Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
[IFRS]
May 10, 2024
Company name: Shinwa Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange and Nagoya Stock Exchange
Code number: 3447
URL: http://www.shinwa-jp.com/en/relation/index.html
Representative: Kurio Noritake, President and Representative Director
Contact: Mitsuyoshi Hirasawa, Director, Executive Officer, General Manager of Administration Headquarters
Phone: +81-584-66-4436
Scheduled date of Annual General Meeting of Shareholders: June 26, 2024
Scheduled date of filing the annual securities report: June 26, 2024
Scheduled date of commencing dividend payments: June 10, 2024
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(April 1, 2023 to March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Revenue
Operating profit
Profit before tax
ProfitMillionyen%
Millionyen%
Millionyen%
Millionyen%
Fiscal year ended
March 31, 2024
12,678 (14.1)
700 (53.4)
652 (54.5)
411 (58.3)
March 31, 2023
14,757(8.1)
1,501 (29.7)
1,434 (30.5)985 (30.2)

Fiscal year ended
March 31, 2024
March 31, 2023

Profit attributable toowners of parent

Comprehensive
incomeMillion yen%

Million yen

%

409
1,007

(59.3)(30.6)

420
981(57.2)(31.0)

Basic earnings
per share

Diluted earnings
per share

Ratio of returnon equity
attributable toowners of parent

Ratio of profit
before tax tototal assets

%
Yen
Yen
Fiscal year ended
March 31, 2024
29.46
–
2.7
March 31, 2023
72.49
72.49
6.6
Reference: Share of profit (loss) of investments accounted for using equity method:
Fiscal year ended March 31, 2024: ¥– million
Fiscal year ended March 31, 2023: ¥– million

Ratio ofoperating profit
to revenue

%

%

3.1
6.5

5.5
10.2

Equityattributable toowners ofparent to total
assetsEquityattributable toowners ofparent per share(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023

Total equity

Equityattributable toowners ofparentMillion yen

Million yen

Million yen%

Yen

20,675
21,294

15,31815,552

15,31015,54574.0
73.0

1,100.69
1,117.56

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

1,973
686

(626)
(659)

(1,569)(1,424)

1,843
2,063

Fiscal year ended
March 31, 2024
March 31, 2023
2. Dividends

Dividends toequityPayoutTotal
attributable toratio
dividends (consolidated)owners ofparentAnnual dividends
1stquarterend

2ndquarterend

Yen

Yen

Yen

Yen

–

0.00

–

32.00

32.00

–

16.00

–

16.00

32.00

–

16.00

–

16.00

32.00

3rd
quarter- Year-end
end

Total

(consolidated)

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(Forecast)

Yen Million yen

%

%

445

44.1

2.9

445

108.6

2.9

44.5

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 toMarch 31, 2025)(% indicates changes from the previous corresponding period.)

RevenueFirst half
Full year

Operating profit

Profit%Million yen%

Million yen%

Million yen

%

6,647
16,000

0.4
26.2

495
1,600

(4.9)
128.5

441
1,494

(11.2)
129.0

296
1,000

(13.6)
143.3

Profit attributable toowners of parent

First half
Full year

Profit before tax

Million yen

Basic earnings per share

Million yen

%

Yen

296
1,000

(12.9)
144.1

21.29
71.91

* Notes:(1) Changes in significant subsidiaries during the year under review (changes in specified subsidiaries resulting inchange in scope of consolidation): No(2) Changes in accounting policies and changes in accounting estimates
1) Changes in accounting policies required by IFRS: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No(3) Total number of issued shares (common shares)
1) Total number of issued sharesat the end of the period (including treasury shares):
March 31, 2024: 14,103,000 shares
March 31, 2023: 14,103,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2024: 193,484 shares
March 31, 2023: 192,518 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2024: 13,906,457 sharesFiscal year ended March 31, 2023: 13,903,055 shares*These consolidated financial results are outside the scope of audit by Certified Public Accountants or auditing
corporations.
*Explanation of the proper use of financial results forecast and other notes
Financial results forecasts were prepared based on information available at the time of the announcement of thisdocument, and actual results may differ from the forecasts owing to a wide range of factors. For the conditions thatform the assumptions for the financial results forecasts, please refer to (1) Overview of Operating Results for the
Fiscal Year under Review in 1. Overview of Operating Results, etc. on page 2 and (4) Future Outlook in 1. Overview
of Operating Results, etc. on page 5 of the Attachment.

Table of Contents
1. Overview of Operating Results, etc. ..............................................................................................
(1) Overview of Operating Results for the Fiscal Year under Review .............................................
(2) Overview of Financial Position for the Fiscal Year under Review .............................................
(3) Overview of Cash Flows for the Fiscal Year under Review .......................................................
(4) Future Outlook ...........................................................................................................................
(5) Basic Policy for Distribution of Profits and Dividends for the Fiscal Year under Review
and Next Fiscal Year ..................................................................................................................

2
2
4
4
5
6

2. Basic Stance Concerning Choice of Accounting Standards ............................................................. 6
3. Consolidated Financial Statements and Primary Notes .................................................................. 7(1) Consolidated Statement of Financial Position ........................................................................... 7(2) Consolidated Statements of Profit or Loss and Comprehensive Income .................................... 9(3) Consolidated Statement of Changes in Equity ........................................................................... 11(4) Consolidated Statement of Cash Flows ...................................................................................... 13(5) Notes to Consolidated Financial Statements .............................................................................. 14(Notes on going concern assumption) ................................................................................... 14(Segment information) .......................................................................................................... 14(Per share information) ....................................................................................................... 15(Significant subsequent events)............................................................................................. 15

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2024 (the “fiscal year under review”), the Japanese economy
continued to recover gradually, although there were stalls in some activities, such as capital investment.
However, the outlook remains uncertain as there is still a risk of an economic downturn due to the prolonged
weakness of the yen, high prices of materials and resources, concerns about the outlook for the Chinese
economy, and the conflicts in the Middle East and Ukraine.
In the construction industry, which is the main source of demand for our products, construction
investments were generally stable, amounting to ¥52.1 trillion between April 2023 and February 2024 (up1.7% year on year), according to “Comprehensive Construction Statistics” published by the Ministry of Land,
Infrastructure, Transport and Tourism. However, according to “Building Starts Statistics” by the said ministry,
the number of residential and non-residential construction starts during the same period decreased 6.6% fromone year earlier to 789,951 and the total floor area of construction starts was down 10.2% to 93,295 thousandsquare meters. Although construction investments increased, the scale of construction starts was smaller. Thisis mainly the result of the shortage of construction workers and building materials as well as the increase in
their costs.
In this difficult business climate, there were many activities for generating sales that included proposals
to customers for both sales and rentals of our products for more flexibility. In addition, we made a steadyprogress with preparations for increasing sales of new products that are aligned with medium- to long-term
demand and the government policy for national resilience. For example, we continued to supply our multilevel linked scaffolding, which is ideal for high-rise buildings, as large-scale redevelopment projects in urban
areas are expected to continue. We also started selling and renting Rapid Floor™, a suspended systemscaffold that was developed with a large bridge construction company and construction equipment leasing
company in anticipation of maintenance and repair demand arising from the aging of social infrastructure.
In the Logistics Equipment Division, there were different levels of strength in demand depending on
the industries in which we provide our products, which resulted in variations in the volume and timing of therequired equipment, including delays in the recognition of sales of large projects. On the other hand, we havecontinued to engage in sales activities with an aim of adding more market sectors for logistics equipment byidentifying opportunities involving demand and projects in industries not yet served by this division.
On the cost front, efforts are made to further hold down costs, given that raw material prices haveremained high. Nevertheless, there were several factors that reduced profitability. Such factors include
implementation of sales strategies to maintain our sales share; a decrease in gross profit resulting from adecline in sales volume; and our sincere response to requests for cooperation from our business partners in
all areas of transactions, including price revisions, to maintain cooperative relationships that are sustainablewith them. In terms of selling, general and administration expenses, we increased expenditures and benefits
for employees and incurred expenses to start a shareholder benefit program as part of measures to distribute
earnings to shareholders. In addition, as a special one-off factor, we recorded advisory expenses related tothe acquisition of shares of a subsidiary.
As a result of the above, revenue for the fiscal year under review amounted to ¥12,678 million (down
14.1%year on year). Operating profit was ¥700 million (down 53.4% year on year). Profit before tax
amounted to ¥652 million (down 54.5% year on year), and profit attributable to owners of parent amounted
to ¥409 million (down 59.3% year on year).
As the Group is comprised of a single business segment of manufacturing and sale of scaffolding
equipment and logistics equipment, information by segment is not provided. Instead, the performance of each2

business division is provided as follows:

1) Scaffolding Equipment Division
The Scaffolding Equipment Division develops two product groups: wedge binding type scaffolding
primarily targeted at low- to mid-rise structures such as detached housing; and next-generation scaffolding
for mid- to high-rise large structures and public works.
During the fiscal year ended March 31, 2024, the Division saw customers persistently continue to rent
rather than purchase scaffolding equipment because of the high prices of materials and products and therising wages for construction workers since the third quarter of the previous fiscal year. There are also
challenges due to postponements of construction projects caused by the shortage of construction workers.
For these reasons, although the demand for scaffolding equipment remains stable, some customers arepushing back purchases of wedge binding type scaffolding. Also, as a temporary factor, the sales volume
decreased year on year because there was a large volume of purchases in the previous fiscal year prior toprice revisions.
As a result, revenue of the Scaffolding Equipment Division amounted to ¥8,981million (down 13.6%
year on year).
2) Logistics Equipment Division
The Logistics Equipment Division offers solutions to increase efficiency in transportation and storage
and to improve safety through providing made-to-order products to wide range of industries, including theconstruction industry, as well as the automobile and distribution warehouses.
During the fiscal year ended March 31, 2024, the Division steadily received orders, primarily for large
logistics warehouse equipment and other repeated projects, reflecting a higher level of production in manyindustries. However, there was a decline in the volume of orders for pallets for automobile parts caused byfluctuations in demand and the postponement to the next fiscal year and beyond of one-time sales of products
for the transportation of materials for electrical equipment and other applications.
As a result, revenue of the Logistics Equipment Division amounted to ¥3,697 million (down 15.3% year
on year).

Name of product and service

Scaffolding
equipment

Logistics
equipment

For the fiscal year ended
March 31, 2023

Wedge binding typescaffolding
Next generation
scaffolding
Other scaffolding
equipment
Subtotal
Pallets
Subtotal
Total(Thousand yen)
For the fiscal year ended
March 31, 2024

5,866,146

4,970,563

1,713,909

1,434,467

2,811,663

2,576,153

10,391,719
4,365,516
4,365,516
14,757,236

8,981,184
3,697,534
3,697,534
12,678,718

Note: Revenue stated in other scaffolding equipment and pallets includes revenue derived from leases under IFRS
16 of ¥538,385 thousand in the previous fiscal year and ¥451,760 thousand in the fiscal year under review.

3(2) Overview of Financial Position for the Fiscal Year under Review(Assets)
Current assets at the end of the fiscal year under review decreased by ¥670 million from the end of theprevious fiscal year to ¥7,291 million, mainly due to factors such as a decrease in cash and cash equivalentsof ¥220 million, a decrease in trade and other receivables of ¥224 million, and a decrease in inventories of¥223 million. Non-current assets increased by ¥51 million from the end of the previous fiscal year to ¥13,384
million, mainly due to an increase in property, plant and equipment of ¥84 million. As a result, total assets
decreased by ¥619 million from the end of the previous fiscal year to ¥20,675 million.
(Liabilities)
Current liabilities at the end of the fiscal year under review decreased by ¥2,297 million from the endof the previous fiscal year to ¥2,943 million, mainly due to factors such as an increase in trade and otherpayables of ¥381 million, which was more than offset by a decrease in borrowings of ¥2,751 million. Noncurrent liabilities increased by ¥1,912 million from the end of the previous fiscal year to ¥2,413 million. The
increase was primarily attributable to an increase in borrowings of ¥1,963 million. As a result, total liabilities
decreased by ¥385 million from the end of the previous fiscal year to ¥5,357 million.
(Equity)
Total equity at the end of the fiscal year under review decreased by ¥233 million from the end of theprevious fiscal year to ¥15,318 million. This was mainly attributable to factors such as the posting of profit
attributable to owners of parent of ¥409 million and dividends paid of ¥667 million.

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents (hereinafter “net cash”) at the end of the fiscal year under review was ¥1,843
million, a decrease of ¥220 million from the end of the previous fiscal year.
Cash flows from each activity for the fiscal year under review and their primary factors are as follows:(Cash flows from operating activities)
Net cash provided by operating activities for the fiscal year under review was ¥1,973 million, an increaseof ¥1,287 million year on year. Main factors affecting cash inflows were profit before tax of ¥652 million,
depreciation and amortization of ¥592 million, a decrease in inventories of ¥223 million, a decrease in tradeand other receivables of ¥237 million, and an increase in trade and other payables of ¥395 million. The main
factor affecting cash outflows was income taxes paid of ¥362 million.
(Cash flows from investing activities)
Net cash used in investing activities for the fiscal year under review was ¥626 million, a decrease of¥33 million year on year. The main factors affecting cash outflows were purchase of property, plant andequipment of ¥615 million and purchase of intangible assets of ¥10 million.
(Cash flows from financing activities)
Net cash used in financing activities for the fiscal year under review was ¥1,569 million, an increase of¥145 million year on year. Main factors include proceeds from long-term borrowings of ¥2,500 million due
to the refinancing of the syndicated loan and repayments of long-term borrowings of ¥3,250 million.

4(4) Future Outlook
On April 1, 2024, the Group acquired shares of CTR Corporation (hereinafter referred to as “Yagumi
Group”) and made it a subsidiary of the Company. Given this transaction, on May 9, 2024, the Company
formulated and announced its Medium-Term Management Plan covering five years from the fiscal year
ending March 31, 2025 to the fiscal year ending March 31, 2029(*). In the next fiscal year, the first year of
the Plan, we will steadily implement measures in each business segment. Also, taking the opportunity ofmaking the Yagumi Group a subsidiary, we will strive to achieve our goals for the fiscal year ending March
2029 with the aim of creating new value and further enhancing corporate value by mutually generatingsynergies through the sharing of management resources and strengthening business collaboration within the
Shinwa Group.
1) Scaffolding Equipment Division
There will be continued demand for our mainstay wedge binding type scaffolding, next generation
scaffolding, and safety equipment, and the Company anticipates that demand will continue to exceed acertain level. The Company expects full-year revenue of the Scaffolding Equipment Division to amountto ¥12,158 million (up 35.4% year-on-year) based on assumptions of expanded sales of infrastructurerelated products, development and promotion of high value-added products and services, as well as
increased revenue from scaffolding equipment installation services, which is the main business of theYagumi Group.

2) Logistics Equipment Division
The Division expects an increase in revenue from pallets to transport materials for electricalequipment in the next fiscal year in addition to sales continuing to perform steadily in bulk containers forliquid shipping and warehouse racks for distribution warehouses. We will also work to increase revenue
by expanding sales of new projects in a wide range of fields other than the above.
Based on the above, the Company expects full-year revenue of the Logistics Equipment Division tocome to ¥3,842 million (up 3.9% year on year).
The Company plans to endeavor to reduce costs and control expenditure through all sorts of measures
such as reviewing fixed costs and new investment projects.
Based on the above, the Company expects consolidated revenue of ¥16,000 million (up 26.2% year onyear), operating profit of ¥1,600 million (up 128.5% year on year), profit before tax of ¥1,494 million (up129.0% year on year), and profit attributable to owners of parent of ¥1,000 million (up 144.1% year on year)
for the fiscal year ending March 31, 2025.
The above forecasts were prepared based on the information available at the time of the announcementof this document, and the actual results, therefore, may differ from the forecasts due to various factors infuture.
* Please refer to the “Notice regarding Formulation of the Medium-Term Management Plan” (available inJapanese only) announced on May 9, 2024.

5

(5) Basic Policy for Distribution of Profits and Dividends for the Fiscal Year under Review and Next Fiscal
Year
The Group positions the return of profits to shareholders as one of its most important management
issues.
1) Basic policy
The Company’s basic policy is to return profits to its shareholders in accordance with operating
results, while ensuring internal reserves necessary for stable corporate growth and to respond tochanges in the business environment, with a target payout ratio of at least 40%.
2) Number of dividend payments and decision-making body
The Company’s basic policy for dividends of surplus is to pay dividends twice a year as interim
dividends and year-end dividends.
The Company’s Articles of Incorporation stipulate that the Company may pay an interim
dividend with the record date being September 30 every year based on a resolution of the Board of
Directors, and the matters provided in each item of Article 459, Paragraph 1 of the Companies Act,
such as dividends of surplus, shall be resolved by the Board of Directors, unless otherwise stipulated
by laws and regulations.
3) Use of internal reserves
The Company intends to use internal reserves as effective investment capital, including capital
investment and the development of human resources for further business growth, in addition to using
them for the repayment of borrowings, as it strives to enhance corporate value.
At the Board of Directors meeting held on May 10, 2024, the Company resolved the appropriationof surplus for the fiscal year ended March 31, 2024 with a year-end dividend of ¥16.0 per share. Theinterim dividend was declared at ¥16.0 per share, resulting in an annual dividend of ¥32.0 per share. As
a result, the payout ratio is 108.6%.
The Company expects to pay an annual dividend of ¥32.0 per share (including an interim dividendof ¥16.00; payout ratio: 44.5%) for the fiscal year ending March 31, 2025, taking into account the payout
ratio target of 40% or more and the outlook for the fiscal year ending March 31, 2025, but the dividend
amount may change depending on the future economic trend, and the Company’s business performance.

2. Basic Stance Concerning Choice of Accounting Standards
The Group positions overseas expansion of its business as one of its key business strategies. Accordingly,
the Group applies the International Financial Reporting Standards (IFRS) in order to expand trading
opportunities by making it easier for overseas corporations to understand the Group.

63. Consolidated Financial Statements and Primary Notes(1) Consolidated Statement of Financial Position(Thousand yen)
As ofMarch 31, 2024

As ofMarch 31, 2023
AssetsCurrent assets
Cash and cash equivalents

2,063,796

1,843,324

Trade and other receivables

2,450,073

2,225,876

Inventories

3,406,646

3,182,833

Other current assets

41,56039,396

Total current assets

7,962,077

7,291,430

2,403,561

2,488,388

Non-current assets
Property, plant and equipment
Right-of-use assets

240,048

204,761

Goodwill

9,221,769

9,221,769

Intangible assets

1,387,641

1,352,107

Other financial assets

68,259105,080

Other non-current assets

11,537

12,124

Total non-current assets

13,332,817

13,384,232

21,294,895

20,675,663

Total assets7

(Thousand yen)
As ofMarch 31, 2023

As ofMarch 31, 2024

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

664,207

1,045,596

4,242,189

1,490,914

Income taxes payable

122,676

59,503

Other financial liabilities

89,51069,272

Borrowings

Other current liabilities

122,936

278,629

Total current liabilities

5,241,520

2,943,917–

1,963,658

Non-current liabilities
Borrowings
Provisions

45,122

44,236

Other financial liabilities

170,269

143,151

Deferred tax liabilities

281,743

258,339

Other non-current liabilities

3,900

3,900

Total non-current liabilities

501,035

2,413,286

5,742,555

5,357,204

Share capital

153,576

153,576

Capital surplus

6,918,346

6,918,207

Retained earnings

8,621,667

8,363,728

Treasury shares(151,505)(147,575)

3,710

22,092

15,545,795

15,310,028

Total liabilities
EquityOther components of equity
Total equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity

8

6,543

8,430

15,552,339

15,318,459

21,294,895

20,675,663

(2) Consolidated Statements of Profit or Loss and Comprehensive Income
Consolidated Statement of Profit or Loss(Thousand yen)
For the fiscal year
ended March 31, 2023

For the fiscal year
ended March 31, 2024

Revenue

14,757,236

12,678,718

Cost of sales(11,257,628)(9,880,785)

Gross profit

3,499,607

2,797,933

Selling, general and administrative expenses(1,959,283)(2,078,608)

Other income

26,39925,318Other expenses(64,985)(44,515)

Operating profit

1,501,738

700,128

Finance income

691

1,378

Finance costs(67,845)(48,978)

Profit before tax

1,434,584

652,528

Income tax expense(448,690)(241,501)

Profit985,894

411,026

Profit attributable to:
Owners of parent

1,007,788

409,665

Non-controlling interests(21,893)

1,360

Profit985,894

411,026

Basic earnings per share (yen)

72.49

29.46

Diluted earnings per share (yen)

72.49

–

Earnings per share:

9Consolidated Statement of Comprehensive Income(Thousand yen)
For the fiscal year
ended March 31, 2023
Profit

For the fiscal year
ended March 31, 2024

985,894

411,026

2,164

9,693

2,164

9,693

1,218

1,074

(8,140)(1,636)(6,922)(562)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments
designated as measured at fair value through othercomprehensive income
Total of items that will not be reclassified to profit
or loss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Cash flow hedges
Total of items that may be reclassified to profit orloss
Other comprehensive income, net of tax
Comprehensive income(4,758)9,130

981,136

420,157

1,002,432

418,270

Comprehensive income attributable to:
Owners of parent
Non-controlling interests(21,296)

1,887

Comprehensive income

981,136

420,15710

(3) Consolidated Statement of Changes in Equity
For the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(Thousand yen)SharecapitalBalance at beginning of
periodCapital surplus

Retainedearnings

153,576

6,919,802

8,211,397(163,101)

Treasury shares

Profit––1,007,788–

Other comprehensive
income––––Comprehensive income––

1,007,788––(1,324)

–

3,624

–

–

(597,517)–

Share-based paymenttransactions

–

(131)

–

7,971

Total transactions withowners–(1,456)(597,517)

11,596

Balance at end of period

153,576

6,918,346

8,621,667(151,505)

Disposal of treasury
shares (exercise ofsubscription rights toshares)Dividends(Thousand yen)
Other components of equity
Financial assets
Exchangemeasured at fairdifferences onvalue throughtranslation ofotherforeigncomprehensive
operations
incomeBalance at beginning of
periodProfitCash flow
hedgesTotal equity
attributable to Non-controllinginterests
owners ofparent

Total

Equity

(138)

9,203

–

9,065

15,130,740

27,84015,158,581

–

–

–

–

1,007,788(21,893)985,894

Other comprehensive
income2,164

621(8,140)(5,355)(5,355)597(4,758)Comprehensive income

2,164

621

(8,140)(5,355)

1,002,432(21,296)

981,136

Disposal of treasury
shares (exercise ofsubscription rights toshares)

–

–

–

–

2,300

–

2,300

Dividends

–

–

–

–

(597,517)–(597,517)

Share-based paymenttransactions

–

–

–

–

7,839

–

7,839

Total transactions withowners––––(587,378)–(587,378)

Balance at end of period

2,025

9,825

(8,140)3,710

15,545,795

6,543

15,552,339

11

For the Fiscal Year Ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(Thousand yen)SharecapitalBalance at beginning of
periodCapital surplus

Retainedearnings

153,576

6,918,346

8,621,667(151,505)

Treasury shares

Profit––409,665–

Other comprehensive
income––––Comprehensive income––

409,665

–

–

(139)

–

3,929

–

–

(667,605)

–

–

–

–

–

Total transactions withowners–(139)(667,605)

3,929

Balance at end of period

153,576

6,918,207

8,363,728(147,575)

Disposal of treasury
sharesDividends
Transfers to non-financial
assets(Thousand yen)
Other components of equity
Financial assets
Exchangemeasured at fairdifferences onvalue throughtranslation ofotherforeigncomprehensive
operations
incomeBalance at beginning of
periodProfitCash flow
hedgesTotal equity
attributable to Non-controllinginterests
owners ofparent

Total

Equity

2,025

9,825

(8,140)3,710

15,545,795

6,543

15,552,339

–

–

–

–

409,665

1,360

411,026

Other comprehensive
income9,693

547(1,636)

8,604

8,604

526

9,130

Comprehensive income

9,693

547

(1,636)8,604

418,2701,887

420,157

Disposal of treasury
shares

–

–

–

–

3,790

–

3,790

Dividends

–

–

–

–

(667,605)–(667,605)

Transfers to non-financial
assets

–

–

9,777

9,777

9,777

–

9,777

Total transactions withowners

–

–

9,777

9,777

(654,037)–(654,037)

Balance at end of period

11,718

10,373–22,092

15,310,028

8,430

15,318,459

12

(4) Consolidated Statement of Cash Flows(Thousand yen)
For the fiscal year ended
March 31, 2024

For the fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before tax

1,434,584

652,528

Depreciation and amortization

597,292

592,472

Impairment losses

38,184–

Finance income and finance costs

67,15347,600Loss (gain) on sale of fixed assets(5,396)(17,467)

Loss on disposal of property, plant and equipment

8,507

5,661

Share-based payment expenses

6,654

1,184

Decrease (increase) in inventories(938,641)

223,814

Decrease (increase) in trade and other receivables

280,980

237,243

Increase (decrease) in trade and other payables(121,167)

395,164

Other

132,496

221,655

Subtotal

1,500,650

2,359,858

Interest and dividends received

691

1,378

Interest paid

(45,532)(25,208)

Income taxes paid

(769,709)(362,606)–

142

686,100

1,973,563

5,507

18,363Purchase of property, plant and equipment(605,557)(615,669)

Purchase of intangible assets(47,803)(10,612)

Payments for acquisition of financial assets(12,106)(12,862)

Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from sale of property, plant and equipment

Other

182

(5,337)(659,778)(626,117)

Proceeds from short-term borrowings

1,422,650

1,000,000

Repayments of short-term borrowings(1,551,350)(1,000,000)

Proceeds from long-term borrowings–

2,500,000

Repayments of long-term borrowings(500,000)(3,250,000)

Payments of financial expenditures(12,554)(62,008)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Proceeds from exercise of share acquisition rights
Dividends paid
Repayments of lease liabilities

2,300

–

(599,581)(667,050)(185,521)(90,094)(1,424,057)(1,569,153)

961

1,235

(1,396,773)(220,471)

Cash and cash equivalents at beginning of period

3,460,569

2,063,796

Cash and cash equivalents at end of period

2,063,796

1,843,324

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents13(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.

(Segment information)(1) General information
The Group mainly engages in the business of manufacturing and sale of scaffolding equipment andlogistics equipment. There is a single reportable segment of the manufacturing and sale of scaffolding
equipment and logistics equipment.
(2) Information regarding revenue, profit and loss, and other matters of the reporting segment
This information is omitted, because the Group has a single segment of the manufacturing and saleof scaffolding equipment and logistics equipment.
(3) Information regarding products and services
Revenue from external customers for each product and service is as follows.
(Thousand yen)
Name of product and service

Scaffolding
equipment

For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

5,866,146

4,970,563

1,713,909

1,434,467

2,811,663

2,576,153

10,391,719

8,981,184

4,365,516

3,697,534

4,365,516

3,697,534

14,757,236

12,678,718

Wedge binding typescaffolding
Next generation
scaffolding
Other scaffolding
equipment
Subtotal

Logistics
equipment

Pallets
Subtotal
Total

Note:

Revenue stated in other scaffolding equipment and pallets includes revenue derived from leases under
IFRS 16 of ¥538,385 thousand in the previous fiscal year and ¥451,760 thousand in the fiscal year underreview.

(4) Regional information
The information regarding revenue by region is omitted because revenue in Japan from externalcustomers account for the majority of revenue in the Consolidated Statement of Profit or Loss. In addition,
the information regarding non-current assets by region is omitted, because the carrying amount of noncurrent assets in the Consolidated Statement of Financial Position consists of non-current assets belonging
to locations in Japan.
(5) Information regarding major customers
Sales revenue to Amazon Japan G.K., a purchaser of racks for distribution warehouses, amounted to¥801,492 thousand (5.4%) in the previous fiscal year and ¥1,367,695 thousand (10.8%) in the fiscal year
under review.

14

(Per share information)
For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

Profit attributable to common shareholders ofparent (thousand yen)

1,007,788

409,665

Diluted profit (thousand yen)

1,007,788–

Weighted average number of common sharesissued (shares)

13,903,055

13,906,457

Weighted average number of common sharesused to calculate diluted earnings per share(shares)

13,903,055–

Basic earnings per share¥72.49¥29.46

Diluted earnings per share¥72.49–Note: Basic earnings per share is calculated by dividing profit attributable to common shareholders of parent by the weighted
average number of common shares outstanding during the fiscal year.

(Significant subsequent events)(Business combination through acquisition)
At the Board of Directors meeting held on March 14, 2024, the Company resolved to acquire sharesof CTR Corporation (formerly Kisaragi Co., Ltd.; hereinafter referred to as “CTR”) and make CTR a
subsidiary of the Company.
In conjunction with this share acquisition, Yagumi Corporation and Ikeda Koumuten, which are wholly
owned subsidiaries of CTR, will become second-tier subsidiaries of the Company, and Itabashi-gumi Y.K.
and Itabashi Transport Y.K., which are second-tier subsidiaries of CTR, will become third-tier subsidiariesof the Company.
1. Outline of the business combination(1) Name of the acquired company and its line of business
Name of the acquired company: CTR Corporation
Line of business of the acquired company:
Consulting services for corporate rehabilitation and corporate management, etc.
(2) Main reasons for the business combination
CTR is one of the largest scaffolding equipment installation companies in the Tokai region andone of the largest in Japan, with Yagumi Corporation as its core subsidiary (hereinafter collectively
referred to as the “Yagumi Group” including CTR and its subsidiaries). By incorporating and developing
various peripheral businesses, CTR engages in business operations with an eye toward achieving further
business growth in the future.
While the Shinwa Group, as a manufacturer, upholds the purpose of “Protecting Lives andSupporting the Future, the Yagumi Group, as users, prides themselves on being “safe workers who are
instrumental in ensuring the safety of construction projects.” The participation of the Yagumi Group in
the Shinwa Group is expected to lead to further business expansion and entry into new fields based on
the high affinity of the two Groups. We expect that our mutual collaboration will further contribute tosolving social issues surrounding construction, and therefore, have decided to acquire the shares.
15

Taking the opportunity of making Yagumi Group a subsidiary, we aim to create new value andfurther enhance corporate value by mutually generating synergies through the sharing of management
resources and strengthening business collaboration within the Shinwa Group.
(3) Date of the business combination:
April 1, 2024
(4) Legal form of the business combination:
Acquisition of shares for cash consideration(5) Name of the acquired company after the business combination:
There is no change in the name after the acquisition(6) Ratio of voting rights acquired:
100%(7) Main basis for determining the acquiring company
This was due to the fact that the Company acquired the shares for cash consideration.
2. Cost of acquisition of the acquired company and the details thereof
Consideration for the acquisition: ¥3,000 million
3. Amount of acquisition-related expenses and the line item thereof
Acquisition-related expenses for this business combination amounted to ¥76 million and are included in“Selling, general and administrative expenses” in the consolidated statements of income.
4. Amount of goodwill arising from the acquisition, reasons for it, and method and period of amortization
Not determined at this time.
5. Amounts of assets acquired and liabilities assumed on the date of business combination and their major
breakdownNot determined at this time.
(Borrowing of Funds)
The Company borrowed funds to acquire shares of CTR Corporation as follows:
1. Lender:

Mizuho Bank, Ltd.

2. Amount borrowed:¥3,600 million

3. Borrowing rate:

Short-term prime rate

4. Drawdown date

April 1, 2024

5. Borrowing period:

Six months

6. Collateral or guarantee: Unsecured and unguaranteed
7. Financial covenants:

None16