Kozo Keikaku Engineering : Financial Results for FYE June 2023

FYE June 2023 (65th Term)

Financial Results

2023.09.15

https://www.kke.co.jp/

Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

Agenda

1. Overview of Financial Results
2. Overview of Results by Segment
3. To Continue to Provide Value That Is Useful to Society
4. Forecast for Fiscal Year Ending June 30, 2024 (66th term)

Note pertaining to this data:

• In principle, monetary amounts included in this document are rounded down to the nearest million yen.
• The forward-looking statements included in this document are based on information currently available to the Company and on certain preconditions that the Company deems reasonable. The Company provides no guarantee that what is stated will actually be realized.
• The names of companies, systems, and products included in this document are, as a general rule, trademarks or registered trademarks of companies, including KOZO KEIKAKU ENGINEERING Inc.

https://www.kke.co.jp/	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

1 Overview of Financial Results

https://www.kke.co.jp/	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

Income Statement

				(Million yen)
	FYE June 2022	FYE June 2023	Change from	Rate of
	change from
	(64th term)	(65th term)	previous FY
	previous FY
Net sales	14,748	16,580	1,832	12.4%
Cost of sales	7,025	8,048	1,022	14.6%
Gross profit	7,723	8,532	809	10.5%
(Gross margin)	(52.4%)	(51.5%)
SGA expenses	5,746	6,342	596	10.4%
Operating income	1,976	2,189	212	10.8%
(Operating margin)	(13.4%)	(13.2%)
Non-operating profit & loss	-29	-88	-59	－
Ordinary income	1,947	2,101	153	7.9%
(Ordinary margin)	(13.2%)	(12.7%)
Extraordinary profit & loss	-80	-25	55	－
Net income before taxes	1,866	2,075	208	11.2%
Income taxes	507	462	-44	-8.8%
Net income	1,359	1,613	253	18.7%
(Net margin)	(9.2%)	(9.7%)

https://www.kke.co.jp/			4
	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

Trends in Results

Income (Million yen)

Operating income

Ordinary income

Net income

Net sales

Net sales (Million yen)

2,700							18,000
							16,580
2,400							16,000
							14,748
2,100					13,432	13,631	14,000
1,800			11,852	11,500	11,966		12,000
	11,003	10,947
10,648
1,500							10,000
1,200							8,000
900							6,000
600							4,000
300							2,000
0							0

FYE June	FYE June	FYE June	FYE June	FYE June	FYE June	FYE June	FYE June	FYE June	FYE June
2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
(56th term)	(57th term)	(58th term)	(59th term)	(60th term)	(61st term)	(62nd term) (63rd term)	(64th term)	(65th term)

https://www.kke.co.jp/	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.	5

Balance Sheet

								(Million yen)
	Item	FYE June 2022	FYE June 2023	Change	Item	FYE June 2022	FYE June 2023	Change
	(64th term)	(65th term)	(64th term)	(65th term)
Cash and deposits	2,560	2,399	-160	Short-term borrowings	ー	ー	ー
Notes / accounts receivable -	2,689	2,780	90	Current portion of long-term	896	958	61
borrowings / corporate bonds
trade and contract assets
Work in process	22	22	0	Advances received	1,056	1,197	140
Other	1,486	1,751	264	Accounts payable - accrued	1,434	1,750	316
expenses
					Other	2,047	1,791	-255
	[Current assets]	6,759	6,954	195	[Current liabilities]	5,434	5,697	262
Property, plant and equipment	5,538	5,427	-111	Long-term borrowings /	1,215	650	-565
corporate bonds
Intangible assets	361	378	16	Provision for retirement benefits	2,252	2,316	64
Investments and other assets	4,562	5,547	984	Other	289	342	52
	Investment securities	2,097	2,777	680	[Long-term liabilities]	3,756	3,308	-447
	Shares of subsidiaries and	836	1,109	273	[Liabilities]	9,191	9,006	-185
	associates
	Investments in capital of	55	56	0	Capital stock	1,010	1,010	ー
	subsidiaries and associates
	Deferred tax assets	1,156	1,177	21	Capital surplus	1,325	1,353	27
	Other	416	425	8	Retained earnings	6,154	7,121	966
	[Fixed assets]	10,462	11,353	890	Treasury shares	-623	-613	10
					Other securities	164	430	266
					Valuation difference on
					available-for-sale securities
					[Net assets]	8,030	9,301	1,271
	[Assets]	17,221	18,307	1,086	[Liabilities and net assets]	17,221	18,307	1,086

• Impact of introducing ESOP: FYE June 2022: 83 million yen is included in Other of current assets, 203 million yen in treasury shares, and 206 million yen in current portion of long-term borrowings. FYE June 2023: 38 million yen is included in Other of current assets, 410 million yen in treasury shares, and 393 million yen in current portion of long-term borrowings.

* Capital ratio

FYE June 2022: 46.6%; FYE June 2023: 50.8%

https://www.kke.co.jp/	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.	6

[Reference] Changes in Net Interest-Bearing Debt

Interest-bearing debt/Net interest-bearing debt

10,000

8,000

6,000

4,000

2,000

0

Interest-bearing debt unrelated to the ESOP trust			Interest-bearing debt related to the ESOP trust	(Million yen)
Net interest-bearing debt			Interest expenses			200

As of FYE June 2023 (excluding ESOP)
- Net interest-bearing debt: -791 million yen		160
(-1,184 million yen)
* Excess cash
- Interest-bearing debt: 1,608 million yen		120
(1,215 million yen)
		80	Interest
		expenses
		40 ESOP
			393 million yen
			Not attributable
			to ESOP
			1,215 million yen
		0

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

FYE June

-40

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

(41st term)

(42nd term) (43rd term)

(44th term)

(45th term)

(46th term)

(47th term)

(48th term)

(49th term)

(50th term)

(51st term)

(52nd term) (53rd term)

(54th term)

(55th term)

(56th term)

(57th term)

(58th term)

(59th term)

(60th term)

(61st term)

(62nd term) (63rd term)

(64th term) (65th term)

https://www.kke.co.jp/			7
	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

Cash Flow Statement Highlights

			(Million yen)
	FYE June 2022	FYE June 2023	Change
	(64th term)	(65th term)
Balance at the beginning	2,120	2,560	440
of FY
CF from operations	2,105	1,797	-308
CF from investments	-700	-865	-164
Free CF	1,404	932	-472
CF from financing	-964	-1,092	-128
Balance at the end of FY	2,560	2,399	-160

https://www.kke.co.jp/			8
	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

Cash Flow Statement Highlights

(Million yen)

	1,797			Breakdown of CF from operations
				- Net income before taxes	2,075
				- Depreciation	298
				- Increase in provision for share-based	55
				- Increase in provision for retirement benefits 64
				- Increase in accounts receivable-trade	-90
	-865			- Increase in inventories	-53
			- Increase in accrued expenses	316
				- Decrease in accounts payable - other	-123
				- Income taxes paid	-907
2,560			2,399
			Breakdown of CF from investments
	-1,092
		- Purchase of property, plant and equipment	-80
				- Purchase of intangible assets	-134
				- Purchase of investment securities	-448
				- Purchase of shares of subsidiaries and
				associates	-181
				- Payments of loan receivables	-14
				Breakdown of CF from financing
				- Net decrease in long-term borrowings	-403
				- Acquisition of treasury shares	-910
				- Disposal of treasury shares	972
				- Dividend payments	-647
Cash and deposits at	CF from operations CF from investments	CF from financing	Cash and deposits at
the beginning of FY			the end of FY

https://www.kke.co.jp/			9
	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.

2 Overview of Results by Segment

https://www.kke.co.jp/	Copyright© KOZOKEIKAKU ENGINEERING Inc. All Rights Reserved.