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

Summary of Consolidated Financial Results
for the Year Ended March 31, 2021
(Based on Japanese GAAP)
Company name:May 14, 2021

KYOWA EXEO CORPORATION

Stock exchange listing: Tokyo
Stock code:
1951

URL

https://www.exeo.co.jp/

President and CEO
Director and Managing Operating
Inquiries:
Officer, General Manager,Accounts &Finance Division
Scheduled date of ordinary general meeting of shareholders:
Representative:

Tetsuya Funabashi
Hideo Higuchi

TEL

03-5778-1105

June 23, 2021

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

June 23, 2021
June 24, 2021

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

Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating results
Net salesYear ended March 31, 2021
Year ended March 31, 2020

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
36,62317.8
38,18624.5
24,19255.0
31,100(1.9)
30,669(8.3)
15,603(61.2)

Millions of yen
573,339
524,574

%
9.3
23.8

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
217.058.8
8.2
6.4
139.48
5.9
7.1
5.9

Yen
217.33139.75

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
491,574444,905

Millions of yen
288,884
270,109

Cash flows fromoperating activities
Millions of yen
6,301
17,299Cash flows frominvesting activities
Millions of yen(9,249)(17,085)

Net assets per share
%
58.1
59.9

Yen
2,576.78
2,395.16(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(1,750)41,246
4,227
46,012

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

40.00
41.00

–
–

40.00
41.00

80.00
82.00

8,972
9,170

57.2
37.7

3.4
3.3

–

44.00

–

44.00

88.00

1

40.4

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
Net sales
Full year

Millions of yen
560,000

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
(2.3)
37,0001.0
37,800(1.0)
24,100(0.4)
217.65

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

117,812,419 shares As of March 31, 2020

117,812,419 shares

Number of treasury shares at the end of the period
As of March 31, 2021

6,955,251 shares As of March 31, 2020

6,566,121 shares

111,316,723 shares Year ended March 31, 2020

111,652,764 shares

Average number of shares during the period
Year ended March 31, 20212

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Securities
Costs on construction contracts in progress
Other
Allowance for doubtful accounts
Total current assets

47,55042,785

166,098

204,657

898

910

42,542
7,013

43,564
8,388

(94)

(80)

264,009300,227

34,44738,394

11,81858,654

13,12859,848Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, vehicles, tools, furniture and fixtures, net
Land
Other, net

2,757

2,003

107,677

113,375

Goodwill
Other

7,640
5,136

5,949
4,229

Total intangible assets

12,777

10,179Investments and other assets
Investment securities

34,72137,707Retirement benefit asset
Other

17,059
9,096

21,641
8,994

(436)

(550)

Total property, plant and equipment
Intangible assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

360,44067,792

180,895

191,347444,905

491,574(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts

60,03774,890

Short-term borrowings
Current portion of bonds payable

6,817
–

19,50910,000

Income taxes payable
Advances received on construction contracts in progress

7,863
9,762

6,766
8,080

Provision for bonuses
Provision for bonuses for directors (and other officers)

4,559
478

4,990
472

Provision for warranties for completed construction
Provision for loss on construction contracts

130
2,610

148
1,384

Other

25,872

29,967

Total current liabilities

118,132

156,212

Bonds payable
Long-term borrowings

30,0008,965

20,000
6,837

Deferred tax liabilities
Provision for retirement benefits for directors (and other

5,681

8,328

Non-current liabilities

officers)
Retirement benefit liability

750

648

8,436

7,963

Other

2,828

2,699

Total non-current liabilities

56,662

46,477

174,795

202,689

Share capital
Capital surplus

6,888
49,604

6,888
49,844Retained earnings
Treasury shares

211,195(11,795)

226,294(13,221)

Total shareholders' equity

255,893

269,805

4,210

6,451

Foreign currency translation adjustment
Remeasurements of defined benefit plans

193
6,156

(268)
9,665

Total accumulated other comprehensive income

10,55915,848

318
3,337

262
2,968

270,109288,884444,905

491,574

Total liabilities
Net assets
Shareholders' equity

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

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Net sales of completed construction contracts

524,574

573,339

Cost of sales of completed construction contracts

456,247

497,474

Gross profit on completed construction contracts

68,32775,865

Selling, general and administrative expenses

37,226

39,241

Operating profit

31,10036,623

36

25

Dividend income
Foreign exchange gains

749
–

1,111
483

Rental income from land and buildings
Other

415
875

424
815

2,076

2,861

208

148

411
70

406
325

1,815

418

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses
Impairment loss
Loss on retirement of non-current assets
Other
Total non-operating expenses

2,507

1,297

30,66938,186658

478

Total extraordinary income

658

478

Extraordinary losses
Goodwill impairment loss

4,473

–

Total extraordinary losses

4,473

–

Profit before income taxes

26,854

38,665

Income taxes - current
Income taxes - deferred

11,438(240)

14,26173

Total income taxes

11,19814,335

Profit15,65624,330Ordinary profit
Extraordinary income
Gain on sale of investment securities

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5

53

137

15,60324,192

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
15,65624,330

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

(394)
265

2,242
(466)

Remeasurements of defined benefit plans, net of tax

(332)

3,510

(461)

5,286

Comprehensive income

Total other comprehensive income

15,19529,617

Comprehensive income attributable toComprehensive income attributable to owners of parent

15,13729,48158

135

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,888

Retained earnings

47,868204,647

Treasury shares(6,534)

Total shareholders'equity252,870

Changes during period
Dividends of surplus(8,764)(8,764)

Profit attributable to ownersof parent

15,603

15,603Purchase of treasury shares
Disposal of treasury shares

1,563(5,009)(5,009)

2,167

3,731

Recieve of treasury shares via
trust(3,079)(3,079)Transfer of treasury shares via
trust

659

659

Change in scope of
consolidation

11

11

Change in equity due toadditional acquisition of
consolidated subsidiary stock

(2)

(2)

Sale of shares of consolidated
subsidiaries

174

174

Merger between consolidated
subsidiaries andunconsolidated subsidiaries

(302)

(302)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–
–

1,735

6,547

(5,261)

3,022

6,888

49,604

211,195(11,795)

255,8937

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

4,603

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
othercomprehensive
plansincomeRemeasurements

(65)

6,488

11,026

Shareacquisitionrights355

Non-controlling
Total net assetsinterests

3,559

267,811

Changes during period
Dividends of surplus(8,764)

Profit attributable to ownersof parent

15,603Purchase of treasury shares(5,009)

Disposal of treasury shares

3,731

Recieve of treasury shares via
trust(3,079)Transfer of treasury shares via
trust

659

Change in scope of
consolidation

11

Change in equity due toadditional acquisition of
consolidated subsidiary stock(2)

Sale of shares of consolidated
subsidiaries

174

Merger between consolidated
subsidiaries andunconsolidated subsidiaries(302)

Net changes in items otherthan shareholders' equity

(392)

258

(331)

(466)

(36)

(221)

(724)

Total changes during period

(392)

258

(331)

(466)

(36)

(221)

2,298

Balance at end of period

4,210

193

6,156

10,559318

3,337

270,1098

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,888

Retained earnings

49,604

211,195

Treasury shares(11,795)

Total shareholders'equity255,893

Changes during period
Dividends of surplus(9,093)(9,093)

Profit attributable to ownersof parent

24,192

24,192

Purchase of treasury shares
Disposal of treasury shares99(3,008)(3,008)327

426

Recieve of treasury shares via
trust

–

Transfer of treasury shares via
trust

1,255

Change in scope of
consolidation

1,255
–

Change in equity due toadditional acquisition of
consolidated subsidiary stock

140

140

Sale of shares of consolidated
subsidiaries–

Merger between consolidated
subsidiaries andunconsolidated subsidiaries–

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period–239

15,098(1,425)

13,912

6,888

49,844

226,294(13,221)269,805

9

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

4,210

Foreigncurrencytranslation
adjustment
193

Total
accumulatedof defined benefit
othercomprehensive
plansincomeRemeasurements

6,156

10,559Shareacquisitionrights318

Non-controlling
Total net assetsinterests

3,337

270,109

Changes during period
Dividends of surplus(9,093)

Profit attributable to ownersof parent

24,192

Purchase of treasury shares(3,008)

Disposal of treasury shares

426

Recieve of treasury shares via
trust

–

Transfer of treasury shares via
trust

1,255

Change in scope of
consolidation–

Change in equity due toadditional acquisition of
consolidated subsidiary stock

140

Sale of shares of consolidated
subsidiaries–

Merger between consolidated
subsidiaries andunconsolidated subsidiaries–

Net changes in items otherthan shareholders' equity

2,241

(461)

3,509

5,289

(56)

(369)

4,862

Total changes during period

2,241

(461)

3,509

5,289

(56)

(369)

18,775

Balance at end of period

6,451

(268)

9,665

15,848262

2,968

288,88410

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
26,854

38,665

Depreciation
Impairment losses

6,473
411

6,789
406

Goodwill impairment loss
Amortization of goodwill

4,473
1,987

–
1,864

Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts

(65)
(117)

(33)
102

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for warranties for completed

715

406

44

17

2,266

(1,226)construction
Increase (decrease) in provision for loss on construction
contracts
Increase in Defined Benefit Asset or Liability(2,233)(191)

Interest and dividend income
Interest expenses

(785)
208

(1,137)148

Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities

(19)
(480)

1
(473)

(8,581)(37,381)(3,517)(960)

Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts inprogress
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in advances received on construction
contracts in progress
Increase (decrease) in other liabilities(2,916)711

408

14,5484,099(1,935)(1,474)

1,529

Other, net

436

429

Subtotal

28,18822,282

Interest and dividends received

786

1,137

Interest paid
Income taxes paid

(170)
(11,505)(164)(16,953)

Net cash provided by (used in) operating activities

17,2996,301

Cash flows from investing activities
Purchase of property, plant and equipment(12,693)(8,841)

Proceeds from sale of property, plant and equipment
Purchase of intangible assets

810(1,827)90(1,321)

Purchase of investment securities
Proceeds from sale of investment securities(1,587)
4,038(1,039)
1,827

Purchase of shares of subsidiaries resulting in change in scopeof consolidation(5,083)(77)

Payments for sale of shares of subsidiaries resulting in change
in scope of consolidation

(128)

(20)

Loan advances
Proceeds from collection of loans receivable

(125)
45

(161)
61

Decrease (increase) in time deposits
Other, net

(184)
(350)

(0)
234

(17,085)(9,249)Net cash provided by (used in) investing activities

11

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Fiscal year ended

Fiscal year ended

March 31, 2020

March 31, 2021
(6,821)

11,021

Proceeds from issuance of bonds
Repayments of long-term borrowings

19,904(2,609)–(3,207)

Proceeds from long-term borrowings
Purchase of treasury shares

7,474(5,009)2,129(3,008)Proceeds from sale of treasury shares
Recieve of treasury shares via trust

3,620(3,079)161–

Transfer of treasury shares via trust
Dividends paid

659
(8,749)1,255(9,044)

(36)

(381)

(655)

(105)

Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation
Other, net

287

–

(758)

(570)

Net cash provided by (used in) financing activities

4,227(1,750)Effect of exchange rate change on cash and cash equivalents

(18)

(67)

Net increase (decrease) in cash and cash equivalents

4,422(4,766)

Cash and cash equivalents at beginning of period

41,46946,012

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation

5–

Increase in cash and cash equivalents resulting from merger ofconsolidated and non-consolidated subsidiaries

114–

46,012

41,246

Cash and cash equivalents at end of period12