Note: This document has been translated from a part of 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.

Consolidated Financial Statements
for the First Quarter of the Fiscal Year Ending March 31, 2025 [J-GAAP]
August 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
Date to start dividends distribution: ―Supplementary materials for results: None
Results briefing meeting held:
None*Amounts below one million yen have been rounded down.

1. Consolidated results for the first quarter ended June 30, 2024 (April 1, 2024, to June 30, 2024)(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

Three months ended June 30, 2024
Three months ended June 30, 2023
(Note) Comprehensive income:Millions of yen%

Millions of yen%

Millions of yen%

31,46327,603

14.0
―

2,062
2,010

2.6
―

2,282
2,378

(4.0)
―

Three months ended June 30, 2024:
Three months ended June 30, 2023:
Profit Attributable to
Owners of Parent
Millions of yen

429
1,533

Three months ended June 30, 2024
Three months ended June 30, 2023

¥2,237 million [27.7%]¥1,751 million [ ― %]Profit per Share%

Diluted Profit per ShareYen(72.0)
―

Yen

11.49
41.03

―
―

(Note) Since the Company was established on April 3, 2023, through a sole share transfer, there is no rate of change from the same
period of the previous fiscal year for the three months ended June 30, 2023.

(2) Consolidated financial position

Total Assets

Net Assets

Millions of yen

91,96392,645

As of June 30, 2024
As of March 31, 2024
(Reference) Equity:

As of June 30, 2024:
As of March 31, 2024:

Yen

72.1
73.5

¥66,326 million¥68,131 million

SecondQuarter-end

Yen

―
―

Fiscal year ended March 31, 2024
Fiscal year ending March 31, 2025
Fiscal year ending March 31, 2025
(forecast)%

69,154
69,152

2. Dividends
First
Quarter-end

Equity Ratio

Millions of yen

Annual Dividends
Third
Quarter-end

Year-end

Yen

27.00
27.00

Total
Yen

Yen

―

27.00

54.00

―

27.00

54.00

(Note) Revisions to the most recently announced forecast of cash dividends in the current quarter: None

3. Consolidated business forecasts for the fiscal year ending March 31, 2025 (April 1, 2024, to March 31, 2025)(Percentage figures for the full year indicate the rate of change from the previous fiscal year.
Percentage figures for the first six months indicate the rate of change from the same period of the previous fiscal year.)
Profit Attributable toProfitNet Sales
Operating Income
Ordinary Income
Owners of Parent
per ShareFirst half
Full year

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

64,300136,500

12.8
11.3

3,500
8,500

(12.4)
2.8

3,700
9,000

(17.5)
9.4

2,400
6,100

(21.2)
7.4

64.20
163.18(Note) Revisions to the most recently announced consolidated business forecasts in the current quarter: None

* Notes(1) Significant changes in scope of consolidation during the period: Yes

Newly included: 1 company, Keystone Pacific Property Management, LLC(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.:
2) Changes in accounting policies other than 1) above:3) Changes in accounting estimates:
4) Restatement of revisions:

None
None
None
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 June 30, 2024

41,180,306 shares

As of March 31, 2024

41,180,306 shares

2)

As of June 30, 2024

3,797,412 shares

As of March 31, 2024

3,797,412 shares

3)

Quarter ended
June 30, 2024

37,382,894 shares

Quarter ended
June 30, 2023

37,383,123 shares* Review by certified public accountants or audit corporations on the attached quarterly consolidated financial
statements: None
* 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. Overview of business results, etc.;(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 theuse of forecasts.

(Review by certified public accountants or audit corporations on the attached quarterly consolidated financial statements)
The Company plans to disclose the quarterly financial report with an accompanying review report after the review iscompleted.
Planned date of disclosure: August 13, 2024

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

Table of Contents for the Attached Document
1. Overview of business results, etc. .............................................................................................................................. 2(1) Overview of business results for the cumulative period of the current quarter on a consolidated basis ................ 2(2) Overview of financial position for the cumulative period of the current quarter on a consolidated basis.............. 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 to quarterly consolidated financial statements.............................................................................................. 8(Notes on segment information, etc.) ..................................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ................................................................... 8(Notes on the going concern assumption) .............................................................................................................. 81

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

1. Overview of business results, etc.
(1) Overview of business results for the cumulative period of the current quarter on a consolidated basis

During the first quarter of the fiscal year ending March 31, 2025, the Japanese economy continued to be on a moderate
recovery trend with the improving employment and income situation, but remained in severe economic conditions withthe surging raw material prices caused by the unstable international situation, increasing commodity prices caused by the
progress in depreciation of the yen, and other impact. 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, increasing commodity 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 quarter of the fiscal year ending March 31, 2025, steady renewal of existing management contracts andorders for construction-related services resulted in net sales increasing by 14.0% year on year to 31,463 million yen.
In terms of profit, efforts to secure profits such as by revising fees and reviewing specifications and operational
efficiency resulted in operating income increasing by 2.6% year on year to 2,062 million yen, but foreign exchange gains
decreasing resulted in ordinary income decreasing by 4.0% year on year to 2,282 million yen, which coupled withrecognition of loss on litigation resulted in profit attributable to owners of parent decreasing by 72.0% year on year to429 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, steady renewal of existing management contracts and orders for construction-related services
resulted in net sales for the segment for the first quarter of the fiscal year ending March 31, 2025, increasing by 7.2%
year on year to 19,375 million yen.
In terms of profit, efforts to revise fees, review specifications, and reduce costs resulted in segment income increasing
by 5.6% year on year to 1,777 million yen.

Residential Management and Operations

With regard to Residential Management and Operations, which mainly consists of managing rental apartment buildings
and condominiums to own and public housing, contribution of the business performance of Hawaiiana Holdings
Incorporated, which became a consolidated subsidiary at the end of the second quarter of the fiscal year ended March 31,
2024, and Keystone Pacific Property Management, LLC, which became a consolidated subsidiary from the first quarterof the fiscal year ending March 31, 2025, resulted in net sales for the segment for the first quarter of the fiscal year ending
March 31, 2025, increasing by 53.9% year on year to 7,264 million yen and segment income increasing by 11.1% year
on year to 492 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, steady renewal of existing management
contracts resulted in net sales for the segment for the first quarter of the fiscal year ending March 31, 2025, increasing
by 0.5% year on year to 3,475 million yen.
In terms of profit, in addition to improving the cost ratio by revising fees, efforts to reduce costs with a focus on
realignment of personnel assignments resulted in segment income increasing by 5.2% year on year to 635 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, income from sublease contracts
decreasing resulted in net sales for the segment for the first quarter of the fiscal year ending March 31, 2025, decreasing
by 2.1% year on year to 780 million yen.
In terms of profit, personnel expenses and other costs increasing resulted in segment income decreasing by 18.0% year
on year to 125 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 quarter of the fiscal
year ending March 31, 2025, increasing by 3.1% year on year to 642 million yen.
In terms of profit, despite efforts to reduce costs, highly profitable contracts decreasing resulted in segment income
decreasing by 50.9% year on year to 41 million yen.

2

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(2) Overview of financial position for the cumulative period of the current quarter on a consolidated basis

Total assets at the end of the first quarter of the fiscal year ending March 31, 2025, decreased by 681 million yen, or
0.7%, from the end of the previous fiscal year to 91,963 million yen, mainly due to collection of trade receivables leading
to accounts receivable - trade decreasing and investment securities decreasing.
Liabilities decreased by 683 million yen, or 2.9%, from the end of the previous fiscal year to 22,809 million yen,mainly due to payment of accounts payable - trade.
Net assets increased by 1 million yen, or 0.0%, from the end of the previous fiscal year to 69,154 million yen, mainly
due to non-controlling interests increasing. The equity ratio decreased by 1.4 percentage points from the end of theprevious fiscal year to 72.1%.

(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 8, 2024, and there
are no changes to the full-year business forecasts.

3

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

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
Software
Goodwill
Trademark right
Customer-related intangible assets
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Long-term prepaid expenses
Retirement benefit asset
Leasehold and guarantee deposits
Membership
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
TOTAL ASSETS

Fiscal year ended
March 31, 2024
(As of March 31, 2024)(Millions of yen)First quarter ended
June 30, 2024
(As of June 30, 2024)

31,23918,664
154
1,455
289
22
3,690
(6)
55,50932,441
15,216
147
1,451
325
36
5,297
(18)
54,899

3,808
61
657
1,211
1,210
6,948

3,784
58
696
1,211
1,490
7,242

318
2,830
320
264
185
54
3,974

301
5,625
337
2,044
274
62
8,645

18,865
839
400
16
965
3,063
333
1,800
(71)
26,212
37,136
92,645

15,399
864
155
18
998
3,064
333
414
(71)
21,17637,064
91,963*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 First Quarter of the Fiscal Year Ending March 31, 2025

LIABILITIESCurrent liabilities
Notes and accounts payable－trade
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
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
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

Fiscal year ended
March 31, 2024
(As of March 31, 2024)(Millions of yen)First quarter ended
June 30, 2024
(As of June 30, 2024)

8,015
227
261
3,565
822
1,177
1,416
784
892
751
17,914

4,955
226
336
2,843
460
1,501
1,713
936
101
3,215
16,290

285
981
1,219
4
220
1,793
437
34
601
5,578
23,492

284
1,212
1,279
5
199
1,793
447
64
1,231
6,518
22,8093,000
11,33962,382(10,328)
66,3933,000
9,801
61,886(10,328)
64,358

2,511
(606)
(166)
1,738
1,020
69,152
92,645

2,347
(229)
(150)
1,967
2,827
69,154
91,963*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 First Quarter of the Fiscal Year Ending March 31, 2025

(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
Commission 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
Share of loss of entities accounted for using equity method
Loss on sales and retirement of non-current assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on litigation
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

Three months ended
June 30, 2023
(April 1, 2023, toJune 30, 2023)(Millions of yen)Three months ended
June 30, 2024
(April 1, 2024, toJune 30, 2024)

189
2,473
49
0
79
289
132
329
86
126
92
84
(0)
51
344
4,329
2,010

144
4,202
59
1
113
391
314
439
205
151
258
97
―
106
517
7,004
2,062

73
14
―
16
288
26
418

71
15
173
―
8
25
293

6
17
―
17
9
50
2,378

11
16
16
0
26
72
2,282

―
―

448
448

―
―
2,378
444
382
827
1,550
16
1,533

1,322
1,322
1,408
520
372
892
516
86
429

27,603
21,263
6,339*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

6

31,46322,396
9,066

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

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

Three months ended
June 30, 2023
(April 1, 2023, toJune 30, 2023)(Millions of yen)Three months ended
June 30, 2024
(April 1, 2024, toJune 30, 2024)

413
(251)
20
17
200
1,751

(173)
1,765
16
111
1,721
2,237

1,721
30

1,952
285

1,550

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

7

516

NIPPON KANZAI Holdings Co., Ltd. (9347) Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2025

(3) Notes to quarterly consolidated financial statements(Notes on segment information, etc.)
Three months ended June 30, 2023 (April 1, 2023, to June 30, 2023)
Information on net sales, and income or losses for each reportable segment(Millions of yen)Amountrecorded on
Adjustments
quarterly(Note 1)
consolidated
statements ofincome (Note 2)

Reportable segment
Building
Residential
Environmental Real EstateManagement Management
Facilities
Fund
and
and
Management Management
Operations
Operations

Other
Businesses

Total

Net sales
Net sales toexternal customers
Inter-segment
net sales and transfer
Total
Segment income

18,079

4,721

3,457

796

548

27,603―27,603

―

―

―

―

75

75

(75)

―

18,079

4,721

3,457

796

623

27,678(75)

27,603

1,682

443

604

152

83

2,967

(957)

2,010

(Note) 1. Adjustments of -957 million yen for segment income are elimination of inter-segment transactions and unallocated general andadministrative expenses.
2. Segment income has been adjusted to operating income described in quarterly consolidated statements of income.

Three months ended June 30, 2024 (April 1, 2024, to June 30, 2024)
Information on net sales, and income or losses for each reportable segment(Millions of yen)Amountrecorded on
Adjustments
quarterly(Note 1)
consolidated
statements ofincome (Note 2)

Reportable segment
Building
Residential
Environmental Real EstateManagement Management
Facilities
Fund
and
and
Management Management
Operations
Operations

Other
Businesses

Total

Net sales
Net sales toexternal customers
Inter-segment
net sales and transfer
Total
Segment income

19,375

7,264

3,475

780

567

31,463―

31,463

―

―

―

―

75

75

(75)

―

19,375

7,264

3,475

780

642

31,538(75)

31,463

1,777

492

635

125

41

3,072

(1,010)2,062(Note) 1. Adjustments of -1,010 million yen for segment income are elimination of inter-segment transactions and unallocated generaland administrative expenses.
2. Segment income has been adjusted to operating income described in quarterly consolidated statements of income.

(Notes on significant changes in the amount of shareholders’ equity)

In the first quarter of the fiscal year ending March 31, 2025, Keystone Pacific Property Management, LLC, a nonconsolidated subsidiary accounted for using the equity method to date, increased in significance and is thus included in
the scope of consolidation. This resulted in the balance of capital surplus at the beginning of the period decreasing by
1,076 million yen and retained earnings increasing by 83 million yen.
In addition, Nippon Kanzai USA, Inc., a consolidated subsidiary, increased its stake in the Company. This resulted incapital surplus decreasing by 461 million yen.
As a result, capital surplus stood at 9,801 million yen and retained earnings at 61,886 million yen at the end of the firstquarter of the fiscal year ending March 31, 2025.

(Notes on the going concern assumption)
Not applicable.

8