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.

November 7, 2022

Consolidated Financial Results
for the Six Months Ended September 30, 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:
November 10, 2022
Scheduled date to commence dividend payments:–Preparation of supplementary material on quarterly financial results: Yes (in Japanese only)
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2022 (from April 1, 2022 toSeptember 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended
September 30, 2022
September 30, 2021

Operating profit

Millions of yen

(5.0)
(5.0)

Six months ended
September 30, 2022
September 30, 2021

% Millions of yen(1,055)(439)––(927)(325)

For the six months ended September 30, 2022
For the six months ended September 30, 2021

Basic earnings pershare

Profit attributable toowners of parent

Ordinary profit% Millions of yen

20,01021,059Note: Comprehensive income(Percentages indicate year-on-year changes.)% Millions of yen––(714)(248)¥(610) million [–%]¥(339) million [–%]

Diluted earnings pershareYen

Yen(28.41)(9.89)––(2) Consolidated financial position
Total assets
As ofSeptember 30, 2022
March 31, 2022
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

77,76979,85754,21455,504

69.7
69.5

EquityAs of September 30, 2022:
As of March 31, 2022:¥54,214 million¥55,504 million%––

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-end

Fiscal year-end

Yen

Yen

Yen––––

Fiscal year ending
March 31, 2023
(Forecast)

TotalYenYen–

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

54,000(Percentages indicate year-on-year changes.)
BasicProfit attributable toOrdinary profit
earnings perowners of parentshare

Operating profit% Millions of yen

1.4

2,900% Millions of yen

(5.5)

3,140

Note: Revisions to the earnings forecasts most recently announced: None% Millions of yen(5.0)

2,200%Yen(8.5)

87.47

* 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 September 30, 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 September 30, 2022466,416 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)
Six months ended September 30, 2022

25,151,301 shares

Six months ended September 30, 2021

25,151,328 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 oninformation 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)

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
OtherTotal current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and vehicles, netTools, furniture and fixtures, netLand
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-

As of March 31, 2022

As of September 30, 2022

7,841,834

6,391,008

35,052,626

32,129,637

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

1,933,995
88,501
8,259
265,264743,118
41,559,786

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

9,174,899
351,935
285,063
8,132,696
1,851,823
227,947
20,024,366
637,702

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

14,422,162
1,130,337(4,425)
15,548,075
36,210,144
77,769,930

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 September 30, 2022

6,750,303

4,356,533

2,719,159–
825,2232,251,237
3,500,000
82,701

110,265

327,387

7,708

2,592

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

990,137
4,614,975
16,125,564

5,317,423

5,363,702

31,38728,2271,870,831
7,219,642
24,353,325

2,038,053
7,429,983
23,555,547

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

1,430,9623,205,423
48,173,658(343,500)
52,466,543

1,660,479

1,755,971(16,265)
1,644,213
55,504,345
79,857,670(8,132)
1,747,839
54,214,382
77,769,930

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)Six months ended
September 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating 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 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
Loss before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
LossProfit attributable to non-controlling interests
Loss attributable to owners of parent-3-

Six months ended
September 30, 2022

21,059,425
19,188,404
1,871,020
2,310,225(439,204)

20,010,071
18,565,907
1,444,164
2,499,823(1,055,659)

284
95,656
97,543
26,406
219,890307
90,82895,78935,600222,526

23,96923,77477,36553,636

5,340
106,674(325,988)

17,00094,411(927,545)

39,770–39,770

–
100
100

2,233
2,233
(288,451)
43,393(83,048)(39,655)(248,796)–(248,796)

44,78344,783(972,228)
33,619(291,344)(257,725)(714,503)–(714,503)

NIPPON RIETEC CO., LTD. (1938)

Quarterly consolidated statement of comprehensive income (cumulative)(Thousands of yen)Six months ended
September 30, 2021
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-

Six months ended
September 30, 2022

(248,796)(714,503)(44,307)(47,247)

95,339
8,132

1,316

152

(90,238)(339,035)

103,625(610,877)(339,035)(610,877)––

NIPPON RIETEC CO., LTD. (1938)(3) Quarterly consolidated statement of cash flows(Thousands of yen)Six months ended
September 30, 2021
Cash flows from operating activities
Loss 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 loss on
construction contracts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
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
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
Purchase of property, plant and equipment
Proceeds from sale of property, plant and 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
Other
Net cash provided by (used in) investing activities-5-

Six months ended
September 30, 2022

(288,451)
582,241(891,140)(972,228)
654,386(215,520)(66,229)(55,654)(1,316)(5,116)

2,957–(6,959)57,997(5,270)(3,160)(95,940)
23,969(91,135)
23,77477,36553,636(37,536)

44,783–
1,893,937(100)
2,922,989(979,901)(1,266,984)(234,889)(3,337,462)(144,462)(508,354)(2,861,011)(94,587)

790,039

217,122(353,155)(3,072,205)
155,862(24,161)(1,306,721)(4,247,226)(772,946)(2,872,110)
150,133(23,774)(718,039)(3,463,790)(206,004)
148,445(519,866)–(1,737)(8,590)(247,129)(800)–(5,949)10,604264(302,306)(2,934)–
174(62,900)
8,645(91)(585,562)

NIPPON RIETEC CO., LTD. (1938)(Thousands of yen)Six months ended
September 30, 2021
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
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-6-

Six months ended
September 30, 2022

5,000,000(185,492)(65)(676,797)
4,137,643

3,500,000(223,853)–(677,620)
2,598,526––(411,889)
6,747,295
6,335,406(1,450,826)
7,828,827
6,378,001