Consolidated Financial Statements
Year ended March 31, 2023

INFRONEER Holdings Inc. and Subsidiaries
Consolidated Balance Sheets
March 31ASSETS
Current assets:
Cash and time deposits (Note 9)
Trade receivables: (Notes 9 and 27)
Notes
Accounts
Allowance for doubtful accounts

2023

2022

(Millions of yen)

(Millions of yen)¥¥

Marketable securities
Inventories (Notes 8 and 9)
Other current assets
Total current assets
Investments and other assets:
Investments in securities (Notes 5 and 9)
Deferred tax assets
Right to operate public facilities (Note 9)
Assets related to replacement investment to operate public
facilities
Goodwill
Other intangible fixed assets
Long-term loans receivable

88,80078,036

2023(Thousands of
U.S. dollars)(Note 3)$665,019

17,073
279,015(140)
295,94830
38,05551,900474,733

10,650300,152(118)
310,68430
20,70343,149452,602

127,859
2,089,530(1,048)2,216,341
225
284,992
388,677
3,555,254

100,430
1,077
105,144

120,124841
109,721752,116
8,066
787,419

27,15924,122

203,392

13,15913,652267

19,892
14,989
222

220

354

98,547102,239
2,000
1,647

16,56818,134(268)
295,542

14,907
5,418(402)
310,188

124,077
135,804(2,007)2,213,300

107,958

107,477

808,492

Machinery and equipment

146,932

145,015

1,100,367

VehiclesTools, furniture and fixtures
Land
Construction in progress
Leased assets

10,13818,036
81,242
3,851
1,514
369,671(213,407)
156,264

9,951
16,682
83,5992,550
1,334
366,608(203,029)
163,579

75,923135,071
608,418
28,84011,3382,768,449(1,598,195)
1,170,254

24

63

179

Claims provable in bankruptcy and other
Asset for retirement benefits
Other investments (Note 9)
Allowance for doubtful accounts
Total investments and other assets
Property and equipment, at cost:(Notes 9 and 21)
Buildings and structures

Accumulated depreciation
Property and equipment, net
Deferred assets
TOTAL ASSETS¥

926,563¥926,432

The accompanying notes are an integral part of the statements.

1$

6,938,987

March 31

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term debt (Note 9)
Trade payables
Lease obligations
Advances on construction work in progress
Accrued income taxes
Provision for repairs and warranty
Provision for bonuses for employees
Provision for bonuses for directors
Provision for share awards
Provision for warranties for completed construction
Provision for loss on construction contracts
Liabilities related to right to operate public facilities
Liabilities related to replacement investment to operate
public facilities
Other current liabilities
Total current liabilities

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)(Note 3)¥¥$47,611
116,171
134
37,807
10,273
154
8,265
488
—
1,082
342
4,664

85,687110,998
236
34,863
10,897
182
8,080
407
380
1,084
836
4,555

356,557
869,999
1,004
283,135
76,934
1,153
61,896
3,655
—
8,103
2,561
34,928

1,030

1,016

7,714

70,253
298,274

40,016299,237

526,1212,233,760

106,780413
17,056
10,018
169
99,590107,799452
16,76814,305—
103,844799,670
3,093
127,732
75,024
1,266
745,825

28,226

24,589211,383

3,722
265,974

3,573
271,330

27,874
1,991,867

Net Assets
Shareholders’ equity:
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders’ equity

20,000106,455
234,130(18,396)
342,189

20,000134,117
198,274(24,343)
328,048

149,779
797,237
1,753,389(137,767)
2,562,638

Accumulated other comprehensive income:Unrealized gain on investments in securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Retirement benefits liability adjustments
Total accumulated other comprehensive income

9,850
(453)
191
915
10,503

18,2754(96)
680
18,86373,766(3,392)
1,430
6,852
78,656

Non-controlling interests
Total net assets

9,623
362,3158,954
355,865

72,066
2,713,360

Long-term liabilities:
Long-term debt (Note 9)
Lease obligations
Liability for retirement benefits
Deferred tax liabilities
Provision for share awards
Liabilities related to right to operate public facilities
Liabilities related to replacement investment to operate
public facilities
Other long-term liabilities
Total long-term liabilities

Commitments and contingent liabilities(Note 15)TOTAL LIABILITIES AND NET ASSETS¥

926,563¥926,432

The accompanying notes are an integral part of the statements.
2$

6,938,987

INFRONEER Holdings Inc. and Subsidiaries
Consolidated Statements of Income
For the year ended March 31
2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)(Note 3)¥¥$

Net sales (Note 28)
Cost of sales (Notes 8 and 18)

709,641

682,913

5,314,469

611,517591,3034,579,623

98,124

91,610734,846

57,62954,120431,581

40,49537,490303,265Interest and dividend income

2,435

2,475

18,236

Interest expenses

Gross profit
Selling, general and administrative expenses(Note 16)
Operating profit
Other income (expenses):(2,264)(2,572)(16,955)

Gain on sale of fixed assets (Note 19)

609

332

4,561

Gain on sale of investments in securities

11,701

7,808

87,628Loss on retirement of fixed assets (Note 20)

(426)

(529)

(3,190)Loss on valuation of investments in securities

(258)

(687)

(1,932)Foreign exchange gain, net

113

543

846

Gain on equity method investments

1,033

653

7,736

Impairment loss on fixed assets (Note 7)(1,462)(495)(10,949)

(171)

(494)

(1,281)Other, net

11,3107,034

84,70051,80544,524

387,965

Current

15,762

14,650118,041

Deferred

(779)

95

(5,834)

14,983

14,745112,20736,822

29,779275,758

951

3,090

7,122

Profit before income taxes
Income taxes:

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent (Note 30)¥

Per share: (Note 30)
Earnings per share¥

35,871¥

26,6892023

For the year ended March 31
2022

Yen

Yen

138.39¥268,636

2023

U.S. dollars
94.73

The accompanying notes are an integral part of the statements.

3

$

$

1.04

INFRONEER Holdings Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the year ended March 31

Profit

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)(Note 3)¥¥$36,822

29,779275,758

Other comprehensive income:Unrealized loss on investments in securities(8,414)(11,080)(63,012)Deferred gains or losses on hedges

(451)

47

(3,378)Foreign currency translation adjustments

306

(72)

2,292

Retirement benefits liability adjustments

253

1,322

1,895

(7)

43

(52)

(8,313)(9,740)(62,255)

Share of other comprehensive income of companies
accounted for by equity method
Total other comprehensive loss
(Note 22)
Total comprehensive income¥

28,509¥20,039$213,503¥

27,510¥17,029$206,021

Total comprehensive income attributable to:
Owners of parent
Non-controlling interests

999

3,010

The accompanying notes are an integral part of the statements.

4

7,482

INFRONEER Holdings Inc. and Subsidiaries
Consolidated Statements of Changes in Net Assets(Millions of yen)
Shareholders’ equity
Commonstock
Balance at April 1, 2022¥

20,000Additional paid-in
Retained earnings
capital¥134,117¥

198,274

Total
shareholders’equityTreasurystock, at cost¥

(24,343)¥

Cumulative effects ofchanges in accounting
policies

328,048—

Restated balance

20,000134,117

198,274(24,343)

328,048

Changes during the year:
Cash dividends paid at¥40.0 per share(10,722)(10,722)

Profit attributable toowners of parent

35,87135,871

Acquisition of treasury
stock
Disposal of treasury stock
Cancellation of treasury
stock(12,173)(12,173)

(20)

1,601

1,581

(16,920)

16,920

—

(401)

(401)

Change in equity
attributable to parent
arising from transactions
with non-controllinginterests
Change in scope of
consolidation

(15)

(15)

Increase by share transfers—

Net changes other thanshareholders’ equity
Total changes during theyear
Balance at March 31, 2023—¥

20,000(27,662)¥

106,455535,856¥234,130

5,947¥(18,396)

14,141¥

342,189

(Millions of yen)
Accumulated other comprehensive income

Balance at April 1, 2022

Unrealized
gain oninvestments
in securities

Deferred
gains orlosses onhedges

Total
Foreign
Retirement
accumulated
currency
benefits
othertranslation
liability
comprehensive
adjustments adjustments
incomeNoncontrollinginterests

¥

¥

¥

¥

18,2754(96) ¥

680¥

18,863

8,954

Cumulative effects ofchanges in accounting
policies

Total
net
assets¥ 355,865—

Restated balance

18,275

4

(96)

680

18,8638,954

355,865

Changes during the year:
Cash dividends paid at¥40.0 per share(10,722)

Profit attributable toowners of parent

35,871

Acquisition of treasury
stock(12,173)

Disposal of treasury stock

1,581

Cancellation of treasury
stock

—

Change in equity
attributable to parent
arising from transactions
with non-controllinginterests(401)

Change in scope of
consolidation(15)

Increase by share transfers—

Net changes other thanshareholders’ equity(8,425)

(457)

287

235

(8,360)669(7,691)

Total changes during theyear(8,425)

(457)

287

235

(8,360)

669

6,450

915

¥ 10,503

9,623¥ 362,315

Balance at March 31, 2023

¥

9,850

¥

(453)

¥

191

¥

The accompanying notes are an integral part of the statements.

6¥

(Millions of yen)
Shareholders’ equity
Commonstock
Balance at April 1, 2021¥

28,463

Additional paid-in
Retained earnings
capital¥37,550¥

Cumulative effects ofchanges in accounting
policies

178,526

Total
shareholders’equityTreasurystock, at cost¥

(2,833)¥(177)

Restated balance

28,46337,550241,706(177)

178,349(2,833)

241,529

Changes during the year:
Cash dividends paid at¥38.0 per share(7,144)(7,144)

Profit attributable toowners of parent

26,68926,689Acquisition of treasury
stock(22,407)(22,407)

Disposal of treasury stock

590

0

1,374

1,964

Cancellation of treasurystock(97,783)(141)

97,924—0(79)

Change in equity
attributable to parent
arising from transactions
with non-controllinginterests(79)

Change in scope of
consolidation(27)

Increase by share transfers(8,463)

193,866(8,463)96,567521

494(98,401)

87,002(21,510)

86,519Net changes other thanshareholders’ equity
Total changes during theyear
Balance at March 31, 2022¥

20,000¥134,1177

19,925¥

198,274¥(24,343)¥

328,048

(Millions of yen)
Accumulated other comprehensive income

Balance at April 1, 2021

Unrealized
gain oninvestments
in securities

Deferred
gains orlosses onhedges¥¥29,218

Total
NonForeign
Retirement
accumulated controllingcurrency
benefits
otherinterests
translation
liability
comprehensive
adjustments adjustments
income(20) ¥

2¥(883) ¥

28,317¥97,505

Cumulative effects ofchanges in accounting
policies

Total
net
assets¥ 367,528(177)

Restated balance

29,218

(20)

2

(883)

28,31797,505367,351

Changes during the year:
Cash dividends paid at¥38.0 per share(7,144)

Profit attributable toowners of parent

26,689Acquisition of treasury
stock(22,407)

Disposal of treasury stock

1,964

Cancellation of treasury
stock

—

Change in equity
attributable to parent
arising from transactions
with non-controllinginterests(79)

Change in scope of
consolidation

494

Increase by share transfers

87,002

Net changes other thanshareholders’ equity(10,943)

24

(98)

1,563

(9,454)(88,551)(98,005)

Total changes during theyear(10,943)

24

(98)

1,563

(9,454)(88,551)(11,486)680¥ 18,863

8,954¥ 355,865

Balance at March 31, 2022¥

18,275

¥

4

¥

(96)

8

¥

¥

(Thousands of U.S. dollars)(Note 3)
Shareholders’ equity
Commonstock
Balance at April 1, 2022$

Additional paid-in
Retained earnings
capital149,779$

1,004,396$

1,484,865

Treasurystock, at cost$

Total shareholders’equity(182,304) $Cumulative effects ofchanges in accounting
policies

2,456,736—

Restated balance

149,779

1,004,396

1,484,865(182,304)

2,456,736

Changes during the year:
Cash dividends paid at$0.30 per share(80,296)(80,296)

Profit attributable toowners of parent

268,636

268,636

Acquisition of treasury
stock
Disposal of treasury stock
Cancellation of treasury
stock(91,163)(91,163)(150)

11,99011,840(126,713)

126,713—(3,003)(3,003)

Change in equity
attributable to parent
arising from transactions
with non-controllinginterests
Change in scope of
consolidation

(112)

(112)

Increase by share transfers—

Net changes other thanshareholders’ equity
Total changes during theyear
Balance at March 31, 2023—$

149,779(207,159)$

797,237

9

268,524$

1,753,389$

44,537

105,902(137,767) $2,562,638

(Thousands of U.S. dollars)(Note 3)
Accumulated other comprehensive income
Unrealized
gain oninvestments
in securities
Balance at April 1, 2022

$ 136,861

Deferred
gains orlosses onhedges$30

Total
NonForeign
Retirement
accumulated controllingcurrency
benefits
otherinterests
translation
liability
comprehensive
adjustments adjustments
income$(719) $

5,092 $ 141,264 $

Total
net
assets

67,056 $ 2,665,056

Cumulative effects ofchanges in accounting
policies—

Restated balance

136,861

30

(719)

5,092

141,264

67,056

2,665,056

Changes during the year:
Cash dividends paid at$0.30 per share(80,296)

Profit attributable toowners of parent

268,636

Acquisition of treasury
stock(91,163)

Disposal of treasury stock

11,840Cancellation of treasury
stock

—

Change in equity
attributable to parent
arising from transactions
with non-controllinginterests(3,003)

Change in scope of
consolidation(112)

Increase by share transfers—

Net changes other thanshareholders’ equity(63,095)(3,422)

2,149

1,760

(62,608)

5,010(57,598)

Total changes during theyear(63,095)(3,422)

2,149

1,760

(62,608)

5,010

48,30478,656 $72,066 $ 2,713,360

Balance at March 31, 2023$

73,766$(3,392)

$

1,430

$

6,852

$

The accompanying notes are an integral part of the statements.

10

INFRONEER Holdings Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the year ended March 31
2023

2022

2023

(Millions ofyen)(Millions ofyen)(Thousands of
U.S. dollars)(Note 3)

Cash Flows from Operating Activities:
Profit before income taxes¥

51,805¥44,524$

387,965

Depreciation

24,59824,890184,213

Impairment loss on fixed assets

1,462

495

10,949Amortization of goodwill

6,732

6,748

50,416

Increase (decrease) in allowance for doubtful accounts

(111)

85

(831)

Increase (decrease) in provision for loss on construction
contracts

(494)

206

(3,700)

Increase (decrease) in liability for retirement benefits(1,172)(2,986)(8,777)

Interest and dividend income(2,435)(2,475)(18,236)

Interest expenses

2,264

2,572

16,955

(91)

(170)

(681)

Gain on equity method investment(1,033)(653)(7,736)

Loss (gain) on sales of short-term and long-term investment
securities(11,688)(7,808)(87,531)

Loss (gain) on valuation of short-term and long-term investment
securities

258

687

1,932

Loss (gain) on sale of fixed assets

(599)

(309)

(4,486)

Loss on retirement of fixed assets

426

529

3,190

Decrease (increase) in trade receivables

15,074(41,622)

112,889

Decrease (increase) in construction work in progress(16,306)(1,238)(122,115)

Decrease (increase) in other inventories(1,003)(288)(7,511)

Decrease (increase) in consumption tax receivables(4,111)

1,391(30,787)

Increase (decrease) in trade payables

23,514123

176,095

Increase (decrease) in advances on construction work inprogress

2,725(2,119)20,408

Increase (decrease) in deposits

6,815(20,841)

51,037(10,130)(2,949)(75,863)

86,500(1,208)647,795

Receipt of interest and dividend income

2,753

3,132

20,617

Payment of interest expenses(1,978)(2,286)(14,813)

Payment of income taxes(16,321)(15,971)(122,228)

70,954(16,333)

531,371

Foreign exchange gain

Other
Sub-total

Net cash provided by (used in) operating activities

11For the year ended March 31
2023

2022

2023

(Millions ofyen)(Millions ofyen)(Thousands of
U.S. dollars)(Note 3)Acquisition of property and equipment and intangible assets(20,043)(21,698)(150,101)

Acquisition of concession-based private finance initiative right(4,268)(4,168)(31,963)

Acquisition of replacement investment in concession-based
private finance initiative(883)(1,677)(6,613)

Proceeds from sale of property and equipment and intangible
assets

2,670

686

19,996

Acquisition of investments in securities(169)(4,551)(1,266)

Proceeds from sale and redemption of investments insecurities

21,963

11,018164,480

Acquisition of stocks of subsidiaries and affiliates

Cash Flows from Investing Activities:(3,198)(3,311)(23,950)

Lending of long-term loans receivable

(573)

(21)

(4,291)

Collection of long-term loans receivable

38

705

285

Other

(830)

469

(6,216)(5,293)(22,548)(39,639)

Net increase (decrease) in short-term loans(51,310)72,490(384,258)

Proceeds from long-term borrowings

15,000—112,334

Repayment of long-term loans(8,582)(21,894)(64,270)

Repayment of non-recourse loans(846)(1,314)(6,336)

Proceeds from issuance of bonds

12,937—96,885—(5,000)—Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:

Redemption of bonds
Payment of finance lease obligations

(306)

(434)

(2,292)

Proceeds from sale of treasury stocks

—

1,691

—

Acquisition of treasury stock(12,173)(17,877)(91,163)

Payment of cash dividends(10,722)(7,144)(80,296)

Payment of cash dividends to non-controlling shareholders(316)(5,304)(2,367)

Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation

—

160

—

Others

(66)

(86)

(494)

(56,384)

15,288(422,257)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

91

163

682

Increase (decrease) in cash and cash equivalents

9,368(23,430)

70,157

Cash and cash equivalents at beginning of the year

76,01898,976569,295

629

472

4,710

Increase in cash and equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of the year (Note 24)¥

86,015¥76,018The accompanying notes are an integral part of the statements.

12$644,162

INFRONEER Holdings Inc. and Subsidiaries
Notes to the Consolidated Financial Statements
1. Basis of Presenting Consolidated Financial Statements(1) Accounting principles and presentation
INFRONEER Holdings Inc. (the “Company”) and its consolidated subsidiaries (the “Group”) maintain theirbooks of account in conformity with the financial accounting standards of Japan, and its foreign subsidiaries
maintain their books of account in conformity with those countries of domicile.
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in Japan, which are different in certain respects as to the application anddisclosure requirements of IFRS, and have been compiled from the consolidated financial statements preparedby the Company as required by the Financial Instruments and Exchange Law of Japan.
Certain reclassifications have been made to present the accompanying consolidated financial statements in aformat which is familiar to readers outside Japan.

(2) Scope of consolidation
The Company has fifty-seven (57) subsidiaries (“controlled companies”, wherein the decision-making body ofentity is controlled) as of March 31, 2023. The accompanying consolidated financial statements include theaccounts of the Company and twenty-eight (28) significant subsidiaries, controlled directly or indirectly by theCompany, as listed below:

13

Consolidated subsidiaries:
March 31, 2023
Common stock

Name of subsidiary

Segment(Main business)

Equityownership
percentage

Maeda Corporation

Building and Civil
Engineering

100.0%*{—}

Maeda Road
Construction Co., Ltd

Road Civil Engineering

100.0%*{—}

19,351

144,919

Maeda Seisakusho
Co., Ltd.

Machinery

100.0%*{—}

3,160

23,665

Aichi Road Concession Co., Ltd.

Infrastructure Operation(Maintenance andmanagement of roads)

50.0*{50.0}

480

3,595

Anonymous Association-Aichi Road
Concession

Infrastructure Operation(Maintenance andmanagement of roads)

—
*{—}

—

—

JM Corporation

Other(Building)

100.0*{100.0}

350

2,621

Other
(Production and sales of
construction materials)

50.0*{50.0}**[33.3]

250

1,872

FBS Co., Ltd.

Other
(Building)

75.0*{75.0}**[25.0]100

749

Thai Maeda Corporation Ltd.

Other
(Building)

45.0*{45.0}**[4.0]

***20

586

Miotsukushi Industrial
Water Concession
Co., Ltd.

Infrastructure Operation(Waterworks)

71.0*{71.0}100

749

Fujimi Koken Co., Ltd.

(Millionsof yen)¥28,463(Thousandsof U.S. dollars)$

213,158

18 other subsidiaries*	The corresponding figures represent the indirect ownership percentage included in “Equity ownership
percentage.”**	The corresponding figure represents the ownership percentage of those closely related or with ties to theCompany not included in “Equity ownership percentage.”*** The amount is presented as millions of Thai Baht.
Note: Effective from the current fiscal year, MAEDA AMERICA Inc., INFRONEER Digital Solutions Inc., andJAPAN BIO FUEL Co., Ltd. are included in the scope of consolidation due to their new establishment.
Nihon Segment Kogyo Co., Ltd. is included in the scope of consolidation due to acquisition of shares,
and Miotsukushi Industrial Water Concession Co., Ltd., which was a non-consolidated subsidiary, is
included in the scope of consolidation due to its increased materiality.
	
In addition, Anonymous Association-Happo Wind Development, which had been a consolidated
subsidiary, was excluded from the scope of consolidation due to the sale of equity interest in anonymous
associations. Aoisangyo CO., Ltd. and Keihinrecyclecenter CO., Ltd. were excluded from the scopeof consolidation due to merger by absorption, and Maeda Pacific Corporation was excluded from thescope of consolidation due to liquidation.
The accounts of the other twenty-nine (29) subsidiaries have not been consolidated with the Company becauseof the insignificant amount of total assets, net sales, net profit, and retained earnings, but one (1) of the nonconsolidated subsidiaries is accounted for by the equity method.
14

(3) Investments in non-consolidated subsidiaries and affiliates
As of March 31, 2023, the Company has twenty-four (24) affiliates (“influenced companies” wherein the financial
and operating or business decision-making body of an entity that is not a subsidiary can be influenced to amaterial degree).
Investments in one (1) non-consolidated subsidiary and five (5) affiliates are accounted for by the equity
method, under which the Company’s equity in the net profit of these affiliates is included in consolidated profit
with appropriate elimination of inter-company profit as of March 31, 2023, and for the year then ended. The
remaining investments in non-consolidated subsidiaries and affiliates are stated at cost since the investments
do not have a material effect on consolidated net profit and retained earnings in the consolidated financial
statements.
Major non-consolidated subsidiary accounted for by the equity method;
J. CITY Corporation
Major affiliates accounted for by the equity method;
Toyo Construction Co., Ltd.
Major non-consolidated subsidiary not accounted for by the equity method;
Chiba City Consumer Life PFI Service Co., Ltd.
Major affiliate not accounted for by the equity method;
Toyota City Eastern School Lunch Center Co., Ltd(4) Fiscal year of consolidated subsidiaries
Of the consolidated subsidiaries, Maeda Pacific Corporation has a fiscal year ending December 31 and Nihon
Segment Kogyo Co., Ltd. has a fiscal year ending February 28. Therefore, in preparing the consolidated financial
statements, the financial statements for these subsidiaries’ fiscal year are used, and necessary adjustments
are made for significant transactions that occurred between the end of subsidiaries’ fiscal year and the end of
fiscal year for the consolidated financial statements.

15

2. Summary of Significant Accounting Policies(1) Recognition of revenues and expenses
The Group applies the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and the “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance
No. 30, March 26, 2021) and recognizes revenue based on the following five-step approach.
Step 1. Identify the contract(s) with a customer
Step 2. Identify the performance obligations in the contract
Step 3. Determine the transaction price
Step 4. Allocate the transaction price to the performance obligations in the contract
Step 5. Recognize revenue when (or as) the entity satisfies a performance obligation
The identification of performance obligations and the point in time at which revenue is recognized in theGroup’s principal operations are as follows.

1) Revenue recognition with regard to construction work
The Group enters into construction contracts with customers, mainly in the civil engineering, building, androad civil engineering businesses, to construct buildings or structures and to perform the related services.
The Group identifies the work it performs with respect to these contracts as performance obligations.
Under the construction contracts, assets are created or increased in value by satisfying performanceobligations by the Group, and as the assets are created or increased in value, a customer gains control
over the assets. Therefore, the performance obligations are satisfied over a period of time, and they aresatisfied according to the progress of construction over the contract period.
For construction contracts for which the progress toward satisfying performance obligations can bereasonably estimated, the percentage of completion is estimated by the input method based on the cost
incurred, and revenue is recognized over a period of time as the performance obligation to transfer goods
or services to the customer is satisfied because the Group determines that the use of the percentage of theestimated total cost incurred for the construction to be delivered faithfully depicts the increase in assets bysatisfying the performance obligations. Except for the initial stages of a contract, revenue is recognized ona cost recovery basis for construction projects for which the progress of completion cannot be reasonably
estimated.
For construction contracts with a very short period of time between the transaction commencement date
and the point in time when the performance obligation is expected to be fully satisfied, revenue is recognizedwhen the performance obligation is fully satisfied.
The transaction price is determined by the construction contract, and the consideration for the transaction isreceived in accordance with the payment terms determined by each construction contract. For construction
projects that require a long period of time from the satisfaction of performance obligations to the receipt
of consideration from the customer and for which a significant financing component is recognized, an
adjustment shall be made for the portion that corresponds to financial income.

2) Revenue recognition with regard to sales of merchandise, product manufacturing,and sales
The Group manufactures and sells asphalt mixture, emulsion, and other construction materials in the roadcivil engineering business, and sells construction equipment products and manufactures and sells industrial
machinery and other equipment in the machinery business. The Group recognizes the work it performs
with respect to these as performance obligations.
For the sale of these goods and products in the road civil engineering business, the Group recognizes
revenue at the time of their shipment of the products because the Group determines that control istransferred to the customer when the product is shipped to the customer, as shipment and acceptanceinspection occur at approximately the same time due to the nature of asphalt mixtures. In addition, inthe machinery business, the Group recognizes revenue at the time of delivery of the goods or products
because the Group determines that control is transferred to the customer when the goods or products aredelivered to the customer.
The Group does not recognize a significant financing component because the consideration is generally
received within approximately one year of satisfaction of the performance obligation.

163) Revenue recognition with regard to renewable energy and concession businesses
In the infrastructure management business, the Group sells electricity from renewable energy sources
and maintains, manages, and operates public facilities for which the Group holds operating rights. In
these businesses, revenue is recognized at a point in time because the performance obligation is satisfied
when the services are rendered to the customer in accordance with power supply contracts, facility use
contracts, etc. with customers.
The Group does not recognize a significant financing component because the consideration is generally
received within approximately one year of satisfaction of the performance obligation.

(2) Financial instruments
1) Securities
Bonds held to maturity: Stated using the amortized cost method (straight-line method)
Available-for-sale securities:
Securities other than shares, etc. that do not have a market price:
Stated at fair value (Net unrealized gains or losses on these securities are reported as a separate itemin net assets at a net-of-tax amount, and sales costs are calculated based on the moving averagemethod).
Shares, etc. that do not have a market price: Stated mainly at cost using the moving-average method.

2) Derivatives and hedge accounting
Stated at fair value except those accounted for under deferred hedge accounting.
Hedge accounting:i) Method of hedge accounting
Deferred hedge accounting is applied. Forward foreign exchange contracts that qualify for hedge
accounting are accounted for using the allocation method, and interest rate swaps that meet therequirements for exceptional treatment are accounted for using the exceptional accounting treatment.

ii) Hedging instruments and hedged items
Hedging instruments:	Derivative transactions (interest rate swaps and forward foreign exchange
contracts)
Hedged items:	Assets or liabilities with potential losses due to market fluctuations, etc., for which cash
flows are fixed and fluctuations are avoided.

iii) Hedging policy
The purpose is to avoid the risk of future fluctuations in interest rates and foreign exchange rates.

iv) Assessment of hedge effectivenessThe cumulative cash flow fluctuation of the hedged items and the hedging instruments are compared
for the respective past periods.

(3) Inventories
Costs on uncompleted construction contracts are stated at the specific identification cost.
Real estate held for sale, merchandise and finished products, project costs for development and others andmaterials in stock are stated at the specific identification cost (method of writing down the book value when the
profitability declines). Certain consolidated subsidiaries state materials in stock at cost using the last purchaseprice method (method of writing down the book value when the profitability declines).

(4) Property and equipment (except leased assets)
Depreciation of property and equipment (except leased assets) is determined by the declining-balance method.
However, the straight-line method is applied to buildings (except facilities attached to buildings) acquired on orafter April 1, 1998 and facilities attached to buildings and structures acquired on or after April 1, 2016.
Useful lives and residual values of property and equipment are in accordance with the Corporation Tax Act of Japan.
Certain assets of consolidated subsidiaries are depreciated using either the straight-line method or the unitsof-production method. The useful life of assets depreciated using the straight-line method is based on theireconomic useful life.

17(5) Intangible fixed assets (except leased assets) and long-term prepaid expense
The straight-line method is applied. Some rights to operate public facilities and assets related to replacement
investment to operate public facilities are amortized using the units-of-production method. Software for internal
use is amortized using the straight-line method over the estimated useful life (5 years).

(6) Leased assets
Leased assets related to finance leases that transfer ownership of the leased assets to the lessee aredepreciated using the same depreciation method as that applied to owned fixed assets. Leased assets related
to finance leases that do not transfer ownership of the leased property to the lessee are fully depreciated witha residual value of zero using the straight-line method over the lease term.

(7) Deferred assets
Bond issuance expenses, organization expenses and business commencement expenses:
Bond issuance expenses and organization expenses are fully amortized at the time of expenditure.
Business commencement expenses are amortized using the straight-line method over 5 years.

(8) Allowance for doubtful accounts
To provide for losses due to bad debt, an allowance is provided for general receivables based on historical bad
debt ratios, and for specific doubtful receivables based on individual assessments of collectability.

(9) Provision for repairs and warranty
To provide for major repairs of heavy machinery and equipment, a provision is provided for the estimated repair
cost to be borne by the current fiscal year.

(10) Provision for bonuses for employees
To provide for the payment of bonuses to employees, a provision is provided for the portion of the estimatedamount of bonuses to be paid, which is to be borne by the Company in the current fiscal year.

(11) Provision for bonuses for directors
To provide for the payment of bonuses to officers, a provision is provided for the estimated amount of bonuses
to be paid in the current fiscal year.

(12) Provision for warranties for completed construction
To provide for expenses related to contractual non-conformities and other costs related to completed
construction works, a provision is recorded based on actual results in a certain period of time in the past.

(13) Provision for loss on construction contracts
To provide for future losses on construction contracts, a provision is provided for estimated losses on
construction contracts in progress at the end of the current fiscal year for which losses are expected and theamount of such losses can be reasonably estimated.

(14) Provision for share awards
To provide for future delivery of the Company’s shares to officers in accordance with theRegulations on Stock Benefits for Officers, a provision is provided for the estimated amount of stock benefit
obligations as of the end of the current fiscal year.

18(15) Accounting method for retirement benefits
1) Method of attributing estimated retirement benefits to periods
In calculating the retirement benefit obligation, the estimated amount of retirement benefits is attributed tothe period up to the end of the current fiscal year based on the benefit formula method. Certain consolidated
subsidiaries use the straight-line attribution method.

2) Accounting method for actuarial gains or losses and prior service cost
Actuarial gains and losses are amortized by the straight-line method over a certain number of years (10 to
15 years) within the average remaining service period of employees at the time of their occurrence, witheach amount recognized as an expense starting from the following fiscal year.
Prior service cost is amortized by the straight-line method over a certain number of years (10 to 15 years)
within the average remaining service period of employees at the time the cost is incurred.

3) Adoption of the simplified method by small enterprises, etc.
Certain consolidated subsidiaries adopt the simplified method for the calculation of liabilities for retirement
benefits and retirement benefit expenses, using the retirement benefit amount required for voluntarytermination at the end of the fiscal year as the retirement benefit obligation.

(16) Amortization of goodwill
Goodwill is amortized on a straight-line basis over 5 years. In case the amount is not material, goodwill isexpensed immediately.

(17) Scope of funds in the consolidated statement of cash flows
For the preparation of the consolidated statements of cash flows, cash and cash equivalents comprise cashin hand, demand deposits, time deposits with maturities of three months or less, certificates of deposit, andcommercial paper.

(18) Other policies
Accounting principles and procedures adopted in cases where the relevant accounting standards are notclearly defined
Accounting method for construction joint ventures (JV):
Assets, liabilities, revenues, and expenses are recognized primarily in proportion to the percentage of themembers’ investment.

(19) Significant accounting estimates
1) Recognition of completed construction contracts for which revenue is recognizedover a certain period of time(a) C arrying amounts in the consolidated financial statements for the years ended
March 31, 2023 and 2022 are as follows:
For the year ended March 31

Completed construction contracts

¥

2023

2022

2023

(Millions ofyen)(Millions ofyen)(Thousands of
U.S. dollars)

362,654
53,559Other contracts

19¥354,779
50,914$

2,715,899
401,101

(b) Information on the nature of significant accounting estimates for identified itemsi) Calculation method
For construction projects for which the progress toward satisfying performance obligations canbe reasonably estimated, the revenues for the portion of construction completed by the end of thecurrent fiscal year are recognized after estimating the progress using the input method based on thecost incurred.

ii)	Key assumptions used in making the accounting estimates and the effect on thenext year’s consolidated financial statements
The following key assumptions are used in the calculation of the amount of completed construction
contracts based on the method of recognizing revenues over a certain period of time. The impact on
the consolidated financial statements for the following fiscal year is as follows.
Total construction revenue
In the course of construction, there are cases in which a portion of total construction revenue isrecorded based on estimates due to design changes agreed upon with the customer, etc., for whichsuch consideration is not fixed in a timely manner (the portion of total construction revenue recorded
based on such estimates is hereinafter referred to as “contract amount not yet contracted”). The
contract amount not yet contracted is continually reviewed as the estimates may change due to theprogress of negotiations with the client or the conclusion of a contract.
Total construction costs
Total construction costs are continuously reviewed because construction projects are highly
customized in terms of specifications and work content, and because changes in the construction
period, unexpected costs, fluctuations in unit prices of construction materials and labor, and changes
in design may occur during the course of construction.
As mentioned above, the recognition of construction revenue based on the method of recognizing
revenue over a certain period of time requires estimates based on certain assumptions and involves
uncertainty and the judgment of those responsible for the construction site and others. Therefore,changes in such assumptions and estimates may have a certain impact on the amount of completed
construction contracts in the consolidated financial statements for the next fiscal year.

2) Valuation of goodwill(a) C arrying amounts in the consolidated financial statements as of March 31, 2023 and2022 are as follows:
March 31

Goodwill

¥

2023

2022

2023

(Millions ofyen)(Millions ofyen)(Thousands of
U.S. dollars)

13,159¥19,892$

98,547(b) Information on the nature of significant accounting estimates for identified itemsi) Calculation method
Goodwill was recognized when Maeda Road Construction Co., Ltd. became a subsidiary on March
19, 2020, and has been amortized based on a reasonable estimate of the period over which the
goodwill will be effective.

20ii)	Key assumptions used in making the accounting estimates and the effect on thenext year’s consolidated financial statements
For goodwill resulting from business investments, the Group applied the “Accounting Standard for
Impairment of Fixed Assets,” etc. For the goodwill recognized when Maeda Road Construction Co.,
Ltd. became a subsidiary, the Company grouped assets by road civil engineering business as a unit,
and continuously checks whether there is any deviation from the assumptions made at the time of
the investment decision to identify signs of impairment and to recognize and measure impairment
losses. In the current fiscal year, as a result of comparing the actual operating profit of Maeda Road
Construction Co., Ltd. with the operating profit in the business plan used to calculate the stock priceat the time of acquisition, the Company determined that there were no signs of impairment.
If the estimates and assumptions need to be revised due to uncertain future changes in economic
conditions or other factors, an impairment loss may be recognized in the consolidated financial
statements in the following fiscal year or later.

(20) Changes in accounting policies
Application of Implementation Guidance on Accounting Standard for Fair Value Measurement
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
June 17, 2021; hereinafter the “Fair Value Measurement Guidance”) has been applied from the beginning of
the current fiscal year, and the new accounting policies prescribed by the Fair Value Measurement Guidance
will be prospectively applied in accordance with the transitional treatment prescribed in Paragraph 27-2 of the
Fair Value Measurement Guidance. There are no effects from the application of the Fair Value Measurement
Guidance on the consolidated financial statements.

(21) Accounting standards issued but not yet effective-	“Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)-	“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28,
2022)- “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022)

1) Overview
The classification of income taxes to be recorded when other comprehensive income is taxed and thetreatment of tax effects regarding sales of shares of subsidiaries when the group taxation regime is applied
are established.

2) Scheduled date of adoption
The Company expects to adopt the accounting standards and the guidance from the beginning of the fiscal
year ending March 31, 2025.

3) Impact of adoption of revised accounting standards and related implementation
guidance
The Company is currently evaluating the effect of adopting the accounting standards and the guidance on
its consolidated financial statements.

(22) Additional information
Transactions to offer the Company’s shares to employees, etc. through trust(a) Stock Benefit Trust Disposition-type Employee Stock Ownership Plan
The Company conducts transactions to offer the Company’s shares to the employee stock ownership plan
through a trust, with the aim of enhancing the Company and Group employees’ benefits and providing
incentives for those employees to increase the corporate value.

211) Descriptions of transactions
In March 2022, the Company introduced the “ESOP”.
To initiate the ESOP, the Company concluded the “Stock Benefit Trust (Disposition-type ESOP) Agreement”(hereinafter the trust established pursuant to the agreement shall be referred to as the “ESOP Trust”),
whereby the Company is to act as the administrator and the role of trustee is assigned to Mizuho Trust &Banking Co., Ltd. (hereinafter the “Trustee”). In addition, an agreement was concluded under which theTrustee is to re-entrust shares of the Company and other assets of the ESOP Trust to an account withancillary trustee, Custody Bank of Japan, Ltd. (hereinafter the “Trust Account E”). The Trust Account E
acquires shares of the Company that the Maeda Corporation Employee Stock Holding Partnership, theMaeda Road Employee Stock Holding Partnership, and the Maeda Seisakusho Employee Stock Holding
Partnership (hereinafter collectively the “Stock Holding Partnership”), is expected to obtain over five years
after the trust was set up, and periodically sells its holdings to the Stock Holding Partnership. If, by thetime of the ESOP Trust’s termination, gains equivalent to capital gains on sales of shares are accumulated
within the ESOP Trust through sales of Company’s shares by the Trust Account E to the Stock Holding
Partnership, then those gains will be distributed as residual assets to Stock Holding Partnership enrollees
that meet the requirements for eligible beneficiaries. Furthermore, to guarantee funds borrowed by theTrustee that enable the Trust Account E to acquire the Company’s shares, the Company is to repay any
such remaining borrowings pursuant to a guarantee agreement, in the event there are any remaining
borrowings equivalent to losses on sales of shares due to a downturn in the price of Company’s shares up
until termination of the ESOP Trust.

2) Company’s shares remaining in trust
The Company’s shares remaining in trust are recorded as treasury stock in the part of net assets at thebook value in trust (excluding the amount as ancillary expenses). The book value of the relevant treasury
stock was ¥3,356 million ($25,133 thousand) and ¥4,502 million, and the number of shares was 3,267
thousand shares and 4,221 thousand shares as of March 31, 2023 and 2022, respectively.

3) Book value of borrowings recorded using the gross method
Related borrowings amounted to ¥3,621 million ($27,118 thousand) and ¥4,545 million as of March 31, 2023
and 2022, respectively.

(b) Board Benefit Trust (BBT)
Maeda Corporation, a consolidated subsidiary of the Company, used to provide a performance-based
stock compensation plan called “Board Benefit Trust (BBT)” for directors (excluding outside directors)
and executive officers of Maeda Corporation (hereinafter the “Directors”). However, Maeda Corporation
has introduced a new performance-based stock compensation plan called “Board Benefit Trust (BBT)”(hereinafter the “Plan”) since September 1, 2022, in replacement of the conventional BBT for Directors,
in order to further clarify the linkage among the rewards for directors (excluding outside directors) and
executive officers of the Company (hereinafter the “Subject Directors”) and the Company’s performanceand the value of the stock. Subject Directors share not only the benefits of share price rises but also
the risks of share price declines with shareholders, thereby enhancing their awareness to contribute toimproving the Company’s performance and increasing its corporate value over the medium to long term.
Accordingly, the operating entity of “Board Benefit Trust (BBT)” was changed from Maeda Corporation to
the Company, and the trust assets were transferred to the Company.

1) Descriptions of transactions
The Plan is a performance-based stock compensation plan, under which the Company’s shares are
acquired through a trust (the trust to be established under the Plan is hereinafter referred to as the “Trust”)
with money contributed by the Company as the source of funds, and the Company’s shares and money
equivalent to the amount obtained by converting the Company’s shares to market value (hereinafter the“Company’s Shares, etc.”) are delivered to the Subject Directors in accordance with the Company’s
Regulations on Stock Benefits for Officers. The period when Subject Directors receive benefits shall in
principle be a certain period after each of the Company’s medium-term management plan period (the initialsubject period and each of the three fiscal years beginning after the initial subject period has elapsed).

222) Company’s shares remaining in trust
The Company’s shares remaining in trust are recorded as treasury stock in the consolidated balance
sheets at the book value in trust (excluding the amount as ancillary expenses). The book value of therelevant treasury stock was ¥304 million ($2,277 thousand) and ¥549 million, and the number of shares was
377 thousand shares and 657 thousand shares as of March 31, 2023 and 2022, respectively.

3. U.S. Dollar Amounts
The translation of yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside
Japan and has been made, as a matter of arithmetic computation only, at ¥133.53= U.S.$1.00, the approximate
rate of exchange in effect on March 31, 2023. The translation should not be construed as a representation that yen
have been, could have been, or could in the future be, converted into U.S. dollars at the above or any other rate.

23

4. Financial Instruments(1) Financial instruments
1) Policy for financial instruments
The Group raises funds mainly necessary for the construction business according to its financial planningby means of borrowings from banks and bonds. Temporary surplus funds are managed by means of safe
and secured financial instruments. The Group has a policy of utilizing derivative transactions in order tohedge its exposure to the risks mentioned below, but not for trading or speculative purposes.

2) Financial instruments, risks, and risks management
Notes and accounts of trade receivables are exposed to the credit risks of the clients. The Group attempts
to reduce the risks of failure or delay in collection of debt by the routine confirmation of the debt balancesand examination of credit standing of each client in accordance with the project award control procedures,the accounting rules, and other rules of the Group.
Marketable securities and investments in securities include mainly the securities of subsidiaries, affiliates,and business partners. Marketable securities of the business partners are exposed to the stock market
fluctuation risks, and the Group, examining the fair values and financial status of such companies, makes
continuous review of the possession situation, by taking the market situation and the relationship with suchcompanies into consideration.
Trade payables, electronically recorded monetary claims, and others as liabilities are to be paid mostly
within one year. Certain foreign currency trade payables are exposed to the foreign exchange market
fluctuation risks, but they are constantly maintained within the amount of the same foreign currency tradereceivables. Forward foreign exchange contracts are utilized against the payment for part of the amount
fixed by the long-term contract in order to hedge the exchange rate fluctuation risks.
Loans and bonds are utilized for the purpose of operating funds (mainly from short-term debt) and M&A,
investments in facilities and others (mainly from long-term debt). Variable interest loans are exposed tointerest rate fluctuation risks. Regarding part of long-term debt, interest rate swap transactions are utilized
per each contract in order to hedge the interest rate fluctuation risks and fix interest payments.
Liabilities related to right to operate public facilities are the accounts payable for rights to operate public
facilities, etc. and they will be paid over the operating period. The accompanying interest payments are
fixed.
Liquidity risks related to funding are managed through the timely preparation and updating of fundingplans by the department in charge based on reports from each department, as well as by maintaining
the funding liquidity in hand. The Cash Management System (CMS) is operated among the consolidated
subsidiaries and affiliates in order to promote mutual exploitation of surplus funds within the Group. It
enhances efficiency of funding, and is useful for the maintenance and management of the funding liquidity
in hand.
The derivative transactions are conducted and managed in accordance with the Group’s regulations for
authority for approval, and such transactions are conducted only with highly-rated financial institutions
in order to reduce the credit risks. The explanation for hedging instruments, hedged items, policy forhedge accounting and evaluation of effectiveness of hedging activities are provided in aforementioned“2) Derivatives and hedge accounting” of “(2) Financial instruments” in Note “2. Summary of Significant
Accounting Policies.”3) Supplemental explanation on fair value of financial instruments
The measurement of fair values of financial instruments are based on the fair market value. The financial
instruments without market value are evaluated by reasonable assessment. Such evaluations based on
variable factors may change in line with the adoption of new assumptions.

24

(2) Fair value of financial instruments
Book value on the consolidated balance sheet and fair value of financial instruments and their differences asof March 31, 2023 and 2022 are summarized as follows:(Millions of yen)March 31, 2023
Book value(a) Trade receivables¥

296,088¥¥(b) Marketable securities and investments in securities
Total assets(a) Corporate bonds

Fair value

Difference¥

295,715

371,728¥

382,184¥

10,45648,000¥47,493¥(507)

75,640¥(373)

86,46910,829(b) Long-term loans

54,88755,065178(c) Long-term non-recourse loans

3,894

3,889

(5)

(d) Liabilities related to right to operate public facilities(long-term liabilities)

99,590110,372

10,782

Total liabilities¥

206,371¥

216,819¥

10,448(a) Derivative transactions

¥

20

¥

20

¥

—

(Thousands of U.S. dollars)
March 31, 2023
Book value(a) Trade receivables$

2,217,389$$(b) Marketable securities and investments in securities
Total assets(a) Corporate bonds

Fair value

Difference$

2,214,596

2,783,853$

2,862,158$

78,305359,470$

355,673$(3,797)566,464$

647,562(2,793)81,098(b) Long-term loans

411,046

412,3791,333(c) Long-term non-recourse loans

29,162

29,125(37)(d) Liabilities related to right to operate public facilities(long-term liabilities)

745,825

826,571

80,746

Total liabilities$

1,545,503$

1,623,748$

78,245(a) Derivative transactions

$

150

$

150

$

—

Notes:

1.	Information on “Cash” is omitted. Information on “Time deposits,” “Electronically recordedmonetary claims,” “Trade payables,” “Short-term loans,” “Current portion of bonds payable,”“Current portion of long-term non-recourse loans,” and “Liabilities related to right to operate
public facilities” (current liabilities) is omitted because their fair values approximate their bookvalues due to their short maturities.
2.	Stocks without market prices and investments in partnerships are not included in “(b) Marketablesecurities and investments in securities.” The book value of such financial instruments on the
consolidated balance sheet are as follows.
(Thousands of
U.S. dollars)(Millions of yen)
Stocks, etc. without market prices
Investments in partnerships, etc.*¥

18,496
6,323$

138,516
47,353		* Investments in partnerships, etc. are mainly investments in silent partnerships, investments ininvestment partnerships, and preferred securities to special purpose companies. In accordancewith Paragraph 24-16 of the ASBJ Guidance No. 31 “Implementation Guidance on AccountingStandard for Fair Value Measurement,” they are not subject to disclosure of fair value.
25

3.	The value of assets and liabilities arising from derivatives is shown at net value, and with theamount in parentheses representing net liability position.
4.	
Repayment schedule of monetary receivables, marketable securities, and investments insecurities with maturities after the consolidated balance sheet date(Millions of yen)March 31, 2023
Within1 year(1) Cash and time deposits¥(2) Trade receivables –Notes and accounts

88,575

Over 1 year
within 5
years

Over 5 years
within 10
years

¥

¥

—

—

Over
10 years¥—

264,600

30,799286

403

National/Municipal bonds

—

100

—

—

Corporate bonds

30

—

—

—

National/Municipal bonds

—

—

20

—

Corporate bonds

—

—

84

—

(3) Marketable securities andinvestments in securities:
Held-to-maturity securities

Available-for-sale securities w/
maturities

Total

¥

353,205¥

30,899

¥

390

¥

403

(Thousands of U.S dollars)
March 31, 2023
Within1 year(1) Cash and time deposits$(2) Trade receivables –Notes and accounts

663,334

Over 1 year
within 5
years

Over 5 years
within 10
years

$

$

—

—

Over
10 years$—

1,981,577

230,652

2,142

3,018

National/Municipal bonds

—

749

—

—

Corporate bonds

225

—

—

—

—

—

150

—

(3) Marketable securities and investments in securities:
Held-to-maturity securities

Available-for-sale securities w/maturities
National/Municipal bonds
Corporate bonds
Total

—
$

2,645,136—$

231,401

629
$

2,921

—
$

3,018

5.	
Repayment schedule of corporate bonds, long-term debt, and lease obligations after the
consolidated balance sheet date		
Repayment schedule of corporate bonds, long-term loans and lease obligations after the
consolidated balance sheet date is presented in “9. Short-Term Debt, Long-Term Debt and Lease
Obligations.”

26

(Millions of yen)March 31, 2022
Book value(a) Trade receivables(a) Corporate bonds¥

Difference¥

310,802¥408,395¥

417,075

¥

8,680

¥

45,000¥44,710¥(290)(b) Marketable securities and investments in securities
Total assets

Fair value
310,780¥

106,295

97,593(22)8,702(b) Long-term loans

52,852

52,93684(c) Long-term non-recourse loans

9,947

9,942

(5)

103,844

114,850

11,006(d) Liabilities related to right to operate public facilities(long-term liabilities)
Total liabilities¥

211,643¥

222,438¥

10,795(a) Derivative transactions

¥

7

¥

7

¥

—

Notes:

1.	Information on “Cash and time deposits,” “Electronically recorded monetary claims,” “Trade
payables,” “Current portion of long-term non-recourse loans,” and “Liabilities related to right tooperate public facilities (current liabilities)” is omitted because they are in cash and their fair values
approximate their book values due to their short maturities.
2.	Stocks without market prices and investments in partnerships are not included in “(b) Marketablesecurities and investments in securities.” The book value of such financial instruments on the
consolidated balance sheet are as follows.
(Millions of yen)
Stocks, etc. without market prices
Investments in partnerships, etc.*¥

18,0584,502* Investments in partnerships, etc. are mainly investments in silent partnerships, investments
in investment partnerships, and preferred securities to special purpose companies. In
accordance with Paragraph 27 of the “Implementation Guidance on Accounting Standard for
Fair Value Measurement” (ASBJ Guidance No. 31, July 4, 2019, hereinafter referred to as the“Implementation Guidance on Accounting Standard for Fair Value Measurement”), they are notsubject to disclosure of fair value.
3.	The value of assets and liabilities arising from derivatives is shown at net value, and with theamount in parentheses representing net liability position.
4.	
Repayment schedule of monetary receivables, marketable securities, and investments insecurities with maturities after the consolidated balance sheet date27

(Millions of yen)March 31, 2022
Within1 year(1) Cash and time deposits¥(2) Trade receivables –Notes and accounts

77,777

Over 1 year
within 5 years

Over 5 years
within 10
years

¥

¥

—

—

Over
10 years¥—

276,937

33,711

100

55

30

—

—

—

(3) Marketable securities and investments in securities:
Held-to-maturity securities
Corporate bonds
Available-for-sale securities w/maturities
National/Municipal bonds

—

—

20

—

Corporate bonds

—

30

84

—

Total

¥

354,744¥

33,741

¥

204

¥

55

5.	
Repayment schedule of corporate bonds, long-term debt, and lease obligations after the
consolidated balance sheet date		
Repayment schedule of corporate bonds, long-term loans and lease obligations after the
consolidated balance sheet date is presented in “9. Short-Term Debt, Long-Term Debt and Lease
Obligations.”(3) Fair value information by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability
and materiality of inputs used to measure fair value.
Level 1 fair value:	Fair value measured using observable inputs, i.e., quoted prices in active markets for
assets or liabilities that are the subject of the measurement.
Level 2 fair value: 	Fair value measured using observable inputs other than Level 1 inputs.
Level 3 fair value: 	Fair value measured using unobservable inputs.
	If multiple inputs are used that are significant to the fair value measurement, the fair value
measurement is categorized in its entirety in the level of the lowest level input that issignificant to the entire measurement.

281) Financial instruments measured at fair value(Millions of yen)March 31, 2023
Fair value
Level 1

Level 2

Level 3

Total

Marketable securities and investments
in securities:
Available-for-sale securities
Stocks¥

68,702

¥

—

¥

—

¥

68,702National bonds

20

—

—

20

Corporate bonds

—

—

—

—

Investment trust

—

171

—

171

—

20

—

20

Derivative transactions:Interest rate related
Total assets¥

68,722

¥

191

¥

—

¥

68,913(Millions of yen)March 31, 2022
Fair value
Level 1

Level 2

Level 3

Total

Marketable securities and investments
in securities:
Available-for-sale securities
Stocks¥91,280

¥

—

¥

—

¥

91,280National bonds

20

—

—

20

Corporate bonds

—

—

31

31

Investment trust

—

176

—

176

Derivative transactions:Interest rate related
Total assets—¥

91,300

7
¥

183

—
¥

31

7
¥

91,514(Thousands of U.S dollars)
March 31, 2023
Fair value
Level 1

Level 2

Level 3

Total

Marketable securities and investments
in securities:
Available-for-sale securities
Stocks$514,506

$

—

$

—

$

514,506

National bonds

150

—

—

150

Corporate bonds

—

—

—

—

Investment trust

—

1,281

—

1,281

Derivative transactions:Interest rate related
Total assets—$

514,656

29

150
$

1,431

—
$

—

150
$

516,087

2) Financial instruments other than those measured at fair value(Millions of yen)March 31, 2023
Fair value
Level 1
Trade receivables –Notes and accounts¥

Level 2—¥

Level 3295,715

¥

Total
—

¥

295,715

Marketable securities and investments insecurities:
Shares of subsidiaries andaffiliates

17,448——17,448Municipal bonds

—

100

—

100

Investment trust

—

28

—

28

Held-to-maturity securities

Total assets
Corporate bonds¥

17,448¥295,843¥—¥

313,291¥—¥

47,493¥—¥47,493Long-term loans—

55,065—55,065

Non-recourse loans

—

3,889

—

3,889

Liabilities related to right to operate public facilities (long-term liabilities)—

110,372—

110,372

Total liabilities

¥

—

¥

216,819¥—¥

216,819(Millions of yen)March 31, 2022
Fair value
Level 1
Trade receivables –Notes and accounts¥

Level 2—¥

Level 3

310,780

¥

Total
—

¥

310,780

Marketable securities and investments insecurities:
Shares of subsidiaries andaffiliates

14,762——

14,762

—

27

—

27

Held-to-maturity securities
Investment trust
Total assets
Corporate bonds¥

14,762¥

310,807¥—¥

325,569¥—¥

44,709¥—¥44,709Long-term loans—

52,936—52,936

Non-recourse loans

—

9,943

—

9,943

Liabilities related to right to operate public facilities (long-term liabilities)—

114,850—

114,850

Total liabilities

¥

—

30

¥

222,438¥—¥

222,438(Thousands of U.S dollars)
March 31, 2023
Fair value
Level 1
Trade receivables –Notes and accounts$

Level 2—$

Level 32,214,596

$

Total
—

$

2,214,596

Marketable securities and investments insecurities:
Shares of subsidiaries andaffiliates

130,667——

130,667

—

749

—

749

Held-to-maturity securities
Municipal bonds
Investment trust
Total assets
Corporate bonds

—

210

—

210

$

130,667$

2,215,555$—$

2,346,222$—$

355,673$—$355,673

Long-term loans—

412,379—

412,379

Non-recourse loans—

29,125—29,125

Liabilities related to right to operate
public facilities (long-term liabilities)—

826,571—826,571

Total liabilities

$

—

$

1,623,748$—$

1,623,748

Notes:
1.	A description of the valuation techniques and inputs used in the fair value measurements		Trade receivables –Notes and accounts
		The fair value of these receivables is calculated based on the interest rate for each receivableclassified by a certain period of time, taking into account the period until maturity and credit risk,
and is classified as Level 2 fair value.
		Marketable securities and investments in securities
		Listed stocks and national bonds are valued using quoted market prices. Since listed stocks andnational bonds are traded in active markets, their fair value is classified as Level 1 fair value. On theother hand, even if they are valued using quoted market prices, their fair value is classified as Level
2 fair value if the market is not active. A principal example is municipal bonds. Private placement
bonds are classified as Level 3 fair value because the discount rate is unobservable. In principle, thefair value of private placement bonds is calculated by discounting the total amount of principal andinterest by the discount rate that incorporates credit risk and other risk factors for each category andeach coverage ratio based on internal ratings. The fair value of investment trusts is calculated basedon the prices provided by correspondent financial institutions and is classified as Level 2 fair value.
		Corporate bonds		The fair value of the bonds issued by the Company is based on market prices. The fair value of thecorporate bonds is classified as Level 2 fair value because the corporate bonds have market prices
but are not traded in an active market.
				Long-term loans and non-recourse loans		The fair value of these loans is calculated by discounting the total amount of principal and interest at
the interest rate that would be applicable to a similar new loan and is classified as Level 2 fair value.
		Liabilities related to right to operate public facilities (long-term liabilities)		The fair value of these liabilities is calculated by discounting future cash flows by a reasonableinterest rate based on the yield of national bonds, according to the scheduled payment period, andis classified as Level 2 fair value.
		
Derivative transactions
		The fair value of interest rate swaps is calculated based on the price quoted by the counterparty
financial institutions and is classified as Level 2 fair value.
2.	Information about Level 3 fair value of financial instruments measured at fair value
		 Note is omitted due to the immateriality of the financial instruments classified as Level 3.

31

5. 	Fair Value Information on Marketable Securities and Investments in Securities
Fair value information on marketable securities and investments in securities as of March 31, 2023 and 2022 issummarized as follows:(1) Held-to-maturity securities(Millions of yen)March 31, 2023
Book value

Unrealized
gain (loss)

Fair value

Securities with fair value that exceeds book value
National/Municipal bonds

¥

100

¥

100

¥

0

Corporate bonds, etc.

—

—

—

Sub-total

100

100

0

National/Municipal bonds

—

—

—

Corporate bonds, etc.

30

28

(2)

Sub-total

30

28

(2)

Securities with fair value that does not exceed book
value

Total

¥

130

¥

128

¥

(2)

(Millions of yen)March 31, 2022
Book value

Unrealized
gain (loss)

Fair value

Securities with fair value that exceeds book value
Corporate bonds, etc.

¥

—

¥

—

¥

—

Securities with fair value that does not exceed bookvalue
Corporate bonds, etc.

30

Total

¥

30

27
¥

27

(3)
¥

(3)

(Thousands of U.S dollars)
March 31, 2023
Book value

Unrealized
gain (loss)

Fair value

Securities with fair value that exceeds book value
National/Municipal bonds

$

749

$

749

$

0

Corporate bonds, etc.

—

—

—

Sub-total

749

749

0

National/Municipal bonds

—

—

—

Corporate bonds, etc.

225

210

(15)

Sub-total

225

210

(15)

Securities with fair value that does not exceed book
value

Total

$

32

974

$

959

$

(15)

(2) Available-for-sale securities(Millions of yen)March 31, 2023
Acquisition
cost

Book value

Unrealized
gain (loss)

Securities with book value that exceeds acquisition
cost
Stocks¥60,403¥41,055¥

19,348

Bonds
National/ Municipal bonds

20

20

0

Other

—

—

—

Other

102

Sub-total

97

5

¥

60,525¥

41,172¥

19,353

¥

8,299

¥

9,237

¥

(938)

Securities with book value that does not exceed
acquisition cost
Stocks
Bonds
National/ Municipal bonds

—

—

—

Other

—

—

—

Other

70

84

(14)

Sub-total

¥

8,369

¥

9,321

¥

(952)

Total

¥

68,894¥50,493¥

18,401(Millions of yen)Book value
Securities with book value that exceeds acquisition
cost
Stocks
Bonds
National/ Municipal bonds
Other
Other
Sub-total
Securities with book value that does not exceed
acquisition cost
Stocks
Bonds
National/ Municipal bonds
Other
Other
Sub-total
Total

33

¥

80,308March 31, 2022
Acquisition
cost¥

48,406

¥

20
31
109
80,468¥

10,971¥¥—0
68
11,03991,507

Unrealized
gain (loss)¥

31,902¥20
30
9748,553¥0
1
1231,915¥

12,236¥(1,264)

¥
¥

—
0
84
12,32060,873

¥
¥

—
—
(17)
(1,281)
30,634

(Thousands of U.S. dollars)
March 31, 2023
Acquisition
cost

Book value

Unrealized
gain (loss)

Securities with book value that exceeds acquisition
cost
Stocks$452,355$

307,458$

144,897

Bonds
National/ Municipal bonds

150

150

0

Other

—

—

—

Other

764

Sub-total

727

37

$

453,269$

308,335$

144,934$

62,151$

69,176$(7,025)

Securities with book value that does not exceed
acquisition cost
Stocks
Bonds
National/ Municipal bonds

—

Other
Other

—

—

—

—

—

524

629

(105)

Sub-total$

62,675$69,805$(7,130)Total$

515,944$

378,140$

137,804

Note: 	Unlisted stocks, etc. (book value: ¥6,021 million ($45,091 thousand) and ¥6,617 million as of March
31, 2023 and 2022, respectively) are not included in “Available-for-sale securities” since they arestocks, etc. without market prices.

(3) Gains and losses on sale of available-for-sale securities(Millions of yen)
For the year ended March 31, 2023
Proceeds fromsale
Stocks¥21,934Gain
on sale¥Losson sale11,672

¥

12

Bonds
National/ Municipal bonds

—

—

—

Other

29

29

—

—

—

—

Other
Total

¥

34

21,963¥

11,701¥

12

(Millions of yen)
For the year ended March 31, 2022
Proceeds fromsale
Stocks¥11,018Gain
on sale¥Losson sale

7,808

¥

0

Bonds
National/ Municipal bonds

—

—

—

Other

—

—

—

—

—

—

Other
Total

¥

11,018

¥

7,808

¥

0

(Thousands of U.S. dollars)
For the year ended March 31, 2023
Proceeds fromsale
Stocks$164,263

Gain
on sale$Losson sale87,411

$

90

Bonds
National/ Municipal bonds

—

—

—

Other

217

217

—

—

—

—

Other
Total

$

164,480$

87,628$90(4) Impairment loss on securities
Impairment loss on marketable securities (¥228 million ($1,707 thousand) for available-for-sale securities and¥30 million ($225 thousand) for bonds) amounted to ¥258 million ($1,932 thousand) for the year ended March
31, 2023.
Impairment loss on marketable securities (for available-for-sale securities) amounted to ¥687 million for theyear ended March 31, 2022.

(5) Investments in non-consolidated subsidiaries and affiliates
March 31

Investment securities (stocks)

35

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

25,41522,000190,332

6. Derivative Transactions(1) Derivative transactions not subject to hedge accounting
For the year ended March 31, 2023:
Not applicable
For the year ended March 31, 2022:
Not applicable(2) Derivative transactions subject to hedge accounting
Currency-related transactions
For the year ended March 31, 2023:(Millions of yen)March 31, 2023

Hedge accounting
methodType

Main hedged
item

Allocation treatmentofforward foreignexchange contracts

Forward foreignexchange contracts
Buy
Euro

Forecasted
foreign currencydenominatedcontracts

Contracted
value

Contracted
value
over 1 year

Fair value

¥909

¥91

¥8

(Thousands of U.S. dollars)
March 31, 2023
Hedge accounting
methodType

Mainhedged item

Allocation treatmentofforward foreignexchange contracts

Forward foreignexchange contracts
Buy
Euro

Forecasted
foreign currencydenominatedcontracts

For the year ended March 31, 2022:
Not applicable

36

Contracted
value

Contracted
value
over 1 year

Fair value$6,807$681$60

Interest rate-related transactions(Millions of yen)March 31, 2023
Contracted
value

Contracted
value
over 1 year

Long-term loans¥28,700¥21,980

Non-recourse
loans¥4,816¥3,894Hedge accounting
methodType

Main hedged
item

Exceptional
accounting treatment
for interest rate swaps

Interest rate swap
transactions-variable interest
received andfixed interest paid

Deferred hedge
accounting

Interest rate swap
transactions-variable interest
received andfixed interest paid

Fair value(Note)¥20(Millions of yen)March 31, 2022
Contracted
value

Contracted
value
over 1 year

Long-term loans¥34,420¥26,404

Non-recourse
loans¥5,662¥4,816

Hedge accounting
methodType

Main hedged
item

Exceptional
accounting treatment
for interest rate swaps

Interest rate swap
transactions-variable interest
received andfixed interest paid

Deferred hedge
accounting

Interest rate swap
transactions-variable interest
received andfixed interest paid

Fair value(Note)¥7(Thousands of U.S. dollars)
March 31, 2023
Hedge accounting
methodType

Mainhedged item

Contracted
value

Contracted
value
over 1 year

Fair value

Exceptional
accounting treatment
for interest rate swaps

Interest rate swap
transactions-variable interest
received andfixed interest paid

Long-term loans$214,933$164,607(Note)

Deferred hedge
accounting

Interest rate swap
transactions-variable interest
received andfixed interest paid

Non-recourse
loans$36,067$29,162$150

Note: 	The fair value of interest rate swaps that qualify for exceptional accounting treatment is included in
the fair value of the relevant long-term loans because they are accounted for as an integral part ofthe long-term loans that are hedged.

37

7. Impairment Loss on Fixed Assets
Impairment losses on fixed assets for the years ended March 31, 2023 and 2022 are summarized as follows:
For the year ended March 31
2023

2023

(Millions of yen)(Thousands of
U.S. dollars)

Location

Type of assets

Use

Tokyo

Land, building and structure,
construction in progress and otherFor rent and other ¥

973

Fukui

Land, building and structure, machineryand equipment, vehicles, tools, furnitureand fixtures

For business use

169

1,266

Kanagawa

Building and structure, machinery andequipment, vehicles, tools, furnitureand fixtures

For business use

73

547

Ehime

Building and structure, machinery andequipment, vehicles, tools, furnitureand fixtures

For business use

63

472

HiroshimaLand, building and structure, machineryand equipment, vehicles, tools, furnitureand fixtures

For business use

56

419

Yamaguchi

Building and structure, machinery andequipment, vehicles, tools, furnitureand fixtures

For business use

36

270

Iwate, etc.

Land, building and structure, machineryand equipment, vehicles, tools, furnitureand fixtures

For business use,
etc.

92

689

$

7,287

Fixed assets for business use are grouped by business office, and fixed assets for rent, golf courses and the fixed
assets to be disposed are grouped based on an individual asset basis.
Due to a decline in profitability of rent assets, etc., the book value of the following assets was reduced to therecoverable amount, and the amount of the reduction was recorded as an impairment loss of ¥1,462 million($10,949 thousand) under other expenses.
The major breakdown is ¥662 million ($4,958 thousand) for buildings and structures, ¥265 million ($1,985 thousand)for machinery and equipment, vehicles, and tools, furniture and fixtures, ¥412 million ($3,085 thousand) for land,¥78 million ($584 thousand) for construction in progress, and ¥45 million ($337 thousand) for other.
The recoverable amount of these assets is the higher of net realizable value or value in use. The net realizable value
is calculated based on market value, etc., and the value in use is calculated by discounting future cash flows by
3.5%. The value in use is estimated to be zero for those assets with negative future cash flows.

38

For the year ended March 31
2022(Millions of yen)
Location

Type of assets

Use

ShizuokaLand, building and structure, machineryand equipment, vehicles, tools, furniture and fixtures

For business use

Tokyo

Building and structure, machinery andequipment, vehicles, tools, furnitureand fixtures

For rent and other

85

Chiba

Building and structure

For business use

30

Fukushima

Building and structure, machinery andequipment, vehicles, tools, furnitureand fixtures

For business use

20

ShimaneLand, building and structure, machineryand equipment, vehicles, tools, furniture and fixtures

For business use

17

Akita, etc.

Land, building and structure, machineryand equipment, vehicles, tools, furniture and fixtures

For business use,
etc.

13

¥

331

Fixed assets for business use are grouped by business office, and fixed assets for rent, golf courses and the fixed
assets to be disposed are grouped based on an individual asset basis.
Due to a decline in profitability of business assets, etc., the book value of the following assets was reduced to therecoverable amount, and the amount of the reduction was recorded as an impairment loss of ¥495 million underother expenses.
The major breakdown is ¥208 million for buildings and structures, ¥280 million for machinery and equipment,
vehicles, and tools, furniture and fixtures, and ¥7 million for land.
The recoverable amount of these assets is the higher of net realizable value or value in use. The net realizablevalue is calculated based on market value, etc., while the value in use is estimated to be zero for those assets withnegative future cash flows.

39

8. Inventories
Inventories as of March 31, 2023 and 2022 are summarized as follows:
March 31

Real estate held for sale

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

$

¥

1,895

1,988

14,191

Merchandise and finished products

2,341

1,573

17,532

Construction work in progress

30,004

13,698

224,699

Materials in stock

3,815

3,444

28,570Total

Notes:¥

38,055¥20,703$284,992

1.	Inventories are written down based on any decrease in profitability and ¥38 million ($285 thousand)and ¥33 million of losses on write-downs of inventories for the years ended March 31, 2023 and2022, respectively, are included in “Cost of Sales” in the Consolidated Statements of Income.
2.	The amount of construction work in progress is not offset by the provision for losses on construction
contracts and both are presented. The amount of construction work in progress for which a provision
for losses on construction contracts is provided is ¥67 million ($502 thousand) and ¥88 million as ofMarch 31, 2023 and 2022, respectively.

9. Short-Term Debt, Long-Term Debt and Lease Obligations
Short-term debt and lease obligations due within one year as of March 31, 2023 and 2022 are summarized asfollows:
March 31

Bank loans bearing interest with an average rate of 0.4%
per annum

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

$

¥

Current portion of long-term loans
Current portion of non-recourse loans
Total short-term debt
Lease obligations due within one year
Liabilities related to rights to operate public facilities(current)
Total

¥

40

24,60075,910184,228

12,088

8,583

90,527

923

1,194

6,912

37,611

85,687

281,667

134

236

1,004

4,664

4,555

34,92842,409¥90,478$317,599

Long-term debt and lease obligations as of March 31, 2023 and 2022 are summarized as follows:
March 31
2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)¥$

Corporate bonds-Issued by Maeda Corporation
0.28% 23rd series bonds due in 2023 (with interbond pari passu clause)¥

10,000(10,000)

10,00074,890(74,890)

0.31% 25th series bonds due in 2029 (with interbond pari passu clause)

10,00010,00074,890

0.15% 26th series bonds due in 2024 (with interbond pari passu clause)

5,000

5,000

37,444

0.48% 27th series bonds due in 2030 (with interbond pari passu clause)

10,00010,00074,8900.22% 28th series bonds due in 2025 (with interbond pari passu clause)

10,00010,00074,89013,000—97,35558,00045,000434,359

Long-term loans due in between 2023~2027 bearing
interest with an average rate of 0.7% per annum

66,97561,434

501,573

Long-term non-recourse loans

4,816

11,142

36,067

71,791

72,576537,640(13,010)(9,777)(97,432)

58,781

62,799440,208

413

452

3,093

99,590103,844745,825

Corporate bonds-Issued by INFRONEER Holdings Inc.
0.42% 1st series bonds due in 2027
Sub-total

Less -Portion due within one year
Total
Lease obligations due after one year
Liabilities related to right to operate public facilities due
after one year
Total

¥

216,784¥

212,095$

1,623,485

Note:	The amount in the parenthesis in the column of the balance at the end of the year represents the amount of
the current portion of corporate bonds.
	Average rates of interest are calculated by the weighted average method using the interest rates and the loanbalance as of the year end. Average rates of interest of lease obligations are omitted since the balance oflease obligations in the balance sheets includes the interest thereof.

41

The annual maturities of short-term debt, corporate bonds, long-term debt, and liabilities related to right to operate
public facilities as of March 31, 2023 and 2022 are as follows:(Millions of yen)March 31, 2023

Year ending
March 312024

Short-term
debt¥

24,600

Corporatebonds¥

10,000Long-term debt

Non-recourse
debt

Liabilities
related to rightto operate
public facilities

¥

¥

¥

12,088

923

4,664

2025

—

5,000

12,030

889

4,719

2026

—

10,000

9,799

1,094

4,775

2027

—

—

13,278

1,176

4,829

2028

—

13,00019,780734

4,885

2029 and
thereafter—

20,000——80,382

Total¥

24,600¥58,000¥66,975

¥

4,816

¥

104,254(Millions of yen)March 31, 2022

Year ending
March 312023

Short-term
debt¥

75,910

Corporate
bonds

¥

—

Long-term debt

Non-recourse
debt

Liabilities
related to rightto operate
public facilities

¥

¥

¥

8,583

1,194

4,555

2024

—

10,00012,041

1,280

4,609

2025

—

5,000

12,030

1,254

4,664

2026

—

10,000

9,799

1,471

4,719

2027

—

—

14,201

1,564

4,774

2028 and
thereafter—

20,000

4,780

4,379

85,078

Total¥

75,910¥45,00042¥

61,434¥

11,142¥

108,399

(Thousands of U.S. dollars)
March 31, 2023

Year ending
March 312024

Short-term
debt$

184,228

Corporatebonds$

74,890Long-term debt

Non-recourse
debt

Liabilities
related to rightto operate
public facilities

$

$

$

90,527

6,912

34,9282025—

37,44490,092

6,658

35,3402026—

74,88973,384

8,193

35,7602027——

99,438

8,807

36,1642028—

97,355

148,132

5,497

36,5842029 and
thereafter—

149,781——

601,977

Total$

184,228$434,35943$

501,573$

36,067$780,753

The assets pledged as collateral for short-term debt and long-term debt as of March 31, 2023 and 2022 aresummarized as follows:
March 31

Investments in securities

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

$

89

¥

89

275

Other investments
Total

364

¥

667

401
¥

490

2,059
$

2,726

The assets pledged as collateral for non-recourse debt as of March 31, 2023 and 2022 are summarized as follows:
March 31

Cash and time deposits

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

$

¥

13,357

Trade receivables

1,424

Materials in stock—

Buildings and structures
Machinery and equipment, vehicles, and tools, furnitureand fixtures

Total

¥

100,030

1,447

10,664

*

24

—

—

*

1

—

2

*

5,511

15

109,721784,296

104,727

Right to operate public facilities

13,353

119,510¥130,057$

895,005* ¥24 million of materials in stock, ¥1 million of buildings and structures and ¥5,507 million of machinery andequipment, vehicles, and tools, furniture and fixtures are pledged as a revolving mortgage for factory foundationof a consolidated subsidiary for the year ended March 31, 2022.

4410. Lease Transactions
Finance lease contracts: (as lessee)
Finance lease contracts that do not transfer ownership
Leased assets include:
property and equipment, which mainly consist of machinery for rent in the construction machinery sales andrelated service business of a consolidated subsidiary, Maeda Seisakusho Co., Ltd.
Depreciation cost of leased assets is computed by:as stated in “Note 2. Summary of Significant Accounting Policies (6) Leased assets.”
Operating lease contracts:
Outstanding minimum lease payments under non-cancelable operating lease contracts
March 31
2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

(As lessee)
Minimum lease payments
Within one year
Over one year

451
2,794

Total

¥

162
2,556

3,245

¥

576

¥

3,378
20,924

2,718

$

557

$

24,302(As lessor)
Minimum lease payments
Within one year¥

Over one year

4,437

Total

¥

45

5,013

5,007
¥

5,564

4,314
33,228$37,542

11. Retirement Benefit Plans
The Group has a corporate pension fund plan and an employees’ pension fund plan as defined benefit pension
plans, as well as defined contribution pension plans and the retirement lump sum payment plans.
The Group may provide extra severance payments, which are not subject to the pension obligation calculated inaccordance with the retirement benefit accounting, to employees upon retirement and in other circumstances.
Certain consolidated subsidiaries calculate the liabilities for retirement benefits and retirement benefit expenses byusing the simplified method.
As of March 31, 2023, the Group has two corporate pension funds and a single employees’ pension fund, and 17
companies of the Group have the retirement lump sum payment plan.
Defined benefit plans
The changes in the retirement benefit obligation for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Balance at the beginning of the year

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

68,07869,606509,833

Service cost

2,637

2,714

19,748Interest cost

214

159

1,603

Actuarial gain and loss

(1,295)(753)(9,698)Retirement benefit paid

(3,695)(3,780)(27,672)

Prior service cost

657

—

4,920

Increase resulting from change in scope of
consolidation

—

132

—

Balance at the end of the year¥

66,596¥

68,078$498,734

The changes in plan assets for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Balance at the beginning of the year

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

$

¥

66,217

63,372495,896

Expected return on plan assets

955

1,064

7,152

Actuarial gain and loss

(824)

728

(6,171)

Contributions by the Company

2,646

3,835

19,816Retirement benefit paid

(2,886)(2,782)(21,613)

Balance at the end of the year¥46

66,108¥66,217$495,080

The following table reconciles the Group’s funded benefit obligation and plan assets to the liabilities and assets for
retirement benefits recognized in the consolidated balance sheet as of March 31, 2023 and 2022.
March 31

Funded retirement benefit obligation

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)¥¥

49,541

51,310$371,010(66,109)(66,217)(495,087)(16,568)(14,907)(124,077)

17,056

16,768

127,732

488

1,861

3,655

Liability for retirement benefits

17,056

16,768

127,732

Asset for retirement benefits(16,568)(14,907)(124,077)

Plan assets at fair value

Unfunded retirement benefit obligation
Net liability for retirement benefits in the balance sheets

Net liability for retirement benefits in the balance sheets

¥

488

¥

1,861

$

3,655

The components of retirement benefit expense for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Service cost

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

2,637

2,714

$

19,748Interest cost

214

159

1,603

Expected return on plan assets(955)(1,064)(7,152)

Amortization of actuarial gain and loss

498

652

3,729

Amortization of prior service cost

(17)

(20)

(127)

—

2

—

Other
Retirement benefit expense

¥

2,377

¥

2,443

$

17,801

The components of retirement benefits liability adjustments included in other comprehensive income (before tax
effect) for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Prior service cost

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)¥¥

Actuarial gain and loss

(674)

¥

47

295

$

2,133

969

Total

(20)

¥

2,113

(5,048)
7,257

$

2,209

The components of retirement benefits liability adjustments included in accumulated other comprehensive income(before tax effect) as of March 31, 2023 and 2022 are as follows:
March 31

Unrecognized prior service cost

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Unrecognized actuarial gain and loss

(493)

181

3,319
¥

Total

2,826

(3,692)

2,351
¥

2,532

24,856$21,164The plan assets at fair value, by major category, as a percentage of total plan assets as of March 31, 2023 and2022 are as follows:
March 31
2023

2022

Bonds

44.1%

44.8%

Stocks

25.5%

26.5%

Cash on hand in banks

1.9%

1.4%

Other

28.5%

27.2%

100.0%

100.0%Total

The current and projected allocations of plan assets and the current and expected future long-term investment
rates of return on various assets constituting the plan assets are considered in determining the expected long-term
rate of return on plan assets.
The assumptions used in accounting for the above plans are as follows:
March 31
2023

2022

Discount rates (Notes 1 and 2)

0.4% - 0.6%

0.3% - 0.6%

Expected rates of return on plan assets

1.0% - 2.2%

1.0% - 2.8%

Expected rates of salary increase

2.5% - 2.7%

2.5% - 2.7%

Notes:

1.	A method using multiple discount rates set for each period of projected benefit payments is used,
but the discount rates are expressed as a weighted average.
2.	Certain consolidated subsidiaries use a single weighted-average discount rate that reflects theestimated period of payment of retirement benefits and the amounts expected to be paid in eachperiod.

The Group contributions to the defined contribution pension plans were ¥847 million ($6,343 thousand) and ¥835
million for the years ended March 31, 2023 and 2022, respectively.
One of the consolidated subsidiaries participates in a multi-employer pension fund plan as a defined benefit plan,
which is accounted for in the same manner as a defined contribution plan since it is impracticable to reasonably
estimate an amount of plan assets for the contributions made by the Company.

48

Contributions made to the multi-employer pension fund plan for the years ended March 31, 2023 and 2022 were
¥22 million ($165 thousand) and ¥21 million, respectively.
Funded status of the entire multi-employer pension fund plan as of March 31, 2022 and 2021 was as follows.
March 31

Fair value of plan assets

2022

2021

2022

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Total amount of actuarial loss on past service liability andminimum actuarial reserve
Difference

23,884
19,461¥

4,423

22,65919,750¥2,909

178,866
145,743$

33,123The main factors in the difference in the funded status of the entire multi-employer pension fund plan above consistof a separate reserve of ¥1,198 million ($8,972 thousand) and ¥1,198 million, an amount equivalent to the risk offinancial deterioration of ¥5,097 million ($38,171 thousand) and ¥5,097 million, and the present value of the amountavailable for additional contributions of ¥(1,871) million ($(14,012) thousand) and ¥(3,386) million for the years ended
March 31, 2022 and 2021, respectively.
The Group employees enrolled in the entire multi-employer pension fund plan as of March 31, 2022 and 2021
constituted 2.52% and 2.63%, respectively. The percentage does not correspond to the percentage of the Group’s
actual contribution.

49

12. Stock Option
1. Among transactions in which shares are delivered without consideration as compensation to directors, details,
scale, and changes in the pre-delivery type are as follows:(1) Details of pre-delivery type2022 Pre-delivery typeClassification and number of grantees

Four (4) Directors of the Company (Note 1)Six (6) Executive officers of the Company (Note 2)

Number of shares granted by type of stock

Common stock 122,629 shares

Date of grant

July 22, 2022

Transfer restriction period

From July 22, 2022 (the “Allotment date”) to the dateof retirement of any director or executive officer of theCompany

Conditions for cancellation

On the condition that the subject officer has continuously
held the position of director or executive officer of theCompany during the period determined by the Company
based on the term of office, etc. of each subject officer,
the Company will cancel the restriction on transfer of all
the allotted shares of common stock of the Company atthe expiration of the restriction period.

2021 Pre-delivery typeClassification and number of grantees

Four (4) Directors of the Company (Note 1)
Seven (7) Executive officers of the Company (Note 2)

Number of shares granted by type of stock

Common stock 102,669 shares

Date of grant

November 18, 2021

Transfer restriction period

From November 18, 2021 (the “Allotment date”) to thedate of retirement of any director or executive officer of
the Company

Conditions for cancellation

On the condition that the subject officer has continuously
held the position of director or executive officer of theCompany during the period from October 1, 2021 to
the date of the Company’s annual general meeting ofshareholders to be held in 2022, the Company will cancel
the restriction on transfer of all the allotted shares ofcommon stock of the Company at the expiration of therestriction period.

Notes:

1. Excluding outside Directors.
2. Executive officers who concurrently serve as directors are excluded.

50

(2) Scale of pre-delivery type and its changes
The information is on the pre-delivery type where the number of shares with unreleased restrictions on transfer
existed in the current fiscal year.

1) Amount of expenses recorded
March 31

Remuneration for directors ingeneral and administrative expenses

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of U.S.
dollars)

¥

117

¥

63

$

876

2) Number of shares2022 Pre-delivery type
Unreleased as of the end of the previous fiscal year (shares)
Granted (shares)—
122,629

Acquired without consideration (shares)—

Released restrictions on transfer (shares)—

Unreleased as of the end of the current fiscal year (shares)

122,6292021 Pre-delivery type
Unreleased as of the end of the previous fiscal year (shares)

102,669

Granted (shares)—

Acquired without consideration (shares)—

Released restrictions on transfer (shares)

10,295

Unreleased as of the end of the current fiscal year (shares)

92,3743) Unit price information
Fair unit price at the grant date: ¥926 ($6.93) for 2022 pre-delivery type and ¥922 for 2021 pre-delivery type
2. Method of estimating fair unit price
The unit price is the closing price of shares of the Company’s common stock on the Tokyo Stock Exchange on
the business day preceding the date of the resolution of the Board of Directors.
3. Method of estimating the number of shares with unreleased restrictions on transfer
For pre-delivery, a method to reflect only the actual number of shares acquired without consideration is basicallyused, since it is difficult to reasonably estimate the number of shares to be acquired without consideration.

51

13. Income Taxes
Significant components of deferred tax assets and liabilities as of March 31, 2023 and 2022 are as follows:
March 31
2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Deferred tax assets:
Net loss carried forward

235

776

1,760

Liability for retirement benefits

5,452

5,735

40,830

Write-down of inventories and other

2,863

4,325

21,441

Impairment loss on fixed assets

4,117

4,521

30,832

Provision for bonuses for employees

3,142

3,097

23,530Allowance for doubtful accounts

218

242

1,633

Provision for losses on construction contracts

138

260

1,033

Unrealized inter-company profit of fixed assets

427

569

3,198

Evaluation difference on capital consolidation

3,868

3,971

28,967

Other

6,696

6,021

50,14627,156

29,517203,370

Less – Valuation allowance(16,191)(19,256)(121,254)

Deferred tax assets

10,965

10,261

82,116

Unrealized gain on investment in securities(5,343)(8,960)(40,013)

Evaluation difference on capital consolidation(7,388)(8,007)(55,328)

Asset for retirement benefits(5,062)(5,029)(37,909)

Retained earnings of affiliates

(260)

(82)

(1,947)(1,853)(1,647)(13,877)(19,906)(23,725)(149,074)

Total

Deferred tax liabilities:

Other
Total deferred tax liabilities
Net deferred tax liabilities¥(8,941)¥(13,464)$(66,958)(Change in presentation)“Provision for bonuses for employees,” which was included in “Other” under “Deferred tax assets” in theprevious fiscal year, is separately presented in the current fiscal year, in consideration of its materiality.
As a result, ¥9,118 million presented as “Other” in the previous fiscal year has been reclassified as “Provision
for bonuses for employees” of ¥3,097 million and “Other” of ¥6,021 million.

52

The major components of the difference between the statutory tax rate and effective income tax rate for the years
ended March 31, 2023 and 2022 are as follows:
For the year ended March 31
2023
Statutory tax rate

2022

30.6%

30.6%

Non-deductible expenses

0.9

0.8

Non-taxable income

(0.3)

(0.2)

Per capita levy

0.6

0.7

Special deductible income taxes

(0.6)

(0.8)

Retained earnings of affiliates

0.3

(0.1)

Amortization of goodwill

4.0

4.6

Elimination of dividend income

Changes in the tax rate resulting from:

0.1

0.7

Gain on equity method investments

(0.6)

(0.4)

Less-Valuation allowance and other

(6.1)

(2.8)

28.9%

33.1%

Effective income tax rate

14. Shareholders’ Equity
The Companies Act of Japan provides that an amount equivalent to 10% of the amount of the deduction fromsurplus as a result of the payment of dividends of surplus be recorded as additional paid-in capital or retained
earnings reserves, until the sum of the additional paid-in capital and the retained earnings reserves equals 25% of
the common stock amount. Such a distribution of dividends of surplus can be made by resolution of a shareholders
meeting, or by the Board of Directors if certain conditions are met.

15. Commitments and Contingent Liabilities
The contingent liabilities of the Company as of March 31, 2023 and 2022 are summarized as follows:
March 31

Endorsed trade notes receivable

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Guarantees on securitized trade notes receivable

2,657

8,243

19,898—

12—

Asai Construction Co., Ltd.

665

765

4,980

Ozu Biomass Power Co., Ltd.*

691

—

5,175

ENE SEA BASE KAGOSHIMA Co., Ltd.*

30

—

225

Izumon Retailing Co., Ltd.*

41

46

307

Maeda Vietnam Co., Ltd.*

1,634

393

12,237

Sompo Japan Insurance Inc.

776

—

5,811

Loan guarantee for

Letters of guarantee for

Total

¥

*Company affiliates
53

6,494

¥

9,459

$

48,633

16. Selling, General and Administrative Expenses
The major items of selling, general and administrative expenses in the consolidated statements of income for theyears ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Salaries to employees

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

19,556

17,666

146,454

Experimental research costs

6,455

7,125

48,341

Amortization of goodwill

6,732

6,748

50,416Retirement benefit expenses

1,089

1,068

8,155

Provision for bonuses for employees

3,162

3,160

23,680Allowance for doubtful accounts

52

6

389

Provision for bonuses for directors

488

247

3,655

17. Research and Development Expenses
Research and development expenses included in selling, general and administrative expenses and manufacturingcosts for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Research and development expenses

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

4,917

5,670

36,823

18. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended March 31, 2023 and 2022
amounted to ¥221 million ($1,655 thousand) and ¥390 million, respectively.

54

19. Gain on Sale of Fixed Assets
The details of gain on sale of fixed assets for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Land

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

532

129

3,984

Buildings

15

69

113

Machinery and equipment, vehicles, tools, furniture, andfixtures

62

134

464

Total

¥

¥

609

332

$

4,561

20. Loss on Retirement of Fixed Assets
The details of loss on retirement of fixed assets for the years ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Buildings

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

227

224

1,700

Machinery and equipment, vehicles, tools, furniture, andfixtures

136

244

1,018

Others

63

61

472

Total

¥

426

¥

529

$

3,190

21. Reduction Entry Resulting from Government Subsidy
Excluded from the acquisition cost of tangible fixed assets due to receiving government subsidies for the years
ended March 31, 2023 and 2022 are as follows:
For the year ended March 31

Buildings and structures

55

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

287

287

2,149

22. Consolidated Statement of Comprehensive Income
The reclassification adjustments and tax effects associated with other comprehensive income for the years ended
March 31, 2023 and 2022 are as follows:
For the year ended March 31
2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Unrealized loss on investments in securities
Recognized amount for the year
Amount of reclassification adjustments
Before tax effect adjustment
Amount of tax effectSub-total(740)(9,793)(5,542)(11,234)(6,120)(84,131)(11,974)(15,913)(89,673)

3,560

4,833

26,661¥(8,414)¥(11,080)$(63,012)

¥

(655)

¥

50

$

(4,905)

Deferred gains or losses on hedges
Recognized amount for the year
Amount of reclassification adjustments

—

—

—

Before tax effect adjustment

(655)

50

(4,905)

Amount of tax effect

204

(3)

1,527

Sub-total

¥

(451)

¥

47

$

(46)

¥

(72)

$

(3,378)Foreign currency translation adjustments
Recognized amount for the year¥

Amount of reclassification adjustments—

352

Sub-total

(344)
2,636

¥

306

¥

(72)

$

2,292

¥

(186)

¥

1,481

$

(1,393)Retirement benefits liability adjustments
Recognized amount for the year
Amount of reclassification adjustments

632

481

Before tax effect adjustment¥

Amount of tax effect

295

¥

$

(791)

(42)

Sub-total

2,113

3,602
2,209
(314)

¥

253

¥

1,322

$

1,895

¥

(3)

¥

(2)

$

(22)

Share of other comprehensive income of companies
accounted for by equity method
Recognized amount for the year
Amount of reclassification adjustments

45

(4)

(30)

Sub-total

¥

(7)

¥

43

$

(52)

Total other comprehensive loss¥

(8,313)¥(9,740)$(62,255)

56

23. Consolidated Statement of Changes in Net Assets(1) Type and number of outstanding stock and treasury stock
For the year ended March 31, 2023:(Thousands of shares)
Type
Number of shares as of April 1, 2022

Outstanding stock

Treasury stock

Common stock

Common stock

291,070

26,694

Increase during the year—

13,294

Decrease during the year

16,225

17,659274,845

22,329Number of shares as of March 31, 2023

Notes:

1.	The decrease of 16,225 thousand issued shares is due to the cancellation of treasury stock in
May 2022 based on the resolution of the Board of Directors of the Company.
2.	The number of shares of treasury stock at the beginning of the current fiscal year includes 4,221
thousand shares of the Company’s shares held by the “ESOP” implemented by the Company,
and 657 thousand shares held by the Board Benefit Trust (BBT).
3.	The increase of 13,294 thousand shares in treasury stock is composed of an increase of 12,057
thousand shares from the acquisition of treasury stock based on a resolution of the Board of
Directors, an increase of 4 thousand shares from the purchase of shares of less than one unit,
and an increase of 1,232 thousand shares due to the change in equity.
4.	The decrease of 17,659 thousand shares in treasury stock is due to the decrease of 16,225
thousand shares resulting from the cancellation of treasury stock in May 2022 based on the
resolution of the Board of Directors of the Company, the decrease of 479 thousand shares due
to treasury stock disposal as restricted stock compensation, and the decrease of 954 thousand
shares due to the sale of shares to the employee stock holding partnership through the “ESOP.”
5.	The number of treasury stock at the end of the current fiscal year includes 3,267 thousand shares
held by the “ESOP” introduced by the Company and 377 thousand shares held by the BBT.

57

For the year ended March 31, 2022:(Thousands of shares)
Type
Number of shares as of April 1, 2021

Outstanding stock

Treasury stock

Common stock

Common stock

194,608

7,348

Increase during the year

391,539

121,994

Decrease during the year

295,077

102,648

291,070

26,694

Number of shares as of March 31, 2022

Notes:

1.	The increase in issued shares is due to the establishment of the Company by means of a joint
share transfer (hereinafter the “Share Transfer”) conducted by Maeda Corporation, Maeda Road
Construction Co., Ltd. and Maeda Seisakusho Co., Ltd. on October 1, 2021.
2.	The decrease of 295,077 thousand issued shares represents a decrease of 160 thousand shares
due to the cancellation of treasury stock in September 2021 based on the resolution of the Boardof Directors of Maeda Corporation, a decrease of 194,447 thousand shares in issued sharesof Maeda Corporation, which became a wholly owned subsidiary, and a decrease of 100,469
thousand shares due to the cancellation of treasury stock in November 2021 based on the
resolution of the Board of Directors of the Company.
3.	The number of shares of treasury stock at the beginning of the current fiscal year includes
496 thousand shares of the Company’s shares held by the “ESOP” implemented by Maeda
Corporation, and 657 thousand shares held by the Board Benefit Trust (BBT) introduced by
Maeda Corporation.
4.	The increase of 121,994 thousand shares in treasury stock is composed of 100,675 thousand
shares of the Company allocated to subsidiaries as a result of the Share Transfer, an increaseof 17,066 thousand shares from the acquisition of treasury stock based on a resolution of theBoard of Directors, an increase of 20 thousand shares from the acquisition of shares with transfer
restrictions without compensation, an increase of 10 thousand shares from the purchase ofshares of less than one unit, and an increase of 4,221 thousand shares from the acquisition ofCompany shares by the “ESOP” that the Company has introduced.
5.	The decrease of 102,648 thousand shares in treasury stock is due to the decrease of 160
thousand shares resulting from the cancellation of treasury stock in September 2021 basedon the resolution of the Board of Directors of Maeda Corporation, the decrease of 100,469
thousand shares resulting from the cancellation of treasury stock in November 2021 based on
the resolution of the Board of Directors of the Company, the decrease of 1,762 thousand shares
due to the disposal of treasury stock based on a resolution of the Board of Directors, the decreaseof 164 thousand shares due to treasury stock disposal as restricted stock compensation, andthe decrease of 92 thousand shares due to the sale of shares to the employee stock holding
partnership through the “ESOP” introduced by Maeda Corporation.
6.	The number of treasury stock at the end of the current fiscal year includes 4,221 thousand shares
held by the “ESOP” introduced by the Company and 657 thousand shares held by the BBT
introduced by Maeda Corporation.

58

(2) Dividends
1) Payment of dividends
For the year ended March 31, 2023:(Resolution)

Type ofsharesTotal amountof dividends

Source ofdividend

Dividend
per share

Record date

Effectivedate

Board ofDirectors’
meeting heldon May 13,
2022

Commonshares¥10,770
million($80,656
thousand)Additional
paid-in
capital¥40.0($0.30)March 31,2022

June 24,
2022

Notes:

1.	The total amount of dividends is the amount after deducting dividends on parent company shares
held by subsidiaries and affiliates.
2. 	The total amount of dividends resolved by the Board of Directors at a meeting held on May 13, 2022
includes dividends of ¥169 million ($1,266 thousand) for the Company’s shares held by the “ESOP”
introduced by the Company, and dividends of ¥26 million ($195 thousand) for Maeda Corporation’sshares held by the Board Benefit Trust (BBT) introduced by Maeda Corporation.

For the year ended March 31, 2022:
The Company was established on October 1, 2021 by means of a joint share transfer as a wholly owningparent company of Maeda Corporation, Maeda Road Construction, Co., Ltd., and Maeda Seisakusho
Co., Ltd., and for that reason the amount of dividends paid is the amount resolved at Maeda Corporation,
which was the former parent company that became a wholly owned subsidiary through the joint sharetransfer.
(Resolution)

Type of shares

Total amountof dividends

Dividend per
share

Record date

Effective date

Generalshareholders
meeting held on
June 23, 2021

Commonshares¥7,144 million¥38.0

March 31,2021

June 24,
2021

Notes:

1. 	The total amount of dividends is the amount after deducting dividends on parent company shares
held by subsidiaries and affiliates.
2. 	The total amount of dividends resolved at the general shareholders meeting held on June 23, 2021
includes dividends of ¥3 million for Maeda Corporation’s shares held by the “ESOP” introduced by
Maeda Corporation, and dividends of ¥25 million for Maeda Corporation’s shares held by the Board
Benefit Trust (BBT) introduced by Maeda Corporation.

592) Dividends with the record date that falls within the fiscal year under review but theeffective date in the following fiscal year
For the year ended March 31, 2023:(Resolution)

Type ofsharesTotal amountof dividends

Source ofdividend

Dividend
per share

Record date

Effectivedate

Board ofDirectors’
meeting heldon May 8,
2023

Commonshares¥14,089
million($105,512
thousand)Retainedearnings¥55.0($0.41)March 31,2023

June 21,2023

Notes:

1.	The total amount of dividends is the amount after deducting dividends on parent company
shares held by subsidiaries and affiliates.
2.	The total amount of dividends resolved by the Board of Directors at a meeting held on May 8,2023 includes dividends of ¥180 million ($1,348 thousand) for the Company’s shares held by
the “ESOP,” and dividends of ¥21 million ($157 thousand) for the Company’s shares held by
the Board Benefit Trust (BBT).

For the year ended March 31, 2022:(Resolution)

Type ofsharesTotal amountof dividends

Source ofdividend

Dividend
per share

Record date

Effectivedate

Board ofDirectors’
meeting heldon May 13,
2022

Commonshares¥10,770
million

Additional
paid-in
capital¥40.0

March 31,2022

June 24,
2022

Notes:

1.	The total amount of dividends is the amount after deducting dividends on parent company
shares held by subsidiaries and affiliates.
2.	The total amount of dividends resolved by the Board of Directors at a meeting held on May
13, 2022 includes dividends of ¥169 million for the Company’s shares held by the “ESOP”
introduced by the Company, and dividends of ¥26 million for Maeda Corporation’s shares heldby the Board Benefit Trust (BBT) introduced by Maeda Corporation.

60

24. Consolidated Statement of Cash Flows(1) Cash and cash equivalents at year end
The balances of “Cash and time deposits” in the consolidated balance sheets are reconciled to “Cash andcash equivalents at end of the year” in the consolidated statements of cash flows as follows:
March 31

Cash and time deposits

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Less – Time deposits over 3 months

88,800Note:¥

665,019(2,499)(1,842)(18,715)

(286)

(176)

(2,142)Less – Separate deposits in trusts (Note)
Cash and cash equivalents at end of the year

78,03686,015¥76,018$644,162

Included in “ESOP” and Board Benefit Trust (BBT)(2) Significant non-cash transactions
For the year ended March 31, 2023:
Not applicable
For the year ended March 31, 2022:
The Company was established on October 1, 2021 by means of a joint share transfer (hereinafter the “Share
Transfer”) as a wholly owning parent company of Maeda Corporation, Maeda Road Construction, Co., Ltd.,and Maeda Seisakusho Co., Ltd. As a result of the Share Transfer, additional paid-in capital increased by¥193,866 million and treasury stock increased by ¥(98,401) million, while common stock and non-controllinginterests decreased by ¥8,463 million and ¥87,002 million, respectively.

6125. Investment and Rental Properties
Certain consolidated subsidiaries own rental properties such as office buildings, facilities for lease and others inTokyo, Fukuoka, and the other major cities in Japan. Profit on rental properties was ¥956 million ($7,159 thousand),gain on sale of fixed assets was ¥415 million ($3,108 thousand), loss on sale of fixed assets was ¥1 million ($7thousand), and impairment loss on rental properties was ¥838 million ($6,276 thousand) for the year ended March
31, 2023.
Profit on rental properties was ¥903 million, and impairment loss on rental properties was ¥54 million for the year
ended March 31, 2022.
The book value, increase or decrease in book value during the year, and fair value of rental properties for the years
ended March 31, 2023 and 2022 are as follows:
March 31

Book value at the beginning of the year

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

$

Increase or decrease during the year

19,793(2,594)

19,672
121

148,229(19,426)

Book value at the end of the year¥

17,199¥19,793$

128,803

Fair value as of the year end¥

31,163¥33,422$

233,378

Notes:

1. Book value represents the acquisition cost less accumulated depreciation cost and accumulated
impairment loss.
2. Increase in book value results mainly from the renovation of rental office building in the amount of¥506 million ($3,789 thousand). Decrease in book value results mainly from the sale of rental officebuilding, rental residential building and land in the amount of ¥2,084 million ($15,607 thousand), andan impairment loss in the amount of ¥838 million ($6,276 thousand) for the year ended March 31,2023.
Increase in book value results mainly from the purchase of rental building in the amount of ¥596
million. Decrease in book value results mainly from change in scope of consolidation in the amountof ¥165 million for the year ended March 31, 2022.
3. Fair values of main properties are based on real property appraisal from outside real estate appraisers.

62

26. Operations for Public Facilities, etc.
Aichi Road Concession Co., Ltd., a consolidated subsidiary, has been selected as a management company, andit runs operations for public facilities as follows;

1. Summary of rights to operate public facilities
Toll Road Operation Management in Aichi Prefecture

Descriptions ofpublic facilities

4 Roads in Chita

Sanage Green

KinuuraKinuura Toyota

Nagoya Seto

Area consistingof MinamiRoad

TunnelRoad

Road

Chita Road, Chita
Hanto
Road, Chita
Odan Road,
and Access Road
to Chubu
Centrair Int’l
AirportRights are made on above-mentioned roads respectively

Terms ofpayments

Pay in lump sum as rights are obtained, and the remaining balances are paid
annually

Duration ofrights

October 1, 2016 to
March 31, 2046

October 1, 2016 to October 1, 2016 toJune 22, 2029 November 29, 2029

October 1, 2016 to October 1, 2016 to
March 5, 2034 November 26, 2044

April 1, 2023 toMarch 31, 2046

April 1, 2023 toApril 1, 2023 toJune 22, 2029 November 29, 2029

April 1, 2023 toApril 1, 2023 toMarch 5, 2034 November 26, 2044

Remaining
duration of rights

Pay in full as rightis obtained

Increased and decreased revenues belong to or are compensated as follows, provided that therevenue amounts of each fiscal-year end are increased or decreased compared to the scheduled
revenue amounts;• Within 6% of increase (or decrease)
Summary of
profitshare clause

Belong to Aichi Road Concession Co., Ltd.
• Above 6% of increase
6% or less of increase belongs to Aichi Road Concession Co., Ltd.
6% or above of increase belongs to Aichi Prefectural Road Public Corporation• Above 6% of decrease
6% or less of decrease belongs to Aichi Road Concession Co., Ltd.
6% or above of decrease belongs to Aichi Prefectural Road Public Corporation

2. Amortization method of rights to operate public facilities
Unit-of-production method based on traffic volume.

3. Information on replacement investments(1) Descriptions and scheduled dates(4 roads in Chita Area)
Descriptions of main replacement investments

Scheduled dates

Remote monitoring facilities

Year ending March 31, 2024

Replacement of main computer system

Year ending March 31, 2024

Replacement of lanes for Electronic Toll Collection System(“ETC”)

From year ending March 31, 2025
to year ending March 31, 2033

Replacement of lanes for Ordinary Toll Collection Machines

From year ending March 31, 2032
to year ending March 31, 2035

63

(Sanage Green Road)
Descriptions of main replacement investments

Scheduled dates

Replacement of road information boards

Year ending March 31, 2024

ITV cameras

Year ending March 31, 2026

(Kinuura Tunnel)
Descriptions of main replacement investments

Scheduled dates

Remote monitoring facilities

Year ending March 31, 2024

ITV cameras

Year ending March 31, 2024

(Kinuura Toyota Road)
Descriptions of main replacement investments
Replacement of road information displays

Scheduled dates
Year ending March 31, 2026

(Nagoya Seto Road)
Descriptions of main replacement investments
Replacement of lanes for Ordinary Toll Collection Machines

Scheduled dates
Year ending March 31, 2031
From year ending March 31, 2024 to year
ending March 31, 2026

Replacement of road information displays
Replacement of lanes for Electronic Toll Collection System(“ETC”)

Year ending March 31, 2030

Replacement of power receiving and distribution facilities

Year ending March 31, 2034

(2) Accounting treatments for assets and liabilities related to replacement
investments adopted by the management company
Regarding the extent of the replacement investments that constitutes capital expenditures (limited tothose for which ownership belongs to the management company, etc.), the total amount and timing ofexpenditures expected to be incurred over the duration of the right of operation are estimated, and thepresent value of the total amount expected to be incurred is recorded as a liability and the same amount isrecorded as an asset at the time of acquisition of the right to operate public facilities.

(3) Amortization method of assets in replacement investment
Unit-of-production method based on traffic volume.

64

Miotsukushi Industrial Water Concession Co., Ltd., a consolidated subsidiary, has been selected as a managementcompany, and it runs operations for public facilities as follows;

1. Summary of rights to operate public facilities
Descriptions of public facilities

Industrial Water Specified Operation Management, etc. in Osaka City

Terms of payments

Payment will be made in installments over the duration of rights (10 years) inaccordance with the method stipulated in the implementation contract.

Duration of rights

April 1, 2022 to March 31, 2032

Remaining duration of rights

April 1, 2023 to March 31, 2032

2. Amortization method of rights to operate public facilities
Straight-line method over 10 years, the duration of rights

3. Information on replacement investments(1) Descriptions and scheduled dates(8 roads of pipelines)
Replacement investments of main pipelines

Scheduled dates

From 1 chome, Mitejima, Nishiyodogawa-ku
to 3 chome, Kashiwazato, Nishiyodogawa-ku

From year ending March 31, 2028 to year ending March
31, 2030

2 chome, Chibune, Nishiyodogawa-ku

From year ending March 31, 2028 to year ending March
31, 2029

2 chome, Ono, Nishiyodogawa-ku

From year ending March 31, 2026 to year ending March
31, 2027

From 3 chome, Baika, Konohana-ku
to 1 chome, Kasugadekita, Konohana-ku

From year ending March 31, 2025 to year ending March
31, 2027

8 chome, Ebie, Fukushima-ku

From year ending March 31, 2024 to year ending March
31, 2026

From 6 chome, Ebie, Fukushima-ku
to 8 chome, Ebie, Fukushima-ku

From year ending March 31, 2025 to year ending March
31, 2026

From 1 chome, Nakatsu, Kitaku
to 3 chome, Nakatsu, Kitaku

From year ending March 31, 2025 to year ending March
31, 2028

1 chome, Kunijima, Higashiyodogawa-ku

From year ending March 31, 2027 to year ending March
31, 2028(2) Accounting treatments for assets and liabilities related to replacement
investments adopted by the management company
Regarding the extent of the replacement investments that constitutes capital expenditures (limited tothose for which ownership belongs to the management company, etc.), the total amount and timing ofexpenditures expected to be incurred over the duration of the right of operation are estimated, and thepresent value of the total amount expected to be incurred is recorded as a liability and the same amount isrecorded as an asset at the time of acquisition of the right to operate public facilities.

(3) Amortization method of assets in replacement investment
Straight-line method over 10 years, the duration of rights

6527. Revenue Recognition(1) Information on disaggregation of revenue from contracts with customers
Information on disaggregation of revenue from contracts with customers has been disclosed in “Note 28.
Segment Information.”(2) Information in understanding revenue from contracts with customers
Information in understanding revenue has been disclosed in “Note 2. Summary of Significant Accounting
Policies, (1) Recognition of revenues and expenses.”(3) Information on satisfaction of performance obligations within contracts withcustomers and cash flows arising from such contracts, and the amount and timingof revenue arising from customers existing at the end of the current fiscal year
expected to be recognized in and after the following fiscal year
1) Balances of contract assets and contract liabilities(Millions of yen)
For the year ended March 31, 2023
Beginning balanceEnding balance

Receivables from contracts with customers:
Trade receivables – Notes¥10,650¥17,073

Trade receivables – Accounts

86,777

95,567¥97,427¥112,640

Contract assets¥213,375¥183,448

Contract liabilities¥34,863¥37,807

Total(Millions of yen)
For the year ended March 31, 2022
Beginning balanceEnding balance

Receivables from contracts with customers:¥13,483

Trade receivables – Notes¥10,650

Trade receivables – Accounts

104,335

86,777

Total¥117,818¥97,427

Contract assets¥145,613¥213,375

Contract liabilities¥36,962¥34,863(Thousands of U.S. dollars)

For the year ended March 31, 2023
Beginning balanceEnding balance

Receivables from contracts with customers:
Trade receivables – Notes$79,757$127,859

Trade receivables – Accounts

649,869

715,697

Total$729,626$843,556

Contract assets$1,597,956$1,373,834

Contract liabilities$261,087$283,13566

Contract assets relate to the right to consideration for construction contracts for which contracts havebeen completed but an invoice has not yet been issued. Once the Company has an unconditional right toconsideration, it reclassifies contract assets to receivables from contracts with customers.
Contract liabilities primarily relate to advances received from customers based on construction contracts,
and they are reversed as revenue is recognized. Revenue recognized in the current fiscal year and in theprevious fiscal year that was included in the contract liability balance at the beginning of the period was¥32,632 million ($244,380 thousand) and ¥34,069 million, respectively.
Since the payment terms of construction contracts by the customer vary from contract to contract, there isno clear relationship between the satisfaction of performance obligations and the timing of payment.
The amount of revenue recognized in the current fiscal year and the previous fiscal year from performanceobligations that were satisfied (or partially satisfied) in prior periods was not material, and therefore, note
has been omitted.

2) Transaction price allocated to the remaining performance obligations
The total transaction prices allocated to the remaining performance obligations at the end of the current
fiscal year and at the end of the previous fiscal year are ¥803,057 million ($6,014,057 thousand) and¥809,569 million, respectively.
The Company expects to recognize revenue for these remaining performance obligations generally within
10 years as the relevant properties are completed.

6728. Segment Information(1) Segment information
1) Summary of reportable segments:
The reportable segments of the Group are components for which separate financial information is available
and whose operating results are evaluated regularly by the Board of Directors to make decisions about how
to allocate resources and in assessing performance.
The operations of the Group consist of business and service segments operated by the consolidated
subsidiaries, etc. and are composed of five reportable segments as follows:
Building: Contract work for building and other related services

Civil engineering: Contract work for civil engineering and other related services

Road civil engineering: Contract work for road civil engineering, manufacture and sale ofvarious asphalt mix materials, and other related services

Machinery: Production and sales of construction machinery and other related
services

Infrastructure management : Renewable energy and concession operations, and other related
services2) Net sales, profit (or loss), and other items by reportable segment
The accounting policies used for the segment reporting are substantially the same as those described in“Summary of Significant Accounting Policies.” Profits of reportable segments are based on operating profit.
Inter-segment transactions are transactions among the consolidated subsidiaries and are based on market
prices, etc.

683) Information on sales, profit or loss, other items by reportable segment
For the year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Reportable segment
Building

Infrastructure
Civil
Road civil
Machinery
management
engineering engineering

Total(Millions of yen)Amountrecorded in
Adjustment consolidated
financial(Note 2)statements(Note 3)

Other
(Note 1)

Total

¥ 27,937¥ 279,629¥—¥ 279,629

Net sales
Goods transferred
at a point in time
Goods transferredover time
Revenue fromcontracts withcustomers
Revenue fromother sources
Net sales
to outside
customers
Inter-segment
sales or transfers
Total
Segment profit¥ 9,144¥ 2,206 ¥ 192,326¥ 32,361¥ 15,655 ¥ 251,692

204,466

149,827

51,202

57—

405,552

10,661

416,213—416,213

213,610

152,033

243,528

32,41815,655657,244

38,598695,842—

695,842

1,855

—

169

4,923

6,852

13,799—13,799—13,799215,465

152,033

243,697

37,341

22,507

671,043

38,598709,641—

709,641

1,808

35

4,965

1,699

—

8,507

11,52020,027(20,027)—¥ 217,273 ¥ 152,068 ¥ 248,662¥ 39,040¥ 22,507 ¥ 679,550¥ 50,118¥ 729,668 ¥ (20,027)¥ 709,641¥ 8,733¥ 16,815¥ 4,039¥ 1,331¥ 7,973¥ 38,891¥ 1,288¥ 40,179¥ 316¥ 40,495¥ 3,031¥ 2,161¥ 10,542¥ 1,683¥ 6,606¥ 24,023¥ 713¥ 24,736¥ (138)¥ 24,598¥—¥—¥ 6,732¥—¥—¥ 6,732¥—¥ 6,732¥—¥ 6,732

Other items:
Depreciation
Amortization of
goodwill

For the year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Reportable segment
Infrastructure
Civil
Road civil
Building
Machinery
management
engineering engineering

Total(Millions of yen)Amountrecorded in
Adjustment consolidated
financial(Note 2)statements(Note 3)

Other
(Note 1)

Total

¥ 26,057¥ 269,671¥—¥ 269,671

Net sales
Goods transferred
at a point in time
Goods transferredover time
Revenue fromcontracts withcustomers
Revenue fromother sources
Net sales
to outside
customers
Inter-segment
sales or transfers
Total
Segment profit¥ 8,942¥ 2,718 ¥ 183,676¥ 29,668¥ 18,610 ¥ 243,614

205,443

139,92148,92752—

394,343

11,350405,693—405,693

214,385

142,639

232,60329,72018,610637,957

37,407675,364—

675,364

1,718

—

165

5,603

63

7,549

—

7,549

—

7,549

216,103

142,639

232,768

35,323

18,673645,506

37,407

682,913—682,913

2,461

(125)

2,832

1,823

294

7,285

14,76522,050(22,050)—¥ 218,564 ¥ 142,514 ¥ 235,600¥ 37,146¥ 18,967 ¥ 652,791¥ 52,172¥ 704,963 ¥ (22,050)¥ 682,913¥ 8,497¥ 14,661¥ 2,669¥ 1,694¥ 6,095¥ 33,616¥ 1,891¥ 35,507¥ 1,983¥ 37,490¥ 3,196¥ 2,086¥ 10,745¥ 1,792¥ 6,506¥ 24,325¥ 516¥ 24,841¥ (131)¥ 24,710¥—¥—¥ 6,748¥—¥—¥ 6,748¥—¥ 6,748¥—¥ 6,748

Other items:
Depreciation
Amortization of
goodwill

69

For the year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Reportable segment
Civil
Road civil
Infrastructure
Building
Machineryengineering engineering
management

Total

Other
(Note 1)(Thousands of U.S. dollars)
Amountrecorded in
Adjustment consolidated
Total(Note 2)
financialstatements(Note 3)

Net sales
Goodstransferred at apoint in time
Goods
transferred overtime
Revenue fromcontracts withcustomers
Revenue fromother sources
Net sales
to outside
customers
Inter-segment
sales or transfers
Total
Segment profit$ 68,479$ 16,521 $ 1,440,320$ 242,350$ 117,240 $ 1,884,910$—$ 2,094,129

1,531,236

1,122,047

383,450427—

3,037,160

79,8403,117,000—

3,117,000

1,599,715

1,138,568

1,823,770

242,777

117,240

4,922,070

289,059

5,211,129—

5,211,129

13,892—

1,266

36,86851,314

103,340—

103,340—

103,340

1,613,607

1,138,568

1,825,036

279,645

168,554

5,025,410

289,059

5,314,469—

5,314,469

13,540262

37,183

12,724—63,70986,272

149,981(149,981)—$ 1,627,147 $ 1,138,830 $ 1,862,219$ 292,369$ 168,554 $ 5,089,119$ 209,219 $ 2,094,129$ 375,331 $ 5,464,450$ (149,981) $ 5,314,469$ 65,401$ 125,927$ 30,248$ 9,968$ 59,709$ 291,253$ 9,646$ 300,899$ 2,366$ 303,265$ 22,699$ 16,184$ 78,948$ 12,604$ 49,472$ 179,907$ 5,340$ 185,247$ (1,033)$ 184,214$—$—$ 50,416$—$—$ 50,416$—$ 50,416$—$ 50,416

Other items:
Depreciation
Amortization of
goodwill

Notes:

1.	“Other items” represents business segments which are not included in reportable segments, namely
businesses operated by certain subsidiaries.
2.	Adjustment of segment profit includes inter-segment transactions of ¥317 million ($2,374 thousand)and ¥1,983 million for the years ended March 31, 2023 and 2022, respectively.
3.	Adjustments are made to reconcile segment profit to operating profit reported on the consolidated
statement of income.
4.	As assets are not allocated to business segments, the amount of assets for each segment is notshown.

70

(2) Related information
1) Products and services segment information
Description is omitted since it is described previously in (1) Segment information.

2) Geographic segment information(a) Sales
The disclosures of geographic segment information are omitted since sales to outside customers inJapan for the years ended March 31, 2023 and 2022 exceeds 90% of the sales in the Consolidated
Statement of Income.

(b) Fixed assets
The disclosures of geographic segment information are omitted since fixed assets in Japan as ofMarch 31, 2023 and 2022 exceeds 90% of fixed assets in the Consolidated Balance Sheet.

3) Major customer segment information
The disclosure of major customer segment information is omitted since there are no sales to outside
customers that account for 10% or more of the net sales in the Consolidated Statement of Income for theyears ended March 31, 2023 and 2022.

(3) Impairment loss on fixed assets by segment
For the year ended March 31
2023

Building

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)

¥

¥

845

69

$

6,328

Civil engineering

123

—

921

Road civil engineering

494

425

3,700

Machinery010Infrastructure management

—

—

—

Other

—

—

—

Adjustment

—

—

—

Amount recorded in consolidated statement ofincome

¥

71

1,462

¥

495

$

10,949(4) Amortization and residual value of goodwill information
For the year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Building

Civil
engineering

Road civilengineering

Machinery

Infrastructure
management

Amortization

¥ —

¥ —

¥ 6,732

¥ —

¥ —

¥ —

¥ —

¥ 6,732

Balance at theend of the year

¥ —

¥ —

¥ 13,159

¥ —

¥ —

¥ —

¥ —

¥ 13,159

Other

Adjustment

Total

For the year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Building

Civil
engineering

Road civilengineering

Machinery

Infrastructure
management

Amortization

¥ —

¥ —

¥ 6,748

¥ —

¥ —

¥ —

¥ —

¥ 6,748

Balance at theend of the year

¥ —

¥ —

¥ 19,892

¥ —

¥ —

¥ —

¥ —

¥ 19,892

Other

Adjustment

Total

For the year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Thousands of U.S. dollars)
Building

Civil
engineering

Road civilengineering

Machinery

Infrastructure
management

Amortization

$ —

$ —

$ 50,416

$ —

$ —

$ —

$ —

$ 50,416

Balance at theend of the year

$ —

$ —

$ 98,547

$ —

$ —

$ —

$ —

$ 98,547

Other

Adjustment

Total(5) Gain on negative goodwill information
The disclosure of gain on negative goodwill is omitted since the amount is immaterial for the years ended
March 31, 2023 and 2022.

72

29. Related Party Information(1) Disclosure of related party transactions
For the year ended March 31, 2023:
Type

Affiliate

Name

HIKARIGAOKACORPORATION

Location

Commonstock

Business

Nerima-ku
Tokyo¥1,055
million($7,901
thousand)

Sales ofconstruction
materials andproducts
Real estate

Ownership Relation
ratio ofto theType ofvotingrelated transaction
rightsparty
Direct23.8%

Purchaseof workmaterials

Purchaseof workmaterials(Note)

Amount of Accounttransaction
nameBalanceat yearend¥57,403
million($429,888
thousand)¥10,076
million($75,459
thousand)TradepayablesNote: Prices and other transaction terms are determined through price negotiations based on market prices.
For the year ended March 31, 2022:
Not applicable(2) Disclosure of major affiliates
Not applicable7330. Per Share Information
For the year ended March 31¥

Net assets per share

2023

2022

2023

(Yen)

(Yen)

(U.S. dollars)

1,312.19$

1,396.72¥

138.39Earnings per share

10.46
1.04

94.73

Notes:

1. 	Diluted earnings per share is not shown because there are no potential shares.
2.	Earnings per share for the previous fiscal year is calculated by multiplying the average number of sharesof Maeda Corporation during the period from April 1, 2021 to September 30, 2021, which is before theestablishment of the Company by means of a joint share transfer on October 1, 2021, by the share transferrate.
3.	Shares of the Company remaining in the “ESOP” and the Board Benefit Trust (BBT), which are recorded astreasury stock in shareholders’ equity, are included in treasury stock as a deduction in the calculation of
average number of shares outstanding during the period for the purpose of calculating earnings per share.
		The numbers of such treasury stock at the end of the current fiscal year and at the end of the previous
fiscal year deducted for the calculation of net assets per share are 3,267 thousand shares and 4,221
thousand shares for the “ESOP” and 377 thousand shares and 657 thousand shares for the Board Benefit
Trust (BBT) as of March 31, 2023 and 2022, respectively.
		The average numbers of such treasury stock during the current fiscal year and during the previous fiscal
year deducted for the calculation of earnings per share are 3,714 thousand shares and 343 thousand
shares for the “ESOP” and 485 thousand shares and 657 thousand shares for the Board Benefit Trust(BBT) for the years ended March 31, 2023 and 2022, respectively.
4.	The basis for the calculation of earnings per share is as follows.

For the year ended March 31

Profit attributable to owners of parent

2023

2022

2023

(Millions of yen)

(Millions of yen)(Thousands of
U.S. dollars)¥

35,871¥$

268,636¥

35,871$

268,636

Amount not attributable to common shareholders—

Net profit attributable to common shareholders

26,689——¥26,689(Thousands of shares)
For the year ended March 31
2023
2022
259,197281,728

Average number of shares

31. Significant Subsequent Event
Acquisition of treasury stock
At the Board of Directors’ meeting held on May 11, 2023, the Company resolved to acquire shares of its treasury
stock pursuant to the provisions of Article 459, Paragraph 1, Item 1 of the Companies Act and Article 43 of its
Articles of Incorporation.
(1) Type of shares to be acquired:(2) Maximum number of shares to be acquired:(3) Total acquisition price:(4) Acquisition period:(5) Acquisition method:

Common stock
Up to 12,500,000 shares
Up to ¥10.0 billion ($74,890 thousand)From June 1, 2023 to March 31, 2024
Market purchase on the Tokyo Stock Exchange

74Independent Auditor’s Report

The Board of Directors
INFRONEER Holdings Inc.
OpinionWe have audited the accompanying consolidated financial statements of INFRONEER Holdings
Inc. and its consolidated subsidiaries (the Group), which comprise the consolidated balance
sheet as at March 31, 2023, and the consolidated statements of income, comprehensive income,changes in net assets, and cash flows for the year then ended, and notes to the consolidated
financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at March 31, 2023, and its
consolidated financial performance and its consolidated cash flows for the year then ended inaccordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent of
the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significancein our audit of the consolidated financial statements of the current period. These matters wereaddressed in the context of the audit of the consolidated financial statements as a whole, and informing the auditor’s opinion thereon, and we do not provide a separate opinion on thesematters.
Estimates of total construction revenue and total construction costs using the method of recognizing
revenue over time in the building construction and civil engineering businesses

Description of Key Audit Matter

Auditor’s Response

As described in “1) Revenue recognition withregard to construction work “of “(1) Recognition ofrevenues and expenses” in “2. Summary of
Significant Accounting Policies” under (Importantmatters that form the basis for preparation of
consolidated financial statements) in the Notes toConsolidated Financial Statements, for constructionin which the recognition of revenue as performanceobligations are satisfied over time can be reasonably
estimated, INFRONEER Holdings Inc. (the“Company”) and its consolidated subsidiaries

We mainly performed the following audit
procedures in evaluating the reasonableness of
estimates of total construction costs and total
construction revenue accounted for using the methodof recognizing revenue over time.
Estimates of total construction costs(1) Evaluation of internal controls
We evaluated the design and operation of thefollowing internal controls relating to estimates of
total construction costs.

(collectively, the “Group”) estimate progress using
the cost-based input method and apply the method ofrecognizing revenue as performance obligations totransfer a good or service to the customer are satisfied
over time. Of net sales of ¥709,641 million for the
fiscal year ended March 31, 2023, net sales of¥354,293 million, or 50%, were recorded using themethod of recognizing revenue over time in thebuilding construction and civil engineeringbusinesses. Revenue in the building construction andcivil engineering businesses consists of revenue
generated by MAEDA CORPORATION.
Revenue recorded using the method of recognizing
revenue over time is measured based on the progress
towards the satisfaction of performance obligations,and such progress is determined based on the ratio of
actual incurred costs up to the end of the fiscal year
to total construction costs.
As described in “1). Recognition of completed
construction contracts for which revenue isrecognized over a certain period of time ” under “19Significant accounting estimates” in the Notes toConsolidated Financial Statements, total construction
costs are continuously reviewed because construction
projects are highly customized in nature in terms ofspecifications and work details as well as thepossibility of changes in construction periods,
unexpected expenses, fluctuations in construction
material prices and labor costs, and design changes
during the construction process. In addition, there arecases in which design changes based on an agreementwith customers are made during the construction
process, wherein the amount of the consideration is
not fixed in a timely manner and, therefore, a portionof total construction revenue is recognized based on
estimates (the portion of total construction revenue
recognized based on estimates is hereinafter referred
to as the “ contract amounts not yet contracted ”). The
contract amounts not yet contracted are reviewed ona continuous basis since there is a possibility theestimates may change based on progress ofnegotiations or entering into contracts with ordering
parties. These estimates require certain assumptions
and involve uncertainty and the exercise of judgment
by on-site construction managers.
Based on the above, we have determined that
estimates of total construction costs and total
construction revenue recognized using the method

・We evaluated systems confirming that operating
budgets, on which estimates of total construction
costs are based, and construction management
tables, which are used to update estimates of total
construction costs based on recent circumstances,have been prepared in a timely and appropriatemanner by on-site construction managers.
・ We evaluated systems confirming that total
construction costs are estimated by aggregatingeach type of construction on the basis of specificconsiderations, including quotations fromsubcontractors.
・We evaluated systems confirming that monitoringis performed on a timely basis by project managers
in the Construction Management Division, withrespect to changes in profit or loss throughout
projects, comparisons of plans with actual
progress, the current status of progress, and otherconsiderations.
(2) Evaluation of the reasonableness of estimates
We identified construction work for which
uncertainty associated with estimates of total
construction costs was relatively high in light of thesignificance of construction contract amounts andprofit or loss on construction, changes in profit or loss
on construction, and the status of construction,
including changes in construction periods, andmainly performed the following audit procedures.
・With regard to estimates of total construction costs
determined based on operating budgets, weconsidered whether the costs were calculated byaggregating amounts by each type of construction,
whether the costs were consistent with the total
construction costs calculated at the time of bidding
and so forth, and whether operating budgets were
free from reconciliation items involving abnormal
amounts included in response to future uncertainty.
In addition, we reconciled the costs with unit prices
agreed to in contracts and quotations fromsubcontractors, as necessary.
・We compared operating budgets and past changes
with recent estimates for total construction costs.
For changes in total construction costs that wereabove a certain threshold, we made inquiries of
responsible personnel and project managers in theConstruction Management Division about thereasons for the changes. We compared the resultsof responses received from the inquiries withcorroborative minutes of negotiations with

of recognizing revenue over time in the building
construction and civil engineering businesses are ofparticular significance for the fiscal year ended
March 31, 2023 and, accordingly, that this is a key
audit matter in light of considerations such as theimportance of construction work based on therelative amount of net sales using the method ofrecognizing revenue over time in the building
construction and civil engineering businesses as apercentage of net sales for the fiscal year ended
March 31, 2023, and the complexity of theconstruction.

ordering
partiesandquotations
fromsubcontractors, as necessary.
・We inquired not only of the management of thecompany but also of the management, department
heads and branch managers of MAEDACORPORATION about the progress of eachconstruction work, and we examined whether there
were any significant events that would require a
review of the total construction costs.
・We inspected monthly construction reports, which
are documents detailing the overall progress ofconstruction management and issues identified
related to construction and other matters andcompared the reports with actual overall progress,
on-site photographs, and progress towards thesatisfaction of performance obligations.
・ We inspected construction sites for certain
construction projects and considered whether the
status of construction was consistent with theestimates of total construction costs and theprogress of construction.
・We evaluated the processes for estimating total
construction costs by comparing prior estimates of
the total construction costs with actual amounts orrevised estimates.
In addition, we used a tool that detects anomalies
in progress (the tool detects unusual progress inconstruction work that apply the method ofrecognizing revenue as performance obligations are
satisfied over time based on forecasts of progress
towards construction completion using machinelearning, as well as forecasts loss-generating
contracts and detects unusual timing of cost
incurrence). For construction work that has been
identified as a result of progress towards satisfactionof performance obligations exceeding a certain levelfrom the progress at the closing date as forecasted by
the tool, we considered whether such progress
towards satisfaction of performance obligations wasconsistent with monthly reports on construction andconstruction management tables.
Estimates of total construction revenue when
the contract amounts not yet contracted areincluded in total construction revenue(1) Evaluation of internal controls
We evaluated the design and operation of internal
controls to confirm that reliable estimates of thecontract amounts not yet contracted are made in atimely and appropriate manner based on negotiations
with ordering parties.
(2) Evaluation of the reasonableness of estimates
Based on our understanding of reported thecontract amounts not yet contracted for eachconstruction project, we selected samples forconsideration based on their quantitative or
qualitative significance and performed the following
procedures.
・ To evaluate whether estimates were performed
taking into consideration agreements or the statusof negotiations with ordering parties, or the
possibility of entering into a construction contract,
we made inquiries of responsible personnel andproject managers in the Construction Management
Division and inspected quotations submitted toordering parties, instructions from ordering parties
for changes, and minutes of negotiations withordering parties.
・To evaluate accrued costs corresponding to thecontract amounts not yet contracted, we inspectedinvoices and other documents obtained fromsubcontractors as well as performed a comparative
analysis between actual amounts and the contract
amounts not yet contracted.
・We evaluated the processes for estimating total
construction revenue by comparing priorestimates with actual amounts or revised
estimates.

Other Information
Other information comprises the information included in disclosure documents that contain
audited consolidated financial statements, but does not include the consolidated financial
statements and our auditor’s report thereon.
We have concluded that other information does not exist. Accordingly, we have not performed
any work related to other information.
Responsibilities of Management, the Audit Committee for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern and disclosing, as required by accounting
principles generally accepted in Japan, matters related to going concern.

The Audit Committee is responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
・ Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion.
・ Consider internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances for our risk assessments, while the purpose of the audit of
the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.
・ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
・ Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease tocontinue as a going concern.
・ Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentationin accordance with accounting principles generally accepted in Japan.
・ Obtain sufficient appropriate audit evidence regarding the financial information of theentities or business activities within the Group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance ofthe group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with the ethicalrequirements regarding independence that are relevant to our audit of the consolidated financial
statements in Japan, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters thatwere of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because theadverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect tothe year ended March 31, 2023 are presented solely for convenience. Our audit also included thetranslation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, suchtranslation has been made on the basis described in Note 3 to the consolidated financial
statements.
Ernst & Young ShinNihon LLC
Tokyo, Japan
November 7, 2023

/S/Makoto Suzuki
Designated Engagement Partner
Certified Public Accountant/S/Koji Ojima
Designated Engagement Partner
Certified Public Accountant/S/Takehiro Ametani
Designated Engagement Partner
Certified Public Accountant