Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

February 7, 2023

Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Under Japanese GAAP)
Company name:NIPPON RIETEC CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:
1938
URL:
https://www.j-rietec.co.jp/
Representative:
Shigeru Egusa, Representative Director and President
Inquiries:
Masaaki Sawamura, Director and General Manager of Finance Department
Telephone:+81-3-6880-2710
Scheduled date to file quarterly securities report:
February 10, 2023
Scheduled date to commence dividend payments:–Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022
to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
December 31, 2022
December 31, 2021

Operating profit

Millions of yen% Millions of yen

32,30534,081

Note: Comprehensive income

(5.2)
(3.0)

% Millions of yen

(862)
218

Profit attributable toowners of parent

Ordinary profit–(89.7)(667)
403

For the nine months ended December 31, 2022
For the nine months ended December 31, 2021

Basic earnings pershare
Nine months ended
December 31, 2022
December 31, 2021

(Percentages indicate year-on-year changes.)% Millions of yen–(84.3)¥(447) million [–%]¥(202) million [–%]

Diluted earnings per
shareYen

Yen(21.29)
9.44––(2) Consolidated financial position
Total assets
As ofDecember 31, 2022
March 31, 2022
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

82,22479,85754,37755,50466.1
69.5

EquityAs of December 31, 2022:
As of March 31, 2022:¥54,377 million¥55,504 million(535)
237%–(86.5)

2. Cash dividends
Annual dividends
First quarter-end
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

Second quarter-end Third quarter-endYenYenYen––––––

Fiscal year-end

Fiscal year ending
March 31, 2023
(Forecast)

TotalYen

Yen

27.00

27.00

27.00

27.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 toMarch 31, 2023)
Net sales
Millions of yen
Fiscal year ending
March 31, 2023

50,500(Percentages indicate year-on-year changes.)
BasicProfit attributable toOrdinary profit
earnings perowners of parentshare

Operating profit% Millions of yen(5.1)

1,800% Millions of yen(41.3)

2,150

Note: Revisions to the earnings forecasts most recently announced: Yes% Millions of yen(34.9)

1,570%Yen(34.7)

62.42

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included:– companies
Excluded:– companies(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

25,617,717 shares

As of March 31, 2022

25,617,717 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2022

466,416 shares

As of March 31, 2022

466,416 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of thefiscal year)
Nine months ended December 31, 2022

25,151,301 shares

Nine months ended December 31, 2021

25,151,320 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts, stated in these materials are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ from the consolidated forecasts due to various factors.

NIPPON RIETEC CO., LTD. (1938)

Quarterly consolidated financial statements(1) Quarterly consolidated balance sheet(Thousands of yen)
As of March 31, 2022

As of December 31, 2022

7,841,834

5,257,755

35,052,626

36,138,296

667,01085,021
7,728
250,867
199,692
44,104,781

3,177,969
85,561
12,031
282,256
1,125,372
46,079,243

9,421,878
259,979
284,386
8,132,696
1,658,931
112,402
19,870,274
605,945

9,170,651
307,853
264,192
8,132,764
1,957,570
201,730
20,034,762
612,705

14,397,294
883,800(4,425)
15,276,669
35,752,889
79,857,670

14,429,163
1,073,239(4,425)
15,497,977
36,145,445
82,224,688

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and other
Costs on construction contracts in progress
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and vehicles, netTools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-1-NIPPON RIETEC CO., LTD. (1938)(Thousands of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts and other
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Advances received on construction contracts inprogress
Provision for warranties for completed
construction
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Retirement benefit liability
Provision for retirement benefits for directors(and other officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-2-

As of March 31, 2022

As of December 31, 2022

6,750,303

4,653,998

2,719,159–
825,2232,700,131
6,500,000
47,253

110,265334,693

7,708

2,557

1,205,657
5,515,364
17,133,682

623,908
5,452,633
20,315,176

5,317,423

5,372,380

31,38729,9371,870,831
7,219,642
24,353,325

2,129,497
7,531,815
27,846,991

1,430,962
3,205,423
49,567,246(343,500)
53,860,131

1,430,962
3,205,423
48,352,655(343,500)
52,645,540

1,660,479

1,736,222(16,265)
1,644,213
55,504,345
79,857,670(4,066)
1,732,156
54,377,697
82,224,688

NIPPON RIETEC CO., LTD. (1938)(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income
Quarterly consolidated statement of income (cumulative)(Thousands of yen)
Nine months ended
December 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Gain on sale of goods
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent-3-

Nine months ended
December 31, 2022

34,081,109
30,450,744
3,630,364
3,411,819
218,545

32,305,550
29,478,922
2,826,627
3,688,884(862,256)422
129,384
136,32952,085318,222467
122,001
117,792
51,196
291,457

43,58340,51280,44022,224

9,705
133,730
403,037

33,681
96,417(667,216)

40,383–40,383

1,174
100
1,275

2,287
2,287
441,134
64,694
139,109203,803237,330–
237,330

44,78344,783(710,725)
42,504(217,724)(175,219)(535,505)–(535,505)

NIPPON RIETEC CO., LTD. (1938)

Quarterly consolidated statement of comprehensive income (cumulative)(Thousands of yen)
Nine months ended
December 31, 2021
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
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 ofparent
Comprehensive income attributable to noncontrolling interests-4-

Nine months ended
December 31, 2022

237,330(535,505)(359,395)(70,871)

84,743
12,199(9,784)(9,000)(440,051)(202,721)

87,942(447,563)(202,721)(447,563)––