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, 2019
(Based on Japanese GAAP)May 14, 2019
Company name:

KYOWA EXEO CORPORATION

Stock exchange listing: Tokyo
Stock code:
1951
Representative:
Inquiries:

URL

http://www.exeo.co.jp/

President
Managing Executive Officer,General

Manager,Accounts & Finance Division
Scheduled date of ordinary general meeting of shareholders:Fuminori Kozono
Hideo Higuchi

TEL

03-5778-1105

June 21, 2019

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

June 21, 2019
June 24, 2019

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, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Net salesYear ended March 31, 2019Year ended March 31, 2018

Operating profit

Millions of yen
423,727
312,669

%
35.5
4.6

Earnings per share

Diluted earnings per
share

%
23.8
22.7

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
388.92
18.3
9.9
7.5
188.72
10.8
10.5
8.2

Yen
390.25189.42

Year ended March 31, 2019Year ended March 31, 2018

Millions of yen
31,71625,621

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
33,431
26.4
40,219 123.5
26,44823.5
17,99330.5(2) Consolidated financial position
Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
416,483
261,305

Millions of yen
267,811
176,101

Cash flows fromoperating activities
Millions of yen
12,77024,800Cash flows frominvesting activities
Millions of yen(17,609)(4,538)

Net assets per share
%
63.4
67.2

Yen
2,343.43
1,842.97(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(4,924)
41,469(5,137)30,343

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

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(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

%

%

–
–

25.00
32.00

–
–

25.00
38.00

50.00
70.00

4,786
7,318

26.4
17.9

2.8
3.3

–

40.00

–

40.00

80.00

1

40.9

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Net sales
Full year

Millions of yen
495,000

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
16.8
32,0000.9
32,800(1.9)
21,800 (45.8)
195.804. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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, 2019

117,812,419 shares As of March 31, 2018

117,812,419 shares

Number of treasury shares at the end of the period
As of March 31, 2019

5,201,053 shares As of March 31, 2018

22,545,402 shares

103,061,286 shares Year ended March 31, 2018

94,991,522 shares

Average number of shares during the period
Year ended March 31, 20192

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

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

26,09541,80592,185

156,361

4,499

895

27,617
1,967

38,401
4,403

(1)

(158)

152,365

241,708

21,00331,603

4,542
36,602

8,738
55,403

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

516

2,209

62,664

97,955

Goodwill
Other

658
3,251

10,2594,502

Total intangible assets

3,909

14,762

Investments and other assets
Investment securities

19,83337,917Retirement benefit asset
Other

17,947
4,819

16,283
8,341

(235)

(485)

Total property, plant and equipment
Intangible assets

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

342,36562,056108,940

174,774

261,305

416,483

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts

34,80259,265

Short-term loans payable
Income taxes payable

1,012
5,004

13,0697,498

Advances received on uncompleted construction contracts
Provision for bonuses

3,574
1,421

5,487
3,744

126
58

420
86

Provision for loss on construction contracts
Other

290
16,870344
24,489Total current liabilities

63,161

114,406

10,00010,000

10
4,966

4,659
6,965

272

604

Allowance for investment loss
Retirement benefit liability

42
5,070

–
9,283

Other

1,680

2,753

Total non-current liabilities

22,042

34,26585,204

148,671

Capital stock
Capital surplus

6,888
8,098

6,888
47,868Retained earnings
Treasury shares

169,883(23,187)

204,647(6,534)

Total shareholders' equity

161,682

252,870

5,198

4,603

Foreign currency translation adjustment
Remeasurements of defined benefit plans

11
8,681

(65)
6,488

Total accumulated other comprehensive income

13,891

11,026

285
242

355
3,559

176,101

267,811

261,305

416,483

Provision for bonuses for directors (and other officers)
Provision for warranties for completed construction

Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)

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, 2018

Fiscal year ended
March 31, 2019

Net sales of completed construction contracts

312,669

423,727

Cost of sales of completed construction contracts

269,315

365,389

Gross profit on completed construction contracts

43,35458,337

Selling, general and administrative expenses

17,732

26,620Operating profit

25,621

31,716

4

16

Dividend income
Land and house rent received

403
401

537
295

Gain on sales of non-current assets
Reversal of allowance for investment loss

114
170

592
–

Gain on step acquisitions
Other

–
303

346
679

Total non-operating income

1,398

2,468

Non-operating income
Interest income

Non-operating expenses
Interest expenses

33

48

Impairment loss
Loss on sales of non-current assets

–
57

135
4

Loss on retirement of non-current assets
Loss on valuation of investment securities

68
1

118
106

Foreign exchange losses
Other

169
241

–
340

Total non-operating expenses

571

753

26,44833,431Gain on bargain purchase–

18,313

Total extraordinary income–

18,313

Goodwill amortization–

126

Total extraordinary losses–

126

Profit before income taxes

26,44851,617

Income taxes - current

8,018

11,943

Ordinary profit
Extraordinary income

Extraordinary losses

Income taxes - deferred

375

(658)

Total income taxes

8,393

11,284

Profit18,05440,333

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

5

61

113

17,99340,219

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 201918,05440,333

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

1,631
(10)

(625)
(92)

Remeasurements of defined benefit plans, net of tax

1,793(2,193)

3,414(2,911)

Comprehensive income

Total other comprehensive income

21,46937,421

Comprehensive income attributable toComprehensive income attributable to owners of parent

21,41337,354

55

67

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

6,888

7,978

Retained earnings
156,477

Total shareholders'equityTreasury shares(24,011)

147,333

Changes of items during period
Dividends of surplus(4,588)(4,588)

Profit attributable to ownersof parent

17,993

17,993Purchase of treasury shares
Disposal of treasury shares

120

(3)

(3)

311

431

Changes in Stock exchange–

Increase in treasury stock due
to increase in consolidated
subsidiaries–

Change of scope of
consolidation–

Change in equity due toadditional acquisition of
consolidated subsidiary stock–

Transfer of treasury shares via
trust

515

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

515
–

–

120

13,405823

14,349

6,888

8,098

169,883(23,187)

161,6827

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period3,566

Foreigncurrencytranslation
adjustment

Total
accumulatedof defined benefit
othercomprehensive
plansincomeRemeasurements

15

6,888

10,470Share
acquisitionrights288

Non-controlling
Total net assetsinterests

187

158,280

Changes of items during period
Dividends of surplus(4,588)

Profit attributable to ownersof parent

17,993Purchase of treasury shares(3)

Disposal of treasury shares

431

Changes in Stock exchange–

Increase in treasury stock due
to increase in consolidated
subsidiaries–

Change of scope of
consolidation–

Change in equity due toadditional acquisition of
consolidated subsidiary stock–

Transfer of treasury shares via
trust

515

Net changes of items otherthan shareholders' equity

1,631

(4)

1,793

3,420

(3)

55

3,471

Total changes of items during
period

1,631

(4)

1,793

3,420

(3)

55

17,820

Balance at end of current period

5,198

11

8,681

13,891

285

242

176,101

8

Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

6,888

Retained earnings

8,098

169,883

Treasury shares(23,187)

Total shareholders'equity161,682

Changes of items during period
Dividends of surplus(5,433)(5,433)

Profit attributable to ownersof parent

40,21940,219Purchase of treasury shares(3,015)(3,015)

Disposal of treasury shares

123

277

400

Changes in Stock exchange

39,63919,86259,502(1,157)(1,157)

Increase in treasury stock due
to increase in consolidated
subsidiaries
Change of scope of
consolidation(21)

Change in equity due toadditional acquisition of
consolidated subsidiary stock

(21)

7

7

Transfer of treasury shares via
trust

685

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

685
–

–

39,77034,764

16,653

91,187

6,888

47,868204,647(6,534)

252,8709Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period5,198

Foreigncurrencytranslation
adjustment
11

Total
accumulatedof defined benefit
othercomprehensive
plansincomeRemeasurements

8,681

13,891

Share
acquisitionrights285

Non-controlling
Total net assetsinterests

242

176,101

Changes of items during period
Dividends of surplus(5,433)

Profit attributable to ownersof parent

40,219Purchase of treasury shares(3,015)

Disposal of treasury shares

400

Changes in Stock exchange

59,502

Increase in treasury stock due
to increase in consolidated
subsidiaries(1,157)

Change of scope of
consolidation(21)

Change in equity due toadditional acquisition of
consolidated subsidiary stock

7

Transfer of treasury shares via
trust

685

Net changes of items otherthan shareholders' equity

(594)

(76)

(2,193)(2,865)

70

3,317

522

Total changes of items during
period

(594)

(76)

(2,193)(2,865)70

3,317

91,710

Balance at end of current period

4,603

(65)

6,488

11,026355

3,559

267,81110

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, 2018

March 31, 2019
26,44851,617

3,272
0

4,725
135

Amortization of goodwill
Gain on bargain purchase

395
–

1,201
(18,313)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(980)
179

50
419

0

28

Increase (decrease) in provision for loss on construction
contracts

(216)

(106)

Increase in Defined Benefit Asset or Liability
Interest and dividend income

(694)
(407)

(1,231)(554)

Interest expenses
Loss (gain) on sales of non-current assets

33
(56)

48
(580)

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable - trade

0
3,892

(67)
(28,202)

Decrease (increase) in costs on uncompleted construction
contracts and other(3,447)701

Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable - trade

2,175(1,802)(1,009)
9,240

Increase (decrease) in advances received on uncompleted
construction contracts

118

198

Increase (decrease) in other liabilities
Other, net

2,327
285

4,528
356

Subtotal

31,52323,187

408
(33)

552
(49)

Income taxes paid

(7,098)(10,920)

Net cash provided by (used in) operating activities

24,80012,770Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(3,214)352(2,757)698

Purchase of intangible assets
Purchase of investment securities(1,010)(429)(1,079)
(484)

0

233

–

(16,961)

(204)

(358)

1
1

3,098
20

(35)

(20)

(4,538)(17,609)

Depreciation
Impairment loss

Increase (decrease) in provision for warranties for completed
construction

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities

Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments of loans receivableCollection of loans receivable
Decrease (increase) in time deposits and other
Other, net
Net cash provided by (used in) investing activities

11

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019
(100)

4,130

Repayments of long-term loans payable
Proceeds from long-term loans payable(1,093)–(2,474)
1,260

Purchase of treasury shares
Proceeds from sales of treasury shares

(3)
308

(3,015)339

Transfer of treasury shares via trust
Cash dividends paid

515
(4,581)685(5,425)

Other, net

(182)

(426)

Net cash provided by (used in) financing activities(5,137)(4,924)

Effect of exchange rate change on cash and cash equivalents

(23)

(113)

Net increase (decrease) in cash and cash equivalents

15,101(9,877)

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting from

15,241

30,343–55–

20,94830,343

41,469change of scope of consolidation
Increase in cash and cash equivalents due to share exchange
Cash and cash equivalents at end of period12