Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023 [J-GAAP]May 9, 2023

NIPPON KANZAI Holdings Co., Ltd. (for NIPPON KANZAI Co., Ltd.)
Listed exchange:
Tokyo Stock Exchange, Prime Market
Securities code:
9347
URL: https://www.nkanzaihd.co.jp/en/
Representative:
Shintaro Fukuda, President and Representative Director
Contact:
Shigeki Okamoto, Senior Executive officer and Head of Finance and Accounting Dept.
Telephone:+81-3-5299-0863
Date of annual general meeting of shareholders: June 27, 2023
Filing date of securities report:
N/A
Date to start dividends distribution:
June 28, 2023
Supplementary materials for results:
Yes
Results briefing meeting held:
Yes (for institutional investors and analysts)*Amounts below one million yen have been rounded down.

1. Consolidated results for the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated business results(Percentage figures indicate the rate of change from the previous fiscal year.)

Net Sales
Fiscal year ended March 31, 2023

Operating Income

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

113,045

9.0

8,341

11.2

8,662
8,276

4.7
3.7

Fiscal year ended March 31, 2022
103,737
(0.4)
7,500
(0.6)
(Note) Comprehensive income:Fiscal year ended March 31, 2023: ¥6,146 million [-11.8%]
Fiscal year ended March 31, 2022: ¥6,968 million [17.5%]
Profit Attributable to
Owners of Parent
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

Profit per Share

Diluted Profit per Share

Millions of yen

%

Yen

Yen

5,658
6,177

(8.4)
20.0

151.37165.24――Return on Equity

%
9.1
10.7

Fiscal year ended March 31, 2023

Ordinary Income toTotal Assets

Fiscal year ended March 31, 2022
(Reference) Share of profit of entities accounted for using equity method:
Fiscal year ended March 31, 2023: ¥(143) million
Fiscal year ended March 31, 2022:¥439 million

Operating Income to
Net Sales

%
10.2
10.1

%
7.4
7.2

(2) Consolidated financial position
Total Assets
As of March 31, 2023
As of March 31, 2022
(Reference) Equity:(3) Consolidated cash flows

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

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

87,17582,14165,47961,65273.8
73.5

1,721.13
1,614.97

Net cashprovided by (used in)operating activities

Net cashprovided by (used in)investing activities

Net cashprovided by (used in)financing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

7,763
4,456

(4,511)(1,840)(3,717)(3,074)32,04132,444As of March 31, 2023:
As of March 31, 2022:¥64,341 million¥60,372 million

Cash andcash equivalents
at end of period

2. Dividends

Total
Dividends
Paid

Annual dividends
First
Quarter-end

SecondQuarter-end

Third
Quarter-end

Yen

Yen

Yen

Year-end

Total

Yen

Yen

(full year)

Millions of yen

Dividend
Payout
Ratio

Dividends
to
Net Assets%%(consolidated) (consolidated)

Fiscal year ended
―
27.00
―
27.00
54.00
2,018
32.7
3.5
March 31, 2022
Fiscal year ended
―
27.00
―
27.00
54.00
2,018
35.7
3.2
March 31, 2023
Fiscal year ending
March 31, 2024
―
27.00
―
27.00
54.00
33.6
(forecast)(Notes) 1. For the fiscal years ended March 31, 2022, and March 31, 2023, the annual dividends of NIPPON KANZAI Co., Ltd. areindicated.
2. For the fiscal year ending March 31, 2024 (forecast), the dividend forecast of NIPPON KANZAI Holdings Co., Ltd., thewholly owning parent company of NIPPON KANZAI Co., Ltd., is indicated.

3. Consolidated business forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentage figures for the full year indicate the rate of change from the previous fiscal year.
Percentage figures for the first six months indicate the rate of change from the same period of the previous fiscal year.)
Profit Attributable toProfitNet Sales
Operating Income
Ordinary Income
Owners of Parent
per ShareFirst half

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

55,800

3.8

3,900

(7.1)

4,200

(11.5)

2,750(10.4)

73.56

Full year
118,600
4.9
8,600
3.1
9,100
5.0
6,000
6.0
160.50(Note) The consolidated earnings forecast of NIPPON KANZAI Holdings Co., Ltd., the wholly owning parent company of NIPPONKANZAI Co., Ltd., is indicated.

* Notes(1) Changes of significant subsidiaries during the period (changes in specific subsidiaries associated withchanges in scope of consolidation): None
(2) Changes in accounting policies, accounting estimates and restatement of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.:
Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
None4) Restatement of revisions:
None(3) Number of shares issued and outstanding (common stock)1) Number of shares issued and outstanding (including treasury stock)2) Treasury stock (number of shares)
3) Average number of shares issued and outstanding
1)

As of March 31, 2023

41,180,306 shares

As of March 31, 2022

41,180,306 shares

2)

As of March 31, 2023

3,797,106 shares

As of March 31, 2022

3,797,012 shares

3)

Fiscal year ended
March 31, 2023

37,383,265 sharesFiscal year ended
March 31, 2022

37,383,416 shares

(Reference) Summary of non-consolidated financial results
1. Non-consolidated results for the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated business results(Percentage figures indicate the rate of change from the previous fiscal year.)

Net Sales

Operating Income

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

Fiscal year ended March 31, 2023

70,507

9.7

4,909

6.9

7,520

12.8

Fiscal year ended March 31, 2022

64,253

0.5

4,590

2.2

6,664

6.4

ProfitProfit per Share

Diluted Profit per Share

Millions of yen

%

Yen

Yen

Fiscal year ended March 31, 2023

5,810

2.8

155.43Fiscal year ended March 31, 2022

5,651

15.1

151.19――(2) Non-consolidated financial position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of March 31, 2023

64,43551,28979.6

1,371.99

As of March 31, 2022
(Reference) Equity:

59,622As of March 31, 2023:
As of March 31, 2022:

80.2

1,278.32

47,787¥51,289 million¥47,787 million

2. Non-consolidated business forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)
No earnings forecast is indicated, as NIPPON KANZAI Co., Ltd. was delisted on March 30, 2023.
* This financial report is not subject to audit procedures by certified public accountants or audit corporations.
* Explanation regarding the appropriate use of business forecasts and other notes(Notes to forward-looking statements)
On April 3, 2023, NIPPON KANZAI Co., Ltd. established NIPPON KANZAI Holdings Co., Ltd. as its wholly owningparent company via single stock transfer and became a wholly owned subsidiary. The business forecasts reported herein
were prepared based on information NIPPON KANZAI Holdings Co., Ltd. had in its possession as of the time this report
was prepared and on certain assumptions judged to be reasonable. Actual results may differ significantly from forecasts due
to various factors. Please refer to the disclaimers provided under “1. Overview of business results, etc.; (4) Future outlook”
on page 3 of the Attached Document of this financial report regarding assumptions upon which forecasts are based and theuse of forecasts.
(How to obtain supplementary materials on financial results)
NIPPON KANZAI Holdings Co., Ltd. plans to hold a financial results briefing of NIPPON KANZAI Co., Ltd. for
institutional investors and analysts on Tuesday, May 30, 2023. The presentation materials for the financial results briefing
will be posted on the Company’s website after the briefing is over.
(Filing of securities report)
No filing date of securities report is indicated, as NIPPON KANZAI Co., Ltd. was delisted on March 30, 2023, and nosecurities report will be filed.

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Table of Contents for the Attached Document
1. Overview of business results, etc. ...................................................................................................................... 2(1) Overview of business results for the period .................................................................................................... 2(2) Overview of financial position for the period ................................................................................................. 3(3) Overview of cash flows for the period ............................................................................................................ 3(4) Future outlook ................................................................................................................................................. 3
2. Basic policy regarding selection of accounting standard ................................................................................... 3
3. Consolidated financial statements and key notes ............................................................................................... 4(1) Consolidated balance sheets ............................................................................................................................ 4(2) Consolidated statements of income and consolidated statements of comprehensive income ...............................6
Consolidated statements of income ............................................................................................................... 6
Consolidated statements of comprehensive income ...................................................................................... 8(3) Consolidated statements of changes in equity .................................................................................................... 9(4) Consolidated statements of cash flows............................................................................................................. 11(5) Notes to consolidated financial statements .................................................................................................... 13(Notes on the going concern assumption) .................................................................................................... 13(Segment information, etc.) ......................................................................................................................... 13(Per share information) ................................................................................................................................ 15(Significant subsequent events) ................................................................................................................... 16
4. Non-consolidated financial statements and key notes ...................................................................................... 17(1) Non-consolidated balance sheets ................................................................................................................... 17(2) Non-consolidated statements of income ........................................................................................................ 20(3) Non-consolidated statements of changes in equity ........................................................................................... 22

1

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

1. Overview of business results, etc.
(1) Overview of business results for the period
During the current fiscal year (fiscal year ended March 31, 2023), the Japanese economy showed a pickup in economic
activities as movement restrictions to prevent the spread of COVID-19 were eased in stages. The outlook still remains
uncertain, however, under the impact of currency exchange fluctuation risks due to rapid depreciation of the yen on topof surging resource and raw material prices caused by the prolonged situation in Ukraine.
In the real estate services industry, vacancy rates for office buildings and retail facilities in urban areas remained highas a result of the advancement of teleworking and establishment of satellite offices as countermeasures against COVID19. In addition, with surging resource and raw material prices and rising labor costs leading to client companies becoming
more conscious of reducing costs, a severe business environment is expected to continue going forward.
In such a business environment, the Nippon Kanzai Group (hereinafter “the Group”) has continued to pursue “optimalbuilding management” through its advanced technologies and responsiveness in order to continuously provide highquality services that match customer needs, endeavoring to enhance the asset value of buildings.
The Group has also endeavored to further strengthen and improve Building Management and Operations, its corebusiness, while proactively implementing operations in peripheral fields such as private finance initiatives (PFI) andpublic facilities management projects.
Consolidated net sales for the current fiscal year increased by 9.0% year on year to 113,045 million yen due to anincrease in orders for construction-related services, on top of steady entrustment of new management projects andcontract renewals.
In terms of profit, despite the increase in personnel and outsourcing expenses, efforts to revise fees and reduce costs
resulted in an increase in operating income of 11.2% year on year to 8,341 million yen and an increase in ordinary incomeof 4.7% year on year to 8,662 million yen. Profit attributable to owners of parent decreased 8.4% year on year to 5,658
million yen due to an increase in tax expenses.
The following are business results by segment.
Segment income has been adjusted to operating income described in the consolidated statements of income.

Building Management and Operations
With regard to Building Management and Operations, the Group’s core business that focuses on building management
and security services, steady entrustment of new management projects and contract renewals resulted in net sales forthe segment for the current fiscal year increasing by 7.9% year on year to 77,691 million yen.
In terms of profit, despite an increase in personnel and outsourcing expenses, efforts to revise fees and reduce costs
resulted in segment income increasing by 7.4% year on year to 10,649 million yen.
Residential Management and Operations
For Residential Management and Operations, which mainly consists of managing rental apartment buildings andcondominiums as well as public housing, net sales for the current fiscal year was 18,130 million yen, up 6.8% year on
year, due to an increase in repair work in the management of public housing.
In terms of profit, continuous efforts to reduce costs resulted in segment income of 1,825 million yen, a year-on-yearincrease of 7.8%.
Environmental Facilities Management
With regard to Environmental Facilities Management, which mainly consists of managing water treatment, sewage
disposal and other public facilities related to the overall living environment, net sales for the current fiscal year increasedby 12.0% year on year to 12,936 million yen due to steady renewal of existing management contracts and an increasein orders for construction-related work.
Looking at profit, despite the impact of surging resource prices and other factors, segment income increased by 7.4%
year on year to 1,697 million yen as a result of the Group’s efforts in cost reduction with a focus on realignment of
personnel assignments.
Real Estate Fund Management
For Real Estate Fund Management, which mainly consists of asset management (i.e. arrangement and asset managementof real estate funds) and handling of investments in silent partnership, net sales for the current fiscal year increased by
27.5% year on year to 1,950 million yen due to an increase in income from the sale of assets under management andfrom sublease contracts.
As for profit, segment income increased by 39.6% year on year to 60 million yen as a result of the Group’s efforts to
reduce costs with a focus on realignment of personnel assignments.
Other Businesses
In Other Businesses, which consist mainly of event planning and management, design and payroll accounting services,
net sales for the current fiscal year increased by 32.7% to 2,647 million yen and segment income rose by 17.4% to 369
million yen, both on a year-on-year basis. This was due to an increase in orders for event services and contribution ofbusiness performance of NEOTRUST Co., Ltd., which became a consolidated subsidiary at the end of the second quarterof the fiscal period ended March 31, 2022.
2

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(2) Overview of financial position for the period
Total assets at the end of the current fiscal year increased by 5,033 million yen, or 6.1%, from the previous fiscal yearend to 87,175 million yen.
Current assets increased by 929 million yen, or 1.8%, from the previous fiscal year-end to 52,779 million yen. Noncurrent assets increased by 4,104 million yen, or 13.6%, from the previous fiscal year-end to 34,396 million yen.
The increase was mainly due to an increase in investment securities (a year-on-year increase of 3,831 million yen)through purchase of shares of subsidiaries and associates, etc.
Total liabilities at the end of the current fiscal year increased by 1,206 million yen, or 5.9%, from the end of theprevious fiscal year to 21,695 million yen due to an increase in income taxes payable (a year-on-year increase of 1,165
million yen).
Total net assets at the end of the current fiscal year increased by 3,827 million yen, or 6.2%, from the end of theprevious fiscal year to 65,479 million yen.
The increase was mainly due to an increase in retained earnings as a result of recording profit attributable to ownersof parent (a year-on-year increase of 3,639 million yen).
As a result, the equity ratio at the end of the current fiscal year increased by 0.3 percentage points from 73.5% at theend of the previous fiscal year to 73.8%.
The Group’s financial policy is to secure the liquidity necessary for management and to maintain a sound balance sheet.
(3) Overview of cash flows for the period
Cash and cash equivalents (hereinafter “cash”) at the end of the current fiscal year decreased by 402 million yen, or 1.2%,
from the previous fiscal year-end to 32,041 million yen.
The status and main factors of cash flows for the current fiscal year were as follows:(Cash flows from operating activities)
Net cash provided by operating activities for the current fiscal year was 7,763 million yen, up 3,307 million yen year
on year. This was mainly due to an increase in notes and accounts payable – trade (a larger inflow by 2,297 million yen
year on year) and a decrease in income taxes paid (a smaller outflow by 1,790 million yen year on year).
(Cash flows from investing activities)
Net cash used in investing activities for the current fiscal year was 4,511 million yen, a larger outflow by 2,671 million
yen from the previous fiscal year. This was mainly due to purchase of investment securities (a larger outflow by 3,548
million yen year on year).
(Cash flows from financing activities)
Net cash used in financing activities for the current fiscal year was 3,717 million yen, a larger outflow by 643 million
yen year on year.
This was mainly due to a decrease in the off-set amount of borrowings of long-term non-recourse loans payable andrepayments of the same (a larger outflow of 449 million yen year on year) and repayments of investments in capital tonon-controlling shareholders (a larger outflow of 169 million yen year on year).

(4) Future outlook
No earnings forecast is indicated, as NIPPON KANZAI Co., Ltd. was delisted on March 30, 2023.
NIPPON KANZAI Holdings Co., Ltd., the wholly-owning parent company of NIPPON KANZAI Co., Ltd., will
specialize in the management functions of the Group as it transitions to a holding company structure and work to establish
business strategies, optimize management resources and strengthen its functions. By delegating authority between
operating companies and speeding up decision-making processes, it aims to achieve further growth of the Group. The
Group will endeavor to enhance customer satisfaction and profitability by continuously improving its service quality as
well as proactively making proposals that offer high added value while striving to raise wages in order to eliminate theshortage of human resources. Setting project proposal capabilities as the main focus, the Group will endeavor to further
expand such business operations as PFI and public facility management as well as proactively pursue M&A projects ofrelated businesses to the Company in Japan and abroad.
Looking ahead, amid rising energy costs and raw material prices caused by the situation in Ukraine and ongoing global
monetary tightening, uncertainty is likely to persist due to factors such as bankruptcy of banks from concerns about thefinancial system in the U.S. and Europe.
The business forecasts of NIPPON KANZAI Holdings Co., Ltd. for the next fiscal year (April 1, 2023 to March 31,2024) are as follows: consolidated net sales increasing by 4.9% year on year to 118,600 million yen; consolidated
operating income increasing by 3.1% year on year to 8,600 million yen; consolidated ordinary income increasing by
5.0% year on year to 9,100 million yen; and profit attributable to owners of parent increasing by 6.0% year on year to
6,000 million yen.

2. Basic policy regarding selection of accounting standard

The Group has a policy to prepare financial statements based on Japanese GAAP for the time being, considering thecomparability of consolidated financial statements over time and between Japanese companies.
As for International Financial Reporting Standards, the Group will appropriately consider them based on the overallsituation in Japan and overseas in the future.
3

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

3. Consolidated financial statements and key notes(1) Consolidated balance sheets

ASSETS
Current assets
Cash and deposits
Notes, accounts receivable－trade and contract assets
Investments in silent partnership for business purposes
Supplies
Real estate for sale
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Telephone subscription right
Software
Goodwill
Leased assets
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Membership
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
TOTAL ASSETS

Fiscal year ended
March 31, 2022
(As of March 31, 2022)(Millions of yen)
Fiscal year ended
March 31, 2023
(As of March 31, 2023)

32,78914,296
74
183
2,907
141
1,465
(8)
51,84932,38615,925
64
218
2,128
11
2,050
(7)
52,7797,768(3,922)
3,846
138
(98)
39
1,628
(1,077)
550
1,226
1,252
(950)
302
21
5,988

7,966
(3,977)
3,988
135
(108)
27
1,730
(1,100)
630
1,211
1,602
(1,074)
527
6,385

46
405
1,825
9
70
2,357

48
372
1,807
7
164
2,400

15,653
833
19
3,671
361
830
245
388
(56)
21,94630,291
82,141

19,485
866
9
3,516
355
763
301
366
(54)
25,61034,39687,175*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

4

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

LIABILITIESCurrent liabilities
Notes and accounts payable－trade
Current portion of long-term loans payable
Current portion of long-term non-recourse loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Contract liabilities
Provision for bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term non-recourse loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Long-term guarantee deposited
Asset retirement obligations
Liabilities from application of equity method
Other
Total non-current liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

Fiscal year ended
March 31, 2022
(As of March 31, 2022)(Millions of yen)
Fiscal year ended
March 31, 2023
(As of March 31, 2023)

6,143
375
16
107
2,659
561
930
277
1,711
768
21
53
13,626

7,146
375
678
156
2,520
1,726
1,225
310
1,509
811
230
16,691

375
1,871
229
731
166
2,475
284
22
705
6,862
20,489

291
396
690
234
2,255
458
20
658
5,004
21,695

3,000
3,785
55,080(2,773)59,092

3,000
3,785
58,720(2,773)62,732

2,282
(820)
(181)
1,280
1,279
61,652
82,141

2,035
(162)
(264)
1,608
1,138
65,47987,175*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

5

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
Personnel expenses
Provision for bonuses
Retirement benefit expenses
Transportation and communication expenses
Supplies expenses
Rent expenses
Insurance expenses
Depreciation
Taxes and duesEnterprise tax
Provision of allowance for doubtful accounts
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Rent income
Share of profit of entities accounted for using equity method
Dividend income of insurance
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses
Share of loss of entities accounted for using equity method
Loss on sales and retirement of non-current assets
Other
Total non-operating expenses
Ordinary income

Fiscal year ended
March 31, 2022
(April 1, 2021 toMarch 31, 2022)

103,737
80,53523,201(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

628
8,746
361
316
997
585
1,176
434
468
108
336
(0)
157
1,382
15,701
7,500

715
9,084
370
295
1,092
608
1,286
376
502
108
353
(1)
185
1,456
16,435
8,341

222
57
439
41
49
149
63
1,024

236
56
42
41
196
86
659

21
47
113
65
248
8,276

36
50
143
72
34
338
8,662

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

6

113,045
88,26924,776NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Fiscal year ended
March 31, 2022
(April 1, 2021 toMarch 31, 2022)

Extraordinary income
Gain on sales of investment securities
Total extraordinary income
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(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

100
100
8,376
1,983
108
2,092
6,284
106
6,177

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

7

8,662
2,767
78
2,846
5,816
157
5,658

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Consolidated statements of comprehensive income

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 of parent
Comprehensive income attributable to non-controlling interests

Fiscal year ended
March 31, 2022
(April 1, 2021 toMarch 31, 2022)

6,284(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

233
(6)
45

(241)
16
(85)

411

641

684
6,968

330
6,146

6,865
102

5,987
159

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

8

5,816

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)

Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Cumulative effects ofchanges inaccounting policies
Restated balance at
beginning of current
periodChanges of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
Profit attributable toowners of parent
Purchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

3,000

Capital surplus

Retained earnings

Treasury stock

Total
shareholders’equity3,785

50,809(2,773)54,821

113
3,000

3,785

50,922113(2,773)54,934(1,009)(1,009)(1,009)(1,009)

6,177

6,177
(0)

(0)

―

―

4,158

(0)

4,157

3,000

3,785

55,080(2,773)59,092

Accumulated other comprehensive income
Valuationdifference on
available-for-sale securities
Balance at beginning ofcurrent period
Cumulative effects ofchanges inaccounting policies
Restated balance at
beginning of current
periodChanges of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
Profit attributable toowners of parent
Purchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

2,050

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income(232)591(1,226)

Noncontrollinginterests
1,281

Total
net assets

56,694113

2,050(1,226)

(232)

591

1,281

56,807(1,009)(1,009)
6,177
(0)
231

405

50

688

(2)

686

231

405

50

688

(2)

4,844

2,282

(820)

(181)

1,280

1,279

61,652

9NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

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

Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
Profit attributable toowners of parent
Purchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

3,000

Capital surplus

Retained earnings

Treasury stock

Total
shareholders’equity3,785

55,080(2,773)59,092(1,009)(1,009)(1,009)(1,009)

5,658

5,658
(0)

(0)

―

―

3,639

(0)

3,639

3,000

3,785

58,720(2,773)62,732

Accumulated other comprehensive income
Valuationdifference on
available-for-sale securities
Balance at beginning ofcurrent period
Changes of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
Profit attributable toowners of parent
Purchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

2,282

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
income

(181)

1,280

(820)

Noncontrollinginterests
1,279

Total
net assets

61,652(1,009)(1,009)
5,658
(0)
(246)

657

(82)

328

(140)

187

(246)

657

(82)

328

(140)

3,827

2,035

(162)

(264)

1,608

1,138

65,47910

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(4) Consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit (asset) liability
Increase (decrease) in allowance for doubtful accounts
Share of (profit) loss of entities accounted for using equity method
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of non-current assets
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in investments in silent partnership for business purposes
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable – trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

Fiscal year ended
March 31, 2022
(April 1, 2021 toMarch 31, 2022)(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

8,376
620
157
(48)
7
(1)
(439)
(222)
21
(127)
110
(100)
979
5
575
(114)
(1,584)
(504)
(300)
(99)
7,312
443
(21)
(3,278)4,456*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

11

8,662
695
185
27
(65)
(3)
143
(236)
36
(127)
71
(1,686)
10
744
(503)
713
297
(15)
(60)
8,889
397
(36)
(1,487)7,763

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment and intangible assets
Proceeds from sales of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Proceeds from guarantee deposits received
Repayments of guarantee deposits received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Repayments of long-term loans payable
Proceeds from long-term non-recourse loans payable
Repayments of long-term non-recourse loans payable
Repayments of lease obligations
Purchase of treasury shares
Repayments of investments in capital to non-controlling shareholders
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change 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, 2022
(April 1, 2021 toMarch 31, 2022)(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

(445)
345
(984)
2
(757)
105
412
(511)
(35)
46
(457)
468
378
(482)
74
(1,840)

(345)
345
(755)
29
(4,306)
370
105
(27)
37
(267)
456
147
(367)
66
(4,511)

3,200(3,200)
(375)
(468)
(111)
(0)
(2,018)(99)(3,074)71(386)
32,83032,4448,600(8,600)(375)
294(1,213)
(141)
(0)
(169)
(2,019)(94)(3,717)63(402)
32,44432,041*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

12

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(5) Notes to consolidated financial statements(Notes on the going concern assumption)
Not applicable.
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Company’s reportable segments are organizational units for which separate financial statements can be gathered.
These reportable segments are subject to periodical review by the Board of Directors to decide business resource
allocation and to evaluate performance.
The Company has five reportable segments that are classified by the characteristics and similarity in services
provided by the Group companies: Building Management and Operations, Residential Management and Operations,
Environmental Facilities Management, Real Estate Fund Management and Other Businesses.
Building Management and Operations focuses on building management and security services. Residential
Management and Operations mainly comprises the management of apartments and condominiums to own and public
housing. Environmental Facilities Management mainly comprises the management of water treatment, sewage
disposal, and other public facilities that support the living environment in general. Real Estate Fund Management
mainly comprises asset management (i.e., arrangement and asset management of real estate funds) and handlinginvestments in silent partnership. Other Businesses include mainly event planning and management, design and payroll
accounting services.
2. Calculation methods of net sales, income or losses, assets, liabilities and other items for each reportable segment
The accounting methods used for reportable segments are basically the same as those used for consolidated financial
statements.
3. Information on net sales, income or losses, assets, liabilities and other items for each reportable segment
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable segment

Building
Residential
Environmental Real EstateManagement Management
Facilities
Fund
and
and
Management Management
Operations
Operations

Other
Businesses

Adjustments(Note)

Total

Amountrecorded on
consolidated
financialstatements

Net sales
Net sales toexternal customers

71,977

16,98011,554

1,530

1,694

103,737―

103,737

―

―

―

―

300

300

(300)

―

Total

71,977

16,98011,554

1,530

1,995

104,038(300)

103,737

Segment income

9,912

1,693

1,580

43

314

13,544(6,044)7,500

Segment assets

25,732

12,245

4,298

4,228

1,057

47,56334,57882,141

212

40

22

70

16

360

313

674

1,358

6,313

64

25

―

7,761

―

7,761

433

77

37

60

10

619

674

1,293

Inter-segment
net sales and transfer

Other items
Depreciation
Investments in entities
accounted for using
equity method
Increase in property,
plant and equipment
and intangible assets(Notes) 1. Adjustments are as follows:(1) Adjustments of -6,044 million yen for segment income are elimination of intersegment transactions and unallocatedgeneral administrative expenses.
(2) Adjustments of 34,578 million yen for segment assets are corporate assets that are not allocated to any of the reportablesegments. They are mainly cash, time deposits, investment securities and the assets of the administration departments of
the Company.
(3) Adjustments of 674 million yen for increase in property, plant and equipment and intangible assets are due to extension oftraining facilities and system construction, etc.
2. Segment income has been adjusted to operating income described in consolidated statements of income.

13

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

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

Reportable segment

Building
Residential
Environmental Real EstateManagement Management
Facilities
Fund
and
and
Management Management
Operations
Operations

Other
Businesses

Adjustments(Note)

Total

Amountrecorded on
consolidated
financialstatements

Net sales
Net sales toexternal customers

77,691

18,13012,936

1,950

2,337

113,045―

113,045

―

―

―

―

310

310

(310)

―

Total

77,691

18,13012,936

1,950

2,647

113,355(310)

113,045

Segment income

10,649

1,825

1,697

60

369

14,602(6,261)

8,341

Segment assets

26,126

16,072

4,918

3,517

1,270

51,90535,26987,175

228

46

34

55

29

394

331

725

2,038

8,742

57

24

―

10,863―

10,863

463

119

117

82

46

829

414

1,243

Inter-segment
net sales and transfer

Other items
Depreciation
Investments in entities
accounted for using
equity method
Increase in property,
plant and equipment
and intangible assets(Notes) 1. Adjustments are as follows:(1) Adjustments of -6,261 million yen for segment income are elimination of intersegment transactions and unallocatedgeneral administrative expenses.
(2) Adjustments of 35,269 million yen for segment assets are corporate assets that are not allocated to any of the reportablesegments. They are mainly cash, time deposits, investment securities and the assets of the administration departments of
the Company.
(3) Adjustments of 414 million yen for increase in property, plant and equipment and intangible assets are due to renovationof systems and purchase of fixtures, etc.
2. Segment income has been adjusted to operating income described in consolidated statements of income.

[Related information]
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
1. Information related to product and service
Please refer to “Segment information.”
2. Information related to geographic region(1) Net sales
Not applicable because there are no net sales to external customers outside of Japan.
(2) Property, plant and equipment
Not applicable because there is no property, plant and equipment outside of Japan.
3. Information related to major customer
There is nothing to report because there is no external customer accounting for 10% or more of net sales reported in
the consolidated statements of income.
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
1. Information related to product and service
Please refer to “Segment information.”
2. Information related to geographic region(1) Net sales
Not applicable because there are no net sales to external customers outside of Japan.
(2) Property, plant and equipment
Not applicable because there is no property, plant and equipment outside of Japan.
3. Information related to major customer
There is nothing to report because there is no external customer accounting for 10% or more of net sales reported in
the consolidated statements of income.

14

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

[Information on impairment loss on non-current assets by reportable segment]
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Not applicable.
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Not applicable.
[Information on amortization of goodwill and unamortized balance of goodwill by reportable segment]
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)

Reportable segment

Amortization
for the current period
Unamortized balanceat the end of current
year

Building
Management
andOperations

Residential
Environmental Real Estate
Other
Management
Facilities
Fund
Businesses
andManagement Management
Operations

Subtotal

EliminationorCorporate

16

119

―

―

21

157

―

157

73

1,342

―

―

409

1,825

―

1,825

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

Reportable segment

Amortization
for the current period
Unamortized balanceat the end of current
year

Total

Building
Management
andOperations

Residential
Environmental Real Estate
Other
Management
Facilities
Fund
Businesses
andManagement Management
Operations

Subtotal

EliminationorCorporate

Total

16

119

7

―

43

185

―

185

57

1,222

161

―

366

1,807

―

1,807

[Information on gain on bargain purchase by reportable segment]
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Not applicable.
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Not applicable.

(Per share information)
Fiscal year ended March 31, 2022
(April 1, 2021 to March 31, 2022)

Fiscal year ended March 31, 2023
(April 1, 2022 to March 31, 2023)

Net assets per share
1,614.97 yen
Profit per share165.24 yen(Notes) 1. No diluted profit per share is presented as there were no potentially dilutive securities.
2. The basis of calculations of profit per share is as follows.
Fiscal year ended March 31, 2022
(April 1, 2021 to March 31, 2022)
Profit attributable to owners ofparent (millions of yen)Amount not attributable to ownersof common stock (millions of yen)
Profit attributable to owners ofparent associated with common
stock (millions of yen)
Average number of shares ofcommon stock during period(shares)

15

1,721.13 yen
151.37 yen

Fiscal year ended March 31, 2023
(April 1, 2022 to March 31, 2023)

6,177

5,658

―

―

6,177

5,658

37,383,416

37,383,265

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

3. The basis of calculations of net assets per share is as follows.
Fiscal year ended March 31, 2022
(As of March 31, 2022)
Total net assets (millions of yen)Amount deducted from total net assets(millions of yen)
(Of which, non-controlling interests(millions of yen))
Net assets associated with common
stock at the end of fiscal year
(millions of yen)
Number of shares of common stock
issued and outstanding (shares)
Number of shares of common stock as
treasury stock (shares)
Number of shares of common stockat end of fiscal year used in thecalculation of net assets per share

Fiscal year ended March 31, 2023
(As of March 31, 2023)

61,65265,479

1,279

1,138

(1,279)(1,138)60,37264,341

41,180,306

41,180,306

3,797,012

3,797,106

37,383,294

37,383,200(Significant subsequent events)(Establishment of a holding company through a single stock transfer)On April 3, 2023, NIPPON KANZAI Co., Ltd. established a holding company, NIPPON KANZAI Holdings Co., Ltd.,
as its wholly owning parent company through a single stock transfer and became its wholly owned subsidiary.
In addition, at an extraordinary general meeting of shareholders held on April 26, 2023, NIPPON KANZAI Co., Ltd.
resolved to distribute its subsidiary shares in kind to NIPPON KANZAI Holdings Co., Ltd. (eligible distribution in kind),and implemented the distribution on the same day. The distribution in kind of the relevant subsidiary shares will cause achange in the subsidiaries of NIPPON KANZAI Co., Ltd.
Furthermore, at the extraordinary general meeting of shareholders held on April 26, 2023, NIPPON KANZAI Co., Ltd.
made a resolution on the distribution in kind of the shares of NIPPON KANZAI Holdings Co., Ltd. it owns to the latter,and implemented the distribution on the same day.

16

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

4. Non-consolidated financial statements and key notes(1) Non-consolidated balance sheets
Fiscal year ended
March 31, 2022
(As of March 31, 2022)

ASSETS
Current assets
Cash and deposits
Notes receivable－trade
Accounts receivable－trade
Contract assets
Supplies
Prepaid expenses
Accounts receivable－other
Short-term loans receivable
Advances paid
Income taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Telephone subscription right
SoftwareLeased assets
Software in progress
Total intangible assets(Millions of yen)
Fiscal year ended
March 31, 2023
(As of March 31, 2023)

21,732
55
9,786
119
64
159
43
909
373
116
432
(2)
33,79021,38889
10,592
218
83
195
31
1,109
718
466
(1)
34,894

5,866(3,242)
2,624
218
(118)
100
6
(6)
0
89
(54)
35
1,223
(780)
443
971
697
(636)
60
21
4,256

5,957
(3,237)
2,720
226
(124)
101
6
(6)
0
88
(65)
23
1,328
(805)
522
954
728
(670)
57
4,381

19
374
0
70
464

19
356
0
164
540

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

17

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Long-term loans receivable from subsidiaries and associates
Prepaid pension cost
Lease and guarantee deposits
Membership
Claims provable in bankruptcy,
claims provable in rehabilitation and other
Buildings for rent
Accumulated depreciation
Buildings for rent, net
Land for rent
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
TOTAL ASSETS

Fiscal year ended
March 31, 2022
(As of March 31, 2022)(Millions of yen)
Fiscal year ended
March 31, 2023
(As of March 31, 2023)

6,504
11,080
17
1,138
818
1,014
328

6,717
11,791
15
3,679
858
1,013
323

24

24

107
(51)
55
53
127
(52)
21,11025,831
59,622

107
(53)
53
53
140
(52)
24,61929,54164,435*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

18

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Fiscal year ended
March 31, 2022
(As of March 31, 2022)

LIABILITIESCurrent liabilities
Notes payable－trade
Accounts payable－trade
Current portion of long-term loans payable
Lease obligations
Accounts payable－other
Income taxes payable
Accrued consumption taxes
Accrued salaries
Accrued social insurance
Deposits received
Deposits received from subsidiaries and associates
Contract liabilities
Provision for bonuses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Long-term guarantee deposited
Asset retirement obligations
Other
Total non-current liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS(Millions of yen)
Fiscal year ended
March 31, 2023
(As of March 31, 2023)

29
4,722
375
36
528
506
673
272
150
800
1,268
386
7
15
9,773

24
5,318
375
31
315
1,108
709
703
278
165
800
1,085
376
160
11,452

375
41
586
310
122
625
2,061
11,834

34
528
311
198
620
1,693
13,146

3,000

3,000

498
3,257
3,756

498
3,257
3,756

251

251

12,31029,133
41,694(2,773)45,677

12,31032,92545,486(2,773)49,4692,110
2,110
47,78759,622

1,819
1,819
51,28964,435*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

19

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(2) Non-consolidated statements of income
Fiscal year ended
March 31, 2022
(April 1, 2021 toMarch 31, 2022)

Net sales
Service revenue
Net sales of goods
Total net sales
Cost of sales
Cost of service sales
Cost of goods soldTotal cost of sales
Gross profit
Selling, general and administrative expenses
Promotion expenses
Advertising expenses
Directors’ compensations
Salaries and allowances
Bonuses
Provision for bonuses
Retirement benefit expenses
Legal welfare expenses
Welfare expenses
Training expenses
Offering expenses
Entertainment expenses
Traveling and transportation expenses
Vehicle expenses
Communication expenses
Utilities expenses
Supplies expenses
Stationery expenses
Taxes and duesEnterprise tax
Depreciation
Repair expenses
Insurance expenses
Rent expenses
Membership expenses
Commission fee
Contribution
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

63,869383
64,25370,025481
70,50750,054302
50,356
13,89655,446378
55,825
14,681

5
334
586
3,079
469
165
150
622
107
21
29
331
256
105
163
45
61
302
73
276
381
5
402
648
18
468
30
0
164
9,305
4,590

7
365
576
3,256
506
148
153
645
57
18
38
391
320
109
171
56
54
328
77
291
404
4
342
727
18
517
16
(1)
163
9,771
4,909

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

20

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

Fiscal year ended
March 31, 2022
(April 1, 2021 toMarch 31, 2022)

Non-operating income
Interest income
Dividend income
Rent income
Dividend income of insurance
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of investment securities
Rent expenses
Loss on sales and retirement of non-current assets
Miscellaneous loss
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on extinguishment of tie-in shares
Total extraordinary losses
Profit before income taxes
Income taxes－current
Income taxes－deferred
Total income taxes
Profit(Millions of yen)
Fiscal year ended
March 31, 2023
(April 1, 2022 toMarch 31, 2023)

44
1,861
57
28
149
74
2,217

86
2,320
56
28
196
67
2,756

18
47
48
28
143
6,664

29
1
50
52
11
145
7,520

26
26
6,638
880
105
986
5,651

7,520
1,638
71
1,710
5,810

*English translation of some items has been changed to correspond with EDINET taxonomy published by FSA.

21

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

(3) Non-consolidated statements of changes in equity
Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)

Shareholders’ equity
Capital surplus
Capitalstock

Balance at beginning ofcurrent period
Cumulative effects ofchanges inaccounting policies
Restated balance at
beginning of current
periodChanges of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]

3,000

3,000

Legal capital Other capitalsurplussurplus

498

498

3,257

3,257

Total capitalsurpluses

Legalretainedearnings

3,756

251

3,756

251

Retained earnings
Other retained
earnings
Retained
General earnings
reservebrought
forward12,31012,310

ProfitPurchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

25,43037,99170

70

25,50038,061(1,009)(1,009)(1,009)(1,009)

5,651

5,651

―

―

―

―

―

―

3,633

3,633

3,000

498

3,257

3,756

251

12,31029,133

41,694

Valuation and translation
adjustments
Valuation
Total
Total
difference on
valuation andshareholders’availabletranslation
equityfor-saleadjustments
securities

Total
net assets

Shareholders’ equity
Treasurystock
Balance at beginning ofcurrent period
Cumulative effects ofchanges inaccounting policies
Restated balance at
beginning of current
periodChanges of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
ProfitPurchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Total
retainedearnings(2,773)

41,974

1,892

1,892

70
(2,773)(0)42,04543,866
70

1,892

1,892

43,937(1,009)(1,009)(1,009)(1,009)

5,651

5,651

(0)

(0)
218

218

218

(0)

3,632

218

218

3,850

(2,773)45,677

2,110

2,110

47,78722

NIPPON KANZAI Co., Ltd. (9728) Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023

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

Shareholders’ equity
Capital surplus
Capitalstock

Balance at beginning ofcurrent period
Changes of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
ProfitPurchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

3,000

Legal capital Other capitalsurplussurplus

498

3,257

Total capitalsurpluses

Legalretainedearnings

3,756

251

12,310Total
retainedearnings

29,133

41,694(1,009)(1,009)(1,009)(1,009)

5,810

5,810

―

―

―

―

―

―

3,791

3,791

3,000

498

3,257

3,756

251

12,31032,92545,486

Valuation and translation
adjustments
Valuation
Total
difference on
Totalvaluation andshareholders’availabletranslation
equityfor-saleadjustments
securities

Total
net assets

Shareholders’ equity
Treasurystock
Balance at beginning ofcurrent period
Changes of items
during period
Dividends of surplus[year-end]
Dividends of surplus[interim]
ProfitPurchase of treasurystock
Net changes of items
other thanshareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Retained earnings
Other retained
earnings
Retained
General earnings
reservebrought
forward(2,773)(0)45,677

2,110

2,110

47,787(1,009)(1,009)(1,009)(1,009)

5,810

5,810

(0)

(0)
(290)

(290)

(290)

(0)

3,791

(290)

(290)

3,501

(2,773)49,469

1,819

1,819

51,28923