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

Consolidated Financial Results
for the Year Ended March 31, 2023
(Based on Japanese GAAP)May 11, 2023
Company name:

INFRONEER Holdings Inc.

Stock exchange listing: Tokyo
Stock code:
5076
Representative:

URL

https://www.infroneer.com

Representative Executive Officer andPresident

Kazunari Kibe

Inquiries:
General Manager of Financial Strategy
Scheduled date of ordinary general meeting of shareholders:

Kazutaka Deguchi
June 20, 2023

TEL

03-6380-8253

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

June 20, 2023
June 21, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:Yes
Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended March 31, 2023
709,641
3.9
40,495
8.0
41,7689.8
35,870
34.4
Fiscal year ended March 31, 2022
682,912–37,489–38,036–
26,689–(Note) Comprehensive income:Fiscal year ended March 31, 2023: ¥28,508 million [42.3%]
Fiscal year ended March 31, 2022: ¥20,039 million [–%]

Earnings per share

Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Profit attributableto owners ofparent/equity
Yen
%
–
10.3
–
8.7

Diluted earnings
per shareYen
138.3994.73

Ordinary
Operating profit/net
profit/total assets
sales
%
4.5
4.1

%
5.7
5.5

(Reference) Share of profit (loss) of entities accounted for using equity method: Fiscal year ended March 31, 2023: ¥1,032 million
Fiscal year ended March 31, 2022: ¥652 million(Note) The Company was established by joint share transfer on October 1, 2021; therefore, there are no year-on-year changes for the fiscal year
ended March 31, 2022.
(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Millions of yen
926,563926,432

Millions of yen
362,315355,865

Equity ratio

Net assets per share
%
38.1
37.4

Yen
1,396.72
1,312.19(Reference) Equity: As of March 31, 2023: ¥352,692 million
As of March 31, 2022: ¥346,911 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Cash flows frominvesting activities

Millions of yen
70,954(16,333)

Millions of yen(5,293)(22,547)

1

Cash flows fromfinancing activities
Millions of yen(56,384)
15,288Cash and cash
equivalents at end of
periodMillions of yen
86,01576,018

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

Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
(Forecast)

Total

Yen

Yen

Yen

Yen

–
–

0.00
0.00

–
–

40.00
55.00

40.00
55.00

–

25.00

–

30.00

55.00

Total cash
dividends(Total)Ratio of
Dividend
dividends topayout ratio
net assets(Consolidated)(Consolidated)

Yen Millions of yen

10,77014,088

%

%

42.2
39.7

2.9
4.1

45.8

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen[Japanese GAAP]
Full year
740,000
4.3
38,300 (5.4)
39,200 (6.1)
25,200 (29.7)
100.87% Millions of yen% Millions of yen

Profit attributable toEarnings per shareowners of parent% Millions of yen
%
Yen

–

–

–

Net sales
Millions of yen[IFRS]
Full year

745,000

Business profit

44,900Operating profit

44,90030,000–120.09(Notes) 1. Since the Company has decided to voluntarily adopt International Financial Reporting Standards (hereinafter “IFRS”) effective theconsolidated financial statements for the fiscal year ending March 31, 2024, figures calculated based on IFRS have been disclosed inaddition to the consolidated financial results forecast based on Japanese accounting standards. Year-on-year changes from the fiscal
year ended March 31, 2023, for which Japanese standards have been applied, are not stated.
2. Business profit is a profit indicator that measures the performance of the Company’s recurring businesses, calculated by deducting costof sales and selling, general and administrative expenses from net sales, and adding share of loss (profit) of entities accounted for using
equity method.

2

* Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):
Notes on changes in significant subsidiaries during the year ended March 31, 2023

No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
1) Changes in accounting policies due to revisions to accounting standards and other regulations:
2) Changes in accounting policies due to other reasons:YesNo3) Changes in accounting estimates:
No4) Restatement of prior period financial statements:
No(Note) Please refer to “(Changes to accounting policies)” of “4. (5) Notes to Consolidated Financial Statements” on page 22 for details.
(3) Number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

274,845,024 shares As of March 31, 2022

291,070,502 shares

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

22,329,791 shares As of March 31, 2022

26,694,723 shares

259,197,099 shares Fiscal year ended March 31, 2022

281,728,696 shares

3) Average number of shares during the period
Fiscal year ended March 31, 2023

(Notes) 1. The Company’s shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership Plan are included in thenumber of treasury shares at the end of the period (3,267,300 shares at the end of the year ended March 31, 2023; 4,221,300
shares at the end of the fiscal year ended March 31, 2022). The Company’s shares held by the Stock Benefit Trust Dispositiontype Employee Stock Ownership Plan are included in the number of treasury shares deducted in the calculation of the average
number of shares during the period (3,714,469 shares at the end of the fiscal year ended March 31, 2023; 343,069 shares at theend of the fiscal year ended March 31, 2022).
2. The Company’s shares held by Board Benefit Trust (BBT) are included in the number of treasury shares at the end of the period(377,500 shares at the end of the year ended March 31, 2023; 657,500 shares at the end of the fiscal year ended March 31,2022). The Company’s shares held by Board Benefit Trust (BBT) are included in the number of treasury shares deducted in thecalculation of the average number of shares during the period (485,192 shares at the end of the fiscal year ended March 31,2023; 657,500 shares at the end of the fiscal year ended March 31, 2022).
* These financial results are outside the scope of audit by certified public accountants or audit corporations.
* Explanation of the proper use of performance forecast and other notes The above forecasts are based on assumptions in light of information available as of the date of announcement of this material and factors of
uncertainty that may possibly impact the future results of operation. These statements do not indicate that the Company pledges to realize
these forecasts. Actual results may differ significantly from those presented herein as a result of numerous factors.

3

○ Table of Contents

1. Overview of Financial Results, etc.............................................................................................................................. 5(1) Overview of Operating Results for the Fiscal Year under Review .......................................................................... 5(2) Overview of Financial Position for the Fiscal Year under Review .......................................................................... 6(3) Overview of Cash Flows for the Fiscal Year under Review .................................................................................... 6(4) Future Outlook ......................................................................................................................................................... 7(5) Basic Policy on Distribution of Profit and Dividends for Current and Next Fiscal Years ....................................... 7
2. Status of Corporate Group ........................................................................................................................................... 8
3. Basic Approach to the Selection of Accounting Standards ......................................................................................... 9
4. Consolidated Financial Statements and Primary Notes ............................................................................................. 10(1) Consolidated Balance Sheets ................................................................................................................................ 10(2) Consolidated Statements of Income and Comprehensive Income ........................................................................ 12
Consolidated Statements of Income ...................................................................................................................... 12
Consolidated Statements of Comprehensive Income ............................................................................................ 13(3) Consolidated Statements of Changes in Shareholders’ Equity.............................................................................. 14(4) Consolidated Statements of Cash Flows ............................................................................................................... 16(5) Notes to Consolidated Financial Statements ......................................................................................................... 18(Notes on going concern assumption) ............................................................................................................. 18(Important matters that form the basis for preparation of consolidated financial statements) ........................ 18(Changes to accounting policies) .................................................................................................................... 22(Additional information) ................................................................................................................................. 23(Notes to consolidated balance sheets) ............................................................................................................ 24(Notes to consolidated statements of income) ................................................................................................. 26(Notes to consolidated statements of changes in shareholders’ equity) ........................................................... 29(Notes to consolidated statements of cash flows)............................................................................................ 31(Segment information, etc.) ............................................................................................................................. 32(Per share information) .................................................................................................................................... 34(Significant subsequent event) ........................................................................................................................ 34
5. Others ........................................................................................................................................................................ 35(1) (Building Construction Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog .. 35(2) (Civil Engineering Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog ......... 35(3) (Road Civil Engineering Segment) Classified by Type: Orders Received, Net Sales and Backlog ..................... 36(4) Summary of Forecast of Consolidated Financial Results ..................................................................................... 37(Reference) Maeda Corporation: Supplementary Information ................................................................................... 38

4

1. Overview of Financial Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2023, the Japanese economy generally and moderately recovered in corporate
earnings, employment, and personal consumption, as normalization of economic and social activities progressed undercoexistence with the novel coronavirus infection (COVID-19), despite persisting concerns about rising prices due to a steep
rise in oil prices and the depreciation of the yen putting downward pressure on the Japanese economy in the context of the
prolonged situation in Ukraine and the continued monetary tightening across the globe, among other situations.
In the construction industry, public investment and housing construction remained firm, and capital investment picked
up on the back of improved corporate earnings and other factors.
Under these circumstances, with the objective of the entire group achieving sustained growth under the Company, theCompany will strive to be a “company trusted by all stakeholders” by determining to aim for the mid- to long-term stateof being an “integrated infrastructure service company” with one-stop style management from upstream to downstream of
infrastructure operations, establishing a “highly profitable and stable revenue base” without being influenced by external
factors, operating expeditiously and appropriately, such as by building an effective governance structure and promoting
digital transformation, and strengthening the ability to deal with social changes.
For the fiscal year ended March 31, 2023, net sales increased by ¥26.7 billion (3.9%) year on year to ¥709.6 billion.
Operating profit increased by ¥3.0 billion (8.0%) year on year to ¥40.4 billion, ordinary profit increased by ¥3.7 billion(9.8%) year on year to ¥41.7 billion, and profit attributable to owners of parent increased by ¥9.1 billion (34.4%) year on
year to ¥35.8 billion.
Performance results by business segment are as follows.
[Building Construction]
In the building construction business, which engages in construction work and related activities primarily for
multi-dwelling complexes, factories and logistics centers, net sales decreased by ¥0.6 billion (0.3%) year on year to¥215.4 billion. This was primarily due to delays in the start of some construction projects, despite work on handremaining firm in domestic construction operations on account of orders for large-scale projects. Segment profit was¥8.7 billion, a year-on-year increase of ¥0.2 billion (2.8%), mainly owing to the acquisition of additional construction
projects that included the effects of price increases, and efforts to raise profits generated by construction work.
[Civil Engineering]
The civil engineering business is engaged in construction work, mainly bridges and tunnels, as well as related
businesses. Net sales increased by ¥9.3 billion (6.6%) year on year to ¥152.0 billion, mainly due to steady progressin large-scale projects on hand at the beginning of the term in the domestic civil engineering operations. Segment
profit increased by ¥2.1 billion (14.7%) year on year to ¥16.8 billion, due to an improvement in profit, which arosefrom the acquisition of design changing projects and other projects, through construction support efforts conductedby the entire Company.
[Road Civil Engineering]
Road civil engineering mainly engages in pavement work and other construction business, and manufacture andsale of asphalt mixture. Net sales increased by ¥10.9 billion (4.7%) year on year to ¥243.6 billion as a result of steadysales. Segment profit increased by ¥1.3 billion (51.4%) year on year to ¥4.0 billion, as increases in raw material costs
were passed on and translated into higher asphalt mixture sales prices.
[Machinery]
For machinery, which focuses on the manufacture and sale of construction machinery, net sales increased by ¥2.0
billion (5.7%) year on year to ¥37.3 billion, while segment profit decreased by ¥0.3 billion (21.5%) year on year to¥1.3 billion. This was due to robust sales of the Company’s in-house products, such as cranes, in businesses including
the industrial and steel structure machinery business.
[Infrastructure Management]
For infrastructure management, which is mainly engaged in renewable energy and concession business, net sales
5increased by ¥3.8 billion (20.5%) year on year to ¥22.5 billion, and segment profit increased by ¥1.8 billion (30.8%)
year on year to ¥7.9 billion. This was due to solid results at Aichi Road Concession Co., Ltd. and other businesscompanies, as well as the sale of one wind power generation business.
[Others]
The others business segment ranges from the retail business to manufacturing and sale of construction materials,
building management, and real estate business, etc. Net sales increased by ¥1.1 billion (3.2%) year on year to ¥38.5
billion, while segment profit decreased by ¥0.6 billion (31.9%) year on year to ¥1.2 billion.

(2) Overview of Financial Position for the Fiscal Year under Review
Total assets for the current fiscal year were ¥926.5 billion, an increase of ¥0.1 billion (0.0%) from the end of theprevious fiscal year, mainly due to a decrease in investment securities. Liabilities stood at around ¥564.2 billion, a decreaseof ¥6.3 billion (1.1%) from the end of the previous fiscal year, mainly due to a decrease in short-term borrowings. Net
assets amounted to ¥362.3 billion, an increase of ¥6.4 billion (1.8%) from the end of the previous fiscal year. As a resultof the above, equity, which is net assets minus non-controlling interests, amounted to ¥352.6 billion, and the equity ratiorose from 37.4% at the end of the previous fiscal year to 38.1%.

(3) Overview of Cash Flows for the Fiscal Year under Review
Net cash provided by operating activities in the current fiscal year was ¥70.9 billion (¥16.3 billion used in the previous
fiscal year), mainly due to the recording of ¥51.8 billion in profit before income taxes. Net cash used in investing activities
amounted to ¥5.2 billion (¥22.5 billion used in the previous fiscal year), primarily due to ¥20.0 billion of purchase ofproperty, plant and equipment and intangible assets, and ¥4.2 billion of purchase of rights to operate public facilities,
despite ¥21.9 billion of proceeds from sale of investment securities. Net cash used in financing activities amounted to ¥56.3
billion (¥15.2 billion provided in the previous fiscal year), mainly due to a decrease in short-term borrowings, the payment
of dividends, and the purchase of treasury shares. As a result of the above, the balance of cash and cash equivalents at theend of the current fiscal year amounted to ¥86.0 billion, an increase of ¥9.9 billion from ¥76.0 billion at the end of theprevious fiscal year.

Trends in Cash Flow IndicesFiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

Equity ratio (%)

37.4

38.1

Equity ratio at market price (%)

29.7

27.9

Interest-bearing debt to cash flow ratio (times)–

2.2

Interest coverage ratio (times)

–

35.9

(Notes)Equity ratio: Equity/Total assets
Equity ratio at market price: Current aggregate value of shares/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/Cash flows from operating activities
Interest coverage ratio: Cash flows from operating activities/Interest expenses*All indicators are calculated based on consolidated financial figures.
*The current aggregate value of shares is calculated by multiplying the closing share price at the end of
the period by the number of shares outstanding (less treasury shares) at the end of the period.
*Cash flows from operating activities in the consolidated statement of cash flows are used for the cash
flows from operating activities.
Interest-bearing debt covers all debt bearing interest recorded in the consolidated balance sheet. In
addition, for interest payments, the amount of interest paid in the consolidated statement of cash flows are
used.

6

(4) Future Outlook
Going forward, the Japanese economy is expected to continue showing signs of recovery, as the normalization of
economic and social activities continue to progress under a state of coexistence with COVID-19, and various government
policies continue to take effect.
However, amid the prolonged situation in Ukraine and increases in fiscal interest rates globally, it is necessary to pay
close attention to the impact of the following factors on the Group’s business activities: soaring crude oil prices, fluctuations
in financial and capital markets such as stocks and foreign exchange, and supply-side constraints.
In the business environment surrounding the Company Group, national and local governments’ finances are expected
to become increasingly severe due to declining tax revenues on account of a declining population and increasing social
security costs caused by the aging of society, while the constant deterioration of a vast amount of social infrastructure,
which was developed during the period of high economic growth, will make it difficult to invest in new construction, letalone in the maintenance and renewal of existing infrastructure. In addition, given increasingly critical labor shortages dueto the shrinking working-age population caused by the falling birthrate and aging population, we also believe that atransformation to digitalization and responding to global environmental issues will be unavoidable, and that conventional
values in the construction industry will evolve, while the industrial structure will itself be transformed.
Under these circumstances, with the aim of solving these social issues and achieving sustainable growth for the entire
Group, the Company will strive to be a “company trusted by all stakeholders” by determining to aim for the mid- to longterm state of being an “integrated infrastructure service company” with one-stop style management from upstream todownstream of infrastructure operations.
We are committed to heightening synergies within the Company Group more than ever before, and to forge ahead in
unison, further strengthening management by aggressively investing in human resource development, promoting greateruse of IT, digital transformation, and other digital tools, improving productivity, establishing new revenue bases andincreasing profitability, while bolstering and enhancing governance.
1) Net sales
On a consolidated basis, we expect net sales of ¥740.0 billion for the next fiscal year. By segment, we project net
sales of ¥239.0 billion in building construction, ¥155.0 billion in civil engineering, ¥243.0 billion in road civilengineering, ¥39.0 billion in machinery, ¥24.0 billion in infrastructure management, and ¥40.0 billion in others.
2) Profit
For the next fiscal year, on a consolidated basis, we forecast ¥38.3 billion in operating profit, ¥39.2 billion in
ordinary profit, and ¥25.2 billion in profit attributable to owners of parent.
The Group plans to voluntarily adopt International Financial Reporting Standards (hereinafter “IFRS”) effective theconsolidated financial statements for the fiscal year ending March 31, 2024. Accordingly, the consolidated financial
results forecast for the fiscal year ending March 31, 2024, calculated based on IFRS, is as follows: net sales of ¥745.0
billion, business profit of ¥44.9 billion, operating profit of ¥44.9 billion, and profit attributable to owners of parent of¥30.0 billion.

(5) Basic Policy on Distribution of Profit and Dividends for Current and Next Fiscal Years
The Company regards the return of profits to shareholders as one of its most important management policies. Basedon the returns policy stated in the Company’s medium-term management plan “INFRONEER Medium-term Vision 2024,”
in addition to striving for a dividend payout ratio of 30% or more, the Company also plans to purchase its treasury shares.
Under such a policy, the Company will pay a dividend of ¥55 per share to shareholders for the current fiscal year.
Shareholder dividends in the following fiscal year are planned to be ¥55 per share (¥25 for the interim dividend, and ¥30
for the year-end dividend).
In addition, in order to further return profits to shareholders and enhance share value through the execution of aflexible capital policy, the Company began a share buyback program of up to ¥20.0 billion on November 16, 2021, which
was completed on April 13, 2022. Furthermore, the Company began another share buyback program of up to ¥10.0 billion
on August 12, 2022, and the buyback was completed on March 2, 2023.
Going forward, the Company will continue to strive for the achievement of profit return targets based on the returns
policy set forth in the medium-term management plan.

7

2. Status of Corporate GroupThe Group (the Company and its subsidiaries and affiliates) is comprised of 57 subsidiaries and 24 affiliates, led by Maeda
Corporation, Maeda Road Construction Co., Ltd. and Maeda Seisakusho Co., Ltd. It engages primarily in building construction,
civil engineering, road civil engineering, machinery, and infrastructure management businesses. It also conducts a wide arrayof other businesses, from retail to real estate. The segmentation is the same as that described in the segment information in “4.
Notes to Consolidated Financial Statements.”[Building Construction]
The building construction business engages in construction work and related activities primarily for multi-dwellingcomplexes, factories and logistics centers. Subsidiary Maeda Corporation, affiliate Toyo Construction Co., Ltd. and othercompanies operate this business, and these companies place orders with subsidiaries and affiliates for a portion of theconstruction work and delivery of materials.
[Civil Engineering]
The civil engineering business engages in construction work, mainly of bridges and tunnels, and related businesses.
Subsidiary Maeda Corporation and affiliate Toyo Construction Co., Ltd. operate this business, and these companies placeorders with subsidiaries and affiliates for part of the construction work they execute and for the delivery of materials.
[Road Civil Engineering]
Road civil engineering engages in pavement work and other construction business, and manufacture and sale ofasphalt mixture. Subsidiary Maeda Road Construction Co., Ltd. and other companies operate this business, and places
orders for certain portions of construction and delivery of materials to subsidiaries and affiliates.
[Machinery]
The machinery business is engaged in the manufacture and sale of construction machinery, and the rental business.
This business is operated by subsidiary Maeda Seisakusho Co., Ltd. and other companies, and these companies sell or leasecertain machinery to subsidiaries and affiliates.
[Infrastructure Management]
Infrastructure management focuses on developing the renewable energy and concession businesses. Subsidiaries
Aichi Road Concession Co., Ltd. and Anonymous Association Aichi Road Concession engage in the road maintenance andadministration business, subsidiary Mio Tsukushi Industrial Water Concession Co. engages in the industrial water
maintenance and administration business, affiliate Sendai International Airport Co., Ltd. conducts airport maintenance andadministration business, affiliate Aichi Sky Expo Co., Ltd. engages in exhibition maintenance and administration business,and subsidiary Maeda Corporation and other companies accept construction work orders.
[Others]
The others business segment is involved in a wide array of businesses, from retail to the manufacture and sale ofconstruction materials, as well as building management, real estate, and other operations. JM Corporation, a subsidiary, isengaged in the inspection, diagnosis, and repair of buildings and equipment. In addition, Fujimi Koken Co., Ltd. is engaged
in the manufacture and sale of secondary concrete products, and FBS Co., Ltd. is engaged in building renewal and building
management, etc. Affiliate Hikarigaoka Corporation is engaged in the real estate business, mainly leasing and selling landand buildings, and our subsidiary entrusts the leasing rights of land and buildings to affiliates and receives orders forconstruction work.

8

The following is a schematic diagram of the business.
Customers

The Company
Management and administration of subsidiaries and the Group, and operations incidental or related to such operations
Construction
work,material andequipmentdeliveryBusinessmanagement

Construction
work,material andequipmentdeliveryBusinessmanagement

Construction(Buildings, civil engineering)(Subsidiary)
Maeda Corporation

Road Civil Engineering(Subsidiary)
Maeda Road Construction
Co., Ltd.

(Affiliate)Toyo Construction Co., Ltd. *4

19 other companies *1, *3

Manufactureand sale ofconstruction
machineryBusinessmanagement

Maintenance,
operation,
other

Businessmanagement

Machinery(Subsidiaries)
Maeda Seisakusho Co.,Ltd.
Neox Inc.
Sun Network Maeda Co.,Ltd.
MAEDA AMERICA, Inc.

Infrastructure Management(Subsidiaries)
Aichi Road Concession Co., Ltd.
Anonymous Association Aichi
Road Concession
Mio Tsukushi Industrial Water
Concession Co.
13 other companies *3(Affiliates)
2 companies *5(Affiliates)
Sendai International Airport Co.,
Ltd. *4
Aichi Sky Expo Co., Ltd. *4
9 other companies *5

Building andequipment
inspection &diagnosis
Manufacturing
and sale ofconstruction
materials
Building
management
Real estateBusinessmanagement

Others(Subsidiaries)
JM Corporation
FBS Co., Ltd.
Thai Maeda Corporation Ltd.
Fujimi Koken Co., Ltd.
INFRONEER Digital Solutions
Inc.
Nihon Segment Kogyo Co.,Ltd.
10 other companies *2, *3(Affiliates)
Hikarigaoka Corporation *4
Koho Co., Ltd. *4
8 other companies *5

Construction work, manufacture and sale of equipment and materials, real estate sales and leasing, etc.

(Notes) 1. Unmarked: 15 consolidated subsidiaries; *1: 13 consolidated subsidiaries; *2: One non-consolidated subsidiaryaccounted for by the equity method; *3: 28 non-consolidated subsidiaries not accounted for by the equity method;*4: Five affiliates accounted for by the equity method; and *5: 19 affiliates not accounted for by the equity method.
2. In addition to the construction business, Toyo Construction Co., Ltd. is engaged in certain other businesses.

3. Basic Approach to the Selection of Accounting Standards
The Company has decided, and is preparing to voluntarily adopt, International Financial Reporting Standards (IFRS)
in place of Japanese GAAP for the consolidated financial statements at the end of the fiscal year ending March 31, 2024, forthe purpose of further streamlining and maintaining the quality of the financial and management reporting system for Groupbusiness management, and to improve the comparability of international financial information in capital markets.

94. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other
Securities*3

78,035*3

88,800*3

310,801*3

296,088

Real estate for sale
Merchandise and finished goods
Costs on construction contracts in progress
Raw materials and supplies

*7
*3

30

30

1,987
1,573

1,894
2,341

13,6983,444*730,003
3,815

Other
Allowance for doubtful accounts

43,149(117)

51,900(140)

Total current assets

452,602474,732

Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, vehicles, tools, furniture and fixtures*3, *5*3

Land
Leased assets

107,476
171,647*5*3

107,958
175,106

83,5991,334

81,241
1,513

Construction in progress
Accumulated depreciation

2,550(203,029)

3,850(213,407)

Total property, plant and equipment

163,578

156,264

Intangible assets
Right to operate public facilities
Assets related to replacement investment to operate*3

public facilities
Goodwill

109,721*3

105,144

24,122

27,15819,891

13,159Other

14,98813,651

Total intangible assets

168,724

159,113

Investments and other assets
Investment securities
Long-term loans receivable*1, *2Distressed receivables
Deferred tax assets

120,123221*1, *2354
840

Retirement benefit asset
Other

*2

14,907
5,418

100,429
267
220
1,077

*2

16,567
18,133

Allowance for doubtful accounts

(402)

(268)

Total investments and other assets

141,464

136,428

473,767

451,80562

24

926,432

926,563

Total non-current assets
Deferred assets
Total assets

10

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Electronically recorded obligations - operating
Account payable for works in progress and other
Short-term borrowings
Current portion of non-recourse loans
Current portion of bonds payable

*3

6,933

25,752110,997
84,492

116,170
36,688

1,194
–

*3

922
10,000

Lease liabilities
Accounts payable - other

236
9,614

133
8,875

Income taxes payable
Advances received on construction contracts in progress

10,89634,862

10,27237,807

Provision for repairs
Provision for bonuses

181
8,080

154
8,264

406
379

488
–

Provision for bonuses for directors (and other officers)
Provision for share awards
Provision for warranties for completed construction
Provision for loss on construction contracts*7

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

1,083
836

*7

1,082
342

4,555

4,664

1,016

1,030

public facilities
Other

23,46835,625

Total current liabilities

299,236

298,273

45,00048,000Non-current liabilities
Bonds payable
Long-term borrowings
Non-recourse loans*352,8519,947*354,886
3,893

Lease liabilities
Deferred tax liabilities

451
14,305413
10,018Retirement benefit liability
Provision for share awards

16,767–

17,055169

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

103,843

99,59024,58828,225public facilities
Other

3,573

3,721

271,330

265,974

570,566

564,248

Shareholders' equity
Share capital

20,00020,000Capital surplus
Retained earnings

134,117
198,273

106,455
234,129

Treasury shares(24,342)(18,395)

Total shareholders' equity

328,048

342,189

18,275
3

9,850
(453)

(95)
680

191
915

18,863

10,502

Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

11

8,953

9,622

355,865

362,315926,432

926,563(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales
Net sales of completed construction contracts
Sales in other businesses

390,678
292,234

400,937
308,703

Total net sales

682,912709,641

Cost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses*2338,718*2

345,862*1, *2

252,583*1, *2

265,654

Total cost of sales
Gross profit
Gross profit on completed construction contracts

591,302611,517

51,95955,075Gross profit - other business

39,65143,049Total gross profit

91,61098,124

Selling, general and administrative expenses*3

Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets*554,120*3

57,62837,48940,495

221

241

2,253
543

2,193
112

652
407

1,032
683

4,078

4,264

2,571

2,264

960

726

3,531

2,990

38,036

41,768

331

*5

609

Gain on sale of investment securities
Other

7,808
320

11,700163

Total extraordinary income

8,460

12,473Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities

*6

529
686

*6

425
258

Impairment losses
Other

*7

494
261

*7

1,461
291

Total extraordinary losses

1,972

2,436

Profit before income taxes

44,52451,805

Income taxes - current
Income taxes - deferred

14,64995

15,762(778)

Total income taxes

14,744

14,983

Profit29,77936,821

Profit attributable to non-controlling interests

3,089

951

Profit attributable to owners of parent

26,68935,87012

Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

29,77936,821

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(11,080)
46(8,414)(451)

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

(71)
1,322

305
253

42

(6)

(9,739)(8,313)

20,03928,50817,02927,5103,010

998

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests13

(3) Consolidated Statements of Changes in Shareholders’ Equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus

28,463Retained earnings

37,549178,526

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders’equityTreasury shares

241,706(2,833)(177)
28,46337,549(177)

178,348

241,528(2,833)

Changes during period
Dividends of surplus(7,144)(7,144)

Profit attributable toowners of parent

26,68926,689Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation(22,406)

589

0

1,374

1,964

(97,782)(141)

97,923

–

0

(78)

(78)
520

(26)

Increase by share transfers(22,406)(8,463)

193,866

Total changes during period(8,463)96,567

Balance at end of period

20,000134,117494(98,401)

87,001

19,925(21,509)86,519198,273(24,342)

328,048

Net changes in items otherthan shareholders' equity

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

29,218

(19)

2

(883)

28,31797,504

Cumulative effects of changes
in accounting policies
Restated balance

Total net
assets367,527(177)

29,218

(19)

2

(883)

28,31797,504367,350

Changes during period
Dividends of surplus(7,144)

Profit attributable toowners of parent

26,689Purchase of treasury shares(22,406)

Disposal of treasury shares

1,964

Cancellation of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation

–
(78)
494

Increase by share transfers

87,001

Net changes in items otherthan shareholders' equity(10,942)

23

(98)

1,563

(9,453)(88,551)(98,004)

Total changes during period(10,942)

23

(98)

1,563

(9,453)(88,551)(11,484)

Balance at end of period

18,275

3

(95)

680

18,863

8,953

355,865

14

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

Capital surplus

20,000Retained earnings

134,117

Treasury shares

198,273

Total shareholders’equity(24,342)

328,048

Cumulative effects of changes inaccounting policies
Restated balance–
20,000134,117

198,273(24,342)

328,048

Changes during period
Dividends of surplus(10,721)

Profit attributable toowners of parent(10,721)35,87035,870Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares(12,173)(12,173)

(20)

1,601

1,580

(16,919)

16,919

–

(400)

(400)

Change in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation

(15)

(15)

Increase by share transfers–

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–(27,661)

35,855

5,946

14,14020,000106,455

234,129(18,395)

342,189

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

18,275

3

(95)

680

18,863

8,953

Cumulative effects of changes
in accounting policies
Restated balance

Total net
assets355,865–

18,275

3

(95)

680

18,863

8,953

355,865

Changes during period
Dividends of surplus(10,721)

Profit attributable toowners of parent

35,870Purchase of treasury shares(12,173)

Disposal of treasury shares

1,580

Cancellation of treasury
sharesChange in ownershipinterest of parent due totransactions with noncontrolling interests
Change in scope of
consolidation(400)

Increase by share transfers

–

–

(15)

Net changes in items otherthan shareholders' equity(8,425)

(456)

287

234

(8,360)669(7,691)

Total changes during period(8,425)

(456)

287

234

(8,360)

669

6,449

Balance at end of period

9,850

(453)

191

915

10,502

9,622

362,31515

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023
44,52451,805

Depreciation
Impairment losses

24,890494

24,597
1,461

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

6,748
84

6,732
(110)

Increase (decrease) in provision for loss on construction
contracts

206

(494)

Increase (decrease) in retirement benefit liability and assets
Interest and dividend income(2,985)(2,475)(1,171)(2,435)Interest expenses
Foreign exchange losses (gains)

2,571
(169)

2,264
(90)

Share of loss (profit) of entities accounted for using equity
method(652)(1,032)

Loss (gain) on sale of short-term and long-term investment
securities(7,807)(11,688)

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

686

258

Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets

(309)
529

(598)
425

(41,622)

15,073(1,238)(16,305)

Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts inprogress
Decrease (increase) in inventories(287)(1,003)

Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in trade payables

1,391
122

(4,110)23,514

Increase (decrease) in advances received on construction
contracts in progress(2,119)2,724

Increase (decrease) in deposits received
Other, net(20,840)(2,949)6,814(10,129)

Subtotal(1,208)86,500Interest and dividends received
Interest paid

3,131
(2,286)

2,752(1,977)

Income taxes paid

(15,970)(16,320)

Net cash provided by (used in) operating activities(16,333)

70,95416

(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from investing activities
Purchase of property, plant and equipment and intangible
assetsPurchase of rights to operate public facilities

Fiscal year ended
March 31, 2023

(21,698)(20,043)(4,168)(4,267)

Payments for replacement investment to operate public
facilities(1,676)(883)

Proceeds from sale of property, plant and equipment andintangible assets

686

2,670

Purchase of investment securities
Proceeds from sale and redemption of investment securities(4,551)
11,018(168)
21,963Purchase of shares of subsidiaries and associates
Loan advances(3,311)(20)(3,198)
(572)

704
469

38
(831)

Net cash provided by (used in) investing activities(22,547)(5,293)

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

Proceeds from collection of loans receivable
Other, net

72,490(51,310)Proceeds from long-term borrowings
Repayments of long-term borrowings–(21,893)

15,000(8,582)

Decrease in non-recourse payable
Proceeds from issuance of bonds(1,313)–(845)
12,937

Redemption of bonds
Repayments of finance lease liabilities(5,000)
(433)

–
(305)

Proceeds from sale of treasury shares
Purchase of treasury shares

1,690(17,876)–(12,173)

Dividends paid
Dividends paid to non-controlling interests(7,144)(5,304)(10,721)
(315)

160

–

Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(86)

(66)

15,288(56,384)

163

90

Net increase (decrease) in cash and cash equivalents(23,429)

9,367

Cash and cash equivalents at beginning of period

98,97676,018471

629

Increase in cash and cash equivalents resulting from inclusion ofsubsidiaries in consolidation
Cash and cash equivalents at end of period*11776,018*1

86,015(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Important matters that form the basis for preparation of consolidated financial statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 28
Names of major consolidated subsidiaries:
Maeda Corporation
Maeda Road Construction Co., Ltd.
Maeda Seisakusho Co., Ltd.
Effective from the current fiscal year, the newly established MAEDA AMERICA Inc., INFRONEER Digital
Solutions Inc. and JAPAN BIO FUEL Co., Ltd. were included in the scope of consolidation. In addition, Nihon
Segment Kogyo Co., Ltd., which was made a subsidiary via share acquisition, and Mio Tsukushi Industrial Water
Concession Co., which increased in importance, have been included in the scope of consolidation.
On the other hand, the following companies that were consolidated subsidiaries have been excluded from the scopeof consolidation for the following reasons: Anonymous Association Happo Wind Development has been excluded
due to the sale of the equity interest in the anonymous association it held; Aoisangyo CO., Ltd. andKeihinrecyclecenter CO., Ltd. have been excluded because they were dissolved in absorption-type mergers; andMaeda Pacific Corporation has been excluded because it was liquidated.
(2) Names of major non-consolidated subsidiaries
J.CITY Corporation(Reason for excluding from scope of consolidation)
Non-consolidated subsidiaries are excluded from the scope of consolidation because they are small companies andtheir combined total assets, net sales, net income/loss (the amount equivalent to equity), and retained earnings (theamount equivalent to equity) have no material impact on the consolidated financial statements.
2. Matters with regard to the equity method(1) Number of non-consolidated subsidiaries accounted for by the equity method: 1
Company name: J.CITY Corporation(2) Number of affiliates accounted for by the equity method: 5Name of principal company: Toyo Construction Co., Ltd.
(3) Non-consolidated subsidiaries (Chiba City Consumer Life PFI Service Co., Ltd., others) and affiliates (Toyota City
Eastern School Lunch Center Co., Ltd., others), which are not accounted for by the equity method, are excluded fromthe application of the equity method because they have only a minor impact on net income or loss (amountcorresponding to equity) and retained earnings (amount corresponding to equity), and lack overall importance.
3. Matters with regard to the fiscal year of consolidated subsidiaries
Among consolidated subsidiaries, the account settlement date of Maeda Pacific Corporation is December 31, and theaccount settlement date of Nihon Segment Kogyo Co., Ltd is February 28. Consequently, in preparing the consolidated
financial statements, the Company uses the financial statements of the subsidiaries as of their fiscal year-end, and makes
necessary adjustments for significant transactions that occurred between their fiscal year-end and the consolidated fiscal
year-end.

18

4. Matters with regard to accounting policies(1) Valuation standard and valuation method of important assets
1) Securities
Bonds held to maturity
Stated using the amortized cost method (straight-line method)
Available-for-sale securitiesThose other than shares, etc. without market value
Stated using the market price method (Net unrealized gains or losses on these securities are included directly inoverall net assets, and costs of securities sold are calculated based on the moving-average method).
Shares, etc. without market value
Mainly stated at cost determined by the moving-average method.
2) Evaluation criteria and evaluation methods for derivatives, etc.
Stated at fair value.
3) Inventories
Costs on construction contracts in progressStated at cost by the specific identification method.
Real estate for sale, merchandise and finished goods, project costs for development and others, and raw materials andsupplies
Stated using the specific identification cost method (write-down according to decreased profitability).
Certain consolidated subsidiaries state raw materials and supplies at cost determined by the last purchase pricemethod (write-down according to decreased profitability).
(2) Depreciation and amortization method for significant depreciable assets
1) Property, plant and equipment (excluding leased assets)
Stated using the declining-balance method. However, buildings (excluding building fixtures) acquired on or after
April 1, 1998 and equipment and structures attached to buildings acquired on or after April 1, 2016 are depreciatedby the straight-line method.
Useful life and residual value are mainly based on the same standard as stipulated in the Corporation Tax Law ofJapan.
Certain assets of consolidated subsidiaries are depreciated using either the straight-line method or the unit-ofproduction method, and the useful life of the straight-line method is based on the economic useful life of the asset.
2) Intangible assets (excluding leased assets) and long-term prepaid expense
Stated using the straight-line method. However, the unit-of-production method is used for a portion of the assets
related to public facility operating rights and replacement investments of public facility operating businesses.
Software of the Company is amortized by the straight-line method over 5 years, the useful life set by the Company.
3) Leased assets
The leased assets under finance lease contracts that transfer ownership to the lessee are depreciated by the same
method applicable to the Company’s own fixed assets, but the leased assets that do not transfer ownership are fully
depreciated to a zero residual value by the straight-line method over the period of the lease contract.
(3) Handling method of significant deferred assets
1) Bond issuance expenses and inaugural expenses
Bond issuance expenses and inaugural expenses are fully amortized at the time of expenditure.
2) Opening expenses
Amortized on a straight-line basis over 5 years

19(4) Basis for recognition of significant reserves
1) 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 a case-by-case determination of collectability.
2) Provision for repairs
A provision for repair costs of heavy machinery has been provided based on an estimated cost until the current fiscal
year.
3) Provision for bonuses
To provide for the payment of bonuses to employees, a provision is provided for the estimated amount of bonuses tobe paid, which is to be borne by the Company in the current fiscal year.
4) Provision for bonuses for directors (and other officers)
To provide for the payment of bonuses to directors and other officers, a provision is provided for the estimated amountof bonuses to be paid in the current fiscal year.
5) Provision for warranties for completed construction
To provide for expenses related to contract of non-compliance, etc. on completed construction contracts, a provision
is provided based on actual results over a certain period of time in the past.
6) Provision for loss on construction contracts
To prepare 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 the amount of such losses
can be estimated in a reasonable manner.
7) Provision for share awards
To prepare for future payments of the Company’s shares to directors and other officers in accordance with the Officers’
Share Benefit Regulations, a provision is provided for the estimated amount of the share benefit obligation as of theend of the current fiscal year.
(5) 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 to the period
up to the end of the current fiscal year based on the benefit formula method. Certain consolidated subsidiaries use thestraight-line attribution method.
2) Method of amortizing actuarial gains and losses and prior service cost
Actuarial gains and losses are amortized by the straight-line method over a fixed number of years (10 to 15 years)
within the average remaining service period of employees at the time the gains or losses are recognized, and theamount is expensed from the following fiscal year.
Prior service cost is amortized by the straight-line method over a fixed 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 apply the simplified method in which the retirement benefit amount required forvoluntary termination at year-end is deemed a retirement benefit obligation for the calculation of retirement benefit
liability and retirement benefit expenses.

20

(6) Significant hedge accounting methods
1) Hedge accounting methods
Deferred hedge accounting is applied. Forward exchange contracts that qualify for hedge accounting are accounted
for using the allocation method, and interest rate swaps that qualify for special matching criteria are accounted forusing special accounting treatment.
2) Hedging instruments and hedged items
Hedging instruments
Derivative transactions (interest rate swap transactions and forward exchange contracts)
Hedged items
Assets or liabilities with potential losses due to market fluctuations, etc., for which cash flows are fixed andfluctuations are avoided.
3) Hedging policy
Intended to avoid the risk of future fluctuations in interest rates and foreign exchange rates.
4) Methods of assessing the hedging effectivenessThe cumulative cash flow fluctuation of the hedged item and the hedging instrument are compared for the respective
periods.
(7) Basis for recording significant 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 the Company
Group’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, construction, and roadcivil engineering businesses, to construct buildings or structures and to perform related services. The Group identifies
the work it performs with respect to these contracts as performance obligations.
For construction contracts for which the degree of completion can be reasonably estimated, the percentage ofcompletion is estimated by the input method based on the cost incurred, and revenue is recognized over a period of timeas the performance obligation to transfer goods or services to the customer is satisfied. Except for the initial stages ofa contract, revenue is recognized on a cost recovery basis for construction projects for which the progress of completioncannot 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 recognized when the performanceobligation is fully satisfied.
For construction projects that require a long period of time from the satisfaction of performance obligations to thereceipt of consideration from the customer and for which a significant financial component is recognized, an adjustment
shall be made for the portion that corresponds to financial income.

21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 road civilengineering business, and sells construction equipment products and manufactures and sells industrial machinery andother 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, the Company Group recognizes revenue at the time of their delivery because
control is transferred to the customer and the performance obligation is satisfied 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.
3) Revenue recognition with regard to renewable energy and concession businesses
In infrastructure management, the Company Group sells electricity from renewable energy sources and maintains,
manages, and operates public facilities for which the Company 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.
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.
(8) Amortization of goodwill and amortization period
In the case the amount is significant, goodwill is amortized on a straight-line basis over 5 years. In case the amountis immaterial, goodwill is charged to expense in the current fiscal year.
(9) Scope of funds in the consolidated statement of cash flows
Consists of cash, demand deposits, time deposits with maturities of three months or less, certificates of deposit, andcommercial paper.
(10) Other important matters for preparation of consolidated financial statements
Accounting treatment principles and procedures adopted in the absence of clear provisions of related accounting
standards, etc.
Method of accounting treatment for construction joint ventures (JVs)
Assets, liabilities, income and expenses are recognized primarily in proportion to the member’s investment.
(Changes to accounting policies)
Application of Guidance on Accounting Standard for Fair Value Measurement, etc.
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, June17, 2021; hereinafter the “Fair Value Measurement Guidance”) has been applied from April 1, 2022, and the new
accounting policies prescribed by the Fair Value Measurement Guidance will be prospectively applied in accordance withthe transitional treatment prescribed in Paragraph 27-2 of the Fair Value Measurement Guidance. The application of the
Fair Value Measurement Guidance has no effect on the consolidated financial statements.

22(Additional information)
Transactions to offer the Company’s shares to employees, etc. through trust(1) 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 throughtrust, with the aim of enhancing employees’ benefits and providing incentives for the Company and Group employees toincrease corporate value.
1. Descriptions of transactions
In March 2022, the Company introduced a “Stock Benefit Trust Disposition-type Employee Stock Ownership Plan”(hereinafter 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 theCompany 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 the Trustee is to re-entrust shares of the Company
and other assets of the ESOP Trust to an account with ancillary 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, the Maeda 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 the time of the ESOP Trust’s
termination, gains equivalent to capital gains on sales of shares are accumulated within the ESOP Trust through sales ofCompany’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, toguarantee funds borrowed by the Trustee 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 terminationof the ESOP Trust.
2. The Company’s shares remaining in trust
The Company’s shares remaining in trust were recorded as treasury shares in the net assets section at the book value
in trust (excluding the amount as ancillary expenses). At the end of the previous fiscal year, the book value and numberof shares of the relevant treasury shares were ¥4,501 million and 4,221 thousand shares, respectively. As of March 31,
2023, the book value and number of shares of the relevant treasury shares were ¥3,355 million and 3,267 thousand shares,
respectively.
3. Book value of borrowings recorded using the gross method
Borrowings at the end of the previous fiscal year amounted to ¥4,545 million and as of March 31, 2023 amounted to¥3,621 million.
(2) Board Benefit Trust (BBT)The Company’s consolidated subsidiary Maeda Corporation introduced a performance-based stock compensation
plan called “Board Benefit Trust” for directors (excluding outside directors) and executive officers (hereinaftercollectively the “Directors”) of Maeda Corporation. On September 1, 2022, in place of the former performance-based
stock compensation plan for Directors, the Company introduced a new performance-based stock compensation plan called“Board Benefit Trust” (hereinafter “BBT”) for directors (excluding outside directors) and executive officers of theCompany (hereinafter, directors and executive officers of the Company are collectively referred to as the “Eligible
Directors”), in order to clarify a linkage among the Eligible Directors’ rewards, the Company’s financial results, and thevalue of stock, and to enhance their motivation to contribute to the improvement of mid- to long-term businessperformance and the increase in corporate value by making them share not only the benefits of higher share prices, butalso the risks of lower share prices with shareholders.
Following the introduction of the new plan, the operating entity of the BBT was changed from Maeda Corporation to
the Company, with the trust assets transferred to the Company.

23

1. Descriptions of transactions
The BBT is a performance-based stock compensation plan under which the Company’s shares are acquired through atrust (hereinafter the trust that is established based on the BBT is referred to as the “Trust”), using money contributed by
the Company as the source of funds, and the Eligible Directors are provided with the Company’s shares and an amount ofmoney equivalent to the market value of the Company’s shares (hereinafter the “Company’s Shares, etc.”) through theTrust in accordance with the Regulations on Stock Benefits for Officers stipulated by the Company. The Eligible Directors
shall receive the Company’s Shares, etc. at a certain time after the end of each period of the Company’s Medium TermBusiness Plan (an initial applicable period and each three consecutive fiscal years following the initial applicable period),in principle.
2. The Company’s shares remaining in trust
The Company’s shares remaining in trust are recorded as treasury shares in the consolidated balance sheet at the bookvalue in trust (excluding the amount as ancillary expenses). At the end of the previous fiscal year, the book value andnumber of shares of the relevant treasury shares were ¥549 million and 657 thousand shares, respectively. As of March
31, 2023, the book value and number of shares of the relevant treasury shares were ¥303 million and 377 thousand shares,
respectively.
(Notes to consolidated balance sheets)*1. The amounts related to non-consolidated subsidiaries and affiliates is as follows(Millions of yen)

Investment securities (stocks)

As of March 31, 2022

As of March 31, 2023

22,00025,415*2. Collateral assets
Assets pledged as collateral are as follows.
(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Investment securities

88

88

Investments and other assets (others)

400

275

Total

489

363

Collateral assets corresponding to non-recourse debt are presented as included in “3. Assets corresponding to non-recourse
debt.”*3. Assets corresponding to non-recourse debt are as follows.
(Millions of yen)
As of March 31, 2022
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
and other
Raw materials and supplies

As of March 31, 2023

13,352(–)

13,356

(–)

1,446

(–)

1,424

(–)

23

(23)

–

(–)

1

(1)

–

(–)

Buildings and structures
Machinery, vehicles, tools, furniture andfixtures
Right to operate public facilities

5,510(5,506)

2(–)

109,721(–)

104,726

(–)

Total

130,056(5,531)

119,510(–)

The figures in parentheses represent the amounts pledged as revolving mortgages to the factory foundations of consolidated
subsidiaries and the corresponding assets.

24*4. Guarantee obligations
The Company has guaranteed the following companies’ borrowings from financial institutions.
(1) Loan guarantees*Ozu Biomass Power Co., Ltd., ENE SEA BASE KAGOSHIMA Co., Ltd and Izumon Retailing Co., Ltd. are affiliates.
(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Asai Construction Co., Ltd.
Ozu Biomass Power Co., Ltd.
ENE SEA BASE KAGOSHIMA
Co., Ltd.
Izumon Retailing Co., Ltd.

765
–

665
691

–

30

45

41

Total

810

1,427

As of March 31, 2022
393
–
393

As of March 31, 2023
1,634
776
2,410

(2) Construction bidding, performance guarantees, etc.
*Maeda Vietnam Co., Ltd. is an affiliate.
(Millions of yen)
Maeda Vietnam Co., Ltd.
Sompo Japan Insurance Inc.
Total

*5. The reduction entry amount deducted from the acquisition cost of property, plant and equipment due to government
subsidies, etc., is as follows(Millions of yen)

Buildings and structures

As of March 31, 2022

As of March 31, 2023

286

286

*6. Discounted notes receivable and endorsed trade notes receivable(Millions of yen)Endorsed trade notes receivable
Transfer of notes receivable throughliquidation

As of March 31, 2022

As of March 31, 2023

8,243

2,656

12

–

*7. The amount of costs on construction contracts in progress related to construction contracts that are expected to incur losses
and the provision for loss on construction contracts are not offset, but are presented as two separate items. The amount of costs
on construction contracts in progress related to construction contracts expected to incur losses that corresponds to the provision
for loss on construction contracts is as follows.
(Millions of yen)

Costs on construction contracts in progress

As of March 31, 2022

As of March 31, 2023

87

67

25

(Notes to consolidated statements of income)*1. The ending inventory is the amount after devaluation of the book value due to the decline in profitability, and the following
loss on valuation of inventories is included in cost of sales.
(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

33

37

*2. Provision for loss on construction contracts included in cost of sales is as follows.
(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

389

220

*3. Major expense items and amounts within selling, general and administrative expenses are as follows.
(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

Employee salary allowance

17,666

19,556

Research study expenses

7,125

6,455

Amortization of goodwill

6,748

6,732

Retirement benefit expenses

1,068

1,089

Provision for bonuses
Provision of allowance for doubtful
accounts
Provision for bonuses for directors(and other officers)

3,160

3,162

6

51

247

155

*4. Total R&D expenses included in general and administrative expenses and manufacturing costs for the period under review
are as follows.
(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

5,669

4,917

*5. Breakdown of gain on sale of non-current assets is as follows.
(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

Land

128

532

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

68

14

134

62

331

609

26

*6. Breakdown of loss on retirement of non-current assets is as follows.
(Millions of yen)
Fiscal year ended March 31, 2022

Fiscal year ended March 31, 2023

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

224

227

244

136

60

62

Total

529

425

*7. Impairment loss
The Group posted impairment loss on the following asset groups.
Fiscal year ended March 31, 2022
(Millions of yen)
RegionMain applications

Shizuoka Prefecture

Business assets

Tokyo

Leasing business assets,othersChiba Prefecture

Business assets

Fukushima
Prefecture

Business assets

Shimane Prefecture

Business assets

Akita Prefecture,othersBusiness assets, others

Types
Land, buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Buildings and structures
Buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Land, buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Land, buildings and structures,
machinery, vehicles, tools,
furniture and fixtures

Impairment loss
330
84
29
19
16
12

The Group categorizes business assets for its own use by business office, and by each individual item for leasing businessassets, golf courses, and other assets that are scheduled for disposal.
Due to a decline in profitability of business assets, etc., the book value of the above assets was reduced to the recoverable
amount, and the amount of the reduction was recorded as an impairment loss (¥494 million) under extraordinary losses.
The major breakdown is ¥208 million for buildings and structures, ¥279 million for machinery, vehicles, tools, furniture andfixtures, and ¥6 million for land.
The recoverable amount of such assets is the higher of either net realizable value or value in use. Net realizable value iscalculated based on market value, etc., while for value in use, the recoverable amount is zero for those assets with negative
future cash flows.

27

Fiscal year ended March 31, 2023
(Millions of yen)
RegionMain applications

Tokyo

Leasing business assets,othersFukui Prefecture

Business assets

Kanagawa Prefecture

Business assets

Ehime Prefecture

Business assets

Hiroshima Prefecture

Business assets

Yamaguchi
Prefecture

Business assets

Iwate Prefecture,othersBusiness assets, others

Types
Land, buildings and structures,construction in progress, others
Land, buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Land, buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Buildings and structures,
machinery, vehicles, tools,
furniture and fixtures
Land, buildings and structures,
machinery, vehicles, tools,
furniture and fixtures

Impairment loss
972
169
72
62
55
36
92

The Group categorizes business assets for its own use by business office, and by each individual item for leasing businessassets, golf courses, and other assets that are scheduled for disposal.
Due to a decline in profitability of leasing business assets, etc., the book value of the above assets was reduced to therecoverable amount, and the amount of the reduction was recorded as an impairment loss (¥1,461 million) under extraordinary
losses.
The major breakdown is ¥662 million for buildings and structures, ¥264 million for machinery, vehicles, tools, furniture andfixtures, and ¥411 million for land, ¥77 million for construction in progress, and ¥45 million for others.
The recoverable amount of such assets is the higher of either net realizable value or value in use. Net realizable value iscalculated based on market value, etc., while value in use is calculated by discounting future cash flows by 3.5%. However,for assets with negative future cash flows, the recoverable amount is set at zero.

28

(Notes to consolidated statements of changes in shareholders’ equity)
Fiscal year ended March 31, 2022
1. Class and total number of issued shares and treasury shares
Number of shares as ofbeginning of fiscal year
under review(thousands of shares)

Number of increased
shares in fiscal year
under review(thousands of shares)

Number of decreased
shares in fiscal year
under review(thousands of shares)

Number of shares as ofend of fiscal year underreview(thousands of shares)

Common shares

194,608

391,539

295,077

291,070

Total

194,608

391,539

295,077

291,070

Common shares

7,348

121,994

102,648

26,694

Total

7,348

121,994

102,648

26,694

Issued shares

Treasury shares(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 cancellationof treasury shares based on the resolution of the Board of Directors meeting held by Maeda Corporation in September
2021, a decrease of 194,447 thousand shares in issued shares of Maeda Corporation, which became a wholly owned
subsidiary, and a decrease of 100,469 thousand shares due to the cancellation of treasury shares based on the resolutionof the Board of Directors meeting held by the Company in November 2021.
3. The number of treasury shares at the beginning of the current fiscal year includes 496 thousand shares of theCompany's shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership Plan 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 shares is composed of 100,675 thousand shares of the Company
allocated to subsidiaries as a result of the Share Transfer, an increase of 17,066 thousand shares from the acquisitionof treasury shares based on a resolution of the Board of Directors, an increase of 20 thousand shares from theacquisition of shares with transfer restrictions without compensation, an increase of 10 thousand shares from thepurchase of shares of less than one unit, and an increase of 4,221 thousand shares from the acquisition of Company
shares by the Stock Benefit Trust Disposition-type Employee Stock Ownership Plan that the Company has adopted.
5. The decrease of 102,648 thousand shares in treasury shares is due to a decrease of 160 thousand shares resulting fromthe cancellation of treasury shares based on the resolution of the Board of Directors meeting held by Maeda
Corporation in September 2021, the decrease of 100,469 thousand shares resulting from the cancellation of treasury
shares based on the resolution of the Board of Directors meeting held by the Company in November 2021, the decreaseof 1,762 thousand shares due to the disposal of treasury shares based on a resolution of the Board of Directors, thedecrease of 164 thousand shares due to treasury share disposal as restricted stock compensation, and the decrease of
92 thousand shares due to the sale of shares to the employees stock ownership plan through the Stock Benefit Trust
Disposition-type Employee Stock Ownership Plan introduced by Maeda Corporation.
6. The number of treasury shares at the end of the current fiscal year includes 4,221 thousand shares held by the Stock
Benefit Trust Disposition-type Employee Stock Ownership Plan that the Company has adopted and 657 thousand
shares held by the BBT introduced by Maeda Corporation.

2. Dividends(1) Payment of dividends
The Company was established on October 1, 2021 by means of a joint share transfer as a wholly owning parent companyof Maeda Corporation, Maeda Road Construction, Co., Ltd., and Maeda Seisakusho Co., Ltd., and for that reason the amountof dividends paid is the amount resolved at Maeda Corporation, which was the former parent company that became a wholly
owned subsidiary through the joint share transfer.

29

Resolution

Type of shares

Generalshareholders
meeting held on June23, 2021

Common shares

Total amount of
Dividend per share
dividends(yen)(Millions of yen)
7,144

38.0

Record date

Effective date

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 dividendsof ¥3 million for the Company’s shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership
Plan introduced by Maeda Corporation, and dividends of ¥24 million for the Company’s shares held by the Board
Benefit Trust (BBT) introduced by Maeda Corporation.

(2) Dividends with a record date that falls within the fiscal year under review but an effective date in the following
fiscal year
(Resolution)

Type ofsharesTotal amountof dividends(Millions ofyen)

Source ofdividend

Dividend pershare (Yen)

Board ofDirectors’ meeting
held on May 13,
2022

Commonshares

10,770Capitalsurplus

40.0

Record date

Effective date

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 dividendsof ¥168 million for the Company’s shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership
Plan that the Company has adopted, and dividends of ¥26 million for the Company’s shares held by the Board Benefit
Trust (BBT) introduced by Maeda Corporation.

Fiscal year ended March 31, 2023
1. Class and total number of issued shares and treasury shares
Number of shares as ofbeginning of fiscal year
under review(thousands of shares)

Number of increased
shares in fiscal year
under review(thousands of shares)

Number of decreased
shares in fiscal year
under review(thousands of shares)

Number of shares as ofend of fiscal year underreview(thousands of shares)

Common shares

291,070–

16,225274,845

Total

291,070–

16,225274,845

Common shares

26,694

13,294

17,65922,329Total

26,694

13,294

17,65922,329Issued shares

Treasury shares(Notes) 1. The decrease of 16,225 thousand issued shares is due to the cancellation of treasury shares based on the resolution of
the Board of Directors meeting held by the Company in May 2022.
2. The number of treasury shares at the beginning of the current fiscal year includes 4,221 thousand shares held by the
Stock Benefit Trust Disposition-type Employee Stock Ownership Plan that the Company has adopted and 657
thousand shares held by the BBT introduced by Maeda Corporation.
3. The increase of 13,294 thousand shares in treasury shares is composed of an increase of 12,057 thousand shares fromthe acquisition of treasury shares based on a resolution of the Board of Directors, an increase of 4 thousand sharesfrom the purchase of shares of less than one unit, and an increase of 1,232 thousand shares due to changes in ownershipinterest.
4. The decrease of 17,659 thousand shares in treasury shares is due to the decrease of 16,225 thousand shares resulting
from the cancellation of treasury shares based on the resolution of the Board of Directors meeting held by the Company
in May 2022, the decrease of 479 thousand shares due to treasury share disposal as restricted stock compensation, andthe decrease of 954 thousand shares due to the sale of shares to the employees stock ownership plan through the Stock
Benefit Trust Disposition-type Employee Stock Ownership Plan.
5. The number of treasury shares at the end of the current fiscal year includes 3,267 thousand shares held by the Stock
Benefit Trust Disposition-type Employee Stock Ownership Plan that the Company has adopted and 377 thousand
shares held by the BBT.
30

2. Dividends(1) Payment of dividends(Resolution)

Type ofsharesTotal amountof dividends(Millions ofyen)

Source ofdividend

Dividend pershare (yen)Board ofDirectors’ meeting
held on May 13,
2022

Commonshares

10,770Capitalsurplus

40.0

Record date

Effective date

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 dividendsof ¥168 million for the Company’s shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership
Plan introduced by the Company, and dividends of ¥26 million for the Company’s shares held by the Board Benefit
Trust (BBT) introduced by Maeda Corporation.

(2) Dividends with a record date that falls within the fiscal year under review but an effective date in the following
fiscal year
(Resolution)

Type ofsharesTotal amountof dividends(Millions ofyen)

Source ofdividend

Dividend pershare (Yen)

Board ofDirectors’ meeting
held on May 8,
2023

Commonshares14,088Retainedearnings

55.0

Record date

Effective date

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 dividendsof ¥179 million for the Company’s shares held by the Stock Benefit Trust Disposition-type Employee Stock Ownership
Plan that the Company has adopted, and dividends of ¥20 million for the Company’s shares held by the Board Benefit
Trust (BBT).

(Notes to consolidated statements of cash flows)*1. Relationship of balance of cash and cash equivalents at fiscal year-end and amount of items presented in consolidatedbalance sheet(Millions of yen)

Cash and deposits
Deposits with a term longer than 3 months
Time deposits
Separate deposits in trusts*
Cash and cash equivalents

Fiscal year ended
March 31, 2022
78,035

Fiscal year ended
March 31, 2023
88,800(1,842)(2,499)(174)
76,018(285)
86,015(Note) Included in Stock Benefit Trust Disposition-type Employee Stock Ownership Plan and Board Benefit Trust
(BBT)

31

(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Group’s reportable segments are components of the group for which separate financial information is available andwhich are subject to periodic review by the Board of Directors to determine the allocation of management resources andevaluate their performance.
The Group consists of business and service segments based on consolidated subsidiaries, etc., and has five reportablesegments: building construction, civil engineering, road civil engineering, machinery, and infrastructure management.
An overview of each reportable segment is as follows.
Building construction: Contracting of construction work and related business
Civil engineering: Contracting of civil engineering work and related businesses
Road civil engineering: Contracting for pavement construction, manufacture and sale of asphalt mixture and othermaterials, and related businesses
Machinery: Manufacture and sale of construction equipment and related businesses
Infrastructure management: Renewable energy business and concession business, and related business
2. Method of calculation of sales, profit or loss, and other items by reportable segment
The accounting method used for the reported business segments is generally the same as that described in “Importantmatters that form the basis for preparation of consolidated financial statements.” Profits of reportable segments are based on
operating profit. Inter-segment transactions are transactions among consolidated companies and are based on market prices,etc.
3. Information on sales, profit or loss, and other items by reportable segment
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Adjustment(Note 2)

Amountrecorded inconsolidated
statement ofincome(Note 3)

Reportable Segment
Building
Civil
Road Civil
Machinery
Construction Engineering Engineering

InfrastructureManagement

Total

Other
(Note 1)Total

Net sales
Goods transferred at apoint in time
Goods transferred overtime
Income from contracts
with customers

8,941

2,718

183,675

29,667

18,610243,613

26,057

269,670–

269,670

205,443

139,920

48,92751–

394,343

11,350405,693–405,693

214,384

142,639

232,60229,71918,610637,956

37,407675,363–

675,363

1,717

–

164

5,603

63

7,548

–

7,548

–

7,548

Net sales to outside
customers
Inter-segment net sales
or transfers

216,102

142,639

232,767

35,322

18,673645,505

37,407

682,912–682,912

2,461

(125)

2,832

1,823

293

7,284

14,76422,049(22,049)–

Total

218,563

142,513

235,599

37,146

18,966

652,790

52,171

704,962(22,049)

682,912Segment profit

8,497

14,661

2,668

1,693

6,095

33,6161,890

35,506

1,983

37,489

3,196

2,085

10,744

1,791

6,506

24,324515

24,840(130)

24,709

–

–

6,748

–

–

6,748

–

6,748

–

6,748

Other income

Other items
Depreciation
Amortization of
goodwill(Notes) 1. “Others” is the segment which is not included in reportable segments, namely businesses operated by somesubsidiaries
2. Adjustment of segment profit includes inter-segment transactions of ¥1,983 million.
3. Adjustments are made to reconcile segment profit to operating profit reported on the consolidated statement ofincome.
4. Assets are not allocated to business segments, so the amount of assets for each segment is not shown.

32

Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Adjustment(Note 2)

Amountrecorded inconsolidated
statement ofincome(Note 3)

Reportable Segment
Building
Civil
Road Civil
Machinery
Construction Engineering Engineering

InfrastructureManagement

Total

Other
(Note 1)Total

Net sales
Goods transferred at apoint in time
Goods transferred overtime
Income from contracts
with customers

9,143

2,206

192,326

32,361

15,654

251,692

27,936279,629–

279,629

204,466

149,826

51,202

56–

405,551

10,661

416,212–416,212

213,609

152,032

243,528

32,417

15,654657,244

38,598695,842–

695,842

1,855

–

168

4,922

6,851

13,798–

13,798–

13,798Net sales to outside
customers
Inter-segment net sales
or transfers

215,465

152,032

243,697

37,34022,506

671,043

38,598709,641–

709,641

1,807

35

4,965

1,698

–

8,506

11,52020,027(20,027)–

Total

217,273

152,068

248,662

39,03922,506

679,549

50,118729,668(20,027)

709,641

Segment profit

8,733

16,815

4,039

1,329

7,973

38,8901,287

40,178316

40,495

3,030

2,160

10,541

1,684

6,605

24,023712

24,735(137)

24,597

–

–

6,732

–

–

6,732

–

6,732

–

6,732

Other income

Other items
Depreciation
Amortization of
goodwill(Notes) 1. “Others” is the segment which is not included in reportable segments, namely businesses operated by somesubsidiaries
2. Adjustment of segment profit includes inter-segment transactions of ¥316 million.
3. Adjustments are made to reconcile segment profit to operating profit reported on the consolidated statement ofincome.
4. Assets are not allocated to business segments, so the amount of assets for each segment is not shown.

33

(Per share information)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net assets per share

1,312.19

1,396.72

Earnings per share

94.73

138.39(Notes) 1. Diluted earnings per share is not shown because there are no diluted shares.
2. Earnings per share for the previous fiscal year is calculated by multiplying the average number of shares of
Maeda Corporation, etc. 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 transfer rate.
3. Shares of the Company remaining in the Stock Benefit Trust Disposition-type Employee Stock Ownership Plan
and the Board Benefit Trust (BBT), which are recorded as treasury shares in shareholders’ equity, are included
in treasury shares as a deduction in the calculation of average number of shares outstanding during the period
for the purpose of calculating earnings per share. The number of such treasury shares at the end of the period
deducted for the calculation of net assets per share was 4,221 thousand shares for the Stock Benefit Trust
Disposition-type Employee Stock Ownership Plan and 657 thousand shares for the BBT at the end of the previous
fiscal year, and 3,267 thousand shares for the Stock Benefit Trust Disposition-type Employee Stock Ownership
Plan and 377 thousand shares for the BBT at the end of the current fiscal year. The average number of suchtreasury shares deducted from the calculation of earnings per share was 343 thousand shares for the Stock Benefit
Trust Disposition-type Employee Stock Ownership Plan and 657 thousand shares for the BBT at the end of theprevious fiscal year, and 3,714 thousand shares for the Stock Benefit Trust Disposition-type Employee Stock
Ownership Plan and 485 thousand shares for the BBT at the end of the current fiscal year.
4. The basis for calculating earnings per share is as follows.
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Profit attributable to owners of parent(Millions of yen)

26,68935,870

Amount not attributable to common shareholders(Millions of yen)––

Profit attributable to owners of the parent forcommon stock(Millions of yen)

26,68935,870

Average number of shares during the period(Thousands ofshares)281,728

259,197(Significant subsequent event)Not applicable.

34

5. Others(1) (Building Construction Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog
1. Orders Received(Millions of yen)
Fiscal year ended
March 31, 2022
AmountFiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%Public Works

72,73527.8

57,043

21.7(15,691)(21.6)

Private Works

188,67772.0

204,62878.0

15,951

8.5

Overseas

487

0.2

621

0.2

134

27.6

Total

261,900

100.0

262,293

100.0

393

0.2

2. Net Sales(Millions of yen)
Fiscal year ended
March 31, 2022
AmountFiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%Public Works

37,53317.2

34,62215.9(2,910)(7.8)

Private Works

180,891

82.8

181,745

83.7

853

0.5

Overseas

138

0.1

865

0.4

726

523.0

Total

218,563100.0

217,233

100.0(1,330)(0.6)

3. Backlog(Millions of yen)
Fiscal year ended
March 31, 2022
AmountFiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%Public Works

79,241

20.1

101,66223.1

22,42028.3

Private Works

315,29779.8

338,18076.9

22,883

7.3

Overseas

359

0.1

115

0.0

(243)

(67.8)

Total

394,898

100.0

439,958

100.0

45,06011.4(Note) Net sales include inter-segment transactions.

(2) (Civil Engineering Segment) Classified by Public and Private: Orders Received, Net Sales and Backlog
1. Orders Received(Millions of yen)
Fiscal year ended
March 31, 2022
AmountFiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%Public Works

62,504

38.7

67,071

63.0

4,566

7.3

Private Works

97,39760.3

39,37737.0(58,020)(59.6)

Overseas

1,645

1.0

28

0.0

(1,616)(98.3)

Total

161,548100.0

106,477100.0(55,070)(34.1)

2. Net Sales(Millions of yen)
Fiscal year ended
March 31, 2022
AmountFiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%Public Works

76,741

53.8

79,211

52.3

Private Works

64,13445.0

72,102

47.6

7,967

12.4

Overseas

1,751

1.2

102

0.1

(1,648)(94.1)

Total

142,627100.0

151,417

100.0

8,789

6.2

35

2,470

3.2

3. Backlog(Millions of yen)
Fiscal year ended
March 31, 2022
AmountFiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%Public Works

145,65445.0

133,51347.9(12,140)(8.3)

Private Works

177,26454.8

144,53951.9(32,725)(18.5)

Overseas

560

0.2

486

0.2

(74)

(13.2)

Total

323,479

100.0

278,539100.0(44,939)(13.9)(Note) Net sales include inter-segment transactions.

(3) (Road Civil Engineering Segment) Classified by Type: Orders Received, Net Sales and Backlog
1. Orders Received(Millions of yen)
Fiscal year ended
March 31, 2022
AmountPavement
Construction
Civil Engineering
Works
Manufacturing/Sales
Other
Total

Fiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%132,17956.1

146,28857.9

14,10910.7

29,886

12.7

28,783

11.4(1,102)(3.7)

72,88730.9

77,095

30.5

4,208

5.8

572

0.2

587

0.2

14

2.5

235,525100.0

252,755

100.0

17,2297.3

2. Net Sales(Millions of yen)
Fiscal year ended
March 31, 2022
AmountPavement
Construction
Civil Engineering
Works
Manufacturing/Sales
Other
Total

Fiscal year ended
March 31, 2023%

AmountYear-on-year change%

Amount%132,703

56.3

139,211

56.0

6,507

4.9

29,43612.5

31,767

12.8

2,331

7.9

72,88730.9

77,095

31.0

4,208

5.8

572

0.2

587

0.2

14

2.5

235,599

100.0

248,662100.0

13,062

5.5

3. Backlog(Millions of yen)
Fiscal year ended

Fiscal year ended

March 31, 2022

March 31, 2023

AmountPavement%

AmountYear-on-year change%

Amount%46,15478.2

53,231

84.3

7,077

15.3

12,900

21.8

9,916

15.7

(2,984)(23.1)

Manufacturing/Sales

–

–

–

–

–

–

Other

–

–

–

–

–

–

59,054100.0

63,147

100.0

4,093

6.9

Construction
Civil Engineering
Works

Total

(Note) Net sales include inter-segment transactions.

36

(4) Summary of Forecast of Consolidated Financial Results(Millions of yen)
Fiscal year ended March 31, 2023
Results for the Results for theprevious period current period
Net sales

Fiscal year ending March 31, 2024

YoY change

Full-year
forecast

YoY change

Rate of change

682,912709,641

26,728740,000

30,358

4.3%

Building Construction

216,102

215,465(637)

239,000

23,534

10.9%

Civil Engineering

142,639

152,032

9,393

155,000

2,967

2.0%

Road Civil Engineering

232,767

243,697

10,929243,000(697)(0.3)%

Machinery

35,322

37,3402,017

39,000

1,659

4.4%

Infrastructure Management

18,67322,506

3,833

24,000

1,493

6.6%

Other

37,40738,5981,190

40,000

1,401

3.6%

91,61098,124

6,513

103,000

4,875

13.4%

13.8%

0.4%

13.9%

0.1%

23,40323,725322

26,000

2,274

10.8%

11.0%

0.2%

10.9%

(0.1)%

26,03628,5452,508

27,000(1,545)

18.3%

18.8%

0.5%

17.4%

(1.4)%

22,462

24,107

1,645

28,300

4,192

9.7%

9.9%

0.2%

11.6%

1.8%

7,367

7,758

390

8,200

441

20.9%

20.8%

(0.1)%

21.0%

0.2%

7,583

10,090

2,506

9,200

(890)

40.6%

44.8%

4.2%

38.3%

(6.5)%

4,756

3,897

(859)

4,300

402

12.7%

10.1%

(2.6)%

10.8%

0.7%

Selling, general and administrative expenses

54,12057,6283,508

64,700

7,071

12.3%

Operating profit

37,48940,495

3,005

38,300(2,195)(5.4)%

Ordinary profit

38,036

41,768

3,732

39,200(2,568)(6.1)%

Profit26,68935,8709,181

25,200(10,670)(29.7)%

Gross profit

Building Construction

Civil Engineering

Road Civil Engineering

Machinery

Infrastructure Management
Other

5.0%

9.6%

(5.4)%

17.4%

5.7%

(8.8)%

10.3%(Notes) 1. Percentages in the lower row of gross profit indicate profit margin.
2. The full-year forecast for the fiscal year ending March 31, 2024 was calculated based on Japanese accounting standards.

37

(Reference) Maeda Corporation: Supplementary Information
1) Summary of non-consolidated financial results forecast(Millions of yen)
Fiscal year ending
March 31, 2024

Fiscal year ended
March 31, 2023
Results for theprevious period

Results for thecurrent period

365,772

375,875

10,102

Construction Total

358,322366,795

Building
Construction
Civil
Engineering
InfrastructureManagement

216,842

Full-year forecast
YoY change

Rate of change

401,700

25,824

6.9%

8,472

393,300

26,5047.2%

215,378(1,464)

238,300

22,921

10.6%

141,480

151,417

9,937

155,000

3,582

2.4%

4,580

7,224

2,643

6,700

(524)

(7.3) %

2,868

1,855

(1,013)

1,700

(155)

(8.4) %

54,136

58,911

4,774

59,700

788

14.8%

15.7%

0.9%

14.9%

(0.8)%

48,01150,824

2,812

52,200

1,375

13.4%

13.9%

0.5%

13.3%

(0.6) %

22,662

22,909247

25,200

2,290

10.5%

10.6%

0.2%

10.6%

(0.1) %

25,34927,9142,565

27,000

(914)

17.9%

18.4%

0.5%

17.4%

(1.0) %

4,536

7,185

2,649

6,700

(485)

99.0%

99.5%

0.4%

100.0%

0.5%

1,589

900

(688)

800

(100)

55.4%

48.6%

(6.8) %

47.1%

(1.5) %

Selling, general and administrative
expenses

26,81629,001

2,185

33,000

3,998

13.8%

Operating profit

27,32029,9102,589

26,700(3,210)(10.7) %Ordinary profit

35,19432,273(2,921)

28,600(3,673)(11.4) %Profit

28,51230,206

1,694

22,500(7,706)(25.5) %Net sales

Real Estate
Gross profit

Construction Total
Building
Construction
Civil
Engineering
InfrastructureManagement
Real Estate

YoY change(Note) The percentages in the lower row of Gross profit indicate the profit margin.
2) Non-consolidated forecast of orders received for the construction business(Millions of yen)
Fiscal year ending

Fiscal year ended

March 31, 2024

March 31, 2023

Full-year forecast

YoY change(%)

Results for thecurrent period

YoY change(%)

Building Construction

280,000

7.5

260,471

0.1

Civil Engineering

163,000

53.1

106,477(33.6)

Total

443,000

20.7

366,949(12.7)

38

1.3%

2.7%

10.0%

(3.3) %

(6.8) %

(11.2) %