Translation
Notice: This document is a 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.

Consolidated Financial Results
for the Nine Months Ended December 31, 2021
(Based on Japanese GAAP)
February 14, 2022
Company name:

INFRONEER Holdings Inc.

Stock exchange listing: Tokyo
Stock code:
5076
Representative:

URL

https://www.infroneer.com

Representative Executive Officer andPresident

Kazunari Kibe

Inquiries:
General Manager of Financial Strategy
Scheduled date to file Quarterly Securities Report:

Kazutaka Deguchi
February 14, 2022

TEL

03-6380-8253

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–
No

Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2021
Nine months ended December 31, 2020
(Note) Comprehensive income:Millions of yen
482,288–

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%–
17,557–
17,980–10,703
–
–
–
–
–
–
–
–

Nine months ended December 31, 2021: ¥1,089 million [–%]
Nine months ended December 31, 2020: ¥– million [–%]
Earnings per share

Diluted earnings per share

Yen
37.59
–

Nine months ended December 31, 2021
Nine months ended December 31, 2020

Yen
–
–

(Notes) 1. The Company was established by joint share transfer on October 1, 2021; therefore, there are no year-on-year quarterly results.
2. The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31,2020), etc., has been applied from the beginning of the first quarter of the fiscal year ending March 31, 2022 of Maeda Corporation,
the former parent company, which has become a wholly-owned subsidiary of the Company resulting from the share transfer, and figures
for the nine months ended December 31, 2021 are based on the application of this Accounting Standard, etc.
(2) Consolidated financial position
Total assets
As of December 31, 2021
As of March 31, 2021

Net assets

Millions of yen
924,451–

Millions of yen
357,254–

Equity ratio
%
37.7
–

(Reference) Equity: As of December 31, 2021: ¥348,296 million
As of March 31, 2021: ¥– million(Notes) 1. The Company was established by joint share transfer on October 1, 2021; therefore, there are no year-on-year quarterly results.
2. The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31,2020), etc., has been applied from the beginning of the first quarter of the fiscal year ending March 31, 2022 of Maeda Corporation,
the former parent company, which has become a wholly-owned subsidiary of the Company resulting from the share transfer, and figures
as of December 31, 2021, are based on the application of this Accounting Standard, etc.

1

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
–
–

Yen
–
–

Yen
–

Total
Yen
–

Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022
Fiscal year ending March 31, 2022
40.00
40.00
(Forecast)(Notes) 1. Revision to the forecast of dividends announced most recently: Yes
2. The Company was established by joint share transfer on October 1, 2021; therefore, there are no results for the preceding period or
through the six months ended September 30, 2021.
3. Forecast of consolidated financial results for the fiscal year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
710,000

Percentages 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–
40,000–39,700–25,400–87.49(Note) Revision to the forecast of consolidated financial results announced most recently: No* Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(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
1) Changes in accounting policies due to revisions to accounting standards and other regulations:
2) Changes in accounting policies due to other reasons:YesNo3) Changes in accounting estimates:
No4) Restatement of prior period financial statements:
No(Note) Please refer to “2. Quarterly Consolidated Financial Statements and Primary Notes (3) Notes to Quarterly Consolidated Financial
Statements (Changes in accounting policies)” on page 11 for details.
(4) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2021

291,070,502 shares As of March 31, 2021

– shares

2) Number of treasury shares at the end of the period
As of December 31, 2021

11,305,691 shares As of March 31, 2021

– shares

3) Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2021

284,753,178 shares Nine months ended December 31, 2020

– shares(Notes) 1. The Company’s shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership Plan Trust are included in
the number of treasury shares deducted in the calculation of the average number of shares during the period (23,860 shares atthe end of the nine months ended December 31, 2021).
2. The Company’s shares held by Board Benefit Trust (BBT) are included in the number of treasury shares at the end of the period(657,500 shares at the end of the nine months ended December 31, 2021). The Company’s shares held by Board Benefit Trust(BBT) are included in the number of treasury shares deducted in the calculation of the average number of shares during theperiod (657,500 shares at the end of the nine months ended December 31, 2021).
* These quarterly financial results are outside the scope of quarterly review by certified public accountants or audit corporations.

2* Explanation of the proper use of performance forecast and other notes The above forecasts are based on assumptions in light of information available as of the date of announcement of this material and factors of
uncertainty that may possibly impact the future results of operation. These statements do not indicate that the Company pledges to realize
these forecast. Actual results may differ significantly from those presented herein as a result of numerous factors.
 The Company was established on October 1, 2021, as a wholly-owning parent company of Maeda Corporation, Maeda Road Construction
Co., Ltd. (hereinafter “Maeda Road”) and Maeda Seisakusho Co., Ltd. (hereinafter “Maeda Seisakusho”) by means of a joint share transfer.
Prior to the business integration, Maeda Road and Maeda Seisakusho were consolidated subsidiaries of Maeda Corporation, and as there
has been no substantial change in the scope of consolidation of the Company due to the integration, the business results of the Company
will be calculated based on full-year consolidated business results of the former Maeda Corporation.
 The current quarterly consolidated accounting period is the Company’s first quarterly consolidated accounting period, but it has beenrecorded as the nine months ended December 31, 2021.

3

○ Table of Contents

1. Qualitative Information on Quarterly Financial Results ............................................................................................. 5(1) Explanation of Operating Results ............................................................................................................................ 5(2) Explanation of Financial Position ............................................................................................................................ 6(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information ...................... 6
2. Quarterly Consolidated Financial Statements and Primary Notes .............................................................................. 7(1) Quarterly Consolidated Balance Sheet.................................................................................................................... 7(2) Quarterly Consolidated Statement of Income and Comprehensive Income ........................................................... 9(3) Notes to Quarterly Consolidated Financial Statements ......................................................................................... 11(Notes on going concern assumption) ............................................................................................................. 11(Notes in the case of significant changes in amount of shareholders’ equity) ................................................. 11(Additional information) ................................................................................................................................. 11(Changes in accounting policies)..................................................................................................................... 11(Segment information) .................................................................................................................................... 13(Business combination) ................................................................................................................................... 14(Significant subsequent event) ........................................................................................................................ 15
3. Supplementary Information....................................................................................................................................... 16(1) (Building Construction Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog .. 16(2) (Civil Engineering Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog ......... 16(3) (Road Civil Engineering Segment) Classified by Type: Orders Received, Net Sales and Backlog ..................... 17(4) Summary of Forecast of Consolidated Financial Results ..................................................................................... 18(Reference) Maeda Corporation: Supplementary Information ................................................................................. 194

1. Qualitative Information on Quarterly Financial Results
The Company was established on October 1, 2021, as a wholly-owning parent company of Maeda Corporation, Maeda
Road Construction Co., Ltd. (hereinafter “Maeda Road”) and Maeda Seisakusho Co., Ltd. (hereinafter “Maeda
Seisakusho”) by means of a joint share transfer. Prior to the business integration, Maeda Road and Maeda Seisakusho wereconsolidated subsidiaries of Maeda Corporation, and there has been no substantial change in the scope of consolidation of
the Company due to the integration. However, as the current nine months ended December 31, 2021 are the first quarterly
consolidated accounting period since the establishment of the Company, no comparison with the previous consolidated
fiscal year or the nine months ended December 31, 2020 has been done.

(1) Explanation of Operating Results
During the nine months ended December 31, 2021, the Japanese economy continued to face difficult conditions due
to an uncertain future because of concern over the spread of the novel coronavirus infection (COVID-19) due to variants,
although it showed signs of recovery owing to the relaxation of restrictions placed on socioeconomic activities due to theeffect of the spread of COVID-19 worldwide, thanks to vaccinations and various policies.
In the construction industry, although public investment remained at high levels due to the execution of related budgets,the area weakened, and a standstill was seen in signs of recovery shown for housing construction and capital investment.
Under these circumstances, the Company was established on October 1, 2021, as a wholly-owning parent companyof the three companies of Maeda Corporation, Maeda Road, and Maeda Seisakusho by means of a joint share transfer. With
the objective of the entire group achieving growth under the Company, the Company will strive to be a “company trusted
by all stakeholders” by determining to aim for the mid- to long-term state of being an “integrated infrastructure service
company,” establishing a “highly profitable and stable revenue base” without being influenced by external factors,
operating expeditiously and appropriately, such as by building an effective governance structure and promoting digitaltransformation, and strengthening the ability to deal with social changes.
In addition, the Company received the results of the initial assessment regarding the new market segments from theTokyo Stock Exchange, Inc. on October 1, 2021 and confirmed that it meets the listing criteria for the Prime Market.
Based on these results, the Company resolved at the Board of Directors’ Meeting held on December 16, 2021 to selectthe Prime Market in the new market segments of the Tokyo Stock Exchange, Inc., to which transition is scheduled on April
4, 2022, applied for selection in accordance with the prescribed procedure, and has been accepted.
For the nine months ended December 31, 2021, net sales were about ¥482.2 billion. For profit and loss, operating
profit was about ¥17.5 billion, ordinary profit was about ¥17.9 billion, and profit attributable to owners of parent was about¥10.7 billion.
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc., has been
applied from the beginning of the first quarter of the fiscal year ending March 31, 2022 of Maeda Corporation, the former
parent company, which has become a wholly-owned subsidiary of the Company resulting from the share transfer. Pleaserefer to “2. Quarterly Consolidated Financial Statements and Primary Notes (3) Notes to Quarterly Consolidated Financial
Statements (Changes in accounting policies)” for details.
Performance results by business segment are as follows.
[Building Construction]
Although the amount for work-on-hand construction contracts remained steady in the building construction due
to orders such as for large-scale construction of indoor sports facilities, and orders from the previous period such aslarge-scale construction of redevelopments, regarding construction work in Japan, net sales were about ¥152.5 billion
and segment profit was about ¥2.6 billion because volume showed little growth in the period due to the starting periodof construction.
[Civil Engineering]
Net sales were about ¥99.2 billion, and segment profit was about ¥8.8 billion in civil engineering due to factors
such as a decrease in large-scale completed construction contracts and cancellation of work-on-hand construction
contracts from the beginning of the period.
[Road Civil Engineering]
Although construction work pertaining to pavement construction, etc., and production and sales of asphalt
mixture, etc., remained strong in road civil engineering, net sales were about ¥167.2 billion and segment profit was
about ¥1.2 billion due to a rise in the cost of sales accompanying a steep rise in oil prices because of sustainment of acoordinated production cut policy in oil-producing countries.
[Machinery]5For machinery, net sales were about ¥24.9 billion, and segment profit was about ¥1.1 billion due to sales of
products related to construction machinery, etc., remaining strong and recovery from the impact of COVID-19 also
in sales of products related to industrial machinery, etc.
[Infrastructure Management]
For infrastructure management, net sales were about ¥11.8 billion, and segment profit was about ¥1.7 billion due
to facility operation profit of consolidated subsidiaries, centered on Aichi Road Concession Co., Ltd.
[Others]
Net sales were about ¥26.4 billion, and segment profit was about ¥1.1 billion.

(2) Explanation of Financial Position
Total assets as of December 31, 2021 were about ¥924.4 billion. Liabilities were about ¥567.1 billion. Net assets wereabout ¥357.2 billion. As a result of the above, equity, which is net assets minus non-controlling interests, amounted toabout ¥348.2 billion, and equity ratio was 37.7%.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-Looking Information
Based on financial results for the nine months ended December 31, 2021, the forecast of dividends for the fiscal year
ending March 31, 2022 (from April 1, 2021 to March 31, 2022), determined pending on November 15, 2021, wasannounced.

6

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)
As of December 31, 2021
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed

85,565283,547

construction contracts and other
Securities

30

Real estate for sale
Merchandise and finished goods

1,987
1,830

Costs on construction contracts in progress
Raw materials and supplies

18,103
3,039

Other
Allowance for doubtful accounts

52,403(135)

Total current assets

446,372

Non-current assets
Property, plant and equipment

166,248

Intangible assets
Right to operate public facilities

110,838

Assets related to replacement investment to operate
public facilities

23,082

Goodwill
Other

21,574
15,342

Total intangible assets

170,838

Investments and other assets
Investment securities

121,878

Deferred tax assets
Retirement benefit asset

747
12,618

Other
Allowance for doubtful accounts

5,967
(295)

Total investments and other assets

140,916

Total non-current assets

478,002

Deferred assets

75

Total assets

924,4517

(Millions of yen)
As of December 31, 2021
Liabilities
Current liabilities
Electronically recorded obligations - operating

7,231

Account payable for works in progress and other
Short-term borrowings

97,443
93,225Current portion of non-recourse loans
Income taxes payable

1,375
1,247

Advances received on construction contracts in progress
Provision for loss on construction contracts

35,420707

Other provisions
Liabilities related to right to operate public facilities

4,720
4,528

Liabilities related to replacement investment to operate
public facilities

3,604

Other

34,513

Total current liabilities

284,019

Non-current liabilities
Bonds payableNon-recourse bonds

45,00020

Long-term borrowings
Non-recourse loans

57,85815,139Deferred tax liabilities
Retirement benefit liability

17,126
16,871

Liabilities related to right to operate public facilities
Liabilities related to replacement investment to operate

106,127
21,030public facilities
Other

4,002

Total non-current liabilities

283,176

Total liabilities

567,196

Net assets
Shareholders' equity
Share capital
Capital surplus

20,000134,121

Retained earnings
Treasury shares

182,407(7,882)

Total shareholders' equity

328,647

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

20,150

Deferred gains or losses on hedges
Foreign currency translation adjustment

(5)
(37)

Remeasurements of defined benefit plans(459)

Total accumulated other comprehensive income

19,648Non-controlling interests

8,958

Total net assets

357,254

Total liabilities and net assets

924,4518

(2) Quarterly Consolidated Statement of Income and Comprehensive Income
Quarterly consolidated statement of income
Nine months ended December 31, 2021
(Millions of yen)
Nine months ended
December 31, 2021
Net sales
Net sales of completed construction contracts
Sales in other businesses

274,153
208,134

Total net sales

482,288

Cost of sales
Cost of sales of completed construction contracts

241,524

Cost of sales in other businesses

182,406

Total cost of sales

423,930

Gross profit
Gross profit on completed construction contracts
Gross profit - other business

32,62825,728

Total gross profit

58,357

Selling, general and administrative expenses

40,800Operating profit

17,557

Non-operating income
Interest income
Dividend income

174
2,049

Share of profit of entities accounted for using equity method
Other

311
482

Total non-operating income

3,017

Non-operating expenses
Interest expenses

1,889

Other

705

Total non-operating expenses

2,594

Ordinary profit

17,980Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities

126
3,321

Other

319

Total extraordinary income

3,767

Extraordinary losses
Loss on retirement of non-current assets
Other

287
136

Total extraordinary losses

423

Profit before income taxes

21,324

Income taxes - current

5,294

Income taxes - deferred

2,665

Total income taxes

7,959

Profit13,364

Profit attributable to non-controlling interests

2,661

Profit attributable to owners of parent

10,7039

Quarterly consolidated statement of comprehensive income
Nine months ended December 31, 2021
(Millions of yen)
Nine months ended
December 31, 2021
ProfitOther comprehensive income

13,364

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(12,019)29

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

(31)
(289)

Share of other comprehensive income of entities accounted
for using equity method

35

Total other comprehensive income(12,275)

Comprehensive income

1,089

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,829

Comprehensive income attributable to non-controllinginterests

(739)

10

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in the case of significant changes in amount of shareholders’ equity)
The Company was established on October 1, 2021, as a wholly-owning parent company of Maeda Corporation, Maeda
Road Construction Co., Ltd. and Maeda Seisakusho Co., Ltd. by means of a joint share transfer (hereinafter the “Share
Transfer”). Due to the Share Transfer, share capital was ¥20,000 million, capital surplus was ¥134,121 million, andtreasury shares were negative ¥7,882 million for the nine months ended December 31, 2021.
(Additional information)
The Company was established on October 1, 2021, as a wholly-owning parent company of Maeda Corporation, Maeda
Road Construction Co., Ltd. and Maeda Seisakusho Co., Ltd. by means of a joint share transfer.
The Company, wholly-owning parent company by share transfer, has inherited the quarterly consolidated financial
statements of Maeda Corporation, former parent company which has become a wholly-owned subsidiary of the Company
resulting from the share transfer, for creating the Company’s quarterly financial statements.
Transactions to offer the Company’s shares to employees, etc. through trust
Board Benefit Trust (BBT)The Company’s consolidated subsidiary Maeda Corporation conducts transactions to offer shares of the Company todirectors (excluding outside directors) and executive officers (hereinafter collectively the “Directors”) of Maeda
Corporation through trust, in order to clarify a linkage among the Directors’ rewards, the Maeda Corporation’s financial
result, and the value of stock, and to strengthen incentives to the Directors aiming to increase the corporate value for the
purposes of sharing values with stockholders.
1. Descriptions of transactions
Maeda Corporation introduced a performance-based stock compensation plan called “Board Benefit Trust” (hereinafter
the “BBT”) by the resolution approved at the 74th general shareholders meeting held on June 21, 2019.
Under the BBT, in accordance with the Regulations on Stock Benefits for Officers (hereinafter the “Regulations”)
stipulated by Maeda Corporation, points will be granted to the Directors according to the standards prescribed by Maeda
Corporation based on the degree of achievement of business results, etc., and on a certain date immediately after the endof the Medium Term Business Plan period, the Company’s shares will be granted to the Directors who satisfy therequirements for the beneficiaries set forth in the Regulations (hereinafter the “Beneficiaries”) in proportion to the numberof points granted to the Beneficiaries. However, if the Beneficiaries satisfy the requirements set forth in the Regulations,cash equivalent to the fair value of the Company’s shares will be provided for a certain percentage of the points.
2. The Company’s shares remaining in trust
The Company’s shares remaining in trust are recorded as treasury shares in the consolidated balance sheet at the bookvalue in trust (excluding the amount as ancillary expenses). The book value and number of shares of the relevant treasury
shares are ¥549 million and 657 thousand shares as of December 31, 2021.
Accounting estimates concerning COVID-19
It is still unclear when the COVID-19 pandemic will end, but although a decrease in net sales and corresponding decreasein profit are expected to a certain extent in some group companies, the impact accompanying the spread of COVID-19 on
the Company Group’s performance is expected to be immaterial. Taking this into overall consideration for the nine months
ended December 31, 2021, net sales of completed construction contracts have been calculated on the assumption that there
will be no significant effect on estimates as of the end of the period, and goodwill has been valuated, etc., in accounting
estimates.
(Changes in accounting policies)
Application of Accounting Standard for Revenue Recognition, etc.
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter the“Revenue Recognition Standard”), etc., has been applied from the beginning of the first quarter of the current fiscal year,
and revenue is recognized at the amount expected to be received in exchange for the promised goods or services whencontrol of the goods or services is transferred to the customer.
Previously, the Company Group applied the percentage-of-completion method for construction projects for which the11outcome of construction activity is deemed certain during the course of the activity, and the completed-contract method
for other projects. From the beginning of the first quarter of the current fiscal year, for construction projects for which thedegree of completion pertaining to the satisfaction of performance obligations can be reasonably estimated, the Company
Group recognizes revenue over a certain period of time as performance obligations are satisfied. The Company Group
primarily applies the input method based on the cost incurred as a method of estimating the degree of completion pertaining
to the satisfaction of performance obligations. Except for the initial stage of a contract, the Company Group recognizes
revenue using the cost recovery method for construction projects for which the degree of completion pertaining to thesatisfaction of performance obligations cannot be reasonably estimated but for which the Company Group expects torecover the costs incurred. For construction contracts with a very short period between the commencement date of thetransaction in the contract and the date when the performance obligations are expected to be fully satisfied, the Company
Group recognizes revenue when the performance obligations are fully satisfied.
For the application of the Revenue Recognition Standard, etc., the Company Group has followed the transitional
treatment prescribed in the proviso to Paragraph 84 of the Revenue Recognition Standard, and the cumulative effect ofretroactively applying the new accounting policies prior to the beginning of the first quarter of the current fiscal year has
been added to or deducted from retained earnings at the beginning of the first quarter of the current fiscal year, and the
new accounting policies have been applied from the balance at the beginning of said period. However, the Company Group
has applied the method prescribed in Paragraph 86 of the Revenue Recognition Standard and has not applied the new
accounting policies retrospectively to contracts for which almost all revenue amounts were recognized in accordance withthe previous treatment prior to the beginning of the first quarter of the current fiscal year. In addition, the Company Group
has applied the method prescribed in Paragraph 86, Subparagraph 1 of the Revenue Recognition Standard to account forcontract changes made prior to the beginning of the first quarter of the current fiscal year based on the contract terms afterreflecting all contract changes, and has added or subtracted its cumulative effect to retained earnings at the beginning of
the first quarter of the current fiscal year.
As a result, operating profit increased by ¥32 million, as net sales and cost of sales for the nine months ended December
31, 2021, increased by ¥4,163 million and ¥4,130 million, respectively. Due to an increase of ¥128 million in non-operating
income, ordinary profit and profit before income taxes both increased by ¥161 million. In addition, the balance of retained
earnings at the beginning of the current period decreased by ¥177 million.
Application of Accounting Standard for Fair Value Measurement, etc.
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter the “Fair
Value Accounting Standard”), etc., has been applied from the beginning of the first quarter of the current fiscal year, andthe new accounting policies prescribed by the Fair Value Accounting Standard, etc., will be prospectively applied inaccordance with the transitional treatment prescribed in Paragraph 19 of the Fair Value Accounting Standard and Paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). The effect of theapplication of the Fair Value Accounting Standard, etc., on the quarterly consolidated financial statements is immaterial.

12

(Segment information)
I. For the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
1. Information on net sales and profit (loss) by reportable segment and income breakdown(Millions of yen)

Reportable segment

Net sales
Goods transferred ata point in time
Goods transferredover time
Income fromcontracts withcustomers
Other income
Net sales to outside
customers
Inter-segment net
sales or transfers
Total
Segment profit

InfraRoad
structure
Civil Engi- Machinery
Manageneering
ment

Amountrecorded inquarterly
Adjustconsolment
idated(Note 2) statement ofincome(Note 3)

Total

Others(Note 1)

Total

11,815

165,679

18,805

184,484–

184,484

3,871–

284,622

7,664

292,286–

292,286

167,080

20,848

11,815450,302

26,469476,771–476,771

–

123

4,058

52

5,516

－

5,516

–

5,516

152,592

99,246167,204

24,907

11,867455,819

26,469482,288–482,288

1,231

822

1,895

1,045

–

4,995

11,03516,030(16,030)－

153,824
2,684

100,068
8,859

169,100
1,210

25,953
1,171

11,867
1,713

460,814
15,63837,504
1,193

498,319
16,832(16,030)
725

482,288
17,557

Building
Construction

Civil
Engineering

5,388

1,779

129,719

16,976145,921

97,46637,361

151,310

99,246

1,281(Notes) 1. “Others” is the segment which is not included in reportable segments, namely businesses operated by somesubsidiaries.
2. Adjustment of segment profit includes inter-segment transactions of ¥725 million.
3. Adjustments are made to reconcile segment profit to operating profit reported on the quarterly consolidated
statement of income.

2. Matters concerning changes in reportable segments
From the nine months ended December 31, 2021, business segments have been reviewed and determined to be the fivereportable segments of building construction, civil engineering, road civil engineering, machinery, and infrastructure
management because of the transition to a holding company structure due to joint share transfer.

13

(Business combination)
1. Common control transactions, etc.
(1) Descriptions of transactions
1) Name of combined business and details of operations
Wholly-owned subsidiaries by share transfer:
Maeda Corporation (civil engineering and construction contracts,
design, and operation of public infrastructure, etc.)
Maeda Road Construction Co., Ltd. (construction, manufacturing,and sales)
Maeda Seisakusho Co., Ltd. (sales, service, rental, etc. of
construction materials and products)2) Business combination date
October 1, 2021
3) Legal form of business combination
Establishment of a holding company by joint share transfer4) Name of business after combination
Wholly-owning parent company by share transfer: INFRONEER Holdings Inc.
5) Other matters concerning descriptions of transactions
In order for the entire group to work together to achieve sustainable growth in the face of significant changes in thebusiness environment in the future, we believe it is essential for Maeda Corporation, Maeda Road Construction Co.,
Ltd. and Maeda Seisakusho Co., Ltd. (hereinafter the “Three Companies”) to work more closely together than everbefore, and to maximize synergies for the entire group by building a solid management base that can respond to changes
in the business environment and optimally allocating management resources. We firmly believe that carrying out group
strategies in an integrated manner by transitioning to a holding company structure through the business combination
will contribute to the enhancement of the corporate value of the Three Companies and the group as a whole.
(2) Descriptions of implemented accounting treatment
Based on the “Accounting Standard for Business Combinations” and “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures,” transactions are treated as transactions with noncontrolling interests, under common control transactions, etc.
(3) Matters concerning additional acquisition of subsidiary shares
Breakdown of acquisition cost and consideration by type
Fair value of the Company’s common stock issued on the business combination date
Acquisition cost

¥94,203 million¥94,203 million(4) Transfer ratio by share type, calculation method thereof, and number of issued shares
1) Transfer ratio by share type1.00 share of common stock of the Company was allotted for each share of common stock of Maeda Corporation,
2.28 shares of common stock of the Company were allotted for each share of common stock of Maeda Road, and 0.58
shares of common stock of the Company were allotted for each share of common stock of Maeda Seisakusho.
2) Calculation method of share transfer ratio
Calculation of the share transfer ratio was commissioned to several financial advisors, and the ratio has been
calculated upon discussion between the parties concerned based on the reports submitted from the advisors.
3) Number of issued shares
391,539,797 shares

142. Common control transactions, etc.
(1) Descriptions of transactions
1) Name of subject operations and details of those operations
Name of operations: Management of bonds pertaining to issue by the Company’s wholly-owned subsidiary Maeda
Corporation
Details of operations: Operations pertaining to bonds issued by Maeda Corporation
2) Business combination date
December 20, 2021
3) Legal form of business combination
Absorption-type company split making Maeda Corporation the split company and the Company the succeedingcompany
4) Name of business after combination
No change.
5) Other matters concerning descriptions of transactions
The Company was established on October 1, 2021, as a wholly-owning parent company of Maeda Corporation, Maeda
Road and Maeda Seisakusho by means of a joint share transfer. The business combination centralizes the Company
Group’s bond management operations in the Company through the Company’s inheritance of the rights and obligations
for bond management of Maeda Corporation, the Company’s wholly-owned subsidiary.
(2) Descriptions of implemented accounting treatment
Based on the “Accounting Standard for Business Combinations” and “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures,” transactions are treated as transactions undercommon control.
(Significant subsequent event)Not applicable.

15

3. Supplementary Information(1) (Building Construction Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog(Millions of yen)

1. Orders Received

Nine months ended
December 31, 2021
Amount%Public Works

65,751

36.3

Private Works

115,312

63.6

Overseas

133

0.1

Total

181,197

100.0

2. Net Sales(Millions of yen)
Nine months ended
December 31, 2021
Amount%Public Works

26,53817.3

Private Works

127,274

82.7

Overseas

10

0.0

Total

153,824100.0

3. Backlog(Millions of yen)
Nine months ended
December 31, 2021
Amount%Public Works

83,251

22.0

Private Works

295,549

78.0

Overseas

134

0.0

Total

378,935100.0(Note) Net sales include inter-segment transactions.

(2) (Civil Engineering Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog
1. Orders Received(Millions of yen)
Nine months ended
December 31, 2021
Amount%Public Works

23,471

31.2

Private Works

50,252

66.9

Overseas

1,397

1.9

Total

75,122100.0

2. Net Sales(Millions of yen)
Nine months ended
December 31, 2021
Amount%Public Works

56,46956.4

Private Works

42,13842.1

Overseas

1,461

1.5

Total

100,068

100.0

16

(Millions of yen)

3. Backlog

Nine months ended
December 31, 2021
Amount%Public Works

126,893

45.4

Private Works

152,115

54.4

Overseas

603

0.2

Total

279,612100.0(Note) Net sales include inter-segment transactions.

(3) (Road Civil Engineering Segment) Classified by Type: Orders Received, Net Sales and Backlog(Millions of yen)

1. Orders Received

Nine months ended
December 31, 2021
AmountPavement%

99,35357.0

Civil EngineeringWorks

21,710

12.5

Manufacturing/Sales

52,877

30.3

419

0.2

174,361

100.0

Construction

Other
Total
2. Net Sales(Millions of yen)
Nine months ended
December 31, 2021
Amount%Pavement
Construction

94,783

56.1

Civil EngineeringWorks

21,019

12.4

Manufacturing/Sales

52,877

31.3

419

0.2

169,100

100.0

Other
Total
3. Backlog(Millions of yen)
Nine months ended
December 31, 2021
AmountPavement
Construction%

51,24979.6

13,141

20.4

Manufacturing/Sales

－

－

Other

－

－

64,390100.0

Civil Engineering
Works

Total

(Note) Net sales include inter-segment transactions.

17

(4) Summary of Forecast of Consolidated Financial Results(Millions of yen)
Nine months ended
December 31, 2021
Results for the current
periodNet sales

Fiscal year ending March 31, 2022
Full-year forecast

Progress482,288710,000

67.9%

Building Construction

152,592

227,200

67.2%

Civil Engineering

99,246150,300

66.0%

Road Civil Engineering

167,204

238,000

70.3%

Machinery

24,90733,70073.9%

Infrastructure Management

11,86723,000

51.6%

Other

26,46937,80070.0%

58,357

95,600

12.1%

13.5%

14,31324,900

9.4%

11.0%

16,81423,500

16.9%

15.6%

15,662

24,900

9.4%

10.5%

5,315

7,400

21.3%

22.0%

2,967

10,300

25.0%

44.8%

3,283

4,600

12.4%

12.2%

Selling, general and administrative
expenses

40,80055,60073.4%

Operating profit

17,55740,00043.9%

Ordinary profit

17,98039,70045.3%

Profit attributable to owners of parent

10,70325,40042.1%

Gross profit

Building Construction

Civil Engineering

Road Civil Engineering

Machinery

Infrastructure Management

Other(Note) Percentages indicate ratio of gross profit to net sales.

18

61.0%

57.5%

71.6%

62.9%

71.8%

28.8%

71.4%

(Reference) Maeda Corporation: Supplementary Information
1) Summary of non-consolidated financial results forecast(Millions of yen)
Nine months ended

Fiscal year ending

December 31, 2021
Results for the
Results for thepreviouscurrent period YoY Change
periodMarch 31, 2022

Net sales

Full-year
forecast

YoY Change

Progress

262,698

254,814(7,884)

386,000

19,91366.0%

260,516

251,588(8,928)375,750

12,711

67.0%

153,856

152,542(1,314)

226,400

12,006

67.4%

106,660

99,046(7,613)

149,350

705

66.3%

965

796

(168)

7,500

6,076

10.6%

1,216

2,429

1,212

2,750

1,125

88.3%

37,05632,402(4,653)56,000

2,329

14.1%

12.7%

(1.4)%

14.5%(0.2)%

35,54430,247(5,297)47,020(4,506)

13.6%

12.0%

(1.6)%

12.5%(1.7)%

Building

14,057

13,992(64)

24,2503,418

Construction

9.1%

9.2%

0.1%

10.7%

1.0%

Civil

21,487

16,254(5,232)

22,770(7,924)

Engineering

20.1%

16.4%

(3.7)%

15.2%(5.4)%

Infrastructure

950

791

(159)

7,500

6,090

Management

98.5%

99.3%

0.8%

100.0%

1.0%

560

1,363

802

1,480

744

46.1%

56.1%

10.0%

53.8%

8.6%

Selling, general andadministrative expenses

17,916

20,7492,833

26,500

2,552

78.3%

Operating profit

19,14011,652(7,487)29,500

(222)

39.5%

Ordinary profit

34,87019,341(15,528)

36,600(8,641)

52.8%

Profit29,632

14,713(14,919)

27,000(9,247)54.5%

Construction Total
Building
Construction
Civil
Engineering
InfrastructureManagement
Real Estate
Gross profit

Construction Total

Real Estate

57.9%

64.3%

57.7%

71.4%

10.6%

92.1%

(Note) Percentages indicate ratio of gross profit to net sales.
2) Non-consolidated forecast of orders received for the construction business(Millions of yen)
Fiscal year ending
March 31, 2022
Full-year forecast

Nine months ended
December 31, 2021%

Results for thecurrent period

Progress (%)

Building Construction

260,000

6.0

179,915

69.2

Civil Engineering

160,000(2.2)

73,975

46.2

Total

420,000

2.7

253,890

60.5(Note) Percentages indicate year-on-year changes.

19