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

Summary of Consolidated Financial Results
for the Year Ended March 31, 2020
(Based on Japanese GAAP)May 14, 2020
Company name:

KYOWA EXEO CORPORATION

Stock exchange listing: Tokyo
Stock code:
1951

URL

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

Representative:

President and CEO
Director and Managing Operating

Tetsuya Funabashi

Inquiries:

Officer,General Manager,Accounts &Hideo Higuchi

TEL

03-5778-1105

Finance Division
June 24, 2020
June 24, 2020

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:
Preparation of supplementary material on financial results:

June 25, 2020
Yes

Holding of financial results meeting:Yes

Scheduled date to commence dividend payments:(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
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%
Year ended March 31, 2020
524,574
23.8
31,100(1.9)
30,669(8.3)
15,603(61.2)
Year ended March 31, 2019423,72735.5
31,71623.8
33,431
26.4
40,219 123.5
Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
139.485.9
7.1
5.9
388.92
18.3
9.9
7.5

Diluted earnings per
share

Earnings per share
Yen
139.75390.25

Year ended March 31, 2020
Year ended March 31, 2019(2) Consolidated financial position

Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
444,905
416,483

Millions of yen
270,109267,811

Cash flows fromoperating activities
Millions of yen
17,29912,770Cash flows frominvesting activities
Millions of yen(17,085)(17,609)

Net assets per share
%
59.9
63.4

Yen
2,395.16
2,343.43(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
4,227
46,012(4,924)
41,4692. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

32.00
40.00

–
–

38.00
40.00

70.00
80.00

7,318
8,972

17.9
57.2

3.3
3.4

–

41.00

–

41.00

82.00

1

43.4

3. Forecast of consolidated financial results for the year ending March 31, 2021 (from April 1, 2020 to March 31, 2021)
Net sales
Full year

Millions of yen
525,000

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
0.1
32,0002.9
33,0007.6
21,10035.2
189.12

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2020

117,812,419 shares As of March 31, 2019

117,812,419 shares

Number of treasury shares at the end of the period
As of March 31, 2020

6,566,121 shares As of March 31, 2019

5,201,053 shares

111,652,764 shares Year ended March 31, 2019

103,061,286 shares

Average number of shares during the period
Year ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

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

41,80547,550156,361

166,098

895

898

38,401
4,403

42,542
7,013

(158)

(94)

241,708

264,00931,60334,447

8,738
55,403

11,81858,654Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, vehicles, tools, furniture and fixtures, net
Land
Other, net

2,209

2,757

Total property, plant and equipment

97,955

107,677

Goodwill
Other

10,259
4,502

7,640
5,136

Total intangible assets

14,762

12,777

Investments and other assets
Investment securities

37,91734,721Retirement benefit asset
Other

16,283
8,341

17,059
9,096

(485)

(436)

Intangible assets

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

362,05660,440174,774

180,895

416,483

444,905

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts

59,26560,037

Short-term borrowings
Income taxes payable

13,069
7,498

6,817
7,863

Advances received on construction contracts in progress
Provision for bonuses

5,487
3,744

9,762
4,559

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

420
86

478
130

Provision for loss on construction contracts
Other

344
24,4892,610
25,872

Total current liabilities

114,406

118,132

10,00030,000

4,659
6,965

8,965
5,681

604

750

9,283
2,753

8,436
2,828

Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities

34,26556,662

148,671

174,795

Shareholders' equity
Share capital

6,888

6,888

Capital surplus
Retained earnings

47,868204,647

49,604
211,195

Total liabilities
Net assets

Treasury shares(6,534)(11,795)

Total shareholders' equity

252,870

255,893

4,603
(65)

4,210
193

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

6,488

6,156

Total accumulated other comprehensive income

11,026

10,559

Share acquisition rights

355

318

Non-controlling interests

3,559

3,337

267,811

270,109416,483

444,905

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Net sales of completed construction contracts

423,727

524,574

Cost of sales of completed construction contracts

365,389456,247

Gross profit on completed construction contracts

58,33768,327

Selling, general and administrative expenses

26,62037,226

Operating profit

31,716

31,100

16

36

537
295

749
415

Other

1,618

875

Total non-operating income

2,468

2,076

Interest expenses
Impairment loss

48
135

208
411

Loss on valuation of investment securities
Foreign exchange losses

106
–

425
522

Other

463

938

Non-operating income
Interest income
Dividend income
Rental income from land and buildings

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities

753

2,507

33,431

30,669–658

Gain on bargain purchase

18,313–

Total extraordinary income

18,313

658

Goodwill amortization
Goodwill impairment loss

126
–

–
4,473

Total extraordinary losses

126

4,473

Profit before income taxes

51,617

26,854

Income taxes - current
Income taxes - deferred

11,943(658)

11,438(240)

Total income taxes

11,284

11,198

Profit40,333

15,656113

53

40,21915,603Extraordinary losses

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

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
40,333

15,656

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

(625)
(92)

(394)
265

Remeasurements of defined benefit plans, net of tax(2,193)(332)(2,911)(461)

Comprehensive income

Total other comprehensive income

37,421

15,195Comprehensive income attributable toComprehensive income attributable to owners of parent

37,354

15,137

67

58

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,888

Retained earnings

8,098

169,883

Treasury shares(23,187)

Total shareholders'equity161,682

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

Profit attributable to ownersof parent

40,21940,219Purchase of treasury shares
Disposal of treasury shares

123(3,015)(3,015)277

400

Recieve of treasury shares via
trust

–

Transfer of treasury shares via
trust
Changes in Stock exchange

39,639

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

685

685

19,86259,502(1,157)(1,157)(21)

Change in equity due toadditional acquisition of
consolidated subsidiary stock

(21)

7

7

Sales of shares of
consolidated subsidiaries–

Merger between consolidated
subsidiaries andunconsolidated subsidiaries–

Net changes in items otherthan shareholders' equity–

Total changes during period
Balance at end of period–

39,77034,764

16,653

91,187

6,888

47,868204,647(6,534)

252,8707

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

5,198

Foreigncurrencytranslation
adjustment

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

11

8,681

13,891

Share
acquisitionrights285

Non-controlling
Total net assetsinterests

242

176,101

Changes during period
Dividends of surplus(5,433)

Profit attributable to ownersof parent

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

Disposal of treasury shares

400

Recieve of treasury shares via
trust

–

Transfer of treasury shares via
trust

685

Changes in Stock exchange

59,502

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

Change in scope of
consolidation(21)

Change in equity due toadditional acquisition of
consolidated subsidiary stock

7

Sales of shares of
consolidated subsidiaries–

Merger between consolidated
subsidiaries andunconsolidated subsidiaries–

Net changes in items otherthan shareholders' equity

(594)

(76)

(2,193)(2,865)

70

3,317

522

Total changes during period

(594)

(76)

(2,193)(2,865)70

3,317

91,710

Balance at end of period

4,603

(65)

6,488

11,026355

3,559

267,8118

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

6,888

Retained earnings

47,868204,647

Treasury shares(6,534)

Total shareholders'equity252,870

Changes during period
Dividends of surplus(8,764)(8,764)

Profit attributable to ownersof parent

15,603

15,603Purchase of treasury shares(5,009)(5,009)

2,167

3,731

Recieve of treasury shares via
trust(3,079)(3,079)Transfer of treasury shares via
trust

659

659

Disposal of treasury shares

1,563

Changes in Stock exchange–

Increase in treasury stock due
to increase in consolidated
subsidiaries–

Change in scope of
consolidation

11

11

Change in equity due toadditional acquisition of
consolidated subsidiary stock

(2)

(2)

Sales of shares of
consolidated subsidiaries

174

174

Merger between consolidated
subsidiaries andunconsolidated subsidiaries

(302)

(302)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–
–

1,735

6,547

(5,261)

3,022

6,888

49,604

211,195(11,795)

255,8939Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

4,603

Foreigncurrencytranslation
adjustment
(65)

Total
accumulated
otherof defined benefit
comprehensive
plansincomeRemeasurements

6,488

11,026

Shareacquisitionrights355

Non-controlling
Total net assetsinterests

3,559

267,811

Changes during period
Dividends of surplus(8,764)

Profit attributable to ownersof parent

15,603Purchase of treasury shares(5,009)

Disposal of treasury shares

3,731

Recieve of treasury shares via
trust(3,079)Transfer of treasury shares via
trust

659

Changes in Stock exchange–

Increase in treasury stock due
to increase in consolidated
subsidiaries–

Change in scope of
consolidation

11

Change in equity due toadditional acquisition of
consolidated subsidiary stock(2)

Sales of shares of
consolidated subsidiaries

174

Merger between consolidated
subsidiaries andunconsolidated subsidiaries(302)

Net changes in items otherthan shareholders' equity

(392)

258

(331)

(466)

(36)

(221)

(724)

Total changes during period

(392)

258

(331)

(466)

(36)

(221)

2,298

Balance at end of period

4,210

193

6,156

10,559318

3,337

270,10910

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, 2019

March 31, 2020
51,617

26,854

Depreciation
Impairment loss

4,725
135

6,473
411

Goodwill impairment loss
Amortization of goodwill

–
1,201

4,473
1,987

(18,313)
50

(65)
(117)

419

715

28

44

(106)

2,266

Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in provision for loss on construction
contracts
Increase in Defined Benefit Asset or Liability(1,231)(2,233)

Interest and dividend income
Interest expenses

(554)
48

(785)
208

Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities

(588)
(67)

(19)
(480)

(28,202)(8,581)

701(3,517)(1,009)(2,916)

9,240

408

198

4,099

4,528

(1,474)

Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts inprogress
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in advances received on construction
contracts in progress
Increase (decrease) in other liabilities
Other, net

364

436

Subtotal

23,18728,188Interest and dividends received

552

786

Interest paid
Income taxes paid

(49)
(10,920)(170)(11,505)

Net cash provided by (used in) operating activities

12,77017,299(2,757)(12,693)698(1,079)810(1,827)(484)
233(1,587)
4,038(16,961)(5,083)

–

(128)

(358)
3,098

(125)
45

20
(20)

(184)
(350)

(17,609)(17,085)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Loan advances
Collection of loans receivable
Decrease (increase) in time deposits and other
Other, net
Net cash provided by (used in) investing activities

11

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

March 31, 2019

March 31, 2020
4,130

(6,821)

Proceeds from issuance of bonds
Repayments of long-term borrowings–(2,474)

19,904(2,609)Proceeds from long-term borrowings
Purchase of treasury shares

1,260(3,015)7,474(5,009)Proceeds from sales of treasury shares
Recieve of treasury shares via trust

339
–

3,620
(3,079)Transfer of treasury shares via trust
Dividends paid

685
(5,425)659(8,749)

–

(36)

(96)

(655)

Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Proceeds from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Other, net

–

287

(329)

(758)

Net cash provided by (used in) financing activities(4,924)4,227

Effect of exchange rate change on cash and cash equivalents

(113)

(18)

Net increase (decrease) in cash and cash equivalents(9,877)

4,422

Cash and cash equivalents at beginning of period

30,343

41,469

Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation

55

5

Increase in cash and cash equivalents resulting from merger ofconsolidated and non-consolidated subsidiaries–

114

Increase in cash and cash equivalents due to share exchange

20,948–Cash and cash equivalents at end of period

41,46946,01212