Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Nine Months Ended December 31, 2021
[Japanese GAAP]
February 14, 2022
Company name:NIPPON CONCRETE INDUSTRIES CO., LTD.
Stock exchange listing: Tokyo
Code number:
5269
URL:
https://www.ncic.co.jp/
Representative:
TSUKAMOTO Hiroshi,
Representative Director and President
Contact:
IMAI Shoichi,
Director and Managing Executive Officer
Phone:
03-3452-1025
Scheduled date of filing quarterly securities report:
February 14, 2022
Scheduled date of commencing dividend payments:
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session:
No(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Nine months ended
December 31, 2021
34,830(2.2)
1,062(48.3)
1,452(41.1)
1,190(16.1)
December 31, 2020
35,624
4.6
2,056
2,467
1,418
(Note) Comprehensive income:Nine months ended December 31, 2021:¥
72 million [(96.2) %]Nine months ended December 31, 2020:¥
1,925 million [-%]Basic earnings
per share
Nine months ended
December 31, 2021
December 31, 2020

Diluted earnings per
share
Yen

Yen

21.15
25.26

-

(2) Consolidated Financial Position
Total assets
Million yen
As ofDecember 31, 2021
76,936
March 31, 2021
74,825(Reference) Equity: As of December 31, 2021:
As of March 31, 2021:

Net assets

Capital adequacy ratio

Million yen¥¥

39,64639,38436,864 million
37,539 million

%

47.9
50.2

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

-

2.50

-

6.50

9.00

Fiscal year ending March 31, 2022

-

4.50

4.50

9.00

Year-end

Fiscal year ending March 31, 2022
(Forecast)(Note) Revision to the forecast for dividends announced most recently:
No(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending March 31, 2022 :Commemorative dividend- yenSpecial dividend
- yen

Total

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share%

Million yen%

Million yen%

Yen

Full year
51,0004.3
1,600 (41.7)(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

1,800
No

(43.4)

1,450(22.5)

25.73* Notes:(1) Changes in significant subsidiaries during the nine months ended December 31, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):
Yes
New
1
(Company name: Tohoku Pole Co., Ltd.
Exclusion:(Company name:(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:))
No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2021:
57,777,432 shares
March 31, 2021:
57,777,432 shares2) Total number of treasury shares at the end of the period:
December 31, 2021:
1,547,689 shares
March 31, 2021:
1,359,228 shares
3) Average number of shares during the period:
Nine months ended December 31, 2021:
Nine months ended December 31, 2020:

56,266,992 shares
56,156,847 shares* Quarterly financial results are not required to be subjected to quarterly reviews.
* Explanation for appropriate use of financial forecasts and other special notes.
The forecasts given in this document are based on the current available information in the company and certain reasonableassumptions to the company. Actual results may differ from these forecasts by a variety of reasons.

Table of contents

1. Qualitative Information on Quarterly Financial Results for the Period under Review ····························· 2(1) Explanation of Business Results ························································································ 2(2) Explanation of Financial Position ······················································································ 4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ·········· 4
2. Quarterly Consolidated Financial Statements and Primary Notes ···················································· 5(1) Quarterly Consolidated Balance Sheets ··············································································· 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ····································· 7
Quarterly Consolidated Statements of Income ········································································ 7
Quarterly Consolidated Statements of Comprehensive Income ···················································· 8(3) Notes to Quarterly Consolidated Financial Statements ······························································ 9(Notes on Going Concern Assumption) ················································································ 9(Notes in the Case of Significant Changes in the Amount of Shareholders’ Equity) ···························· 9(Changes in Accounting Policies) ······················································································ 9(Significant Changes in Subsidiaries in the Nine Months Ended December 31, 2021) ························· 10(Additional Information) ································································································· 11(Segment Information, etc.) ····························································································· 12(Matters Related to Revenue Recognition) ············································································ 13(Significant Events after Reporting Period) ··········································································· 13

11. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Business Results
In the nine months ended December 31, 2021, the Japanese economy saw a gradual recovery in economic activity,
as the number of new COVID-19 cases decreased thanks in part to progress in vaccinations against the infection.
However, there was a stagnation in the procurement of parts due to the shortage of semiconductors and soaring raw
material prices. In addition, due to concerns of a resurgence of the COVID-19 pandemic caused by the variants, theeconomic outlook remains uncertain.
Regarding the business environment in which the Group operates, the demand for concrete piles across Japan
during the nine months ended December 31, 2021 remained at the same level as in the same period of the previous
year. Whereas the shipments of concrete poles throughout Japan also remained flat compared to the same period of
the previous year, the demand for poles for mobile phone base stations remained robust, continuing from theprevious period. Furthermore, demand is growing for concrete products that contribute to the development of newbase stations for 5G mobile phones, as well as for concrete products that help prevent and mitigate disasters,
reinforce national resilience, and are used in disaster recovery (such as precast concrete walls, which are theCompany’s proprietary products). Demand for slope reinforcement works also remained strong. In addition, theenvironmental technology for carbon capture developed by the Company and its usage (CCUS - carbon dioxide
capture, utilization and storage) as well as low-carbon type concrete products attracted growing attention.
In these circumstances, under the corporate philosophy: “We contribute to a safe, secure, and affluent society
through concrete,” the Group set a medium- to long-term vision under the 2021 Medium-Term Management Plan
formulated in August last year: “Protect social infrastructure and the global environment far into the future,” and a
medium-term policy: “Contribute to reinforcement of national resilience and the global environment by boosting
competitiveness and expanding business through promotion of Group management.” The Group has been working
on measures to achieve the target sales of 64,000 million yen and ordinary profit of 4,200 million yen in FY2023.
In July last year, the Company made Tohoku Pole Co., Ltd. a subsidiary and is working to strengthen Groupmanagement.
Regarding the situation of the Group’s overall business, orders have been recovering in the Foundation Businessmainly in civil engineering works. In addition, in the Civil Engineering Product Business, Free Kogyo Co., Ltd,
which is engaged in slope reinforcement works as its main business, performed well, and plant utilization rates are
increasing with trends such as the launch of production of the RC segment for Linear Chuo Shinkansen. In the
Pole-related Business, while shipments of poles for mobile phone base stations continued to remain robust, there
are concerns of a slowdown due to a semiconductor shortage. In terms of profits, we have started to respond to therise in raw material prices and are working to secure profits.
As for the Group’s revenue, net sales for the nine months ended December 31, 2021 were 34,830 million yen(down 2.2% year-on-year), operating profit was 1,062 million yen (down 48.3% year-on-year), ordinary profit was
1,452 million yen (down 41.1% year-on-year), and profit attributable to owners of parent was 1,190 million yen(down 16.1% year-on-year).
The impact of the COVID-19 pandemic on the Group has been insignificant so far.
Trends by business segment are as follows.
1) Foundation Business
The demand across Japan for concrete piles during the nine months ended December 31, 2021 remained flatcompared to the same period of the previous year. While the Group has seen business pick up from the first half,when there was a decrease in orders received for large-scale projects, reflecting severe competition for orders, net
sales were 14,330 million yen (down 19.1% year- on-year).
2

As for the profit, a segment income of 121 million yen (down 85.3% year-on-year) was recorded, affected by adecline in plant utilization rates in addition to lower sales.
In this business, we are taking steps to improve plant utilization rates by focusing on securing orders such as largescale projects. By strengthening construction management and promoting the development of technologies, we arealso working to sharpen competitiveness and further improve customer satisfaction. Moreover, we are aiming torelease our unique G (green)-ONA pile this year, which can reduce CO2 emissions by approximately 40% over our
existing product, as part of efforts to expand sales of environment-friendly piles.
2) Concrete Secondary Product BusinessIn the Pole-related Business, which is part of the Concrete Secondary Product Business, while the demand for
concrete poles across Japan remained flat, the Group’s shipment of poles for mobile phone base stations continued
to be robust, with net sales of 12,672 million yen (up 31.1% year-on-year).
In terms of the Civil Engineering Product Business, notwithstanding the robust performance of Free Kogyo, which
undertakes slope reinforcement works, net sales were 7,598 million yen (down 5.2% year-on-year) as sales of the
RC segment are to be recorded later than expected and because of delays in the start of construction works forprecast concrete walls as well.
As a result, net sales for the Concrete Secondary Product Business were 20,271 million yen (up 14.7% year-onyear).
As for the profit, although we ensured growth from pole shipments and Free Kogyo performed well, sales of civilengineering products such as precast concrete walls were slow, with segment income of 2,159 million yen (down
9.0% year-on-year).
Regarding our ongoing efforts in each business, in the Pole-related Business, while responding to a steady numberof inquiries about COP (cap on poles), our proprietary fit-in concrete flange poles, we are working to expand thesales of poles for mobile phone base stations, including additional stations with a view to 5G network rollouts. We
will also push forward with our efforts to win orders including those for pole maintenance and the construction ofpoles to further boost our earnings.
In the Civil Engineering Product Business, we receive many inquiries about our precast concrete walls for faster
construction and less manpower and slope reinforcement works for flood control, following the increasing demand
for greater national resilience as well as preventing and mitigating disasters. Accordingly, we are working
intensively to win even more orders with an enhanced sales structure including extended sales areas and to expand
sales by incorporating our products into designs. In the Segment Business, as well as promoting steady production
for the Linear Chuo Shinkansen and striving to cut manufacturing costs, we are working to win orders for largescale projects such as construction of underground regulating reservoirs in urban areas.
3) Real Estate and Solar Power Generation BusinessIn the Real Estate and Solar Power Generation Business, net sales were 228 million yen (up 0.6% year-on-year)
and segment income was 132 million yen (up 0.3% year-on-year).
As for the Environment Business, to meet the target of cutting CO2 emissions by approx. 6,000 tons (equivalent toaround 30% of the Group’s total emissions) in FY2023 set under the Medium-Term Management Plan, besides theabovementioned G-ONA pile, we are vigorously promoting various initiatives, including a joint research projectwith leading general contractors and incorporated administrative agencies to develop eco-friendly products andexpand sales channels. Furthermore, we are also working on pole recycling and urban infrastructure redevelopment
to contribute to the establishment of a recycling-oriented society. In addition, we address the Myanmar businessproperly while keeping a close watch on the local political situation.
In view of the current business environment and conditions described above, each of the Group’s businesses will
make proactive efforts to win orders and expand sales. At the same time, while adapting swiftly to changes in thebusiness environment, we will continue to reduce costs and focus on enhancing earning power.
3

In December last year, we announced that we would set a target amount for the sale of cross-shareholdings during
the period of the 2021 Medium-Term Management Plan (FY2021 to FY2023), with the aim of strengthening our
ESG investments and investments in growth areas. In addition, we announced the repurchase of treasury sharesusing a portion of the proceeds from the sale of cross-shareholdings in order to return profits to our shareholders.
The Group will continue to play a role in strengthening social infrastructure and contribute to society by offering
technology and product lines that reduce environmental impacts. In addition, we will continue our efforts toenhance corporate value through sustainable growth by exploiting Group synergy.
(Note) Net sales and other figures do not include consumption and other taxes.
(2) Explanation of Financial Position
The Group’s financial policies are to reduce total assets so as to improve ROA through measures such as earlycollection of accounts receivable, optimization of product inventories, and efficient capital investment strategies;
and to reduce interest-bearing debts by improving the efficiency of the Group’s funds and assets.
Total assets at the end of the third quarter of the fiscal year under review were 76,936 million yen, up 2,111
million yen from the end of the previous fiscal year.
Current assets were 33,211 million yen, up 1,346 million yen from the end of the previous fiscal year, and noncurrent assets were 43,725 million yen, up 765 million yen from the end of the previous fiscal year.
The increase in current assets was mainly due to an increase in notes and accounts receivable - trade, and contract
assets, and the increase in non-current assets was mainly due to an increase in property, plant and equipment.
Total liabilities were 37,290 million yen, up 1,849 million yen from the end of the previous fiscal year.
Current liabilities were 27,802 million yen, up 3,004 million yen from the end of the previous fiscal year, and noncurrent liabilities were 9,487 million yen, down 1,155 million yen from the end of the previous fiscal year.
The increase in current liabilities was mainly due to an increase in short-term borrowings, and the decrease in noncurrent liabilities was mainly due to a decrease in long-term borrowings.
Total net assets were 39,646 million yen, up 262 million yen from the end of the previous fiscal year.
It was mainly due to an increase in retained earnings.
As a result of the above, the equity ratio was 47.9%, down from 50.2% at the end of the previous consolidated
fiscal year.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
There is no change in the consolidated financial results forecast for the fiscal year ending March 31, 2022
announced on November 12, 2021.

42. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousand yen)
As of March 31,2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Expenditure on contracts in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of December 31,2021

8,804,311
11,965,519

7,473,508--

12,337,293

2,521,131

1,799,041

4,608,488
387,742
1,367,942
1,222,707
1,023,371(36,522)
31,864,693

1,000,000
6,693,050
463,043
1,789,682
260,038
1,425,914(30,467)
33,211,104

16,453,797
9,114,099
25,567,897
399,997

17,236,806
10,163,496
27,400,303
440,177

13,781,673
3,452,086(241,129)
16,992,630
42,960,524
74,825,217

12,480,897
3,636,864(232,549)
15,885,212
43,725,693
76,936,798

(Thousand yen)
As of March 31,2021
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Revaluation reserve for land
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

6

As of December 31,2021

4,939,989
6,824,886
4,050,000
3,408,008
936,707610,661
4,027,869
24,798,122

6,196,689
7,722,095
7,000,024
3,000,738
134,795
402,3073,346,020
27,802,670

4,500
3,577,548
688,257
6,372,725
10,643,031
35,441,153

1,000
2,235,873
1,204,693
6,046,123
9,487,690
37,290,361

5,111,583
3,850,779
18,900,629(443,433)
27,419,559

5,111,583
3,894,568
19,494,163(533,165)
27,967,150

4,628,464

3,660,199

5,312,368(42,293)
221,127
10,119,665
1,844,839
39,384,064
74,825,217

5,312,368(234,480)
159,047
8,897,135
2,782,150
39,646,436
76,936,798

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the nine months)(Thousand yen)
For the nine months
ended December 31,2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss from suspension of plant operations assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Restructuring cost of production base
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

For the nine months
ended December 31,2021

35,624,362
29,331,480
6,292,881
4,236,165
2,056,716

34,830,087
28,876,895
5,953,192
4,890,355
1,062,837

9,274
193,074

6,730
198,816

218,735

175,869

91,677
512,761

127,480
508,897

38,94463,280102,225
2,467,253

40,174
26,15052,789119,114
1,452,620

2,167
2,167

299
164,036433,716
598,052

16,851
54,912
71,763
2,397,657
680,703
144,659825,362
1,572,294
154,006
1,418,288

4,800
26,741
31,541
2,019,132
465,423
228,289
693,713
1,325,419
135,259
1,190,159

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)(Thousand yen)
For the nine months
ended December 31,2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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 ofparentComprehensive income attributable to non-controllinginterests

8

For the nine months
ended December 31,2021

1,572,294

1,325,419

379,748(6,164)(43,683)(971,151)(220,054)(62,079)

23,218170

353,119
1,925,414(1,253,114)
72,304

1,770,731(32,370)

154,682

104,675

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
There is no relevant information.
(Notes in the Case of Significant Changes in the Amount of Shareholders’ Equity)
For the nine months ended December 31, 2020
1. Dividends paid
amount ofDividend
Types of Total
Resolution
dividends
paid
per share
Record date Effective dateshares(Thousand yen)
(Yen)
November 12, 2020 Common
30, December 1,
Board of Directors’
141,646
2.50 September
shares2020
2020
Meeting

Source ofdividends
Retainedearnings(Note) The total amount of dividends based on the resolution of the Board of Directors’ Meeting held on
November 12, 2020 includes dividend of 141 thousand yen for the Board Incentive Plan Trust (BIP) anddividend of 159 thousand yen for the Stock Granting Trust (J-ESOP).
2. Dividends with a record date in the nine months ended December 31, 2020 but with an effective date after theend of the period
There is no relevant information.
3. Significant changes in shareholders’ equity
There is no relevant information.
For the nine months ended December 31, 2021
1. Dividends paid
amount ofTypes of Total
Resolution
dividends paid
shares(Thousand yen)
June 4, 2021
CommonBoard of Directors’
368,280sharesMeetingNovember 12, 2021 Common
Board of Directors’
254,963
sharesMeeting

Dividend
per share(Yen)

Record date Effective date

Source ofdividends

March 31,2021

June 15, 2021

Retainedearnings

30, December 1,
4.50 September
2021
2021

Retainedearnings

6.50(Note) The total amount of dividends based on the resolution of the Board of Directors’ Meeting held on
November 12, 2021 includes dividend of 627 thousand yen for the Board Incentive Plan Trust (BIP) anddividend of 496 thousand yen for the Stock Granting Trust (J-ESOP).
2. Dividends with a record date in the nine months ended December 31, 2021 but with an effective date after theend of the period
There is no relevant information.
3. Significant changes in shareholders’ equity
There is no relevant information.
(Changes in Accounting Policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
Effective from the beginning of the first quarter of the fiscal year under review, the Company has applied the“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafterreferred to as “Revenue Recognition Accounting Standard”), etc. and recognizes the amount expected to bereceived in exchange for goods or services as revenue when the control of the promised goods or services has
been transferred to a customer.

9Accordingly, regarding construction contracts, the Company previously recognized revenue based on thepercentage-of-completion method for contracts for which results are deemed certain in terms of the portion
completed by the end of the quarterly period under review. However, in the case of goods or services whose
control will be transferred to a customer over a period of time, the Company has changed the method andrecognizes revenue over a period of time in line with the satisfaction of performance obligations to transfer
goods or services to a customer. The degree of progress toward satisfaction of performance obligations ismeasured by the ratio of the construction cost actually incurred by the end of the quarterly period under review
to the estimated total construction cost. If it is not possible to reasonably estimate the degree of progress towardsatisfaction of performance obligations at the end of the quarterly period under review but it is probable that theconstruction cost incurred when the performance obligations are satisfied will be recovered, the Company
recognizes revenue based on the cost recovery method until it becomes possible to reasonably estimate thedegree of progress toward satisfaction of performance obligations. The Company applies alternative treatment
if the period from the time when a transaction is commenced to the point in time at which performanceobligations are expected to be fully satisfied is very short, and does not recognize revenue over a period of time
but recognizes revenue at the point in time when the Company fully satisfies performance obligations.
For application of the Revenue Recognition Accounting Standard, etc., the Company has followed thetransitional treatment, which is stipulated in the proviso of Paragraph 84 of the Revenue Recognition
Accounting Standard. Accordingly, the cumulative effect of retrospective application of the new accounting
policy before the beginning of the first quarter of the fiscal year under review has been added to or deductedfrom retained earnings at the beginning of the first quarter of the fiscal year under review and thus the new
accounting policy has been applied from the beginning of the first quarter of the fiscal year under review.
As a result, net sales and cost of sales for the nine months ended December 31, 2021 decreased 368,867
thousand yen and 357,061 thousand yen, respectively, operating profit decreased 11,805 thousand yen, andordinary profit and profit before income taxes decreased 11,805 thousand yen, respectively. The beginningbalance of retained earnings increased 25,294 thousand yen.
As a result of the application of the Revenue Recognition Accounting Standard, etc., “notes and accounts
receivable - trade,” which was presented under “current assets” in the consolidated balance sheet for theprevious fiscal year, has been included in “notes and accounts receivable - trade, and contract assets” from thefirst quarter of the fiscal year under review. In accordance with the transitional treatment stipulated in
Paragraph 89-2 of the Revenue Recognition Accounting Standard, reclassification based on the newpresentation method has not been made for the previous fiscal year. Moreover, in accordance with thetransitional treatment stipulated in Paragraph 28-15 of the “Accounting Standard for Quarterly Financial
Reporting” (ASBJ Statement No. 12, March 31, 2020), information on the breakdown of revenue arising fromcontracts with customers for the nine months ended December 31, 2020 is not presented.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
Effective from the beginning of the first quarter of the fiscal year under review, the Company has applied the“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter referred
to as “Fair Value Measurement Accounting Standard”), etc. and has applied the new accounting policy
established by the Fair Value Measurement Accounting Standard, etc. and will apply it in the future as well, in
accordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement
Accounting Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). There has been no impact on the quarterly consolidated financial statements.
(Significant Changes in Subsidiaries in the Nine Months Ended December 31, 2021)
As the Company acquired shares in Tohoku Pole Co., Ltd. and made it a subsidiary on July 30, 2021, it isincluded in the scope of consolidation from the second quarter of the fiscal year under review.

10(Additional Information)(A transaction in which the Company’s shares are delivered to its employees, etc. through a trust)(1) Summary of the transaction
As for the Board Incentive Plan Trust (hereinafter referred to as the “BIP Trust”) and the Stock
Granting Trust (J-ESOP) (hereinafter referred to as the “J-ESOP Trust”) introduced in August 2015, theCompany resolved at the Board of Directors’ Meeting held on August 11, 2021 to continue the BIP Trustand the J- ESOP Trust for a new three-year fiscal period (from the fiscal year ending March 31, 2022 to
the fiscal year ending March 31, 2024) and reintroduced them by entering into an agreement to extend
their terms, for the purpose of increasing motivation to improve the Company’s medium- to long- term
performance and raising awareness toward the contribution to an increase in shareholder value.
(2) The Company’s shares remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury shares in net assets at their bookvalue (excluding incidental expenses) in the trust. The book value and the number of shares of thetreasury shares at the end of the third quarter of the fiscal year under review are 44,617 thousand yen and
139,497 shares for the BIP Trust, and 35,940 thousand yen and 110,310 shares for the J-ESOP Trust.

11

(Segment Information, etc.)[Segment Information]
I. For the nine months ended December 31, 2020
1. Information on net sales and income by reportable segment

Foundation
Business
Net sales
Net sales to outside 17,718,038
customers
Inter-segment net
8,232
sales or transfers
17,726,271
Total
Segment income

825,995

Reportable segment
Real Estate
Concreteand Solar
SecondaryPower
Product
Generation
Business
Business

Total

Adjustment(Note 1)(Thousand yen)Amounts
recorded in thequarterly
consolidated
statements ofincome(Note 2)–35,624,362

8,232(8,232)–

17,679,343

226,979 35,632,594(8,232)35,624,362

2,374,214

132,498

3,332,708 (1,275,991)

2,056,716

17,679,343

226,979 35,624,362––(Notes) 1. The adjustment for segment income mainly includes corporate expenses. Corporate expenses mainly
include general and administrative expenses, not attributed to reportable segments.
2. Segment income is adjusted to the operating profit in the quarterly consolidated statements of income.
2. Information on impairment losses of non-current assets and goodwill by reportable segment
There is no relevant information.
II. For the nine months ended December 31, 2021
1. Information on net sales and income by reportable segment

Foundation
Business
Net sales
Net sales to outside 14,330,611
customers
Inter-segment net
5,481
sales or transfers
14,336,093
Total
Segment income

121,183

Reportable segment
Real Estate
Concreteand Solar
SecondaryPower
Product
Generation
Business
Business

Total

Adjustment(Note 1)(Thousand yen)Amounts
recorded in thequarterly
consolidated
statements ofincome(Note 2)–

34,830,087

5,481(5,481)–

20,271,102

228,373 34,835,569(5,481)

34,830,087

2,159,689

132,927

2,413,799 (1,350,962)

1,062,837

20,271,102

228,373 34,830,087––(Notes) 1. The adjustment for segment income mainly includes corporate expenses. Corporate expenses mainly
include general and administrative expenses, not attributed to reportable segments.
2. Segment income is adjusted to the operating profit in the quarterly consolidated statements of income.
2. Information on impairment losses of non-current assets and goodwill by reportable segment(Significant impairment losses pertaining to non-current assets)
In the Foundation Business segment, the Company reduced the book value of assets held for sale to theirrecoverable value. The amount of the said impairment loss reported during the nine months ended December
31 2021 was 26,741 thousand yen.

12

(Matters Related to Revenue Recognition)
Information on the breakdown of revenue arising from contracts with customers
For the nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021)(Thousand yen)Foundation
Business

Concrete
Secondary
Product Business

Product sales
2,153,087
18,216,405
Construction contract
12,152,143
2,044,897
sales
Other sales
10,070
9,798
Revenue from contracts
14,315,300
20,271,102
with customers
Other revenue (Note)
15,311–
Net sales to outside
14,330,611
20,271,102
customers(Note) Other revenue includes revenue from real estate leasing.
(Significant Events after Reporting Period)
There is no relevant information.

13

Real Estate andSolar Power
Generation
Business

Total–

20,369,492–

14,197,040

57,70577,57457,70534,644,107

170,668

185,980

228,373

34,830,087