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, 2023
(Based on Japanese GAAP)May 12, 2023
Company name:

EXEO Group, Inc.

Stock exchange listing: Tokyo
Stock code:
1951
Representative:

Inquiries:

URL

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

President and CEO
Operating Officer

Tetsuya Funabashi

General Manager of Accounts & Finance
Division

Shigeki Hayashi

Chief Financial Officer
Scheduled date of ordinary general meeting of shareholders:June 23, 2023

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

June 23, 2023
June 26, 2023

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

Yes
Yes

TEL

03-5778-1105(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
32,552(23.2)
33,771(25.3)
22,233(19.9)
42,38015.7
45,21718.4
27,766
14.8

Millions of yen
627,607594,840%
5.5
3.8

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
204.90
7.3
6.1
5.2
250.47
9.4
8.7
7.1

Yen
204.98250.64

Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
577,941535,617

Millions of yen
307,941
307,053

Cash flows fromoperating activities
Millions of yen
5,483
26,406

Cash flows frominvesting activities
Millions of yen(13,332)(20,388)

Net assets per share
%
52.5
56.6

Yen
2,832.22
2,748.21(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
3,298
50,204
5,023
53,727

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

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(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

%

%

–
–

44.00
51.00

–
–

52.00
51.00

96.00
102.0010,617
10,997

38.3
49.8

3.6
3.7

–

60.00

–

60.00

120.001

53.6

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Full year

Millions of yen
630,000

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
0.4
34,0004.4
34,9003.3
23,6006.1
223.87

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(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:

Yes
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, 2023

109,812,419 shares As of March 31, 2022

116,812,419 shares

Number of treasury shares at the end of the period
As of March 31, 2023

2,759,091 shares As of March 31, 2022

6,424,185 shares

108,466,861 shares Year ended March 31, 2022

110,780,579 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

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

54,86051,453

217,644

232,567750

263

46,194
7,279

53,877
15,645(68)(83)

326,660

353,723

39,88439,750Machinery, vehicles, tools, furniture and fixtures, net
Land17,083
61,633

19,12462,701

Construction in progress
Other, net

5,599
2,699

10,454
3,604

126,900

135,635

9,207

15,112

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

Total property, plant and equipment
Intangible assets
Goodwill
Other

4,538

7,995

Total intangible assets

13,745

23,108Investment securities
Retirement benefit asset

34,27423,75732,81921,392

Deferred tax assets
Other

5,692
5,205

5,816
6,075

Investments and other assets

Allowance for doubtful accounts

(618)

(630)

Total investments and other assets

68,31165,473208,957

224,217535,617577,941

Total non-current assets
Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Short-term borrowings

69,57975,03330,75628,748

Income taxes payable
Advances received on construction contracts in progress

10,706
9,404

4,531
12,692

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

2,632
475

2,650
405

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

452
1,104

304
1,286

Other

32,65233,444

Total current liabilities

157,764

159,097

Bonds payable
Long-term borrowings

30,00018,00630,00053,632

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

9,219

10,815

Non-current liabilities

officers)
Retirement benefit liability

762

778

9,548

10,083

Other

3,264

5,591

Total non-current liabilities

70,800110,901

228,564

269,999

Share capital
Capital surplus

6,888
48,546

6,888
28,912Retained earnings
Treasury shares

244,892(13,063)

256,303(5,848)

Total shareholders' equity

287,263286,256

Total liabilities
Net assets
Shareholders' equity

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

6,937

7,772

Foreign currency translation adjustment
Remeasurements of defined benefit plans(985)
10,154

1,490
7,678

Total accumulated other comprehensive income

16,106

16,941

185
3,497

162
4,580

307,053

307,941535,617577,941

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, 2022

Fiscal year ended
March 31, 2023

Net sales

594,840

627,607

Cost of sales

510,517545,769

Gross profit

84,323

81,837

Selling, general and administrative expenses

41,94249,285

Operating profit

42,38032,552Non-operating income
Interest income

3680Dividend income
Foreign exchange gains

810
1,875

797
1,050

Rental income from land and buildings
Other

452
1,160

501
730

Total non-operating income

4,335

3,160

Non-operating expenses
Interest expenses

226

640

Impairment loss
Loss on retirement of non-current assets

471
208

–
–

Other

592

1,300

Total non-operating expenses

1,498

1,941

45,217

33,771

Extraordinary income
Gain on sale of investment securities

677

1,962

Gain on sale of non-current assets
Gain on step acquisitions

–
–

1,133
562

677

3,658

261

–

Loss on valuation of investment securities

1,521

–

Total extraordinary losses

1,782

–

Profit before income taxes

44,11237,430

Income taxes - current

16,43012,160Ordinary profit

Total extraordinary income
Extraordinary losses
Loss on sale of investment securities

Income taxes - deferred

(735)

2,266

Total income taxes

15,694

14,427

Profit28,41823,003652

769

27,76622,233

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

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
28,41823,003

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

482
(745)

838
2,496

Remeasurements of defined benefit plans, net of tax

491(2,474)228

859

Comprehensive income

Total other comprehensive income

28,64723,863Comprehensive income attributable toComprehensive income attributable to owners of parent

28,02323,068623

794

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,888

Retained earnings

49,844

Cumulative effects of changes inaccounting policies
Restated balance

226,294

Treasury shares(13,221)

273
6,888

49,844

226,567

Total shareholders'equity269,805273(13,221)270,078

Changes during period
Dividends of surplus(9,441)(9,441)

Profit attributable to owners ofparent27,766

27,766

Purchase of treasury shares
Disposal of treasury shares(5,004)(5,004)

63

317

380

Cancellation of treasury shares(1,958)

1,958–

Changes in Stock exchange

533

1,722

2,256

1,164

1,164

Transfer of treasury shares via
trust
Increase due to decrease insubsidiaries–

Change in equity due toadditional acquisition of
consolidated subsidiary stock

(90)

(90)

Change in ownership interest ofparent due to transactions with
non-controlling interests

154

154

Changes in liabilities for
written put options over noncontrolling interests–

Net changes in items other thanshareholders' equity–

Total changes during period
Balance at end of period–(1,297)18,325

157

17,185

6,888

48,546244,892(13,063)

287,2637

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

6,451

Foreigncurrencytranslation
adjustment

Total accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

(268)

9,665

15,848

Shareacquisitionrights262

Non-controlling
Total net assetsinterests

2,968

Cumulative effects of changes inaccounting policies
Restated balance

288,884
273

6,451

(268)

9,665

15,848262

2,968

289,158

Changes during period
Dividends of surplus(9,441)

Profit attributable to owners ofparent27,766

Purchase of treasury shares(5,004)

Disposal of treasury shares

380

Cancellation of treasury shares–

Changes in Stock exchange

2,256Transfer of treasury shares via
trust

1,164

Increase due to decrease insubsidiaries–

Change in equity due toadditional acquisition of
consolidated subsidiary stock(90)

Change in ownership interest ofparent due to transactions with
non-controlling interests

154

Changes in liabilities for
written put options over noncontrolling interests–

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

485

(717)

489

257

(76)

528

709

485

(717)

489

257

(76)

528

17,895

6,937

(985)

10,154

16,106185

3,497

307,053

8

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

Total shareholders'equity6,888

48,546244,892(13,063)

287,263

6,888

48,546244,892(13,063)

287,263

Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus(11,278)(11,278)

Profit attributable to owners ofparent22,233

22,233Purchase of treasury shares(7,503)(7,503)

(2)

273

271

(14,445)

14,445–

Disposal of treasury shares
Cancellation of treasury shares
Changes in Stock exchange–

Transfer of treasury shares via
trust

–

Increase due to decrease insubsidiaries

432

Change in equity due toadditional acquisition of
consolidated subsidiary stock

432(3,346)

Change in ownership interest ofparent due to transactions with
non-controlling interests(3,346)23

Changes in liabilities for
written put options over noncontrolling interests

23(1,840)(1,840)Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period––(19,634)

11,411

7,215(1,007)

6,888

28,912

256,303(5,848)286,2569

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

Foreigncurrencytranslation
adjustment

Total accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

ShareacquisitionrightsNon-controlling
Total net assetsinterests

6,937

(985)

10,154

16,106185

3,497

307,053

6,937

(985)

10,154

16,106185

3,497

307,053

Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus(11,278)

Profit attributable to owners ofparent22,233Purchase of treasury shares(7,503)

Disposal of treasury shares

271

Cancellation of treasury shares–

Changes in Stock exchange–

Transfer of treasury shares via
trust

–

Increase due to decrease insubsidiaries

432

Change in equity due toadditional acquisition of
consolidated subsidiary stock(3,346)

Change in ownership interest ofparent due to transactions with
non-controlling interests

23

Changes in liabilities for
written put options over noncontrolling interests(1,840)Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

835

2,476

(2,476)

835

(23)

1,083

1,895

835

2,476

(2,476)

835

(23)

1,083

888

7,772

1,490

7,678

16,941

162

4,580

307,94110

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Gain on bargain purchase
Loss (gain) on step acquisitions
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in provision for loss on construction
contracts
Increase in Defined Benefit Asset or Liability
Interest and dividend income
Interest expenses
Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities
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
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
44,112
7,414
471
1,955
(31)
–
(152)
(2,361)37,430
8,700
137
3,596
(91)
(562)
(26)
(59)

303

(154)

(334)

175

(1,255)
(846)
226
(15)
(416)
5,361

2,717
(877)
640
(1,067)(1,868)(7,121)(12,324)(3,701)880(7,793)(5,373)
1,613

183

513

2,265
(772)

(3,843)(4,895)

Subtotal

36,871

25,882

Interest and dividends received
Interest paid
Income taxes paid

846
(202)
(11,108)872(628)(20,643)

Net cash provided by (used in) operating activities

26,406

5,483(17,950)880(2,221)(1,133)
4,776(11,356)
2,429(2,381)(1,637)
5,199

72

975

(4,891)(6,662)

–

(356)

(403)
38
803
(359)

(67)
176
542
(195)

(20,388)(13,332)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments for sale of shares of subsidiaries resulting in change
in scope of consolidation
Loan advances
Proceeds from collection 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 borrowings
Proceeds from issuance of bonds
Redemption of bonds
Repayments of long-term borrowings
Proceeds from long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Transfer of treasury shares via trust
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

10,865
10,000(10,000)(3,724)
12,558(5,004)72
1,164(9,446)(168)(3,897)–(20)(2,693)36,717(7,503)
22–(11,240)
(421)

(4)

(6,206)(1,289)(1,459)Net cash provided by (used in) financing activities

5,023

3,298

Effect of exchange rate change on cash and cash equivalents

590

1,705

Net increase (decrease) in cash and cash equivalents

11,632(2,845)

Cash and cash equivalents at beginning of period

41,24653,727

848

(647)

–

(30)

53,72750,204

Increase in cash and cash equivalents due to share exchange
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period12