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.

May 11, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(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 DepartmentTelephone:+81-3-6880-2710
Scheduled date of annual general meeting of shareholders:June 27, 2023
Scheduled date to commence dividend payments:
June 28, 2023
Scheduled date to file annual securities report:
June 27, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

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

Millions of yen% Millions of yen

53,74553,231

Note: Comprehensive income

1.0(3.6)

Reference:

2,688
3,068

% Millions of yen(12.4)(27.3)

3,081
3,304

% Millions of yen(6.7)(30.7)

2,137
2,403%(11.1)(26.7)[18.8%][(47.7)%]

Ratio of ordinary
Ratio of operating
profit to total
profit to net sales
assetsDiluted earnings
per share

Return on equity

Yen%%%

3.8
4.4

3.8
4.1

5.0
5.8

Yen85.07
95.55

Profit attributable toowners of parent

Ordinary profit

For the fiscal year ended March 31, 2023 ¥2,133 million
For the fiscal year ended March 31, 2022 ¥1,795 million

Basic earnings
per share
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit––

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023 ¥270 million
For the fiscal year ended March 31, 2022
¥65 million

(2) Consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%Yen82,85379,85756,78355,50468.5
69.5

2,275.78
2,206.82

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodEquityAs of March 31, 2023:
As of March 31, 2022:¥56,783 million¥55,504 million(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2,168
2,625(830)(455)(1,327)(1,088)

7,838
7,828

2. Cash dividends
Annual dividends

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

Total cash
dividends(Total)Ratio ofPayout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%%

–––

27.00

27.00

679

28.3

1.2–––

27.00

27.00

673

31.7

1.2–––

30.00

30.00

32.5Breakdown of the year-end dividend for the fiscal year ended March 31, 2022:
Breakdown of the year-end dividend for the fiscal year ended March 31, 2023:
Breakdown of the year-end dividend forecast for the fiscal year ending March 31, 2024:

Ordinary dividend of ¥27.00
Ordinary dividend of ¥27.00
Ordinary dividend of ¥30.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 toMarch 31, 2024)
Net sales
Millions of yen
Fiscal year endingMarch 31, 2024

58,000(Percentages indicate year-on-year changes.)
BasicProfit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit% Millions of yen

7.9

2,960% Millions of yen

10.1

3,300% Millions of yen

7.1

2,300%

Yen

7.6

92.18

* 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) 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
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

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 March 31, 2023

666,465 shares

As of March 31, 2022

466,416 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

25,120,520 sharesFiscal year ended March 31, 2022

25,151,316 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Millions of yen

47,19747,250% Millions of yen

(0.1)
(2.2)

Basic earnings pershare
Fiscal year ended
March 31, 2023
March 31, 2022

(Percentages indicate year-on-year changes.)

2,293
2,770

% Millions of yen(17.2)(22.5)

Diluted earnings pershare

Yen

66.80
87.86

Ordinary profit

Yen––

2,466
2,990

Profit% Millions of yen(17.5)(22.0)

1,678
2,209%(24.1)(14.5)

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022
Reference:

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

67,27464,82443,32842,43864.4
65.5

1,736.53
1,687.32Equity
As of March 31, 2023
As of March 31, 2022

¥43,328 million¥42,438 million

2. Non-consolidated earnings forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023
to March 31, 2024)
Net sales
Millions of yen

Fiscal year ending
March 31, 2024

50,600(Percentages indicate year-on-year changes.)
Basic earnings perProfit
share

Ordinary profit% Millions of yen

7.2

2,770

% Millions of yen

12.3

1,920%

Yen

14.4

76.95

* Financial results reports are exempt from audit conducted by certified public accountants or an auditcorporation.
* 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.

NIPPON RIETEC CO., LTD. (1938)

Consolidated financial statements(1) Consolidated balance sheet(Thousands of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts and otherCosts on construction contracts in progress
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherTotal current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Machinery, vehicles, tools, furniture andfixtures
Land
Leased assets
Construction in progress
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-1-

As of March 31, 2022

As of March 31, 2023

7,841,834

7,851,390

35,052,626

37,238,887

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

725,21491,445
7,158
278,813
337,487
46,530,397

15,493,262

15,775,565

4,522,550

4,713,529

8,132,696
2,657,473
112,402(11,048,109)
19,870,274
605,945

8,132,764
3,236,932
53,133(11,860,158)
20,051,767
581,609

14,397,294
501,475
382,325(4,425)
15,276,669
35,752,889
79,857,670

14,664,222
623,585406,666(4,425)
15,690,050
36,323,427
82,853,824

NIPPON RIETEC CO., LTD. (1938)(Thousands of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts and other
Electronically recorded obligations - operating
Income taxes payable
Advances received on construction contracts inprogress
Provision for warranties for completed
construction
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Lease liabilities
Provision for retirement benefits for directors(and other officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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 March 31, 2023

6,750,303

7,365,237

2,719,159
825,223

2,902,158
1,081,965

110,265

227,737

7,708

2,645

1,205,657

1,423,803

55,65470,2555,459,709
17,133,682

5,277,102
18,350,905

1,489,875

1,788,888

31,38732,0255,317,423
380,956
7,219,642
24,353,325

5,526,060
372,322
7,719,297
26,070,202

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

1,430,962
3,205,423
51,025,267(518,943)
55,142,709

1,660,479

1,721,278(16,265)
1,644,213
55,504,345
79,857,670(80,365)
1,640,912
56,783,621
82,853,824

NIPPON RIETEC CO., LTD. (1938)(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Thousands of yen)
Fiscal year ended
March 31, 2022
Net sales
Net sales of completed construction contracts
Net sales in sideline businesses
Net sales in real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction contracts
Cost of sales in sideline businesses
Cost of sales in real estate businessTotal cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit on sideline business
Gross profit on real estate businessTotal gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on sale of goodsShare of profit of entities accounted for using equity
methodMiscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
National subsidies
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-3-

Fiscal year ended
March 31, 2023

50,380,940
2,461,173
389,20953,231,323

50,525,222
2,824,691
395,232
53,745,147

43,363,910
1,965,154
191,646
45,520,712

43,673,500
2,176,094
194,33146,043,925

7,017,029
496,018
197,562
7,710,610
4,641,973
3,068,637

6,851,722
648,597
200,901
7,701,221
5,012,892
2,688,328

574
136,127
49,213761
129,183
13,686

65,831

270,284

78,745
330,491

77,893491,809

63,841
30,611
94,452
3,304,676

60,27938,14698,426
3,081,712

40,383
184,826
27,473
252,683

2,174
46,0381,273
49,48618,18718,1873,539,172
805,014331,004
1,136,018
2,403,153–
2,403,153

58,82858,8283,072,370
1,058,550(123,285)
935,264
2,137,106–
2,137,106

NIPPON RIETEC CO., LTD. (1938)

Consolidated statement of comprehensive income(Thousands of yen)
Fiscal year ended
March 31, 2022
ProfitOther 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-

Fiscal year ended
March 31, 2023

2,403,153

2,137,106(483,319)(110,761)

66,562(64,099)(13,383)(5,764)(607,463)
1,795,689(3,301)2,133,804

1,795,689

2,133,804––

NIPPON RIETEC CO., LTD. (1938)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Share capital

Capital surplus

Retainedearnings

1,430,962

3,205,423

48,092,631

Treasury shares

Total
shareholders’equity(343,434)

52,385,582(249,452)
1,430,962

3,205,423

47,843,179(249,452)(343,434)

52,136,130

Changes during period
Dividends of surplus(679,086)(679,086)

Profit attributable toowners of parent

2,403,153

2,403,153

Purchase of treasury
shares(65)(65)

1,724,066(65)

1,724,001

49,567,246(343,500)

53,860,131

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

1,430,962

3,205,423

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifference on
available-for-salesecurities

Remeasurements ofdefined benefit
plans

2,157,182

94,495

Total accumulated
othercomprehensive
income2,251,677

Total net assets

54,637,260(249,452)

2,157,182

94,4952,251,677

54,387,808

Changes during period
Dividends of surplus(679,086)

Profit attributable toowners of parent

2,403,153

Purchase of treasury
shares(65)

Net changes in items
other than shareholders’equity(496,702)(110,761)(607,463)(607,463)

Total changes during period(496,702)(110,761)(607,463)

1,116,537

Balance at end of period

1,660,479(16,265)

1,644,213

55,504,345-5-

NIPPON RIETEC CO., LTD. (1938)

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

Balance at beginning ofperiod
Cumulative effects ofchanges in accounting
policies
Restated balance

Treasury shares

Total
shareholders’equity49,567,246(343,500)

53,860,131

49,567,246(343,500)

53,860,131

Share capital

Capital surplus

Retainedearnings

1,430,962

3,205,423

1,430,962

3,205,423

Changes during period
Dividends of surplus(679,085)(679,085)

Profit attributable toowners of parent

2,137,106

2,137,106

Purchase of treasury
shares(175,443)(175,443)

1,458,020(175,443)

1,282,577

51,025,267(518,943)

55,142,709

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

1,430,962

3,205,423

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifference on
available-for-salesecurities

Remeasurements ofdefined benefit
plans

1,660,479(16,265)

1,644,213

55,504,345

1,660,479(16,265)

1,644,213

55,504,345

Total accumulated
othercomprehensive
incomeTotal net assets

Changes during period
Dividends of surplus(679,085)

Profit attributable toowners of parent

2,137,106

Purchase of treasury
shares(175,443)

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

60,798(64,099)(3,301)(3,301)60,798(64,099)(3,301)

1,279,276

1,721,278(80,365)

1,640,912

56,783,621-6-

NIPPON RIETEC CO., LTD. (1938)(4) Consolidated statement of cash flows(Thousands of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale and retirement of property, plantand equipment
Loss (gain) on sale of investment securities
National subsidies
Decrease (increase) in trade receivables
Decrease (increase) in costs on construction
contracts in progress
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accrued expenses
Increase (decrease) in advances received on
construction contracts in progress
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from deposits for sale of property, plantand equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Proceeds from national subsidies
OtherNet cash provided by (used in) investing activities-7-

Fiscal year ended
March 31, 2023

3,539,172
1,246,689(664,793)

3,072,370
1,377,314
218,145(10,574)

14,600(1,277)(5,062)(1,334)638(8,059)(136,702)
63,841

116,273(129,945)
60,279(65,831)(270,284)(22,196)

56,653(184,826)(27,473)
771,191(46,038)(1,273)(2,186,260)

55,345(58,203)229,998(897,271)(15,759)(189,249)
798,614(8,832)(26,014)

117,472

36,2883,880,411
196,624(64,096)(1,387,523)
2,625,416(94,972)
2,842,238
188,943(60,279)(802,681)
2,168,220(13,007)
13,007(537,927)
168,156(13,007)
13,007(743,333)
2,174

–

7,700

(14,292)(29,995)(308,771)(1,572)
210,250(19,417)
20,56027,473500(455,039)(142,615)–
80,622(74,900)
68,3241,273(100)(830,850)

NIPPON RIETEC CO., LTD. (1938)(Thousands of yen)
Fiscal year ended
March 31, 2022
Cash flows from financing activities
Repayments of finance lease liabilities
Purchase of treasury shares
Dividends paid
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-8-

Fiscal year ended
March 31, 2023

(411,194)(65)(677,584)(1,088,844)(473,801)(175,443)(678,570)(1,327,814)––

1,081,531
6,747,295
7,828,827

9,555
7,828,827
7,838,382