assets
Electronically recorded monetary claims - operating
Costs on construction contracts in progress
Raw materials and supplies

13,2558,940

37,55440,862

27

282

1,677
1,824

1,344
1,439

Other

7,400

4,916

Total current assets

61,74057,785

Property, plant and equipment
Buildings and structures, net

11,098

10,810Machinery and vehicles, net
Land

8,677
8,348

8,392
8,451

Non-current assets

Other, net
Total property, plant and equipment

716

890

28,841

28,544

233
1,964

197
1,763

Intangible assets
Goodwill
Customer related assets
Other758

753

2,956

2,714

11,0783,913

15,076
3,519

Allowance for doubtful accounts

(17)

(17)

Total investments and other assets

14,975

18,57846,77349,837

108,513

107,622

Total intangible assets
Investments and other assets
Investment securities
Other

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2023

As of September 30, 2023

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Electronically recorded obligations - operating

8,859

5,955

2,508

3,114

Short-term borrowings
Income taxes payable

2,368
1,093

5,868
195

Contract liabilities
Provision for loss on construction contracts

6,070
2,260

4,589
1,632

Other provisions
Other

1,235
3,741

360
5,330

Total current liabilities

28,13927,047

Non-current liabilities
Long-term borrowings

6,821

6,387

Retirement benefit liability
Other

5,930
1,682

5,857
1,401

Total non-current liabilities

14,435

13,646

42,574

40,693

Shareholders' equity
Share capital

2,8812,881

Capital surplus
Retained earnings

3,978
59,025

3,985
59,158

Total liabilities
Net assets

Treasury shares(1,929)(1,917)

Total shareholders' equity

63,95564,107

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

2,379
(75)

2,870
(48)

Total accumulated other comprehensive income

2,303

2,821

Accumulated other comprehensive income

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

4(320)–65,938

66,929108,513

107,622

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2022

September 30, 2023

Net sales
Net sales of completed construction contracts

37,771

41,344

Cost of sales
Cost of sales of completed construction contracts

33,592

37,252Gross profit
Gross profit on completed construction contracts

4,178

4,091

Selling, general and administrative expenses

2,768

3,088

Operating profit

1,410

1,002

Interest income
Dividend income

9128

10139

Foreign exchange gains
Gain on investments in silent partnerships

8026199186

Gain on valuation of derivatives
Other–
8273
10254

820

60

93

149
3–
1Non-operating income

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

213

94

1,451

1,728

Gain on sale of non-current assets
Other–
026
0

Total extraordinary income

026

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

019

Provision of loss reserve for loss compensation
Other

85
6––Total extraordinary losses

91

19

Profit before income taxes

1,360

1,736

Income taxes - current
Income taxes - deferred

488
3674535

Total income taxes

525

609

Profit834

1,127Profit (loss) attributable to non-controlling interests

(52)

308

Profit attributable to owners of parent

886

818

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2022

September 30, 2023
834

1,127

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

225
218

490
39

Total other comprehensive income

443

529

1,278

1,656

1,352

1,336

(74)

320

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6