Taikisha : Financial Report for Fiscal Year ended March 31, 2023

Financial Report for the Fiscal Year ended March 31, 2023

May 15, 2023

The following statements are an English translation of the original Japanese document.

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)

Name of company… Taikisha Ltd.

Stock Exchange…… Tokyo Stock Exchange

Code……………… 1979

Representative…… Masashi Osada, President and Representative Director

Contact…………… Yasushi Nakajima, Representative Director, Executive Corporate Officer, Administrative

Management Headquarters Chief Executive

TEL……………… (03) 5338 - 5051

URL……………… https://www.taikisha.co.jp/

Scheduled date for annual general meeting of shareholders

：

June 29, 2023

Scheduled date to commence dividends payments

：

June 30, 2023

Scheduled date to submit securities report

：

June 29, 2023

Supplemental materials prepared for financial results

：

Yes

Briefing session of financial results

：

Yes

(for institutional investors and analysts)

1. Consolidated Operating Performance (April 1, 2022 through March 31, 2023)

(Round down to one million yen)

(1) Consolidated operating results

(% indicates increase ratio over previous year)

Sales

Operating income

Ordinary income

Profit attributable

to owners of parent

Year ended

million yen

%

million yen

%

million yen

%

million yen

%

March 31, 2023

214,793

2.6

11,556

22.6

13,001

20.2

7,917

9.2

March 31, 2022

209,261

3.3

9,428

(19.3)

10,818

(12.0)

7,248

(12.5)

(Note) Comprehensive income	Year ended March 31, 2023	9,607 million yen		21.9 %
		Year ended March 31, 2022	7,878 million yen	(53.0) %
	Basic earnings per	Diluted earnings per	Ratio of Profit to	Ratio of Ordinary		Ratio of Operating
	Income to Total
	share		share	Shareholders' Equity		Income to Net Sales
		Assets
Year ended		yen	yen	%		%		%
March 31, 2023		234.62	－	6.3		5.6		5.4
March 31, 2022		212.69	－	5.9		4.7		4.5

(Note) Equity in earnings of affiliates

Year ended March 31, 2023

(3) million yen

Year ended March 31, 2022

(32) million yen

(2)

Consolidated financial position

Total assets

Net assets

Equity capital ratio

Net assets per share

As of

million yen

million yen

%

yen

March 31, 2023

237,105

131,992

53.1

3,788.75

March 31, 2022

228,159

130,788

54.7

3,658.54

(Note) Shareholders' Equity

As of March 31, 2023

125,791 million yen

As of March 31, 2022

124,695 million yen

(3)

Consolidated cash flows

Cash Flows from

Cash Flows from

Cash Flows from

Cash and cash equivalents

Operating Activities

Investing Activities

Financing Activities

at the end of period

Year ended

million yen

million yen

million yen

million yen

March 31, 2023

4,806

(1,748)

(9,822)

43,946

March 31, 2022

(8,544)

(1,071)

6,000

48,791

2. Dividends

Dividends per share

Dividends

Ratio of

Dividends Paid

Dividends to

Total

Payout Ratio

1Q

2Q

3Q

Year End

(Total)

Net Assets

(annually)

(Consolidated)

(Consolidated)

Year ended

yen

yen

yen

yen

yen

million yen

%

%

March 31, 2022

－

30.00

－

70.00

100.00

3,420

47.0

2.8

March 31, 2023

－

50.00

－

71.00

121.00

4,065

51.6

3.2

Year ending March 31,

2024 (Forecast)

－

50.00

－

77.00

127.00

45.3

(Note)

Dividends Paid (Total) for the fiscal year ended March 31, 2022 and March 31, 2023 includes dividends of 12 million yen

and of 14 million yen for treasury shares owned by trust assets of "Board Benefit Trust (BBT)" respectively.

―1―

3. Consolidated Earnings Forecast for Fiscal Year Ending March 31, 2024 (April 1, 2023 through March 31, 2024)

(% indicates increase ratio over previous year)

	Sales		Operating income	Ordinary income	Profit attributable	Basic earnings per
		to owners of parent	share
	million yen	%	million yen	%	million yen	%	million yen	%	yen
Half year	127,100	48.2	5,700	48.1	6,300	35.3	4,600	88.2	138.55
Full year	255,000	18.7	13,100	13.4	14,000	7.7	9,300	17.5	280.11

4. Others

1. Changes in significant subsidiaries during the period

(Changes in specified subsidiaries accompanying changes in scope of consolidation)	: None
(2) Changes in accounting policies, changes in accounting estimates and restatements
(i)	Changes in accounting policies due to revisions of accounting standards etc.	: Yes
(ii)	Changes in accounting policies other than (i)	: None
(iii)	Changes in accounting estimates	: None
(iv)	Restatements	: None

1. Number of shares issued (common shares)
2. 1. Number of shares issued at end of period (including treasury shares)

As of March 31, 2023	33,582,009	shares
As of March 31, 2022	35,082,009	shares

1. Number of treasury shares at end of period

As of March 31, 2023	380,689	shares
As of March 31, 2022	998,559	shares

1. Average number of shares during the period

Year ended March 31, 2023	33,744,600	shares
Year ended March 31, 2022	34,078,868	shares

(Note) The Company has introduced the "Board Benefit Trust (BBT)" as its performance-linked and share-based compensation plan and its own shares remaining in the Trust are included as treasury shares. The number of treasury shares owned by the Trust as of March 31, 2023 and as of March 31, 2022 are 120,700 and 120,700, respectively. The average number of treasury shares owned by the Trust for the year ended March 31, 2023 and for the year ended March 31, 2022 are 120,700 and 125,531, respectively.

(Reference) Summary of Non-Consolidated Operating Performance

1. Non-Consolidated Operating Performance (April 1, 2022 through March 31, 2023)

(1) Non-Consolidated operating result				(% indicates increase ratio over previous year)
		Sales			Operating income	Ordinary income	Profit
Year ended		million yen	%	million yen	%	million yen	%	million yen	%
March 31, 2023		133,342	24.1	7,185	20.0	10,623	(6.2)	8,546	11.6
March 31, 2022		107,435	(1.1)	5,989	(8.3)	11,323	5.9	7,657	13.1
	Basic earnings per		Diluted earnings per
		share			share
Year ended		yen			yen
March 31, 2023		253.26			－
March 31, 2022		224.68			－
(2) Non-Consolidated financial position
		Total assets			Net assets	Equity capital ratio	Net assets per share
As of		million yen		million yen		%		yen
March 31, 2023		166,751		103,151		61.9		3,106.84
March 31, 2022		148,593		103,110		69.4		3,025.25
(Note) Shareholders' Equity	As of March 31, 2023		103,151 million yen
		As of March 31, 2022		103,110 million yen

―2―

2. Non-Consolidated Earnings Forecast for Fiscal Year Ending March 31, 2024 (April 1, 2023 through March 31, 2024)

(% indicates increase ratio over previous year)

	Sales		Ordinary income	Profit		Basic earnings per
			share
	million yen	%	million yen	%	million yen	%	yen
Half year	78,000	45.9	6,000	23.8	5,000	9.5	150.60
Full year	137,500	3.1	9,400	(11.5)	8,000	(6.4)	240.95

• This financial report is not subject to audit procedures.
• Explanation about the proper use of consolidated forecasts and other notes
  The data and forward-looking statements disclosed herein are based on current information as of today, and may change depending upon various factors. The data and assumptions do not mean guaranteeing accomplishment of goals and projections, and may be changed at any time without notice. Consequently, the Company ask you to use this information at your discretion based upon your own judgment and information you may obtain through other sources. The company will not be liable for any damages that result from the use of this information.

―3―

1 Consolidated Financial Statements

(1) Consolidated Balance Sheets

			Millions of yen
		As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	49,085	46,988
Notes receivable, accounts receivable from completed construction	104,956	124,236
contracts and other
Securities	3,000	－
Costs on uncompleted construction contracts	1,775	2,346
Raw materials and supplies	1,007	843
Other	9,084	10,721
Allowance for doubtful accounts	(718)	(668)
Total current assets	168,190	184,467
Non-current assets
Property, plant and equipment
Buildings and structures	8,389	8,043
Machinery, vehicles, tools, furniture and fixtures	13,756	7,852
Land	1,737	1,705
Other	639	1,163
Accumulated depreciation	(13,279)	(10,207)
Total property, plant and equipment	11,243	8,557
Intangible assets
Goodwill	3,966	3,640
Customer-related assets	1,334	1,184
Other	2,081	1,104
Total intangible assets	7,381	5,929
Investments and other assets
Investment securities	29,605	26,487
Deferred tax assets	520	582
Net defined benefit asset	8,909	8,595
Other	2,710	2,993
Allowance for doubtful accounts	(401)	(507)
Total investments and other assets	41,344	38,152
Total non-current assets	59,969	52,638
Total assets	228,159	237,105

―4―

			Millions of yen
		As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other	47,102	55,472
Short-term loans payable	15,535	2,942
Income taxes payable	1,672	1,772
Advances received on uncompleted construction contracts	6,901	23,306
Provision for warranties for completed construction	714	614
Provision for loss on construction contracts	392	300
Provision for directors' bonuses	43	71
Other	9,524	11,460
Total current liabilities	81,886	95,940
Non-current liabilities
Long-term loans payable	5,605	98
Deferred tax liabilities	7,877	7,034
Provision for directors' retirement benefits	44	56
Provision for share-based remuneration for directors	145	212
Net defined benefit liability	1,462	1,343
Other	349	427
Total non-current liabilities	15,484	9,172
Total liabilities	97,371	105,112
Net assets
Shareholders' equity
Capital stock	6,455	6,455
Capital surplus	5,058	3,540
Retained earnings	99,893	100,296
Treasury shares	(2,544)	(1,158)
Total shareholders' equity	108,862	109,133
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	11,908	10,535
Deferred gains or losses on hedges	(25)	(63)
Foreign currency translation adjustment	2,017	4,779
Accumulated remeasurements of defined benefit plans	1,932	1,405
Total accumulated other comprehensive income	15,833	16,657
Non-controlling interests	6,092	6,201
Total net assets	130,788	131,992
Total liabilities and net assets	228,159	237,105

―5―