May 12, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
<Japanese GAAP>
Listed company:
SANKI ENGINEERING CO., LTD.
Listed stock exchange: Tokyo
Securities code:
1961
URL:
https://www.sanki.co.jp/
Representative:
Hirokazu Ishida, President and Representative Director
Contact:
Yoshio Kawabe, Director, Managing Executive Officer, General Manager of the Accounting
Division
TEL: +81-3-6367-7084
Scheduled date of annual general meeting of shareholders:June 23, 2023
Scheduled date to commence dividend payments:
June 26, 2023
Scheduled date to file annual securities report:
June 23, 2023
Preparation of explanatory materials for financial results: Yes
Holding of a briefing on financial results: Yes (for securities analysts and institutional investors)(Amounts of less than 1 million yen are truncated)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Consolidated operating results(% figures show year-on-year change)

Net sales

Operating profit

Fiscal year ended

Millions of yen

March 31, 2023

190,865

(1.2)

5,409

(40.6)March 31, 2022

193,189

1.6

9,112

21.5

(Note) Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen%

Millions of yen

%

6,247

(36.4)

4,750(26.8)

9,817

19.8

6,489

10.0

Fiscal year ended March 31, 2023: ¥ 3,626 million [(57.3%)]
Fiscal year ended March 31, 2022: ¥ 8,485 million [(22.3%)]

Profit per share

Profit per
share – diluted

Return on equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2023

85.80

85.50

5.1

3.5

2.8

March 31, 2022

115.13114.55

7.0

5.5

4.7

Net assets

Shareholders’ equity
ratio(2) Consolidated financial position
Total assets
As of

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2023

172,305

90,91352.6

1,666.36

March 31, 2022

183,609

94,27851.2

1,685.20(Reference) Shareholders’ equity: As of March 31, 2023: ¥90,714 million

As of March 31, 2022: ¥93,967 million

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2023

(10,584)(969)(8,327)

24,949March 31, 2022

18,529(3,384)(7,518)44,7792. Dividends
Annual dividends
Third
Fiscal yearquarter-end
end

Total cash
dividends(Total)Payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

%

%

First
quarter-end

Secondquarter-end

Fiscal year ended

Yen

Yen

Yen

Yen

Yen Millions of yen

March 31, 2022

－

35.00

－

50.00

85.00

4,773

73.8

5.2

March 31, 2023

－

35.00

－

40.00

75.00

4,132

87.4

4.5

Fiscal year
ending March
31, 2024(Forecast)

－

35.00

－

35.00

70.00

Total

71.9

(Note) Breakdown of end-FY3/22 dividend: Ordinary dividend ¥35; Extraordinary dividend ¥15
Breakdown of end-FY3/23 dividend: Ordinary dividend ¥35; Extraordinary dividend ¥5

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% figures show year-on-year change for the full year)
Net sales
Millions of yen
Full year

210,000

Operating profit% Millions of yen
10.0

7,500

Profit attributable toowners of parent

Ordinary profit% Millions of yen
38.6

8,000

% Millions of yen
28.1

5,300

Profitper share
%

Yen

11.6

97.36

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scopeof consolidation): None
New: (Company name:)
Excluded: (Company name:)(2) Changes in accounting policies and estimates, and retrospective restatements(i) Changes in accounting policies in accordance with revision of accounting standards: None(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(3) Number of shares issued (common stock)(i) Number of shares outstanding at the end of the period (including treasury shares)
As of March 31, 2023

58,161,156 shares

As of March 31, 2022

59,661,156 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

3,722,458 shares

As of March 31, 2022

3,900,458 shares(iii) Average number of shares during period
Fiscal year ended March 31, 2023

55,366,998 sharesFiscal year ended March 31, 2022

56,363,161 shares(Reference) Summary of non-consolidated financial results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results(% figures show year-on-year change)
Net sales

Operating profit

Fiscal year ended

Millions of yen% Millions of yen

March 31, 2023

169,116(2.6)

March 31, 2022

173,544

2.8

Ordinary profit

Profit%Millions of yen%

Millions of yen

%

3,510

(51.8)

5,624(41.8)

4,830(30.5)

7,288

39.0

9,656

24.0

6,952

10.9

Profit per
share – diluted

Profit per share
Fiscal year ended

Yen

Yen

March 31, 2023

87.25

86.95

March 31, 2022

123.36122.73(2) Non-consolidated financial position
Total assets
As ofShareholders’ equity
ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2023

157,705

81,57951.6

1,494.89

March 31, 2022

171,31085,29949.6

1,524.18(Reference) Shareholders’ equity: As of March 31, 2023: ¥81,380 million

As of March 31, 2022: ¥84,989 million

2. Forecast of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% figures show year-on-year change for the full year)
Net sales
Millions of yen
Full year

190,000

Operating profit% Millions of yen
12.3

5,500

Ordinary profit%

Millions of yen

56.7

7,500

Profitper share

Profit% Millions of yen
33.3

5,500

%

Yen

13.9

101.03* The summary of financial results is not subject to inspection by a certified public accountant or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements such as earnings forecasts contained in these materials are based on the information
available at the time they were prepared, and the actual results could differ from forecasts depending on a variety offactors. For matters related to the above earnings forecasts, please see the accompanying materials on p. 5 “1. Overview
of operating results and others, (4) Outlook.
Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced foryour convenience. Officially, only the Japanese version is assumed to be the summary of financial statements of theCompany. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage
stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese andEnglish versions, the Japanese version is assumed to be correct.

[Attached Materials]

Index
1. Overview of operating results and others................................................................................................................................2(1) Overview of operating results in the fiscal year under review .........................................................................................2(2) Overview of financial position in the fiscal year under review ........................................................................................3(3) Overview of cash flows in the fiscal year under review ...................................................................................................4(4) Outlook ............................................................................................................................................................................5
2. Management policy, operating environment, and issues to be addressed ..............................................................................5(1) Basic management policy ................................................................................................................................................5(2) Operating environment and issues to be addressed ..........................................................................................................7
3. Basic view on selection of accounting standards ..................................................................................................................9
4. Consolidated financial statements and related notes ............................................................................................................. 10(1) Consolidated balance sheets............................................................................................................................................. 10(2) Consolidated statements of income and comprehensive income ................................................................................... 12(3) Consolidated statement of changes in equity ................................................................................................................. 14(4) Consolidated statements of cash flows............................................................................................................................. 16(5) Notes on consolidated financial statements .................................................................................................................... 17(Notes on premise of going concern) ................................................................................................................................ 17(Changes in presentation method) .................................................................................................................................. 17(Segment information, etc.) .............................................................................................................................................. 18(Per share information) ................................................................................................................................................... 20(Important post balance sheet events) ............................................................................................................................. 20
5. Reference information ........................................................................................................................................................ 21
Results reference information (YoY comparison) ........................................................................................................... 21

1

1. Overview of operating results and others(1) Overview of operating results in the fiscal year under review
During the consolidated fiscal year under review, the Japanese economy experienced a moderate upturn amid the progressive normalization of socioeconomic activity with the gradual lifting of restrictions on activities due to COVID-19. However, the outlook remained
uncertain, with the risk of a downturn in business conditions associated with factors such as soaring global energy and raw material
prices and fears of a recession due to monetary tightening in the U.S. and countries in Europe.
With respect to construction investment, private-sector investment was strong, reflecting a rise in demand for capital investment bycompanies.
In this environment, in this first year of the four-year medium-term management plan “Century 2025” Phase 3, which is the final phaseof the long-term vision “Century 2025,” the Group strived to remain the enduring company of choice by continuing Phase 1 initiatives
focused on improving quality and Phase 2 efforts to enhance reliability, while also implementing new measures, including initiatives tocontribute to the sustainability of society, accelerate work-style reforms, and invest toward the next era. In addition, we continued
building a corporate structure that can flexibly respond to changes in the environment, while developing new technologies, strengthening
corporate governance, and achieving sustainable growth and increased corporate value over the medium to long term based on thoroughcompliance.
As a result, the Group’s business performance in the consolidated fiscal year under review was as follows.
(Millions of yen)
FY2021

FY2022

YoY change

YoY change(%)

Main factors behind YoYchangeOrders received

202,250

228,554

26,303

13.0%

Balance carried forward

150,737

188,426

37,68825.0%

Net sales

193,189

190,865(2,323)(1.2%)

Gross profit

30,22327,012(3,211)(10.6%)

15.6%

14.2%

(1.4%)

9,112

5,409

(3,703)

4.7%

2.8%

(1.9%)

9,817

6,247

(3,570)

5.1%

3.3%

(1.8%)

6,489

4,750

(1,738)

3.4%

2.5%

(0.9%)

Margin (%)
Operating profit
Margin (%)
Ordinary profit
Margin (%)
Profit attributable to ownersof parent
Margin (%)

As stated in the next
section, “Operating
results of major
segments”(40.6%)(36.4%)(26.8%)(Note) Profit margins are the rate of return on net sales.
<Operating results of major segments>〇Facilities Construction BusinessThis business includes HVAC and Plumbing for Buildings, Industrial HVAC (centered on air-conditioning systems for factories),
Electrical Systems and Facility Systems businesses, etc.
Orders received increased on the back of orders for large projects in HVAC and Plumbing for Buildings and Industrial HVAC. Net
sales were essentially unchanged from the same period of the previous year, while segment profit decreased, with the improvementin the profit margin of construction works not progressing due to a decrease in properties completed and sold, despite an improving
trend in profit upon the completion of construction.
(Millions of yen)
FY2021

FY2022

YoY change

YoY change (%)

34,304

21.4%

Orders received

160,504

194,809

Net sales

155,484

155,778

294

0.2%

8,825

5,497

(3,327)(37.7%)

Segment profit

2

〇Machinery Systems BusinessThis business mainly includes conveyance systems and manufacturing and sales business related to transportation equipment.
Orders received grew on the back of orders for large projects, but sales decreased due mainly to a decline in work carried forwardfrom FY2021, as well as less large-scale conveyance equipment work in FY2022, and segment loss deteriorated.
(Millions of yen)
FY2021

FY2022

YoY change

YoY change (%)

11,654

2,739

30.7%

Orders received

8,914

Net sales

9,666

7,661

(2,005)(20.7%)

Segment loss

(193)

(1,055)(862)－〇Environmental Systems BusinessThis business mainly includes operations related to water and sewage facilities and waste treatment facilities ordered bygovernment agencies.
Orders received declined, mainly due to a fallback from orders for large-scale maintenance work and waste treatment facilities in
FY2021. Net sales declined, but segment profit improved, mainly due to an overall improvement in the profitability of projects.
(Millions of yen)
FY2021

FY2022

YoY change

YoY change (%)

Orders received

30,64019,929(10,710)(35.0%)Net sales

25,842

25,200(642)(2.5%)

184

805

620

335.6%

Segment profit〇Real Estate BusinessThis business mainly includes leasing operations for real estate holdings and building management.
Tenant rental income increased, resulting in higher sales, but profit fell, mainly due to an increase in utilities expenses.
(Millions of yen)
FY2021

FY2022

YoY change

YoY change (%)

61

2.5%

Orders received

2,410

2,471

Net sales

2,410

2,471

61

2.5%

798

724

(74)

(9.3%)

Segment profit(2) Overview of financial position in the fiscal year under review(Millions of yen)
End-FY2021

End-FY2022

YoY change

YoY change(%)

125,742

115,512(10,230)(8.1%)

57,866

56,793(1,073)(1.9%)

183,609172,305(11,303)(6.2%)

79,21069,649(9,560)(12.1%)

10,121

11,742

1,620

Total
liabilities

89,331

81,392(7,939)Total net
assets

94,27890,913(3,364)Current
assetsNon-current
assetsTotal assets
Current
liabilities
Non-current
liabilities

3

Main factors behind YoY change
Cash and deposits decreased due to an
improvement in payment terms topartner companies

Electronically recorded obligations operating and accounts payable forconstruction contracts decreased due to
16.0%
an improvement in payment terms topartner companies, and short-term(8.9%) borrowings decreased due to therepayment of borrowings
The decrease resulted from a decrease inretained earnings due to the payment of(3.6%)
dividends, the purchase of treasury
shares(3) Overview of cash flows in the fiscal year under review(Millions of yen)
FY2021
Cash and cash equivalents at
beginning of period

FY202237,087

Cash flows from operating activities

Reasons for cash flow changes in FY2022

44,77918,529(10,584)

Mainly due to an increase in trade receivables, animprovement in payment terms to trading partners,
and the payment of income taxes.
Mainly due to the purchase of property, plant andequipment and intangible assets, which more thanoffset the sale of investment securities.

Cash flows from investing activities(3,384)(969)

Cash flows from financing activities(7,518)(8,327)

Effect of exchange rate changes oncash and cash equivalents, etc.

64

51

Cash and cash equivalents at end of
period44,77924,949Mainly due to dividend payments and the purchaseof treasury shares based on financial and capital
policies.

Trends in the Group’s cash flow indicators are shown below.
Fiscal year ended
March 31, 2020
Shareholders’ equity
ratio
Marked-to-market
equity ratio
Ratio of interest-bearing
liabilities to cash flow
Interest coverage ratio

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

48.2%

53.4%

51.2%

52.6%

40.6%

50.6%

45.4%

49.4%

1.2 years―

0.7 year

―

94.5X

―

164.4X―

Shareholders’ equity ratio: shareholders’ equity / total assets
Marked-to-market equity ratio: market capitalization / total assets
Ratio of interest-bearing liabilities to cash flow: interest-bearing liabilities / operating cash flow
Interest coverage ratio: operating cash flow / interest payment* All indicators have been calculated based on consolidated financial data.
* Market capitalization is calculated by multiplying the closing share price as of the end of the fiscal year by the
number of issued shares as of the end of the fiscal year.
* For operating cash flow, cash flow from operating activities in the consolidated cash flow statement has been used.
Interest-bearing liabilities include all liabilities declared in the consolidated balance sheet for which interest is paid.
For interest payment, the amount of interest paid according to the consolidated cash flow statement is used.
* The ratio of interest-bearing liabilities to cash flow and the interest coverage ratio have been omitted for the fiscal
years ended March 31, 2021 and 2023, because operating cash flows were in the negative.

4(4) Outlook
In FY2023, the Group will steadily execute the plan to be the “Company of Choice” and work toward achieving the financial
performance targets under the “Century 2025” Phase 3 medium-term management plan. Consolidated earnings forecasts are as follows.
FY2023 consolidated earnings forecasts(Reference) FY2022 consolidated results

Orders received¥190 billion¥228.5 billion

Net sales¥210 billion¥190.8 billion

Operating profit¥7.5 billion¥5.4 billion

Ordinary profit¥8.0 billion¥6.2 billion

Profit attributable toowners of parent¥5.3 billion¥4.7 billion

Note: Figures rounded down to the nearest hundred million yen

2. Management policy, operating environment, and issues to be addressed(1) Basic management policy(i) Sanki Engineering Group management philosophy
The Sanki Engineering Group Management Philosophy is a comprehensive statement describing the Sanki Engineering Group’s
purpose in society and defining how its officers and employees should be. The Group calls this “the Sanki Standard” and has beenpromoting it both within and outside the Group.

Management Philosophy - Sanki Engineering Group(Sanki Standard)
We create comfortable environments through engineering and widely contribute to social development.
We will refine our skills and wisdom with the aim of increasing client satisfaction.
We will place significance on communication and mutual respect.
We will remain aware that we are a member of society and will act accordingly.

Guided by this management philosophy, the Group has formulated “Century 2025,” a long-term vision extending for 10 years until
FY2025, which marks the 100th anniversary of the Group’s foundation, consisting of the following three phases of the medium-term
management plan through which the Group seeks to become “the Company of Choice” for all stakeholders.

・“Century 2025” Phase 1 (FY2016–FY2018): 3-year period to enhance quality
・“Century 2025” Phase 2 (FY2019–FY2021): 3-year period to enhance reliability
・“Century 2025” Phase 3 (FY2022–FY2025): 4-year period to become “the Company of Choice”

5

(ii) Vision for 2050 (ultra-long-term vision)
In conjunction with formulation of the “Century 2025” Phase 3 plan, the Group established its ultra-long-term vision for 2050,
determined the basic policies relating to sustainability, and adopted Sanki’s Carbon-Neutral Declaration.

Vision for 2050
Sanki, “The Enduring Company of Choice”
Striving to be a company that contributes to the realization of a sustainable world by using engineering tosolve social issues such as carbon neutrality and create a pleasant environment

Sustainability Policies
Aiming to realize a strong business base and a sustainable society by “creating comfortable environments
through engineering and widely contributing to social development”

Sanki’s Carbon-Neutral Declaration
The Sanki Engineering Group is making serious efforts to address the climate change crisis facing theworld and aims to achieve carbon neutrality for the Group’s own GHG emissions (Scope 1 and 2) by 2030
and for GHG emissions including the supply chain (Scope 1, 2, and 3) by 2050.
Further, issues that were identified from various perspectives were assessed from the points of view of “improving environmental andsocial value” and “improving corporate value,” which were then prioritized. High-priority issues were grouped into five materialities, as
follows. These are the priority issues that the Group will be addressing to promote sustainability management.

Sanki Engineering Group Materialities (Key Issues)
1.

Contribute to a carbon-free society

2.

Pursuit of happiness for colleagues

3.

Use engineering to build a comfortable environment

4.

Create new social value

5.

Stable earnings and stronger business base

The Group views its strengths as lying not only in the breadth of its technologies and extensive track record, but also in the long-term
relationship of trust with the large number of its valued customers who support the Japanese economy and infrastructure. By realizing
its long-term vision, the Group seeks to further expand and enhance these strengths.
The Group will also endeavor to improve its corporate value by addressing management issues it has identified, including further
enhancement of corporate governance and internal control, handing down and improvement of technical capabilities, promotion of CSR,
rigorous implementation of the risk management process, and sustainability improvement.
With respect to compliance, which is an essential prerequisite for corporate activities, the Group strives to enhance complianceawareness, not to mention strict adherence to laws and regulations, in accordance with the Sanki Engineering Group ComplianceDeclaration, the Sanki Engineering Group Code of Conduct and Action Guidelines, and the Sanki Engineering Group Conduct Standards.
Setting the foregoing as the basic policies of the Group management, steady efforts will be made to enhance corporate value in theyears leading to the 100th anniversary.

6(2) Operating environment and issues to be addressedWith respect to operating environment, the Group recognizes that the environment is changing significantly in such aspects as
decarbonization, declining birth rate and aging population, work-style reform, and rapid progress of DX. To respond to these changes inthe environment, the Group will promote energy conservation and energy creation business, automation and labor-saving business, andthe "Smile Project,” which is the Group’s unique work-style reform aimed at creating a friendly work environment including eliminationof long working hours.
(i) Outline of “Century 2025” Phase 3
The period from FY2022 to FY2025 is the period set for the “Century 2025” Phase 3 medium-term management plan that will add
the finishing touches toward becoming “the Company of Choice” as defined in the Group’s long-term vision.

a. Basic Policies
Realize our ambition of becoming a corporate group of choice and prepare the groundwork for the next era by implementing new
initiatives while continuing to work on the measures taken to achieve Phase 1 priority theme of “enhancing the quality of its technology
and human resources” and Phase 2 priority theme of “enhancing reliability,” for these to mature or evolve further.
b. Priority measures

・Continuation of Phase 1○ Strengthen Core Businesses○ Promote Growth Strategy○ Enhance the Sanki Brand

・Continuation of Phase 2○ Disclose Financial and Capital Policies○ Strengthen Information Dissemination Capabilities

・New initiatives○ Contribute to the Sustainability of Society○ Accelerate Work-Style Reforms

c. Management targets

・Financial performance targets of the final fiscal year of Phase 3
FY2025Net sales¥220.0 billion

Gross profit margin
Ordinary profit

16.5%¥12.0 billion

・Targets for the Phase 3 period
FY2022–FY2025
Ordinary profit margin

5.0% or higher

Payout ratio

50% or higher

Dividend
Acquisition of treasury shares¥70 or more per share annually
About 5 million shares*

ROE
Growth investment

8.0% or higher
About ¥20 billion** Cumulative total for the planned period

7○ Invest toward the Next Era

(ii). Main initiatives in FY2022 and future challenges
a. Group-wide initiatives(E) Resolving global environmental issues through business activities• Technological development and expanded sales of products that contribute to energy conservation to achieve a carbon-freesociety• Establishment of the Sustainability Promotion Division• Enhancement of our unique donations system “SANKI YOU ECO CONTRIBUTION”• Participation in the Ministry of the Environment’s 30by30 Alliance for Biodiversity• Certified as an A-rank company for disclosure in the “Climate Change” field by CDP(S) Proactive measures to promote work-style reforms, enhance communication, and support culture and sports• Continuation of unique work-style reforms under the “Smile Project”• Introduction of a new HR system including delayed retirement and higher beginning salary• Establishment of the “Sanki Engineering Group Human Rights Policy”• “President’s CCU”* held at each location to mark the start of Phase 3• “Diversity CCU”* held repeatedly to address diversity• Reform of the work uniform to be for functional* Century Communication Up: a forum for the exchange of opinions between management and employees(G) Continuing initiatives based on the Sanki Engineering Corporate Governance Guidelines• Achieve and maintain the higher level of governance required by the Tokyo Stock Exchange Prime Market• Review the officer remuneration system and introduce a restricted stock remuneration plan
• Appoint a female Director and maintain the proportion of Outside Directors to at least one-thirdb. Initiatives in each business• Facilities Construction Business
Amid vigorous private-sector investment in large-scale urban redevelopment in major metropolises and industrial HVAC for
semiconductor factories and other facilities, we have secured a substantial backlog of orders due to the robust market. At thesame time, we still face the persistence of elevated prices of materials and equipment and lengthening delivery times. Moreover,
the trend toward larger projects has brought longer project horizons. Long construction projects entail unique risks, such asprocess changes and fluctuations in the price of materials and equipment, and we face the task of controlling the impact of thesefactors.
• Machinery Systems Business
The need for automation and labor-saving solutions arising from labor shortages remains strong in both manufacturing andnon-manufacturing industries. We focused on the secondary battery, healthcare, pharmaceutical, and logistics fields, to capture
expected future growth. We have launched new products specifically targeting the logistics field. We will continue to work todevelop and expand sales of new products.
• Environmental Systems Business
Public-sector investment in public infrastructure including water processing facilities and waste processing facilities has been
on a par with the previous year, but we endeavored to expand sales of strategic products with advanced energy-saving featuresdue to the elevated need for energy conservation as we move toward a carbon-free society. Some products have been performing
favorably in overseas markets as well, and we will pivot on these products to expand the overseas business as well.
In order to realize its long-term vision and become “the Company of Choice,” the Group will proceed with development of newtechnologies and further strengthening of corporate governance, and strive to achieve its sustainable growth and enhancement ofcorporate value over the medium to long term based on full commitment to compliance, while continuing its efforts to build a corporate
structure that can respond flexibly to changes in the environment.

8

3. Basic view on selection of accounting standards
The Group prepares its consolidated financial statements in line with Japanese standards to enable a comparison of the statements
across fiscal periods and between companies. We plan to respond appropriately to the adoption of IFRS (International Financial ReportingStandards), taking into account conditions in Japan and overseas.

9

4. Consolidated financial statements and related notes(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits

42,77924,949

595

407

7,124

4,603

39,412

48,286

19,62923,843

Securities

5,999

4,000

Costs on construction contracts in progress

2,921

2,801

Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable from completed construction
contracts and other
Contract assets

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

756

711

6,541

5,908

(17)

－

125,742

115,512

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

43,83043,955(34,123)(34,672)

9,707

9,283

2,028

2,111

(1,630)(1,687)

398

424

3,085

3,035

542

538

Accumulated depreciation

(230)

(266)

Leased assets, net

311

271

Accumulated depreciation
Buildings and structures, net
Machinery, vehicles, tools, furniture andfixturesAccumulated depreciation
Machinery, vehicles, tools, furniture andfixtures, net
Land
Lease assets

Construction in progress1

22

13,504

13,037

Other

1,255

2,302

Total intangible assets

1,255

2,302

30,44728,010Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

73

64

Retirement benefit asset

6,303

7,190

Leasehold and guarantee deposits

1,466

1,636

Insurance funds

1,252

1,011

Deferred tax assets

821

849

Other

3,160

3,026

Allowance for doubtful accounts

(419)

(337)

Total investments and other assets

43,106

41,45357,866

56,793

183,609172,305

Total non-current assets
Total assets

10

(Millions of yen)
As of March 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Electronically recorded obligations - operating

2,588

1,667

Accounts payable for construction contracts

37,93235,074

Short-term borrowings

8,885

6,674

94

97

Lease obligations
Income taxes payable

2,659

839

Contract liabilities

14,75415,027

Provision for bonuses

4,143

4,101

Provision for directors’ bonuses
Provision for warranties for completed construction
Provision for loss on construction contracts

234

224

1,289

1,405

9

32

Other

6,617

4,505

Total current liabilities

79,21069,649320

1,400

Non-current liabilities
Long-term borrowings
Lease obligations
Retirement benefit liability
Provision for loss on business of subsidiaries andassociates
Deferred tax liabilities

325

300

2,581

3,861

440

440

670

64

Other

5,784

5,675

Total non-current liabilities

10,121

11,742

89,331

81,392

Share capital

8,105

8,105

Capital surplus

4,181

4,189

Retained earnings

75,09773,051

Treasury shares(5,243)(5,335)

Total shareholders’ equity

82,14080,011

Total liabilities
Net assets
Shareholders’ equity

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

12,116

10,583

Deferred gains or losses on hedges(5)

Foreign currency translation adjustment

(19)

－
101

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets

11

(265)

17

11,827

10,702310

199

94,27890,913

183,609172,305

(2) Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales
Net sales of completed construction contracts

190,646

Net sales in real estate business and otherTotal net sales

188,258

2,542

2,607

193,189

190,865

161,430

162,217

Cost of sales
Cost of sales of completed construction contracts
Cost of sales in real estate business and other

1,535

1,635

162,965

163,853

Gross profit on completed construction contracts

29,216

26,040Gross profit on real estate business and other

1,007

971

Total gross profit

30,22327,012

Employees’ salaries and allowances

7,750

7,915

Provision for bonuses

1,771

1,744

Provision for bonuses for directors (and other officers)

234

217

Retirement benefit expenses

495

467

3

Total cost of sales
Gross profit

Selling, general and administrative expenses

Provision of allowance for doubtful accounts
Other

9,886

－
879
10,377

Total selling, general and administrative expenses

21,11021,603

9,112

5,409

Depreciation

969

Operating profit
Non-operating income
Interest income

15

17

Dividend income

560

628

Waste disposal income

175

194

Other

296

365

1,047

1,205

112

98

Total non-operating income
Non-operating expenses
Interest expenses
Office relocation expenses
Other
Total non-operating expenses
Ordinary profit

12

6

65

223

203

342

367

9,817

6,247

(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Extraordinary income
Gain on sale of non-current assets

22

Gain on sale of investment securities

－
50

1,027

Total extraordinary income

50

1,049

Impairment losses

22

Loss on retirement of non-current assets

114

－
189

Loss on valuation of investment securities
Provision for loss on business of subsidiaries andassociates
Settlement payments

77

31

140

－

－

139

Total extraordinary losses

354

360

Profit before income taxes

9,514

6,935

Income taxes - current

3,512

2,282

Extraordinary losses

Income taxes - deferred

(487)

(96)

Total income taxes

3,024

2,185

Profit

6,489

4,750

6,489

4,750

－

－

1,263

(1,532)(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(7)5Foreign currency translation adjustment

97

120

Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income

643

282

1,995

(1,124)

8,485

3,626

8,485

3,626

－

－

(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests13

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

8,105

4,181

Retainedearnings
73,158Treasury shares

Total
shareholders’equity(3,859)81,585

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(4,537)(4,537)

6,489

6,489

(13)

(1,438)(1,438)

55

41

13

(13)

－

－

1,938

(1,383)

555

8,105

4,181

75,097(5,243)82,140－

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

10,853

2

(116)

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
(908)

9,831

Share
acquisitionrightsTotal net assets

282

91,699Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(4,537)
6,489(1,438)
41

－

1,263

(7)

97

643

1,995

27

2,023

1,263

(7)

97

643

1,995

27

2,578

12,116

(5)

(19)

(265)

11,827310

94,27814

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

8,105

4,181

Retainedearnings
75,097

Treasury shares

Total
shareholders’equity(5,243)82,140Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(4,743)(4,743)

4,750

4,750

(28)
36

(2,347)(2,347)

239

211

(36)

－

(2,016)

2,016

－

－

8

(2,045)(91)(2,128)

8,105

4,189

73,051(5,335)80,011

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

12,116

(5)

(19)

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income(265)

11,827

ShareacquisitionrightsTotal net assets

310

94,278Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(4,743)4,750(2,347)211－－(1,532)

5

120

282

(1,124)(111)(1,235)(1,532)

5

120

282

(1,124)(111)(3,364)

10,583－101

17

10,702

199

90,91315

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Loss on retirement of non-current assets
Office relocation expenses
Increase (decrease) in provision for loss on businessof subsidiaries and associates
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for loss on
construction contracts
Interest and dividend income
Interest expenses
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Loss on valuation of investment securities
Decrease (increase) in trade receivables and contract
assetsDecrease (increase) in costs on construction contracts
in progress
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities
Settlement payments
Other
SubtotalInterest and dividends received
Interest paid
Commitment fee payment
Income taxes paid
Income taxes refund
Office relocation costs paid
Settlement paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Purchase of intangible assets
Subsidies received
Proceeds from maturity of insurance funds
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from exercise of share options
Repayments of lease obligations
Dividends paid
Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Fiscal year ended
March 31, 2023
9,514
1,587
22
114
6

16

6,935
1,511
－
189
65

140

－

3
351
726

(26)
(42)
799

9

23

(575)
112
(0)
(50)
77

(645)
98
(22)
(1,027)31

5,389(10,328)

(573)

125

(1,218)
6,154
2,080
－
(4,324)
19,548
575
(112)
(10)
(1,839)374(6)－18,529(3,793)263(2,160)139
1,142(6,720)645(98)－(4,213)
7
(65)
(139)
(10,584)(19,000)
17,000(1,010)0(21,000)
21,000(1,007)
76

(117)

(178)

(21)
182
12
(529)
20
304
(225)
(3,384)

(273)
1,503
12
(1,185)
20
555
(491)
(969)

0
－
(1,390)(1,438)0(152)(4,537)(7,518)258
1,750(3,140)(2,347)0(105)(4,743)(8,327)

64

51

7,692
37,08744,779(19,829)
44,77924,949(5) Notes on consolidated financial statements(Notes on premise of going concern)
Not applicable(Changes in presentation method)(Consolidated statements of income and comprehensive income)(1) “Insurance claim income,” which was posted separately under non-operating income in the previous consolidated fiscal year,
is included in “Other” from the consolidated fiscal year under review because its financial materiality within total non-operating income has decreased. The consolidated financial statements for the previous fiscal year have been reclassified to reflect
this change in presentation.
As a result, ¥112 million presented as “Insurance claim income” and ¥184 million presented as “Other” under non-operating
income in the consolidated statements of income and comprehensive income for the previous consolidated fiscal year are
reclassified as “Other” ¥296 million.
(2) “Construction repair expenses,” which was posted separately under non-operating expenses in the previous consolidated fiscal
year, is included in “Other” from the consolidated fiscal year under review because its financial materiality within total nonoperating expenses has decreased. “Office relocation expenses,” which was included in “Other” under non-operating expenses
in the previous consolidated fiscal year, is separately presented from the consolidated fiscal year under review because its
financial materiality within total non-operating expenses has increased. The consolidated financial statements for the previous
fiscal year have been reclassified to reflect these changes in presentation.
As a result, ¥86 million presented as “Construction repair expenses” and ¥144 million presented as “Other” under non-operating expenses in the consolidated statements of income and comprehensive income for the previous consolidated fiscal year are
reclassified as “Office relocation expenses” ¥6 million and “Other” ¥223 million.
(Consolidated statements of cash flows)“Loss (gain) on sale of property, plant and equipment,” which was included in “Other” under cash flows from operating
activities, as well as “Proceeds from sale of property, plant and equipment” and “Purchase of intangible assets,” which was
included in “Other” under cash flows from investing activities in the previous consolidated fiscal year, are, from the consolidated
fiscal year under review, presented separately because their financial materiality has increased. The consolidated financial statements for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, ¥4,324 million of cash outflow from “Other,” which was presented under cash flows from operating activities in
the consolidated statements of cash flows for the previous consolidated fiscal year, is reclassified to ¥0 million of cash outflow
from “Loss (gain) on sale of property, plant and equipment” and ¥4,324 million of cash outflow from “Other.” Also, ¥755 millionof cash outflow from “Other,” which was presented under cash flows from investing activities in the previous consolidated fiscal
year, is reclassified to ¥0 million of cash inflow from “Proceeds from sale of property, plant and equipment,” ¥529 million of
cash outflow from “Purchase of intangible assets,” and ¥225 million of cash outflow from “Other.”17

(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, and which
are subject to periodic review by the chief management decision-making body to determine the allocation of management
resources and evaluate performance.
The Group uses a divisional organizational structure for the company, and each consolidated subsidiary develops its businessin cooperation with the company’s divisional organizational structure within a reportable segment.
Accordingly, the Group is composed of the following four segments based on the organizational structure of the company: theFacilities Construction Business, which is engaged in a wide-range of business related to facilities construction works; theMachinery Systems Business, which is engaged in business related to industrial equipment such as FA systems, distribution
systems, and conveyors; the Environmental Systems Business, which is engaged in business related to environmental facilities
such as water and sewage treatment facilities; and the Real Estate Business, which is engaged in real estate leasing andmanagement.
2. Methods of calculating the amounts of sales, profit (loss), and other items by reportable segment
Methods of accounting procedures for reportable business segments are generally the same as those used in the preparation of
consolidated financial statements. The profit of each reportable segment is an amount based on ordinary profit. Intersegment
sales and transfers are based on prevailing market prices.
Segment assets and liabilities are not listed because they are not taken into consideration when deciding the allocation ofmanagement resources and evaluating business performance.
3. Information on net sales, profit (loss), and other items by reportable segment
Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segments
Facilities
Machinery
Construction Systems
Business
Business

Environmental
Systems
BusinessReal
EstateBusiness

Total

Other
(Notes) 1

Total

Adjustments(Notes) 2

Value onconsolidated
financialstatements(Notes) 3

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

155,165

9,660

25,816

2,407

193,050

139

193,189－

193,189

318

6

26

2

354

427

781

(781)

－

Total

155,484

9,666

25,842

2,410

193,404

566

193,971(781)

193,189

8,825

(193)

184

798

9,615

6

9,622

195

9,817

Segment profit (loss)
Other items

Depreciation
886
229
123
407
1,646
0
1,646
(59)
1,587
Interest income
4
0
3
7
0
7
7
15
－
Interest expenses
42
0
0
43
43
69
112
－
－
Extraordinary income
50
50
－
－
－
－
－
－
－
Extraordinary losses
147
3
5
57
214
214
140
354
－
(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments, and includes the leasing
business, insurance agency business, etc.
2. Adjustment amountThe adjustment amount of ¥195 million to segment profit/loss includes company-wide loss not allocated to eachreportable segment of ¥430 million, the reversal amount of the interest burden allocated to each segment within thecompany of ¥391 million, and an adjustment amount of ¥234 million due to the recording of loss on retirement of fixed
assets and loss on valuation of investment securities attributable to each segment as an extraordinary loss. Note thatgeneral and administrative expenses, etc. that are not attributable to each segment are the main source of company-wide
profit/loss.
3. Segment profit or loss is adjusted with ordinary profit in the consolidated financial statements.

18

Fiscal year ended March 31, 2023
(Millions of yen)
Reportable segments
Facilities Machinery
Construction Systems
Business
Business

Environmental
Systems
BusinessReal
EstateBusiness

Total

Other
(Notes) 1

Total

Adjustments(Notes) 2

Value onconsolidated
financialstatements(Notes) 3

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

155,423

7,658

25,176

2,468

190,727

138

190,865－

190,865

355

2

24

2

384

417

802

(802)

－

Total

155,778

7,661

25,2002,471

191,111556

191,667(802)

190,865

5,497(1,055)

805

724

5,972

(11)

5,961

285

6,247

Segment profit (loss)
Other items

Depreciation
805
209
127
424
1,567
0
1,567
(56)
1,511
Interest income
5
0
2
8
0
8
8
17
－
Interest expenses
42
0
0
42
42
56
98
－
－
Extraordinary income
22
0
22
22
1,027
1,049
－
－
－
Extraordinary losses
253
6
8
91
360
360
360
－
－
(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments, and includes the leasing
business, insurance agency business, etc.
2. Adjustment amountThe adjustment amount of ¥285 million to segment profit/loss includes company-wide loss not allocated to eachreportable segment of ¥370 million, the reversal amount of the interest burden allocated to each segment within thecompany of ¥317 million, and an adjustment amount of ¥338 million due to the recording of loss on retirement of fixed
assets and loss on valuation of investment securities, etc. attributable to each segment as an extraordinary profit/loss. Notethat general and administrative expenses, etc. that are not attributable to each segment are the main source of companywide profit/loss.
3. Segment profit or loss is adjusted with ordinary profit in the consolidated financial statements.
[Related information]
FY2021 (April 1, 2021 to March 31, 2022) and FY2022 (April 1, 2022 to March 31, 2023)
1. Information by product and service
Information by product and service is omitted because similar information is provided in “segment information.”
2. Information by region(1) Net sales
This information is omitted because sales to external customers in Japan account for over 90% of sales on the consolidated
statements of income and comprehensive income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of theamount of property, plant and equipment on the consolidated balance sheet.
3. Information on main customers
This information is omitted because within sales to external customers, no specific customer accounts for over 10% of sales
on the consolidated statements of income and comprehensive income.

19

[Information related to impairment losses on non-current assets by reportable segment]
Fiscal year ended March 31, 2022
(Millions of yen)
Facilities
Machinery EnvironmenReal Estate
Construction Systems
tal Systems
Business
Business
Business
Business
Impairment losses
22
－
－
－

Other

Total

Adjustments
22

－

－

Total
22

Fiscal year ended March 31, 2023
Not applicable[Information on amortization and unamortized balance of goodwill by reportable segment]
FY2021 (April 1, 2021 to March 31, 2022) and FY2022 (April 1, 2022 to March 31, 2023)
Not applicable[Information on negative goodwill gains by reportable segment]
FY2021 (April 1, 2021 to March 31, 2022) and FY2022 (April 1, 2022 to March 31, 2023)
Not applicable(Per share information)
Fiscal year ended March 31, Fiscal year ended March 31,
2022
2023
Net assets per share¥1,685.20¥1,666.36

Profit per share¥115.13¥85.80

Profit per share – diluted¥114.55¥85.50(Note) The basis for calculating profit per share and diluted profit per share is as follows.
Fiscal year ended March 31, Fiscal year ended March 31,
2022
2023
Profit per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to owners of parent
pertaining to common shares
Average number of common shares outstanding
in fiscal year
Profit per share – diluted
Adjustment of profit attributable to owners ofparent(Millions of yen)

6,489

4,750

(Millions of yen)－－

(Millions of yen)

6,489

4,750

(Thousands ofshares)56,36355,366(Millions of yen)

－

－

288

191

288

191

(Thousands ofshares)(Of which, stock options utilizing stock acquisition rights)(Thousands of shares)
Increase in common shares

Overview of issuable shares not included in the calculation ofdiluted profit per share because they have no dilutive effect(Important post balance sheet events)
Not applicable20――――――――――――――――――――

5. Reference information
Results reference information (YoY comparison)(1) Summary of consolidated statements of income
April 1, 2021 toMarch 31, 2022
Net sales of completed
construction contracts
Net sales in real estate business andotherNet sales
Cost of sales of completed
construction contracts
Cost of sales in real estate businessand other
Cost of sales
Gross profit on completed
construction contracts
Gross profit on real estate businessand other
Gross profit(Millions of yen, %)YoY change
YoY change(%)

April 1, 2022 toMarch 31, 2023

190,646

188,258(2,387)

(1.3)

2,542

2,607

64

2.5

193,189

190,865(2,323)(1.2)

161,430

162,217

787

0.5

1,535

1,635

99

6.5

162,965

163,853887

0.5

29,216

26,040(3,175)(10.9)

1,007

971

(35)

(3.5)

30,22327,012(3,211)(10.6)

21,11021,603492

2.3

Operating profit

9,112

5,409

(3,703)(40.6)

Non-operating income

1,047

1,205

157

15.0

Selling, general and administrative expenses

Non-operating expenses

342

367

24

7.3

9,817

6,247

(3,570)(36.4)

Extraordinary income

50

1,049

998

Extraordinary losses

354

360

6

－
1.8

Profit before income taxes

9,514

6,935

(2,578)(27.1)

Profit attributable to owners of parent

6,489

4,750

(1,738)(26.8)

Ordinary profit(2) Summary of non-consolidated statements of income
April 1, 2021 toMarch 31, 2022
Net sales of completed
construction contracts
Net sales in real estate business andotherNet sales
Cost of sales of completed
construction contracts
Cost of sales in real estate businessand other
Cost of sales
Gross profit on completed
construction contracts
Gross profit on real estate businessand other
Gross profit(Millions of yen, %)YoY change
YoY change(%)

April 1, 2022 toMarch 31, 2023

171,134

166,644(4,489)

(2.6)

2,410

2,471

61

2.5

173,544

169,116(4,428)(2.6)

145,582

144,381(1,201)

(0.8)

1,533

1,627

93

6.1

147,116

146,008(1,108)(0.8)

25,552

22,263(3,288)(12.9)

876

844

(32)

(3.7)

26,428

23,108(3,320)(12.6)

Selling, general and administrative expenses

19,14019,597456

2.4

Operating profit

7,288

3,510

(3,777)(51.8)

Non-operating income

2,756

2,497

(259)

(9.4)

Non-operating expenses

387

383

(4)

(1.1)

9,656

5,624

(4,031)(41.8)

50

1,049

998

Ordinary profit
Extraordinary income

372

360

(12)

－
(3.4)

Profit before income taxes

9,334

6,313

(3,020)(32.4)

Profit

6,952

4,830

(2,121)(30.5)

Extraordinary losses

21

(3) Segment orders, sales, and balance carried forward (consolidated)(Millions of yen)
FY2021Category

April 1, 2021 toMarch 31, 2022

FY2022
April 1, 2022 toMarch 31, 2023

Share
79

Machinery Systems

8,914

Environmental
Systems
Subtotal

11,654

5

2,739

30.7

30,64015

19,9299(10,710)(35.0)

39,55420

31,583

14(7,971)(20.2)

200,05999

226,39399

26,333

13.2

Real Estate Business

2,410

1

2,471

1

61

2.5

Other

563

0

542

0

(21)

(3.8)

Adjustments

(782)

(0)

(853)

(0)

(70)

－

202,250100

228,554100

26,30313.0

Facilities Construction

155,484

81

155,778

82

294

0.2

Machinery Systems

9,666

5

7,661

4

(2,005)(20.7)

Environmental
Systems

25,842

13

25,200

13

(642)

(2.5)

Subtotal

35,50918

32,86117(2,648)(7.5)

190,99399

188,640

99(2,353)(1.2)

Real Estate Business

2,410

1

2,471

1

61

2.5

Other

566

0

556

0

(10)

(1.9)

Adjustments

(781)

(0)

(802)

(0)

(20)

－

193,189100

190,865100(2,323)(1.2)

Facilities Construction

104,89270

143,92376

39,031

37.2

Machinery Systems

2,879

2

6,872

4

3,993

138.7

Environmental
Systems

42,981

28

37,71020(5,271)(12.3)

Subtotal

45,86030

44,58224(1,278)(2.8)

150,753100

188,506100

37,75325.0

Real Estate Business

－

－

－

－

－

－

Other

70

0

56

0

(13)

(19.6)

Adjustments

(85)

(0)

(136)

(0)

(51)

－

150,737100

188,426

100

37,68825.0

Overseas orders (% of total orders)

4,283

2.1%

3,021

1.3%

(1,261)(29.5)%

Overseas sales (% of total sales)

2,912

1.5%

3,488

1.8%

575

19.8

%

Equipment construction
business
Plant
equipment

Net sales

Total

Total equipment
construction business

Equipment construction
business
Plant
equipment

Balance carried forward

Total

Total equipment
construction business

Total

%

%

Note: Internal transactions in each segment are eliminated by the adjustment amount.

22

%

21.4

5

Total equipment
construction business%

34,30485

Equipment construction
business
Plant
equipment

160,504

YoY change(%)

194,809

Orders received

Facilities Construction

Share

YoY change

%

%

%

%

%

(4) Division orders, sales, and balance carried forward (non-consolidated)(Millions of yen)
FY2021

Facilities Construction

31 %69,98733 %

15,66828.8Industrial HVAC

59,91534

75,54836

15,632

26.1

Electrical Systems

27,552

15

28,370

14

818

3.0

Facility Systems

9,960

6

12,560

6

2,599

26.1

Subtotal

151,747

86

186,466

89

34,71822.9

Machinery Systems

8,318

5

10,853

5

2,535

30.5

Environmental Systems

14,703

8

9,471

5

(5,231)(35.6)

Subtotal

23,021

13

20,325

10(2,696)(11.7)

174,769

99

206,791

99

32,022

18.3

Real Estate Business

2,410

1

2,471

1

61

2.5

Total

177,179100

209,263100

32,083

18.1

Facilities Construction

HVAC and Plumbing for
Buildings

57,75034 %

54,76332 %(2,987)(5.2) %

Industrial HVAC

55,17632

56,159

33

982

1.8

Electrical Systems

24,59914

25,515

15

916

3.7

Facility Systems

10,436

6

10,986

7

549

5.3

Subtotal

147,96286

147,423

87

(538)

(0.4)

Machinery Systems

9,081

5

6,979

4

(2,101)(23.1)

Environmental Systems

14,0908

12,2418(1,848)(13.1)

Subtotal

23,172

13

19,221

12(3,950)(17.0)

171,134

99

166,644

99(4,489)(2.6)

Real Estate Business

2,410

1

2,471

1

61

2.5

Total

173,544100

169,116100(4,428)(2.6)

Facilities Construction

%

Plant
equipment

Equipment construction business

Share

YoY change(%)

54,318HVAC and Plumbing for
Buildings

49,64338 %64,86838 %

15,22430.7

Industrial HVAC

31,20524

50,59430

19,38962.1

Electrical Systems

17,993

14

20,849

12

2,855

15.9

Facility Systems

2,832

2

4,406

2

1,574

55.6

Subtotal

101,67578

140,71882

39,042

38.4

Machinery Systems

2,783

2

6,657

4

3,873

139.1

Environmental Systems

26,14720

23,37714(2,769)(10.6)

Subtotal

28,93122

30,035

18

1,103

3.8

130,607100

170,754100

40,146

30.7

－

－

－

－

－

－

130,607100

170,754100

40,146

30.7

Total equipment construction
business

Equipment construction business

Share

YoY change

Plant
equipment

Net sales

FY2022
April 1, 2022 toMarch 31, 2023

HVAC and Plumbing for
Buildings

Total equipment construction
business

Balance carried forward

April 1, 2021 toMarch 31, 2022

Plant
equipment

Equipment construction business

Orders received

Category

Total equipment construction
business
Real Estate Business
Total

Overseas orders for construction contracts(% of total orders)
Overseas sales of completed construction
contracts (% of total sales)

%

99

0.1%

32

0.0%

(66)

(66.9) %

54

0.0%

85

0.1%

30

56.6

23

%